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Budget 2025 Highlights: NPS Vatsalya contribution to get tax benefit up to Rs 50,000
05 Feb, 2025 | 08:47:45 PM IST
Synopsis
Union Budget 2025 Highlights: To make NPS Vatsalya more attractive, Finance Minister Nirmala Sitharman on Saturday proposed tax exemption for contribution up to Rs 50,000 per year under the scheme. "I am also proposing to allow similar treatment to NPS Vatsalya accounts as is available to normal NPS accounts, subject to overall limits," she said while presenting Budget 2025-26 in Lok Sabha. However, the tax benefit would be availed by those who opt for old tax regime. NPS-Vatsalya scheme, announced in the Union Budget 2024-25 as a plan that allows parents and guardians to contribute to minors' accounts, was launched on September 18, 2024.
Budget 2025 Highlights: In a big boost to the Indian middle class, Finance Minister Nirmala Sitharaman on Saturday announced that there will be no income tax payable for incomes up to Rs 12 lakh, and Rs 12.75 lakh for salaried taxpayers (including standard deduction) in the new tax regime.
Here's a look at new tax slabs;
Here's a summary of all the major Budget announcements;
Finance Minister Nirmala Sitharaman has put the middle class squarely at the centre of her Budget by announcing nil income tax up to Rs 12 lakh income. Her previous budgets were marked by huge amounts of money marked for capital expenditure aimed at building infrastructure such as railways and highways. In this budget, Sitharaman has decided to raise capital expenditure at a lower rate. The capital expenditure for 2025-26 will be 11.2 lakh crore, marginally higher from Rs 11.1 lakh crore in the previous budget when she had raised it by 11%, slowing down the breathtaking speed in previous years. Known for her prudent budgeting, she has stayed the course on fiscal deficit by announcing it to be 4.4% for next financial year when it was expected to be below 4.5%. Sitharaman has also not taken her attention off the Viksit Bharat roadmap as she has detailed plans to rejuvenate several critical sectors such as agriculture and small industry, calling them engines of development. She has also laid emphasis on human capacity enhancement and skilling as well as outlining a reformist agenda for several sectors. These steps aim at powering economic growth in the long run. Sitharaman's Budget is high on hope when consumer demand is low, inflation has hit the common people, and GDP growth has slumped while concerns over job creation persist.
This Budget comes as GDP growth is projected to fall to a four-year low of 6.4% in FY24, near its decadal average. The Economic Survey forecasts 6.3-6.8% growth in FY26, well below the pace required to achieve Viksit Bharat by 2047. It stresses the need for land and labour reforms to drive growth.
With India's world-leading growth showing signs of moderation, the push for an 8% annual growth rate remains crucial. The projected growth for FY25-26 compares to an estimated 6.4% in FY24 and 8.2% in FY23-24.
Budget 2025 Live streaming: When and where to watch Nirmala Sitharaman’s speech;
Budget Speech Timing: Scheduled for 11 a.m. on February 1 in the Lok Sabha.
Live Broadcast: Available on Sansad TV, DD News, and Sansad TV’s YouTube channel.
Online Updates: Follow all Budget 2025 updates on economictimes.com
Key numbers to watch out for in the Union Budget for 2025-26:
Fiscal Deficit
Capital Expenditure
Debt Roadmap
Borrowing
Tax Revenue
GST
Nominal GDP
Dividend
Disinvestment & Asset Monetisation
Budget FAQs
What is the Union Budget?
The Union Budget is the annual financial statement of the government. It outlines revenue and expenditure for the upcoming financial year.
Who presents the Union Budget?
Finance Minister Nirmala Sitharaman presents the Budget in Parliament.
When is the Budget presented?
The Budget is presented on February 1.
What are the key components of the Budget?
Revenue Budget
Expenditure Budget
Fiscal Deficit
GDP Growth Projections
Policy Announcements
Will there be changes in income tax slabs?
Given the pressure on middle class, Nirmala Sitharaman may propose changes in tax slabs, exemptions, and deductions under the old and new tax regimes in the budget.
What are the indirect tax changes?
Major indirect taxes are GST, customs, excise duties etc. The Budget can alter GST rates, impose or reduce customs and excise duties, impacting imported goods and services.
Show moreHere's a look at new tax slabs;
- Income up to Rs 4 lakh (per annum) ----- Nil
- Between Rs 4 and 8 lakh ---------------- 5 per cent (tax)
- Between Rs 8 and 12 lakh --------------- 10 per cent
- Between Rs 12 and 16 lakh -------------- 15 per cent
- Between Rs16 and 20 lakh --------------- 20 per cent
- Between Rs 20 and 24 lakh -------------- 25 per cent
- Above Rs 24 lakh ------------------------- 30 per cent
- Nil tax slab will apply for annual income up to Rs 12 lakh (Rs 12.75 lakh for salaried tax payers with standard deduction of Rs 75,000) under new tax regime.
Here's a summary of all the major Budget announcements;
Finance Minister Nirmala Sitharaman has put the middle class squarely at the centre of her Budget by announcing nil income tax up to Rs 12 lakh income. Her previous budgets were marked by huge amounts of money marked for capital expenditure aimed at building infrastructure such as railways and highways. In this budget, Sitharaman has decided to raise capital expenditure at a lower rate. The capital expenditure for 2025-26 will be 11.2 lakh crore, marginally higher from Rs 11.1 lakh crore in the previous budget when she had raised it by 11%, slowing down the breathtaking speed in previous years. Known for her prudent budgeting, she has stayed the course on fiscal deficit by announcing it to be 4.4% for next financial year when it was expected to be below 4.5%. Sitharaman has also not taken her attention off the Viksit Bharat roadmap as she has detailed plans to rejuvenate several critical sectors such as agriculture and small industry, calling them engines of development. She has also laid emphasis on human capacity enhancement and skilling as well as outlining a reformist agenda for several sectors. These steps aim at powering economic growth in the long run. Sitharaman's Budget is high on hope when consumer demand is low, inflation has hit the common people, and GDP growth has slumped while concerns over job creation persist.
