The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, blends tax relief, growth spending, and welfare measures. It revises income tax slabs, allocates ₹11.7 lakh crore for infrastructure, ₹2.85 lakh crore for rural growth, and ₹3.5 lakh crore for women’s empowerment. With a focus on jobs, MSMEs, digital innovation, and sustainability, the budget targets 7.2% GDP growth while keeping inflation near 4%.
Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26 on February 1, 2025, making history with her eighth consecutive budget presentation. This landmark moment highlights the government’s consistent vision for economic growth, fiscal stability, and inclusive development.
The Union Budget 2025 builds upon India’s long-term roadmap of “Viksit Bharat by 2047,” focusing on job creation, middle-class tax relief, infrastructure growth, rural empowerment, women-led initiatives, and digital innovation. With global uncertainties around, India’s budget provides a clear, confident, and growth-oriented direction.
To provide relief to the middle class and simplify taxation:
Standard deduction benefits continue, helping salaried individuals and pensioners save more.
This reform encourages higher consumption, savings, and investment, giving a direct boost to India’s domestic economy.
Long-Term Capital Gains (LTCG)
The holding period for equities & equity-oriented mutual funds extended to two years (previously one year).
The LTCG tax rate increased to 15% (from 10%) for gains above ₹1 lakh.
This move encourages long-term investing, financial discipline, and market stability, while generating higher government revenue.
Employment & Skilling Initiatives
5 major schemes covering 4.5 crore youth over five years.
Nationwide internship program for 1 crore graduates in leading corporations.
Wage support of one month for first-time employees to encourage fresh hiring.
Special women-focused skilling programs to boost female participation in the workforce and entrepreneurship.
Dedicated push for AI, green jobs, the EV sector, and digital economy skill development.
New credit guarantee scheme for MSMEs to improve liquidity.
Term loan support for machinery & technology adoption.
Establishment of 24 new SIDBI branches in MSME-dense regions.
Technology support package to modernize small industries.
Emphasis on the “Make in India + Export India” strategy, strengthening both domestic and international trade.
Infrastructure & Capex Spending
Capital expenditure (Capex): ₹11.7 lakh crore (3.5% of GDP).
Focus on highways, airports, ports, railways, and housing projects.
Special allocations for Bihar, Andhra Pradesh, and the Northeastern states to balance regional development.
Push for smart cities, green mobility, and digital infrastructure.
Agriculture & Rural Development
Allocation of ₹2.85 lakh crore for rural development and agriculture.
Promotion of climate-resilient crops, irrigation efficiency, and organic farming.
Training 1.2 crore farmers in sustainable farming practices.
Development of agri-tech hubs, rural logistics, and storage facilities to reduce wastage.
Special support for dairy, fisheries, and food processing industries.
Women-Led Development
₹3.5 lakh crore allocation for women’s empowerment programs.
Expansion of Self-Help Groups (SHGs) with digital and financial access.
Special maternity, nutrition, and healthcare schemes for rural and tribal women.
New incentives for women entrepreneurs in start-ups and MSMEs.
Financial & Social Welfare
Mudra loan limit raised from ₹20 lakh to ₹25 lakh to support micro-businesses.
Higher education loans up to ₹15 lakh with government interest support.
Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) was extended for 5 years, ensuring free food grains for 80 crore citizens.
New pension reforms for the gig economy and unorganized workers.
Digital Public Infrastructure (DPI) expansion in e-commerce, governance, health-tech, and legal-tech.
Push for AI innovation hubs, semiconductor manufacturing, and green-tech start-ups.
Strengthened cybersecurity and data protection laws for digital safety.
Focus on India as a global digital economy leader.
Agriculture & Rural Prosperity – Sustainable farming, irrigation, and agritech adoption.
Employment Creation—Large-scale skilling, internships, and start-up support.
Inclusive Development—Women, youth, and marginalized communities in mainstream growth.
Manufacturing & MSMEs – Credit schemes, tech adoption, export competitiveness.
Urban Development—Affordable housing, public transport, smart cities.
Energy Security—Solar, EVs, renewables, and green hydrogen.
Infrastructure Growth—Capex-led growth across transport, housing, logistics.
Research & Innovation – AI, biotech, digital, and green innovation.
Next-Gen Reforms—Simplified taxation, ease of doing business, governance digitization.
GDP Growth Target: 7.2% for FY 2025-26.
Inflation: Expected to align with RBI’s 4% target.
Exports: Stronger momentum with incentives for manufacturing and global supply chain integration.
Job Creation: High across infrastructure, services, MSME, and tech industries.
India’s Global Position: Continues as the fastest-growing major economy, a shining exception amid global slowdown.
Q1: What are the revised income tax slabs in Budget 2025?
A: Income up to ₹3 lakh is tax-free; ₹3–7 lakh is taxed at 5%; ₹7–10 lakh at 10%; ₹10–12 lakh at 15%; ₹12–15 lakh at 20%; and above ₹15 lakh at 30%.
Q2: How does Budget 2025 support MSMEs?
A: Through credit guarantee schemes, higher Mudra loan limits, tech support, and SIDBI expansion across MSME clusters.
Q3: What is the LTCG tax change in the Union Budget 2025?
A: The holding period extended to 2 years, and tax increased to 15% on gains above ₹1 lakh.
Q4: How much has been allocated for agriculture in Budget 2025?
A: ₹2.85 lakh crore has been earmarked for rural and agricultural development, with emphasis on organic farming, irrigation, and agri-tech adoption.
Q5: What is the capital expenditure (Capex) outlay in Budget 2025?
A: The government has allocated ₹11.7 lakh crore (3.5% of GDP) to strengthen infrastructure, transport, housing, and connectivity.
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