Kurukshetra Magazine March 2025 | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

 Page 1


SUMMARY OF
MARCH 2025
KURUKSHE T R A
Page 2


SUMMARY OF
MARCH 2025
KURUKSHE T R A
Kurukshetra March 2025: Budget 2025-26 1
TOPIC 1:  INITIATIVES TO BOOST 
RURAL ECONOMY WHILE 
INCREASING INCOME AND 
CONSUMPTION
Introduction
India, being a predominantly consumption-
based economy, requires continuous efforts 
to stimulate demand, investment, and rural 
economic growth. In the Union Budget 2025-26, 
several initiatives have been proposed to enhance 
rural income, improve agricultural productivity, 
and strengthen rural infrastructure, all while 
maintaining fiscal balance. This article explores 
the various measures introduced in the budget 
to boost the rural economy, increase income, and 
stimulate consumption.
1.  Current Economic Scenario and Need for 
Growth
(i) Fiscal Targets and Growth Projection  
• Revenue Generation Targets:
 ¾ The government aims to collect ?42.70 lakh 
crore in revenue for FY 2025-26, which 
is 11% higher than the ?38.53 lakh crore 
target for FY 2024-25.
 ¾ Direct tax collection target: ?25.20 lakh 
crore (? 14.4%).
 ¾ Indirect tax collection target: ?17.50 lakh 
crore (? 10.4%).
• GDP Growth Projections:
 ¾ First Advance Estimate (2024-25): 6.4% 
GDP growth.
 ¾ RBI Projection (2024-25): 6.6% growth.
 ¾ Projected GDP Growth (2025-26): 6.7%.
(ii) Challenges A??ecting Growth
• Global Factors:
 ¾ Tariff changes, protectionist policies, and 
US Federal Reserve interest rates affecting 
global markets.
• Domestic Factors:
 ¾ Declining GDP growth (5.4% in Q2 2024-
25).
 ¾ Need to boost consumption, investment, 
and exports.
Budget Initiatives to Strengthen the Rural 
Economy
(i) Agriculture and Rural Development 
Investments
• T otal Allocation for Farmers: ?2.66 lakh crore 
( ? ?1,000 crore from last year).
• Fertilizer Subsidy: ?1.67 lakh crore ( ? ?3,000 
crore).
• Agriculture Development Scheme: ?8,500 
crore ( ? ?947 crore).
• Animal Husbandry and Dairy: ?1,050 crore 
( ?from ?369 crore).
(ii) Increasing Farmers’ Income
(a) Kisan Credit Card (KCC) Loan Limit 
Enhancement
• Loan limit increased from ?3 lakh to ?5 lakh.
• Interest subsidy:
 ¾ 2% general subsidy.
 ¾3% additional subsidy for timely 
repayment (effective interest rate 4%).
• Bene??ciaries: 7.75 crore farmers.
Page 3


SUMMARY OF
MARCH 2025
KURUKSHE T R A
Kurukshetra March 2025: Budget 2025-26 1
TOPIC 1:  INITIATIVES TO BOOST 
RURAL ECONOMY WHILE 
INCREASING INCOME AND 
CONSUMPTION
Introduction
India, being a predominantly consumption-
based economy, requires continuous efforts 
to stimulate demand, investment, and rural 
economic growth. In the Union Budget 2025-26, 
several initiatives have been proposed to enhance 
rural income, improve agricultural productivity, 
and strengthen rural infrastructure, all while 
maintaining fiscal balance. This article explores 
the various measures introduced in the budget 
to boost the rural economy, increase income, and 
stimulate consumption.
1.  Current Economic Scenario and Need for 
Growth
(i) Fiscal Targets and Growth Projection  
• Revenue Generation Targets:
 ¾ The government aims to collect ?42.70 lakh 
crore in revenue for FY 2025-26, which 
is 11% higher than the ?38.53 lakh crore 
target for FY 2024-25.
 ¾ Direct tax collection target: ?25.20 lakh 
crore (? 14.4%).
 ¾ Indirect tax collection target: ?17.50 lakh 
crore (? 10.4%).
