Union Budget 2025-26 Summary Presented by: Finance Minister Nirmala Sitharaman : February 1, 2025 'Viksit Bharat” — Accelerating Growth, Inclusive Development, and Structural Reforms. Key Highlights: A. Economic Growth & Fiscal Policy + GDP Growth: India remains the fastest-growing economy among major economies. + Fiscal Deficit Target: 2024-25 (Revised Estimate): 4.8% of GDP 2025-26 (Budget Estimate): 4.4% of GDP + Capital Expenditure: 210.18 lakh crore for infrastructure development. + Net Market Borrowings: 711.54 lakh crore to finance the deficit + Tax Reforms: New income tax bill to be introduced with simplified structures, B, Key Growth Engines ‘The government has identified four engines of growth: Agriculture MSMEs Investment Exports RENE Fuel: Structural Reforms inclusive & Sustainable Growth 1. Agriculture & Rural Development + Prime Minister Dhan-Dhaanya Krishi Yojana: Targets 100 low-productivity districts for improvement. 1.7 erore farmers to benefit from improved productivity, irrigation, and credit access + Mission for Aatmanirbharta in Pulses: Focus on Tur, Urad, and Masoor pulses. NAFED and NCCF will procure pulses from registered farmers. + Comprehensive Programme for Vegetables & Fruits: 2 Ensures efficient supply chains and better prices for farmers. + Cotton Productivity Mission:5-year plan to improve yields, sustainability, and promote extra-long staple cotton. Kisan Credit Card (KCC) Loans: Loan limit increased from %3 lakh to %5 lakh. Urea Plant in Assam: 12.7 lakh metric tons capacity to enhance self-reliance in fertilizers. 2. MSME & Startups New MSME Definition: Investment & turnover limits increased by 2.5x and 2x respectively. Credit Availabilit © MSMEs credit guarantee enhanced from %5 crore to 210 crore. Startups credit limit raised from 810 crore to 220 crore. Micro Enterprise Credit Cards: 25 lakh limit for Udyam-registered MSMEs. Fund of Funds for Startups: ‘New %10,000 crore allocation for startup funding, Labour-Intensive Sector Focus: Special support for footwear, leather, toys, and food processing industries. 3. Investment & Infrastructure 50-Year Interest-Free Loan to States: 21.5 lakh crore allocation, Public-Private Partnership (PPP) Boost: Ministries to create 3-year project pipelines. Jal Jeevan Mission Extended: Additional allocation to achieve 100% potable water coverage Urban Development Initiatives: > €1 lakh crore Urban Challenge Fund for smart city projects. Shipbuilding & Maritime Industry: 25,000 crore Maritime Development Fund for long-term financing. 4. Exports & Trade Promotion Export Promotion Mission: Simplified export credit access and support for MSMEs in global markets. BharatTradeNet (BTN): Digital trade documentation and financing infrastructure. Warehousing Infrastructure: 2 Air cargo warehousing and cold storage upgrades for perishable exports. Modified UDAN Scheme:Connects 120 new airports to boost regional air connectivity. 5. Energy & Sustainable Development + Nuclear Energy Mission: 100 GW target by 2047, including Small Modular Reactors (SMRs). + Renewable Energy: Push for solar PV cells, EV batteries, wind turbines, and green hydrogen. + Power Sector Reform: States to get 0.5% extra borrowing capacity for improving electricity transmission, 6. Education, Healthcare & Employment + Saksham Anganwadi & Poshan 2.0: 2 Nuttitional support for 8 crore children, pregnant & lactating women. + Expansion of ITTs & Medical Education: © Additional 10,000 medical seats in 2025 + Atal Tinkering Labs Expansion: 50,000 labs in government schools. «Gig Worker Benefits: 1 crore online platform workers to receive identity cards & healtheare. 7. Tax Reforms & Fiscal Policy Personal Income Tax Changes (New Regime) + No tax on income up to 212 lakh. «Standard Deduction for Salaried: 875,000. «New Income Tax Slabs: 0-4 lakh: Nil 24.8 lakh: 5% 8-12 lakh: 10% 16-20 lakh: 20% 220-24 lakh: 25% Above 224 lakh: 30% TDS & TCS Rationalization + Senior Citizens: Interest exemption limit doubled from 250,000 to 21 lakh, + Rent Payments: TDS exemption limit increased from 22.4 lakh to 26 lakh.+ Foreign Remittances: TCS exemption for edueation loans. Indirect Taxation + Customs Duties: © Reduction for EV batteries, textiles, electronics, and renewable energy equipment. © GST Simplifications: © Easing compliance & introducing Track and Trace Mechanism for commodities.