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Decoding the Indian Union Budget 2025-2026: What You Need to Know

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Key highlights from the Indian Union Budget 2025-26 focus on agriculture, infrastructure, MSMEs, and renewable energy, emphasizing growth and development across sectors.
Key highlights from the Indian Union Budget 2025-26 focus on agriculture, infrastructure, MSMEs, and renewable energy, emphasizing growth and development across sectors.

The Union Budget 2025-26, presented by the Finance Minister Smt. Nirmala Sitharaman, outlines India's strategic roadmap for economic growth, focusing on agriculture, MSMEs, investments, exports, and reforms. Here's a concise breakdown of the budget's significant highlights:


1. Fiscal Overview

  • Total Receipts (excluding borrowings): ₹34.96 lakh crore

  • Total Expenditure: ₹50.65 lakh crore

  • Net Tax Receipts: ₹28.37 lakh crore

  • Fiscal Deficit: 4.4% of GDP

  • Capital Expenditure: ₹11.21 lakh crore (3.1% of GDP)


2. Agriculture and Rural Development

  • Prime Minister Dhan-Dhaanya Krishi Yojana: Targets 100 low-productivity districts to benefit 1.7 crore farmers.

  • Mission for Aatmanirbharta in Pulses: Focus on Tur, Urad, and Masoor with NAFED and NCCF procurement support.

  • Makhana Board in Bihar: Enhancing production, value addition, and marketing.

  • Enhanced Credit: Kisan Credit Card (KCC) loan limit increased from ₹3 lakh to ₹5 lakh.


3. MSME Growth Initiatives

  • Revised Classification Criteria: Enhanced investment and turnover limits.

  • Credit Cards for Micro Enterprises: Customized cards with a ₹5 lakh limit.

  • Support for Startups: New Fund of Funds with ₹10,000 crore allocation.


4. Investments and Infrastructure

  • Public-Private Partnerships: A 3-year project pipeline in PPP mode.

  • Urban Development: ₹1 lakh crore Urban Challenge Fund.

  • Jal Jeevan Mission Extension: Until 2028 with increased outlay.

  • Nuclear Energy Mission: Focus on Small Modular Reactors with ₹20,000 crore.


5. Education and Skill Development

  • 50,000 Atal Tinkering Labs: In government schools.

  • Expansion of IITs: Additional infrastructure for 6,500 students.

  • AI Centre of Excellence: With a ₹500 crore outlay for education.


6. Tax Reforms

  • No Income Tax up to ₹12 Lakh: New tax regime with simplified slabs.

  • Standard Deduction: ₹75,000 for salaried taxpayers.

  • Rationalization of TDS/TCS: Simplified rates and thresholds.


7. Export Promotion and Trade

  • BharatTradeNet: A unified platform for international trade.

  • Support for Key Sectors: Leather, marine products, and handicrafts with reduced duties.


8. Social Welfare Initiatives

  • PM SVANidhi Revamp: Enhanced loans and UPI-linked credit cards.

  • Social Security for Gig Workers: Identity cards, health coverage, and registration under e-Shram.


Sectors Likely to Attract More Investors


The Union Budget 2025-26 has set the stage for significant investor interest in various sectors due to strategic reforms and financial incentives:

  • Renewable Energy: The focus on the Nuclear Energy Mission and sustainable energy projects, including Small Modular Reactors, positions this sector as a major attraction for both domestic and foreign investors.


  • Infrastructure: With a strong emphasis on public-private partnerships and an expanded Urban Challenge Fund, infrastructure development projects will likely see increased investment.


  • Agriculture and Agri-Tech: Enhanced credit facilities, the introduction of the Prime Minister Dhan-Dhaanya Krishi Yojana, and support for agri-tech innovations create robust growth opportunities.


  • Technology and Startups: The allocation for AI Centres of Excellence and increased funding for startups will boost the technology ecosystem.


  • Healthcare: Investments in expanding medical education and setting up Day Care Cancer Centres highlight growth prospects in the healthcare sector.


  • Manufacturing: Initiatives under "Make in India," including support for MSMEs and the focus on domestic production, will encourage manufacturing sector investments.


Conclusion

The Union Budget 2025-26 focuses on sustainable development, technological innovation, and inclusive growth. With strategic investments in agriculture, MSMEs, education, and infrastructure, it aims to propel India towards a resilient and self-reliant future.

Stay updated on India's economic progress with these budget insights!


 

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