• GDP Growth Projections:
 ¾ First Advance Estimate (2024-25): 6.4% 
GDP growth.
 ¾ RBI Projection (2024-25): 6.6% growth.
 ¾ Projected GDP Growth (2025-26): 6.7%.
(ii) Challenges A??ecting Growth
• Global Factors:
 ¾ Tariff changes, protectionist policies, and 
US Federal Reserve interest rates affecting 
global markets.
• Domestic Factors:
 ¾ Declining GDP growth (5.4% in Q2 2024-
25).
 ¾ Need to boost consumption, investment, 
and exports.
Budget Initiatives to Strengthen the Rural 
Economy
(i) Agriculture and Rural Development 
Investments
• T otal Allocation for Farmers: ?2.66 lakh crore 
( ? ?1,000 crore from last year).
• Fertilizer Subsidy: ?1.67 lakh crore ( ? ?3,000 
crore).
• Agriculture Development Scheme: ?8,500 
crore ( ? ?947 crore).
• Animal Husbandry and Dairy: ?1,050 crore 
( ?from ?369 crore).
(ii) Increasing Farmers’ Income
(a) Kisan Credit Card (KCC) Loan Limit 
Enhancement
• Loan limit increased from ?3 lakh to ?5 lakh.
• Interest subsidy:
 ¾ 2% general subsidy.
 ¾3% additional subsidy for timely 
repayment (effective interest rate 4%).
• Bene??ciaries: 7.75 crore farmers.
Kurukshetra March 2025: Budget 2025-26 2
(b) Pradhan Mantri Dhan-Dhanya Krishi Yojana
• Focus on 100 low-yield districts.
• Financial aid for irrigation, storage, and 
improved seeds.
• Estimated beneficiaries: 1.7 crore farmers.
(c) Five-Year Missions for Agricultural Growth
• Cotton Technology Mission
 ¾ Promotes long-fiber cotton varieties.
 ¾ Aims to improve cotton quality and 
processing.
• Pulses Self-Reliance Mission
 ¾ Focus on pigeon peas, black lentils, and 
other pulses.
 ¾ 100% procurement assurance for farmers 
by NAFED & NCCF.
Fisheries and Self-Reliance in Agriculture:-
(i) Special Economic Zones (SEZs) for Fisheries
• India’s seafood industry is valued at ?60,000 
crore.
• SEZs for ??sheries to boost aquaculture and 
employment (benefiting 2.8 crore ??shermen ).
(ii) Self-Su??ciency in Urea Production
• New urea plant in Namrup, Assam (12.7 
lakh metric tons/year capacity).
• Reduction in import dependence.
Boosting Rural Employment and Consumption   
(i) Women’s Economic Empowerment
• T erm Loans for SC/ST W omen Entrepreneurs: 
?2 crore loan limit for 5 lakh women 
entrepreneurs.
• Saksham Anganwadi and Poshan 2.0 Mission: 
?21,960 crore (? ?1,889 crore).
• Mission Vatsalya: ?1,500 crore for women’s 
welfare programs.
(ii) Support for Small Businesses and Street 
Vendors
• PM SVANidhi Yojana Expansion
 ¾ Higher loan limits for street vendors.
 ¾Encouraging financial inclusion and 
formalization of businesses.
(iii) Infrastructure and Logistics Development
• Conversion of 1.5 lakh rural post o??ces into 
logistics hubs.
• Cost-effective rural supply chain solutions 
for MSMEs and farmers.
• ???1.5 lakh crore interest-free loans to states 
for infrastructure.
Page 4


SUMMARY OF
MARCH 2025
KURUKSHE T R A
Kurukshetra March 2025: Budget 2025-26 1
TOPIC 1:  INITIATIVES TO BOOST 
RURAL ECONOMY WHILE 
INCREASING INCOME AND 
CONSUMPTION
Introduction
India, being a predominantly consumption-
based economy, requires continuous efforts 
to stimulate demand, investment, and rural 
economic growth. In the Union Budget 2025-26, 
several initiatives have been proposed to enhance 
rural income, improve agricultural productivity, 
and strengthen rural infrastructure, all while 
maintaining fiscal balance. This article explores 
the various measures introduced in the budget 
to boost the rural economy, increase income, and 
stimulate consumption.
