Union Budget 2025: Key Highlights
Union Budget 2025: Government Announces Major Economic and Infrastructure Boost in Latest Budget.
The government has presented a package of transformative measures for the upliftment of infrastructure, industry, and social welfare in the entire country. Focusing on economic development, digitalization, and financial inclusion, the budget brings with it various interest-free loans, subsidies, and incentives for different sectors.
Massive Financial Support for States and Key Sectors
1- The government has reserved a 1.5 lakh crore interest-free loan to states for the next 50 years to speed up development schemes.
2- It also has reserved a ₹20,000 crore exclusively for nuclear power development, therefore pushing the states towards sustainable, clean energy sources.
3- Special package for Bihar will include a greenfield airport, the Western Kosi Canal project, enhancements in the Mithilanchal railway, and expansion of IIT Patna.
Infrastructure and Tourism Development
For strengthening regional connectivity, 120 cities will be connected with domestic airports for better mobility within the country.
Moreover, India’s top 50 tourist destinations will be developed under the PPP model, so that it will generate employment and boost the tourism sector.
To support small enterprises, the government has decided to provide loans under the **Mudra scheme** for homestay activities and enhanced the turnover of this scheme from ₹250 crore to ₹500 crore.
Boost to Insurance and Education Sectors
In a major reform, Foreign Direct Investment (FDI) in the insurance sector will be increased from 74% to 100%, encouraging global participation and expansion of insurance services.
To upgrade education infrastructure, IIT seats will be doubled and 7,500 additional medical seats will be added. Besides, primary and secondary schools will be connected with board bank connectivity and digital books and 50,000 Atal Tinkering Labs will be established to inculcate innovation among the students.
Healthcare and Pharmaceutical Relief
In a step towards making health accessible, 36 cancer medicines and 6 life-saving drugs will be made duty-free. In addition to this, 200 new cancer treatment centers will be constructed to make the medical facilities more effective.
Boosting Electric Vehicles and Manufacturing
Strong emphasis on sustainability and reducing the dependency on imports will be there: Incentives for battery production, electric vehicles, and electronic manufacturing will be enhanced. Subsequently, the price of mobile phones, LCDs, and LEDs is going to come down.
Financial Support to Small and Medium Enterprises (SMEs)
In an attempt to empower the small businesses, the textile industries, shoe and leather industries are going to get government support.
Special food hubs and toy hubs will be formed to help farmers, and the vegetables and fruits will be subsidized.
In addition, cotton industries will be granted subsidies, while small businesses are eligible for a loan of ₹5 crore, and the limit of the MSME loan has been doubled from ₹5 crore to ₹10 crore while start-up loans can now stand between ₹10 crore to ₹20 crore, and an MSME customized credit card with ₹5 lakh credit limit will also be introduced.
Agriculture and Rural Development Initiatives
For supporting the agricultural sector, the limit of the Kisan Credit Card has been raised from ₹3 lakh to ₹5 lakh and 100 districts will be developed for the development of agriculture production. For enhancing financial inclusion, five lakh SC/ST women will get loans for their business.
Postal and Banking Reforms
It is going to provide the post office as a logistics partner and increasing Indian post banks to provide more financial services.
– Tax and Financial Benefits
– Tax exemption of salaried employees increased up to ₹12 lakh
– Senior citizen interest rate exemption raised from ₹50,000 to ₹1 lakh
– TDS on rent now exempted up to ₹6 lakh
– Safe harbor for NRIs investing in electronic businesses
– Delivery personnel to receive insurance benefits
Incentives for Housing, Shipping, and Fishing Industry
The government has also provided social welfare and industry growth through other provisions such as:
– Development of one lakh housing units
– Income tax returns can be revised up to four years
– Shipping and building raw materials exempt from basic custom duty
– Fishery custom duty reduced to 5%
Conclusion
Its budget is holistic in its approach toward economic growth through different initiatives on infrastructure, tourism, education, health, and entrepreneurship. The major investment in agriculture, manufacturing, and small businesses will create more opportunities while propelling financial inclusivity and resilience in the economy. These initiatives can be expected to give a substantial boost to the nation’s economy in the coming year.
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