The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman on February 1, 2025, outlines a comprehensive roadmap for India’s economic growth, social welfare, and global competitiveness. Key reforms focus on tax relief, infrastructure development, healthcare expansion, and sustainable energy initiatives.
Taxation Reforms
- Income Tax Exemption: No tax payable for incomes up to ₹12 lakh annually under the new regime[2][3][4].
- TDS Rationalization: Annual rent TDS threshold increased from ₹2.4 lakh to ₹6 lakh[2].
- Customs Duty Exemptions: 36 lifesaving drugs and 37 medicines added to the duty-free list[2].
- New Tax Bill: A simplified income-tax bill to be introduced next week[2][4].
Infrastructure & Energy
| Sector | Key Initiatives | Allocation/Target |
|---|---|---|
| Nuclear Energy | Private sector participation allowed; ₹20,000 crore for Small Modular Reactors | 100 GW nuclear capacity by 2047[4][5] |
| Urban Development | Urban Challenge Fund for city projects | ₹1 lakh crore fund[4] |
| Power Reforms | 0.5% additional GSDP borrowing for states implementing electricity reforms | Improved discom viability[4] |
Social Welfare & Healthcare
- Healthcare:
- Day Care Cancer Centres in all district hospitals within 3 years (200 in FY 2025-26)[2].
- 10,000 additional medical college seats[2].
- Education:
- 50,000 Atal Tinkering Labs in government schools[2][4].
- Bharatiya Bhasha Pustak Scheme for Indian-language digital textbooks[2].
Agriculture & Rural Development
- PM Dhan Dhanya Krishi Yojana: Targets 1.7 crore farmers across 100 low-productivity districts[3][4].
- Makhana Board: Established in Bihar to boost regional agro-economy[2].
MSMEs & Employment
- Credit Support: Credit Guarantee Scheme for startups increased to ₹20 crore[2].
- Job Creation:
- 22 lakh jobs in footwear/leather sector via Focus Product Scheme[2].
- Scheme to make India a global toy hub[2].
Fiscal Strategy
| Indicator | FY 2024-25 (RE) | FY 2025-26 (BE) |
|---|---|---|
| Fiscal Deficit (% of GDP) | 4.8% | 4.4%[2][5] |
| Capital Expenditure | ₹10.18 trillion | ₹11.2 trillion[5] |
| Total Expenditure | ₹47.16 trillion | ₹50.65 trillion[5] |
Global Investments & Exports
- FDI Liberalization: Insurance sector FDI limit raised to 100%[2][4].
- Export Incentives: Indirect tax measures to promote trade[2].
- Bilateral Treaties: Revamped investment treaties to attract foreign capital[4].
The budget balances fiscal prudence with growth-oriented reforms, emphasizing inclusive development through healthcare, education, and rural empowerment. Strategic investments in nuclear energy, urban infrastructure, and manufacturing aim to position India as a global economic leader while addressing immediate needs of the middle class and vulnerable sectors.
