Union Budget 2025: Income Tax Slabs and Key Announcements & Highlights

Union Budget 2025 Highlights: Key Announcements and Developments

Union Budget 2025: Key Highlights and Announcements

On February 1, 2025, Union Finance Minister Nirmala Sitharaman presented her 8th budget, focusing on key announcements for India’s middle class, including zero income tax for incomes up to ₹12 lakh under the new tax regime. The Finance Bill will be tabled next week, with Parliament's Budget session split into two parts: January 31–February 13 and March 10–April 4, 2025.

Key Highlights:

• New Tax Update: Income up to ₹12 lakh exempt from income tax under the new tax regime.
• Capex: Capital expenditure for FY2025-26 rises to ₹11.21 lakh crore.
• Bihar Makhana: Establishment of a Makhana Board to boost production and marketing in Bihar.
• Job Scheme: Plans to generate 22 lakh jobs in the footwear and leather sector.
• UDAN Scheme: Modified UDAN Scheme will enhance regional connectivity with 120 new destinations.

Key Focus Areas: The budget targets Gareeb (underprivileged), youth, and nari (women) with plans to uplift these groups through economic empowerment and inclusion.

Agriculture & Rural Development:

• Prime Minister Dhan-Dhaanya Krishi Yojana aims to benefit 1.7 crore farmers by addressing underemployment in agriculture.
• A National Mission on high-yielding seeds and a 6-year mission for Aatmanirbharta in Pulses will focus on Tur, Urad, and Masoor.
• Cotton Productivity Programme to increase cotton production over the next five years.

Infrastructure & Connectivity:

• India Post will transform into a public logistics organization with 1.5 lakh rural post offices.
• The modified UDAN Scheme will add 120 new destinations and carry 4 crore passengers.
• Greenfield airports to be developed in Bihar.

Education & Innovation:

• 50,000 Atal Tinkering Labs to foster innovation in government schools over the next five years.
• A Centre of Excellence in Artificial Intelligence for education with ₹500 crore funding.
• A Nuclear Energy Mission will focus on Small Modular Reactors (SMR) with ₹20,000 crore investment.

Economic & Financial Reforms:

• Personal income tax reforms to offer relief for the middle class, including ₹12 lakh tax exemption.
• FDI limit in insurance sector raised from 74% to 100%.
• NaBFID’s Credit Enhancement Facility to improve funding access for development projects.

Special Initiatives:

• A Maritime Development Fund with ₹25,000 crore to boost maritime infrastructure.
• The launch of BharatTradeNet (BTN) for facilitating international trade.
• The SWAMIH Fund will complete 40,000 housing units in 2025.

Tax & Duty Reforms:

• Waiver of social welfare surcharge on 82 tariff lines and customs duty exemptions for 36 life-saving drugs.
• TCS on remittances for education removed.
• New scheme to determine arms-length pricing for international transactions.

Startup Ecosystem & MSME Support:

• Extension of incorporation benefits for startups by five years.
• MSME term loans up to ₹20 crore and customized credit cards for micro enterprises.

Additional Measures:

• Jan Vishwas Bill 2.0 to decriminalize 100 provisions in various laws.
• Revised time-limit for filing updated tax returns extended to 48 months.
• National Geospatial Mission and a Second Gene Bank for food security.