This Budget comes as GDP growth is projected to fall to a four-year low of 6.4% in FY24, near its decadal average. The Economic Survey forecasts 6.3-6.8% growth in FY26, well below the pace required to achieve Viksit Bharat by 2047. It stresses the need for land and labour reforms to drive growth.
With India's world-leading growth showing signs of moderation, the push for an 8% annual growth rate remains crucial. The projected growth for FY25-26 compares to an estimated 6.4% in FY24 and 8.2% in FY23-24.
Budget 2025 Live streaming: When and where to watch Nirmala Sitharaman’s speech;
Budget Speech Timing: Scheduled for 11 a.m. on February 1 in the Lok Sabha.
Live Broadcast: Available on Sansad TV, DD News, and Sansad TV’s YouTube channel.
Online Updates: Follow all Budget 2025 updates on economictimes.com
Key numbers to watch out for in the Union Budget for 2025-26:
Fiscal Deficit
Capital Expenditure
Debt Roadmap
Borrowing
Tax Revenue
GST
Nominal GDP
Dividend
Disinvestment & Asset Monetisation
Budget FAQs
What is the Union Budget?
The Union Budget is the annual financial statement of the government. It outlines revenue and expenditure for the upcoming financial year.
Who presents the Union Budget?
Finance Minister Nirmala Sitharaman presents the Budget in Parliament.
When is the Budget presented?
The Budget is presented on February 1.
What are the key components of the Budget?
Revenue Budget
Expenditure Budget
Fiscal Deficit
GDP Growth Projections
Policy Announcements
Will there be changes in income tax slabs?
Given the pressure on middle class, Nirmala Sitharaman may propose changes in tax slabs, exemptions, and deductions under the old and new tax regimes in the budget.
What are the indirect tax changes?
Major indirect taxes are GST, customs, excise duties etc. The Budget can alter GST rates, impose or reduce customs and excise duties, impacting imported goods and services.
1 New Update
Budget 2025 Highlights: Here's all you need to know
- Raising income tax slab unprecedented, says Eknath Shinde hailing Union Budget
- Railways gets Rs 2.52 lakh crore allocation
- Praful Patel hails tax relief, calls it a 'new direction' for middle class
- NPS Vatsalya contribution to get tax benefit up to Rs 50,000
- Piyush Goyal hits out at opposition over allocation of funds to Bihar, calls it 'jealousy'
- TMC's Kunal Ghosh calls Union Budget 2025 'anti-people'
- Congress dubs Union Budget disappointing; AAP says nothing in it for farmers, job creation
- Jairam Ramesh calls for GST reforms, flags inequality
- Rahul Gandhi slams Budget 2025, calls it a 'gift to billionaires
- Economy will trudge along on old path, deliver no more than usual 6% or 6.5% growth in 2025-26: Chidambaram
- 1 crore more people will pay no tax post Budget announcement: Sitharaman
- Big relief for middle-class! No Income Tax payable up to Rs 12 Lakh under new tax regime
- PM Modi hails this budget as "people's budget"
Budget 2025 Highlights: 'It's a dream budget for middle class,' says Fadnavis
Maharashtra Chief Minister Devendra Fadnavis on Saturday described the Union Budget as a "dream budget" for the middle class, stating that it will spur growth and lead to an inclusive economy. Fadnavis hailed the decision to raise the income tax exemption for income up to Rs 12 lakh from Rs 7 lakh under the new tax regime. This is a bold step that proves to be a milestone in the economic history of the country.
Budget 2025 Highlights: Enough guardrails in Budget proposal to enhance FDI limit in insurance sector, says Sitharaman
Union Finance Minister Nirmala Sitharaman has said that the Union Budget's proposal to increase the FDI limit in the insurance sector from 74 to 100 per cent will attract more funds and safeguards will ensure all premiums collected in India are reinvested locally. In an interview with DD News, the Finance Minister explained the rationale behind tax relief in the Union Budget, noting that the priority is returning money to the taxpayers who are the backbone of the economy.
Budget 2025 Highlights: Tata Tech CEO Warren Harris backs manufacturing, AI, and skilling initiatives
"The budget's focus on establishing a National Manufacturing Mission aligns with our goal of engineering in India for 'Make in India' and enhancing the nation's self-reliance in manufacturing. This initiative is poised to attract investments and improve efficiency, positioning Indian companies as globally competitive players.
The establishment of five National Centres of Excellence for Skilling is a pivotal move in building a future-ready workforce. This initiative resonates with our commitment to engineering a better future for India's youth through investment in in-demand training programs across Industry 4.0, IoT, and advanced manufacturing, and collaborating with state governments to upgrade ITIs into technology hubs. Additionally, the allocation of Rs 500 crore for a Centre of Excellence in Artificial Intelligence for education underscores the importance of fostering innovation and research in AI, which will benefit both the education sector and the broader technology landscape."
