Union Finance Minister Nirmala Sitharaman presented India’s Union Budget 2025-26. This budget is focused on accelerating the economy, giving relief to the middle class and maintaining financial discipline. In this news we will see how this budget will affect your taxes, business and the country’s economy.
Budget 2025 Key Highlights
The budget focuses on five major sectors:
- Tax relief for the middle class
- Strengthening agriculture and rural development
- Support to manufacturing and export sectors
- Infrastructure and digital reforms
- Reducing fiscal deficit and bringing economic stability
All this is linked to the goal of making India a $5 trillion economy.
Income Tax Reforms: Big relief for the common man
This time the budget has made changes in the income tax slab, which is useful for salaried professionals and small businesses.
New Income Tax Slabs:
- There will be no tax on income up to ₹12.8 lakh.
- Tax rates have also been reduced for higher income classes.
- Corporate tax is unchanged, but tax exemption for startups has been increased by 3 more years.
Its meaning:
This change will put more money in the hands of middle-class people, which will help in increasing consumption and demand.
Fiscal Deficit and Government Borrowing
The government has set a target of reducing fiscal deficit to 4.4%, which was 4.8% last year. For this, the government will take a loan of ₹14.82 lakh crore, but will also try to improve government expenditure.
Main Finance Policies:
- Rationalizing subsidies, but taking care of the poor.
- Increasing investment in infrastructure and capital expenditure.
- Encouraging private sector investment.
All this together will help in moving the economy forward rapidly.
Infrastructure and Industrial Growth
The government has kept a budget of ₹11.11 lakh crore on infrastructure development, which will be used in new highways, metro, bullet train and smart city development.
Major announcements:
- Target to completely electrify Indian Railways by 2030.
- New funds for development of rural roads and highways.
- Expansion of renewable energy and EV charging infrastructure.
Its result:
Infrastructure growth will increase employment, manufacturing sector will benefit and new foreign investments will come.
Agriculture and Rural Development
New steps have been taken in the budget to strengthen farmers and rural development.
Major announcements for farmers:
- MSP (Minimum Support Price) has been increased for major crops.
- ₹1.5 lakh crore rural development package.
- Farm credit limit has been increased so that farmers can get cheap loans.
- Support to AgriTech and AI-based farming solutions.
Its impact:
Farmers’ income will increase, crop yield will improve, and India’s Agri-export market will be strengthened.
Support to MSME and Startups
New reforms have been brought for the MSME sector, which will be beneficial for small and medium concerns.
Main incentives:
- Tax exemption for startups has been increased for 3 more years.
- Government loan guarantee scheme will provide cheap loans to MSMEs.
- Incentives to green startups and sustainable businesses.
Its effect:
MSMEs and startups will be able to grow faster, new jobs will be created, and innovation will get a boost.
Digital India and Technology Investment
The government has focused on new technologies like AI, blockchain and cybersecurity.
Major announcements:
₹800 billion has been allocated for Digital India.
- Development of 5G and 6G network infrastructure.
- AI-based government services which will reduce corruption.
Its meaning:
Digital revolution will bring new jobs, government services will be faster and new sectors like fintech, AI will grow.
Foreign Investment and Export Policy
India has taken new steps to promote FDI and export.
Major Announcements:
- FDI cap of insurance sector has been increased from 74% to 100%.
- New trade agreements to increase exports.
- PLI scheme has been extended to semiconductor and pharma sectors.
Its meaning:
With increase in foreign investment, both Indian industries and jobs will grow.
Employment and Social Welfare Schemes
The government has brought new budget reforms for employment and social welfare.
Major announcements:
- A budget of ₹860 billion has been kept for MGNREGA (Mahatma Gandhi National Rural Employment Guarantee Act).
- New skill development programs for youth.
- Financial inclusion and entrepreneurship support for women.
- Budget has been increased for health and AI-based diagnostics.
Which means:
All these reforms will increase employment possibilities and will give opportunities to the poor and middle-class to improve.
Future of Economy: GDP Growth Projections
According to the Economic Survey, India’s GDP growth can remain between 6.3% – 6.8% in 2025-26.
Key Growth Drivers:
- Tax cuts will increase domestic demand.
- Infrastructure and manufacturing sectors will grow rapidly.
- Foreign investment and startups will bring new opportunities.
Potential Risks:
- Foreign markets and geopolitical tensions.
- Fluctuations in oil and global commodity prices.
But India is moving ahead in the direction of becoming the world’s fastest-growing economy.
https://www.indiabudget.gov.in
Conclusion:
India Budget 2025 focuses on inclusive growth, economic discipline and global competitiveness. Tax relief, infrastructure and new reforms will strengthen the country’s economy, create new jobs and improve business.
This budget is another big step towards making India a new global economic leader.
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