India Finance

Union Budget 2025 Highlights: Key Announcements and Major Changes, Download PDF

The Budget 2025-26 introduces major reforms in infrastructure, taxation, employment, and social welfare. With a GDP growth target of 6.8%, it emphasizes digital transformation, renewable energy, and defense modernization. Increased tax exemptions for salaried employees and incentives for startups highlight the government’s pro-growth approach. Read on for a detailed breakdown of key allocations and policy shifts.

By Anthony Lane
Published on

Union Budget 2025 Highlights: The much-anticipated Budget 2025-26 has been unveiled, bringing with it significant policy shifts, economic measures, and financial allocations that will shape the country’s economic landscape. With a focus on economic growth, infrastructure development, tax reforms, and social welfare, the government has introduced several key changes to address emerging challenges and opportunities.

Union Budget 2025 Highlights
Union Budget 2025 Highlights

Union Budget 2025 Highlights

SectorAnnouncementDetails/Comments
Income TaxRevised tax structureNew tax slabs introduced with different rates based on income brackets.
Income TaxHigher TDS exemption on rentAnnual rent exemption for TDS raised from Rs 2.4 lakh to Rs 6 lakh.
Income TaxIncreased senior citizen deductionSenior citizens can now claim a tax deduction of up to Rs 1 lakh.
Income TaxTax relief for salaried employeesIndividuals earning up to Rs 12.75 lakh will not pay income tax.
Income TaxZero tax on income up to Rs 4 lakhNew tax regime allows income up to Rs 4 lakh to be tax-free.
Start-upsExtended start-up benefitsStart-ups will continue to enjoy benefits for five years post-launch.
Banking/InsuranceRural credit rating frameworkA credit score system will be introduced for rural borrowers.
Banking/InsuranceHigher FDI cap in insuranceForeign Direct Investment (FDI) in the insurance sector increased to 100%.
HousingHousing completion fundRs 15,000 crore allocated for completing one lakh pending housing units.
AgricultureSelf-sufficiency in oilseeds missionA six-year strategy launched to boost domestic oilseed production.
AgricultureCotton production enhancementA five-year program aimed at increasing cotton yields.
AgricultureHigher credit limit for farmersLoan limit for Kisan Credit Card raised from Rs 3 lakh to Rs 5 lakh.
EducationExpansion of Atal Tinkering LabsNew Atal Tinkering Labs to be established in schools.
EducationBroadband for government schoolsGovernment secondary schools to receive broadband internet access.
EducationIIT expansion projectsAdditional infrastructure investment for IITs; IIT Patna to be expanded.
HealthcareDistrict-level daycare cancer centres200 daycare cancer centres to be operational by 2026.
HealthcareDuty revisions on life-saving drugsFive percent duty imposed on six life-saving drugs; 36 drugs exempt from customs duty.
GrowthEnhanced MSME credit guaranteesMSME credit guarantee scheme expanded from Rs 5 crore to Rs 10 crore.
InfrastructurePPP model infrastructure projectsPublic-private partnership (PPP) model projects to be executed over three years.
InfrastructureInterest-free infrastructure loans for statesStates to receive Rs 1.5 lakh crore in interest-free loans for infrastructure upgrades.
InfrastructureExpansion of regional airportsOver 100 new regional airports planned for development in the next decade.
InfrastructureUDAN 2.0 for air connectivityUDAN 2.0 to connect 120 new airports, focusing on Northeast and Bihar.
Excise/Customs DutyExport credit support initiativeA new mission launched to facilitate easier access to export credit.
Excise/Customs DutyTariff rate rationalizationSeven tariff rates to be removed, reducing complexity to eight rates.
EconomyState competitiveness indexAn index to foster competition among states and encourage investment.
EconomyRevised fiscal deficit targetFiscal deficit target revised to 4.8% for FY 2025.
EconomyCapital investment boostCapital expenditure set at Rs 10.18 lakh crore to drive economic growth.
Women’s DevelopmentLoan scheme for women entrepreneursWomen entrepreneurs from SC/ST and backward classes eligible for loans up to Rs 2 crore.
Rural IndiaNutritional aid for mothers and childrenNutritional assistance for over eight crore children and one crore lactating mothers.
Make in IndiaNational Manufacturing MissionA framework to support and oversee national manufacturing initiatives.
Make in IndiaNew clean-tech manufacturing initiativeA dedicated program for clean technology manufacturing introduced.
Make in IndiaNuclear Energy R&D programA mission focusing on nuclear energy research and innovation.
Water ManagementJal Jeevan Mission extensionJal Jeevan Mission extended until 2028 for continued water accessibility.
TechnologyAI Centre of ExcellenceAI Centre of Excellence to receive Rs 500 crore funding.
TechnologySupport for EV battery productionAdditional capital goods support for EV battery manufacturing.
TourismTourist visa fee waiversCertain tourist categories to benefit from visa fee exemptions.

