Explore
Settings

Settings

×

Reading Mode

Adjust the reading mode to suit your reading needs.

Font Size

Fix the font size to suit your reading preferences

Language

Select the language of your choice. NewsX reports are available in 11 global languages.
we-woman
Advertisement · Scroll to continue
  • HOME»
  • India»
  • Budget 2025: Sector-Wise Announcements And Key Highlights Explained

Budget 2025: Sector-Wise Announcements And Key Highlights Explained

The budget includes significant reforms and allocations across various sectors, including agriculture, healthcare, defense, education, and renewable energy.

Advertisement · Scroll to continue
Budget 2025: Sector-Wise Announcements And Key Highlights Explained

FM Nirmala Sitharaman presented the much-anticipated Income Tax Bill 2025 in the Lok Sabha, aiming to simplify tax laws in India.


On February 1, 2025, Finance Minister Nirmala Sitharaman presented the Union Budget for 2025-26, marking her eighth consecutive year delivering the annual financial blueprint. The budget allocates substantial resources to critical sectors such as agriculture, healthcare, defense, education, and renewable energy, with a strong emphasis on boosting economic growth, creating job opportunities, and advancing self-reliance under the ‘Atmanirbhar Bharat’ initiative. Below are the sector-wise key announcements and reforms:

Advertisement · Scroll to continue

Agriculture & Rural Development: Focus On Productivity And Farmer Welfare

The government has committed ₹1.52 trillion to agricultural development, aiming to enhance productivity and address underemployment in the sector. Key measures include:

  • PM Dhan Dhanya Krishi Yojana: Targeting 100 districts with low productivity, this scheme aims to benefit 1.7 crore farmers through crop diversification, irrigation improvements, and better storage facilities.
  • Kisan Credit Card (KCC) Expansion: The loan limit under KCC has been increased to ₹5 lakh, providing greater financial access to farmers.
  • Self-reliance in Pulses: The government has set a target to achieve self-sufficiency in pulse production within six years.
  • Makhana Board for Bihar: A dedicated board will promote Makhana production and marketing in the region.
  • Cotton Farmers’ Support: A mission to improve yields and incomes for cotton farmers has been launched.

Healthcare: Strengthening Accessibility And Affordability

The healthcare sector receives an allocation of ₹98,311 crore, aimed at expanding medical infrastructure and care. Key initiatives include:

Advertisement · Scroll to continue

  • Ayushman Bharat Expansion: ₹4,200 crore has been allocated to enhance coverage for vulnerable populations under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PM-JAY).
  • Cancer Care Expansion: 200 daycare cancer centers will be established in district hospitals over the next three years.
  • Medical Education: 10,000 new medical seats are proposed for next year, with a target of 75,000 seats over the next five years.
  • Gig Workers’ Healthcare: Health insurance coverage under PM Jan Arogya Yojana will now extend to 10 million gig workers.

Defense: Modernization And Indigenous Development

India’s defense budget has been increased to ₹6.81 trillion, with a focus on modernizing capabilities and boosting domestic manufacturing. Key announcements include:

  • Self-Reliance in Defense: 75% of the capital budget will be allocated for domestic procurement, reinforcing the ‘Make in India’ initiative.
  • Research and Development: Increased funding for projects such as the Advanced Medium Combat Aircraft (AMCA) and Project P75(I) submarines.
  • Procurement Plans: Acquisition of six submarines under Project P75(I) to enhance naval capabilities.

Infrastructure: Boosting Connectivity And Sustainability

A significant ₹12 lakh crore has been allocated for infrastructure projects, focusing on roads, highways, railways, and airports. Other key initiatives include:

  • Maritime Sector Development: ₹25,000 crore will fund maritime projects, with extended customs duty exemptions for shipbuilding materials.
  • Greenfield Airports in Bihar: New airports will be developed to improve regional connectivity.
  • UDAN Scheme Expansion: The scheme will be modified to add 120 new destinations, enhancing domestic air connectivity.

Education: Expanding Access And Enhancing Skill Development

The education sector receives major investments aimed at fostering innovation and skill development. Key initiatives include:

  • AI Investment: ₹500 crore will be allocated to set up Centres of Excellence in Artificial Intelligence (AI).
  • Expansion of IITs and Medical Colleges: Additional seats at IITs and 75,000 new medical seats over five years.
  • Atal Tinkering Labs: 50,000 labs will be set up in government schools, focusing on hands-on learning and innovation.
  • Skill Development: The government will enhance quality education and ensure graduates are equipped with employable skills.

Tax Reforms: Simplification And Incentives

The government has introduced several key tax reforms to ease compliance and promote entrepreneurship:

  • Personal Income Tax Reforms: The government has increased the rebate limit under the new tax regime, offering significant benefits to middle-class taxpayers.
  • Startups & MSMEs: Extended benefits for startups and MSMEs, including a ₹10,000 crore fund of funds and term loans up to ₹20 crore for MSMEs.
  • Tax Deduction Rationalization: Reductions in compliance burdens, especially for small charitable trusts and the TCS for education remittance.
  • Capital Gains: The capital gains limit has been raised to ₹12.7 lakh, and the tax rate has been adjusted for higher incomes, providing relief for middle-class investors.

Renewable Energy & Sustainability

The Budget allocates ₹3 lakh crore for renewable energy projects, including solar, wind, and green hydrogen, aligning with India’s goal of achieving net-zero emissions by 2070. This is in addition to supporting sustainable urban development through a ₹1 lakh crore fund.

Fiscal Deficit

The government has projected a GDP growth rate of 7.2% for FY 2025-26 while maintaining a fiscal deficit target of 4.8%. Capital expenditure has been set at ₹10.18 lakh crore, with gross market borrowings at ₹14.82 lakh crore.

Budget 2025 aimed at driving inclusive growth, modernizing infrastructure, boosting self-reliance, and empowering citizens across various sectors. The focus on agriculture, healthcare, education, and defense reflects a strategic move towards enhancing India’s long-term resilience and global competitiveness. With significant allocations and reforms, the Budget seeks to create employment opportunities, reduce inequalities, and strengthen India’s position as a global leader in technology, defense, and sustainability.

ALSO READ: Budget 2025: FM Nirmala Sitharaman Adorns Madhubani Saree, Dulari Devi Says, ‘It Is The Essence Of Mithila’


Advertisement · Scroll to continue

mail logo

Subscribe to receive the day's headlines from NewsX straight in your inbox