Budget 2025 Unveiled: Growth, Reforms & Opportunities!"

The Union Budget 2025-26 presented by Finance Minister Nirmala Sitharaman on February 1, 2025, lays out a bold vision to boost India's economic growth, drive inclusive development, and strengthen its global standing. The budget focuses on four key growth pillars—Agriculture, MSMEs, Investments, and Exports—while emphasizing reforms as the fuel to drive these engines. Here’s a quick look at the major takeaways and impactful highlights from Budget 2025.

1. Introduction Vision for Viksit Bharat

The budget is centered around the vision of Viksit Bharat (Developed India), with a focus on achieving zero poverty, 100% quality education, affordable healthcare, skilled labor, and women's empowerment. The government aims to stimulate balanced growth across all regions, with a special emphasis on Garib (Poor), Youth, Annadata (Farmers), and Nari (Women).

Key Objectives:

• Accelerate Growth: Boost GDP growth and private sector investments.
• Inclusive Development: Ensure that growth benefits all sections of society.
• Household Sentiments: Uplift household spending power, especially for the middle class.
• Global Positioning: Enhance India's global economic standing.

2. Four Engines of Growth

A. Agriculture as the 1st Engine

Agriculture remains a cornerstone of India's economy, and Budget 2025 introduces several initiatives to boost productivity and rural prosperity.

Key Initiatives:

• Prime Minister Dhan-Dhaanya Krishi Yojana: A program to enhance agricultural productivity in 100 low-productivity districts. It aims to:
• Increase crop diversification.
• Improve irrigation facilities.
• Augment post-harvest storage.
• Facilitate credit availability for 1.7 crore farmers.
• Aatmanirbharta in Pulses: A 6-year mission to achieve self-sufficiency in pulses like Tur, Urad, and Masoor. Central agencies like NAFED and NCCF will procure these pulses at remunerative prices.
• National Mission on High Yielding Seeds: Focused on developing climate-resilient seeds with high yield and pest resistance.
• Fisheries Development: An enabling framework for sustainable fisheries, with a focus on the Andaman & Nicobar and Lakshadweep Islands.
• Mission for Cotton Productivity: A 5-year mission to improve cotton farming productivity and promote extra-long staple cotton varieties.
• Enhanced Credit through KCC: The loan limit under the Kisan Credit Card (KCC) scheme will be increased from ₹3 lakh to ₹5 lakh.

B. MSMEs as the 2nd Engine

MSMEs are the backbone of India's economy, contributing 36% to manufacturing and 45% to exports. Budget 2025 introduces several measures to support this sector.

Key Initiatives:

• Revision in MSME Classification Criteria: Investment and turnover limits for MSMEs will be increased by 2.5 and 2 times, respectively, to help them scale up.
• Enhanced Credit Guarantee Cover:
  • Micro and Small Enterprises: Credit guarantee cover increased from ₹5 crore to ₹10 crore.
  • Startups: Guarantee cover increased from ₹10 crore to ₹20 crore.
• Credit Cards for Micro Enterprises: Customized credit cards with a ₹5 lakh limit will be introduced for micro-enterprises registered on the Udyam portal.
• Fund of Funds for Startups: A new Fund of Funds with a ₹10,000 crore contribution will be set up to support startups.
• Focus on Labour-Intensive Sectors: Specific measures for sectors like footwear, leather, and toys to boost employment and exports.

C. Investment as the 3rd Engine

Investment is critical for India's growth, and Budget 2025 focuses on investing in people, the economy, and innovation.

Key Initiatives:

• Investing in People:
  • Saksham Anganwadi and Poshan 2.0: Enhanced nutritional support for 8 crore children, 1 crore pregnant women, and 20 lakh adolescent girls.
  • Atal Tinkering Labs: 50,000 labs will be set up in government schools to foster innovation.
  • Broadband Connectivity: All government secondary schools and primary health centers in rural areas will be connected under the Bharatnet project.
  • Medical Education Expansion: 10,000 additional medical seats will be added in 2025-26, with a goal of adding 75,000 seats in the next 5 years.
• Investing in the Economy:
  • Public-Private Partnership (PPP) in Infrastructure: Each ministry will come up with a 3-year pipeline of PPP projects.
  • Asset Monetization Plan 2025-30: A ₹10 lakh crore plan to fund new infrastructure projects.
  • Jal Jeevan Mission: Extended until 2028 to achieve 100% rural tap water coverage.
• Investing in Innovation:
  • Deep Tech Fund of Funds: To catalyze next-generation startups.
  • PM Research Fellowship: 10,000 fellowships for technological research in IITs and IISc.
  • National Geospatial Mission: To modernize land records and urban planning.

D. Exports as the 4th Engine

Exports are crucial for India's integration into global supply chains, and Budget 2025 introduces several measures to boost exports.

Key Initiatives:

• Export Promotion Mission: A joint initiative by the Ministries of Commerce, MSME, and Finance to facilitate export credit and tackle non-tariff barriers.
• BharatTradeNet: A digital platform for international trade documentation and financing.
• Support for Global Supply Chains: Focus on sectors like electronics, where India can leverage its skilled workforce for Industry 4.0 opportunities.

3. Reforms as the Fuel

Reforms are the driving force behind the four engines of growth. Budget 2025 introduces several key reforms across sectors.

Key Reforms:

• Tax Reforms:
  • New Income Tax Bill: A simplified and reduced tax structure for the middle class. No tax for income up to ₹12 lakh under the new regime.
  • TDS/TCS Rationalization: Increased thresholds for TDS on rent (from ₹2.4 lakh to ₹6 lakh) and interest for senior citizens (from ₹50,000 to ₹1 lakh).
• Financial Sector Reforms:
  • FDI in Insurance: FDI limit increased from 74% to 100%.
  • Credit Enhancement Facility: NaBFID will set up a Partial Credit Enhancement Facility for corporate bonds.
• Regulatory Reforms:
  • Jan Vishwas Bill 2.0: Decriminalization of over 100 legal provisions to improve ease of doing business.
  • Investment Friendliness Index: To promote competitive federalism among states.

4. Fiscal Policy and Budget Estimates

Key Figures:

• Revised Estimates 2024-25:
  • Total Receipts: ₹31.47 lakh crore.
  • Total Expenditure: ₹47.16 lakh crore.
  • Fiscal Deficit: 4.8% of GDP.
• Budget Estimates 2025-26:
  • Total Receipts: ₹34.96 lakh crore.
  • Total Expenditure: ₹50.65 lakh crore.
  • Fiscal Deficit: 4.4% of GDP.

5. Key Tax Proposals

Direct Taxes:

Personal Income Tax Reforms:

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%

Rebate for Middle Class: No tax for income up to ₹12 lakh.

Indirect Taxes:

• Customs Duty Rationalization: Reduction in customs duty on critical minerals, drugs, and medicines to boost domestic manufacturing.
• Export Promotion: Duty exemptions for handicrafts, leather, and marine products to enhance global competitiveness.

6. Conclusion A Budget for the Future

Budget 2025 is a forward-looking budget that aims to transform India into a developed nation by 2047. With a strong focus on agriculture, MSMEs, investment, and exports, coupled with significant reforms, this budget lays the foundation for sustained economic growth and inclusive development. The emphasis on innovation, infrastructure, and ease of doing business further strengthens India's position as a global economic leader.

Key Takeaways Table:

Sector	Key Initiatives	Impact
Agriculture	PM Dhan-Dhaanya Krishi Yojana, Aatmanirbharta in Pulses, Enhanced KCC limits	Boost rural income, self-sufficiency in pulses, better credit access