1.  Current Economic Scenario and Need for 
Growth
(i) Fiscal Targets and Growth Projection  
• Revenue Generation Targets:
 ¾ The government aims to collect ?42.70 lakh 
crore in revenue for FY 2025-26, which 
is 11% higher than the ?38.53 lakh crore 
target for FY 2024-25.
 ¾ Direct tax collection target: ?25.20 lakh 
crore (? 14.4%).
 ¾ Indirect tax collection target: ?17.50 lakh 
crore (? 10.4%).
• GDP Growth Projections:
 ¾ First Advance Estimate (2024-25): 6.4% 
GDP growth.
 ¾ RBI Projection (2024-25): 6.6% growth.
 ¾ Projected GDP Growth (2025-26): 6.7%.
(ii) Challenges A??ecting Growth
• Global Factors:
 ¾ Tariff changes, protectionist policies, and 
US Federal Reserve interest rates affecting 
global markets.
• Domestic Factors:
 ¾ Declining GDP growth (5.4% in Q2 2024-
25).
 ¾ Need to boost consumption, investment, 
and exports.
Budget Initiatives to Strengthen the Rural 
Economy
(i) Agriculture and Rural Development 
Investments
• T otal Allocation for Farmers: ?2.66 lakh crore 
( ? ?1,000 crore from last year).
• Fertilizer Subsidy: ?1.67 lakh crore ( ? ?3,000 
crore).
• Agriculture Development Scheme: ?8,500 
crore ( ? ?947 crore).
• Animal Husbandry and Dairy: ?1,050 crore 
( ?from ?369 crore).
(ii) Increasing Farmers’ Income
(a) Kisan Credit Card (KCC) Loan Limit 
Enhancement
• Loan limit increased from ?3 lakh to ?5 lakh.
• Interest subsidy:
 ¾ 2% general subsidy.
 ¾3% additional subsidy for timely 
repayment (effective interest rate 4%).
• Bene??ciaries: 7.75 crore farmers.
Kurukshetra March 2025: Budget 2025-26 2
(b) Pradhan Mantri Dhan-Dhanya Krishi Yojana
• Focus on 100 low-yield districts.
• Financial aid for irrigation, storage, and 
improved seeds.
• Estimated beneficiaries: 1.7 crore farmers.
(c) Five-Year Missions for Agricultural Growth
• Cotton Technology Mission
 ¾ Promotes long-fiber cotton varieties.
 ¾ Aims to improve cotton quality and 
processing.
• Pulses Self-Reliance Mission
 ¾ Focus on pigeon peas, black lentils, and 
other pulses.
 ¾ 100% procurement assurance for farmers 
by NAFED & NCCF.
Fisheries and Self-Reliance in Agriculture:-
(i) Special Economic Zones (SEZs) for Fisheries
• India’s seafood industry is valued at ?60,000 
crore.
• SEZs for ??sheries to boost aquaculture and 
employment (benefiting 2.8 crore ??shermen ).
(ii) Self-Su??ciency in Urea Production
• New urea plant in Namrup, Assam (12.7 
lakh metric tons/year capacity).
• Reduction in import dependence.
Boosting Rural Employment and Consumption   
(i) Women’s Economic Empowerment
• T erm Loans for SC/ST W omen Entrepreneurs: 
?2 crore loan limit for 5 lakh women 
entrepreneurs.
• Saksham Anganwadi and Poshan 2.0 Mission: 
?21,960 crore (? ?1,889 crore).
• Mission Vatsalya: ?1,500 crore for women’s 
welfare programs.
(ii) Support for Small Businesses and Street 
Vendors
• PM SVANidhi Yojana Expansion
 ¾ Higher loan limits for street vendors.
 ¾Encouraging financial inclusion and 
formalization of businesses.
