PIB Summary: Union Budget 2025-26 | Indian Economy for UPSC CSE PDF Download

 Page 1


Ministry of Finance
SUMMARY OF UNION BUDGET 2025-26
Posted On: 01 FEB 2025 1:31PM by PIB Delhi
NO INCOME TAX ON AVERAGE MONTHLY INCOME OF UPTO RS 1
LAKH; TO BOOST MIDDLE CLASS HOUSEHOLD SAVINGS &
CONSUMPTION
SALARIED CLASS TO PAY NIL INCOME TAX UPTO  12.75 LAKH PER
ANNUM IN NEW TAX REGIME
UNION BUDGET RECOGNISES 4 ENGINES OF DEVELOPMENT –
AGRICULTURE, MSME, INVESTMENT AND EXPORTS
BENEFITTING 1.7 CRORE FARMERS, ‘PRIME MINISTER DHAN-
DHAANYA KRISHI YOJANA’ TO COVER 100 LOW AGRICULTURAL
PRODUCTIVITY DISTRICTS
“MISSION FOR AATMANIRBHARTA IN PULSES” WITH A SPECIAL
FOCUS ON TUR, URAD AND MASOOR TO BE LAUNCHED
LOANS UPTO Rs. 5 LAKHS THROUGH KCC UNDER MODIFIED
INTEREST SUBVENTION SCHEME
FY-25 ESTIMATED TO END WITH FISCAL DEFICIT OF 4.8%,
TARGET TO BRING IT DOWN TO 4.4% IN FY-26
SIGNIFICANT ENHANCEMENT OF CREDIT WITH GUARANTEE
COVER TO MSMEs FROM  5 CR TO  10 CR
A NATIONAL MANUFACTURING MISSION COVERING SMALL,
MEDIUM AND LARGE INDUSTRIES FOR FURTHERING “MAKE IN
INDIA”
50,000 ATAL TINKERING LABS IN GOVERNMENT SCHOOLS IN
NEXT 5 YEARS
CENTRE OF EXCELLENCE IN ARTIFICIAL INTELLIGENCE FOR
EDUCATION, WITH A TOTAL OUTLAY OF  500 CRORE
PM SVANIDHI WITH ENHANCED LOANS FROM BANKS, AND UPI
LINKED CREDIT CARDS WITH  30,000 LIMIT
GIG WORKERS TO GET IDENTITY CARDS, REGISTRATION ON E-
SHRAM PORTAL &  HEALTHCARE UNDER PM JAN AROGYA
Page 2


