India Budget 2025: A Roadmap for Growth and Inclusion

On February 1, 2025, Finance Minister Nirmala Sitharaman presented India's Union Budget for the fiscal year 2025-26, outlining a comprehensive framework aimed at boosting economic growth, enhancing social welfare, and driving technological innovation. The budget, which marks Sitharaman's eighth consecutive presentation, comes amidst global economic uncertainties and domestic challenges such as inflation and unemployment.

Key Highlights:

1. Tax Reforms and Middle-Class Relief:

• The budget introduces significant tax cuts, with no income tax for earnings up to ₹12 lakh. New tax slabs propose a 5% tax on ₹4-8 lakh, 10% on ₹8-12 lakh, and varying rates up to 30% for higher incomes. These measures aim to increase the disposable income of the middle class, encouraging consumer spending.

2. Agriculture and Rural Development:

• A new "Dhan-Dhaanya Krishi Yojana" targets 100 districts to boost agricultural productivity. The Kisan Credit Card loan limit has been raised to ₹5 lakh to facilitate easier credit access for farmers.

3. Healthcare and Education:

• The budget allocates record investments in healthcare, including the expansion of medical colleges and the establishment of Day Care Cancer Centres in district hospitals. In education, 50,000 Atal Tinkering Labs are set to be launched to promote STEM learning in government schools.

4. Infrastructure and Urban Development:

• A ₹1 lakh crore Urban Challenge Fund is announced to revitalize cities as growth hubs. Additionally, the government plans to enhance regional air connectivity to 120 new destinations over the next decade.

5. Technology and Innovation:

• The budget announces a Deep Tech Fund of ₹10,000 crore to support startups in AI and biotech. A new Centre of Excellence in AI for Education is also planned to foster research and innovation.

6. Environmental Initiatives:

• The government commits to expanding nuclear energy capacity to 100 GW by 2047 and promotes green manufacturing, offering incentives for solar and EV battery production.

7. Social Security and Gig Economy:

• Social security measures have been extended to gig workers, including healthcare under the PM Jan Arogya Yojana.

8. Defense and Security:

• Continuing the modernization of armed forces, the budget emphasizes investments in AI-driven defense technologies and cybersecurity.

The Union Budget 2025-26 reflects a balanced approach to stimulating economic growth while addressing social welfare needs. By prioritizing infrastructure development, technological advancement, and inclusive policies, the government aims to position India as a leading global economy over the coming years.