The establishment of five National Centres of Excellence for Skilling is a pivotal move in building a future-ready workforce. This initiative resonates with our commitment to engineering a better future for India's youth through investment in in-demand training programs across Industry 4.0, IoT, and advanced manufacturing, and collaborating with state governments to upgrade ITIs into technology hubs. Additionally, the allocation of Rs 500 crore for a Centre of Excellence in Artificial Intelligence for education underscores the importance of fostering innovation and research in AI, which will benefit both the education sector and the broader technology landscape."
Budget 2025 Highlights: Raising income tax slab unprecedented, says Eknath Shinde hailing Union Budget
Maharashtra deputy chief minister Eknath Shinde on Saturday said raising the income tax slab to Rs 12 lakh in the Union Budget for 2025-26 was "unprecedented" and has underlined the role of the middle class, poor and weaker sections in the development of the country. The budget has given justice to all sections of society and is an assurance of realising the dream of "Viksit Bharat", Shinde said.
Budget 2025 Highlights: Railways gets Rs 2.52 lakh crore allocation
The government has approved a budget allocation of Rs 2.52 lakh-crore for the Railways for 2025-26 financial year, almost the same amount that was allocated in 2024-25. According to the Union Budget presented by Finance Minister Nirmala Sitharaman on Saturday, the Railways has targeted higher revenues from passengers, goods and others heads.
Budget 2025 Highlights: Praful Patel hails tax relief, calls it a 'new direction' for middle class
NCP Working President Praful Patel says, "The budget is really good and it will give a new direction to the middle-class people. They always want to get some relief from Income Tax. Such a huge step has been taken for the middle class by raising the Income Tax slab from Rs 7 lakhs to Rs 12 lakhs. This will benefit the people staying in the urban areas. Apart from this, there are several other things in the budget, especially for the farmers, for technology innovation, education, medicines and to increase the country's exports. The opposition has always been saying ill about the budget, they keep finding some or the other issues in the budget..."
Budget 2025 Highlights: NPS Vatsalya contribution to get tax benefit up to Rs 50,000
To make NPS Vatsalya more attractive, Finance Minister Nirmala Sitharman on Saturday proposed tax exemption for contribution up to Rs 50,000 per year under the scheme. "I am also proposing to allow similar treatment to NPS Vatsalya accounts as is available to normal NPS accounts, subject to overall limits," she said while presenting Budget 2025-26 in Lok Sabha.
Budget 2025 Highlights: How to pay zero tax in new tax regime
The new income tax slabs under the new tax regime are announced in the Budget 2025. As per the proposed income tax slabs, there will be nil tax on income up to Rs.4 lakh, 5% on incomes between Rs 4 lakh and Rs 8 lakh, 10% on incomes between Rs 8 lakh and Rs 12 lakh, 15% on incomes between Rs 12 lakh and Rs 16 lakh, 20% on incomes between Rs 16 lakh and Rs 20 lakh, 25% on incomes between Rs 20 lakh and Rs 24 lakh and 30% on incomes above Rs 24 lakh. (Read more)
Budget 2025 Highlights: Piyush Goyal hits out at opposition over allocation of funds to Bihar, calls it 'jealousy'
Union minister Piyush Goyal hit out at opposition parties over their remarks regarding announcements made for Bihar in the 2025 Union Budget, accusing them of being "jealous" of the development the state is receiving. He demanded that the opposition clarify whether they want Bihar to develop or not.
Budget 2025 Highlights: 'The Budget marks a bold step toward India’s digital and AI-driven future'
"The Budget marks a bold step toward India’s digital and AI-driven future. The government’s focus on AI innovation, digital governance, and workforce transformation will play a crucial role in shaping the next phase of growth. The investment in Centre of Excellence in AI for Education, along with the expansion of National Centres of Excellence for Skilling, will be instrumental in building an AI-ready workforce and strengthen India’s position as a global AI hub. These forward-looking initiatives will accelerate AI adoption and enhance efficiency across industries. The emphasis on AI skilling aligns with our belief that successful AI integration requires a workforce equipped with future-ready skills. Through our learning and development programs, we remain committed to enabling talent to thrive in an AI-powered economy. This budget sets the stage for AI-led growth and innovation," Rajesh Varrier, EVP, Global Head of Operations, Chairman and MD, Cognizant India said.
I would like to ask some questions on behalf of the countrymen. Does the budget mention anything about reducing the price of petrol, diesel and cooking gas?.. Does the budget mention anything about generating new jobs and about 20 lakh vacant government posts?...Has any measure or special provision been made in this budget to reduce inflation?
- Congress MP Randeep Singh Surjewala
Budget 2025 Highlights: 'Govt's focus on infra expected to drive growth in the steel sector'
"The Budget introduces several measures poised to benefit the stainless steel industry. The government's focus on infrastructure development and sustainability is expected to drive growth in the sector. Looking ahead, strengthening Free Trade Agreements (FTAs/PTAs), incentivizing green energy investments, and ensuring stable export incentives will be crucial for enhancing India's competitiveness in the stainless steel sector. A predictable trade environment and targeted policy support will be key to sustaining long-term industry growth," Rakesh Chauhan, MD, Viraj Profiles said.
