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The Union Budget 2025-26 presented by the Finance Minister Smt. Nirmala Sitharaman on February 1, 2025, specifically centers around economic growth, social welfare, and structural reforms. The four key engines—Agriculture, MSMEs, Investment, and Exports—provide a great base for building India’s future.
BUDGET ESTIMATES 2025-26
| Parameter | Amount |
|---|---|
| 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) |
KEY GROWTH DRIVERS
1. Agriculture – Strengthening the Backbone
- Prime Minister Dhan-Dhaanya Krishi Yojana: 100 agri-districts to benefit 1.7 crore farmers.
- Mission for Aatmanirbharta in Pulses: 6-year initiative to boost production of Tur, Urad, and Masoor.
- Cotton Productivity Mission: 5-year plan for extra-long staple cotton.
- Enhanced Credit through KCC: Loan limit increased from ₹3 lakh to ₹5 lakh.
- Urea Plant in Assam: 12.7 lakh metric tons annual capacity plant in Namrup.
2. MSMEs – Boosting Small Businesses
- Enhanced MSME Classification: Investment & turnover limits raised by 2.5x and 2x.
- Credit Support: ₹5 lakh limit for Udyam-registered micro enterprises.
- Fund of Funds for Startups: ₹10,000 crore to support entrepreneurship.
- First-time Entrepreneur Scheme: Loans up to ₹2 crore for 5 lakh women, SC, and ST entrepreneurs.
- Toy Sector Development: Promoting India as a global toy manufacturing hub.
3. Investment – Fueling Development
(ⅰ) Investing in People
- Saksham Anganwadi & Poshan 2.0: Strengthened child nutrition programs.
- Medical & AI Education: 10,000 additional medical seats, ₹500 crore for AI education.
- Broadband Connectivity: Extended to all rural schools and PHCs.
(ⅱ) Investing in Infrastructure & Economy
- PPP in Infrastructure: 3-year pipeline for projects.
- ₹1.5 lakh crore interest-free loans for state infra projects.
- ₹1 lakh crore Urban Challenge Fund for smart cities.
- Jal Jeevan Mission extended to 2028.
(ⅲ) Investing in Innovation
- ₹20,000 crore for private R&D and startups.
- 10,000 PM Research Fellowships for cutting-edge technology.
- Second National Gene Bank for crop preservation.
4. Exports – Strengthening Global Trade
- Export Promotion Mission for better inter-ministerial coordination.
- BharatTradeNet: A unified digital trade platform.
- Developing Tier-2 cities as global capability centers.
FINANCIAL SECTOR REFORMS
- FDI in Insurance: Increased to 100% for reinvesting companies.
- Grameen Credit Score framework for rural borrowers.
- Jan Vishwas Bill 2.0: Decriminalization of 100+ regulatory provisions.
TAX REFORMS – RELIEF FOR INDIVIDUALS & BUSINESSES
Direct Tax Reforms
- Income Tax Exemption: Increased to ₹12 lakh under the new regime.
- New Tax Slabs:
Income Range Tax Rate ₹0-4 lakh Nil ₹4-8 lakh 5% ₹8-12 lakh 10% ₹12-16 lakh 15% ₹16-20 lakh 20% ₹20-24 lakh 25% Above ₹24 lakh 30% - Senior Citizen Interest Exemption: Raised from ₹50,000 to ₹1 lakh.
Indirect Tax Reforms
- Customs Duty Rationalization: Seven tariff rates reduced.
- Import Relief on Medicines:
- 36 lifesaving drugs fully exempted.
- 6 critical medicines at 5% duty.
- 37 new drugs included under Patient Assistance Programs.
- Support for Domestic Manufacturing: Duty reductions on critical minerals and electronics components.
CONCLUSION
The Union Budget 2025-26 strikes a balance between growth, welfare, and fiscal discipline. With a strong push for infrastructure, MSMEs, agriculture, and innovation, this budget lays the roadmap for Viksit Bharat—a self-reliant and globally competitive India.