Sat Feb 01 07:01:32 UTC 2025: ## India Unveils Budget 2025: Tax Cuts, Focus on Green Energy, and Boost for MSMEs

NEW DELHI – Finance Minister Nirmala Sitharaman presented India’s Union Budget 2025-26 on February 1st, 2025, marking her eighth consecutive budget presentation. The budget, dubbed the “GYAN” budget (referencing the poor, youth, farmers, and women), aims to further stimulate economic growth while addressing key social and infrastructural needs.

**Key Highlights:**

* **Tax Relief:** Significant tax relief was announced, with no income tax levied on earnings up to ₹4 lakh. Further tax slabs were implemented, with rates ranging from 5% to 25% depending on income bracket. This is a departure from previous years’ tax structures, indicating a focus on boosting consumer spending.

* **Boosting Domestic Manufacturing:** The budget emphasizes “Make in India,” with initiatives to reduce import duties on essential medicines and components for mobile phones, LED TVs, and electric vehicles, thus making these products more affordable. Furthermore, the government aims to transform India into a global toy hub and provide support to the footwear industry.

* **Green Initiatives:** A significant investment of ₹20,000 crore will be allocated to a nuclear energy mission, aiming for a 100 gigawatt capacity by 2047. The government is also establishing an AI excellence center to further technological advancements.

* **Support for MSMEs:** The government announced several measures to support Micro, Small, and Medium Enterprises (MSMEs). This includes increasing the investment limit for MSME classification, doubling the business limit, reducing loan guarantee fees for startups, and offering credit cards up to ₹5 lakh for micro-enterprises. Term loans of up to ₹20 crore will also be available.

* **Agricultural Focus:** A six-year program aimed at achieving self-sufficiency in pulses will be implemented, focusing on increasing production of tur, urad, and masoor. Furthermore, the government will launch a scheme to benefit 5 lakh SC/ST women.

* **Infrastructure Development:** The budget includes plans for a new flight scheme for 125 cities, increased medical college seats by 75,000, and expansion of existing infrastructure and facilities at several IITs. The Patna airport capacity will also be increased and the Mithilanchal Western Canal project will be expedited.

* **Investment in Research:** The government will provide 10,000 fellowships for tech research and establish a fund for startups with a government contribution of ₹10,000 crore.

The budget projects a fiscal deficit target of 4.4% for FY26. While the budget received a positive response from the ruling party, the opposition expressed dissent and protested during the presentation. The overall aim of the budget seems to be a strategic balance between stimulating economic growth, prioritizing social welfare, and advancing key infrastructural projects.

Read More