Budget 2025 Highlights

- 4 Growth Engines: Agriculture, MSMEs, Exports, Infrastructure

- Farmers First: ₹1.7 Cr farmers to benefit from crop diversification, irrigation, credit, and Makhana farming push

- MSME Boost: ₹20 Cr startup credit guarantee, new scheme for 5L women entrepreneurs

- Youth Focus: ₹2L Cr skilling programs, 1 Cr internships

- Infra Push: ₹11-11.5L Cr capex, greenfield airports, urban redevelopment fund

- Tax Relief: No tax up to ₹12L income, TDS/TCS reforms

- AI & Education: ₹500 Cr AI CoEs, IIT & medical infra expansion

- Energy & EVs: 100GW nuclear target, EV battery incentives

- Ease of Business: Simplified taxation, 100% FDI in insurance

Addition of 35 Capital Goods: For EV manufacturing, will be included in the BCD exemption list.

Exemption on Critical Minerals: 12 more critical minerals will be exempt from BCD.

36 Life-Saving Drugs added to the list of medicines fully exempt from Basic Customs Duty (BCD).

Higher tax exemptions, TDS relief, and startup boost in the new tax reforms.

BIG NEWS! No income tax for up to income of Rs. 12 lakh.

TCS on remittances for education is removed for loans taken from specified financial institutions.

TDS threshold from Rs 50,000 to Rs 1 lakh for senior citizens.

35 additional goods for EV battery manufacturing, and 28 additional goods for mobile phone battery manufacturing to be added to list of exempted capital goods.

Cobalt powder and waste, scrap of lithium-ion battery, Lead, Zinc and 12 more critical minerals to be exempted from Basic Customs Duty (BCD).

TDS to be rationalized by reducing number of rates and thresholds. Threshold limit for TCS on LRS remittance hiked from ₹7 lakh to 10 lakh.

Mudra loans will be made available for homestay businesses to encourage local tourism.

The modified Udaan scheme will be launched to connect 120 new destinations across India.

Aiming for 100 GW of nuclear energy by 2047 to support India’s energy transition.

FY25 revised capex is ₹10.18 lakh crore.

50,000 Atal Tinkering Labs will be set up to foster innovation and creativity.

A proposition has been raised to continue exemption on BCD for the manufacturing of ships and its parts for 10 years.

Taxation and mining are among 6 sectors where Budget will initiate reforms.

Fiscal deficit at 4.8% for FY25 and 4.4% for FY26; FDI in insurance has been increased to 100%.

The Alternate Investment Funds (AIFs) for startups have received over INR 91,000 crore in commitments, supported by the government's initial INR 10,000 crore contribution. A new fund of funds with an additional INR 10,000 crore from the government will be established.

#Export is the 4th Engine of Growth.

Greenfield airports to be established in Bihar.

State capex linked loans to be set at 1.5 lakh crore for FY26.

Institute to be set up in Bihar for food processing.

3 Centers of Excellence on AI for education will be setup with an outlay of Rs 500 crore.

Capex boost for states, major push for Bihar, and agricultural reforms.

Urban Challenge Fund to have an allocation of 1 lakh cr. for redevelopment of cities.

Outlay of 500 crore for the Center of Excellence in AI for Education.

Education: Additional IIT infrastructures to the existing IITs will be provided. IIT capacities doubled and medical seats developed 130% in the last 10 years.

Mission for Cotton Productivity for five years to help Extra Long Staple Cotton varieties for quality cotton. This is expected to rejuvenate India's traditional textile sector.

Credit Guarantee Scheme for Startups increased to 20Cr.

For MSMEs contributing 45% of exports, the classification limit has been enhanced to boost growth.

New scheme to be launched for 5 lakh women and first-time entrepreneurs, for term loans for the next 5 years.

MSME is the second engine of growth, with the focus on 5.7cr MSMEs.

Toys, as part of the Made in India initiative, will be promoted with the aim of becoming a global hub.

Credit and Technology Support: The budget emphasizes support for MSMEs through the Credit Guarantee Scheme and a technology support package to enhance competitiveness and innovation.

Internship Opportunities: A comprehensive internship program is set to connect one crore young people with leading companies to provide practical experience.

Youth Skilling Initiatives: The budget introduces five new programs with a central outlay of ₹2 lakh crore, aiming to assist 4.1 crore youth over five years through vocational training and entrepreneurship development.

Investments will target high-yield seed varieties, improved storage and supply infrastructure, and enhanced production of pulses, oilseeds, vegetables and dairy products.

Existing Postal services of India to be transformed into large logistics hub.

Govt. to raise capex to ₹11-11.5 lakh crore from ₹10 lakh crore, focusing on infrastructure to drive growth.

Crop diversification, irrigation facilities, availability of credit to help 1.7 cr farmers

Makhana boards in Bihar to promote Makhana farming by training farmers

Developing agriculture district programme is going to be initiated in the lines of aspirational districts programme.

Agriculture is the first engine for growth.

Budget aims at 'transformative' reforms in 6 areas including Taxation, financial sector, power sector, urban development, mining, regulatory reforms.

The Dhan Dhanya Ktrishi Yojna, in partnership with the state govt., may impact 1.7 cr farmers

The focus of budget is on the poor, annadata, youth and women.

Capital Market Concerns - The survey stresses the need for measures to safeguard household wealth and financial stability to get upward consumer spending.

Deregulation Focus - is key to job creation and higher female workforce participation, advocating reduced occupational restrictions.

Geopolitical uncertainties and commodity price shocks pose headwinds to growth.

GDP Growth Projection: The survey forecasts 6.3%-6.8% growth in FY25-26, following 6.4% in FY24-25, driven by improved rural demand, agricultural recovery, and macroeconomic stability.

Key Focus : Shaping India’s economic strategy by emphasizing on deregulation, regulatory improvements, and market stability for sustained growth.

Highlights of the Economic Survey 2025-26

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