(iii) Infrastructure and Logistics Development
• Conversion of 1.5 lakh rural post o??ces into 
logistics hubs.
• Cost-effective rural supply chain solutions 
for MSMEs and farmers.
• ???1.5 lakh crore interest-free loans to states 
for infrastructure.
Kurukshetra March 2025: Budget 2025-26 3
Industrial and MSME Growth for Rural 
Development
(i) MSME Sector Reforms
• Revised MSME Classification:
Category Previous 
Investment 
Limit
New 
Investment 
Limit
Previous 
T urnover 
Limit
New 
T urnover 
Limit
Micro ?1 crore ?2.5 crore ?5 crore ?10 crore
Small ?10 crore ?25 crore ?50 crore ?100 crore
Medium ?50 crore ?125 crore ?250 crore ?500 crore
• Credit Guarantee Cover: ?10 crore (previously 
?5 crore).
• 10 lakh credit cards for micro enterprises.
(ii) National Manufacturing Mission
• Focus on:
 ¾ Ease of Doing Business.
 ¾ Workforce skill development.
 ¾ Technology-driven quality products.
• MSME Contribution to Exports:
 ¾ 45% of total exports.
 ¾ 36% contribution to manufacturing.
 ¾ Employment to 7.5 crore people.
(iii) ?10,000 Crore Startup Fund
• Support for innovation, entrepreneurship, 
and easy credit access.
• Boosting domestic and global presence of 
Indian startups.
Conclusion
The Union Budget 2025-26 has taken bold steps 
to accelerate rural economic growth, increase 
farmers’ income, and enhance rural employment 
opportunities. With higher agricultural 
investments, MSME reforms, and a strong focus 
on women empowerment, the government 
is addressing key economic challenges 
while fostering sustainable development. If 
successfully implemented, these initiatives can 
drive inclusive growth and strengthen India’s 
position as a global economic powerhouse by 
2047.
TOPIC 2: UNION BUDGET 2025-26: 
DEVELOPMENT DIMENSIONS
The Union Budget 2025-26 is a crucial step 
in India’s economic roadmap, particularly in 
driving rural development, infrastructure, 
employment generation, and social welfare. 
The budget aligns with the long-term vision of 
Viksit Bharat@2047 by prioritizing investments 
in key sectors like agriculture, rural economy, 
skill development, MSMEs, and infrastructure.
Economic Context: Insights from the Economic 
Survey 2024-25
The Economic Survey 2024-25, tabled in 
Parliament on 31 January 2025, highlighted 
India’s resilient economic growth amidst global 
challenges. The survey noted:
• Slowdown in global manufacturing due to 
supply chain disruptions and weak demand 
from Europe and Asia.
Page 5


SUMMARY OF
MARCH 2025
KURUKSHE T R A
Kurukshetra March 2025: Budget 2025-26 1
TOPIC 1:  INITIATIVES TO BOOST 
RURAL ECONOMY WHILE 
INCREASING INCOME AND 
CONSUMPTION
Introduction
India, being a predominantly consumption-
based economy, requires continuous efforts 
to stimulate demand, investment, and rural 
economic growth. In the Union Budget 2025-26, 
several initiatives have been proposed to enhance 
rural income, improve agricultural productivity, 
and strengthen rural infrastructure, all while 
maintaining fiscal balance. This article explores 
the various measures introduced in the budget 
to boost the rural economy, increase income, and 
stimulate consumption.
1.  Current Economic Scenario and Need for 
Growth
(i) Fiscal Targets and Growth Projection  
• Revenue Generation Targets:
 ¾ The government aims to collect ?42.70 lakh 
crore in revenue for FY 2025-26, which 
is 11% higher than the ?38.53 lakh crore 
target for FY 2024-25.
 ¾ Direct tax collection target: ?25.20 lakh 
crore (? 14.4%).
 ¾ Indirect tax collection target: ?17.50 lakh 
crore (? 10.4%).
• GDP Growth Projections:
 ¾ First Advance Estimate (2024-25): 6.4% 
GDP growth.
 ¾ RBI Projection (2024-25): 6.6% growth.
