The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman on February 1, 2025, focuses on economic growth, tax reforms, infrastructure development, and social welfare. Below are the key highlights of the budget:

Taxation Reforms

• Income Tax Relief: Individuals earning up to ₹12 lakh annually under the new tax regime are now completely exempted from income tax.
• Standard Deduction Increase: The standard deduction has been increased from ₹50,000 to ₹75,000, benefiting salaried individuals and pensioners.
• New Tax Incentives for Startups: Extended tax holiday and concessional tax rates for startups and MSMEs.
• Capital Gains Tax Rationalization: Revised capital gains tax structure to boost investments in equity and real estate.
• Revised Tax Slabs: The updated tax slabs are as follows:

Agricultural Initiatives

• Prime Minister Dhan-Dhaanya Krishi Yojana launched in 100 districts to support 1.7 crore farmers.
• Kisan Credit Card (KCC) Scheme expanded to provide short-term loans up to ₹5 lakh for farmers, fishermen, and dairy farmers.
• Pulses Production Mission introduced to achieve self-reliance in Tur, Urad, and Masoor dal.
• Subsidies on Agri-Equipment: Increased subsidies for modern farming equipment and irrigation facilities.
• Organic Farming Support: ₹10,000 crore allocated for promoting organic and sustainable farming practices.

Infrastructure & Industrial Growth

• ₹15 trillion allocated for major infrastructure projects, including roads, highways, and smart cities.
• Boost to Renewable Energy: ₹5 trillion investment in solar, wind, and hydropower projects.
• Expansion of Metro Rail Projects in 10 new cities to improve urban mobility.
• Development of Industrial Corridors to enhance manufacturing and exports.
• Increased FDI Limits in critical sectors like defense, telecom, and real estate.

Investment in Research & Innovation

• ₹20,000 crore allocated to private-sector-driven Research & Development initiatives.
• 10,000 Research Fellowships introduced under the PM Research Fellowship program.
• Establishment of a Gene Bank to safeguard 10 lakh germplasm lines for food security.
• AI and Blockchain Investments: Government to fund AI and blockchain research for better governance and automation.
• Space Exploration Boost: ₹8,000 crore allocated to ISRO for deep space exploration and satellite programs.

Export Promotion & Trade Facilitation

• Electronics & EV Manufacturing: Import duty exemptions on LED/LCD TV components, lithium-ion battery materials, and mobile phone parts.
• Maritime Sector Support: 10-year exemption on shipbuilding materials and extended export timelines for repaired railway goods.
• Trade Simplifications: New provisions for faster trade assessments and voluntary post-clearance declarations.
• Expansion of SEZs (Special Economic Zones) to boost exports and attract foreign investment.
• India-Middle East-Europe Corridor development to strengthen global trade routes.

Social Welfare & Employment

• ₹4.57 trillion allocated for subsidies on food, fertilizers, and rural employment.
• Rural Employment Boost: MGNREGA receives ₹860 billion to provide 100-day minimum wage jobs to rural households.
• Women Empowerment Initiatives: ₹50,000 crore allocated for women entrepreneurs, SHGs, and rural employment schemes.
• Housing for All: ₹12 trillion allocated under the PM Awas Yojana to construct affordable housing.
• Healthcare Investment: ₹2 trillion dedicated to upgrading hospitals, AI-based diagnosis, and telemedicine expansion.

Economic Outlook

• Fiscal Deficit Target: Reduced to 4.4% of GDP, reinforcing fiscal discipline.
• GDP Growth Projection: Expected to grow between 6.3% and 6.8% in FY 2025-26.
• Digital Rupee Expansion: Government to introduce digital rupee-based transactions in public sector payments.
• Banking Sector Reforms: Capital infusion of ₹1 trillion into public sector banks to improve credit flow.
• Stock Market Reforms: New regulations to prevent insider trading and encourage retail participation.

The Union Budget 2025 lays a strong foundation for economic stability, improved social welfare, and sustained growth across multiple sectors. With a strategic focus on infrastructure, agriculture, technology, and social welfare, this budget aims to drive long-term economic progress and job creation.