Union Budget 2025: Highlights and Analysis of Each Sector

Roopalatha H, Correspondent

“There will be no Income Tax payable up to an income of Rs 12 Lakh.” The crowd erupted inside and outside the Parliament House as Indian Finance Minister Nirmala Sitharaman echoed these most anticipated words during the epilogue of her speech, presenting the Union Budget 2025. She has also revealed several plans for proposed development measures spanning 10 broad areas, focussing on the Poor, Youth, Farmers, and Women. Let’s dive deeper into the takeaways from this year’s budget.

Agriculture & Rural Development

• The Prime Minister's Krishi Yojana, Dhan-Dhaanya, covers 100 districts to improve access to loans, irrigation, storage, and agricultural productivity.
• The goal of the six-year program, Mission for Aatmanirbharta in Pulses, is to help Tur, Urad, and Masoor Dal become self-sufficient.
• The Comprehensive Program for Fruits and Vegetables encourages fair prices for farmers, effective supply chains, and output.
• The Mission for Cotton Productivity is a five-year plan that uses technology and research to increase cotton productivity.
• The loan limit for farmers, fishermen, and dairy producers on the Kisan Credit Card (KCC) has been increased from Rs. 3 lakh to Rs. 5 lakh.
• A new urea plant in Assam will produce 12.7 lakh metric tons of urea annually for local consumption.

Healthcare

• 10,000 additional UG/PG seats will be added to the medical college in 2025–2026, with a five-year goal of 75,000 seats.
• There will be 200 daycare cancer centers in district hospitals in 2025–2026; all districts will be serviced in three years.
• Identity cards, e-Shram portal registration, and PM Jan Arogya Yojana healthcare are all included under Social Security for Gig Workers.
• ‘Heal in India’ and medical tourism are private-sector collaborations aimed at promoting India as a global center for healthcare.
• Primary Health Centre (PHC) Broadband: All rural PHCs will have internet access thanks to BharatNet.

Education & Skilling

• Over five years, 50,000 Atal Tinkering Labs will be established in government schools to encourage STEM education.
• All government secondary schools will have access to broadband connectivity through BharatNet.
• Digital books in Indian languages for use in schools and universities are part of the Bharatiya Bhasha Pustak Scheme.
• The industry collaborates with five National Centres of Excellence for Skilling to provide sophisticated manufacturing training.
• IIT expansion IIT Patna will expand its hostels to accommodate 6,500 more students.
• Amount allotted for AI-driven education research: Rs. 500 crore for the Centre of Excellence in AI for Education.

Technology & Innovation

• National Geospatial Mission – Modernisation of land records, urban planning & design of infrastructure.
• The Deep Tech Fund of Funds (Rs. 10,000 crore) provides funding to cutting-edge biotech, AI, and space tech firms.
• 10,000 scholarships with more financial support are available for PM Research scholarships at IITs and IISc.
• Gene Bank for Crops Germplasm: To ensure food security, a second gene bank will house 10 lakh plant types.
• Nuclear Energy Expansion: As part of the 100 GW nuclear energy target by 2047, Rs. 20,000 crore would be allocated for Small Modular Reactors (SMRs).
• Surveying, digitizing, and conserving more than one crore ancient manuscripts is the goal of the Gyan Bharatam Mission.

Infrastructure & Urban Development

• Urban Challenge Fund (Rs. 1 lakh crore): Emphasis on Water/Sanitation Projects, Redevelopment, and Cities as Growth Hubs.
• Rs. 1.5 lakh crore is available to states for capital infrastructure projects under a 50-year interest-free loan.
• The Jal Jeevan Mission Extension was extended till 2028 in order to supply tap water connections in every rural area.
• Infrastructure Public-Private Partnership: Every ministry will create a three-year PPP pipeline.
• The government will sell assets to finance new projects under the Asset Monetisation Plan (Rs. 10 lakh crore, 2025–30).
• Over a ten-year period, the UDAN Regional Connectivity Scheme would expand to 120 new locations and carry four crore passengers.
• To complement Patna and Bihta airports, Bihar will see the construction of a Greenfield airport.

Manufacturing & MSMEs

• The National Manufacturing Mission uses incentives and policy assistance to promote MSMEs and "Make in India."
• Improved Credit for Startups & MSMEs: The credit limit for micro and small businesses was increased from Rs. 5 crore to Rs. 10 crore. The guarantee cover for startups has increased from Rs. 10 crore to Rs. 20 crore. MSMEs that export: Up to Rs. 20 crore in term loan guarantees. Microbusiness credit cards have a Rs. 5 lakh credit limit and 10 lakh cards in the first year. Fund of Funds for Startups (Rs. 10,000 crore): Increasing assistance for startup companies. 5 lakh SC/ST and female entrepreneurs would be eligible for loans up to Rs. 2 crore under the new scheme for first-time business owners.

Exports & Trade

• The purpose of the Export Promotion Mission is to promote targeted export growth through the Ministries of Commerce, MSME, and Finance.
• A digital public infrastructure for trade finance and documentation is called BharatTradeNet.
• High-value perishable items (such as horticulture and seafood exports) should be the main focus of air cargo warehousing.
• Integration with International Supply Chains: Assistance for Electronics Manufacturing and Industry 4.0.
• Supporting IT and R&D hubs in Tier-2 cities is the goal of the National Framework for Global Capability Centres (GCCs).

Personal Taxes & Financial Reforms

• Income up to Rs. 12 lakh (₹12.75 lakh for salaried individuals) is tax-free.
• New Slabs for Income Tax: Rs. 0–4 lakh: Nothing, Rs. 4–8 lakh- 5 percent;  8–12 lakh rupees (10 percent); Rs. 12–16 lakh-  15 percent; 16–20 lakh rupees (20 percent); Rs. 20–24 lakh-  25 percent  and more than Rs. 24 lakh: 30 percent
• Greater Exemption for elderly people: The interest income threshold has been increased from Rs. 50,000 to Rs. 1 lakh.
• The threshold for the higher TDS exemption for rent was raised from Rs. 2.4 lakh to Rs. 6 lakh.
• Updated Return Filing Extended: Instead of two years, taxpayers now have four years to make corrections to their files.

Energy & Environment

• Nuclear Energy Expansion: With a Rs. 20,000 crore investment, a Nuclear Energy Mission would be established to conduct research and development on Small Modular Reactors (SMR). By 2033, at least five SMRs that were produced domestically will be operationalized.
• Green manufacturing: incentives for wind turbines, solar PV cells, EV batteries, and electrolyzes.
• Power Sector Reforms: States will receive an additional 0.5% of GSDP in borrowing to improve their electrical distribution systems.

Tourism & Cultural Development

• Buddhist circuits, spiritual locations, and historical sites are given special attention in the development of the Top 50 Tourist locations.
• PM SVANidhi Expansion: 68 lakh street vendors now have access to credit with a Rs. 30,000 UPI-linked credit limit.
• Medical tourism and the ‘Heal in India’ initiative: streamlined visa requirements and international collaborations.

Shipping & Maritime

• The Maritime Development Fund (Rs. 25,000 crore) finances port improvements and shipbuilding.
• The Shipbuilding Financial Assistance Policy has been updated to include shipbreaking credit notes.