Union Budget 2025: All Sector Wise Announcements

Major Tax Reforms to Boost Middle-Class Savings

In a landmark move aimed at bolstering middle-class savings and consumption, Finance Minister Nirmala Sitharaman announced zero income tax on an average monthly income of up to ₹1 lakh, effectively benefiting millions of salaried individuals. Furthermore, under the new tax regime, annual income up to ₹12.75 lakh will now be tax-free, significantly reducing the financial burden on taxpayers.

Additionally, the time limit for filing updated income tax returns has been extended from two to four years, providing greater flexibility to taxpayers. To simplify tax compliance, delays in Tax Collected at Source (TCS) payments have been decriminalized, while the threshold for TDS on rent has been increased from ₹2.4 lakh to ₹6 lakh.

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

Agriculture and Rural Development: New Schemes to Boost Productivity

The government has rolled out the ‘Prime Minister Dhan-Dhaanya Krishi Yojana’, aimed at covering 100 low agricultural productivity districts to enhance farm output and irrigation infrastructure. A ‘Mission for Aatmanirbharta in Pulses’ will focus on crops like Tur, Urad, and Masoor, ensuring stable procurement for farmers over the next four years.

To empower farmers further, the loan limit under the Kisan Credit Card (KCC) has been raised from ₹3 lakh to ₹5 lakh under a modified interest subvention scheme.

MSMEs Get a Boost: Higher Credit Availability and New Manufacturing Mission

Recognizing MSMEs as a crucial driver of the Indian economy, the government has enhanced credit guarantee cover from ₹5 crore to ₹10 crore to facilitate greater financial access for small businesses. Investment and turnover limits for MSME classification have been raised by 2.5 times and 2 times, respectively, allowing more enterprises to benefit from government incentives.

Additionally, a National Manufacturing Mission covering small, medium, and large industries will be launched to strengthen ‘Make in India’ initiatives and boost exports.

Infrastructure, AI, and Gig Economy: Strategic Investments for the Future

With an eye on urban transformation, the government has introduced a ₹1 lakh crore Urban Challenge Fund under the ‘Cities as Growth Hubs’ initiative. Investments will also be directed towards expanding regional air connectivity through the Modified UDAN Scheme, adding 120 new destinations to the existing network.

To drive innovation, the government has earmarked ₹20,000 crore for private sector-driven R&D initiatives. A Centre of Excellence in AI for Education will be set up with a ₹500 crore allocation, reinforcing India's push toward digital transformation.

For the gig economy, a dedicated scheme has been introduced to issue identity cards to gig workers, register them on the e-Shram portal, and provide healthcare coverage under PM Jan Arogya Yojana.

Boost to Real Estate and Housing

The government has announced a ₹15,000 crore SWAMIH Fund to facilitate the completion of 1 lakh stressed housing units, providing relief to homebuyers and developers. Additionally, the FDI limit in insurance has been raised from 74% to 100%, opening doors for more foreign investment in the sector.

Strategic Trade and Industry Reforms

To promote exports, the government will launch BharatTradeNet (BTN), a unified digital trade documentation and financing platform. In the electronic manufacturing sector, BCD (Basic Customs Duty) on Open Cells has been reduced to 5%, while BCD on IFPD (Interactive Flat Panel Display) has been increased to 20% to encourage domestic manufacturing.

Additionally, customs duty exemptions for shipbuilding and battery manufacturing aim to promote indigenous production of electric vehicle (EV) batteries and mobile batteries, furthering India’s sustainability goals.

Conclusion

The Union Budget 2025-26 presents a holistic roadmap for economic growth, balancing tax reliefs, infrastructure investments, rural development, and industrial reforms. With inclusive policies focused on agriculture, MSMEs, technology, and exports, the budget seeks to propel India towards the vision of ‘Viksit Bharat’—a self-reliant and globally competitive economy.