Union Budget 2025: Key Announcements and Reforms for MSME, Agriculture, and Taxation
The Union Budget 2025 brings transformative changes with reforms for MSMEs, agriculture, and various sectors. Highlights include higher loan guarantees, foreign investment in insurance, water supply initiatives, AI centers for health and agriculture, and tax relief for citizens. A roadmap to create 10 gigawatt nuclear energy plants and initiatives to support young entrepreneurs and farmers are part of the vision to drive India's growth.
Chennai: In the Union Budget presented today by Finance Minister Nirmala Sitharaman, the following 10 major announcements were made:
1. Incentives will be provided for manufacturing EV batteries across the country. The import duties on lithium batteries will be removed, and production tax relief will be given to batteries made for electric vehicles and mobile phones.
2. 100% foreign investment will be allowed in the insurance sector.
3. Government-issued identification cards will be provided to workers of online platforms such as Swiggy and Zomato.
4. A urea production plant will be set up in Assam, and the Indian postal department will be transformed into a major logistics hub. The Kisan Credit Card limit for farmers will be increased from ₹3 lakh to ₹5 lakh. A new scheme called "Tham Thanya Krishi" has been announced.
5. The focus of the scheme will be on 100 districts with low production capacity. By 2047, 10 gigawatt nuclear plants will be set up, and necessary amendments to the Atomic Energy Act will be made. Five small nuclear plants, developed domestically, will start operations by 2033.
6. Efforts will be made to turn India into an international hub for toy manufacturing. ₹1.5 lakh crore will be allocated for infrastructure investments, and interest-free loans will be provided to states. AI centers will be set up in three sectors: health, agriculture, and more.
7. The Jal Jeevan scheme, which aims to provide piped water to every household, will be extended until 2028 to achieve 100% target.
8. The budget has been designed based on 10 components including youth progress, agriculture, poverty eradication, and food security. Reforms will be introduced in six sectors: taxation, urban development, minerals, financial management, electricity, and regulations. A scheme will be launched to provide up to ₹2 crore in business loans to 5 lakh indigenous women entrepreneurs.
9. In the next three years, cancer treatment centers will be set up in all district hospitals, prioritizing the 100 districts with low production. The government is working towards achieving self-sufficiency in pulse production.
10. Finance Minister Nirmala Sitharaman announced that those under the new income tax bracket will be exempt from paying income tax up to ₹12 lakh. This benefit will only apply to those under the new income tax regime.
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