Budget 2025 Highlights: Budget 2025 empowers fintech, financial inclusion, says Home Credit India CEO
Ondrej Kubik, CEO, Home Credit India on Union Budget 2025, says “The Union Budget 2025 highlights a decisive push towards financial empowerment and inclusion and a digitally-driven economy. The government’s vision to expand access to formal credit, strengthen the digital financial literacy, and enable a thriving fintech ecosystem aligns well with our mission at Home Credit India. We welcome the budget’s provisions aimed at supporting the Middle and Lower-income groups, enhancing consumer protection, and fostering responsible lending practices. The focus on ease of compliance and ease of doing business, rationalisation of customs duties, widening the scope of MSMEs and the sustained emphasis on agrarian economy are all positive steps, reinforcing the core growth elements. As a responsible lender, we remain committed to driving financial inclusion by offering simple, transparent, and accessible credit solutions to underserved communities. By leveraging technology and innovation, we will continue to support India’s vision of a financially resilient and digitally empowered nation, ensuring that millions of consumers can achieve their financial aspirations with confidence."
Budget 2025 Highlights: Here are the sectors that stand to gain from Budget 2025
Finance Minister Nirmala Sitharaman's Budget 2025 stands out for its big tax benefits to the middle class, but several of her proposals will also impact different sectors positively. Below is a list of sectors, from EVs to shipping to insurance to footwear, which stand to gain from Sitharaman's proposals. (Read more)
Budget 2025 Highlights: Congress disappointed; AAP slams it
Opposition Congress and Aam Aadmi Party in Gujarat expressed disappointment over the Union Budget, stating that there was nothing significant for Gujarat in it, and also did not speak about the development of farmers and employment generation. Congress leader Shaktisinh Gohil said the budget is completely disappointing as there is nothing for the common man.
Budget 2025 Highlights: Union Budget 2025 boosts infra, tourism, says Rajasthan Dy CM
Rajasthan Dy CM and Finance Minister, Diya Kumari says, "I thank Prime Minister and Finance Minister for an all-inclusive budget... The limit of interest-free loans to the states has also been increased... Infrastructure has gained a lot of emphasis in the budget and so has manufacturing, for Atmanirbhar Bharat... This is a very important budget towards Viksit Bharat... I am also grateful for accessible and affordable services that will be provided in 120 new areas, as well as the announcement for 50 new tourist places that will give a boost to tourism..."
Budget 2025 Highlights: Union Budget 2025 ensures all-round development, says Scindia
Jyotiraditya Scindia says "...This is a budget of all-round development under the leadership of Prime Minister Modi... A rapid pace has been given to the field of agriculture... Our marginal farmers have been given a loan facility of about Rs 1.5 lakh crore... In the Har Ghar Nal Yojana, it has been underlined that it will be completed by 2028... Our middle-class people have also been given income tax exemption ..."
Budget 2025 Highlights: 'The Budget lays a strong foundation for startups, FMCG, D2C, and retail'
"The Budget lays a strong foundation for startups, FMCG, D2C, and the retail sector by providing innovation and boosting consumption. The Rs 10,000 crore Fund of Funds will provide much-needed capital, encouraging homegrown brands to scale. Tax relief for salaried individuals is set to enhance consumer spending, benefiting FMCG and retail businesses. With India’s strong economic growth with 10.1% of GDP and control on fiscal deficit at 4.4% together with rising domestic demand, this budget fuels both entrepreneurship and market expansion. It’s a significant step towards a self-sustaining and consumption-driven economy. The scheme will incorporate lessons from the successful Stand-Up India scheme. It is a radical step to a self-sustainable and consumption-based economy. However, the capex target of Rs 11.2 lakh crore, though higher than last year, fell short of industry expectations, potentially dampening PSU infrastructure sentiment. Additionally, gross market borrowings rose by 5.7% to Rs 14.8 lakh crore to finance a 4.4% fiscal deficit, which may be negative for PSU banks. The unchanged railway sector allocation of Rs 2.55 lakh crore for FY26 signals limited growth prospects, leading to marginal negative sentiment in the sector," Anurag Bhamidipaty, Co-founder, Roastea. (Retail/D2C) said.
Budget 2025 Highlights: Rahul Gandhi slams Budget 2025, calls it a 'gift to billionaires'
Addressing a public rally in Sadar Bazar, Lok Sabha LoP and Congress MP Rahul Gandhi says, "The budget was presented today, the target of the budget was to benefit 25 people. They will give you a little, they will waive a little tax but if you see the target of the budget, is to provide India's money to 20-25 billionaires. In India, 50% are backward class, 15% are Dalits, 8% are tribals, 15% are minorities and suppose, 5% are from poor, general-class people. Look at the owners of private hospitals, colleges and universities, big companies, take out the list of big judges and show me who are from the backward class, who are Dalits, who are tribals, minorities, how many are from the poor general class, they are the elected people, they are their friends..."
Budget 2025 Highlights: 'Measures for MSMEs to bolster their growth, enhance financial access'
"The government's emphasis on strengthening MSMEs in this year’s budget is evident. Increasing the credit guarantee cover from ₹5 crore to ₹10 crore is a crucial step that will unlock ₹1.5 lakh crore in additional credit over the next five years. Additionally, a term loan of up to ₹20 crore will be provided to well-run export-oriented MSMEs, further supporting their expansion. With MSMEs employing 7.5 crore individuals and contributing 36% to manufacturing, these measures will bolster their growth, enhance financial access, and reinforce India’s position as a global manufacturing hub," Kiran Dev, CEO, BizongoFin (MSME) said.