Feb 01, 2025 19:24 IST
Union Budget 2025 Reactions: Industry and Experts Applaud Bold Initiatives for Growth and Innovation
Union Budget 2025: A Strong Push for Innovation and Economic Growth
The Union Budget has once again reinforced India’s commitment to innovation, financial inclusion, and economic growth. With a special focus on fintech, MSMEs, and priority sector lending, industry leaders are lauding the government’s efforts in driving financial empowerment and fostering economic resilience.
Jatinder Handoo, CEO of DLAI, expressed his appreciation for the government’s push toward fintech and innovation. “The Union Budget reaffirms India’s commitment to innovation, financial inclusion, and economic growth while boosting household consumption. A key highlight for fintech startups is the additional ₹10,000 crore allocation to the SIDBI Fund of Funds, doubling its corpus to ₹20,000 crore for funding startups. As a leading fintech industry body, DLAI had advocated for a dedicated India Fintech Fund, and we appreciate the government's response. Increased credit guarantee and loan limits for MSMEs and expanded turnover thresholds will enhance growth, employment, and competitiveness. Further, plans for a deep tech fund further reinforce India’s technological and industrial leadershipand is a welcome move.”
The sentiment was echoed by Priyashmita Guha, representing the Priority Sector Lenders Association of India (PSLAI). She highlighted the government’s initiatives in supporting SME and nano enterprises, stating, “SME and nano enterprises form a significant part of the Priority Sector Lending. The Government has taken several steps to boost credit enablement for the segment, and increasing the limit under Kisan Credit Card from INR 3 lakh to 5 lakh is a significant one. KCC cards are based on OCEN protocol, a part of the Indian DPI, which allows seamless and efficient access to credit delivery to millions of farmers, dairy entrepreneurs, and fishers.
The increased credit guarantee cover for microenterprises from INR 5 crores to 10 crores, introduction of customized credit cards for MSMEs, capital infusion into select public sector banks, and plans for a new Income Tax Bill to simplify compliance are important steps toward increasing formal credit access, fostering confidence in the financial system, and driving economic expansion. We hope that NBFCs focused on priority sector lending would be provided with special liquidity and lower cost of borrowing over time.”
Ashok Mittal, MD & CEO of BillMart Fintech, underscored the budget’s balanced approach to growth, MSME empowerment, and financial inclusion. “The Hon’ble Finance Minister has presented a well-balanced budget that drives economic momentum while maintaining strong fiscal consolidation. The focus on personal tax relief is a much-needed push for consumption, ensuring liquidity infusion into the economy. With MSMEs contributing 45% to exports and recognized as the second engine of growth, the enhanced classification limits will further empower them.”
He further added, “For fintech and digital lending companies, this creates a robust environment to provide seamless access to credit, enabling MSMEs/SMEs to scale operations, invest in expansion, and drive inclusive economic growth. The government’s steadfast commitment to ease of doing business, along with a revised capex of ₹10.18 lakh crore, will strengthen the digital financial ecosystem, bridging liquidity gaps and fostering long-term robustness in India’s financial landscape.”
As India continues its journey toward becoming a global economic powerhouse, the Union Budget has provided a clear roadmap for fostering innovation, strengthening MSMEs, and ensuring financial inclusivity. With industry leaders rallying behind these measures, the future looks promising for startups, fintechs, and entrepreneurs alike.
TOP Headlines from Industry Leaders
• Union Budget 2025: A Strong Push for Innovation and Economic Growth The Union Budget for 2025 has garnered widespread applause for its strategic focus on driving innovation, enhancing financial inclusion, and fostering economic growth. Industry leaders have praised the government’s efforts to empower startups, fintech companies, and MSMEs, creating an environment conducive to sustained development and financial resilience.

• Fintech and MSME Leaders Laud Budget Measures for Empowering Startups Fintech and MSME leaders have highlighted key provisions such as the ₹10,000 crore allocation to SIDBI’s Fund of Funds, aimed at boosting startupsand small enterprises. Experts see these initiatives as a critical step in strengthening India’s digital economy and supporting the growth of microenterprises.

• Priority Sector Lending Gets a Major Boost in Union Budget The Priority Sector Lending segment has seen notable changes, with increased limits under Kisan Credit Cards and enhanced credit guarantee for microenterprises. Experts are optimistic that these measures will improve access to formal credit for SMEs and nano enterprises, propelling their contribution to the economy.

