On February 1, 2025, Union Finance Minister Nirmala Sitharaman presented the Union Budget for 2025, marking her eighth consecutive budget speech. With a clear focus on fostering India’s economic growth, the Finance Minister highlighted key areas—Agriculture, MSMEs, Investment, and Exports—as the driving forces for progress. She emphasized that reforms act as the fuel propelling these sectors forward, and stated, “A country is not just its soil, it’s the people,” reflecting a human-centric approach to economic development. This budget aims to lay the foundation for a more resilient, inclusive, and self-reliant India.
- Agriculture and Rural Development Initiatives
Prime Minister Dhan-Dhaanya Krishi Yojana: This initiative targets 100 districts with low agricultural productivity and aims to boost crop yields, credit access, and overall productivity.
Focus on Fruits and Vegetables: A new program will be launched to improve the production of fruits and vegetables, promoting healthier living and meeting the growing demand for nutritious foods.
Sustainable Marine Sector: The government is prioritizing sustainable fisheries, particularly in the Andaman and Lakshadweep regions, supporting eco-friendly practices in the Indian Exclusive Economic Zone and high seas.
Increased Loan Limit: The loan limit under the Modified Interest Subvention Scheme will increase from ₹3 lakh to ₹5 lakh for loans under the Kisan Credit Card (KCC) scheme, benefiting farmers across the country.
- Strengthening MSMEs and Startups
MSME Empowerment: The government has raised investment and turnover limits for MSMEs, increasing them by 2.5 times for investment and 2 times for turnover. This move is set to enhance the scalability and competitiveness of MSMEs.
Alternate Investment Fund (AIF): Aimed at supporting startups, the AIF has already garnered commitments exceeding ₹91,000 crore, with an additional ₹10,000 crore earmarked to further support innovation.
Loans for Women and Minorities: A new initiative will provide loans up to ₹2 crore to 5 lakh women and minority entrepreneurs, empowering them to establish and expand their businesses.
Focus on Footwear & Leather Sectors: A new scheme will generate 22 lakh jobs, achieve a turnover of ₹4 lakh crore, and boost exports to ₹1.1 lakh crore in these vital industries.
National Institute of Food Technology: A new institute in Bihar will foster food processing and entrepreneurship, contributing to the growth of the food sector in India.
- Investment in Human Capital
Bharat Net Project: The expansion of broadband connectivity will extend to all government secondary schools and primary health centers in rural areas, bridging the digital divide.
Atal Tinkering Labs: The establishment of 50,000 Tinkering Labs in government schools within five years will encourage innovation and curiosity among students.
Expansion of IITs and Medical Colleges: Additional infrastructure will be created at five IITs to accommodate 6,500 more students. In the medical education sector, 10,000 new seats will be added, contributing to a total of 75,000 new seats over the next five years.
Cancer Care Infrastructure: The government plans to set up 200 Day Care Cancer Centres across district hospitals by 2025-26 to enhance access to cancer treatment.
PM SVANidhi Scheme: This scheme will be revamped to provide enhanced loans, UPI-linked credit cards, and capacity-building support to street vendors.
Social Security for Gig Workers: The government will register gig workers on the e-Shram portal, offer healthcare under PM Jan Arogya Yojana, and provide identity cards to nearly 1 crore gig workers.
Centre of Excellence in AI for Education: A ₹500 crore Centre will be established to integrate AI into education, fostering innovation and skills development.
- Investment in Economy and Innovation
Public-Private Partnership in Infrastructure: A three-year pipeline of infrastructure projects will be created with public-private partnership (PPP) implementation, supported by the India Infrastructure Project Development Fund (IIPDF).
Interest-Free Loans for States: ₹1.5 lakh crore will be allocated for 50-year interest-free loans to states for capital expenditure and reform incentives, stimulating state-level development.
Nuclear Energy Mission: The government is focused on developing 100 gigawatts of nuclear power capacity and researching Small Modular Reactors (SMRs), with a ₹20,000 crore outlay to support the mission.
Maritime Development Fund: A ₹25,000 crore fund will be established to support long-term financing for the maritime industry.
Regional Connectivity: The UDAN scheme will be expanded to enhance connectivity to 120 new destinations and aim to carry 4 crore passengers over the next 10 years.
- Tourism and Export Development
Tourist Destinations Development: In collaboration with state governments, 50 major tourist destinations will be developed, along with visa-free waivers for certain tourists.
Bharat Trade Net: A unified digital platform for international trade documentation and financing will streamline the export process.
National Framework for GCC: A new framework will guide states in promoting Global Capability Centres (GCC) in Tier 2 cities, focusing on talent, infrastructure, and industry collaboration.
- Regulatory Reforms and Investments
FDI Limit in Insurance: The Foreign Direct Investment (FDI) limit in the insurance sector will be increased from 74% to 100%, attracting more foreign investment.
Postal Banking Expansion: India Post Payment Bank services will be extended to rural areas, expanding banking access to underserved regions.
Central KYC Registry: The KYC process will be simplified and enhanced through a revamped registry.
Merger of Companies: The approval process for company mergers will be streamlined with simplified procedures for faster approvals.
Regulatory Reforms Committee: A high-level committee will review non-financial sector regulations and procedures, facilitating business growth and ease of operations.
- Fiscal Year 2025-26 Budget Estimates
Receipts and Expenditure: The total receipts for 2025-26 (excluding borrowings) are estimated at ₹34.96 lakh crore, while total expenditure is pegged at ₹50.65 lakh crore.
Net Tax Receipts: Estimated at ₹28.37 lakh crore.
Fiscal Deficit: Projected at 4.4% of GDP.
The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, is a forward-thinking plan to stimulate India’s economic growth. By prioritizing agriculture, MSMEs, innovation, infrastructure, and social welfare, the government is taking significant steps toward building a self-reliant and inclusive economy. The initiatives outlined in this budget aim to foster sustainable growth, create jobs, and position India as a global economic leader in the coming years.