Before meeting President Droupadi Murmu, Finance Minister Nirmala Sitharaman was seen outside the North Block office along with her officials. She donned a cream-colored saree and carried a tablet instead of a traditional briefcase to present the budget in a digital format.
Overview
On Saturday, Finance Minister Nirmala Sitharaman presented her eighth consecutive budget using a digital tablet wrapped in a traditional ‘bahi-khata’ style pouch. She emphasized that the budget aims to accelerate growth, promote inclusive development, boost private sector investment, strengthen domestic sentiments, and enhance the spending power of the middle class.
Key Announcements
Agriculture – ‘Pradhan Mantri Dhan-Dhanya Yojana’
The Finance Minister announced the ‘Pradhan Mantri Dhan-Dhanya Yojana’ for farmers. Under this initiative, 100 districts with low agricultural productivity will be selected to improve productivity, introduce crop diversity, enhance irrigation facilities, and strengthen post-harvest storage capabilities. This scheme is expected to benefit 1.7 crore farmers, covering all categories of farmers and encouraging modern agricultural practices. Additionally, the credit limit for the Kisan Credit Card has been increased to ₹5 lakh.
- Self-Sufficiency in Pulses: A six-year mission will focus on increasing domestic production of pulses to achieve self-sufficiency. Agencies like NAFED and NCCF will procure three types of pulses from registered farmers.
- Fruits, Vegetables, and Nutrition: A joint initiative with states will be launched to boost the demand for ‘Shree Anna’ (millets) and fruits.
- Makhana Board in Bihar: A dedicated Makhana Board will be set up in Bihar to support production and processing.
- New National Food Technology Institute in Bihar: This will enhance food processing capabilities in the eastern region of India.
MSME Sector Boost
The MSME sector, which comprises over 1 crore enterprises and employs 5.7 crore people, plays a crucial role in making India a global manufacturing hub. These enterprises contribute 45% of exports. The budget includes measures to strengthen MSMEs:
- Credit Guarantee Cover Expansion: Increased credit cover for MSMEs.
- Investment Classification Limit Increase: The investment classification limit for MSMEs has been raised by 2.5 times, and turnover classification limits have been doubled.
- Customized Credit for Micro Enterprises: A special credit scheme with a ₹5 lakh limit will be launched, initially covering 10 lakh businesses.
- Term Loans for First-Time Entrepreneurs: Loans of up to ₹2 crore will be provided to first-time entrepreneurs, especially benefiting five lakh women and SC/ST entrepreneurs.
Budget 2025-26: Five Key Focus Areas
- Accelerating Economic Growth
- Inclusive Development
- Boosting Private Sector Investment
- Strengthening Domestic Sentiments
- Enhancing Middle-Class Spending Power
Industrial Growth Initiatives
Footwear and Leather Industry
A Focused Product Scheme will be launched to boost the footwear and leather industries, creating 22 lakh jobs. India aims to become a global hub for toy manufacturing through a National Manufacturing Mission, focusing on clean technology manufacturing.
Women Entrepreneurs
A new scheme will offer ₹2 crore term loans for SC/ST women entrepreneurs over the next five years.
Innovation in Schools
- Atal Tinkering Labs: 50,000 innovation labs will be established in government schools.
- Indian Language Book Promotion: A new initiative will promote education in Indian languages.
Skill Development
- Five National Excellence Institutes: These will support the ‘Make for India, Make for the World’ initiative.
- IIT Expansion: IIT Patna’s infrastructure will be expanded, and the intake capacity of IITs will increase from 65,000 to 1.3 lakh students.
- AI and Medical Education: AI-focused excellence centers and 10,000 additional seats in medical colleges.
- Cancer Care Centers: 200 daycare cancer centers to be established in district hospitals.
Startups and Gig Economy
- ₹10,000 Crore Fund for Startups: A new round of ‘Fund of Funds’ will support startup innovation.
- Gig Worker Welfare: The government will provide ID cards and e-Shram cards to one crore gig workers.
Transportation and Infrastructure
- Revamped UDAN Scheme: 120 new destinations will be connected, adding 4 crore new passengers over the next decade.
- Greenfield Airports in Bihar: The government will develop new airports in Bihar.
- Western Kosi Canal Project: A major irrigation initiative benefiting 50,000 hectares in Bihar.
Urban Development
- ₹1 Lakh Crore Urban Challenge Fund: The government will finance up to 25% of bankable projects.
- ₹10,000 Crore Allocation for 2025-26: To support urban redevelopment and development hubs.
Tax Reforms
- No Tax on Income up to ₹12 Lakh: This will result in ₹80,000 in savings.
- Revised Tax Slabs:
| Income Slab (₹) | Tax Rate (%) |
|---|---|
| Up to 4,00,000 | 0% |
| 4,00,001 – 8,00,000 | 5% |
| 8,00,001 – 12,00,000 | 10% |
| 12,00,001 – 16,00,000 | 15% |
| 16,00,001 – 20,00,000 | 20% |
| 20,00,001 – 24,00,000 | 25% |
| Above 24,00,000 | 30% |
- Higher Tax Exemption for Senior Citizens: The exemption limit has been doubled from ₹50,000 to ₹1 lakh.
- New Income Tax Bill: A simplified bill focusing on ‘Trust First, Verify Later’ will be presented next week.
Insurance and Healthcare
- 100% FDI in Insurance: Increased from 74% to 100%.
- Zero Customs Duty on 36 Life-Saving Drugs: Including cancer treatment drugs.
Affordable Housing
- New SWAMIH Fund-2: ₹15,000 crore allocated to complete one lakh stalled housing units.
Clean Energy and Environment
- ₹20,000 Crore for Nuclear Energy Mission: Focus on small modular reactors for energy transition.
- Increased Green Budget: ₹3,412 crore for the environment ministry, a 9% hike.
- Expanded ‘Green India Mission’: ₹220 crore allocated for afforestation.
- Tripled Biodiversity Conservation Budget: From ₹3.5 crore to ₹10 crore.
- Increased Funding for ‘Project Tiger’ and ‘Project Elephant’: From ₹245 crore to ₹290 crore.
Maritime and Shipping Industry
- Customs Duty Exemption for Shipbuilding Extended by 10 Years.
- Increased Import Duty on Interactive Flat Panel Displays to 20%.
- New Handicraft Export Promotion Scheme.
The Budget 2025-26 outlines a comprehensive roadmap for economic growth, employment generation, and strengthening India’s global positioning. It balances social welfare with industrial growth, ensuring a promising future for citizens across all sectors.