• Industry Experts Applaud the Focus on Ease of Doing Business and Fiscal Consolidation Industry experts have praised the government's focus on ease of doing business and fiscal prudence, noting that the Union Budget aims to balance growth with fiscal consolidation. Measures like personal tax relief and a revised capex of ₹10.18 lakh crore are seen as vital for boosting consumption and investment across sectors.

• A Roadmap for Economic Resilience: Industry Leaders Rally Behind Budget Initiatives Industry leaders are optimistic about the Union Budget's roadmap for fostering economic resilience. By targeting financial empowerment, MSMEs, and technological innovation, the budget lays the groundwork for India’s long-term goal of becoming a global economic powerhouse.



Feb 01, 2025 13:52 IST
Sushanto Mitra, CEO, Lead Angels: A Step Forward, But More Tax Incentives Needed
Sushanto Mitra, CEO of Lead Angels, believes the Union Budget 2025-26 makes promising strides in strengthening India’s startup ecosystem through a dedicated Startup Fund of Funds and enhanced credit guarantees for SMEs.
“These measures will improve capital access and foster innovation. Additionally, the National Manufacturing Mission creates new opportunities for startups aligned with ‘Make in India’. The reduction in income tax and simplified regulations will ease compliance burdens, allowing founders to focus on scaling their businesses while managing salary costs more efficiently,” Mitra explained.
However, he pointed out that broader tax incentives for startup investors could have further boosted capital inflows. “We look forward to policy refinements that drive sustained entrepreneurial growth,” he added.



Feb 01, 2025 13:48 IST
Agriculture: Anshul Garg, Director & CEO of Aroma AAT Basmati Rice, Sees Budget as a Growth Catalyst for Basmati Production
Anshul Garg, Director & CEO of Aroma AAT Basmati Rice, believes the PM Dhan Dhanya Krishi Yojana will boost Basmati rice production in India.
“This initiative, in partnership with states, is a timely step to enhance India’s agri-productivity and increase Basmati rice penetration in key global markets,” Garg said.
Additionally, he praised the government’s emphasis on supporting 1.7 crore farmers with short- and long-term credit lines, which will strengthen the rural economy and generate employment opportunities in the agricultural sector.
“This budget reaffirms India’s position as the global food basket,” he concluded.



Feb 01, 2025 13:48 IST
Entrepreneurship: Ravi Mittal, Founder & CEO of QuackQuack, Hails Inclusivity in Startup Funding
Ravi Mittal, Founder & CEO of QuackQuack, sees the ₹10,000 crore Fund of Funds as a major step in strengthening India’s startup ecosystem.
“Access to capital remains a key hurdle for startups, and this fresh infusion will support emerging businesses in innovation, expansion, and job creation,” Mittal noted.
He also praised the government’s new scheme for first-time women, SC, and ST entrepreneurs, calling it a commendable move toward inclusivity and diversity in India’s entrepreneurial landscape.
“At QuackQuack, we understand the challenges of building from scratch, and such initiatives empower more founders to take bold steps toward their dreams,” he added.



Feb 01, 2025 13:47 IST
AI and Upskilling: Arun Prakash M, Founder & CEO of GUVI Geek Networks, Applauds AI and Tech Education Initiatives
The Union Budget 2025 puts a strong focus on AI and upskilling, which will have long-term benefits for Indian talents, according to Arun Prakash M, Founder & CEO of GUVI Geek Networks.
“The government’s push for AI in drug discovery shows India’s ambition to become a global leader in AI-driven innovations. Simultaneously, the addition of broadband in government secondary schools will enhance digital learning and native-language education,” Prakash said.
He further highlighted the establishment of five national centres of excellence for upskilling, which will support the Make for India and Make for the World initiative and empower millions of Indian talents to contribute toward India’s goal of becoming a developed nation by 2047.



