Understanding India’s Union Budget 2025: A summary
This Budget Series will be a multi part coverage of the Union Budget. In this article we will try to cover as many points as we can from the Union Budget.
Middle Class after this Budget:
The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, focuses on boosting growth while supporting India’s middle class, farmers, and industries. Here’s a simplified breakdown of what matters most:
1. Tax Relief for the Middle Class
The budget offers significant income tax cuts under the new tax regime:
No tax on annual income up to ₹12 lakh (₹1 lakh/month).
Salaried individuals can earn up to ₹12.75 lakh/year tax-free (including a ₹75,000 standard deduction).
Revised tax slabs:
2. Focus on Key Sectors
Agriculture
PM Dhan-Dhaanya Krishi Yojana: Targets 100 low-productivity districts to help 1.7 crore farmers with better irrigation and storage.
Pulses Mission: A 6-year plan to boost domestic production of tur, urad, and masoor.
Kisan Credit Card (KCC): Loan limits raised from ₹3 lakh to ₹5 lakh for easier access to credit.
MSMEs & Manufacturing
Credit guarantees doubled to ₹10 crore for small businesses.
National Manufacturing Mission: To boost "Make in India" in electronics, toys, and textiles.
Infrastructure & Innovation
₹1.5 lakh crore interest-free loans to states for infrastructure projects.
₹20,000 crore fund for private-sector R&D in AI, clean energy, and robotics.
Exports
New digital platform Bharat Trade Net to simplify export processes.
Duty cuts on raw materials for seafood, leather, and shipbuilding to boost exports.
3. What’s Cheaper vs. Costlier
Cheaper: Mobile parts, LED TVs, electric vehicle batteries, lifesaving drugs (36 medicines exempt from customs duty).
Costlier: Interactive flat-panel displays (20% customs duty).
4. Fiscal Health & Reforms
Fiscal deficit target lowered to 4.4% of GDP for 2025-26 (down from 4.8% in 2024-25).
Regulatory reforms: Simplified business laws, 100+ outdated provisions decriminalized.
FDI in insurance increased to 100% to attract global investors.
5. Support for Gig Workers & Youth
Gig workers to get ID cards, healthcare under PM Jan Arogya Yojana, and e-Shram registration.
50,000 Atal Tinkering Labs in government schools to promote innovation.
The Big Picture
The budget balances growth and fiscal prudence by:
Putting more money in middle-class pockets through tax cuts.
Investing in agriculture, manufacturing, and tech to create jobs.
Reducing reliance on imports by boosting domestic production.
While experts praise the focus on consumption and reforms, challenges like achieving 8% GDP growth and managing inflation remain. Union Budget 2025 prioritizes inclusive growth– easing taxes for households while driving long-term investments in India’s economic engines.
Disclaimer
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