India Budget 2025

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Published:

Here’s a summary of the 2025 Union Budget:

Key Announcements: Income Tax Reforms

No income tax payable up to ₹12,00,000 per annum. New tax slabs introduced to reduce the tax burden for middle-class earners. Tax rebates ensure individuals earning up to ₹12,00,000 effectively pay zero tax. Increase in standard deduction to ₹75,000 for salaried employees. Investment and Business Opportunities:

Consumer-driven businesses: More disposable income expected to boost demand for premium D2C brands, automobiles, home essentials, and personal care. Agriculture & Rural Economy: National mission for high-yielding seeds to increase crop production. ₹5,00,000 loans for 7.7 crore farmers under the Kisan Credit Card scheme. 100 districts identified as potential agriculture hubs for modernization. 5-year mission to boost cotton farming productivity. Special Makhana Board for Bihar to regulate and improve fox nut production. MSME & Startups Growth:

Higher loan limits: MSMEs: Loan guarantee increased to ₹10 Cr (from ₹5 Cr). Startups: Loan guarantee increased to ₹20 Cr (from ₹10 Cr). Revised MSME definition allows businesses to scale up while retaining benefits. ₹10,000 Cr added to the government’s fund-of-funds for startup investments. Manufacturing Sector Boost:

Several incentives and PLI schemes (not fully detailed). Infrastructure development projects across multiple states. Concerns & Criticism: Regional Bias?

Major allocations for Bihar (Makhana Board, IIT Patna funding, new airports, agricultural investments). No specific mention of other states like West Bengal, raising concerns about political favoritism. Lower Revenue Collection & Spending Cuts

Government missed revenue collection targets by ₹41,240 Cr. Cut ₹1,04,025 Cr from planned spending, affecting investments in crucial areas like agriculture and rural development. Reduced Funding for Flagship Schemes

Programs like Jal Jeevan Mission, Poshan Abhiyan, PM Garib Kalyan Anna Yojana reportedly saw budget cuts, raising doubts about execution capacity. Final Thoughts: The budget benefits the middle class, salaried employees, startups, and MSMEs with tax cuts and loan guarantees. Agriculture and rural economy receive a major push, but critics argue it’s politically motivated. Concerns over fiscal deficit reduction achieved through spending cuts rather than economic growth. Your Thoughts? Do you think this budget helps economic growth, or is it a political strategy? Let me know your opinion!