HIGHLIGHTS OF THE UNION BUDGET 2025-26

Share

The Union Budget 2025-26 was presented by Finance Minister Nirmala Sitharaman on February 1, 2025. This budget focuses on boosting economic growth, supporting agriculture, encouraging investments and improving the lives of the middle class. With the theme Sabka Vikas, the budget aims for inclusive development and strengthening India’s journey towards becoming a developed nation (Viksit Bharat).

In line with this theme, the Finance Minister outlined the broad Principles of Viksit Bharat to encompass the following:

a) Zero-poverty;

 b) Hundred per cent good quality school education; 

c) Access to high-quality, affordable, and comprehensive healthcare; 

d) Hundred per cent skilled labour with meaningful employment; 

e) Seventy per cent women in economic activities; and 

f) Farmers making our country the ‘food basket of the world’.

The Budget proposes development measures focusing on poor (Garib), Youth, farmer (Annadata) and women (Nari).

Major Highlights of the Budget

1. Relief for Middle-Class Taxpayers

  • No income tax for individuals earning up to â‚¹12.75 lakh per annum under the new tax regime.
  • People earning up to â‚¹1 lakh per month will pay zero tax boosting household savings and consumption.
  • The time limit for filing updated income tax returns has been increased from 2 years to 4 years.
  • Tax Deducted at Source (TDS) on rent has been increased from â‚¹2.4 lakh to ₹6 lakh reducing compliance burden.
  • Delay in Tax Collected at Source (TCS) payments has been decriminalized.

2. Strengthening the Four Engines of Growth

The budget identifies Agriculture, MSMEs, Investment and Exports as the four key areas driving India’s economic growth.

A. Agriculture Sector Reforms

  • Prime Minister Dhan-Dhaanya Krishi Yojana: Covers 100 low agricultural productivity districts to enhance productivity, irrigation, storage and crop diversification.
  • Mission for Aatmanirbharta in Pulses: Special focus on Tur, Urad and Masoor dal to reduce imports and ensure self-sufficiency.
  • Kisan Credit Card (KCC) loans limit increased from â‚¹3 lakh to ₹5 lakh under a modified interest subvention scheme.
  • National Mission on High Yielding Seeds: Strengthening research and availability of improved seed varieties.
  • Comprehensive Programme for Fruits & Vegetables: Encourages processing, efficient supply chains and better prices for farmers.

B. Boost for MSMEs (Micro, Small & Medium Enterprises)

  • Enhanced credit guarantee cover for MSMEs from â‚¹5 crore to ₹10 crore improving access to finance.
  • Investment and turnover limits for MSMEs increased to help them scale up operations.
  • New Entrepreneurship Scheme₹2 crore term loans for 5 lakh women, SC and ST entrepreneurs over 5 years.
  • National Manufacturing Mission: Covers small, medium and large industries to push the ‘Make in India’ vision.
  • Support for Toy Industry: A new scheme will position India as a global hub for toy manufacturing.

C. Investment in Infrastructure and Innovation

  • ₹1 lakh crore Urban Challenge Fund to develop cities as growth hubs.
  • 50,000 Atal Tinkering Labs in government schools over the next 5 years.
  • Centre of Excellence in Artificial Intelligence (AI) for education with â‚¹500 crore allocation.
  • ₹20,000 crore for private sector-driven R&D and innovation initiatives.
  • Expansion of BharatNet Project to provide broadband connectivity to all government schools and primary health centers in rural areas.
  • Jal Jeevan Mission extended till 2028 with a focus on improving infrastructure and maintenance of rural piped water supply.

D. Boosting Exports and Trade

  • Export Promotion Mission to help MSMEs tap into international markets.
  • BharatTradeNet (BTN): A digital infrastructure for seamless trade documentation and financing solutions.
  • Support for domestic electronics manufacturing to align with Industry 4.0.
  • Infrastructure development for air cargo to boost exports of high value perishable agricultural products.

3. Major Tax and Financial Sector Reforms

  • Foreign Direct Investment limit in insurance raised from 74% to 100% to attract global players.
  • Jan Vishwas Bill 2.0 to decriminalize over 100 outdated laws, promoting ease of doing business.
  • Investment Friendliness Index of States to encourage competitive federalism.
  • Second Asset Monetization Plan (2025-30) to unlock â‚¹10 lakh crore in capital for new infrastructure projects.

4. Energy and Transport Developments

  • Nuclear Energy Mission: ₹20,000 crore allocated for Small Modular Reactors (SMRs).
  • Modified UDAN Scheme: Regional connectivity to 120 new destinations.
  • Boost for Electric Vehicles (EVs): Tax exemptions on capital goods for battery manufacturing.
  • Shipbuilding Industry SupportBasic Customs Duty (BCD) exemptions for 10 years.

5. Healthcare and Social Welfare

  • Identity cards for gig workers along with registration on the e-Shram portal.
  • PM Jan Arogya Yojana (PMJAY) extended to gig workers for better healthcare access.
  • Reduction in import duty on 36 life-saving medicines and cancer drugs.
  • ₹15,000 crore SWAMIH Fund for completing 1 lakh stressed housing units.

6. Key Taxation Reforms

Annual IncomeTax Rate
₹0 – ₹4 LakhNIL
₹4 – ₹8 Lakh5%
₹8 – ₹12 Lakh10%
₹12 – ₹16 Lakh15%
₹16 – ₹20 Lakh20%
₹20 – ₹24 Lakh25%
Above ₹24 Lakh30%

7. Simplified Customs and Import Policies

  • Import duty removed on 25 critical minerals to support Make in India.
  • Higher BCD (20%) on imported Interactive Flat Panel Displays (IFPD) to encourage domestic production.
  • BCD on fish hydrolysate reduced from 15% to 5% benefiting the fisheries sector.

8. Digital and Knowledge Economy Boost

  • Gyan Bharatam Mission to survey and preserve over 1 crore manuscripts.
  • A National Digital Repository of Indian Knowledge Systems for documentation and research.

Conclusion

The Union Budget 2025-26 is a well-balanced plan that prioritizes economic growth, tax relief, infrastructure development and job creation. With bold steps in agriculture, MSMEs, investments, exports and innovation, the government aims to make India a global economic powerhouse. The budget also ensures middle-class empowerment, rural upliftment and technological progress setting a solid foundation for India’s Viksit Bharat mission.

Leave a Reply

Your email address will not be published. Required fields are marked *

Share

Download UPSC Sample Evaluated Copy



    This will close in 0 seconds

    Download UPSC Comprehensive Syllabus



      This will close in 0 seconds

      Download UPSC Admission Brochure



        This will close in 0 seconds

        Download Sample Prelims Test Series WBCS 2024



          This will close in 0 seconds

          Download UPSC Sample Daily Test



            This will close in 0 seconds

            OPSC form 1



              This will close in 0 seconds

              OPSC Daily Test Sample



                This will close in 0 seconds

                OPSC Comprehensive Syllabus



                  This will close in 0 seconds

                  Download WBCS Daily Mains Writing Sample



                    This will close in 0 seconds

                    Download WBCS Study Plan 2024



                      This will close in 0 seconds

                      Download WBCS Admission Brochure



                        This will close in 0 seconds

                        WBCS Prelims Test Series Schedule



                          This will close in 0 seconds

                          Download OPSC Sample Evaluated Copy



                            This will close in 0 seconds