The Union Budget for 2025-2026, presented by Finance Minister Nirmala Sitharaman, introduces several key changes aimed at boosting the economy and supporting various sectors. Here’s a breakdown of the main points of India Union Budget:
Income Tax Reforms
One of the most significant changes is in personal income tax. Now, individuals earning up to ₹12 lakh annually (that’s ₹1 lakh per month) will not have to pay any income tax under the new regime. For salaried individuals, this limit is slightly higher at ₹12.75 lakh per year, thanks to a standard deduction of ₹75,000. This move is expected to increase household savings and spending.
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Agriculture Initiatives
The government is launching the ‘Prime Minister Dhan-Dhaanya Krishi Yojana’ to help farmers in 100 districts with low productivity. This program aims to improve crop yields, encourage growing different types of crops, and enhance storage and irrigation facilities. Additionally, a six-year mission called ‘Aatmanirbharta in Pulses’ will focus on increasing the production of pulses like Tur, Urad, and Masoor. Agencies like NAFED and NCCF will support farmers by purchasing these pulses.
Support for Small and Medium Businesses (MSMEs)
Recognizing the importance of small and medium-sized enterprises, the budget proposes increasing the investment and turnover limits for classifying MSMEs. This change will help these businesses access more capital and adopt better technologies. There’s also a new scheme to provide loans of up to ₹2 crore to 5 lakh first-time entrepreneurs from among women and Scheduled Castes and Tribes over the next five years.
Investment in Infrastructure and Innovation
The budget emphasizes investing in infrastructure and innovation. It proposes setting up 50,000 Atal Tinkering Labs in government schools over the next five years to foster creativity among students. Broadband connectivity will be provided to all government secondary schools and primary health centers in rural areas. Additionally, five National Centers of Excellence for Skilling will be established to equip young people with the skills needed for modern manufacturing and technology sectors.
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Export Promotion
To boost exports, an Export Promotion Mission will be set up, involving the Ministries of Commerce, MSME, and Finance. This mission will set specific targets for different sectors to enhance India’s export performance.
Financial Sector Reforms
The budget proposes increasing the Foreign Direct Investment (FDI) limit in the insurance sector from 74% to 100%, provided the companies invest the entire premium collected in India. This move aims to attract more foreign investment into the country.
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Conclusion
The 2025-2026 India Union Budget introduces several measures aimed at stimulating economic growth, supporting farmers, empowering small businesses, and encouraging innovation. By implementing these initiatives, the government aims to build a more prosperous and self-reliant India.
As of February 2025, here is a table listing key positions in the Government of India:
| Position | Name | Assumed Office | Political Party |
|---|---|---|---|
| President | Droupadi Murmu | July 25, 2022 | Independent |
| Vice President | Jagdeep Dhankhar | August 11, 2022 | Independent |
| Prime Minister | Narendra Modi | May 26, 2014 | Bharatiya Janata Party (BJP) |
| Minister of Defence | Rajnath Singh | May 30, 2019 | BJP |
| Minister of Home Affairs | Amit Shah | May 30, 2019 | BJP |
| Minister of Finance | Nirmala Sitharaman | May 30, 2019 | BJP |
| Minister of External Affairs | Subrahmanyam Jaishankar | May 30, 2019 | BJP |
