India's Budget 2025: Key Announcements, Tax Reforms & Economic Growth Plans.

India’s 2025 Budget: Key Announcements by Finance Minister Nirmala Sitharaman

India’s Finance Minister, Nirmala Sitharaman, presented the Union Budget for 2025 amidst strong opposition protests. However, as she began her speech, the opposition gradually settled down. Before presenting the budget, she met with President Droupadi Murmu at Rashtrapati Bhavan.

India’s Fast-Growing Economy
Sitharaman highlighted that India is one of the fastest-growing economies among major nations. The country’s decade-long growth trajectory and structural reforms have gained global recognition, boosting confidence in India's potential.

Income Tax Announcements
The income tax exemption limit has been raised to ₹12 lakh, meaning individuals earning up to ₹12 lakh will not have to pay income tax.
A fresh taxation legislation will be proposed next week.
Foreign investment in the insurance sector will be increased from 74% to 100%.
Agriculture & Rural Development
A Makhana Board will be established in Bihar to support production and sales. India produces 85% of the world’s makhana, with Bihar accounting for 90% of the country's production.
A National Food Processing & Entrepreneurship Center will be set up in Bihar.
The PM Tana Danya Yojana will promote agriculture in 100 districts.
A new scheme will be introduced for high-yield seeds.
A six-year plan will focus on oilseeds and pulses, boosting production of tur, urad, and other pulses.
The Kisan Credit Card loan limit will be increased from ₹3 lakh to ₹5 lakh.
Industry & Business Development
Startup Fund Expansion: An additional ₹10,000 crore will be allocated to support startups.
Support for Women & Underprivileged Entrepreneurs: A new scheme will empower 5 lakh women, SC/ST entrepreneurs to launch startups.
Focus on Footwear & Leather Industry, expected to generate 22 lakh jobs.
A new toy manufacturing initiative will make India a global hub.
Street Vendor Credit Scheme: Vendors will get loans up to ₹30,000, linked to UPI.
Gig Economy & Labor Welfare
Gig workers can now register on the e-Shram portal for identity cards and health insurance under PM Jan Arogya Yojana.
Education & Research
50,000 Atal Tinkering Labs will be set up over the next five years to foster scientific thinking in schools.
All rural government higher secondary schools will be connected to broadband.
IIT expansion: Student capacity in IITs has doubled in the last 10 years, and five new IITs will receive additional infrastructure support.
Healthcare & Essential Goods
Prices of lifesaving drugs, including cancer medicines, will be reduced.
Import duties will be waived on six critical medicines and 36 cancer drugs.
Infrastructure & Connectivity
UDAN regional airport scheme will be expanded to 120 new areas, with a projected 4 crore additional air passengers in 10 years.
Tourism & Cultural Development
50 tourist destinations will be developed in collaboration with state governments.
Focus on Buddhist heritage sites.
Private sector collaboration to boost medical tourism.
Income Tax Reforms
Previously, the tax exemption limit was ₹7 lakh. Now, it has been increased to ₹12 lakh.
The standard deduction of ₹75,000 has been removed, leading to changes in tax benefits.

This marks the 8th consecutive budget presented by Sitharaman. The record is held by Morarji Desai, who presented 10 budgets across different periods.

Economic Survey 2025-26
India’s economic growth is projected at 6.3%-6.8% for 2025-26.
The government plans long-term industrial growth strategies.
Foreign exchange reserves remain strong.
This budget emphasizes growth in agriculture, women empowerment, startups, and rural development, aiming for economic stability and progress.