"Union Budget 2025: Key Highlights, Tax Reforms, and Growth Initiatives"

The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman on February 1, 2025, outlines a comprehensive strategy aimed at stimulating economic growth, providing tax relief, and bolstering key sectors. Below are the key highlights of the budget:

1. Tax Reforms and Relief Measures

Increased Tax Exemption Limit: Individuals earning up to ₹12 lakh annually are now exempt from paying income tax under the new tax regime.
Revised Tax Brackets: The tax slabs have been restructured to benefit those earning between ₹12 lakh and ₹24 lakh per year.
Higher Standard Deduction: The standard deduction limit has been increased, providing additional relief to salaried employees and pensioners.

2. Focus on Infrastructure Development

Increased Capital Expenditure: The government has increased capital expenditure by 10.1% for FY26, emphasizing long-term economic growth through infrastructure projects.

3. Support for Startups and MSMEs

Tax Incentives and Financial Support: The budget introduces tax incentives and financial support for startups and Micro, Small, and Medium Enterprises (MSMEs) to encourage entrepreneurship and job creation.

4. Agricultural Initiatives

Prime Minister Dhan-Dhaanya Krishi Yojana: A new scheme aimed at enhancing agricultural productivity and farmer welfare.
Enhanced Credit through Kisan Credit Card (KCC): The government plans to facilitate short-term loans for 7.7 crore farmers, fishermen, and dairy farmers with an enhanced loan limit of ₹5 lakh.
Developing Self-Reliance in Pulses: A six-year mission focusing on pulses like Tur, Urad, and Masoor to achieve self-sufficiency.

5. Science and Innovation

Research, Development & Innovation: An allocation of ₹20,000 crore has been made to implement a private sector-driven research, development, and innovation initiative.
PM Research Fellowship: The government will provide 10,000 fellowships for technological research in IITs and IISc.

6. Export Promotion

Incentivizing Electronics and Electric Vehicles (EVs): Exemptions will be granted for open cells used in LED/LCD TVs, looms for textiles, and capital goods for lithium-ion batteries used in mobile phones and electric vehicles.
Promotion of Maintenance, Repair, and Overhaul (MRO): A 10-year exemption will be granted on goods used for shipbuilding and ships meant for breaking. Additionally, the time limit for the export of railway goods imported for repairs will be extended.

7. Education and Skilling

Investment in Human Capital: The budget emphasizes education and skilling as key areas of investment, recognizing the transformative potential of human capital in India.

The Union Budget 2025-26 reflects the government’s commitment to fostering economic growth, supporting key sectors, and providing relief to taxpayers, thereby laying a robust foundation for India’s future development.