The Union Budget 2025-26 presents a roadmap for India's economic growth, with a strong focus on inclusive development, private sector investment, and fiscal consolidation. This year’s budget introduces structural reforms, tax benefits, and sectoral incentives to accelerate India’s journey towards becoming a developed nation—Viksit Bharat.
1. Strengthening Agriculture and Rural Economy
Empowering Farmers with Technology and Credit
National Mission on High-Yielding Seeds: Focuses on climate-resilient and pest-resistant crops.
Aatmanirbharta in Pulses: A 6-year mission to boost the production of Tur, Urad, and Masoor dal.
Enhanced Kisan Credit Card (KCC): Increased loan limit of ₹5 lakh to support 7.7 crore farmers.
Prime Minister Dhan-Dhaanya Krishi Yojana: Aims to develop 100 agricultural districts, benefiting 1.7 crore farmers.
Makhana Board in Bihar: Established to improve processing, marketing, and FPO organization.
Boosting Rural Infrastructure & Financial Inclusion
India Post as a Rural Economy Catalyst: Introduction of institutional account services, credit, insurance, and assisted digital banking services.
Jal Jeevan Mission Extended Till 2028: Ensures 100% clean drinking water coverage.
2. MSME & Entrepreneurship Support
Enhanced Credit & Growth Opportunities
Credit Cards for Micro Enterprises: ₹5 lakh limit for small business owners under the Udyam portal.
Startups & MSME Credit Boost:
MSME loan guarantee doubled from ₹5 Cr to ₹10 Cr.
Startup credit increased from ₹10 Cr to ₹20 Cr.
Sector-Specific Incentives:
Toy Manufacturing Clusters to promote “Made in India” toys.
National Institute of Food Technology in Bihar to support food processing.
Footwear & Leather Sector Scheme to generate 22 lakh jobs and ₹4 lakh crore turnover.
3. Investments in Human Capital and Social Welfare
Saksham Anganwadi & Poshan 2.0: Enhancing child nutrition & early childhood education.
Expansion of IITs and AI Centres: 10,000 new seats in medical education and an AI Centre of Excellence with a ₹500 crore allocation.
PM SVANidhi Scheme Expansion: Increased loan limits and UPI-linked credit for street vendors.
Healthcare Benefits for Gig Workers: Online platform workers to receive healthcare under PM Jan Arogya Yojana.
4. Infrastructure & Urban Development
Urban Challenge Fund of ₹1 Lakh Crore: Supports ‘Cities as Growth Hubs’ and smart urban redevelopment.
50-Year Interest-Free Loans to States: ₹1.5 lakh crore for infrastructure development.
₹15,000 Cr SWAMIH Fund-2: Completion of 1 lakh affordable housing units.
Maritime Development Fund: ₹25,000 crore for modernizing ports and shipping infrastructure.
UDAN Expansion: 120 new regional airports and 4 crore passengers in the next decade.
5. Boosting Exports & Trade Facilitation
BharatTradeNet: A unified platform for international trade, integrating MSMEs into global supply chains.
Export Promotion Mission: New targets for sectoral exports and easy credit for exporters.
Warehousing Facility for Air Cargo: Special focus on perishable horticulture products.
6. Financial Sector Reforms & Taxation
FDI Limit in Insurance Increased from 74% to 100% to attract global players.
Grameen Credit Score: A new framework to improve rural credit access.
Central KYC Registry Revamp (2025): Streamlining financial compliance.
Jan Vishwas Bill 2.0: Decriminalizing 100+ provisions in business laws to ease compliance.
Personal Income Tax Reforms
Increased tax deduction for senior citizens: From ₹50,000 to ₹1 lakh.
TDS exemption on rent hiked from ₹2.4 lakh to ₹6 lakh.
Simplified tax slabs for middle-class taxpayers.
7. Fiscal Management & Economic Outlook
Fiscal Deficit Target: 4.4% of GDP for 2025-26, showing continued fiscal consolidation.
Revenue Growth Projection: ₹25.6 lakh crore, with GST collections contributing 18%.
Capex Expansion: ₹15.5 lakh crore allocated for infrastructure & development projects.
Conclusion: A Budget for Growth & Inclusivity
The Union Budget 2025-26 lays the foundation for economic resilience, sustainable growth, and financial inclusivity. By empowering MSMEs, investing in infrastructure, fostering rural development, and simplifying tax compliance, the government is steering India towards becoming a global economic powerhouse.
This budget not only strengthens India's financial sector but also enhances opportunities for businesses, entrepreneurs, and investors. As we progress toward Viksit Bharat, these strategic initiatives will play a crucial role in shaping India's economic future.