Introduction
The Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, presented the Union Budget 2025 in Parliament, unveiling a roadmap for economic growth, fiscal prudence, and social welfare. With a strong emphasis on agriculture, MSMEs, investment, and exports, the Union Budget 2025 outlines key reforms and initiatives designed to propel India’s economy forward.
Union Budget 2025: Budget Estimates
- Total receipts (excluding borrowings): ₹34.96 lakh crore
- Total expenditure: ₹50.65 lakh crore
- Net tax receipts: ₹28.37 lakh crore
- Fiscal deficit: 4.4% of GDP
- Gross market borrowings: ₹14.82 lakh crore
- Capital expenditure: ₹11.21 lakh crore (3.1% of GDP)
Union Budget 2025: Agriculture as the First Engine of Development
Prime Minister Dhan-Dhaanya Krishi Yojana
- A new programme covering 100 districts with low productivity and below-average credit parameters.
- Expected to benefit 1.7 crore farmers through improved crop intensity and financial inclusion.
- Encourages sustainable agricultural practices and technological advancements to increase yield.
Aatmanirbharta in Pulses
- A six-year Mission for Aatmanirbhar Bharat in Pulses focusing on Tur, Urad, and Masoor.
- NAFED and NCCF to procure pulses from farmers over the next four years.
- Expansion of storage and warehousing facilities to stabilize market prices.
National Mission on High Yielding Seeds
- Strengthening research and targeted development of high-yield seed varieties.
- Commercial availability of over 100 improved seed varieties.
- Collaborative efforts with agricultural universities for enhanced seed production.
Enhanced Credit through KCC
- The loan limit under the Modified Interest Subvention Scheme increased from ₹3 lakh to ₹5 lakh.
- New measures to digitize and streamline loan application processes.
Union Budget 2025: MSMEs as the Second Engine of Development
Revision in MSME Classification
- Investment and turnover limits for MSMEs increased to 2.5 times and 2 times, respectively.
- Expansion of financial assistance and easier credit access for MSMEs.
Credit Cards for Micro Enterprises
- Customized credit cards with a ₹5 lakh limit for micro enterprises.
- 10 lakh cards to be issued in the first year.
- Simplified registration process on the Udyam portal.
Fund of Funds for Startups
- A fresh contribution of ₹10,000 crore to expand the scope of startup funding.
- Focus on deep-tech, AI, and sustainable innovations.
- Streamlined regulatory framework for startup-friendly policies.
First-time Entrepreneurs’ Scheme
- Financial assistance for 5 lakh women and SC/ST entrepreneurs.
- Term loans up to ₹2 crore to be provided in the next five years.
- Special mentorship programs for first-time business owners.
Union Budget 2025: Investment as the Third Engine of Development
Investing in People
- Atal Tinkering Labs: 50,000 labs to be set up in government schools over the next five years.
- Medical Education Expansion: 10,000 additional seats to be added in medical colleges and hospitals next year.
- Day Care Cancer Centres: 200 district-level centers to be operational in FY 2025-26.
- Bharatiya Bhasha Pustak Scheme: Digital-form Indian language books for schools and higher education institutions.
Infrastructure Boost in Union Budget 2025
- Public-Private Partnership: Ministries to develop a three-year pipeline for PPP projects.
- Urban Challenge Fund: ₹1 lakh crore announced for urban redevelopment and sanitation.
- Jal Jeevan Mission: Extended until 2028 with enhanced outlay.
- Nuclear Energy Mission: ₹20,000 crore allocated for small modular reactors.
- Greenfield Airports: Major infrastructure push with new airports in key regions.
Support for Exports and Trade in Union Budget 2025
- Export Promotion Mission: Sectoral targets driven by the Ministries of Commerce, MSME, and Finance.
- BharatTradeNet: A unified platform for international trade documentation and financing solutions.
- Maritime Development Fund: ₹25,000 crore fund for the shipbuilding sector.
- Trade Ease Initiatives: Simplified customs and trade documentation processes.
Union Budget 2025: Tax Reforms
Direct Taxation in Union Budget 2025
- No personal income tax for income up to ₹12 lakh (₹12.75 lakh for salaried individuals).
- Revised tax slabs with significant reductions for middle-class taxpayers.
- Standard deduction increased to ₹75,000.
- Higher TDS thresholds for senior citizens and rent payments.
- Simplified tax compliance for small businesses.
Indirect Taxation in Union Budget 2025
- Seven tariff rates removed for industrial goods, reducing complexity.
- Custom duty exemptions for 36 life-saving drugs and essential minerals.
- Support for domestic manufacturing in textiles, electronics, and lithium-ion batteries.
- Reduced customs duties on exports in the leather and marine product sectors.
- Enhanced import duty on non-essential luxury items.
Conclusion: Union Budget 2025 and India’s Future
The Union Budget 2025 focuses on economic resilience, fostering growth in key sectors, and improving social infrastructure. With targeted schemes in agriculture, MSMEs, healthcare, education, and infrastructure, the budget aims to bolster India’s global competitiveness while ensuring inclusive development. The government’s vision aligns with the ambition of making India a $5 trillion economy, and this budget plays a crucial role in that journey.
