Sat Feb 01 12:31:33 IST 2025: ## India Unveils Budget 2025: Tax Cuts, Infrastructure Push, and Focus on Growth

**New Delhi, India** – Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26 today, outlining a plan focused on accelerated growth and inclusive development. The budget, Sitharaman’s eighth consecutive, highlights several key initiatives:

**Tax Reforms:** Significant tax relief is offered to individuals. Those earning ₹18 lakh annually will receive a ₹70,000 tax benefit, while those earning ₹25 lakh will see a ₹110,000 reduction. New tax slabs include a 20% rate for income between ₹16-20 lakh, 25% for ₹20-24 lakh, and 30% above ₹24 lakh. No income tax will be levied on incomes up to ₹12 lakh. The government also plans to simplify tax compliance for small charitable trusts and reduce the burden on taxpayers. A new Income Tax Bill is expected to be introduced next week.

**Infrastructure and Investment:** A substantial ₹1.5 lakh crore in interest-free, 50-year loans will be provided to states for infrastructure development. A new asset monetisation initiative aims to generate ₹10 lakh crore for new ventures. The budget also includes provisions for:

* Expanding the UDAN scheme to 120 new destinations.
* Developing 50 top tourist sites.
* Extending Mudra loans to homestays.
* Establishing a Makhana Board in Bihar.
* Creating a framework for sustainable harnessing of the marine sector.
* Adding 10,000 medical college seats next year, and 75,000 in the next five years.

**Other Key Measures:**

* The FDI limit for the insurance sector will be increased from 74% to 100%.
* A focused scheme will be launched for the footwear and leather sectors.
* A new scheme will aim to make India a global toy manufacturing hub.
* A new PM Dhan Dhanya Krishi Yojana will focus on improving agricultural productivity in 100 districts.
* 50,000 Atal Tinkering Labs will be set up over the next five years.
* A Rs 2 crore term loan scheme will be introduced for 5 lakh first-time women, SC, and ST entrepreneurs.
* Investment and turnover limits for MSMEs will be increased.
* A new urea manufacturing facility will be set up in Assam.

**Fiscal Projections:** The fiscal deficit is projected at 4.8% of GDP for FY25 and 4.4% for FY26. Net market borrowings for FY26 are estimated at ₹11.54 lakh crore.

The budget, while met with protests from opposition parties, aims to stimulate private sector investment, improve household sentiments, and strengthen the rising middle class. The government projects India to remain the fastest-growing major global economy.

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