Ministry of Finance
SUMMARY OF UNION BUDGET 2025-26
Posted On: 01 FEB 2025 1:31PM by PIB Delhi
NO INCOME TAX ON AVERAGE MONTHLY INCOME OF UPTO RS 1
LAKH; TO BOOST MIDDLE CLASS HOUSEHOLD SAVINGS &
CONSUMPTION
SALARIED CLASS TO PAY NIL INCOME TAX UPTO  12.75 LAKH PER
ANNUM IN NEW TAX REGIME
UNION BUDGET RECOGNISES 4 ENGINES OF DEVELOPMENT –
AGRICULTURE, MSME, INVESTMENT AND EXPORTS
BENEFITTING 1.7 CRORE FARMERS, ‘PRIME MINISTER DHAN-
DHAANYA KRISHI YOJANA’ TO COVER 100 LOW AGRICULTURAL
PRODUCTIVITY DISTRICTS
“MISSION FOR AATMANIRBHARTA IN PULSES” WITH A SPECIAL
FOCUS ON TUR, URAD AND MASOOR TO BE LAUNCHED
LOANS UPTO Rs. 5 LAKHS THROUGH KCC UNDER MODIFIED
INTEREST SUBVENTION SCHEME
FY-25 ESTIMATED TO END WITH FISCAL DEFICIT OF 4.8%,
TARGET TO BRING IT DOWN TO 4.4% IN FY-26
SIGNIFICANT ENHANCEMENT OF CREDIT WITH GUARANTEE
COVER TO MSMEs FROM  5 CR TO  10 CR
A NATIONAL MANUFACTURING MISSION COVERING SMALL,
MEDIUM AND LARGE INDUSTRIES FOR FURTHERING “MAKE IN
INDIA”
50,000 ATAL TINKERING LABS IN GOVERNMENT SCHOOLS IN
NEXT 5 YEARS
CENTRE OF EXCELLENCE IN ARTIFICIAL INTELLIGENCE FOR
EDUCATION, WITH A TOTAL OUTLAY OF  500 CRORE
PM SVANIDHI WITH ENHANCED LOANS FROM BANKS, AND UPI
LINKED CREDIT CARDS WITH  30,000 LIMIT
GIG WORKERS TO GET IDENTITY CARDS, REGISTRATION ON E-
SHRAM PORTAL &  HEALTHCARE UNDER PM JAN AROGYA
YOJANA
 1 LAKH CRORE URBAN CHALLENGE FUND FOR ‘CITIES AS
GROWTH HUBS’
NUCLEAR ENERGY MISSION FOR R&D OF SMALL MODULAR
REACTORS WITH AN OUTLAY OF  20,000 CRORE
MODIFIED UDAN SCHEME TO ENHANCE REGIONAL
CONNECTIVITY TO 120 NEW DESTINATIONS
 15,000 CRORE SWAMIH FUND TO BE ESTABLISHED FOR
EXPEDITIOUS COMPLETION OF ANOTHER 1 LAKH STRESSED
HOUSING UNITS
 20,000 CRORE ALLOCATED FOR PRIVATE SECTOR DRIVEN
RESEARCH DEVELOPMENT AND INNOVATION INITIATIVES
GYAN BHARATAM MISSION FOR SURVEYAND CONSERVATION OF
MANUSCRIPTS TO COVER MORE THAN ONE CRORE
MANUSCRIPTS
FDI LIMIT ENHANCED FOR INSURANCE FROM 74 TO 100 PER
CENT
JAN VISHWAS BILL 2.0 TO BE INTRODUCED FOR
DECRIMINALISING MORE THAN 100 PROVISIONS IN VARIOUS
LAWS
UPDATED INCOME TAX RETURNS TIME LIMIT INCREASED FROM
TWO TO FOUR YEARS
DELAY IN TCS PAYMENT DECRIMINALISED
TDS ON RENT INCREASED FROM  2.4 LAKH TO  6 LAKH
BCD EXEMPTED ON 36 LIFESAVING DRUGS AND MEDICINES FOR
TREATING CANCER, RARE AND CHRONIC DISEASES
BCD ON IFPD INCREASED TO 20% AND ON OPEN CELLS
REDUCED TO 5%
BCD ON PARTS OF OPEN CELLS EXEMPTED TO PROMOTE
DOMESTIC MANUFACTURING
TO BOOST BATTERY PRODUCTION, ADDITIONAL CAPITAL GOODS
FOR EV AND MOBILE BATTERY MANUFACTURING EXEMPTED
BCD EXEMPTED FOR 10 YEARS ON RAW MATERIALS &
COMPONENTS USED FOR SHIP BUILDING
Page 3