Feb 01, 2025 13:46 IST
Startups: Roshan Aslam, Co-founder & CEO of GoSats, Praises Budget’s Boost for MSMEs and Startups
Roshan Aslam, Co-founder & CEO of GoSats, believes the Union Budget 2025 presents a strong outlook for the Indian startup ecosystem with several key initiatives.
“The announcement of an additional ₹10,000 crore Fund of Funds is a game-changer for early-stage and growth-stage startups. Moreover, increasing MSME investment limits by 2.5 times and turnover limits by 2 times will significantly improve financial viability for startup businesses,” Aslam noted.
He also emphasized that easier credit lines for MSMEs will instill confidence in entrepreneurs, allowing them to expand operations and generate employment, directly fueling the growth of India’s economy.



Feb 01, 2025 13:46 IST
Electronics Industry: Prashant Bora, MD & CEO of OTEK, Applauds Budget’s Push for ‘Make in India’
Prashant Bora, MD & CEO of OTEK (A Bora Multicorp Venture), believes the Union Budget 2025 provides strong incentives for the electronics industry while maintaining a customer-friendly outlook.
“The reduction of customs duty on open cells and other critical electronics components to 5% will boost the Make in India initiative, allowing brands to offer cost-effective pricing and expand scalability. Additionally, the government’s push towards positioning India as a global electronics hub through PLI schemes for electronics and IT hardware—backed by PM Narendra Modi’s $500 billion target by FY30—further cements the industry’s growth prospects,” Bora said.
The ₹10,000 crore Fund of Funds for startups, he added, will also act as a catalyst for technological innovation and entrepreneurship in the electronics sector.



Feb 01, 2025 13:42 IST
CashKaro and EarnKaro Founders Applauds Budget, Hails MSME Policy Overhaul
Swati Bhargava, Co-founder of CashKaro and EarnKaro, commends the government’s decision to inject an additional ₹10,000 crore into the Fund of Funds for Startups (FoF for Startups) scheme, bringing the total to ₹20,000 crore. She highlights that this move reinforces India's commitment to nurturing its thriving startup ecosystem.
“With the FoF for Startups already securing commitments exceeding ₹9 lakh crore, confidence in India's startup potential is at an all-time high. This will accelerate innovation, reduce dependence on foreign capital, and empower homegrown businesses to scale globally,” Bhargava stated.
The income tax exemption limit increase to ₹12 lakh has been one of the biggest highlights of Union Budget 2025. Swati Bhargava calls it a major relief for the middle class, allowing individuals to retain more of their earnings, increase savings, and drive higher investments.
She notes, “By forgoing ₹1 lakh crore in direct taxes, the government has made a strong commitment to boosting disposable incomes and economic growth. These reforms will also accelerate digital savings and financial planning, further strengthening financial inclusion across the country.”
The government’s decision to enhance investment and turnover limits for MSMEs—by 2.5x and 2x, respectively—is a transformative step for India’s small businesses, according to Rohan Bhargava, Co-founder of CashKaro and EarnKaro.
“With 5.7 crore MSMEs contributing 36% to manufacturing and 45% to exports, this move will help small businesses scale, innovate, and drive economic growth. By improving access to capital, fostering technological advancements, and creating more jobs, this policy strengthens India's position as a global manufacturing hub,” Bhargava emphasized.
As MSMEs employ 7.5 crore people, this policy shift is expected to open new avenues for skilled talent and entrepreneurial growth.



Feb 01, 2025 13:38 IST
Yuvraj Shidhaye, Founder and Director, TreadBinary: A Game-Changer for Startups in Budget 2025
Enhanced Credit Guarantees & Fund of Funds
Yuvraj Shidhaye, Founder and Director of TreadBinary, hails the government's commitment to startups, particularly through enhanced credit guarantees and the introduction of a ₹10,000 crore Fund of Funds. According to him, this initiative will be a game-changer, addressing one of the biggest hurdles for startups—access to capital.
Boost for Early-Stage & Growth-Stage Startups
Shidhaye emphasizes that these financial initiatives will provide a crucial boost to early-stage and growth-stage startups, ensuring they have the necessary resources to scale their ventures.
Encouraging First-Time Entrepreneurs
Highlighting the government's focus on supporting first-time entrepreneurs, Shidhaye believes this will further drive innovation and expansion in India's startup ecosystem. The move aligns with India's vision of becoming a global startup powerhouse, strengthening its position in the international market.
With these measures, Budget 2025 sets the stage for a more inclusive and thriving startup environment, ensuring sustainable growth and innovation.



