India’s Union Budget 2025-26: Key Highlights

The Indian Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, focuses on economic growth, social welfare, and stability. Here’s a summary of the key highlights:
Taxation
- Income Tax: The new tax regime sees significant changes:
- Income up to Rs 12 lakh: No tax
- Rs 8-12 lakh: 10%
- Rs 12-16 lakh: 15%
- Rs 16-20 lakh: 20%
- Rs 20-25 lakh: 25%
- Above Rs 25 lakh: 30%
- No income tax for income up to Rs 12.75 lakh for salaried individuals.
- TDS on Rent: Annual limit raised from Rs 2.4 lakh to Rs 6 lakh.
- Senior Citizens: Tax deduction limit doubled to Rs 1 lakh.
Start-ups
- Benefits for start-ups will continue for five years from inception.
Banking/Insurance - Grameen credit score framework to be established for rural India.
- FDI in the insurance sector raised to 100%.
Housing
- Allocation of Rs 15,000 crore for the completion of one lakh housing units.
Agriculture
- “Atmanirbharta in oil seeds” mission launched.
- “Cotton yield improvement” mission initiated.
- Kisan Credit Card loan limit increased from Rs 3 lakh to Rs 5 lakh.
Education
- Atal Tinkering Labs to be established in schools.
- Broadband internet provision for government secondary schools.
- Additional infrastructure for IITs to increase student capacity; IIT Patna to be expanded.
Healthcare
- Daycare cancer centres to be set up in all district hospitals; 200 centres planned by fiscal 2026.
- Duty on six life-saving drugs set at 5%; 36 drugs exempted from basic customs duty.
Growth
- MSME credit guarantees coverage raised from Rs 5 crore to Rs 10 crore.
Infrastructure
- Three-year projects can be implemented in PPP mode.
- Rs 1.5 lakh crore allocated for states to implement infrastructure reforms.
- Over 100 new regional airports planned over the next decade.
- UDAN 2.0 to connect 120 new airports, focusing on Northeast and Bihar.
Other Key Highlights
- Fiscal Deficit: Revised target set at 4.8% for fiscal year 2025.
- Capital Expenditure: Set at Rs 10.18 lakh crore.
- Women’s Development: Term loan for women entrepreneurs up to Rs 2 crore.
- Rural India: Nutritional support for over eight crore children and one crore lactating mothers.
- Make in India: National Manufacturing Mission and Clean Technology Manufacturing Mission launched.
- Water Management: Jal Jeevan Mission extended until 2028.
- Technology: Centre of Excellence in AI to be established with an allocation of Rs 500 crore.
- Tourism: Visa fee waivers for certain tourist groups.
This Budget aims to accelerate economic growth, promote inclusive development, invigorate private sector investments, and enhance the spending power of India’s rising middle class. It includes significant changes in tax policies, sector-specific allocations, and initiatives for financial stability.