Key Takeaways from the Union Budget 2025

The most anticipated Union Budget 2025 is finally over and its time to see if the government has addressed the needs of the citizens

The Budget 2025-26 focuses on economic growth, social welfare, and development under the vision of "Viksit Bharat". Key areas of emphasis include agriculture, MSMEs, Investment and Exports.

Agriculture

A National Mission on High Yielding Seeds and a Prime Minister Dhan-Dhaanya Krishi Yojana aim to enhance crop productivity. Special missions focus on cotton and pulses, along with a Makhana Board in Bihar. Launch a 6-year Mission with special focus on Tur, Urad and Masoor emphasizing better quality and climate resistant seeds. Enhanced credit of upto Rs.5,00,000 under the KCC scheme. India Post to act as a catalyst for development of rural economy by providing insurance, credit services and digital services

MSME

MSME classification criteria have been revised, increasing investment and turnover limits. New credit schemes offer ₹5 lakh credit cards for micro enterprises and ₹2 crore loans for first-time entrepreneurs, benefiting women and marginalized communities. Significant enhancement of credit guarantee cover by 100%. Special schemes such as "Made in India", establishment of National Institute of Food Technology etc to labour intensive sectors such as toys manufacturing, food processing and leather sectors

Investment

Investment in manpower, economy and innovation through measures such as 50,000 Atal Tinkering Labs will be established in schools, AI research centers, medical education will expand with 10,000 additional seats, increasing the capacity in IITs, Day Care Cancer Centres in district hospitals, Welfare of Online Platform workers etc

Infrastructure

Urban & Rural Development: ₹1 lakh crore Urban Challenge Fund will support cities as economic hubs, and the Jal Jeevan Mission will ensure 100% water coverage.

Power & Energy: Nuclear Energy Mission will involve private partnerships, and reforms in power distribution will allow additional borrowing for states.

Tourism Promotion: MUDRA loans for homestays, e-visa reforms, and performance-based incentives for states will encourage tourism.

Exports

The government aims to boost exports through an Export Promotion Mission, providing easier access to export credit, cross-border factoring, and MSME support for tackling non-tariff barriers. BharatTradeNet (BTN) will be established as a unified digital platform for trade documentation and financing, enhancing integration with global supply chains. A National Framework for Global Capability Centres (GCCs) will guide states in developing these hubs in tier-2 cities. Additionally, air cargo warehousing infrastructure will be upgraded, focusing on high-value perishable horticultural products.

Taxation reforms

The most awaited relief for the middle class taxpayers is finally here. No income tax on income up to ₹12 lakh under the new tax regime. Revised tax slabs and rates for those earning above ₹12 lakh thereby reducing the tax outflow by upto INR 1,10,000 which is expected to improve consumer sentiment and enhance consumption in the economy.

Additionally the time limit for filing updated returns extended to four years, promoting voluntary compliance. The budget has also given clarity by harmonizing TDS provisions with regards to sale of goods and increasing threshold for rental income thus enabling easier compliance for small homeowners

The revised slabs for Individual tax payers is revised as follows for FY25-26

- Up to ₹4,00,000: Nil

- ₹4,00,001 to ₹8,00,000: 5%

- ₹8,00,001 to ₹12,00,000: 10%

- ₹12,00,001 to ₹16,00,000: 15%

- ₹16,00,001 to ₹20,00,000: 20%

- ₹20,00,001 to ₹24,00,000: 25%

- Above ₹24,00,000: 30%

With these benefits, the Union Budget provides significant relief to middle class by offering more disposable income and also enabling progress and growth to the overall economy as well.

Allocation made at Union Budget to Various sectors. Source : Union Budget 2025