 ¾ Projected GDP Growth (2025-26): 6.7%.
(ii) Challenges A??ecting Growth
• Global Factors:
 ¾ Tariff changes, protectionist policies, and 
US Federal Reserve interest rates affecting 
global markets.
• Domestic Factors:
 ¾ Declining GDP growth (5.4% in Q2 2024-
25).
 ¾ Need to boost consumption, investment, 
and exports.
Budget Initiatives to Strengthen the Rural 
Economy
(i) Agriculture and Rural Development 
Investments
• T otal Allocation for Farmers: ?2.66 lakh crore 
( ? ?1,000 crore from last year).
• Fertilizer Subsidy: ?1.67 lakh crore ( ? ?3,000 
crore).
• Agriculture Development Scheme: ?8,500 
crore ( ? ?947 crore).
• Animal Husbandry and Dairy: ?1,050 crore 
( ?from ?369 crore).
(ii) Increasing Farmers’ Income
(a) Kisan Credit Card (KCC) Loan Limit 
Enhancement
• Loan limit increased from ?3 lakh to ?5 lakh.
• Interest subsidy:
 ¾ 2% general subsidy.
 ¾3% additional subsidy for timely 
repayment (effective interest rate 4%).
• Bene??ciaries: 7.75 crore farmers.
Kurukshetra March 2025: Budget 2025-26 2
(b) Pradhan Mantri Dhan-Dhanya Krishi Yojana
• Focus on 100 low-yield districts.
• Financial aid for irrigation, storage, and 
improved seeds.
• Estimated beneficiaries: 1.7 crore farmers.
(c) Five-Year Missions for Agricultural Growth
• Cotton Technology Mission
 ¾ Promotes long-fiber cotton varieties.
 ¾ Aims to improve cotton quality and 
processing.
• Pulses Self-Reliance Mission
 ¾ Focus on pigeon peas, black lentils, and 
other pulses.
 ¾ 100% procurement assurance for farmers 
by NAFED & NCCF.
Fisheries and Self-Reliance in Agriculture:-
(i) Special Economic Zones (SEZs) for Fisheries
• India’s seafood industry is valued at ?60,000 
crore.
• SEZs for ??sheries to boost aquaculture and 
employment (benefiting 2.8 crore ??shermen ).
(ii) Self-Su??ciency in Urea Production
• New urea plant in Namrup, Assam (12.7 
lakh metric tons/year capacity).
• Reduction in import dependence.
Boosting Rural Employment and Consumption   
(i) Women’s Economic Empowerment
• T erm Loans for SC/ST W omen Entrepreneurs: 
?2 crore loan limit for 5 lakh women 
entrepreneurs.
• Saksham Anganwadi and Poshan 2.0 Mission: 
?21,960 crore (? ?1,889 crore).
• Mission Vatsalya: ?1,500 crore for women’s 
welfare programs.
(ii) Support for Small Businesses and Street 
Vendors
• PM SVANidhi Yojana Expansion
 ¾ Higher loan limits for street vendors.
 ¾Encouraging financial inclusion and 
formalization of businesses.
(iii) Infrastructure and Logistics Development
• Conversion of 1.5 lakh rural post o??ces into 
logistics hubs.
• Cost-effective rural supply chain solutions 
for MSMEs and farmers.
• ???1.5 lakh crore interest-free loans to states 
for infrastructure.
Kurukshetra March 2025: Budget 2025-26 3
Industrial and MSME Growth for Rural 
Development
(i) MSME Sector Reforms
• Revised MSME Classification:
Category Previous 
Investment 
Limit
New 
Investment 
Limit
Previous 
T urnover 
Limit
New 
T urnover 
Limit
Micro ?1 crore ?2.5 crore ?5 crore ?10 crore
Small ?10 crore ?25 crore ?50 crore ?100 crore
Medium ?50 crore ?125 crore ?250 crore ?500 crore
• Credit Guarantee Cover: ?10 crore (previously 
?5 crore).
• 10 lakh credit cards for micro enterprises.