Budget 2025 Highlights: How Budget raises tax-free perk limits for salaried employees
Budget 2025 has increased the limits for being qualified for tax free perquisite for salaried. Now more employees (depending upon the increase in limit of gross total income to be notified) are eligible for tax-free perquisite for any expenditure incurred by the employer for travel outside India on the medical treatment of an employee or any member of the employee’s family. (Read more)
Budget 2025 Highlights: India Inc hails 'bold' Budget
The Modi 3.0 government's first full Budget provides a comprehensive blueprint to boost economic growth and create jobs in the world's fifth-largest economy with a heavy dose of "bold" reforms to drive consumption and stimulate investment, India Inc said on Saturday. Industry bodies and corporate leaders said the Budget proposals, especially the slashing of personal income tax rates, will re-energise the economy by lifting the sentiments of the middle class and nudging the private sector to advance its investment plans, amid uncertainty over the global economic outlook and growing concerns due to potential new tariff barriers.
Budget 2025 Highlights: 'Budget takes bold steps to foster rural growth, women empowerment, and MSMEs'
“The Budget takes bold steps to foster rural growth, women empowerment, and MSME ecosystem, unlocking significant opportunities for economic growth in Bharat. Easing credit for women, SC and STs, and first-time entrepreneurs with loans up to Rs 2 Crore, alongside the revamped support for MSMEs, will not only empower local businesses but also ensure a more robust economic framework. The increase in credit guarantee covers, along with the introduction of customised credit cards for micro-enterprises, will provide much-needed relief to entrepreneurs and help sustain business growth in local economies. The announcement to develop Grameen Credit Score framework to serve the credit needs of SHG members and people in rural areas is a welcome step to boost rural economy, especially women economic development through SHG framework. Additionally, the revamped KYC process will streamline business operations, making it more efficient across sectors, while the enhanced PM Svanidhi scheme will support street vendors by encouraging digital payments and reducing reliance on informal credit," Anand Kumar Bajaj, Founder, CEO & MD, PayNearby said.
Budget 2025 Highlights: Bihar CM Nitish Kumar calls it progressive budget
Nitish Kumar, says "This budget of the Central Government is progressive and future-oriented. Through this budget, the Central Government has taken several steps to further increase the pace of development of the country. The announcements made for Bihar in the budget will give further impetus to the development of Bihar. Makhana farmers will benefit from the establishment of Makhana Board in the state to improve the production, processing, value addition and marketing of Makhana. Providing the facility of Greenfield airports in Bihar to meet the future needs of the state will increase the number of international flights and will greatly benefit the people here and will also accelerate the economic development of the state..."
Budget 2025 Highlights: Underwhelming budget; focuses on Delhi, Bihar voters, lacks vision, says Tharoor
Describing the Union Budget as "underwhelming", Congress leader Shashi Tharoor slammed the BJP-led Centre on Saturday for its "short-term thinking" in targeting the voters of Delhi and Bihar, and asserted that a far more visionary approach was needed to take the country out of the morass into which it might be sinking. In an interview to PTI at the news agency's headquarters here, Tharoor said he did not even hear the words "unemployment" and "inflation" from Finance Minister Nirmala Sitharaman during her budget speech.
Budget 2025 Highlights: P Chidambaram on Union Budget 2025
- Finance Minister Sitharaman walking on worn-out path, not willing to break free as we did in 1991 and 2004: P Chidambaram
- Budget full of new schemes, programmes; many of these beyond capacity of this govt: Chidambaram
- Economy will trudge along on old path, deliver no more than usual 6% or 6.5% growth in 2025-26: Cong's P Chidambaram
- Cruelest cuts were in allocations for the SC, ST, OBC and minorities, says Chidambaram
Budget 2025 Highlights: Hiranandani Group Chairman lauds fiscal deficit control, Rs 15,000 cr Swamy fund 2
Chairman, Hiranandani Group, Dr Niranjan Hiranandani says, "Nirmala Sitharaman has presented an excellent budget with a fiscal deficit consolidation which has been a target of the budget, despite that she has been able to invest into various sectors of the economy including the idea of creating funds like Swamy funds for real estate...introduction of Swamy funds 2 with Rs 15,000 crores contribution by the central govt and there will be more contribution by banks and financial institutions..."
Budget 2025 Highlights: AI push, infra expansion at 5 new IITs, 10000 extra medical seats
Infrastructure expansion at the five new IITs to facilitate 6,500 more students, 10,000 new medical seats and a big Artificial Intelligence push. These are among the big announcements made by the government for the education sector in the 2025-26 budget. The Ministry of Education has been allocated more than Rs 1.28 lakh crore in the Union Budget 2025-26, higher than the revised estimate of Rs 1.14 lakh crore in 2024-25.
Budget 2025 Highlights: SME sector hails Budget proposals announced by FM Nirmala Sitharaman
“Availability of credit access, simplification of CKYC and enhancement of credit guarantee covers for MSMEs, startups and exporters stand out as key fiscal support measures from the Government. A big increase in Udyam registrations, which is an indicator of extent of formalization of SMEs, is expected with customized credit cards. With the government expecting to give 10 lakh credit cards in a year, this is going to be yet another measure to incentivize MSME businesses to formalize and have faster access to working capital. The enhancement in the investment and turnover limits for classification of all MSMEs will spur widespread adoption of digitization among small businesses and bring them on par in terms of access to commerce and capital," Shantanu Bairagi, CEO - Veefin Capital (MSME) said.
'Enhanced PSL classification a major highlight of Budget'
"A major highlight of this budget is the enhanced Priority Sector Lending (PSL) classification. This change expands the pool of MSMEs eligible for PSL-linked credit, incentivising financial institutions to direct more funding into the sector. With more MSMEs qualifying for PSL benefits, businesses will have better access to affordable capital, reducing their reliance on high-cost borrowing and fostering long-term growth. The expansion of credit guarantee cover for micro enterprises is a critical move, unlocking Rs 1.5 lakh crore in additional lending over the next five years. This gives financial institutions greater confidence to extend credit to underserved businesses, enabling them to access working capital without collateral. Additionally, the introduction of customised credit cards for micro enterprises is another step toward financial flexibility, giving them a structured, accessible way to manage short-term expenses," Pallavi Shrivastava, Co-founder, Progcap said.
