Union Budget 2025: A Vision for Growth, Innovation, and Inclusivity

The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, sets a bold vision for India's economic growth, emphasizing inclusivity, investment, and innovation. With a focus on Viksit Bharat (Developed India), this budget strategically leverages four growth engines—Agriculture, MSMEs, Investments, and Exports—while reforms serve as the fuel to drive economic transformation.

Key Themes & Highlights

This budget aims to unlock India’s full potential by focusing on Garib (Poor), Yuva (Youth), Annadata (Farmers), and Nari (Women) through ten core areas:

1. Agricultural Growth & Rural Prosperity

2. Inclusive Growth & Social Security

3. MSME & Start-up Ecosystem Boost

4. Manufacturing & Make in India

5. Employment & Skilling Initiatives

6. Investment in Infrastructure & Innovation

7. Energy Security & Sustainability

8. Export Promotion & Global Supply Chain Integration

9. Urban Development & Housing

10. Regulatory & Financial Reforms

1. Agriculture & Rural Prosperity

Prime Minister Dhan-Dhaanya Krishi Yojana

Aimed at 100 underdeveloped agricultural districts, this initiative will enhance:

Crop productivity and diversification

Post-harvest storage

Irrigation and credit facilities for farmers

Self-Reliance in Pulses

A six-year ‘Mission for Aatmanirbharta in Pulses’ will focus on pulses like Tur, Urad, and Masoor, ensuring price stability and procurement security.

Strengthening Rural Economy

Makhana Board in Bihar to promote makhana farming & processing

Cotton Productivity Mission to improve cotton farming efficiency

Expansion of Kisan Credit Card (KCC) loans from ?3 lakh to ?5 lakh

2. MSMEs & Entrepreneurship

Revised MSME Classification

Investment and turnover limits increased by 2.5x to help MSMEs scale up.

Financial Boost

Credit Guarantee cover enhanced to ?10 crore for MSMEs

Startups’ credit cover doubled to ?20 crore

Customized Credit Cards with a ?5 lakh limit for micro-enterprises

Sector-Specific Boost

Toy Manufacturing Scheme to position India as a global hub

Leather & Footwear Productivity Scheme, creating 22 lakh jobs

National Manufacturing Mission to strengthen “Make in India”

3. Infrastructure & Investment

Public-Private Partnership in Infrastructure

Ministries to roll out 3-year infrastructure project pipelines

?1.5 lakh crore interest-free loans to states for capital projects

Urban Development

?1 lakh crore Urban Challenge Fund for city redevelopment

Focus on water, sanitation, and municipal governance reforms

Energy & Power Sector

100 GW of nuclear energy by 2047 with private sector collaboration

Maritime Development Fund of ?25,000 crore for shipping industry growth

4. Innovation & Skilling

Investing in Education & Skilling

50,000 Atal Tinkering Labs for fostering innovation

Expansion of IITs, adding 6,500 new seats

Medical education boost, adding 10,000 more UG/PG seats

Technology & Research

PM Research Fellowship to fund 10,000 PhD scholars

?20,000 crore Deep Tech Fund for AI, biotech, and R&D startups

National Geospatial Mission for modernization of urban planning

5. Fiscal Policy & Tax Reforms

Direct Taxes

No income tax up to ?12 lakh for middle-class taxpayers

New Tax Slabs (?4 lakh to ?24 lakh)

0-4L – Nil

4-8L – 5%

8-12L – 10%

12-16L – 15%

16-20L – 20%

20-24L – 25%

Above 24L – 30%

Indirect Taxes

Duty reduction on critical imports for tech & clean energy

Customs exemption for EV battery manufacturing equipment

Relief on life-saving medicines & medical equipment

6. Export & Global Trade

BharatTradeNet (BTN)

A new digital public infrastructure for international trade

Helps MSMEs integrate into global supply chains

Logistics & Warehousing

Air cargo infrastructure upgradation

Efficient screening & customs process for perishable exports

7. Sustainability & Green Economy

Renewable Energy & Nuclear Power

100 GW of nuclear energy by 2047 with private sector participation

?20,000 crore Nuclear Energy Mission for Small Modular Reactors (SMRs)

Electric Vehicles & Clean Tech Manufacturing

Duty exemption on EV battery manufacturing equipment

Support for domestic solar PV, wind turbines, and electrolyzer production

Sustainable Urban Growth

?1 lakh crore Urban Challenge Fund for sustainable city development

Expansion of public transport and green mobility initiatives

8. Women Empowerment & Social Welfare

Women in Workforce & Entrepreneurship

70% female workforce participation goal under Viksit Bharat vision

5 lakh first-time women entrepreneurs to receive financial support

Healthcare & Nutrition

Poshan 2.0: Nutritional support for 8 crore children, 1 crore pregnant women

Day Care Cancer Centres in all district hospitals within 3 years

Social Security for Gig Workers

E-Shram registration for 1 crore platform workers

PM Jan Arogya Yojana coverage for gig economy workers

9. Digital Economy & Technological Advancement

AI & Deep Tech Investments

?20,000 crore Deep Tech Fund for AI, robotics, biotech, and space tech

AI Centre of Excellence in Education to revolutionize learning

Digital Public Infrastructure

BharatTradeNet (BTN): A unified trade documentation platform

Expansion of India Post as a fintech and logistics hub for rural areas

Startup & IT Ecosystem Growth

Fund of Funds for Startups expanded with ?10,000 crore

National Framework for Global Capability Centres in Tier-2 cities

10. Reforms & Ease of Doing Business

Taxation & Compliance Simplification

New Income Tax Bill to modernize tax laws

TDS & TCS rationalization for ease of compliance

Trust-based regulatory framework for businesses

Foreign Direct Investment & Global Trade

FDI limit in insurance increased to 100%

Revised Bilateral Investment Treaties to attract foreign capital

Financial Sector & Banking Reforms

Grameen Credit Score system for rural borrowers

Partial Credit Enhancement Facility by NaBFID for infrastructure bonds

Final Thoughts: A Budget for Growth & Global Leadership

With a bold vision for economic resilience, inclusivity, and sustainability, the Union Budget 2025 positions India as a global powerhouse. The strong push for investment, innovation, and reforms will unlock new opportunities for businesses, entrepreneurs, and the middle class.

What’s your perspective on this budget? Drop your insights in the comments below!

Ashok M| Founder & CEO, Poetralia