Executive Summary: Union Budget 2025-26

Key Themes and Objectives

1. Vision for Viksit Bharat (Developed India):

   • Zero poverty, 100% quality education, affordable healthcare, skilled labor, 70% women in economic activities, and farmers as the backbone of the food basket.

   • Focus on Garib, Youth, Annadata, and Nari (Poor, Youth, Farmers, and Women).
     

2. Four Engines of Growth:

   • Agriculture, MSMEs, Investment, and Exports.

   • Reforms as the fuel to drive these engines.
     

3. Transformative Reforms:

   • Taxation, Power Sector, Urban Development, Mining, Financial Sector, and Regulatory Reforms.
     
     

Key Proposals by Sector

1. Agriculture (1st Engine)

• Prime Minister Dhan-Dhaanya Krishi Yojana:

  • Focus on 100 low-productivity districts to enhance agricultural productivity, crop diversification, and irrigation facilities.

• Aatmanirbharta in Pulses:

  • 6-year mission to achieve self-sufficiency in Tur, Urad, and Masoor pulses.

• Makhana Board in Bihar:

  • To boost production, processing, and marketing of Makhana.

• National Mission on High Yielding Seeds:

  • Promote climate-resilient, high-yield seeds.

• Fisheries and Cotton Productivity:

  • Sustainable harnessing of fisheries and a 5-year mission to improve cotton productivity.
    
    

2. MSMEs (2nd Engine)

• Revision in MSME Classification:

  • Enhanced investment and turnover limits to support growth and employment.

• Credit Guarantee Enhancement:

  • Increased credit guarantee cover for Micro and Small Enterprises, Startups, and Exporter MSMEs.

• Fund of Funds for Startups:

  • New fund with ₹10,000 crore to support startups.

• Labour-Intensive Sectors:

  • Focus on footwear, leather, toys, and food processing sectors to boost employment.
    
    

3. Investment (3rd Engine)

• Investing in People:

  • Expansion of Saksham Anganwadi, Atal Tinkering Labs, broadband connectivity, and medical education.

• Investing in the Economy:

  • Public-Private Partnerships (PPP) in infrastructure, Asset Monetization Plan (2025-30), and Jal Jeevan Mission extension.

• Investing in Innovation:

  • Deep Tech Fund of Funds, PM Research Fellowships, and National Geospatial Mission.
    
    

4. Exports (4th Engine)

• Export Promotion Mission:

  • Sectoral targets, BharatTradeNet for trade documentation, and integration with global supply chains.

• Warehousing for Air Cargo:

  • Upgradation of infrastructure for high-value perishable goods.
    
    

Fiscal Policy

• Fiscal Consolidation:

  • Fiscal deficit target for 2025-26 at 4.4% of GDP.

• Revised Estimates for 2024-25:

  • Fiscal deficit at 4.8% of GDP.

• Market Borrowings:

  • Gross market borrowings estimated at ₹14.82 lakh crore.
    
    

Tax Reforms

Direct Taxes:

• Personal Income Tax Reforms:

  • No tax for income up to ₹12 lakh under the new regime.

  • Revised tax slabs:

    • 0-4 lakh: Nil

    • 4-8 lakh: 5%

    • 8-12 lakh: 10%

    • 12-16 lakh: 15%

    • 16-20 lakh: 20%

    • 20-24 lakh: 25%

    • Above 24 lakh: 30%

• TDS/TCS Rationalization:

  • Increased thresholds for TDS on rent, interest, and remittances.

• Voluntary Compliance:

  • Extended time limit for filing updated returns from 2 to 4 years.
    
    

Indirect Taxes:

• Customs Duty Rationalization:

  • Reduction in duties on critical minerals, drugs, and medicines.

  • Support for domestic manufacturing in textiles, electronics, and shipbuilding.

• Export Promotion:

  • Duty exemptions for handicrafts, leather, and marine products.
    
    

Key Reforms

• Regulatory Reforms:

  • High-Level Committee for Regulatory Reforms to simplify licenses and permissions.

• Financial Sector Reforms:

  • FDI limit in insurance raised to 100%.

  • Credit enhancement facility by NaBFID for infrastructure projects.

• Jan Vishwas Bill 2.0:

  • Decriminalization of over 100 legal provisions to ease business compliance.

Social and Welfare Schemes

• PM SVANidhi:

  • Enhanced loans and UPI-linked credit cards for street vendors.

• Social Security for Gig Workers:

  • Identity cards, healthcare under PM Jan Arogya Yojana, and e-Shram registration.

• Day Care Cancer Centres:

  • 200 centres to be established in district hospitals in 2025-26.
    
    

Infrastructure and Urban Development

• Urban Challenge Fund:

  • ₹1 lakh crore fund for city redevelopment, water, and sanitation.

• Power Sector Reforms:

  • Incentives for electricity distribution reforms and intra-state transmission.

• Nuclear Energy Mission:

  • Target of 100 GW nuclear energy by 2047, with focus on Small Modular Reactors (SMRs).
    
    

Innovation and Research

• Deep Tech Fund of Funds:

  • To catalyze next-generation startups.

• PM Research Fellowship:

  • 10,000 fellowships for technological research in IITs and IISc.

• Gene Bank for Crops Germplasm:

  • Second gene bank with 10 lakh germplasm lines for future food security.
    

The Union Budget 2025-26 is a comprehensive roadmap for achieving Viksit Bharat by 2047, focusing on inclusive growth, innovation, and structural reforms. It aims to boost agriculture, MSMEs, investments, and exports while ensuring fiscal discipline and ease of doing business. The budget also emphasizes social welfare, infrastructure development, and technological advancement to position India as a global economic powerhouse.