'Enhanced PSL classification a major highlight of Budget'
"A major highlight of this budget is the enhanced Priority Sector Lending (PSL) classification. This change expands the pool of MSMEs eligible for PSL-linked credit, incentivising financial institutions to direct more funding into the sector. With more MSMEs qualifying for PSL benefits, businesses will have better access to affordable capital, reducing their reliance on high-cost borrowing and fostering long-term growth. The expansion of credit guarantee cover for micro enterprises is a critical move, unlocking Rs 1.5 lakh crore in additional lending over the next five years. This gives financial institutions greater confidence to extend credit to underserved businesses, enabling them to access working capital without collateral. Additionally, the introduction of customised credit cards for micro enterprises is another step toward financial flexibility, giving them a structured, accessible way to manage short-term expenses," Pallavi Shrivastava, Co-founder, Progcap said.
Budget 2025 Highlights: Dr Naresh Trehan on tax relief, cancer care boost
On Union Budget 2025, Chairman and Managing Director of Medanta Medicity, Dr Naresh Trehan, says, "... The (income) tax relief will help to defray the cost of inflation and give people buying power. That buying power is only going to come back to the economy, which will help the country move forward... The complete duty exemption on imported cancer drugs is going to help people a lot... The creation of daycare cancer centres in every district, in which 200 will be established this year, will help cancer patients who have to travel a lot for treatment..."
Budget 2025 Highlights: Here's what Yoga Guru Ramdev said on Union Budget 2025
"PM Modi’s policies and leadership are auspicious for the nation. To fulfill his vision of a ‘Viksit Bharat,’ he has made all necessary provisions in this budget. I have full confidence in it."
On Maha Kumbh stampede he said, "PM Modi, Home Minister Amit Shah, and UP CM Yogi Adityanath are the pride of Sanatan Dharma. They barely sleep for three hours a day, working tirelessly. No accident should have happened, but unfortunately, it did. My heartfelt condolences to the victims. The investigation is underway, and any lapses will be addressed. Yogi ji will make sure that those responsible will be held accountable."
On Maha Kumbh stampede he said, "PM Modi, Home Minister Amit Shah, and UP CM Yogi Adityanath are the pride of Sanatan Dharma. They barely sleep for three hours a day, working tirelessly. No accident should have happened, but unfortunately, it did. My heartfelt condolences to the victims. The investigation is underway, and any lapses will be addressed. Yogi ji will make sure that those responsible will be held accountable."
Budget 2025 Highlights: 1 crore more people will pay no tax post Budget announcement, says Sitharaman
About 1 crore more Indian in the salaried class stand to benefit after Saturday's Budget where Finance Minister Nirmala Sitharaman announced a rejig in income tax slabs under the new income tax regime. (Read more)
Budget 2025 Highlights: Union Budget empowers farmers, middle class, women and entrepreneurs, says Kishan Reddy
Budget 2025 Highlights: The Union Budget for 2025-26 is a visionary budget that empowers farmers, the middle class, women, and entrepreneurs, while laying a strong foundation for a 'Viksit Bharat,' said Union Coal Minister G Kishan Reddy on Saturday. The budget introduced major economic reforms that will enhance 'Ease of Doing Business', expand access to finance for MSMEs, startups, and entrepreneurs, and foster a strong investment environment, he said in a post on social media platform X.
Budget 2025 Highlights: NTT DATA CFO Rahul Jain on tax relief, digital payments & fintech growth
“We welcome this budget, which provides strong fiscal support to reshape the financial landscape, boost consumption, and empower every individual. The exemption of income tax up to ?12 lakh is a decisive step, allowing more disposable income that will spur demand. This is expected to significantly benefit digital payment companies as it will lead to higher transaction volumes. Plan to roll out a new revamped central Know Your Customer (KYC) registry this year is a welcome move. Meanwhile, strengthening the country’s 1.5 lakh rural post offices network through the India Post Payment Bank will have a profound impact on the rural economic landscape. This initiative will encourage a larger population to use banking services and avail digital payments, thereby expanding the customer base for digital payment companies. Additionally, revamping the PM SVANidhi scheme with enhanced loans from banks and UPI-linked credit cards with a limit of ?30,000 is another significant step that will benefit street vendors at large. This move not only empowers street vendors but also boosts India's fintech ecosystem. Overall, these measures are poised to create a conducive environment for fintech ecosystem to thrive, enhancing their growth prospects while promoting financial inclusion across diverse segments of the economy”.
Budget 2025 Highlights: Complication in the tax language will be simplified, says FM
Budget 2025 Highlights: 'Budget 2025 lays the groundwork for India's next phase of entrepreneurial growth'
"The Budget 2025 lays the groundwork for India's next phase of entrepreneurial growth through the revitalized Fund of Funds for Startups initiative. By injecting fresh capital into the ecosystem, this initiative will empower startups at every stage—fueling innovation, promoting job creation, and strengthening domestic investments. Encouraging homegrown venture capital will also help build a self-sustaining funding landscape, reducing dependency on foreign capital and accelerating India’s emergence as a global startup hub. Additionally, the revision in income tax slabs is a game-changer for the salaried class. Increased disposable income will provide greater financial flexibility, enabling individuals to invest in their ambitions. With strategic investments in education, skilling, and innovation, this budget drives inclusive growth and paves the way to strengthen India's workforce, reinforcing the country’s economic resilience and long-term growth trajectory," Akshay Mehrotra, Co-Founder & CEO, Fibe said.
