The Union Budget for the fiscal year 2025-26 was presented today by Finance Minister Nirmala Sitharaman. This budget, being the first after the general elections, sets the tone for India’s economic trajectory in the coming years. Focused on fiscal consolidation, economic growth, and welfare schemes, the budget aims to balance development with financial prudence.
Key Highlights of the Union Budget 2025
1. Fiscal Deficit and Economic Outlook
- The government has set a fiscal deficit target of 4.4% of GDP, a reduction from last year’s 4.8%.
- GDP growth projections remain strong, with expectations of sustained economic momentum.
- Government borrowing is pegged at ₹14.82 trillion, with net borrowings at ₹11.54 trillion.
2. Taxation and Income Tax Reforms
- The nil tax slab has been increased to ₹1.2 million, providing relief to middle-class taxpayers.
- Customs duty on select imports, including marine products and critical minerals, has been reduced to boost domestic industries.
- Essential life-saving drugs have been exempted from customs duties to make healthcare more affordable.
3. Boost for Key Sectors
Agriculture
- A national mission to promote high-yielding crops has been introduced to ensure food security.
- Increased limit for subsidized agricultural credit to support farmers.
Infrastructure & Manufacturing
- The government has allocated significant funds to enhance infrastructure and boost start-ups.
- A National Manufacturing Mission has been launched to drive industrial growth.
- A new policy for critical minerals development aims to strengthen India’s supply chain.
Foreign Direct Investment (FDI)
- FDI limit in the insurance sector has been increased to 100%, encouraging foreign investment and deepening market penetration.
4. Market Reactions and Industry Response
- The stock markets saw modest declines during the Finance Minister’s speech, reflecting investor caution.
- Industry leaders have welcomed the budget’s focus on infrastructure and tax relief but have called for more incentives for digital transformation and renewable energy.
Conclusion
The Union Budget 2025-26 reflects the government’s commitment to balancing fiscal discipline with economic growth. By addressing key concerns such as taxation, agriculture, infrastructure, and investment, the budget lays the foundation for a stronger economy in the coming years. The coming months will reveal how effectively these policies translate into real-world impact for businesses and citizens alike.
To Know more complete detail of Union Budget 2025 go to https://www.indiabudget.gov.in/