On February 1, 2025, India's Finance Minister presented the Union Budget for the fiscal year 2025-2026. Themed "Sabka Vikas" (Inclusive Growth), it focuses on economic growth, tax relief, and investments in key sectors like agriculture, MSMEs, innovation, and infrastructure.

Taxation Reforms, Agricultural Initiatives, Investment in Innovation & Research and Infrastructure & Connectivity

Key Highlights of the Union Budget 2025-2026

1. Taxation Reforms

·        Personal Income Tax Relief: Exemption threshold raised from ?7 lakh to ?12 lakh under the new tax regime.

·        Revised Income Tax Slabs:

Ø 0 - 4 lakh: Nil

Ø 4 - 8 lakh: 5%

Ø 8 - 12 lakh: 10%

Ø 12 - 16 lakh: 15%

Ø 16 - 20 lakh: 20%

Ø 20 - 24 lakh: 25%

Ø Above 24 lakh: 30%

·        TDS and TCS Rationalization:

Ø TDS limit on senior citizens' interest doubled to ?1 lakh.

Ø TDS on rent increased to ?6 lakh.

2. Agricultural Initiatives

·        Prime Minister Dhan-Dhaanya Krishi Yojana: Covers 100 agri-districts to enhance productivity, diversify crops, and improve irrigation and credit access.

·        Mission for Aatmanirbharta in Pulses: Six-year plan focusing on self-sufficiency in Tur, Urad, and Masoor.

·        Kisan Credit Card (KCC): Loan limit increased from ?3 lakh to ?5 lakh for 7.7 crore farmers, fishermen, and dairy farmers.

·        Makhana Board in Bihar: Established to support production, processing, and marketing.

3. Investment in Innovation & Research

·        20,000 crore allocated for private sector-driven R&D.

·        PM Research Fellowship: 10,000 fellowships for research in IITs and IISc.

·        Deep Tech Fund of Funds: To boost startups in emerging technologies.

·        National Geospatial Mission: To modernize land records and urban planning.

4. Infrastructure & Connectivity

·        Urban Challenge Fund: ?1 lakh crore for city development projects.

·        UDAN Scheme: Regional connectivity expansion to 120 new destinations.

·        Maritime Development Fund: ?25,000 crore for long-term financing in the shipping industry.

Nuclear Energy Mission, Support for MSMEs, Startups & Gig Economy, Export Promotion & Manufacturing and Fiscal Management

5. Nuclear Energy Mission

·        Viksit Bharat Initiative: ?20,000 crore for Small Modular Reactors (SMRs)  by 2033.

·        Amendments to the Atomic Energy Act to encourage private-sector participation.

6. Support for MSMEs, Startups & Gig Economy

·        Credit guarantee cover increased:

Ø Micro & Small Enterprises: ?5 crore ? ?10 crore.

Ø Startups: ?10 crore ? ?20 crore.

·        Customized Credit Cards: ?5 lakh limit for micro enterprises on Udyam Portal.

·        Gig Worker Formalization: Identity cards, e-Shram portal registration, and health benefits under PM Jan Arogya Yojana.

7. Export Promotion & Manufacturing

·        BharatTradeNet (BTN): A unified digital public infrastructure for international trade.

·        Tax Exemptions:

Ø Lithium-ion batteries & TV components to boost electronics manufacturing.

Ø 10-year tax exemption for shipbuilding industry.

·        National Manufacturing Mission: Support for solar PV cells, EV batteries, motors, electrolyzers, and wind turbines.

8. Fiscal Management

·        Fiscal Deficit Target: Reduced to 4.4% of GDP from 4.8%.

·        Revised Estimates 2024-25: Total receipts ?31.47 lakh crore; total expenditure ?47.16 lakh crore.

·        Budget Estimates 2025-26: Total receipts ?34.96 lakh crore; total expenditure ?50.65 lakh crore.

The Union Budget 2025-2026 underscores the government's commitment to inclusive growth, economic stability, and sectoral investments for a prosperous future.