Ministry of Finance
SUMMARY OF UNION BUDGET 2025-26
Posted On: 01 FEB 2025 1:31PM by PIB Delhi
NO INCOME TAX ON AVERAGE MONTHLY INCOME OF UPTO RS 1
LAKH; TO BOOST MIDDLE CLASS HOUSEHOLD SAVINGS &
CONSUMPTION
SALARIED CLASS TO PAY NIL INCOME TAX UPTO  12.75 LAKH PER
ANNUM IN NEW TAX REGIME
UNION BUDGET RECOGNISES 4 ENGINES OF DEVELOPMENT –
AGRICULTURE, MSME, INVESTMENT AND EXPORTS
BENEFITTING 1.7 CRORE FARMERS, ‘PRIME MINISTER DHAN-
DHAANYA KRISHI YOJANA’ TO COVER 100 LOW AGRICULTURAL
PRODUCTIVITY DISTRICTS
“MISSION FOR AATMANIRBHARTA IN PULSES” WITH A SPECIAL
FOCUS ON TUR, URAD AND MASOOR TO BE LAUNCHED
LOANS UPTO Rs. 5 LAKHS THROUGH KCC UNDER MODIFIED
INTEREST SUBVENTION SCHEME
FY-25 ESTIMATED TO END WITH FISCAL DEFICIT OF 4.8%,
TARGET TO BRING IT DOWN TO 4.4% IN FY-26
SIGNIFICANT ENHANCEMENT OF CREDIT WITH GUARANTEE
COVER TO MSMEs FROM  5 CR TO  10 CR
A NATIONAL MANUFACTURING MISSION COVERING SMALL,
MEDIUM AND LARGE INDUSTRIES FOR FURTHERING “MAKE IN
INDIA”
50,000 ATAL TINKERING LABS IN GOVERNMENT SCHOOLS IN
NEXT 5 YEARS
CENTRE OF EXCELLENCE IN ARTIFICIAL INTELLIGENCE FOR
EDUCATION, WITH A TOTAL OUTLAY OF  500 CRORE
PM SVANIDHI WITH ENHANCED LOANS FROM BANKS, AND UPI
LINKED CREDIT CARDS WITH  30,000 LIMIT
GIG WORKERS TO GET IDENTITY CARDS, REGISTRATION ON E-
SHRAM PORTAL &  HEALTHCARE UNDER PM JAN AROGYA
YOJANA
 1 LAKH CRORE URBAN CHALLENGE FUND FOR ‘CITIES AS
GROWTH HUBS’
NUCLEAR ENERGY MISSION FOR R&D OF SMALL MODULAR
REACTORS WITH AN OUTLAY OF  20,000 CRORE
MODIFIED UDAN SCHEME TO ENHANCE REGIONAL
CONNECTIVITY TO 120 NEW DESTINATIONS
 15,000 CRORE SWAMIH FUND TO BE ESTABLISHED FOR
EXPEDITIOUS COMPLETION OF ANOTHER 1 LAKH STRESSED
HOUSING UNITS
 20,000 CRORE ALLOCATED FOR PRIVATE SECTOR DRIVEN
RESEARCH DEVELOPMENT AND INNOVATION INITIATIVES
GYAN BHARATAM MISSION FOR SURVEYAND CONSERVATION OF
MANUSCRIPTS TO COVER MORE THAN ONE CRORE
MANUSCRIPTS
FDI LIMIT ENHANCED FOR INSURANCE FROM 74 TO 100 PER
CENT
JAN VISHWAS BILL 2.0 TO BE INTRODUCED FOR
DECRIMINALISING MORE THAN 100 PROVISIONS IN VARIOUS
LAWS
UPDATED INCOME TAX RETURNS TIME LIMIT INCREASED FROM
TWO TO FOUR YEARS
DELAY IN TCS PAYMENT DECRIMINALISED
TDS ON RENT INCREASED FROM  2.4 LAKH TO  6 LAKH
BCD EXEMPTED ON 36 LIFESAVING DRUGS AND MEDICINES FOR
TREATING CANCER, RARE AND CHRONIC DISEASES
BCD ON IFPD INCREASED TO 20% AND ON OPEN CELLS
REDUCED TO 5%
BCD ON PARTS OF OPEN CELLS EXEMPTED TO PROMOTE
DOMESTIC MANUFACTURING
TO BOOST BATTERY PRODUCTION, ADDITIONAL CAPITAL GOODS
FOR EV AND MOBILE BATTERY MANUFACTURING EXEMPTED
BCD EXEMPTED FOR 10 YEARS ON RAW MATERIALS &
COMPONENTS USED FOR SHIP BUILDING
BCD REDUCED FROM 30% TO 5% ON FROZEN FISH PASTE AND
15% TO 5% ON FISH HYDROLYSATE
 
Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman presented the Union Budget 2025-
26 in Parliament today. Here is the summary of her budget speech;
PART A
 
Quoting Telugu poet and playwright Shri Gurajada Appa Rao’s famous saying, ‘A country is not just its soil;
a country is its people.’ – the Finance Minister presented the Union Budget 2025-26 with the theme “Sabka
Vikas” stimulating balanced growth of all regions.
In line with this theme, the Finance Minister outlined the broad Principles of Viksit Bharat to encompass the
following:
a) Zero-poverty;
 b) Hundred per cent good quality school education;
c) Access to high-quality, affordable, and comprehensive healthcare;
d) Hundred per cent skilled labour with meaningful employment;
e) Seventy per cent women in economic activities; and
f) Farmers making our country the ‘food basket of the world’.
The Union Budget 2025-2026 promises to continue Government’s efforts to accelerate growth, secure
inclusive development, invigorate private sector investments, uplift household sentiments, and enhance
spending power of India’s rising middle class. The Budget proposes development measures focusing on poor
(Garib), Youth, farmer (Annadata) and women (Nari).
The Budget aims to initiate transformative reforms in Taxation, Power Sector, Urban Development, Mining,
Financial Sector, and Regulatory Reforms to augment India’s growth potential and global competitiveness.
Union Budget highlights that Agriculture, MSME, Investment, and Exports are engines in the journey to
Viksit Bharat using reforms as fuel, guided by the spirit of inclusivity.
 
