Highlights from the 2025-26 Union Budget Speech by Nirmala Sitharaman

Budget Theme & Vision

• India remains the fastest-growing major economy globally.
• Focus on inclusive growth, investment-driven expansion, and middle-class empowerment.
• Aim: "Viksit Bharat" (Developed India) with:

1. Zero poverty
2. 100% good-quality school education
3. Affordable and comprehensive healthcare
4. 100% skilled labor with meaningful employment
5. 70% women in economic activities
6. Farmers making India the "food basket of the world".

Key Focus Areas

The budget emphasizes 10 key areas:

1. Spurring Agricultural Growth
2. Building Rural Prosperity
3. Inclusive Growth
4. Boosting Manufacturing & Make in India
5. Supporting MSMEs
6. Employment-led Development
7. Investing in People, Economy & Innovation
8. Securing Energy Supplies
9. Promoting Exports
10. Nurturing Innovation

Key Economic Sectors

1. Agriculture & Rural Development

• PM Dhan-Dhaanya Krishi Yojana for 100 low-productivity districts.
• Rural Prosperity & Resilience Program to reduce migration by improving rural employment.
• Aatmanirbharta in Pulses: 6-year program for self-sufficiency in pulses (Tur, Urad, Masoor).
• National Mission on High-Yielding Seeds to develop climate-resistant varieties.
• Makhana Board in Bihar for enhanced production and exports.
• Mission for Cotton Productivity with scientific and technological support.

2. MSMEs & Startups

• Enhanced MSME classification: Investment and turnover limits increased by 2.5x.
• Credit Guarantee for MSMEs & Startups: Loans increased from ?5 crore to ?10 crore.
• New Fund of Funds for Startups with ?10,000 crore investment.
• Credit Cards for Micro Enterprises (?5 lakh limit).
• Scheme for 5 Lakh First-time Women & SC/ST Entrepreneurs with loans up to ?2 crore.
• Focus Product Scheme for footwear & leather sector, expected to create 22 lakh jobs.

3. Investments in People

• 50,000 Atal Tinkering Labs in government schools for STEM education.
• AI Excellence Center for Education with ?500 crore investment.
• 10,000 Additional Medical Seats to be created in the next year.
• Day Care Cancer Centers in all district hospitals.
• Urban Worker Socio-Economic Upliftment Scheme for better wages & skills.

4. Infrastructure & Energy

• 50-year Interest-Free Loans for States: ?1.5 lakh crore outlay.
• Public-Private Partnership (PPP) Infrastructure Pipelines.
• New Nuclear Energy Mission: ?20,000 crore for Small Modular Reactors (SMRs).
• UDAN Scheme Expansion: 120 new regional airports, 4 crore passengers in 10 years.
• Greenfield Airport in Bihar and expansion of Patna Airport.
• Jal Jeevan Mission Extended to 2028 to achieve 100% rural tap water connections.

5. Power & Urban Development

• 0.5% Additional Borrowing for States linked to electricity reforms.
• Urban Challenge Fund: ?1 lakh crore for developing growth hubs & clean cities.

6. Export Growth & Digital Trade

• Export Promotion Mission: Easy access to export credit, trade facilitation.
• BharatTradeNet (BTN): Unified platform for international trade documentation.
• Warehousing for Air Cargo including high-value perishable exports.

Reforms & Taxation

1. Tax Reforms

New Income Tax Regime:

No tax up to ?12 lakh (?12.75 lakh for salaried taxpayers).

New Slabs:

1. ?0 - ?4 lakh: 0%
2. ?4 - ?8 lakh: 5%
3. ?8 - ?12 lakh: 10%
4. ?12 - ?16 lakh: 15%
5. ?16 - ?20 lakh: 20%
6. ?20 - ?24 lakh: 25%
7. Above ?24 lakh: 30%

TDS & TCS Simplifications:

• Senior citizens’ interest income exemption limit increased to ?1 lakh.
• TCS exemption for education loans taken for studying abroad.

Bilateral Investment Treaties Revamped to attract FDI.

2. Indirect Taxation & Customs

Lower Customs Duty:

1. Marine & Agricultural Exports: Frozen fish paste 30% → 5%.
2. EV & Mobile Phone Battery Components: Zero duty on 35 capital goods.
3. Wet Blue Leather: 10% → 0%.
4. High-Tech Manufacturing: Solar PV, EVs, Electronics duty reductions.

Higher Customs Duty:

1. Interactive Flat Panel Displays: 10% → 20%.
2. Luxury Motorcycles (1600cc+): 50% → 30%.

Key Takeaways

? Big push for Agriculture: ?6-year mission for pulses, ?5-year cotton productivity plan.

? Massive MSME & Startup Support: Credit expansions, new fund of funds, micro-enterprise credit cards.

? Education & Healthcare Prioritized: AI research centers, more medical seats, cancer centers.

? Infrastructure & Energy Focus: ?1.5 lakh crore state incentives, nuclear & clean tech investment.

? Lower Taxes for Middle Class: ?12 lakh tax-free, simplified tax structure.

? Customs & Trade Reforms: Lowered duties on EVs, electronics, and clean tech; Higher tariffs on luxury goods.

?? "Viksit Bharat" is the end goal, with a focus on reforms, innovation, and inclusivity.