Summary of the Union Budget 2025-26
Key Themes
• Accelerating growth with a focus on Viksit Bharat.
• Strengthening four economic engines: Agriculture, MSMEs, Investment,
and Exports.
• Emphasizing inclusive development with targeted initiatives for Garib
(poor), Youth, Annadata (farmers), and Nari (women).
Major Announcements by Sector
1. Agriculture & Rural Development
• Prime Minister Dhan-Dhaanya Krishi Yojana: To improve 100 low-
productivity districts through better irrigation, storage, and credit access.
• Mission for Aatmanirbharta in Pulses: Focus on Tur, Urad, and Masoor with
procurement support.
• National Mission on High Yielding Seeds: To promote climate-resistant,
high-yield seeds.
• Comprehensive Programme for Fruits & Vegetables: Strengthening FPOs
(Farmer Producer Organizations) and cooperatives.
• Makhana Board in Bihar: To enhance production and marketing.
• Kisan Credit Card (KCC) Limit Increased: From ₹3 lakh to ₹5 lakh for
farmers, fishermen, and dairy farmers.
• New Urea Plant in Assam: To reduce fertilizer dependency.
• India Post to Support Rural Economy: Expanding into logistics, credit
services, and digital payments.
2. MSMEs & Startups
• MSME Classification Criteria Revised: Investment and turnover limits
increased by 2.5x to encourage growth.
• Enhanced Credit Guarantee Scheme:
o Micro & Small Enterprises: ₹5 crore to ₹10 crore.
o Startups: ₹10 crore to ₹20 crore.
o Exporter MSMEs: Up to ₹20 crore term loans.
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• New Credit Card for Micro Enterprises: ₹5 lakh limit.
• ₹10,000 Crore Fund of Funds for Startups: Expanding scope and funding.
• Scheme for First-time Entrepreneurs: ₹2 crore loans for 5 lakh women, SCs,
and STs.
• Support for Footwear, Leather & Toy Sectors: To increase employment and
exports.
3. Infrastructure & Investment
• ₹1.5 lakh crore interest-free loans to states for infrastructure.
• Asset Monetization Plan 2025-30: ₹10 lakh crore for new projects.
• Urban Challenge Fund: ₹1 lakh crore for municipal governance and smart
cities.
• Public-Private Partnership (PPP) in Infrastructure: Encouraging states to
submit 3-year project pipelines.
• Jal Jeevan Mission Extended till 2028: Ensuring 100% rural potable water
coverage.
4. Manufacturing & Exports
• National Manufacturing Mission: To promote Make in India, clean-tech,
and high-value industries.
• New Export Promotion Mission: Sector-wise targets to boost global trade.
• BharatTradeNet (BTN): A new digital trade platform to ease documentation
and financing.
• Support for Global Supply Chain Integration: Enhancing manufacturing for
Industry 4.0.
• Green Energy Push: Focus on nuclear power, solar PV, wind turbines, and
EV batteries.
5. Energy, Transport & Urban Development
• Nuclear Energy Mission: ₹20,000 crore for Small Modular Reactors (SMRs);
goal of 100 GW nuclear capacity by 2047.
• UDAN Scheme Expansion: 120 new air routes, focusing on Northeast & hilly
regions.
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• Western Koshi Canal Project (Bihar): Irrigation boost for 50,000 hectares.
• Greenfield Airport in Bihar: Additional expansion at Patna & Bihta.
• Shipbuilding Industry Support: Maritime Development Fund of ₹25,000
crore.
6. Education, Health & Employment
• 50,000 Atal Tinkering Labs in government schools.
• 5 National Skilling Centres of Excellence with industry partnerships.
• IIT Infrastructure Expansion: Additional 6,500 student capacity.
• Medical Education Expansion: 10,000 more medical seats in 2025-26.
• Day Care Cancer Centres in all District Hospitals within 3 years.
• Social Security for Gig Workers: e-Shram registration and healthcare under
PM Jan Arogya Yojana.
• PM SVANidhi Expansion: Loans up to ₹30,000 for street vendors.
7. Taxation & Financial Sector Reforms
Personal Income Tax
• No income tax up to ₹12 lakh under the new regime.
• New Slabs & Rates:
o ₹0-4 lakh – Nil
o ₹4-8 lakh – 5%
o ₹8-12 lakh – 10%
o ₹12-16 lakh – 15%
o ₹16-20 lakh – 20%
o ₹20-24 lakh – 25%
o Above ₹24 lakh – 30%
• Standard deduction for salaried class increased to ₹75,000.
Corporate & Investment Taxation
• FDI limit in Insurance raised to 100% (subject to investment in India).
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• Grameen Credit Score System: Public sector banks to assess creditworthiness
of rural borrowers.
• Tax Benefits for Sovereign Wealth & Pension Funds extended till 2030.
• Tax Holiday for Startups extended till 2030.
• Tonnage Tax Scheme for Inland Vessels: To promote inland waterways.
Customs & GST Reforms
• Customs duty cut on critical minerals, renewable energy inputs, and
pharma.
• Simplified GST Rules: Track & Trace mechanism for compliance.
Key Takeaways
• Focus on job creation, rural prosperity, and MSME growth.
• Massive tax relief for the middle class, boosting spending power.
• Push for self-reliance in agriculture, defense, and energy.
• Strategic investments in digital trade, AI, and green tech.
• Simplification of tax processes and investor-friendly policies.
Fiscal Outlook
• Fiscal Deficit Target: 4.4% of GDP in 2025-26.
• Total Expenditure: ₹50.65 lakh crore.
• Total Receipts (excluding borrowings): ₹34.96 lakh crore.
Conclusion
This budget emphasizes growth, inclusivity, and self-reliance, leveraging
technology, investments, and sectoral reforms to position India as a global leader
in the next decade.
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