1
st
 Engine: Agriculture
Budget announced ‘Prime Minister Dhan-Dhaanya Krishi Yojana’ in partnership with states covering 100
districts to increase productivity, adopt crop diversification, augment post-harvest storage, improve irrigation
facilities, and facilitate availability of long-term and short-term credit.
A comprehensive multi-sectoral ‘Rural Prosperity and Resilience’ programme will be launched in partnership
with states to address underemployment in agriculture through skilling, investment, technology, and
invigorating the rural economy. The goal is to generate ample opportunities in rural areas, with focus on rural
women, young farmers, rural youth, marginal and small farmers, and landless families.
Union Finance Minister announced that Government will launch a 6-year “Mission for Aatmanirbharta in
Pulses” with special focus on Tur, Urad and Masoor. Central agencies (NAFED and NCCF) will be ready to
procure these 3 pulses, as much as offered during the next 4 years from farmers.
The Budget has outlined measures to Comprehensive Programme for Vegetables & Fruits, National Mission
on High Yielding Seeds, and a five year Mission for Cotton Productivity amongst other measures to promote
agriculture and allied activities in a major way.
Page 4


Ministry of Finance
SUMMARY OF UNION BUDGET 2025-26
Posted On: 01 FEB 2025 1:31PM by PIB Delhi
NO INCOME TAX ON AVERAGE MONTHLY INCOME OF UPTO RS 1
LAKH; TO BOOST MIDDLE CLASS HOUSEHOLD SAVINGS &
CONSUMPTION
SALARIED CLASS TO PAY NIL INCOME TAX UPTO  12.75 LAKH PER
ANNUM IN NEW TAX REGIME
UNION BUDGET RECOGNISES 4 ENGINES OF DEVELOPMENT –
AGRICULTURE, MSME, INVESTMENT AND EXPORTS
BENEFITTING 1.7 CRORE FARMERS, ‘PRIME MINISTER DHAN-
DHAANYA KRISHI YOJANA’ TO COVER 100 LOW AGRICULTURAL
PRODUCTIVITY DISTRICTS
“MISSION FOR AATMANIRBHARTA IN PULSES” WITH A SPECIAL
FOCUS ON TUR, URAD AND MASOOR TO BE LAUNCHED
LOANS UPTO Rs. 5 LAKHS THROUGH KCC UNDER MODIFIED
INTEREST SUBVENTION SCHEME
FY-25 ESTIMATED TO END WITH FISCAL DEFICIT OF 4.8%,
TARGET TO BRING IT DOWN TO 4.4% IN FY-26
SIGNIFICANT ENHANCEMENT OF CREDIT WITH GUARANTEE
COVER TO MSMEs FROM  5 CR TO  10 CR
A NATIONAL MANUFACTURING MISSION COVERING SMALL,
MEDIUM AND LARGE INDUSTRIES FOR FURTHERING “MAKE IN
INDIA”
50,000 ATAL TINKERING LABS IN GOVERNMENT SCHOOLS IN
NEXT 5 YEARS
CENTRE OF EXCELLENCE IN ARTIFICIAL INTELLIGENCE FOR
EDUCATION, WITH A TOTAL OUTLAY OF  500 CRORE
PM SVANIDHI WITH ENHANCED LOANS FROM BANKS, AND UPI
LINKED CREDIT CARDS WITH  30,000 LIMIT
GIG WORKERS TO GET IDENTITY CARDS, REGISTRATION ON E-
SHRAM PORTAL &  HEALTHCARE UNDER PM JAN AROGYA
YOJANA
 1 LAKH CRORE URBAN CHALLENGE FUND FOR ‘CITIES AS
GROWTH HUBS’
NUCLEAR ENERGY MISSION FOR R&D OF SMALL MODULAR
REACTORS WITH AN OUTLAY OF  20,000 CRORE
MODIFIED UDAN SCHEME TO ENHANCE REGIONAL
CONNECTIVITY TO 120 NEW DESTINATIONS
 15,000 CRORE SWAMIH FUND TO BE ESTABLISHED FOR
EXPEDITIOUS COMPLETION OF ANOTHER 1 LAKH STRESSED
HOUSING UNITS
 20,000 CRORE ALLOCATED FOR PRIVATE SECTOR DRIVEN
RESEARCH DEVELOPMENT AND INNOVATION INITIATIVES
GYAN BHARATAM MISSION FOR SURVEYAND CONSERVATION OF
MANUSCRIPTS TO COVER MORE THAN ONE CRORE
MANUSCRIPTS
FDI LIMIT ENHANCED FOR INSURANCE FROM 74 TO 100 PER
CENT
JAN VISHWAS BILL 2.0 TO BE INTRODUCED FOR
DECRIMINALISING MORE THAN 100 PROVISIONS IN VARIOUS
LAWS
UPDATED INCOME TAX RETURNS TIME LIMIT INCREASED FROM
TWO TO FOUR YEARS
DELAY IN TCS PAYMENT DECRIMINALISED
TDS ON RENT INCREASED FROM  2.4 LAKH TO  6 LAKH
BCD EXEMPTED ON 36 LIFESAVING DRUGS AND MEDICINES FOR
TREATING CANCER, RARE AND CHRONIC DISEASES
BCD ON IFPD INCREASED TO 20% AND ON OPEN CELLS
REDUCED TO 5%
BCD ON PARTS OF OPEN CELLS EXEMPTED TO PROMOTE
DOMESTIC MANUFACTURING
TO BOOST BATTERY PRODUCTION, ADDITIONAL CAPITAL GOODS
FOR EV AND MOBILE BATTERY MANUFACTURING EXEMPTED
BCD EXEMPTED FOR 10 YEARS ON RAW MATERIALS &
COMPONENTS USED FOR SHIP BUILDING
BCD REDUCED FROM 30% TO 5% ON FROZEN FISH PASTE AND
15% TO 5% ON FISH HYDROLYSATE
 
Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman presented the Union Budget 2025-
26 in Parliament today. Here is the summary of her budget speech;
PART A
 
Quoting Telugu poet and playwright Shri Gurajada Appa Rao’s famous saying, ‘A country is not just its soil;
a country is its people.’ – the Finance Minister presented the Union Budget 2025-26 with the theme “Sabka
Vikas” stimulating balanced growth of all regions.
In line with this theme, the Finance Minister outlined the broad Principles of Viksit Bharat to encompass the
following:
a) Zero-poverty;
 b) Hundred per cent good quality school education;
c) Access to high-quality, affordable, and comprehensive healthcare;
d) Hundred per cent skilled labour with meaningful employment;
e) Seventy per cent women in economic activities; and
f) Farmers making our country the ‘food basket of the world’.
The Union Budget 2025-2026 promises to continue Government’s efforts to accelerate growth, secure
inclusive development, invigorate private sector investments, uplift household sentiments, and enhance
spending power of India’s rising middle class. The Budget proposes development measures focusing on poor
(Garib), Youth, farmer (Annadata) and women (Nari).
The Budget aims to initiate transformative reforms in Taxation, Power Sector, Urban Development, Mining,
Financial Sector, and Regulatory Reforms to augment India’s growth potential and global competitiveness.
Union Budget highlights that Agriculture, MSME, Investment, and Exports are engines in the journey to
Viksit Bharat using reforms as fuel, guided by the spirit of inclusivity.
 
1
st
 Engine: Agriculture
Budget announced ‘Prime Minister Dhan-Dhaanya Krishi Yojana’ in partnership with states covering 100
districts to increase productivity, adopt crop diversification, augment post-harvest storage, improve irrigation
facilities, and facilitate availability of long-term and short-term credit.
A comprehensive multi-sectoral ‘Rural Prosperity and Resilience’ programme will be launched in partnership
with states to address underemployment in agriculture through skilling, investment, technology, and
invigorating the rural economy. The goal is to generate ample opportunities in rural areas, with focus on rural
women, young farmers, rural youth, marginal and small farmers, and landless families.
Union Finance Minister announced that Government will launch a 6-year “Mission for Aatmanirbharta in
Pulses” with special focus on Tur, Urad and Masoor. Central agencies (NAFED and NCCF) will be ready to
procure these 3 pulses, as much as offered during the next 4 years from farmers.
The Budget has outlined measures to Comprehensive Programme for Vegetables & Fruits, National Mission
on High Yielding Seeds, and a five year Mission for Cotton Productivity amongst other measures to promote
agriculture and allied activities in a major way.
Smt. Sitharaman announced the increase in loan limits from Rs. 3 lakh to Rs. 5 lakh for loans taken through
Kisan Credit Cards under modified interest subvention scheme.
 
