On 1st February, Finance Minister Nirmala Sitharaman tabled Annual Financial Statement for FY 2025, marking her record eight consecutive Union Budget.
Income upto Rs 12 lakh per annum will be exempted from tax, Nirmala Sitharaman announced.
Announcement of huge relief to the working middle class! A working person with a monthly salary of Rs 1 lakh will not have to pay.
“The middle class provide strengths to the economy. In recognition of their contribution, we have periodically reduced the tax burdens. I am now happy to announce that there will be no income tax up to an income of Rs 12 lakhs”, says Union Finance Minister Nirmala Sitharaman.
#WATCH | “I am now happy to announce that there will be no income tax up to an income of Rs 12 lakhs”, says Union Finance Minister Nirmala Sitharaman#UnionBudget2025 | #BudgetSession | #BudgetSession2025 | #Budget | #NirmalaSitharaman
(Video Courtesy: Sansad TV) pic.twitter.com/BGWd93Pw8S
— The Frustrated Indian (@FrustIndian) February 1, 2025
Farmers Get a Huge Boost
The Finance Minister introduced the PM Dhan Dhanya Krishi Yojana, which will target 100 districts with poor yields, moderate crop intensity, and below-average loan access. The initiative intends to benefit 1.7 crore farmers by increasing agricultural output through crop diversification, better irrigation, and improved storage facilities.
The government will also begin a six-year Atmanirbharta Mission in pulses, focused on tur, urad, and masoor, with procurement assistance from central agencies. A national mission on high-yielding seeds will be launched to increase crop output.
To encourage horticulture, a comprehensive scheme for vegetable and fruit production will be implemented, ensuring farmers receive fair pricing. In Bihar, a Makhana Board will be established to increase foxnut production and processing.
The Dhan Dhanya Krishi program, which is inspired by the Aspirational Districts Programme, will focus on improving agricultural districts through state collaborations to ensure long-term sectoral growth.
Vision of ‘VIKSIT BHARAT’
The Finance Minister laid forth the vision for Viksit Bharat, emphasizing objectives such as zero poverty, universal access to quality education, and high-quality, inexpensive, and comprehensive healthcare.
“Viksit Bharat encompasses zero poverty, 100% quality education, and comprehensive healthcare,” Sitharaman told during her speech.
Interest-Free Loans to States
A new round of the Fund of Funds for Startups plan will be launched with a capital of ₹10,000 crore to encourage fledgling businesses, Sitharaman announced. This project supports the government’s quest for innovation and startup growth. The Department for Promotion of Industry and Internal Trade (DPIIT) has already recognised over 1.5 lakh startups.
New urban challenge fund worth Rs 1 lakh crore
Finance Minister Nirmala Sitharaman announced the establishment of an Urban Challenge Fund with a corpus of ₹1 lakh crore to fund infrastructure and development initiatives in cities. The fund would finance up to 25% of bankable projects, encouraging both private and public sector participation in urban expansion, modernization, and sustainability.
To promote domestic production of technical textile products such as agro-textiles, medical textiles and geo-textiles at competitive prices, FM propose to add two more types of shuttle-less looms to the list of fully exempted textile machinery. FM also propose to revise the BCD rate on knitted fabrics covered by nine tariff lines from 10% or 20% to 20% or Rs. 115 per kg, whichever is higher…
#WATCH | “To promote domestic production of technical textile products such as agro-textiles, medical textiles and geo-textiles at competitive prices, I propose to add two more types of shuttle-less looms to the list of fully exempted textile machinery. I also propose to revise… pic.twitter.com/d0wLHiLv6c
— The Frustrated Indian (@FrustIndian) February 1, 2025
New Income Tax Bill To Be Introduced Next Week, FM Says
Finance Minister announced that a new Income tax bill will be introduced next week.
Bihar Takes Center Stage in FM. Sitharaman’s Union Budget
Bihar has emerged as a prominent focus since Finance Minister Nirmala Sitharaman released the second Budget of Modi Govt 3.0 on Saturday. The government establishes the Institute of Food Processing and the Makhana Board. The Makhana Board will train farmers to maximize the benefits of all government projects. The Makhana Board will be established in Bihar. According to Sitharaman, the board will support and train Makhana farmers, as well as provide them with access to all necessary government projects.
Focus on GAREEB, YOUTH, ANNADATA, AND NARI
Sitharaman emphasized that the Budget’s primary focus is on empowering the underprivileged, young, farmers, and women.
“This Budget covers 10 broad areas, focusing on empowering the poor, youth, annadata (farmers), and nari (women), driving agricultural growth, building rural prosperity, and ensuring an inclusive development path,” according to her speech.
Broadband connectivity will be provided to all government secondary schools and primary health centers in rural areas under the Bharat Net project.
#WATCH | “Broadband connectivity will be provided to all government secondary schools and primary health centers in rural areas under the Bharat Net project. We propose to implement a Bharatiya Basha Pustak scheme to provide digital form Indian language books for schools and for… pic.twitter.com/XYKP9FVX9W
— The Frustrated Indian (@FrustIndian) February 1, 2025
Before her address, the Cabinet, chaired by Prime Minister Narendra Modi, approved the budget. Draped in an off-white handloom silk saree with fish-themed embroidery, Nirmala Sitharaman carried the budget document in a red cover with a golden national emblem and met President Droupadi Murmu at Rashtrapati Bhawan.
This year’s budget is expected to introduce significant tax reforms, housing benefits, and incentives for the automobile sector. The government may also focus on healthcare advancements, fintech growth, and revising the Securities Transaction Tax (STT) to encourage stock market participation. Businesses are anticipating relief in compliance procedures to foster economic growth.
The energy sector has urged the government to increase investment in renewable energy, boost domestic manufacturing, and rationalize the tax structure. Industry leaders emphasize the need for financial support in solar, wind, green hydrogen, energy storage, and grid modernization.
As the budget unfolds, market reactions will be closely monitored, especially in sectors like finance, energy, and infrastructure. The government’s approach toward sustainability and economic resilience will play a crucial role in shaping India’s growth trajectory.
Morarji Desai holds the record for delivering the most number of Union Budgets. During his tenure as Finance Minister between 1959 and 1969, he delivered ten Budget speeches. He is followed by UPA Finance Minister P Chidambaram who delivered nine Budget speeches in total.
On the 31st of Januray, Finance Minister Nirmala Sitharaman tabled the Economic Survey 2025 in Parliament. The survey provided a comprehensive analysis of India’s economic performance, key trends, and future outlook, projecting GDP growth in the range of 6.3% to 6.8%. The survey highlighted that despite global uncertainties, India’s real GDP and GVA are estimated to grow at 6.4%. Inflation has eased to 4.9%, with stability expected ahead. Forex reserves stood at $640.3 billion, covering 89.9% of external debt. Banking stability improved, with GNPA declining to 2.6%. MSME credit grew by 13%, and total exports reached $602.6 billion. The survey calls for deregulation, private sector participation in infrastructure, and investment in human capital to drive sustainable growth under Viksit Bharat 2047.
