The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman on February 1, 2025, marks her eighth consecutive budget and sets the tone for India’s economic trajectory in the coming year. With a strong emphasis on self-reliance (Atmanirbhar Bharat), the budget introduces a slew of measures aimed at boosting manufacturing, supporting vulnerable sections of society, and addressing long-standing challenges in sectors like agriculture, healthcare, and education. Here’s a detailed breakdown of the key highlights and their implications:
1. Tax Reforms: Relief for the Middle Class
One of the most talked-about announcements in Budget 2025 is the significant increase in the income tax rebate limit from ₹7 lakh to ₹12 lakh under the new tax regime. This means individuals with an annual income of up to ₹12 lakh will have zero tax liability.
- Above ₹24 lakh: 30%
This move is expected to provide much-needed relief to the middle class, which has been grappling with inflationary pressures and stagnant incomes. Additionally, the time limit for filing tax returns has been extended from two years to four years, reducing compliance burdens.
2. Boosting Manufacturing and ‘Make in India’
The budget reaffirms the government’s commitment to the ‘Make in India’ initiative, with a focus on enhancing domestic manufacturing capabilities. Key announcements include:
Revamped Shipbuilding Financial Assistance Policy: To address cost disadvantages and promote the circular economy, the policy will include Credit Notes for ship-wrecking in Indian yards.
National Mission on High Yielding Seeds: Aimed at strengthening the research ecosystem and promoting climate-resilient, high-yield seed varieties.
These measures are expected to create jobs, reduce import dependency, and position India as a global manufacturing hub.
3. Agriculture and Food Security
The budget introduces several initiatives to boost agricultural productivity and achieve self-reliance in essential commodities:
National Mission for Edible Oilseeds: A six-year mission to achieve self-reliance in pulses and edible oils, with a special focus on tur, urad, and masoor dal.
Makhana Board: To leverage Bihar’s dominance in makhana (foxnut) production and tap into the growing demand for this “superfood.”
Jal Jeevan Mission Extension: Allocated ₹67,000 crore to ensure water security and extend the mission till 2028
These initiatives aim to address food security concerns, improve farmers’ incomes, and reduce India’s reliance on imports for edible oils.
4. Healthcare: Lifesaving Medicines and Cancer Care
In a significant move to improve healthcare access, the budget announces:
Exemption from Basic Customs Duty: 36 lifesaving drugs and medicines have been added to the list of items fully exempt from customs duty.
Daycare Cancer Centres: 200 centres will be established in district hospitals over the next three years, ensuring better access to cancer care in rural areas.
These measures are expected to provide relief to patients suffering from chronic diseases and reduce the financial burden on families.
5. Education and Research
The budget allocates substantial resources to strengthen India’s education and research ecosystem:
Private Sector-Driven Research: ₹20,000 crore has been allocated to support private sector research, with a focus on deep-tech innovations.
IIT Infrastructure Push: Expansion of infrastructure in newer IITs to accommodate 6,500 additional students.
Bharatiya Bhasha Pustak Scheme: Digitalization of Indian language books for schools and higher education institutions.
These initiatives aim to foster innovation, improve access to quality education, and promote Indian languages.
6. Infrastructure and Connectivity
The budget emphasizes infrastructure development to boost economic growth and connectivity:
Modified UDAN Scheme: To connect 120 new destinations, targeting 4 crore additional passengers over the next decade.
Revamping India Post: Transforming India Post into a large public logistics organization to support rural entrepreneurs, MSMEs, and women-led self-help groups.
Greenfield Airports: Expansion of airport infrastructure in Bihar, including a brownfield airport in Bihta.
These measures are expected to enhance last-mile connectivity, promote regional development, and support economic activities in rural areas.
7. Regulatory Reforms and Ease of Doing Business
To improve the business environment, the budget announces:
High-Level Committee for Regulatory Reforms: To review non-financial sector regulations and reduce compliance burdens.
Investment Friendliness Index: A new index to rank states on their investment-friendly policies, promoting competitive federalism.
Jan Vishwas Bill 2.0: Decriminalization of over 100 provisions in various laws to reduce legal hurdles for businesses.
These reforms aim to enhance India’s global competitiveness and attract foreign investment.
8. Export Promotion and Global Integration
The budget introduces several initiatives to boost exports and integrate India into global supply chains:
Export Promotion Mission: A joint initiative by the Ministries of Commerce, MSME, and Finance to support MSMEs in accessing export credit and tackling non-tariff barriers.
BharatTradeNet: A digital platform for international trade documentation and financing solutions.
National Framework for Global Capability Centres (GCCs): To promote GCCs in tier-2 cities, enhancing India’s role in global value chains.
These measures aim to make India a key player in global trade and boost export-led growth.
9. Nuclear Energy Mission
In a bold move towards clean energy, the budget announces:
Nuclear Energy Mission: Aimed at developing 100 GW of nuclear energy by 2047, with active private sector participation.
Small Modular Reactors (SMRs): An outlay of ₹20,000 crore for R&D, with a target of operationalizing five indigenously developed SMRs by 2033.
This initiative underscores India’s commitment to sustainable energy and reducing carbon emissions.
10. Social Welfare and Women Empowerment
The budget includes several schemes to support vulnerable sections of society:
Saksham Anganwadi & POSHAN 2.0: To support over 8 crore children and 1 crore pregnant women and lactating mothers.
SWAMIH Fund 2: A blended finance facility to complete 1 lakh stressed housing projects, benefiting middle-class families.
These initiatives aim to improve social infrastructure and ensure inclusive growth.
Conclusion: A Budget for Viksit Bharat@2047
Union Budget 2025 is a forward-looking blueprint that aligns with the vision of Viksit Bharat@2047, aiming to transform India into a developed nation by its centenary of independence. By focusing on self-reliance, infrastructure development, and social welfare, the budget seeks to address both immediate challenges and long-term goals. While the tax relief for the middle class and the emphasis on manufacturing and exports have been widely welcomed, the success of these initiatives will depend on effective implementation and sustained economic reforms.
As India navigates the complexities of a rapidly changing global economy, Budget 2025 sets the stage for a resilient, inclusive, and self-reliant future.
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