2
nd
 Engine: MSMEs
Finance Minister described MSMEs as the second power engine for development as they constitute for 45%
of our exports. To help MSMEs achieve higher efficiencies of scale, technological upgradation and better
access to capital, the investment and turnover limits for classification of all MSMEs enhanced to 2.5 and 2
times, respectively. Further, steps to enhance credit availability with guarantee cover have also been
announced.
The Finance Minister also announced the launch of a new scheme for 5 lakh women, Scheduled Castes and
Scheduled Tribes first-time entrepreneurs. This will provide term loans up to Rs. 2 crore during the next 5
years.
Smt. Sitharaman announced that the Government will also implement a scheme to make India a global hub for
toys representing the 'Made in India' brand. She added that the Government will set up a National
Manufacturing Mission covering small, medium and large industries for furthering “Make in India”.
3
rd
 Engine: Investment
Defining Investment as the third engine of growth, the Union Minister prioritized investment in people,
economy and innovation. 
Under the investment in people, she announced that 50,000 Atal Tinkering Labs will be set up in
Government schools in next 5 years.
Smt. Nirmala Sitharaman announced that broadband connectivity will be provided to all Government
secondary schools and primary health centres in rural areas under the Bharatnet project.
Page 5


Ministry of Finance
SUMMARY OF UNION BUDGET 2025-26
Posted On: 01 FEB 2025 1:31PM by PIB Delhi
NO INCOME TAX ON AVERAGE MONTHLY INCOME OF UPTO RS 1
LAKH; TO BOOST MIDDLE CLASS HOUSEHOLD SAVINGS &
CONSUMPTION
SALARIED CLASS TO PAY NIL INCOME TAX UPTO  12.75 LAKH PER
ANNUM IN NEW TAX REGIME
UNION BUDGET RECOGNISES 4 ENGINES OF DEVELOPMENT –
AGRICULTURE, MSME, INVESTMENT AND EXPORTS
BENEFITTING 1.7 CRORE FARMERS, ‘PRIME MINISTER DHAN-
DHAANYA KRISHI YOJANA’ TO COVER 100 LOW AGRICULTURAL
PRODUCTIVITY DISTRICTS
“MISSION FOR AATMANIRBHARTA IN PULSES” WITH A SPECIAL
FOCUS ON TUR, URAD AND MASOOR TO BE LAUNCHED
LOANS UPTO Rs. 5 LAKHS THROUGH KCC UNDER MODIFIED
INTEREST SUBVENTION SCHEME
FY-25 ESTIMATED TO END WITH FISCAL DEFICIT OF 4.8%,
TARGET TO BRING IT DOWN TO 4.4% IN FY-26
SIGNIFICANT ENHANCEMENT OF CREDIT WITH GUARANTEE
COVER TO MSMEs FROM  5 CR TO  10 CR
A NATIONAL MANUFACTURING MISSION COVERING SMALL,
MEDIUM AND LARGE INDUSTRIES FOR FURTHERING “MAKE IN
INDIA”
50,000 ATAL TINKERING LABS IN GOVERNMENT SCHOOLS IN
NEXT 5 YEARS
CENTRE OF EXCELLENCE IN ARTIFICIAL INTELLIGENCE FOR
EDUCATION, WITH A TOTAL OUTLAY OF  500 CRORE
PM SVANIDHI WITH ENHANCED LOANS FROM BANKS, AND UPI
LINKED CREDIT CARDS WITH  30,000 LIMIT
GIG WORKERS TO GET IDENTITY CARDS, REGISTRATION ON E-
SHRAM PORTAL &  HEALTHCARE UNDER PM JAN AROGYA
YOJANA
 1 LAKH CRORE URBAN CHALLENGE FUND FOR ‘CITIES AS
GROWTH HUBS’
NUCLEAR ENERGY MISSION FOR R&D OF SMALL MODULAR
REACTORS WITH AN OUTLAY OF  20,000 CRORE
MODIFIED UDAN SCHEME TO ENHANCE REGIONAL
CONNECTIVITY TO 120 NEW DESTINATIONS
 15,000 CRORE SWAMIH FUND TO BE ESTABLISHED FOR
EXPEDITIOUS COMPLETION OF ANOTHER 1 LAKH STRESSED
HOUSING UNITS
 20,000 CRORE ALLOCATED FOR PRIVATE SECTOR DRIVEN
RESEARCH DEVELOPMENT AND INNOVATION INITIATIVES
GYAN BHARATAM MISSION FOR SURVEYAND CONSERVATION OF
MANUSCRIPTS TO COVER MORE THAN ONE CRORE
MANUSCRIPTS
FDI LIMIT ENHANCED FOR INSURANCE FROM 74 TO 100 PER
CENT
JAN VISHWAS BILL 2.0 TO BE INTRODUCED FOR
DECRIMINALISING MORE THAN 100 PROVISIONS IN VARIOUS
LAWS
UPDATED INCOME TAX RETURNS TIME LIMIT INCREASED FROM
TWO TO FOUR YEARS
DELAY IN TCS PAYMENT DECRIMINALISED
TDS ON RENT INCREASED FROM  2.4 LAKH TO  6 LAKH
BCD EXEMPTED ON 36 LIFESAVING DRUGS AND MEDICINES FOR
TREATING CANCER, RARE AND CHRONIC DISEASES
BCD ON IFPD INCREASED TO 20% AND ON OPEN CELLS
REDUCED TO 5%
BCD ON PARTS OF OPEN CELLS EXEMPTED TO PROMOTE
DOMESTIC MANUFACTURING
TO BOOST BATTERY PRODUCTION, ADDITIONAL CAPITAL GOODS
FOR EV AND MOBILE BATTERY MANUFACTURING EXEMPTED
BCD EXEMPTED FOR 10 YEARS ON RAW MATERIALS &
COMPONENTS USED FOR SHIP BUILDING
BCD REDUCED FROM 30% TO 5% ON FROZEN FISH PASTE AND
15% TO 5% ON FISH HYDROLYSATE
 