Feb 01, 2025 13:36 IST
Ashok Vashist, Founder and CEO of WTiCabs: New Opportunities in Regional Connectivity and Electric Mobility in Budget 2025
Regional Connectivity Expansion
Ashok Vashist, Founder and CEO of WTiCabs, believes that the expansion of the UDAN scheme—offering 120 new destinations—presents significant growth opportunities for the people mobility industry. This initiative is poised to improve WTi Cabs' airport transfers, intercity travel, and last-mile connectivity, enabling better service delivery to a broader customer base.
Customs Duty Adjustments and EV Manufacturing
Vashist also highlights the impact of customs duty adjustments supporting electric vehicle (EV) manufacturing. The budget's move to provide exemptions on 35 additional capital goods is expected to lower vehicle acquisition costs and improve technology. These measures are in line with WTi’s sustainability goals, promoting a transition to electric mobility.
Leveraging Solar-Powered EV Charging Infrastructure
The Founder emphasized that these initiatives will strengthen the company’s commitment to sustainability. WTi Cabs plans to leverage solar-powered EV charging infrastructure, ensuring a cost-effective and eco-friendly transportation network, aligning with the industry's shift toward more sustainable practices.
This detailed insight from Ashok Vashist sheds light on how the Budget 2025 paves the way for growth and sustainability in the people mobility sector, particularly focusing on regional connectivity and EV adoption.



Feb 01, 2025 13:34 IST
CredAble's Ketan Mehta on Budget 2025: Expanding MSME Eligibility and Boosting Export Financing for Global Competitiveness
"The budget rightly focuses on expanding financial support for MSMEs, a sector crucial in positioning India as a global manufacturing hub and responsible for 45% of the nation's exports. Budget 2025 broadens MSME eligibility, increasing turnover up to INR 500 crore. While this, along with an INR 10 crore credit guarantee scheme for MSMEs, is promising, how quickly and efficiently businesses can secure these funds will determine its true impact. Additionally, DPI-enabled export financing, combined with term loans of up to INR 20 crore for well-run export-oriented MSMEs, will empower businesses to step into international markets. Providing the right means to scale would also include building manufacturing and export competitiveness through digital trade networks and strong buyer-supplier ecosystems," said Ketan Mehta, CFO, CredAble.



Feb 01, 2025 13:33 IST
CredAble’s Nirav Choksi Highlights Key Steps for Economic Growth and Financial Accessibility in Budget 2025
Nirav Choksi, CEO & Co-Founder, CredAble 
"Overall the budget is a strong and stable one—a positive step towards India's development goals—which is the need of the hour. The credit schemes for the MSME sector and startups such as the customised credit cards and a dedicated INR 10,000 crore Fund of Funds will be critical for deepening financial inclusion. However, the focus should now shift towards simplifying access to these schemes, particularly for businesses in tier 2 and 3 cities. With the introduction of the DPI platform—Bharat Trade Net—we're seeing a proactive stance to digitalise and streamline trade financing. While the KYC registry overhaul is a great move, its successful implementation will be key. This budget is a progressive roadmap for economic growth, with a focus on improving the ease of doing business and ensuring a more conducive environment for MSMEs and startups with targeted financial schemes and a clear focus on improving access to working capital. Backed by a dedicated manufacturing mission, and climate-friendly manufacturing initiatives—India is taking decisive steps to strengthen its industrial competitiveness on the global stage."



