Union Budget 2025: Five Key Highlights Shaping India’s Economic Future

The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, introduces significant reforms aimed at stimulating economic growth, supporting the middle class, and enhancing various sectors. Here are the five major highlights:

1. Substantial Income Tax Reforms

In a move to boost consumption and provide relief to the middle class, the government has raised the income tax exemption threshold to ₹12 lakh under the new tax regime. This change means individuals earning up to ₹12 lakh annually will not be liable to pay income tax. Additionally, tax slabs have been restructured to benefit those with incomes up to ₹24 lakh, aiming to increase disposable income and stimulate economic activity.

2. Strategic Focus on Agriculture

The budget introduces the Prime Minister Dhan-Dhaanya Krishi Yojana, a comprehensive plan to enhance agricultural productivity and farmer welfare. A six-year mission has been launched to achieve self-reliance in pulse production, focusing on crops like Tur, Urad, and Masoor. Additionally, the establishment of a Makhana Board in Bihar aims to promote the cultivation and marketing of this unique aquatic crop.

3. Boosting Research, Development, and Innovation

Recognizing the importance of innovation in driving economic growth, the government has allocated ₹20,000 crore to implement a private sector-driven research, development, and innovation initiative. The PM Research Fellowship will provide ten thousand fellowships for technological research in IITs and IISc, fostering a culture of innovation and supporting the nation’s technological advancement.

4. Promotion of Exports and Manufacturing

To enhance the competitiveness of Indian products in the global market, the budget proposes exemptions for components used in electronics and electric vehicles, such as open cells for LED/LCD TVs and capital goods for lithium-ion batteries. These measures aim to incentivize domestic manufacturing and boost exports in these high-growth sectors.

5. Support for Startups and MSMEs

The budget outlines several initiatives to bolster startups and Micro, Small, and Medium Enterprises (MSMEs). Notably, the abolition of the angel tax is expected to facilitate capital raising for early-stage startups, crucial for their growth and innovation. Additionally, simplified tax compliance measures, including the withdrawal of outstanding direct tax demands, aim to ease business operations for around one crore taxpayers.

These strategic initiatives in the Union Budget 2025 reflect the government’s commitment to fostering economic growth, supporting key sectors, and enhancing the overall prosperity of the nation.