Union Minister of Finance and Corporate Affairs Smt. Nirmala Sitharaman presented the Union Budget 2025-
26 in Parliament today. Here is the summary of her budget speech;
PART A
 
Quoting Telugu poet and playwright Shri Gurajada Appa Rao’s famous saying, ‘A country is not just its soil;
a country is its people.’ – the Finance Minister presented the Union Budget 2025-26 with the theme “Sabka
Vikas” stimulating balanced growth of all regions.
In line with this theme, the Finance Minister outlined the broad Principles of Viksit Bharat to encompass the
following:
a) Zero-poverty;
 b) Hundred per cent good quality school education;
c) Access to high-quality, affordable, and comprehensive healthcare;
d) Hundred per cent skilled labour with meaningful employment;
e) Seventy per cent women in economic activities; and
f) Farmers making our country the ‘food basket of the world’.
The Union Budget 2025-2026 promises to continue Government’s efforts to accelerate growth, secure
inclusive development, invigorate private sector investments, uplift household sentiments, and enhance
spending power of India’s rising middle class. The Budget proposes development measures focusing on poor
(Garib), Youth, farmer (Annadata) and women (Nari).
The Budget aims to initiate transformative reforms in Taxation, Power Sector, Urban Development, Mining,
Financial Sector, and Regulatory Reforms to augment India’s growth potential and global competitiveness.
Union Budget highlights that Agriculture, MSME, Investment, and Exports are engines in the journey to
Viksit Bharat using reforms as fuel, guided by the spirit of inclusivity.
 
1
st
 Engine: Agriculture
Budget announced ‘Prime Minister Dhan-Dhaanya Krishi Yojana’ in partnership with states covering 100
districts to increase productivity, adopt crop diversification, augment post-harvest storage, improve irrigation
facilities, and facilitate availability of long-term and short-term credit.
A comprehensive multi-sectoral ‘Rural Prosperity and Resilience’ programme will be launched in partnership
with states to address underemployment in agriculture through skilling, investment, technology, and
invigorating the rural economy. The goal is to generate ample opportunities in rural areas, with focus on rural
women, young farmers, rural youth, marginal and small farmers, and landless families.
Union Finance Minister announced that Government will launch a 6-year “Mission for Aatmanirbharta in
Pulses” with special focus on Tur, Urad and Masoor. Central agencies (NAFED and NCCF) will be ready to
procure these 3 pulses, as much as offered during the next 4 years from farmers.
The Budget has outlined measures to Comprehensive Programme for Vegetables & Fruits, National Mission
on High Yielding Seeds, and a five year Mission for Cotton Productivity amongst other measures to promote
agriculture and allied activities in a major way.
Smt. Sitharaman announced the increase in loan limits from Rs. 3 lakh to Rs. 5 lakh for loans taken through
Kisan Credit Cards under modified interest subvention scheme.
 
