Namaskar America

New Delhi, February 1, 2025 – Finance Minister Nirmala Sitharaman presented India’s Union Budget for 2025-26, outlining an ambitious roadmap aimed at propelling the country toward becoming a ‘Viksit Bharat’ (Developed India). The budget emphasizes inclusive growth, focusing on the needs of the poor, youth, farmers, and women, and proposes strategic initiatives across key sectors to boost economic growth.

Key Highlights of the 2025-26 Budget:

1. Four Engines of Growth

The budget identifies four key engines for India’s development:

Agriculture: Boosting productivity and rural prosperity.
MSMEs: Supporting small businesses as the backbone of the economy.
Investment: Fostering infrastructure development and innovation.
Exports: Enhancing export capabilities and global integration.

These engines are powered by strategic reforms aimed at inclusivity and long-term growth.

2. Agriculture Initiatives

Prime Minister Dhan-Dhaanya Krishi Yojana: A new scheme targeting 100 districts to enhance crop diversification, irrigation, and post-harvest storage, benefitting 1.7 crore farmers.
Mission for Aatmanirbharta in Pulses: Focus on pulses like Tur, Urad, and Masoor to reduce imports.
Additional programs for vegetables, fruits, and cotton productivity will support farmers across India.

3. MSMEs Support

Increased investment limits for MSMEs to promote scale and access to capital.
Credit guarantee cover for small enterprises is enhanced, with new schemes for women entrepreneurs and first-time MSMEs.
Fund of Funds: ₹10,000 crore allocated for startup funding, along with incentives for the footwear, leather, and toy sectors.

4. Investment in People

Saksham Anganwadi and Poshan 2.0: Continued focus on nutritional support for children and mothers.
50,000 Atal Tinkering Labs: To be set up in schools to encourage innovation.
Expansion of broadband connectivity to rural government schools and health centers.
Additional medical seats and infrastructure for IITs and other educational institutions.

5. Economic Investments

Interest-free loans for states: ₹1.5 lakh crore allocated to encourage state-level capital expenditure.
Nuclear Energy Mission: ₹20,000 crore for Small Modular Reactors (SMR) development.
Jal Jeevan Mission: Extension to 2028 for rural water infrastructure improvements.
Urban infrastructure: ₹1 lakh crore for developing cities as growth hubs and promoting tourism.

6. Innovation & Research

₹20,000 crore allocated for private sector-driven R&D.
Deep Tech Fund of Funds and a National Geospatial Mission to push technological innovation.
Gyan Bharatam Mission to preserve and document over 1 crore manuscripts.

7. Exports and Trade

Export Promotion Mission: To provide MSMEs with credit support and streamline trade.
BharatTradeNet: A new digital platform to enhance India’s international trade.
Special focus on upgrading air cargo infrastructure to boost export efficiency.

8. Tax Reforms and Fiscal Policy

Direct Taxes: New tax slabs reduce the burden on the middle class, with no tax up to ₹12 lakh for most taxpayers.
Indirect Taxes: Rationalization of customs duties, with exemptions on critical medicines and minerals.Revised Income Tax Slabs:
- 0-4 lakh: Nil
- 4-8 lakh: 5%
- 8-12 lakh: 10%
- 12-16 lakh: 15%
- 16-20 lakh: 20%
- 20-24 lakh: 25%
- Above 24 lakh: 30%

9. Impact and Future Outlook

This budget seeks to boost economic growth, social welfare, and job creation, focusing on reforms that will enable India to become a global leader by 2047. With increased investment in infrastructure, education, innovation, and agriculture, the government is laying the groundwork for a ‘Viksit Bharat’—a prosperous and developed India.