Feb 01, 2025 12:29 IST
Income Tax Budget 2025 Live Updates: Here is how the new tax regime will now look like:
Zero to Rs 4,00,000— No Tax
Rs 4,00,000 to Rs 8,00,000---5%
Rs 8,00,0001 to Rs 12,00,000---10%
Rs 12,00,001 to 16 lakh rupees---15%
Rs 16,00,001 to 20 lakh rupees---20%
Rs 20,00,001 to 24 lakh rupees-- 25%
Above 24 lakh---30%



Feb 01, 2025 12:18 IST
Behind Lower Fiscal Deficit: An Expenditure Squeeze
The fiscal deficit for 2024-25 is pegged at 4.8% of GDP, slightly lower than the 4.9% estimated when the budget was presented in July 2024.
While total expenditure has been reduced to Rs 47.16 lakh crore in the Revised Estimates, compared to Rs 48.20 lakh crore in the Budget Estimates, the capital expenditure (capex) for the year has been cut to Rs 10.18 lakh crore, down from the Rs 11.11 lakh crore announced earlier.



Feb 01, 2025 12:16 IST
Behind Lower Fiscal Deficit: An Expenditure Squeeze
The fiscal deficit for 2024-25 is pegged at 4.8% of GDP, slightly lower than the 4.9% estimated when the budget was presented in July 2024.
While total expenditure has been reduced to Rs 47.16 lakh crore in the Revised Estimates, compared to Rs 48.20 lakh crore in the Budget Estimates, the capital expenditure (capex) for the year has been cut to Rs 10.18 lakh crore, down from the Rs 11.11 lakh crore announced earlier.



Feb 01, 2025 12:12 IST
Budget 2025 Live: Proposal to Remove TCS on Education Remittances and Sale of Goods
• Proposal to remove TCS on remittances for education if funded through a loan from a specified financial institution.
• Omitting TCS on transactions related to the sale of goods to ease compliance burdens.



Feb 01, 2025 12:10 IST
Major TDS Announcements in Budget 2025
Here are the key announcements on TDS:
• Rationalizing TDS by reducing the number of rates and adjusting thresholds for better clarity and uniformity.
• Doubling the tax deduction limit on interest for senior citizens from Rs 50,000 to Rs 1,00,000.
• Raising the annual TDS limit on rent from Rs 2.40 lakh to Rs 6 lakh, benefiting small taxpayers.
• Increasing the threshold for TCS on remittances under the RBI's Liberalised Remittance Scheme (LRS) from Rs 7 lakh to Rs 10 lakh.



Feb 01, 2025 12:08 IST
Rationalization of TDS and TCS to Reduce Compliance Burden
Finance Minister Nirmala Sitharaman announced the rationalization of TDS and TCS provisions, aimed at reducing the compliance burden for taxpayers in the income tax system.



Feb 01, 2025 12:07 IST
Income Tax Reforms Focused on the Middle Class
In Budget 2025, Finance Minister Nirmala Sitharaman emphasized tax proposals aimed at promoting ease of doing business, encouraging voluntary compliance, and reducing the compliance burden. Key objectives include personal income tax reforms specifically benefiting the middle class, rationalizing TDS and TCS to address challenges, and fostering employment and investment growth.



Feb 01, 2025 12:06 IST
FM Talks About Trust-Based Regulatory Framework for Growth
Finance Minister Nirmala Sitharaman emphasized the need for a light-touch, trust-based regulatory framework to drive productivity and employment. This approach will update existing regulations under older laws. The government plans to establish a high-level committee for regulatory reforms, reviewing all non-financial sector regulations. Additionally, an investment-friendliness index for states will be launched.
Sitharaman's call for trust-based frameworks aligns with Chief Economic Advisor V Anantha Nageswaran’s advocacy for deregulation and eliminating the trust deficit. As stated in the Economic Survey for 2024-25, once trust is restored, the Indian public will transform challenges into opportunities.