Budget 2025 Highlights: 'The Fund of Funds for Startups is a disruptive move'
"The Rs 10,000 crore Fund of Funds for Startups is a disruptive move that will give impetus to more domestic venture capital. The Indian startup space including the D2C and retail ecosystem is at a critical inflection point that requires a steady flow of funds to drive R&D, fuel innovations and boost manufacturing. The setting up of Fund of Funds will be a key step in providing access to capital to the early and growth-stage startups. The government’s proposal to provide term loans of up to Rs 2 crore during the next 5 years to first-time women entrepreneurs from SC and ST will further boost women entrepreneurship in our country and make it more inclusive. Significant relaxations announced in tax rates will boost discretionary spending among individuals that will eventually drive consumption and benefit the overall retail and D2C ecosystem," Priyanka Salot, Co-founder, The Sleep Company said.
Budget 2025 Highlights: 1 crore more people will pay no tax post the budget announcement
Budget 2025 Highlights: 1 crore more people will pay no tax post the budget announcement, said Finance Minister Sitharaman
Budget 2025 Highlights: Income tax simplification coming soon
Budget 2025 Highlights: "Responding to voice of the people, which is what PM Modi is known for, it is a very responsive government, and as a result, the income tax simplification which I announced in July is already completed in its works and we shall bring the bill next week. So, the income tax simplification about which I had gone in detail in the July budget... it will be brought to the Parliament next week," said the finance minister.
Budget 2025 Highlights: Not just a rebate for those earning Rs 12 lakh per annum, rates are being brought down for every salaried person, says FM
Budget 2025 Highlights: The rebate on income has increased gradually, says Finance Minister
Budget 2025 Highlights: "The rebate on income has increased gradually, from 2.5 lakhs to 5 LPA. So, now the govt has decided that if someone is earning Rs1 lakh per month, we'll give them a tax rebate. There's a gradualism here to make sure people get benefits."
Budget 2025 Highlights: 'Budget announcement for Centre of Excellence in AI will deepen the scope of AI education'
"When India is preparing to develop its own foundational AI model, the Budget announcement of setting up of a Centre of Excellence in AI for education with an outlay of Rs 500 crore will deepen the scope of AI-enabled education and research right from the University level and produce the much - required AI skilled talent within the country. As the Budget clearly spells out the needs for 'Industry 4.0' and 'Make in India, Make for the World' ambition, industry-oriented curriculum design training, skill - setting, certification and assessment will gain prominence," Prof Tarundeep Singh Anand, Founder and Chancellor, Universal AI University, India's first AI University, said.
Budget 2025 Highlights: Fiscal prudence has aligned itself with what we had announced in 2020-21, says Finance Minister
Budget 2025 Highlights: There is no reduction in public spending on capex, says FM
Budget 2025 Highlights: 'A well-calibrated tax policy will play a crucial role in strengthening India's economic momentum'
Budget 2025 Highlights: "The Budget presents a strategic opportunity to simplify India's tax regime, making it more efficient and growth-oriented. For salaried individuals, streamlining income tax slabs and increasing standard deductions can enhance disposable income and boost overall consumption. A more transparent and predictable tax structure will also reduce compliance burdens, encouraging greater financial planning and investments in long-term assets like real estate," Samir Bhandari, Co-founder, CFO, hBits, said.
"For businesses, a rationalized corporate tax framework, along with targeted incentives for startups and MSMEs, can stimulate job creation and capital investment. A well-calibrated tax policy will play a crucial role in strengthening India's economic momentum and unlocking new growth avenues in fractional ownership and alternative investments," Samir Bhandari said.
"For businesses, a rationalized corporate tax framework, along with targeted incentives for startups and MSMEs, can stimulate job creation and capital investment. A well-calibrated tax policy will play a crucial role in strengthening India's economic momentum and unlocking new growth avenues in fractional ownership and alternative investments," Samir Bhandari said.
For agriculture, budget talks about beej to bazaar
- Nirmala Sitharaman
Budget 2025 Highlights: Sitharaman on tax relief
Budget 2025 Highlights: "It's a very responsive government and as a result the income tax simplification is already completed in its works and we shall bring it in the next week," said the finance minister.
Budget 2025 Highlights: Govt has continuously been engaged with the stakeholders, says FM
Budget 2025 Highlights: Government has continuously been engaged with the stakeholders, said Sitharaman. Interest of education and health has been prioritised, she added.
Budget 2025 Highlights: Budget actually says several things about our path towards Viksit Bharat, says Sitharaman is post budget presser
Budget 2025 Highlights:
Budget 2025 Highlights: Defence budget pegged at Rs 6.81 lakh crore for 2025-26
Budget 2025 Highlights: India on Saturday set aside Rs 6,81,210 crore as defence outlay for 2025-26 in a marginal increase over the current fiscal's allocation of Rs 6.22 lakh crore amid renewed focus on modernisation of the armed forces in the face of fast-evolving regional security scenario. A total of Rs 1,92,387 crore has been allocated for capital expenditure that largely includes purchasing new weapons, aircraft, warships and other military hardware.
The capital outlay in 2024-25 was Rs 1.72 lakh crore and revised estimates put the amount at Rs 1,59,500 crore that suggests an amount of around Rs 13,500 crore has not been spent yet.
