Finance Minister Nirmala Sitharaman, in her Union Budget 2025 speech, announced a major tax relief for salaried individuals by raising the minimum taxable income to ₹12 lakh under the new tax regime. Here is a concised piece on the day’s major newsbreak, i.e. Finance Minister’s Budget 2025 Speech.
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Agriculture and Rural Development
- Prime Minister Dhan-Dhaanya Krishi Yojana: Covers 100 low-productivity districts to enhance agriculture, improve irrigation, and ensure better credit access.
- Rural Prosperity and Resilience Programme: Focuses on employment in rural areas, skilling, and technology.
- Mission for Aatmanirbharta in Pulses: A 6-year scheme for self-sufficiency in pulses like Tur, Urad, and Masoor.
- Comprehensive Programme for Vegetables & Fruits: Encourages production, processing, and fair pricing.
- Makhana Board in Bihar: Supports makhana farmers with training and market access.
- National Mission on High-Yielding Seeds: Focuses on research and distribution of high-yield, pest-resistant seeds.
- Fisheries Sector: New initiatives for sustainable fisheries in Andaman & Nicobar and Lakshadweep.
- Mission for Cotton Productivity: A 5-year plan to boost cotton yields and promote extra-long staple cotton.
- Urea Production in Assam: A new 12.7 lakh metric ton capacity plant at Namrup.
- Kisan Credit Cards (KCC): Loan limit increased from ₹3 lakh to ₹5 lakh.
- India Post for Rural Economy: Will act as a logistics hub and financial service provider in rural areas.
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MSME Sector
- Revision of MSME Classification: Investment and turnover limits increased by 2.5x and 2x, respectively.
- Credit Guarantee Enhancement: Micro and Small Enterprises limit raised from ₹5 crore to ₹10 crore.
- Startups’ guarantee cover increased from ₹10 crore to ₹20 crore.
- Credit Cards for Micro Enterprises: ₹5 lakh limit for registered MSMEs; 10 lakh cards to be issued.
- Fund of Funds for Startups: ₹10,000 crore fund to support startup growth.
- New Scheme for Women, SC/ST Entrepreneurs: 5 lakh first-time entrepreneurs will receive term loans up to ₹ two crore.
- Focus Product Scheme for Footwear & Leather: Expected to create 22 lakh jobs and generate ₹4 lakh crore in turnover.
- Toy Sector Development: Cluster-based manufacturing and skill development for toy production.
- National Manufacturing Mission: Policy and governance support for small, medium, and large-scale industries.
- Clean Tech Manufacturing: Investment in solar PV cells, EV batteries, electrolyzers, and wind turbines.
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Education and Healthcare
- Atal Tinkering Labs: 50,000 labs in government schools to promote innovation.
- Broadband for Schools and PHCs: Digital access in rural schools and health centres under Bharatnet.
- Bharatiya Bhasha Pustak Scheme: Digital books in regional languages for students.
- Medical Education Expansion: 10,000 new UG/PG medical seats in 2025, aiming for 75,000 in 5 years.
- Day Care Cancer Centres: 200 new centers in 2025-26, covering all districts in 3 years.
- Social Security for Gig Workers: 1 crore gig workers to be registered and given health coverage.
- Urban Livelihood Scheme: Support for urban poor to improve income and quality of life.
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Infrastructure and Investment
- Public-Private Partnerships (PPP) for Infrastructure: a 3-year pipeline for projects to be implemented with private sector involvement.
- 50-Year Interest-Free Loan for States: ₹1.5 lakh crore for capital expenditure.
- Asset Monetization Plan (2025-2030): Mobilizing ₹10 lakh crore for new projects.
- Jal Jeevan Mission Extension: Till 2028, targeting 100% rural tap water connectivity.
- Urban Challenge Fund: ₹1 lakh crore for creative redevelopment and urban infrastructure.
- Power Sector Reforms: Incentives for electricity distribution improvements; states allowed extra borrowing up to 0.5% of GSDP.
- Mining Sector Reforms: State Mining Index to track reforms and encourage investments.
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Energy and Nuclear Sector
- Nuclear Energy Mission: Aiming for 100 GW nuclear energy by 2047; ₹20,000 crore R&D fund for Small Modular Reactors (SMRs).
- Clean Energy Focus: Investment in grid-scale batteries, electrolyzers, and transmission equipment.
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Transport and Logistics
- Revamp of UDAN Scheme: 120 new destinations were added, and four crore passengers will be served in the next 10 years.
- Greenfield Airports in Bihar: To enhance connectivity in the state.
- Shipbuilding Financial Assistance Policy: Revamp to reduce costs and promote domestic shipbuilding.
- Maritime Development Fund: ₹25,000 crore fund to support the shipping industry.
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Research and Innovation
- Deep Tech Fund of Funds: To support next-gen startups in AI, biotech, and quantum computing.
- PM Research Fellowship: 10,000 fellowships for IIT and IISc researchers.
- National Geospatial Mission: Modernizing land records, urban planning, and infrastructure design.
- Gyan Bharatam Mission: Digital conservation of 1 crore ancient manuscripts.
Also Read: Income Tax Calculator: Explaing Modi govt’s major tax relief for Middle Class
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Trade and Exports
- Export Promotion Mission: Targets for different industries to boost global trade.
- BharatTradeNet: A unified digital platform for trade documentation and financing.
- Air Cargo Infrastructure: Upgraded warehousing for high-value perishables.
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Taxation and Financial Reforms
- Income Tax Slabs Restructured: No tax up to ₹12 lakh income.
- Salaried individuals get a rebate of up to ₹12.75 lakh.
- Tax slabs are simplified with reduced rates.
- Increase in FDI Limit for Insurance: Raised from 74% to 100%.
- Central KYC Registry: Simplified Know-Your-Customer (KYC) compliance process.
- Grameen Credit Score: Public Sector Banks to develop a rural credit scoring system.
- Jan Vishwas Bill 2.0: Decriminalization of 100+ provisions in various laws to ease business compliance.
These are the key pints of the Budget 2025 in all the important sector. A whole analysis is about to come where we will discuss the effects of these developments in particular sector. Till, stay tuned to more about the Budget 2025.