In today’s Budget 2025 presentation, Finance Minister Nirmala Sitharaman announced several development measures across six key areas, focusing on the poor, youth, farmers, and women.
Key Focus Areas
- Supporting MSMEs and promoting exports.
- Agricultural growth and rural prosperity.
- Manufacturing and financial inclusion.
- Inclusive growth and development.
- Special focus on the poor, youth, farmers, and women.
- Sector-specific plans.
Major Announcements on Taxation, Business Growth, Infrastructure, and Fiscal Policies
- Fiscal Deficit:
- Fiscal deficit for FY25 set at 4.8%, with an estimated fiscal deficit for FY26 at 4.4%.
- Income Tax Changes:
- No income tax payable for income up to ₹12.75 lakh under the new tax regime.
- Additional tax relief measures introduced.
To know the tax slabs for FY 2025-26, read: “NO INCOME TAX ON INCOME UP TO ₹12 LAKH PER ANNUM“
- Property Tax Benefits:
- Taxpayers can now claim the annual value of two self-occupied properties as nil.
- Jan Vishwas Bill 2.0:
- Aimed at decriminalizing over 100 provisions.
- Introduction of an investment-friendly index for states in 2025.
- Revised Tariff Rates:
- Proposal to remove 7 tariff rates, leaving only 8 tariff rates post-implementation.
- State Capex Loans:
- Outlay of ₹1.5 lakh crore for 50-year interest-free loans to states for capital expenditure and infrastructure.
- Lifesaving Medicines:
- 36 lifesaving drugs and medicines fully exempted from basic customs duty.
Sector-Specific Highlights
- Export Promotion:
- Establishment of an Export Promotion Mission to improve export credit, cross-border factoring support, and assist MSMEs in tackling non-tariff barriers.
- Domestic Manufacturing:
- Support for developing manufacturing capacities to integrate with global supply chains.
- Electronics Industry:
- Government support for leveraging Industry 4.0 opportunities to benefit youth.
- Global Capability Centres:
- National framework to promote Global Capability Centres in tier-2 cities.
- FDI in Insurance:
- Proposal to increase the FDI limit for the insurance sector to 100%.
- BharatTradeNet (BTN):
- A unified digital platform for trade documentation and financing solutions for international trade.
- Toy Manufacturing:
- Scheme to position India as a global hub for toys under the ‘Made in India’ brand.
- Footwear and Leather Sector:
- Focused product scheme expected to create employment for 22 lakh persons, achieve a turnover of ₹4 lakh crore, and facilitate exports worth ₹1.1 lakh crore.
Skilling and Education
- National Centres of Excellence:
- Five centres to be established for skilling youth for global opportunities.
- Global Skilling Partnerships:
- Partnerships aimed at making India a global manufacturing leader.
- Expansion of IIT Infrastructure:
- Additional capacity for 6,500 students across five IITs.
- Centre for AI in Education:
- A Centre of Excellence for AI in Education with an outlay of ₹500 crore.
- Medical College Seats:
- Addition of 10,000 seats in medical colleges.
Social Welfare Initiatives
- MSME Credit Enhancement:
- New scheme providing ₹5 lakh for women, Scheduled Castes, and Scheduled Tribes.
- Saksham Anganwadi and Poshan 2.0:
- Nutritional support for 8 crore children, 1 crore mothers, and 20 lakh adolescent girls, with a focus on lactating women.
Industrial and Technological Development
- Make in India Mission:
- Comprehensive manufacturing mission to support small, medium, and large industries.
- Emphasis on solar PV cells, electrolysers, and grid-scale batteries.
- Makhana Board:
- Establishment of a board in Bihar to support the state’s prominent Makhana (foxnut) industry.
- Deep Tech Fund:
- Creation of a fund to support next-generation technology startups, fostering innovation for technical and non-technical entrepreneurs.
These measures collectively aim to foster inclusive growth, enhance India’s industrial capabilities, and strengthen its position in the global economy.