The Indian Union Budget 2025 is finally here, and as always, it’s packed with announcements that are set to shape the nation’s economic landscape. From infrastructure spending to tax reforms, this year’s budget has something for everyone. Let’s dive into the key highlights and what they mean for you.

➡ Transformative reforms in 6 sectors which will set trends for next 5 years: -Six sectors are:
- Power
- Mining
- Urban developments (covers water sector)
- Financial sector
- Regulatory reforms
- Taxation
➡ Dhan Dhanya Krishi Yojna
- Kisan Credit Card limits for farmers, fisherman etc. increased from 3 lakh to 5 lakh.
- 6 year mission for pulses.
- Agri plan to cover 100 districts with low productivity in phase 1.
➡MSMEs -Focus on 5.7cr MSMEs
- Increase loan guarantees to micro entrepreneurs.
- Loans to startups in 27 focus sectors at 1% guarantee fees.
- Term loans upto 20cr for export MSMEs
- Customized credit cards for Udyam registered MSMEs
- Fund of fund for startups, another 10,000 cr. to be setup
➡ Credit guarantee cover will be enhanced from 2 cr to 5cr for MSME. Startups will have credit guarantee of 10cr to 20cr. Well run MSME: 20cr.
➡ Micro enterprise will have 5 lakh limit of credit card.
➡ Make India global hub for toys. Development of clusters and manufacturing of toys.
➡ Footwear and Leather sector scheme- to generate employment to 22 lakh people and generate investment of 4 lakh cr. Exports over Rs 1.1 lakh cr
➡ National Manufacturing Mission for MSME. Support clean tech manufacturing like wind turbines, batteries etc.
➡ Broadband connectivity to be provided to all secondary schools.
➡ Digital form of Indian language book – to understand subject in their language.
➡ Additional infra in the 5 IITs started after 2014, to add 6500 more students.
➡ 10,000 additional medical seats to be added in next 5 years.
➡ There is going to be AI in education with outlay of 500cr.
➡ Govt. will set up of daycare centres for cancer in all districts in the next 3years– to pose competition for private sector hospitals, though tertiary care (at bigger hospitals) will not have much impact.
➡ PPP for infrastructure. 1.5 lakh Cr interest free loans for 50 years
➡ Registration and ID for gig workers will be provided to make this sector more organized also insurance for them will be provided to them.
➡ Jal Jeevan Mission to be extended till 2028 to achieve 100% coverage with separate O&M contracts under Jan Bhagidhari
➡ Outlay of 1.5 lakh cr for 50 year interest free loan to states that do capex/infra.
➡ Urban challenge fund of 1 lakh cr to create redevelopment of cities, water sanitation.
➡ Power sector reforms - incentivize inter-state and distribution sector reforms
➡ Nuclear energy mission: Small modular reactors indigenous built to be used. Development of 100GW of nuclear power.
➡ Nuclear Power: Liability clauses will be relaxed, small modular rectors R&D will be promoted.
➡ Ship Building financial assistance policy to be revamped
➡ Maritime development fund with INR 20,000 Cr to be setup
➡ UDAAN regional connectivity scheme: 120 new destinations and carry 4cr additional passengers in next 10 years
➡ Green field airports facilitated in Bihar.
➡ Tourism for employment led growth. 50 destinations to be revamped in cooperation with states.
➡ Medical tourism and heal in India will be promoted under PPP mode. Private hospitals to benefit.
➡ Geo spatial mission: modernization of land record, urban planning.
➡ Outlay of Rs 1.5 lakh cr towards 50-year interest free loans to states to augment infrastructure.
➡ Affordable housing: Another 40,000 units to be completed in FY26.
➡ GCCs in tier 2 cities, will be initiated, to provide employment and also focus to provide relevant skills to people; this will boost the investments from overseas.
➡ Insurance FDI increased from 74% to 100%.
➡ New tax bill to be introduced next week.
➡ Fiscal consolidation - Debt to GDP to be on declining path.
➡ Fiscal Deficit - 4.8% of GDP. Fiscal Deficit for FY26 - 4.4% of GDP. Borrowings to be INR 11.5 trn
➡ FY25 Infra spend RE (revised est.) at INR 10.18 Lakh cr fall short of FY25 BE (budget est.) of INR 11.1 Lakh cr.
➡ Adding 36 life saving drugs to the list of medicines fully exempt from basic duties.
➡ Levy not more than 1% cess surcharge. Remove 82 items for cess surcharge items.
➡ Interactive flat panel displays will see 20% customs (from 10%).
➡ Proposed to continue the exemption of BCD on raw materials, components, consumables or parts for the manufacture of ships for another 10 years.
➡ Full exemption on Lithium Ion batteries - helps EV and battery manufacturer.
➡ Reduce BCD from 30% to 5% on frozen fish feed.
➡ Removal of TDS on remittances for educational purposes.
➡ TDS and TCS will be rationalized at source.
➡ Threshold amount for tax deduction will be reduced.
➡ Senior citizen tax deduction will be increased to 1 lakh (from 50 thousand).
➡ Time limit to file income tax returns increased from 2 years to 5 years for any financial year.
➡ TDS on rent threshold hiked to 6 lakh.
➡ No tax till INR 12 lakh income.
➡ Deduction u/s 80CCD for contributions made to the NPS Vatsalya