The Union Budget for 2025 was announced by Finance Minister Nirmala Sitharaman, who introduced some important measures to spur the economy and relieve various sectors. Below is a simplified overall view of the major announcements with practical examples:
- Income Tax
The government has raised the income tax exemption limit from ₹7 lakh to ₹12 lakh. Individuals with annual income up to ₹12 lakh will not pay any income tax.
Example: If you are earning ₹10 lakh a year, you would pay taxes on ₹3 lakh(₹10 lakh minus ₹7 lakh) under the earlier tax regime. Therefore, under the new exemption limit, your entire income of ₹10 lakh is tax-free, and taxes saved are huge.
- Support to Agriculture
A six-year program has been introduced to increase the production of pulses and cotton to reduce imports. The purchase of certain pulses at guaranteed prices is being done by the government to help farmers.
Example: If you are a pigeon pea grower, the government will guarantee the price for your crop to ensure that you get a fair income regardless of market changes.
- Promoting Innovation
The budget has allocated ₹20,000 crore to initiate a private-sector-driven Research, Development, and Innovation scheme. Further, under Prime Minister Research Fellowship, 10,000 fellowships will be granted for technological research in IITs and IISc.
Example: If you are a fellow at IIT Hyderabad with a breakthrough project idea, you would receive a fellowship to support your research, thereby augmenting the innovative and technological growth.
- Export Promotion
To promote export, the government has given an exemption for goods utilized in shipbuilding and shipbreaking for 10 years. The time limit for railway goods exported after repairs has also been extended.
Example: If you are in shipbuilding, you may thus import goods used for production without paying certain duties for the next 10 years, thereby reducing costs and encouraging production.
- Development of Nuclear Energy
India Nuclear Energy Mission has been announced with an outlay of ₹20,000 crore for developing Small Modular Reactors (SMRs). The proposal is to operationalize five indigenously developed SMRs by 2033.
Example: This scheme envisages adding to India’s energy basket with more assured power supply for the industries and households, which will guarantee an uninterrupted electricity supply for cities like Hyderabad.
This set of measures is in recognition of the government’s commitment to accelerate economic growth for different sectors and promote innovations.
- Putting in place Infrastructure
An upward revision of ₹11.11 lakh crore is being made into infrastructure growth, chiefly covering roads, railways, and urban development.
Example: If you are a commuter in Mumbai, it means better metro connectivity and improved road infrastructure that will reduce your travel time.
- MSME (Micro, Small, and Medium Enterprises) Support
Micro, Small, and Medium Enterprises (MSMEs) have been placed under a special credit scheme for easier appraisal of loans at cheaper interest rates.
Example: If you own a small textile business in Surat, you can now avail of a business loan at lower interest rates that will help you in increasing production.
- Digital India and AI Investment
A new AI program will kick off for training professionals and enhancing digital infrastructure.
Example: As a software engineer, you can enroll in government-funded AI training programs to upskill.
- Green Energy Push
The government is heavily investing in solar power, EVs, and hydrogen energy.
Example: If you buy an EV, you will receive subsidies or pay lower taxes to make it less expensive.
- Advances in Health and Insurance Sectors
More funds are being allocated to the public hospitals and Ayushman Bharat, thereby extending healthcare benefits to the elderly.
For example, now anytime your elderly parents get hospitalized, they might get free or partly paid treatment under this scheme.
- Education and Skilling
A new Skill India initiative will also impart training to youth for emerging industries like robotics, automation, and AI.
For example, if you are in college, you could avail government-sponsored training for in-demand skills, thereby increasing your job opportunities.