Union Budget 2025 - 2026

Union Budget 2025 - 2026

(இதன் தமிழ் வடிவத்திற்கு இங்கே சொடுக்கவும்)

• Introduction

• Record 8th Consecutive Budget: The finance minister Nirmala Sitharaman presented her eighth consecutive Union Budget on February 1, 2025.

• Core Focus on Four Engines:
• The budget aims to drive economic growth through four key sectors:
• Agriculture
• MSMEs (Micro, Small, and Medium Enterprises)
• Investment
• Exports

• Goal of Viksit Bharat: The central vision of the budget is to transform India into a Viksit Bharat 2047 (Developed India 2047) by strengthening these key sectors.
• Emphasis on Sustainable and Inclusive Growth: The budget is designed to promote sustainable, equitable growth, ensuring that the benefits reach every section of society.

• Aspirations for Viksit Bharat
• Accelerate Growth.
• Secure Inclusive Development.
• Enhance Spending Power of India’s Rising Middle Class.
• Invigorate Private Sector Investments.

• Agricultural Growth & Building Rural Prosperity
• Prime Minister Dhan-Dhaanya Krishi Yojana
• Developing Agri Districts Programme.
• Focus on 100 districts, targeting 1.7 crore farmers.

• Enhanced Credit through KCC (Kisan Credit Card)
• Provide short-term loans to 7.7 crore farmers, fishermen, and dairy farmers with an enhanced loan amount of ₹5 lakh.

• National Mission on High Yielding Seeds
• Develop and propagate high-yield, pest-resistant, and climate-resilient seeds.
• Mission for Cotton Productivity
• 5-year mission for cotton farming productivity and sustainability.
• Makhana Board in Bihar
• Establishment to improve production, processing, value addition, and marketing, along with the organisation of FPOs (Farmer Producer Organisations).

• Aatmanirbharta in Pulses
• Launch a 6-year mission focusing on Tur, Urad, and Masoor.
• Focus on climate-resilient seeds, enhancing protein content, increasing productivity, and improving post-harvest storage.
• India Post as a Catalyst for the Rural Economy
• Rural Community Hub Co-location
• Provide services such as DBT (Direct Benefit Transfer), cash out, and EMI pick-up.
• Institutional Account Services
• Credit Services to Micro Enterprises.
• Insurance & Assisted Digital Services.
• Micro-enterprise Management.
• Assuring remunerative prices for farmers.
• Development Measures for Key Groups
• Garib (The Poor).
• Youth.
• Annadata (Farmers).
• Nari (Women).

• Supporting MSMEs & Furthering Make in India
• Credit Cards for Micro Enterprises
• Customised credit cards with ₹5 lakh limit for micro enterprises registered on the Udyam portal.
• 10 lakh cards to be issued in the first year.
• Scheme for First-Time Entrepreneurs
• New scheme for 5 lakh first-time entrepreneurs (including women, SCs, and STs).
• Term loans of up to ₹2 crore during the next 5 years.
• Manufacturing Mission for Labour-Intensive Sectors
• Key Measures for Labour-Intensive Sectors
• Focus on ease of doing business, future-ready workforce, technology availability, and clean-tech manufacturing for climate-friendly development.
• Significant Enhancement of Credit Availability
• Increased credit guarantee cover for MSMEs and startups.

• Focus Product Scheme for Footwear & Leather Sectors
• Expected to create 22 lakh jobs, generate ₹4 lakh crore turnover, and ₹1.1 lakh crore in exports.
• Support for Food Processing
• Establishment of the National Institute of Food Technology in Bihar.
• Enhanced farmer income, skills, and entrepreneurship opportunities.
• Credit Classification & Support for MSMEs
• Revised Classification Criteria for MSMEs

• Exporter MSMEs
• Support for term loans up to ₹20 Crore.
• Investing in People, Economy and Innovation
• Saksham Anganwadi and Poshan 2.0
• Expanding capacity and resources for Anganwadis and enhancing the Poshan 2.0 scheme.
• Expansion of Capacity in IITs
• Increasing capacity and resources to boost higher education and research in Indian Institutes of Technology (IITs).
• Day Care Cancer Centres in District Hospitals
• Establishment of cancer care centres in all district hospitals to improve healthcare access.

• Bharatiya Bhasha Pustak Scheme
• Provide digital Indian language books for school and higher education to promote linguistic diversity.
• National Centres of Excellence for Skilling
• Set up 5 National Centres of Excellence for skilling with global expertise and partnerships.
• Atal Tinkering Labs
• 50,000 labs to be set up in government schools over the next 5 years to foster innovation and entrepreneurship.
• Centre of Excellence in Artificial Intelligence (AI) for Education
• A total outlay of ₹500 crore for AI-driven education initiatives.

• Broadband Connectivity for Rural Areas
• Broadband connectivity to be provided to all government secondary schools and primary health centres in rural regions.
• Expansion of Medical Education
• Addition of 10,000 seats, with a goal of adding 75,000 medical seats over the next 5 years.
• PM SVANidhi Revamp
• Revamping of the scheme with enhanced loans from banks, UPI-linked credit cards, and capacity-building support.
• Welfare of Online Platform Workers
• Registration on the e-Shram portal and healthcare support under the PM Jan Arogya Yojana.
• Support to States for Infrastructure Development
• 50-Year Interest-Free Loans to States
• ₹1.5 lakh crore allocated for 50-year interest-free loans for capital expenditure and incentivizing reforms.
• Jal Jeevan Mission
• Extension of the mission until 2028 with an enhanced total outlay to achieve 100% coverage of drinking water supply.
• Power Sector Reforms
• Incentives for distribution reforms and intra-state transmission augmentation.
• Additional borrowing of 0.5% of GSDP to states, contingent on reform implementation.
• Asset Monetization Plan (2025-30)
• Launch of the plan to raise ₹10 lakh crore through asset monetization, to fund new infrastructure projects.

