Indian Finance Minister Nirmala Sitharaman today (Saturday, Feb 1) presented the Union Budget for 2025-26, a day after unveiling the Economic Survey.

The Union Budget of 2025, presented by Finance Minister Nirmala Sitharaman on February 1, 2025, introduces several key measures aimed at stimulating economic growth, supporting the middle class, and enhancing various sectors of the economy.

Income Tax Reforms:

Increased Tax Exemption Threshold: The budget raises the income tax exemption limit from ₹7 lakh to ₹12 lakh under the new tax regime. With a standard deduction of ₹75,000, individuals earning up to ₹12.75 lakh will now be exempt from income tax. ([en.wikipedia.org](https://en.wikipedia.org/wiki/2025_Union_budget_of_India?utm_source=chatgpt.com))

Revised Tax Slabs: The new tax slabs are structured to reduce the tax burden across various income levels, aiming to increase disposable income and boost consumption. ([en.wikipedia.org](https://en.wikipedia.org/wiki/2025_Union_budget_of_India?utm_source=chatgpt.com))

Agricultural Initiatives

Prime Minister Dhan-Dhaanya Krishi Yojana: A program targeting 100 districts to benefit approximately 1.7 crore farmers, focusing on enhancing agricultural productivity and sustainability. ([en.wikipedia.org](https://en.wikipedia.org/wiki/2025_Union_budget_of_India?utm_source=chatgpt.com))

Enhanced Credit for Farmers: The budget proposes facilitating short-term loans of up to ₹5 lakh for 7.7 crore farmers, fishermen, and dairy farmers through the Kisan Credit Card (KCC) scheme. ([en.wikipedia.org](https://en.wikipedia.org/wiki/2025_Union_budget_of_India?utm_source=chatgpt.com))

Pulses and Cotton Production Mission: A six-year mission focusing on self-reliance in pulses like Tur, Urad, and Masoor, and initiatives to boost cotton production, particularly extra-long staple cotton, through research and development. ([reuters.com](https://www.reuters.com/world/india/india-budget-india-unveils-long-term-programmes-boost-pulses-cotton-output-2025-02-01/?utm_source=chatgpt.com))

Research, Development, and Innovation:

Private Sector-Driven R&D: An allocation of ₹20,000 crore to implement initiatives encouraging private sector-led research, development, and innovation. ([en.wikipedia.org](https://en.wikipedia.org/wiki/2025_Union_budget_of_India?utm_source=chatgpt.com))

PM Research Fellowship: Provision of 10,000 fellowships for technological research in premier institutions like IITs and IISc to foster innovation and advanced studies. ([en.wikipedia.org](https://en.wikipedia.org/wiki/2025_Union_budget_of_India?utm_source=chatgpt.com))

Fiscal Management:

Fiscal Deficit Target: The government aims to reduce the fiscal deficit to 4.4% of GDP for the fiscal year 2025-26, down from the revised 4.8% in the current year, signaling a commitment to fiscal prudence. ([reuters.com](https://www.reuters.com/world/india/india-budget-india-targets-fiscal-deficit-44-2025-26-sets-path-bring-down-debt-2025-02-01/?utm_source=chatgpt.com))

Sectoral Impacts:

Consumer Goods and Automobiles: Companies in these sectors are expected to benefit from increased consumer spending due to higher disposable incomes resulting from the tax cuts. ([reuters.com](https://www.reuters.com/world/india/corporate-winners-losers-indias-budget-2025-02-01/?utm_source=chatgpt.com))

Infrastructure: Despite a modest increase in capital spending, infrastructure firms experienced mixed reactions, with some stocks facing declines. ([reuters.com](https://www.reuters.com/world/india/corporate-winners-losers-indias-budget-2025-02-01/?utm_source=chatgpt.com))

Overall, the Union Budget 2025 focuses on stimulating economic growth through tax reforms, supporting the agricultural sector, promoting research and innovation, and maintaining fiscal discipline. 

Here are the key highlights from the Union Budget 2025 presented by Finance Minister Nirmala Sitharaman:

1. Tax Reforms

Income Tax Relief:

The tax exemption limit under the new tax regime has been raised from ₹7 lakh to ₹12 lakh.

With a standard deduction of ₹75,000, individuals earning up to ₹12.75 lakh are now exempt from income tax.

Revised tax slabs have been introduced to reduce the burden on taxpayers.

2. Agriculture and Rural Development

Prime Minister Dhan-Dhaanya Krishi Yojana: A scheme aimed at benefiting 1.7 crore farmers across 100 districts.

Kisan Credit Card (KCC) Scheme: Short-term loans of up to ₹5 lakh will be provided to 7.7 crore farmers, fishermen, and dairy farmers.

Pulses and Cotton Mission: A six-year program to achieve self-reliance in pulses like Tur, Urad, and Masoor and boost production of extra-long staple cotton.

3. Innovation and Research

R&D Boost: ₹20,000 crore allocated for private sector-driven research and innovation initiatives.

PM Research Fellowships: 10,000 research fellowships for technological innovation in top institutions like IITs and IISc.

4. Infrastructure and Development

Capital Expenditure: Increased allocation for transport, energy, and urban development projects.

Green Initiatives: Focus on renewable energy and sustainable infrastructure development.

5. Fiscal Discipline

Fiscal Deficit Target: Reduced to 4.4% of GDP for FY 2025-26 from 4.8% in the previous year.

6. Social and Welfare Schemes

Continued support for healthcare, education, and employment programs.

Special emphasis on women empowerment and child development schemes.

Sectoral Impacts

Consumer Goods and Automobiles: Expected to benefit from increased consumer spending.

Infrastructure Sector: Mixed reactions despite increased capital spending.