New Delhi: The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman in Parliament today, marks the first full budget of Modi government's third term. As India positions itself as a leading global economy, this budget aims to balance growth aspirations with fiscal prudence. Here are 10 key points you cannot miss from this year's financial blueprint.
- Economic Growth Trajectory The Finance Minister outlined the government's vision for maintaining India's position as one of the world's fastest-growing major economies. The budget presentation began with a comprehensive overview of the country's economic performance, highlighting key macroeconomic indicators and growth projections for the upcoming fiscal year. The Economic Survey, tabled a day before, has set the context for the government's economic agenda.
- Tax Structure Reforms In response to long-standing expectations, the budget introduced significant modifications to the income tax framework. The changes aim to simplify the tax structure while ensuring compliance and expanding the tax base. Special attention has been paid to middle-class taxpayers, with adjustments in tax slabs and deduction limits that could impact millions of Indians.
- Infrastructure Push Continuing the government's focus on infrastructure development, substantial allocations have been made for transportation, energy, and urban development projects. The budget emphasizes the expansion of highways, railways, and ports, along with significant investments in renewable energy infrastructure to support India's green growth initiatives.
- Digital India Initiatives Building on the success of India's digital transformation, the budget allocated substantial resources to strengthen the digital infrastructure. New programs have been announced to boost digital payments, improve internet connectivity, and promote technology adoption across sectors, particularly in rural areas.
- Agricultural Sector Support With agriculture remaining a crucial sector of the economy, the Finance Minister announced comprehensive measures to support farmers and enhance agricultural productivity. The budget includes provisions for modernizing farming techniques, improving irrigation facilities, and strengthening the agricultural supply chain.
- Healthcare and Education Focus Post-pandemic lessons have influenced significant allocations for healthcare infrastructure and medical education. The education sector received attention with new initiatives for skill development, digital learning, and higher education reforms to prepare India's workforce for future challenges.
- Manufacturing and Make in India To boost domestic manufacturing and support the Make in India initiative, the budget introduced several incentives for manufacturing sectors. Special emphasis has been placed on emerging technologies, semiconductor manufacturing, and green technologies to position India as a global manufacturing hub.
- MSME Sector Support Recognizing the crucial role of MSMEs in the economy, the budget outlined specific measures to support small businesses. These include easier access to credit, technological upgradation support, and simplified compliance procedures to facilitate ease of doing business.
- Green Growth Initiatives Environmental sustainability features prominently in this year's budget, with substantial allocations for clean energy projects, electric mobility, and climate change mitigation efforts. New incentives have been announced for adopting green technologies across industries.
- Social Security Measures The budget maintains its focus on social welfare with enhanced allocations for various government schemes. Special provisions have been made for women empowerment, senior citizens, and economically weaker sections of society.
The budget session, which began with President Droupadi Murmu's address to the joint sitting of Parliament, will continue in two parts until April 4, with 27 sittings planned. The first part will conclude on February 13, followed by a recess for parliamentary committees to examine the budget proposals. The session will reconvene on March 10 for the second part.
This budget is particularly significant as it sets the economic agenda for the next fiscal year while addressing current global economic challenges. The government has also listed 16 important bills for consideration during this session, including the Banking Laws (Amendment) Bill and The Railways (Amendment) Bill, signaling major reforms across sectors.
As various stakeholders analyze the implications of these announcements, the success of Budget 2025 will depend on effective implementation of these measures and their impact on India's economic growth trajectory in the coming years.
