Manashimaya
Union Finance Minister Nirmala Sitharaman presented the Budget 2025, outlining a roadmap for economic growth, middle-class empowerment, and sectoral reforms. Emphasizing trust in taxpayers, she urged Income Tax officials to “trust first, scrutinize later,” while announcing that a new Income Tax Bill will be introduced in Parliament next week.
Major Tax Reforms & Reliefs
A landmark announcement in this year’s budget was the exemption of income tax for individuals earning up to ₹12 lakh, providing significant relief to the middle class. This move aligns with the government’s continued focus on economic inclusivity and reducing the tax burden on salaried professionals.
Boost to Insurance, MSMEs, and Startups
The budget raised the Foreign Direct Investment (FDI) limit in the insurance sector from 74% to 100%, opening new opportunities for global investment. Recognizing the backbone role of MSMEs in India’s economy, Sitharaman introduced an enhanced credit guarantee scheme and proposed customized credit cards with a ₹5 lakh limit for micro-enterprises. The startup ecosystem also received a boost, with an additional ₹10,000 crore added to the startup fund, bringing the total to ₹20,000 crore.
Strengthening Agriculture & Rural Economy
With a vision for self-reliance in pulses, the government introduced a six-year initiative targeting crops like tur, urad, and masoor. To ensure stable procurement, Nafed and NCCF will oversee purchases for the next four years. The PM Dhan Dhyan Krishi Yojana was also launched to improve farming practices in 100 districts, benefiting nearly 100 crore farmers.
Advancing Education, Healthcare & AI
A significant push was given to education and healthcare, with plans to provide internet connectivity to all government schools and hospitals. Medical education saw a big leap, with 10,000 new seats in medical colleges next year and an additional 75,000 over the next five years. Technology and innovation also remained a priority, as Sitharaman announced a Centre for Excellence in AI for Education with an allocation of ₹500 crore.
Infrastructure, Connectivity & Logistics Overhaul
The government aims to transform India into a major logistics hub by leveraging 1.5 lakh rural post offices. The Udan Scheme, which enhances air connectivity to underserved regions, will be expanded to cover 120 more destinations. Additionally, a new 12.7 lakh-tonne urea plant will be set up in Assam to strengthen agricultural productivity.
Energy & Sustainable Growth
In a forward-looking move, the government launched the Nuclear Energy Mission to focus on small modular reactors, allocating ₹20,000 crore for research and development. This is expected to pave the way for clean and sustainable energy solutions.
Economic Outlook & Growth Projections
The Economic Survey 2024-25 projected India’s GDP growth between 6.3% to 6.8%, highlighting strong employment metrics and declining non-performing assets (NPAs) in the banking sector. The Survey also emphasized the need to reduce dependence on China and attract greater domestic and foreign investments.
President Murmu’s Address & India’s Growth Ambitions
President Droupadi Murmu underscored the government’s commitment to policies like One Nation, One Election and reforms in the Waqf board, asserting that the current administration is working at “thrice the speed” of previous governments. She highlighted the middle class as the backbone of the economy and emphasized the government’s focus on their aspirations.
A Budget for Viksit Bharat 2047
As India moves towards its ambitious goal of becoming a Viksit Bharat (Developed Nation) by 2047, Sitharaman reaffirmed the need for 8% annual growth, an investment-driven economy, and advancements in AI, robotics, and biotechnology. This budget marks the first full-year financial plan under the Modi government’s third term, setting the foundation for long-term prosperity.
With a strong vision for inclusive growth, Budget 2025 aims to strike a balance between economic expansion, social welfare, and sectoral reforms—paving the way for a resilient and prosperous India.