• Urban Challenge Fund
• ₹1 lakh crore allocated for implementing proposals like 'Cities as Growth Hubs' and 'Creative Redevelopment of Cities'.
• Maritime Development Fund
• Corpus of ₹25,000 crore to finance long-term maritime development projects with up to 49% government contribution.
• Nuclear Energy Mission for Viksit Bharat
• Amendments to Atomic Energy and Civil Liability Laws
• Amendments to facilitate private sector participation in nuclear energy development.
• UDAN Scheme for Regional Connectivity
• Expansion of regional connectivity to 120 new destinations, aiming to carry 4 crore passengers in the next 10 years.

• Bihar’s Greenfield Airports and Koshi Canal Projects
• Financial support for greenfield airports and projects like the Western Koshi Canal ERM (Eastern Region Management) project in Bihar.

• Tourism for Employment-Led Growth
• SWAMIH Fund-2
• ₹15,000 crore allocated to complete 1 lakh dwelling units through blended finance for urban development.

• Development of Top 50 Tourist Destinations
• Collaborative development of tourist destinations with states, boosting tourism and local economies.
• Streamlined E-Visa Facilities
• Introduction of simplified e-visa facilities for easier travel.
• Intensive Skill Development Programmes
• Skill development initiatives targeted at youth to improve employability in tourism-related sectors.
• Performance-Linked Incentives to States
• Financial incentives to states for improving tourism infrastructure and attracting investments.
• MUDRA Loans for Homestays
• MUDRA loans to facilitate homestay businesses, supporting rural tourism and entrepreneurship.

• Ease of Travel and Connectivity
• Improvements in travel facilities and connectivity to key tourist destinations, enhancing accessibility.
• Investing in People, Economy, and Innovation
• PM Research Fellowship
• Provision of 10,000 fellowships for technological research in IITs and IISc to promote innovation and research.
• Gene Bank for Crops Germplasm
• Establishment of the 2nd Gene Bank with 10 lakh germplasm lines for future food and nutritional security.
• Gyan Bharatam Mission
• Documentation and conservation of over 1 crore manuscripts of Indian heritage.
• Establishment of a National Digital Repository for Indian knowledge systems to facilitate knowledge sharing.

• Research, Development & Innovation
• Allocation of ₹20,000 crore to implement private sector-driven research, development, and innovation initiatives.
• National Geospatial Mission
• Development of foundational geospatial infrastructure and data.
• Utilization of PM Gati Shakti to modernize land records, urban planning, and infrastructure projects.
• Promoting Exports
• Export Promotion Mission
• Setting up sector-specific targets to facilitate easy access to export credit.
• Offering assistance to MSMEs in overcoming non-tariff barriers in foreign markets.
• BharatTradeNet (BTN)
• Creation of BharatTradeNet, a digital platform for international trade, to streamline trade documentation and financing solutions.

• Warehousing Facility for Air Cargo
• Upgrading infrastructure and warehousing facilities for air cargo.
• Special focus on high-value perishable horticulture produce.
• Enhancing export capabilities through improved logistics.
• Financial Sector Reforms and Development
• Grameen Credit Score Framework
• Introduce a framework to serve the credit needs of Self-Help Group (SHG) members and people in rural areas.
• NaBFID Partial Credit Enhancement Facility
• NaBFID (National Bank for Financing Infrastructure and Development) will establish a facility.
• The facility will enhance credit for corporate bonds.
• The aim is to support infrastructure development.

• FDI Limit Increase in Insurance Sector
• Foreign Direct Investment (FDI) limit for the insurance sector will be raised from 74% to 100%.
• Tax Reforms
• Changes in Direct Taxes
• Introduction of changes in direct taxes, including the proposal for a new Income Tax Bill.
• Regulatory Reforms
• FSDC Mechanism
• Establishment of the Financial Stability and Development Council (FSDC) to evaluate financial regulations and create a responsive framework for sectoral development.
• Jan Vishwas Bill 2.0
• Decriminalization of more than 100 provisions in various laws to ease regulatory burdens.

• Indirect Tax Proposals
• Sector-Specific Proposals
• Make in India: Exemption for certain sectors like LED/LCD TV cells, textiles looms, and lithium-ion batteries for mobile phones and EVs.
• Export Promotion: Duty-free inputs for handicrafts and leather sectors.

• Improved Access to Lifesaving Medicines
• Addition of 36 lifesaving drugs to the exempted list, and 6 medicines to the 5% duty list, including drugs for rare diseases, cancer, and chronic conditions.
• Direct Tax Proposals
• Personal Income Tax Reforms

• Tax Deduction Benefits:
• Senior citizens’ tax deduction limit increased from ₹50,000 to ₹1 lakh.
• TDS on rent limit increased from ₹2.40 lakh to ₹6 lakh annually.
• Incentives for Small Charitable Trusts
• Increased registration period for small charitable trusts/institutions from 5 years to 10 years.
• Property Tax Relief
• Taxpayers allowed to claim the annual value for two self-occupied properties without any conditions.

• Employment and Investment
• Provision of tax certainty for the electronics manufacturing sector.
• Introduction of a tonnage tax scheme for inland vessels.
• Extension of the deadline for the incorporation of startups by 5 years.

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