(ii) National Manufacturing Mission
• Focus on:
 ¾ Ease of Doing Business.
 ¾ Workforce skill development.
 ¾ Technology-driven quality products.
• MSME Contribution to Exports:
 ¾ 45% of total exports.
 ¾ 36% contribution to manufacturing.
 ¾ Employment to 7.5 crore people.
(iii) ?10,000 Crore Startup Fund
• Support for innovation, entrepreneurship, 
and easy credit access.
• Boosting domestic and global presence of 
Indian startups.
Conclusion
The Union Budget 2025-26 has taken bold steps 
to accelerate rural economic growth, increase 
farmers’ income, and enhance rural employment 
opportunities. With higher agricultural 
investments, MSME reforms, and a strong focus 
on women empowerment, the government 
is addressing key economic challenges 
while fostering sustainable development. If 
successfully implemented, these initiatives can 
drive inclusive growth and strengthen India’s 
position as a global economic powerhouse by 
2047.
TOPIC 2: UNION BUDGET 2025-26: 
DEVELOPMENT DIMENSIONS
The Union Budget 2025-26 is a crucial step 
in India’s economic roadmap, particularly in 
driving rural development, infrastructure, 
employment generation, and social welfare. 
The budget aligns with the long-term vision of 
Viksit Bharat@2047 by prioritizing investments 
in key sectors like agriculture, rural economy, 
skill development, MSMEs, and infrastructure.
Economic Context: Insights from the Economic 
Survey 2024-25
The Economic Survey 2024-25, tabled in 
Parliament on 31 January 2025, highlighted 
India’s resilient economic growth amidst global 
challenges. The survey noted:
• Slowdown in global manufacturing due to 
supply chain disruptions and weak demand 
from Europe and Asia.
Kurukshetra March 2025: Budget 2025-26 4
• India’s competitive advantage in managing 
demand and supply mechanisms effectively.
• Revival in rural demand and agricultural 
productivity, aided by food inflation control 
and macro-economic stability.
Citizen’s Pre-Budget Expectations:
• Increased income and employment 
opportunities.
• Stronger infrastructure development.
• Higher allocation to social welfare and 
business-friendly policies.
Budget Highlights: Allocation and Development 
Push
Key Financial Figures: The budget aims at 
accelerating economic growth, enhancing 
infrastructure, and promoting social welfare.
• Total Expenditure: ?50.65 lakh crore (vs ?47.16 
lakh crore in 2024-25).
• Effective Capital Expenditure: ?15.48 lakh 
crore (vs ?10.18 lakh crore in 2024-25).
• Higher Allocation to Priority Sectors: 
Agriculture, MSMEs, rural employment, 
infrastructure.
Vision for Viksit Bharat@2047
• A developed and self-reliant India with 
economic prosperity.
• Focus on innovation, technology, 
environmental sustainability, and 
governance.
• Major push for rural development with 
an allocation of ?1.87 lakh crore to the 
Department of Rural Development (+5.75% 
from 2024-25).
Sector-Wise Analysis
  (i) Agriculture and Farmers’ Welfare
• Prime Minister’s Dhan-Dhaanya Krishi 
Yojana: Launched in 100 districts to integrate 
existing agriculture schemes.
• Key Focus Areas:
 ¾ Sustainable agricultural practices (organic 
farming, agroforestry).
 ¾Improved irrigation and water 
management through PM Krishi Sinchai 
Yojana (PMKSY) ( ?8,260 crore).
 ¾Higher investment in post-harvest 
infrastructure (cold storage, logistics).
 ¾ Strengthening of PM-Kisan Samman 
Nidhi.
• Fertilizer Subsidy Shift:
 ¾ Urea subsidy reduction in favor of 
nutrition-based subsidies.
 ¾ Emphasis on biofertilizers and precision 
farming to reduce soil degradation.
(ii) Food Processing Industries
• PM Formalization of Micro-Food Processing 
Enterprises (PMFME) saw a 4.8% hike in 
allocation.
• Focus on:
 ¾ Technology upgradation & modern 
processing units.
 ¾ Improved product quality & business 
scalability.