
The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, introduced significant reforms across agriculture, industry, education, housing, finance, and trade, with a strong focus on inclusive growth and economic resilience. The most notable announcement was the exemption of income tax for individuals earning up to ₹12 lakh annually, providing much-needed relief to the middle class. Here are the key highlights:
Agriculture & Rural Development
- The Dhan Dhanya Yojana will be launched in 100 districts to enhance agricultural productivity.
- A 6-year mission targeting increased production of Tur, Urad, and Masoor dal was announced.
- A Makhana Board will be established in Bihar to promote the regional delicacy.
- Central agencies will procure pulses for the next four years to stabilize farmer incomes.
- New schemes for vegetable and fruit production will be rolled out in collaboration with state governments.
- Marine sector development initiatives aim to boost aquaculture and fisheries.
- A push for self-reliance in edible oils was announced, along with raising the Kisan Credit Card limit to ₹5 lakh.
- A new urea plant will be set up in Assam to improve fertilizer supply.
Industry & Infrastructure
- Special schemes will support the footwear and leather industries, expected to create 22 lakh jobs.
- India will position itself as a global hub for toy manufacturing.
- The National Manufacturing Mission will be launched to boost industrial growth.
- ₹1 lakh crore will be allocated for urban development projects.
- The ship-breaking industry will receive special support.
- The Udaan scheme will expand regional connectivity to more cities, with a new airport planned in Bihar.
Education & Research
- More IITs will be established, alongside the addition of 75,000 new medical seats over the next five years.
- Special AI research centers will be created to foster innovation.
- All government secondary schools will be equipped with broadband under the BharatNet project.
- ₹20,000 crore will be invested in private sector R&D.
- A focus on promoting Indian languages in education through the Bharatiya Bhasha Pustak Scheme.
Housing & Tourism
- 40,000 homes will be built under the SWAMIH scheme for affordable housing.
- 52 new tourist destinations will be developed in partnership with state governments, with special attention to sites related to Buddha’s life.
Finance & Taxation
- A new income tax bill will be introduced next week, simplifying tax structures.
- No income tax for individuals earning up to ₹12 lakh, offering significant relief to the middle class.
- Special credit cards will be launched for small businesses and vendors, with UPI-linked cards having a ₹30,000 limit.
- Senior citizens will benefit from tax exemptions up to ₹1 lakh and simplified TDS rules.
- TDS exemption on rent has been increased to ₹6 lakh, and no penalties will apply for delayed TCS payments.
- 100% FDI and FPI limits in the insurance sector were introduced, alongside simplified RE-KYC processes.
Trade & Customs
- A new mining policy will be introduced, while custom duties on 36 life-saving medicines have been removed.
- Custom duty on electronic goods has been adjusted, with no primary duty on lead and zinc.
- Duty on crust leather has also been eliminated to support the leather industry.
Biggest Announcement
The most significant announcement of the Union Budget 2025 is the complete exemption from income tax for individuals earning up to ₹12 lakh annually. This move is expected to boost household savings, consumption, and overall economic activity, benefiting the middle class significantly.
The Union Budget 2025 aims to balance fiscal discipline with growth initiatives, focusing on empowering sectors critical for long-term economic resilience and inclusive development.