Budget 2025 Live Updates: Finance Minister Nirmala Sitharaman has unveiled the Union Budget 2025-26, marking her historic eighth consecutive budget speech. With Prime Minister Narendra Modi’s administration embarking on its third term, this budget is being closely scrutinized for its approach to economic challenges and fiscal management.
Major Highlights from Budget 2025:
Tax & Customs Duty Revisions
- Life-Saving Drugs: 36 essential medicines and drugs will now be fully exempt from basic customs duty to make healthcare more affordable.
- Customs Assessment: The provisional assessment period for customs has been capped at two years to ensure a streamlined process.
- Tariff Simplification: The government has proposed eliminating seven tariff slabs, reducing the total to just eight to simplify trade regulations.
- Duty Adjustments:
- Flat panel display duties will rise from 10% to 20%.
- Fish paste import duty will drop from 30% to 5%.
- Electric vehicle (EV) manufacturing will receive duty exemptions on 35 capital goods.
Fiscal Management & Economic Growth
- Fiscal Deficit: The deficit is set at 4.8% for FY25, with a target of 4.4% for FY26.
- Debt Reduction Strategy: The government plans a phased approach to reducing national debt while maintaining fiscal discipline.
- Foreign Investment: The FDI limit in insurance has been raised from 74% to 100%, encouraging greater investment in the sector.
- Bilateral Investment Treaty: A model treaty will be drafted to attract foreign investors and boost global confidence in the Indian market.
Infrastructure & Transportation
- Maritime Development: A ₹25,000 crore Maritime Development Fund will be established to support shipbuilding. The government will contribute 49% of this fund.
- Urban Growth: A ₹1 lakh crore Urban Challenge Fund will finance bankable infrastructure projects, with ₹10,000 crore allocated for 2025-26.
- UDAN Scheme Expansion: The revamped scheme will connect 120 new destinations and cater to 4 crore passengers over the next decade. Additionally, greenfield airports will be developed in Bihar.
- Western Kosi Canal Project: Financial assistance will be extended for the Western Kosi Canal Project in the Mithilanchal region of Bihar.
Support for Businesses & Workforce
- Gig Economy Reforms: The government will introduce identity cards and registration mechanisms for gig workers to formalize their employment and improve social security benefits.
- MSME Export Support: The Commerce Ministry and MSMEs will collaborate on an export promotion initiative to help small businesses overcome non-tariff barriers.
- PPP Model for Infrastructure: A three-year pipeline of infrastructure projects will be developed under the Public-Private Partnership (PPP) mode.
- Grameen Credit Score: Banks will be mandated to maintain a credit score for self-help groups, enabling better financial inclusion.
Technology, Energy & Innovation
- Nuclear Energy Expansion: India aims to generate 100 GW of nuclear power by 2047, with ₹20,000 crore allocated for small modular reactor R&D.
- DeepTech Investment: The government will explore a DeepTech Fund of Funds, supporting research and 10,000 tech fellowships at IITs and IISc under the PM Research Fellowship Scheme.
- PM Gati Shakti Initiative: Private sector access to PM Gati Shakti data will be enabled to enhance logistics and develop 50 top tourist destinations in collaboration with state governments.
Education, Healthcare & Social Welfare
- Medical Education Expansion: An additional 10,000 seats will be introduced in medical colleges, with a five-year goal of 75,000 new seats. Also, 200 cancer centers will be developed in 2025-26.
- AI in Education: A Centre of Excellence for AI in Education will be set up with a ₹500 crore allocation to integrate AI-driven learning.
- Atal Tinkering Labs: 50,000 new ATLs will be established in government schools over the next five years, alongside broadband access for all secondary schools.
- Saksham Anganwadi & Poshan 2.0: Nutrition programs will benefit 8 crore children, 1 crore mothers, and 20 lakh adolescent girls.
- Skill Development: Five National Centres of Excellence will train youth in global industries, alongside expanded infrastructure in newer IITs for 6,500 additional students.
- Medical Tourism: India will promote medical tourism under the ‘Heal in India’ initiative, partnering with private players.
- Mudra Loans for Homestays: Entrepreneurs running homestays can now avail Mudra loans to support the tourism sector.
Manufacturing & Industry-Specific Boosts
- ‘Make in India’ Manufacturing Mission: A new manufacturing mission will support solar PV cells, electrolysers, and grid-scale batteries under the Make in India initiative.
- Sustainable Toy Manufacturing: India will promote locally made, sustainable toys with an emphasis on global markets.
- Footwear & Leather Industry: A dedicated scheme will generate 22 lakh jobs, boost revenues to ₹4 lakh crore, and increase exports to ₹1.1 lakh crore.
- Food Tech Development: A National Institute of Food Technology will be set up in Bihar to support entrepreneurship and enhance farmers’ earnings.
Welfare & Inclusivity Initiatives
- SC/ST Women Empowerment: A new scheme will offer 5-year term loans for 5 lakh women from SC/ST communities.
- Fund of Funds (FoF): A fresh ₹10,000 crore FoF will expand the government’s startup support initiatives, building on existing commitments exceeding ₹9 lakh crore.
- Gig Worker Benefits: The PM Swanidhi Scheme will offer higher loan limits and introduce a ₹30,000 UPI-linked credit card for urban workers.
- Jal Jeevan Mission: The scheme will be extended with an increased focus on quality water infrastructure and operations & maintenance. 15 crore households now have access to potable tap water under this initiative.
Click here to know more.
Kishan is an experienced writer with in-depth knowledge of exam preparation, government schemes, and government job updates. He specializes in creating well-researched and informative content on competitive exams, policies, and educational topics. His writing style is clear, concise, and easy to understand, making complex subjects accessible to readers.