The Union Budget 2025 was presented by Finance Minister Nirmala Sitharaman on February 1, 2025. This budget focuses on economic growth, tax reforms, agriculture, research and development, and social welfare. Here’s a detailed breakdown of the Union Budget Highlights 2025 that impact individuals, businesses, and key industries.
Income Tax Reforms: Relief for the Middle Class
One of the biggest takeaways from the Union Budget Highlights 2025 is the revision of income tax slabs. The government has increased the tax exemption limit from ₹8 lakh to ₹12 lakh under the new tax regime. This move is expected to provide relief to the salaried class and boost consumer spending.
Revised Tax Slabs:
- The new structure reduces the overall tax burden on individuals across various income brackets.
- The government aims to simplify the tax filing process and encourage more people to opt for the new tax regime.
Agriculture and Rural Development: Boosting Farmers’ Income
The Union Budget Highlights 2025 introduce multiple schemes to support farmers and rural development:
- PM Dhan-Dhaanya Krishi Yojana: Aimed at benefiting 1.7 crore farmers across 100 districts by increasing agricultural productivity and income.
- Kisan Credit Card (KCC) Expansion: Short-term loans up to ₹5 lakh will be provided to 7.7 crore farmers, fishermen, and dairy farmers.
- Pulses Production Mission: A six-year initiative to enhance self-reliance in pulses production, reducing dependency on imports.
Research, Development, and Innovation
The Union Budget 2025 prioritizes investment in technology, research, and innovation, with a significant allocation of ₹20,000 crore to encourage private sector-driven research. Key initiatives include:
- PM Research Fellowship: Introduction of 10,000 fellowships for research in premier institutions like IITs and IISc.
- Focus on artificial intelligence (AI), green energy, and semiconductor manufacturing.
Export Promotion and Trade Facilitation
The Union Budget Highlights 2025 include various incentives to promote exports and facilitate trade:
- Electronics and EV Sector Boost: Exemptions on key components for LED/LCD TVs, lithium-ion batteries, and electric vehicles.
- Shipbuilding and MRO Promotion: A 10-year tax exemption on shipbuilding and ship-breaking activities.
- Extended time limits for exporting repaired railway goods.
Subsidies and Social Welfare Measures
The government has allocated ₹4.57 trillion for food, fertilizer, and rural employment subsidies to support vulnerable populations. These subsidies ensure price stability and economic security for lower-income groups.
Corporate Sector Impact: Who Benefits the Most?
Companies in the consumer goods and automotive sectors are among the biggest beneficiaries of this budget. Increased consumer spending due to tax cuts is expected to boost demand for goods and services. Stock markets reacted positively to these announcements, with key indices showing upward trends.
Conclusion: A Growth-Oriented Budget for 2025
The Union Budget Highlights 2025 reflect the government’s commitment to fostering economic growth, supporting key sectors, and providing relief to the middle class. With tax cuts, increased spending on research and development, and a focus on self-reliance in agriculture, the budget is expected to drive India’s growth in the coming year.
For more detailed insights on the Union Budget Highlights 2025, stay tuned to our latest updates!