2
nd
 Engine: MSMEs
Finance Minister described MSMEs as the second power engine for development as they constitute for 45%
of our exports. To help MSMEs achieve higher efficiencies of scale, technological upgradation and better
access to capital, the investment and turnover limits for classification of all MSMEs enhanced to 2.5 and 2
times, respectively. Further, steps to enhance credit availability with guarantee cover have also been
announced.
The Finance Minister also announced the launch of a new scheme for 5 lakh women, Scheduled Castes and
Scheduled Tribes first-time entrepreneurs. This will provide term loans up to Rs. 2 crore during the next 5
years.
Smt. Sitharaman announced that the Government will also implement a scheme to make India a global hub for
toys representing the 'Made in India' brand. She added that the Government will set up a National
Manufacturing Mission covering small, medium and large industries for furthering “Make in India”.
3
rd
 Engine: Investment
Defining Investment as the third engine of growth, the Union Minister prioritized investment in people,
economy and innovation. 
Under the investment in people, she announced that 50,000 Atal Tinkering Labs will be set up in
Government schools in next 5 years.
Smt. Nirmala Sitharaman announced that broadband connectivity will be provided to all Government
secondary schools and primary health centres in rural areas under the Bharatnet project.
She said Bharatiya Bhasha Pustak Scheme will be implemented to provide digital-form Indian language books
for school and higher education.
Five National Centres of Excellence for skilling will be set up with global expertise and partnerships to equip
our youth with the skills required for “Make for India, Make for the World” manufacturing.
A Centre of Excellence in Artificial Intelligence for education will be set up with a total outlay of 500 crore.
Budget announced that Government will arrange for Gig workers’ identity cards, their registration on the e-
Shram portal and healthcare under PM Jan Arogya Yojana.
Under the investment in Economy, Smt Sitharaman said Infrastructure-related ministries will come up with a
3-year pipeline of projects in PPP mode.
She added that an outlay of Rs 1.5 lakh crore was proposed for the 50-year interest free loans to states for
capital expenditure and incentives for reforms.
She also announced the second Asset Monetization Plan 2025-30 to plough back capital of Rs 10 lakh crore in
new projects.
The Jal Jeevan Mission was extended till 2028 with focus on the quality of infrastructure and Operation &
Maintenance of rural piped water supply schemes through “Jan Bhagidhari”.
Government will set up an Urban Challenge Fund of Rs.1 lakh crore to implement the proposals for ‘Cities as
Growth Hubs’, ‘Creative Redevelopment of Cities’ and ‘Water and Sanitation’.
Under the investment in Innovation, an allocation of ?20,000 crore is announced to implement private sector
driven Research, Development and Innovation initiative.
Finance Minister proposed National Geospatial Mission to develop foundational geospatial infrastructure and
data which will benefit urban planning.
Budget proposes Gyan Bharatam Mission, for survey, documentation and conservation of  more than 1 crore
manuscripts with academic institutions, museums, libraries and private collectors. A National Digital
Repository of Indian knowledge systems for knowledge sharing is also proposed.
4
th
 Engine: Exports
Smt. Sitharaman defined Exports as the fourth engine of growth and said that jointly driven by the Ministries
of Commerce, MSME, and Finance; Export Promotion Mission will help MSMEs tap into the export market.
She added that a digital public infrastructure, ‘BharatTradeNet’ (BTN) for international trade was proposed as
a unified platform for trade documentation and financing solutions.
The Finance Minister mentioned that support will be provided to develop domestic manufacturing capacities
for our economy’s integration with global supply chains. She also announced that government will support the
domestic electronic equipment industry for leveraging the opportunities related to Industry 4.0. A National
Framework has also been proposed for promoting Global Capability Centres in emerging tier 2 cities.
The government will facilitate upgradation of infrastructure and warehousing for air cargo including high
value perishable horticulture produce.
Reforms as the Fuel
Defining Reforms as the fuel to the engine, Smt. Sitharaman said that over the past 10 years, the Government
had implemented several reforms for convenience of tax payers, such as faceless assessment, tax payers
charter, faster returns, almost 99 per cent returns being on self-assessment, and Vivad se Vishwas scheme.
Continuing with these efforts, she reaffirmed the commitment of the tax department to “trust first, scrutinize
later”.
Financial Sector Reforms and Development
In a demonstrated steadfast commitment of the Government towards ‘Ease of Doing Business’, the Union
Finance Minister proposed changes across the length and breadth of the financial landscape in India to ease