The Union Finance Minister, Nirmala Sitharaman, commenced the budget speech on 1 February 2025 by stating that this budget continues the government's efforts to accelerate growth, secure inclusive development, promote private investment, uplift household sentiments, and improve the spending power of India's rising middle class. Gareeb, Youth, Annadata and Nari are some words that have been featured in India's 2025 Union Budget.
How does Viksit Bharat define in India's 2025 Union Budget?
The finance minister said that Viksit Bharat encompasses zero poverty, access to affordable, high-quality and comprehensive Healthcare, 100% quality and good school education, 70% women in the economic activities, 100% skilled labour with meaningful employment, along with the farmers making India the food basket of the world.
To realise the goal of Viksit Bharat, the budget has concentrated on transformative reforms on 6 domains that include taxation, power sector, Urban Development, financial sector, mining and regulatory reforms.
Sector-wise Highlights of India's Union Budget
Agriculture growth
Prime Minister Dhan-Dhaanya Krishi Yojana: The initiative to develop the agri-districts program. It will cover around 100 districts and is likely to help 1.7 crore farmers. Source
Mission for cotton productivity: A 5-year mission to facilitate improvements in productivity and sustainability of cotton farming.
Makhana board in Bihar: To be set up to improve production, value addition, marketing, processing and organisation of FPOs (Farmer Producer Organisation). Source
National mission on high-yielding seeds: Targeted development and propagation of seeds with high yield, climate resilience and pest resistance.
Credit card through KCC (Kishan Credit Card): Facilitates short-term loans for 7.7 crore farmers, dairy farmers and fishermen with an enhanced loan of 5 lakh.
Aatmnirbharta in pulses: The government will launch a six-year mission with special focus on mashoor (red lentils), tur (pigeon pea) and urad dal (black gram), emphasising the development and commercial availability of climate-resilient seeds. This initiative will also focus on enhancing protein content, increasing productivity and improving post-harvest storage and management, along with assuring remunerative prices to the farmers.
MSMEs and Startups
Scheme for first-time entrepreneurs: A New scheme to be launched for 5 lakh first-time entrepreneurs, including women, scheduled caste and scheduled tribes, to provide term loans up to 2 crore during the next 5 years.
Labour-intensive sectors:
Footwear and leather sectors: The focus will be given to the footwear and leather sectors through a scheme which is expected to facilitate employment for 22 lakh persons, generate turnover of 4 lakh crore and export of over 1.1 lakh crore. Source
Toy sector: The measures will be taken for the toy sector to focus on the development of skills, clusters and a manufacturing ecosystem that will create unique, high-quality, innovative, and sustainable toys to represent the Made in India brand. Source
Support for food processing: Establishment of a National Institute of Food Technology in Bihar to enhance income for the farmers and skilling, entrepreneurship and employment opportunities for the youth.
Education and healthcare
The Finance Minister’s budget 2025 speech has talked about a significant increase in funding for healthcare and education. It will focus on expanding 10,000 medical seats and creating 200 Daycare cancer centres. The implementation of 50,000 ATLs (Atal Tinkering Labs) along with the establishment of an Artificial Intelligence Centre of Excellence in Education has been taken into consideration. Source
Personal income tax reforms in India’s 2025 Union budget
Budget 2025 tax changes in India brought some significant amendments to the existing tax regime for the financial year of 2025-26 that will affect both the exemption limits and tax slabs.
Income slab/range
| Income Slab/Range | Existing Tax Regime (FY 2024-25) | Union Budget 2025 Tax Reform (FY 2025-26) |
|---|---|---|
| Up to 3 lakh | Nil | Nil |
| 3 lakh to 4 lakh | 5% | Nil |
| 4 lakh to 7 lakh | 5% | 5% |
| 7 lakh to 10 lakh | 10% | 10% |
| 10 lakh to 12 lakh | 15% | 15% |
| 12 lakh to 15 lakh | 20% | 15% |
| 15 lakh to 16 lakh | 30% | 15% |
| 16 lakh to 20 lakh | 30% | 20% |
| 20 lakh to 24 lakh | 30% | 25% |
| Above 24 lakh | 30% | 30% |
Indirect tax proposal in India’s 2025 Union Budget
Removal of tariff rates, application of not more than one surcharge or cess and implementation of equivalent cess to maintain effective duty incidence on most items and lower cess on certain items.
Some sector specific proposals have taken place in the Finance Minister's Budget 2025 speech that are following.
Make in India: Exemption to increase sale for LCD/LED TV, looms for textiles, capital goods for lithium ion battery of mobile phones and EVs.
Promotion of MRO: exemption has been given for 10 years and good for ship building and ships for breaking, extension of time with for export of railway good imported for repairs.
Export promotion: duty free inputs for handicrafts and leather sectors.
Trade facilitation: Time limit fixed for finalization of provisional assessment, new provision for voluntary declaration of material facts post clearance and duty payment with interest but without penalty.
Investment in innovation
Support to States for infrastructure
With an outlay of 1.5 lakh crore, 50 years of interest-free loans to the states for capital expenditures and incentives for reforms.
Jal Jeevan Mission
To achieve 100% coverage, the Jal Jeevan Mission is extended till 2028 with an enhanced total outlay.
Power sector reforms
Incentivise distribution reforms and augmentation of inter-state transmission. Additional borrowing of 0.5% of GSDP to states will be given and contingent on these reforms.
Asset monetisation plan 2025 to 30
This plan is going to be launched to plough back capital of 10 lakh crore in a new project.
Urban Challenge Fund
1 lakh crore has been invested to implement the proposal for “Cities as Growth Hub”, “Creative Redevelopments of Cities” and “Water & Sanitation”.
Maritime development fund
With a corpus of 25000 crore for long-term financing up to 49% contribution by the government has been considered.
Nuclear energy mission for Viksit Bharat
Amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be taken of for active partnership with the private sector.
UDAN
Regional connectivity will be extended to 120 new destinations and carry 4 crore passengers in the next 10 years.
Future needs of Bihar
Greenfield Airport, financial support for the Western Koshi Canal ERM projects.
SWAMIH Fund-2
15000 crore for expeditious completion of 1 lakh dwelling units through blended finance.
Research and development
PM research fellowship
This initiative will provide 10000 fellowships for technology research in IITs and IISc.
Gene bank for crops Germplasm
The 2nd Gene Bank with 10 lakh germplasm lines is to be set up for future food and nutritional security.
Gyan Bharatam Mission
Conservation and documentation of the Indian manuscript heritage to cover more than 1 crore manuscripts. A national digital repository of the Indian knowledge system for knowledge sharing is to be set up in accordance with this initiative.
National Geospatial Mission
Development of Foundational Geospatial infrastructure and data will commence in this regard. Using the PM Gati Shakti, facilitation of modernisation of land records, urban planning and design of infrastructure projects will be the consideration in this context.
Financial Sector Reforms and Development in India’s 2025 Union Budget
“Grameen Credit Score” framework to be set up to serve the credit needs of SHG members and people in rural areas.
NaBFID formation to set up a partial credit enhancement facility for corporate bonds improve infrastructure.
Revamped the Central KYC registry to be ruled out in 2025.
FDI limit for the insurance sector will be raised from 74% to 100%.
Rationalisation of requirements and procedures for the speedy approval of company mergers.
Disclaimer: This article is for informational purposes only.
Author: Team RA News