Union Budget 2025: Important Announcement and Key Points

On February 1, Union Finance Minister Nirmala Sitharaman has announced her eight consecutive Union Budget for 2025-2026 year on February 1.

She presented the Union Budget 2025 by stating that, “Together, we embark on a journey to unlock our nation’s tremendous potential for greater prosperity and global positioning under the leadership of Hon’ble Prime Minister Shri Narendra Modi.”

She also added, “As we complete the first quarter of the 21^st century, continuing geopolitical headwinds suggest lower global economic growth over the medium term. However, our aspiration for a Viksit Bharat inspires us, and the transformative work we have done during our Government’s first two terms guides us, to march forward resolutely.”

She said that India economy is the fastest-growing among all the major global economies. The development of India has tracked a record of the past 10 years and structural reforms have drawn global attention, which increased confidence in potential. The next five years offer a great chance to achieve ‘Sabka Vikas’ by ensuring balanced growth across all regions.

Let’s took a looks on Key Points of Union Budget 2025

Personal Income- tax

No income tax payable upto income of ` 12 lakh (i.e. average income of ` 1 lakh per month other than special rate income such as capital gains) under the new regime.

After 2014, the ‘Nil tax’ slab was raised to ` 2.5 lakh, which was further raised to ` 5 lakh in 2019 and to ` 7 lakh in 2023. This year it has raised to 12 Lakh.

Tax rates are being revised to benefit all taxpayers. The new system will lower taxes for the middle class, giving them more money to spend, save, and invest.

The New Tax regime

Tax deduction limit for senior citizens doubled from ₹ 50,000 to ₹ 1 lakh.

The annual limit of ₹2.40 lakh for TDS on rent increased to ₹ 6 lakh.

The threshold to collect tax at source (TCS) on remittances under RBI’s Liberalized Remittance Scheme (LRS) proposed to increased from 7 lakh to 10 lakh.

Scheme for First-time Entrepreneurs

A new scheme will launch to support 5 lakh women, Scheduled Castes, and Scheduled Tribes first-time entrepreneurs with term loans of up to ₹2 crore over the next five years, drawing insights from the successful Stand-Up India scheme.

Online training programs will be conduct to develop entrepreneurship and managerial skills.

Agriculture

The government will launch the ‘Prime Minister Dhan-Dhaanya Krishi Yojana’ with states to boost farming in 100 low-productivity districts. By merging existing schemes and adding special measures, it aims to improve crop yields, promote sustainable farming, enhance storage, upgrade irrigation, and increase credit access. The program expected to benefit 1.7 crore farmers.

Mission for Aatmanirbharta in Pulses

Our Government will now launch a 6-year “Mission for Aatmanirbharta in Pulses” with a special focus on Tur, Urad and Masoor. 

Government is implementing the National Mission for Edible Oilseed for achieving atmanirbhrata in edible oils. Our farmers have the capability to grow enough for our needs and more.

Kisan Credit Cards

(KCC) Kisan Credit Cards provide short-term loans to 7.7 crore farmers, fishermen, and dairy farmers. Under the Modified Interest Subvention Scheme, the loan limit will increase from ₹3 lakh to ₹5 lakh for loans taken through KCC.

MSMEs

Over 1 crore registered MSMEs, employing 7.5 crore people and contributing 36% of India’s manufacturing, are driving the country’s position as a global manufacturing hub. These MSMEs also account for 45% of exports. To boost their growth, the investment and turnover limits for MSME classification will increase, helping them scale, upgrade technology, and access more capital, while creating jobs for the youth.

Education

Broadband connectivity to be provided to all government secondary schools and primary health centres in rural areas.

Expansion of medical education: 10,000 additional seats with the goal of adding 75,000 seats in the next 5 years.

Additional 5 IITs will started after 2014 to facilitate education for 6,500 more students.

Financial Reforms

The FDI limit for the insurance sector will be increase from 74% to 100%, applicable to companies that invest the entire premium in India.

Rules and conditions for foreign investment will review and simplified.

A revamped Central KYC Registry will be launched in 2025 to simplify the KYC process.

A streamlined system will be introduce for periodic KYC updates.

Medicines

36 lifesaving drugs will be fully exempt from Basic Customs Duty (BCD) to help patients with cancer, rare diseases, and severe chronic illnesses.

6 additional lifesaving medicines will have a reduced customs duty of 5%.

Full exemption and concessional duty will also apply to bulk drugs used to manufacture these medicines.

Medicines provided under Patient Assistance Programmes by pharmaceutical companies are fully exempt from BCD if given free to patients.

37 more medicines and 13 new Patient Assistance Programmes will be add to this exemption list.

The government will set up Day Care Cancer Centres in all district hospitals within the next three years, with 200 centres opening in 2025-26.

Boosting Regional Air Connectivity and Accessibility

The UDAN scheme has helped 1.5 crore middle-class travelers by improving air connectivity, linking 88 airports, and opening 619 routes.

A new version of UDAN will expand regional air travel to 120 new destinations and serve 4 crore passengers over the next 10 years.

The scheme will also develop helipads and small airports in hilly areas, aspirational districts, and the Northeast region.

Greenfield airports will be facilitated in Bihar to meet the future needs of the State.

Developed Tourist

The top 50 tourist destinations in the country will be developed in partnership with states through a competitive process. States must provide land for essential infrastructure, and hotels in these locations will be included in the infrastructure HML.