For the next fiscal, the revenue expenditure that accounts for day-to-day operating costs and salaries has been pegged at Rs 4,88,822 crore that included Rs 1,60,795 crore for pensions.
The capital outlay in 2024-25 was Rs 1.72 lakh crore and revised estimates put the amount at Rs 1,59,500 crore that suggests an amount of around Rs 13,500 crore has not been spent yet.
For the next fiscal, the revenue expenditure that accounts for day-to-day operating costs and salaries has been pegged at Rs 4,88,822 crore that included Rs 1,60,795 crore for pensions.
Budget 2025 Highlights: Proposal to raise KCC loan limits to uplift the condition of Annadatas
Budget 2025 Highlights: "FM Nirmala Sitharaman's Budget proposal to raise Kisan Credit Cards (KCC) loan limit to Rs 5 lakh is much needed revision to uplift the condition of our annadatas. It will give boost to rural economic growth. Additionally, the loan cap within the revised interest subvention scheme will enhance financial assistance for agricultural activities to small farmers, who are most susceptible to risks in farming activities. We believe the KCC loan limit should be periodically revised in the coming years as well to account for rising inflation. We also need to focus on swift disbursal of these loans, where technology such as AI can be great enablers. Automating KCC loans increase efficiency and satiate the need of farmers on time, reducing the risk of crop failures due to lack of finance during sowing," Vishal Sharma, Cofounder & CEO of AdvaRisk: (Agriculture- KCC) said.
Budget 2025 Highlights: 'From consumer point of view, duty benefits will make EVs more affordable'
Budget 2025 Highlights: The budget’s proposal to add 35 capital goods used for EV battery manufacturing to the duty-free list aligns with the Make in India initiative and the Government’s aim to boost green energy, said Smita Singh, Partner at S&A Law Offices.
"This move will reduce the production costs for manufacturing EV’s, stimulate growth in this sector and attract more investments in India’s growing green manufacturing ecosystem. From the consumer point of view, duty benefits will make EVs more affordable."
"This move will reduce the production costs for manufacturing EV’s, stimulate growth in this sector and attract more investments in India’s growing green manufacturing ecosystem. From the consumer point of view, duty benefits will make EVs more affordable."
Budget 2025 Highlights: The winners of Sitharaman's "people's budget"
Agriculture
Youth & Education
Startups
- Rs 17 million farmers to receive credit support.
- Six-year mission for self-reliance in pulses.
- Makhana board to be set up in Bihar; fertilizer plant in Assam.
- India to become a global hub for toy manufacturing.
- New policies to boost small and medium businesses.
Youth & Education
- Expansion of top engineering institutes and medical colleges (10,000 additional seats).
- Establishment of centers of excellence in AI.
Startups
- Rs 100 billion fund allocated to strengthen India’s startup ecosystem.
Budget 2025 Highlights: Jewelleries to get cheaper
Budget 2025 Highlights Today: Budget 2025 Highlights: The Finance Minister has lowered the customs tariff on jewellery (item code 7113) from 25% to 20%, effective February 2, 2025. Additionally, the tariff on Platinum Findings has been significantly reduced from 25% to 5%, providing relief to the jewellery industry.
Budget 2025 Highlights: 'India's tax relief may not be enough'
Budget 2025 Highlights Today: Moody’s Ratings stated that the Indian government’s tax relief for the middle class may have a limited impact on economic growth. Christian de Guzman, Moody’s senior VP and lead sovereign analyst for India, said it remains uncertain whether the budget’s tax measures are sufficient to significantly boost growth.
Budget 2025 Highlights: Decision to make India a global hub for toy manufacturing to bring a strategic boost to the sector
"The government’s initiative to establish India as a global hub for toy manufacturing is expected to bring a strategic boost to the sector. With a strong focus on employment generation, exports, and attracting investments, the scheme is likely to offer incentives such as financial support, infrastructure development, etc to domestic manufacturers. This will encourage local MSMEs and large-scale industries to scale up production, adopt cutting-edge technology, and enhance global competitiveness," Saurabh Agarwal, Tax Partner, EY India said.
"Additionally, the initiative could facilitate partnerships between Indian toy makers and global brands, boosting the sector’s presence in international markets. By ensuring quality control and sustainability, the scheme is expected to position Indian-made toys as a credible and preferred choice for consumers worldwide, reducing reliance on imports and strengthening India’s standing in the global toy industry," Saurabh Agarwal said.
"Additionally, the initiative could facilitate partnerships between Indian toy makers and global brands, boosting the sector’s presence in international markets. By ensuring quality control and sustainability, the scheme is expected to position Indian-made toys as a credible and preferred choice for consumers worldwide, reducing reliance on imports and strengthening India’s standing in the global toy industry," Saurabh Agarwal said.
Budget 2025 Highlights: Capex woes
Budget 2025 Highlights: Finance Minister Nirmala Sitharaman allocated ₹11.21 lakh crore for capital expenditure in the Union Budget 2025-26, a 0.9% rise from last year’s ₹11.11 lakh crore. However, compared to the revised estimate of ₹10.18 lakh crore for 2024-25, the new allocation reflects a significant increase in planned investments.
Budget 2025 Highlights: Making Indian products shine globally
Budget 2025 Highlights Today: Prime Minister Narendra Modi highlighted key Budget measures aimed at strengthening India's manufacturing sector, emphasising the goal of making Indian products globally competitive. He noted that the tax relief announced will provide significant benefits to the middle class and salaried employees.
