Sun Feb 02 15:31:42 UTC 2025: **India’s Union Budget 2025: Boost for Agriculture and Middle Class**

**New Delhi, February 1, 2025** – Finance Minister Nirmala Sitharaman today unveiled India’s Union Budget 2025-26, a document characterized by a focus on boosting consumption and supporting the agricultural sector. The budget’s most significant announcement was a major tax cut for the middle class, eliminating income tax for individuals earning up to ₹12 lakh (approximately $14,600 USD) annually under the new tax regime. This move, expected to inject ₹1 lakh crore ($12 billion USD) into the economy, aims to stimulate consumer spending and drive economic growth.

The agricultural sector also received significant attention. The newly announced PM Dhan-Dhaanya Krishi Yojana will target 100 low-yield districts, aiming to improve crop intensity, credit access, and overall productivity for 1.7 crore (17 million) farmers. This initiative spurred immediate gains for agricultural companies, with shares of Kaveri Seed Co. soaring 13.49%, Mangalam Seeds climbing 7.09%, and several other related companies experiencing significant increases.

Other key highlights of the budget include:

* **Increased Capital Expenditure:** While slightly lower than projected, capital expenditure remains substantial at ₹11.21 lakh crore ($137 billion USD), supporting infrastructure development in railways, roads, and logistics.
* **MSME Support:** The credit guarantee scheme for MSMEs has been enhanced, increasing the credit limit from ₹5 crore to ₹10 crore, potentially unlocking an additional ₹1.5 lakh crore ($18 billion USD) in credit.
* **Tourism Boost:** The government plans to holistically develop 50 top tourist destinations, aiming to further boost this sector’s contribution to the GDP.
* **Renewable Energy Push:** A new manufacturing mission will focus on solar, electrolysers, and batteries, promoting domestic production of clean energy technologies.

While the budget emphasizes consumption-led growth and fiscal prudence, some analysts noted lower-than-expected capital expenditure allocations. However, positive responses from various industry leaders and financial experts suggest widespread optimism about the budget’s potential to stimulate the economy and improve the livelihoods of farmers and the middle class. The impact on the stock market was immediate, with significant gains in agriculture and consumer-related sectors. The long-term effects of the budget’s policies remain to be seen.

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