The Union Budget 2025 presented by Finance Minister Nirmala Sitharaman has brought forth several significant changes across various sectors of the economy. Here are 10 key moments that stood out:
1. Tax Slabs Revised
The government has revised the income tax slabs, making it more taxpayer-friendly. Here’s a breakdown:
- 0 – 4 Lakh: Nil
- 4 – 8 Lakh: 5%
- 8 – 12 Lakh: 10%
- 12 – 16 Lakh: 15%
- 16 – 20 Lakh: 20%
- 20 – 24 Lakh: 25%
- Above 24 Lakh: 30%
This revision aims to bring more relief to middle-class taxpayers while simplifying the tax structure.
2. Shipbuilding and Maritime Development
A major boost has been provided to the shipbuilding sector with the establishment of a Maritime Development Fund with a corpus of ₹25,000 crore. The government will contribute 49% to this fund. This initiative is expected to stimulate growth in the maritime sector, including the construction of large ships, which will also enhance employment opportunities.
3. Support for Bihar’s Food Processing and Makhana Production
The budget focuses on boosting Bihar’s agricultural sector with key initiatives:
- Kisan Credit Cards (KCC): Loan limits under the KCC scheme have been increased from ₹3 lakh to ₹5 lakh, benefiting farmers, fishermen, and dairy farmers.
- Makhana Board: A special Makhana Board will be established in Bihar to improve production, processing, and marketing, helping local farmers and increasing export potential.
- Prime Minister Dhan Dhanya Krishi Yojna: A new initiative to boost agricultural productivity, sustainable practices, and infrastructure development in 100 underperforming districts.
4. Nuclear Energy Mission
A Nuclear Energy Mission with an outlay of ₹20,000 crore has been proposed to develop small modular reactors (SMRs). The plan is to operationalize at least five indigenously developed SMRs by 2033, contributing significantly to India’s energy transition efforts and its aim to reach 100 gigawatts of nuclear energy by 2047.
5. Leather, Footwear, and Toy Sector Development
The budget has outlined plans to support the leather and footwear sectors through a focused scheme, as well as initiatives to turn India into a global hub for toy manufacturing. Investment in clean technologies and manufacturing will also be promoted to strengthen these sectors.
6. MSMEs: Increased Investment and Support
The budget has placed a strong emphasis on Micro, Small, and Medium Enterprises (MSMEs), considering them a second engine for economic growth:
- Credit Guarantee Cover: The limit has been raised, providing access to additional credit.
- Credit Cards for Micro Enterprises: Customized credit cards with a limit of ₹5 lakh will be issued to micro-enterprises, encouraging entrepreneurship.
7. Agricultural Support for Farmers: KCC
In line with the government’s focus on Kisan Credit Cards, short-term loans will be facilitated for 7.74 crore farmers, including fishermen and dairy farmers. The loan limit for the modified interest subvention scheme will be increased from ₹3 lakh to ₹5 lakh to ease financial challenges in the agricultural sector.
8. AI Centres of Excellence and IIT Infrastructure Expansion
The government has earmarked ₹500 crore to set up Centres of Excellence in AI for education. Additionally, infrastructure in five IITs established post-2014 will be expanded to accommodate 6,500 more students, ensuring the next generation of skilled professionals in technology.
9. Enhanced Infrastructure for IITs
In an effort to improve India’s higher education ecosystem, additional infrastructure will be developed in five IITs set up after 2014. Hostel and other infrastructure at IIT Patna will also be expanded to facilitate better educational facilities for students.
10. Customs Duty Reductions
The government has made several strategic moves to reduce the Basic Customs Duty (BCD), including:
- 36 drugs for cancer and rare diseases will be exempt from BCD, easing the financial burden on patients.
- 37 more medicines will also be exempt from BCD.
- Exemption on BCD for raw materials used in shipbuilding has been extended for another 10 years.
- A reduction in BCD from 30% to 5% on fish pasteurii.
- The wet blue leather used in manufacturing will also be fully exempt from BCD.
This will reduce costs for consumers, boost domestic manufacturing, and promote exports.
