On February 1, 2025, Finance Minister Nirmala Sitharaman presented India's Union Budget for the fiscal year 2025-26, focusing on enhancing middle-class spending power, promoting inclusive growth, and encouraging private investment. ([reuters.com](https://www.reuters.com/world/india/india-budget-aims-boost-farm-output-push-inclusive-growth-2025-02-01/?utm_source=chatgpt.com))
**Key Highlights:**
**Income Tax Reforms:**
- **Increased Tax Exemption Threshold:** The nil tax slab threshold has been raised to ₹1.2 million annually, aiming to boost consumer demand. ([reuters.com](https://www.reuters.com/world/india/india-budget-aims-boost-farm-output-push-inclusive-growth-2025-02-01/?utm_source=chatgpt.com))
- **Revised Tax Slabs:** The maximum tax rate of 30% now applies to incomes of ₹2.4 million and above under the new tax regime. ([reuters.com](https://www.reuters.com/world/india/india-budget-aims-boost-farm-output-push-inclusive-growth-2025-02-01/?utm_source=chatgpt.com))
**Economic Projections:**
- **Nominal GDP Growth:** The government anticipates a nominal GDP growth of 10.1% for 2025-26. ([reuters.com](https://www.reuters.com/world/india/india-budget-aims-boost-farm-output-push-inclusive-growth-2025-02-01/?utm_source=chatgpt.com))
- **Fiscal Deficit:** The fiscal deficit is projected to be 4.4% of GDP. ([reuters.com](https://www.reuters.com/world/india/india-budget-aims-boost-farm-output-push-inclusive-growth-2025-02-01/?utm_source=chatgpt.com))
- **Total Expenditure:** Total budget spending is estimated at ₹50.65 trillion. ([reuters.com](https://www.reuters.com/world/india/india-budget-aims-boost-farm-output-push-inclusive-growth-2025-02-01/?utm_source=chatgpt.com))
**Agriculture and Manufacturing Initiatives:**
- **Farm Output Enhancement:** The budget introduces specific missions to boost the production of pulses and cotton, aiming to reduce import dependence. ([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))
- **National Manufacturing Mission:** A new mission is established to promote manufacturing, with incentives and funds allocated to support startups, small firms, and the broader manufacturing sector. ([reuters.com](https://www.reuters.com/world/india/india-budget-aims-boost-farm-output-push-inclusive-growth-2025-02-01/?utm_source=chatgpt.com))
**Foreign Direct Investment (FDI):**
- **Insurance Sector:** The FDI limit in the insurance sector has been raised to 100%, encouraging greater foreign participation. ([reuters.com](https://www.reuters.com/world/india/india-budget-aims-boost-farm-output-push-inclusive-growth-2025-02-01/?utm_source=chatgpt.com))
**Infrastructure and Connectivity:**
- **Development Projects:** The budget prioritizes infrastructure development, regional air connectivity, and the advancement of critical minerals. ([reuters.com](https://www.reuters.com/world/india/india-budget-aims-boost-farm-output-push-inclusive-growth-2025-02-01/?utm_source=chatgpt.com))
**Support for Farmers:**
- **Subsidized Credit:** The budget increases the subsidized farm loan limit and plans to establish a new urea plant to support farmers facing low incomes. ([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))
**Energy Sector:**
- **Nuclear Energy Mission:** A notable initiative aims to achieve 100 GW of nuclear power by 2047, reflecting the government's commitment to sustainable energy. ([apnews.com](https://apnews.com/article/02d8af3bc495ea3e6d8ff25764772fd1?utm_source=chatgpt.com))
These measures collectively aim to stimulate economic growth, enhance consumer spending, and strengthen various sectors of the Indian economy.
- [reuters.com](https://www.reuters.com/world/india/india-budget-aims-boost-farm-output-push-inclusive-growth-2025-02-01/?utm_source=chatgpt.com)
- [reuters.com](https://www.reuters.com/world/india/indias-modi-seek-boost-growth-ease-cost-living-budget-2025-02-01/?utm_source=chatgpt.com)
- [apnews.com](https://apnews.com/article/02d8af3bc495ea3e6d8ff25764772fd1?utm_source=chatgpt.com)
Comments
Post a Comment