Introduction

The Union Budget 2025-26 is designed with a vision for “Viksit Bharat” – a developed India. It prioritizes economic growth, infrastructure development, and social welfare while ensuring fiscal responsibility. Key focus areas include agriculture, MSMEs, taxation reforms, and investment in digital infrastructure.

Let’s break down the major takeaways from Budget 2025-26 in an easy-to-understand manner.

1. Development for Garib, Youth, Annadata, and Nari

The government aims to provide targeted welfare and empowerment for underprivileged sections:

Agriculture and Rural Economy

✅ National Mission on High Yielding Seeds: Encourages the development of climate-resistant and high-yield seeds.
✅ Makhana Board in Bihar: Focus on processing and value addition.
✅ Aatmanirbharta in Pulses: Development of resilient pulse varieties and better storage management.
✅ Enhanced Kisan Credit Card (KCC): Loans up to ₹5 lakh for 7.7 crore farmers, fishermen, and dairy farmers.

MSME & Startups Boost

✅ Revised MSME Criteria: Increased investment and turnover limits for micro, small, and medium enterprises.
✅ Credit Cards for Micro Enterprises: Udyam-registered businesses to receive ₹5 lakh customized credit.
✅ Support for First-time Entrepreneurs: Term loans up to ₹2 crore for SC/ST, women, and new entrepreneurs.
✅ Sector-Specific Incentives:

• Toy Industry: Manufacturing and design support.
• Footwear & Leather: ₹4 lakh crore turnover target, 22 lakh employment opportunities.
• Food Processing: A National Institute of Food Technology to be set up in Bihar.

2. Investing in People & Innovation

Education & Skilling

✅ Saksham Anganwadi & Poshan 2.0: Strengthening child development programs.
✅ Atal Tinkering Labs: 50,000 labs in government schools to boost innovation.
✅ Medical & Engineering Expansion:

• 10,000 new medical seats in IITs & AIIMS.
• ₹500 crore for AI-driven education.
  ✅ Broadband Access: All government secondary schools and primary health centers to get internet connectivity.

Technology & Research

✅ PM Research Fellowship: 10,000 fellowships for IIT and IISc scholars.
✅ National Geospatial Mission: Digital mapping for urban planning.
✅ Gene Bank for Crops: ₹20,000 crore investment for future food security.

3. Infrastructure & Urban Development

✅ Urban Challenge Fund: ₹1 lakh crore for smart city redevelopment.
✅ Jal Jeevan Mission Extended: 100% coverage target by 2028.
✅ Power Sector Reforms: Extra borrowing of 0.5% of GSDP linked to state electricity sector reforms.
✅ Maritime Development Fund: ₹25,000 crore for shipping and logistics.
✅ UDAN Expansion: 120 new airports and 4 crore passengers in 10 years.

4. Financial Sector Reforms & Investment Growth

✅ FDI Limit in Insurance: Increased from 74% to 100%.
✅ Grameen Credit Score: Special credit framework for rural entrepreneurs.
✅ Revamped KYC Registry: Digital verification for ease of banking.
✅ Jan Vishwas Bill 2.0: Decriminalization of 100+ business laws for ease of doing business.

5. Tax Reforms & Middle-Class Benefits

Direct Tax Benefits

✅ Increased Standard Deduction: Higher exemption limits for salaried individuals.
✅ Relief for Senior Citizens: Tax deduction limit doubled from ₹50,000 to ₹1 lakh.
✅ Higher TDS Limit on Rent: Raised from ₹2.4 lakh to ₹6 lakh.
✅ More Time for Updated Tax Returns: Extended from 2 years to 4 years.

Indirect Tax Changes

✅ Simplified GST & Customs: Tariff rates reduced, import duties streamlined.
✅ Tax Benefits for ‘Make in India’: Incentives for local LED, lithium batteries, and textile production.
✅ Reduced Tax Compliance for Charitable Trusts: Registration validity increased from 5 years to 10 years.

6. Employment & Export Promotion

✅ Export Promotion Mission: Better financing, support for MSMEs in global markets.
✅ BharatTradeNet: Digital trade platform for international trade transparency.
✅ Performance-linked Tourism Incentives: 50 major destinations to be upgraded with state participation.

7. Fiscal Discipline & Budget Deficit Trends

• Fiscal Deficit Target: Reduced to 4.4% of GDP.
• Increased Revenue Collection: ₹25.6 lakh crore in net tax receipts.
• Investment in Defense: ₹4.91 lakh crore allocated.

Conclusion

The Budget 2025-26 is growth-oriented, inclusive, and future-ready. With reforms in agriculture, MSMEs, education, technology, and infrastructure, it lays a strong foundation for Viksit Bharat by 2047.

What do you think of this year’s budget? Let us know in the comments!