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Union Budget 2025 Highlights: Key Initiatives for Economic Growth, Tax Relief, and Development

Union Budget 2025 Highlights: Key Initiatives for Economic Growth, Tax Relief, and Development

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Union Budget 2025 Highlights: Key Initiatives for Economic Growth, Tax Relief, and Development

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Union Budget 2025 Highlights: Key Initiatives for Economic Growth, Tax Relief, and Development
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DBT Bureau

Pune, 1 Feb 2025

  • No income tax on average monthly income of up to Rs 1 lakh; to boost middle class household savings & consumption.
  • Salaried class to pay nil income tax up to Rs 12.75 lakh per annum in new tax regime.
  • Union budget recognises 4 engines of development – agriculture, MSME, investment, and exports.
  • Benefiting 1.7 crore farmers, ‘Prime Minister Dhan-Dhaanya Krishi Yojana’ to cover 100 low agricultural productivity districts.
  • “Mission for Aatmanirbharta in pulses” with a special focus on tur, urad, and masoor to be launched.
  • Loans up to Rs. 5 lakhs through KCC under modified interest subvention scheme.
  • FY-25 estimated to end with fiscal deficit of 4.8%, target to bring it down to 4.4% in FY-26.
  • Significant enhancement of credit with guarantee cover to MSMEs from Rs 5 cr to Rs 10 cr.
  • A National Manufacturing Mission covering small, medium, and large industries for furthering “Make in India.”
  • 50,000 Atal Tinkering Labs in government schools in next 5 years.
  • Centre of Excellence in Artificial Intelligence for education, with a total outlay of Rs 500 crore.
  • PM SVANidhi with enhanced loans from banks, and UPI-linked credit cards with Rs 30,000 limit.
  • Gig workers to get identity cards, registration on e-SHRAM portal & healthcare under PM Jan Arogya Yojana.
  • Rs 1 lakh crore Urban Challenge Fund for ‘Cities as Growth Hubs.’
  • Nuclear Energy Mission for R&D of small modular reactors with an outlay of Rs 20,000 crore.
  • Modified UDAN scheme to enhance regional connectivity to 120 new destinations.
  • Rs 15,000 crore SWAMIH fund to be established for expeditious completion of another 1 lakh stressed housing units.
  • Rs 20,000 crore allocated for private sector-driven research development and innovation initiatives.
  • Gyan Bharatam Mission for survey and conservation of manuscripts to cover more than one crore manuscripts.
  • FDI limit enhanced for insurance from 74% to 100%.
  • Jan Vishwas Bill 2.0 to be introduced for decriminalising more than 100 provisions in various laws.
  • Updated income tax returns time limit increased from two to four years.
  • Delay in TCS payment decriminalised.
  • TDS on rent increased from Rs 2.4 lakh to Rs 6 lakh.
  • BCD exempted on 36 lifesaving drugs and medicines for treating cancer, rare, and chronic diseases.
  • BCD on IFPD increased to 20% and on open cells reduced to 5%.
  • BCD on parts of open cells exempted to promote domestic manufacturing.
  • To boost battery production, additional capital goods for EV and mobile battery manufacturing exempted.
  • BCD exempted for 10 years on raw materials & components used for ship building.
  • BCD reduced from 30% to 5% on frozen fish paste and 15% to 5% on fish hydrolysate.

The Budget proposes revised tax rate structure under the new tax regime as follows;

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