Internship Task #15

Presented By: Tarun S Shende

Title: "Budget 2025-2026: Key Policies and
Economic Outlook"
Among the big economies, ours is the one that is expanding the fastest. Our
administration is continuing its efforts to stimulate growth with the Budget
2025–2026.The government of India efforts to ensure inclusive growth,
improve household sentiment, and strengthen the middle class's influence in
India are maintained in the Budget 2025–2026.

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Garib, Youth, Annadata and Nari focus of Budget, says FM: Paying attention to
women, farmers, youth, and farmers (GYAN).
Focus topics include securing energy supply and encouraging exports. Power
plants for exports, SMEs, and agriculture expansion.
Agri as the first engine of growth: Establishing an agri-districts program that
will be modeled after the concept of the aspirational district. 1.7 cr farmers will
benefit from crop diversification, irrigation infrastructure, and finance
availability. The plan will increase post-harvest storage and implement crop
diversity. It will benefit farmers by 1.7 cr.
Masur, Tur, and Urad will receive extra attention in the aim to help Pulses
become self-sufficient. As part of DHAN DHANYA YOJANA, farmers will supply
pulses to Nafed and NCCF. In Bihar, a Makhana Board will be established.
Launch of a national mission on high-yielding seeds.

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One hundred districts with low productivity will be the focus of the Dhan
Dhanya Krishi Yojana. Agri Plan To Cover 100 Districts With Low Productivity,
Agri Program To Assist 1.7 Cr Farmers, Aatmanirbharta in the sector is the goal
of the National Mission for Edible Oil & Seeds, which will launch a six-year
mission to become Aatmanirbhar in pulses. In the next four years, central
agencies will procure Tur, Urad, and Masur, and a Makhana Board will be
established in Bihar to enhance processing and value addition.

The budget seeks "transformative" improvements in six areas, according to the

finance minister: taxation, banking and electricity sectors, urban development,
mining, and regulatory reforms.

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MSMEs is the 2nd engine of growth: 45% of India's exports are from MSMEs.
MSMEs' classification limit was raised in order to support their expansion.
Customized credit cards will be provided to microbusinesses.
A fresh scheme for term loans for the next five years would be introduced for
five lakh women and first-time business owners. The Startup Credit Guarantee
Scheme was raised to 20Cr. FM said it would establish a Manufacturing mission
to help industries with policies.

Investment is the 3rd engine of growth: A initiative called Saksham Anganwadi

and Poshan 2.0m will help 8 crore children. Within the next five years,
government schools will have Atal Tinkering Labs.

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Bhasha Pustak Bharatiya Five national centers of excellence for skilling will be
established, together with a mother tongue language scheme and a national
manufacturing mission to boost clean tech manufacturing to assist local
production of solar panels and EV batteries. After 2014, five IITs will begin
building additional infrastructure to accommodate an additional 6,500
students.
Infra: A three-year list of Public Private Partnership (PPP) projects would be
developed by each infrastructure ministry, together with three PPP proposals,
interest-free capital expenditure loans of Rs 1.5 lakh crore, and reform
incentives.
Launch of the 2025–30 asset monetization strategy.
Urban challenge fund & Capex linked loans: For FY26, state capital
expenditure-linked loans totaling 1.5 lakh crore would be established, and an
urban challenge fund of Rs 1 lakh crore will be established for city
reconstruction.
Viksit Bharat's nuclear energy mission: 100 GW of nuclear power.
maritime sector: The government will resume its shipbuilding financial aid
program as it promotes shipbuilding. Clusters of shipbuilding will be supported.
The establishment of a maritime development fund with a Rs 25000 cr capital
is planned.
UDAN scheme: The construction of 120 new airports under the New Udaan
program will enable travel for an extra 4 crore people over the next ten years,
up from the present 1.5 crore. Players in the travel and tourist industry are
anticipated to gain from this. This is anticipated to help OTA companies like
Ixigo and Yatra as well as airlines like IndiGo. Hotel operators including Indian
Hotels, Lemon Tree, and EIH Hotel will also profit in addition to these.

SWAMI scheme: 40,000 more housing units need to be finished after 50,000
have already been constructed. A Rs 15,000 crore SWAMI Fund 2 will be
launched.
PM Gatishakti data for private sector: The private sector will have access to
pertinent data and maps, and tourism will contribute to growth driven by jobs.
The top 22 locations will be created in collaboration with the states.

