News Brief
No Tax Up To Rs 12 Lakh, Infra, Agriculture And MSME Push, And More— Key Takeaways From FM Sitharaman's Budget Speech
FM Sitharaman
Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26 on Saturday (1 February), outlining a strategy that includes tax cuts, capital investments, and targeted economic reforms while maintaining a fiscal deficit target of 4.4 per cent of GDP.
The budget aims to stimulate demand, support key sectors like agriculture and MSMEs, and drive infrastructure development, with an emphasis on private sector participation.
Key Takeaways from Budget 2025-26
Taxation & Fiscal Management
Income up to Rs 12 lakh effectively tax-free under the new tax regime, benefiting salaried individuals and small businesses.
TDS and TCS thresholds increased, reducing compliance burdens.
Fiscal deficit target set at 4.4 per cent of GDP, down from 4.8 per cent in FY25.
Market borrowings set at Rs 11.54 lakh crore, with gross borrowing at Rs 14.82 lakh crore.
Agriculture & Rural Development
PM Dhan-Dhaanya Krishi Yojana launched to improve agricultural productivity in 100 underperforming districts.
Kisan Credit Card (KCC) loan limit increased from Rs 3 lakh to Rs 5 lakh.
Pulses Self-Sufficiency Mission introduced, focusing on Tur, Urad, and Masoor production.
Cotton Productivity Mission announced to enhance yield and farmer incomes.
A new urea plant in Assam (12.7 lakh MT capacity) to improve fertilizer availability.
MSMEs & Startups
MSME credit guarantee limit increased to Rs 10 crore, unlocking an estimated Rs 1.5 lakh crore in loans.
Rs 10,000 crore Fund of Funds introduced for deep-tech and manufacturing startups.
MSME Credit Cards launched, providing Rs 5 lakh limits to small businesses.
Support for first-time entrepreneurs, with loans up to Rs 2 crore for women and SC/ST founders.
Incentives for labor-intensive industries, including footwear, leather, and toy manufacturing.
Infrastructure & Investment
Rs 1.5 lakh crore interest-free loans to states for capital projects.
Rs 10 lakh crore Asset Monetisation Plan to fund new infrastructure projects.
Public-Private Partnership (PPP) projects to attract private investment.
Western Koshi Canal project to enhance irrigation for 50,000 hectares of farmland.
Urban Development & Social Sector
Jal Jeevan Mission extended to 2028, targeting 100 per cent tap water coverage in rural households.
Rs 1 lakh crore Urban Challenge Fund launched to support city modernisation.
50,000 Atal Tinkering Labs to be set up in government schools.
Expansion of healthcare infrastructure:
10,000 additional medical seats to be added.
200 new Day-Care Cancer Centres planned in district hospitals.
Support for gig workers & street vendors:
PM SVANidhi credit limit raised to Rs 30,000 via UPI-linked credit cards.
Health insurance coverage expanded under PM-JAY.
Energy & Manufacturing
100 GW Nuclear Energy target by 2047, allowing private sector participation.
Rs 20,000 crore Deep-Tech Research & Innovation Fund to support AI, robotics, and advanced manufacturing.
Investment in clean energy, including solar PV, EV batteries, wind turbines, and hydrogen fuel tech.
Rs 25,000 crore Maritime Development Fund to boost India’s shipbuilding sector.
Trade & Export Growth
BharatTradeNet (BTN) to be launched to streamline export logistics and trade finance.
New Export Promotion Mission launched to enhance India’s global trade competitiveness.
Support for Global Capability Centers (GCCs) in Tier-2 cities, expanding India's IT and business service exports.
