“Union Budget 2025-26: Empowering Growth, Boosting Savings, & Driving Aatmanirbharta!”
Feb 1st, 2025 7:10 pm | By ThenewsmanofIndia.com | Category: LATEST NEWS
(THE NEWSMAN OF INDIA.COM) by Abul Hasan:
The Union Budget for 2025-26, presented by Finance Minister Nirmala Sitharaman, introduces transformative measures aimed at bolstering the Indian economy, with a pronounced focus on the middle class, agriculture, MSMEs, and technological innovation.
Tax Reforms Favoring the Middle Class
In a landmark move, the budget raises the income tax exemption threshold to ₹12.75 lakh per annum under the new tax regime, effectively exempting individuals with an average monthly income of up to ₹1 lakh from paying income tax. This initiative is designed to enhance household savings and stimulate consumption among middle-class families.
Recognizing the Four Pillars of Development
The budget identifies agriculture, MSMEs, investment, and exports as the four critical engines driving the nation’s development. By channeling resources and policy support into these sectors, the government aims to foster sustainable and inclusive economic growth.
Agricultural Advancements
To uplift the agricultural sector, the ‘Prime Minister Dhan-Dhaanya Krishi Yojana’ is set to cover 100 districts with low agricultural productivity, benefiting approximately 1.7 crore farmers. Additionally, the ‘Mission for Aatmanirbharta in Pulses’ will focus on increasing the production of pulses such as tur, urad, and masoor, reducing dependence on imports. Farmers will also have access to loans up to ₹5 lakhs through the Kisan Credit Card under a modified interest subvention scheme.
Fiscal Discipline and Economic Outlook
The government projects a fiscal deficit of 4.8% for FY-25, with a target to reduce it to 4.4% in FY-26. This disciplined approach underscores the administration’s commitment to maintaining economic stability while pursuing growth-oriented policies.
Empowering MSMEs and Promoting Manufacturing
The budget significantly enhances credit guarantees for MSMEs, increasing the cover from ₹5 crore to ₹10 crore. A National Manufacturing Mission encompassing small, medium, and large industries will further the ‘Make in India’ initiative, aiming to boost domestic production and exports.
Investing in Education and Technology
Over the next five years, 50,000 Atal Tinkering Labs will be established in government schools to foster innovation and creativity among students. A Centre of Excellence in Artificial Intelligence for Education, with a total outlay of ₹500 crore, will be set up to integrate advanced technologies into the educational framework.
Supporting Urban Development and Infrastructure
The ‘Cities as Growth Hubs’ initiative introduces a ₹1 lakh crore Urban Challenge Fund to stimulate urban development projects, enhancing infrastructure and quality of life in urban areas.
Advancements in Energy and Connectivity
A Nuclear Energy Mission with an outlay of ₹20,000 crore is dedicated to research and development of small modular reactors, aiming to diversify and strengthen the nation’s energy portfolio. The modified UDAN scheme will enhance regional connectivity by adding 120 new destinations, promoting balanced regional development.
Promoting Research, Innovation, and Cultural Heritage
An allocation of ₹20,000 crore is designated for private sector-driven research, development, and innovation initiatives, encouraging collaboration and technological advancements. The ‘Gyan Bharatam Mission’ will undertake the survey and conservation of over one crore manuscripts, preserving India’s rich cultural heritage.
Reforms in Foreign Direct Investment and Legal Framework
The Foreign Direct Investment (FDI) limit in the insurance sector is enhanced from 74% to 100%, attracting greater foreign investment. The Jan Vishwas Bill 2.0 aims to decriminalize more than 100 provisions in various laws, promoting ease of doing business and reducing legal complexities.
Tax Administration and Customs Duty Adjustments
The time limit for filing updated income tax returns is increased from two to four years, providing taxpayers with greater flexibility. Delays in Tax Collected at Source (TCS) payments are decriminalized, and the threshold for Tax Deducted at Source (TDS) on rent is increased from ₹2.4 lakh to ₹6 lakh. Basic Customs Duty (BCD) is exempted on 36 life-saving drugs and medicines for treating cancer, rare, and chronic diseases, making healthcare more affordable.
Encouraging Domestic Manufacturing and Sustainable Development
To promote domestic manufacturing, BCD on Integrated Flat Panel Displays (IFPD) is increased to 20%, while it is reduced to 5% on open cells. Additional capital goods for electric vehicle and mobile battery manufacturing are exempted from BCD, supporting sustainable development. A 10-year BCD exemption is granted on raw materials and components used for shipbuilding, fostering growth in the maritime industry.
The Union Budget 2025-26 reflects a comprehensive strategy to stimulate economic growth, enhance public welfare, and position India as a self-reliant and globally competitive nation.