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Along with the PVT industry, medical tourism and healing in India would be
pushed, with streamlined visa requirements.
Exports is 4th engine of growth: Established an export promotion mission with
ministerial and sectoral goals. For finance solutions, digital public infrastructure
for global commerce will be established.
The integration of indigenous industry into international supply chains will be
supported. States are guided by a national framework to encourage GCCs in
tier two cities.
Insurance FDI hiked 74% to 100%: In the past, the government has
implemented five vivad se vishwas programs, faceless assessment, and quicker
tax returns. FDI in insurance increased 74% to 100%.
mergers: The scope of such regulations will be broadened, and quick approvals
for business mergers would be guaranteed. The government has demonstrated
a strong commitment to making business easier. The government will create a
contemporary, approachable, and trustworthy regulatory system.
Jan Vishwas In order to decriminalize more than 100 clauses, Bill 2.0 will be
submitted. 2025 will see the introduction of an investment-friendly ranking of
states.
FD 4.8 percent FY25: FY25's fiscal deficit was 4.8%, while FY26's was projected
to be 4.4%.As intended, the fiscal deficit as a proportion of GDP is decreasing.
The updated capex estimate of INR 10.18 lakh crore is less than the FY25 BE.
BCD: Encourage a ten-year extension of the BCD exemption for ship and
component manufacturing.
Gross and net borrowing for FY26 is budgeted at Rs 14.82 lakh: For FY26, the
government has budgeted Rs 14.82 lakh crore for gross borrowing and Rs 11.54
lakh crore for net borrowing. The anticipated market issuances are nearly
identical to those of FY25. For FY25, the gross and net borrowing amounts
were Rs 14.13 lakh crore and Rs 11.75 lakh crore, respectively. In FY26,
government borrowing is unlikely to gradually displace private credit given the
current level of G-Sec supply. The G-Sec rally will be strengthened by the
restricted supplies.
Gig economy in focus: In a move that acknowledges their efforts and gives
them greater social security benefits, FM Nirmala Sitharaman announced
during the presentation of the Union Budget 2025 that one crore gig workers,

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particularly those using online platforms like Swiggy, Zomato, Zepto, BigBasket,
and several others, would now receive ID cards. Additionally, the PM Jan
Arogya Yojana will provide healthcare benefits to one crore gig workers;
enrollment will be completed via the e-Shram platform. The statements are
made at a time when India's fast commerce industry is expanding rapidly,
reaching a $6 billion market in only four years. It is anticipated that this action
will increase social security in the rapidly expanding online community.
TDS and TCS threshold for sr citizens: TDS threshold for older people increased
from Rs 50,000 to Rs 1 lakh.
Make India: The government has lowered the Basic Customs Duty (BCD) on
open cell and other components for LCDs and LEDs to 5% and increased the
BCD on interactive flat panel displays from 10% to 20% in order to promote
Make India and local electronic production. Dixon Technologies and other
contract manufacturers will profit from the change.
National savings scheme: FM suggests removing the tax exemption for
withdrawals made from National Savings Scheme (NSS) accounts. Suggest
extending the startup incorporation time to five years.
According to the FM, income tax is not due up to Rs 12 lakh.
Income Tax Exemption Limits:
2005: ₹1 lakh
2012: ₹2 lakhs
2014: ₹2.5 lakhs
2019: ₹5 lakhs
2023: ₹7 lakhs
2025: ₹12 lakhs
Tax regime: The government has reduced the income tax liability. The nil tax
slab was increased from Rs 7 lakh to Rs 12 lakh during the previous
administration. The new tax system has reduced tax slabs and liabilities, giving
income earners in the Rs 12 lakh to Rs 25 lakh bracket benefits ranging from Rs
70,000 to Rs 1.1 lakh. Consumers would have more discretionary money if
taxes were reduced. This is good for businesses that deal with discretionary
consumption, like Trent Limited and Aditya Birla Fashion & Retail in the apparel
industry; Metro Brands and Campus Activewear in the footwear industry; quick
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service restaurants like Devyani International and Jubilant Foodworks; and
jewelry stocks like Senco Gold, Titan Company, and Goldiam International.

GDP growth: The presentation of the Union Budget comes as GDP growth is
expected to fall to 6.4% in FY24, which is close to the decadal average and the
lowest level in four years. According to the Economic Survey, growth in FY26
would be between 6.3-6.8%, far slower than what is required to reach the 2047
Viksit Bharat (Developed India) target. The poll highlights how urgently land
and labor reforms are needed to spur economic growth and move the nation
closer to its long-term development goals.

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