The Budget 2025-26 presents a balanced approach towards economic growth, social welfare, and sustainability. While tax relief for individuals remains limited, the focus on infrastructure, employment, and digital transformation is expected to drive long-term benefits. Stakeholders from various sectors will now analyze the implications of these announcements as the country moves towards a more robust and resilient economy.

📥 Download the Budget 2025-26 PDF

Union Budget 2025 tax slab
Union Budget 2025 tax slab

1. Economic Growth and Fiscal Deficit

  • The government has set a GDP growth target of 6.8% for the upcoming fiscal year, banking on strong domestic demand and global economic recovery.
  • The fiscal deficit has been pegged at 4.9% of GDP, with a strong emphasis on fiscal consolidation to ensure sustainable economic expansion.

2. Taxation and Income Tax Reforms

  • Income Tax Slabs: No changes in tax slabs for individual taxpayers; however, tax exemptions for salaried employees have been increased.
  • Corporate Tax: The corporate tax rate remains unchanged, but additional incentives have been announced for startups and MSMEs.
  • GST Revisions: Several goods and services have seen GST rate adjustments to boost consumption and ease inflationary pressures.

3. Infrastructure and Development Initiatives

  • A ₹15 lakh crore allocation for infrastructure projects, including roads, railways, and airports, to spur economic growth.
  • Smart city projects to receive an additional ₹1 lakh crore to improve urban planning and sustainability.
  • Expansion of high-speed rail corridors and metro connectivity across major cities.

4. Agricultural and Rural Development

  • Doubling Farmer Incomes: Increased minimum support prices (MSPs) for key crops to ensure better earnings for farmers.
  • Irrigation and Water Resources: ₹80,000 crore allocated for irrigation projects and rural water supply schemes.
  • Subsidies: Enhanced subsidies for fertilizers and seeds to support agricultural productivity.
budget-2025-26
budget-2025-26

5. Employment and Skill Development

  • The launch of a National Employment Mission, aimed at creating 10 million jobs over the next five years.
  • Skill development programs for youth to be expanded with a ₹50,000 crore budget to enhance employability.
  • Increased investment in startups and entrepreneurship to promote innovation and self-employment.

6. Digital and Technological Advancements

  • A new Digital India 2.0 initiative announced to enhance AI, blockchain, and cybersecurity infrastructure.
  • Special incentives for startups working in the tech and fintech sectors.
  • Expansion of 5G connectivity across rural and remote areas to bridge the digital divide.

7. Education and Healthcare

  • Education: ₹1.2 lakh crore allocated to the education sector, with a focus on improving school infrastructure and higher education accessibility.
  • Healthcare: ₹2.5 lakh crore budget for healthcare, including expansion of Ayushman Bharat, new AIIMS institutions, and vaccine research funding.
  • Special emphasis on mental health programs and telemedicine expansion.

8. Renewable Energy and Climate Action

  • ₹3 lakh crore allocated for renewable energy projects, including wind, solar, and hydro power initiatives.
  • Electric Vehicle (EV) sector gets a boost with subsidies for consumers and investments in charging infrastructure.
  • Net-zero emissions roadmap for 2050 with strict policies for industries to reduce carbon footprint.

9. Social Welfare and Women Empowerment

  • Women-led development programs receive ₹75,000 crore for entrepreneurship, maternal healthcare, and skill training.
  • Expansion of food security programs and free ration schemes for underprivileged households.
  • Strengthening of pension schemes for senior citizens and welfare funds for disabled individuals.

10. Defense and National Security

  • ₹6 lakh crore allocated for defense spending, with a focus on indigenous defense production.
  • Increased funding for cybersecurity and intelligence infrastructure to counter digital threats.
  • Modernization of armed forces with advanced weaponry and technological advancements.

Frequently Asked Questions (FAQs)

1. How will the new budget impact taxpayers?

The budget has not introduced new tax slabs, but it provides increased tax exemptions for salaried employees, making tax savings more accessible.

2. What are the key benefits for businesses and startups?

Startups and MSMEs receive additional incentives, including tax relief and easier access to funding, encouraging entrepreneurship and innovation.

3. What is the major focus of the infrastructure development plan?

The government has allocated ₹15 lakh crore to infrastructure projects, including highways, metro expansion, and smart cities.

4. How does the budget address employment concerns?

The National Employment Mission aims to generate 10 million jobs, along with significant investment in skill development programs.

5. What measures are being taken for climate change and renewable energy?

The budget earmarks ₹3 lakh crore for renewable energy initiatives, with incentives for electric vehicles and strict carbon reduction policies.

Author
Anthony Lane
I’m a finance news writer for UPExcisePortal.in, passionate about simplifying complex economic trends, market updates, and investment strategies for readers. My goal is to provide clear and actionable insights that help you stay informed and make smarter financial decisions. Thank you for reading, and I hope you find my articles valuable!

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