Feb 01, 2025 12:05 IST
Sitharaman on New Income Tax Bill
The new Income Tax Bill will embody the spirit of fairness (nyay), offering a clear, direct, and taxpayer-friendly framework, making it easier for citizens to understand, said Finance Minister Nirmala Sitharaman.



Feb 01, 2025 12:03 IST
Critical Minerals Support: Full Exemption on Key Materials
The Finance Minister proposed a full exemption of Basic Customs Duty (BCD) on cobalt powder, lithium-ion battery waste, scrap, and 12 other critical minerals. This move is designed to ensure the availability of essential materials for manufacturing in India while also creating job opportunities for the youth.



Feb 01, 2025 12:00 IST
New Scheme for SC/ST Women Entrepreneurs: Term Loans of up to Rs 2 Crore
Finance Minister Nirmala Sitharaman announced a new scheme to empower 5 lakh Scheduled Castes (SC) and Scheduled Tribes (ST) women entrepreneurs. The scheme will provide term loans of up to Rs 2 crore over the next five years.
The new initiative will build on lessons learned from the Stand-Up India scheme, which was launched in 2016 to support women entrepreneurs, especially from SC/ST communities. The Stand-Up India scheme, extended until 2025, offered loans between Rs 10 lakh and Rs 1 crore for greenfield enterprises in manufacturing, services, and allied agriculture sectors.
As of June 2024, the scheme had sanctioned loans to 40,002 SC women and 13,424 ST women. It remains unclear whether the new scheme will be an extension of Stand-Up India or a standalone initiative.



Feb 01, 2025 11:59 IST
Tourism Sector Boost: Rs 20,000 Crore Infusion and Key Announcements
The Finance Minister has announced an infusion of Rs 20,000 crore to enhance tourism-led employment, which will help several states with major tourist attractions improve infrastructure and connectivity.
States will be responsible for acquiring land to build hotels and other essential facilities. In addition, the government will continue promoting India as a global spiritual tourism destination, especially highlighting the Ramayana circuit as the birthplace of Lord Ram and the Buddhist circuit as the birthplace of Buddha, aiming to attract more Southeast Asian tourists. The tourism sector, including medical tourism, will also benefit from visa fee waivers, with a particular focus on the “Heal in India” initiative.



Feb 01, 2025 11:58 IST
Govt to Launch Export Support Mission with Sectoral Targets
The Finance Minister announced the launch of the Export Support Mission, which will have sectoral and ministerial targets. This initiative will be a joint effort between the Ministries of Commerce, MSMEs, and Finance. The mission aims to provide easy access to export credit, cross-border factoring support, and assist MSMEs in overcoming non-tariff barriers in international markets, Sitharaman stated.



Feb 01, 2025 11:56 IST
Loan Limit under Modified Interest Subvention Scheme (MISS) Increased to Rs 5 Lakh
The Finance Minister announced a significant enhancement in the loan limit under the Modified Interest Subvention Scheme (MISS), increasing it from Rs 3 lakh to Rs 5 lakh. Currently, farmers engaged in agriculture and allied activities can access Kisan Credit Card loans of up to Rs 3 lakh at a benchmark interest rate of 9%. The Centre provides a 2% interest subvention, reducing the effective rate to 7%. An additional 3% concession for timely repayments further brings it down to 4% per year.
The scheme also benefits small and marginal farmers with post-harvest loans (up to six months) to prevent distress sales of produce. This increase in the loan limit addresses long-standing demands from several states, including Uttar Pradesh. The Rs 3-lakh cap had remained unchanged since the scheme’s launch in 2006-07.



Feb 01, 2025 11:55 IST
FDI Limit in Insurance Sector Raised from 74% to 100%
In a significant reform move, Finance Minister Nirmala Sitharaman announced the increase of the Foreign Direct Investment (FDI) limit in the insurance sector from 74% to 100%. This step is expected to boost investment and foster growth within the sector.



Feb 01, 2025 11:53 IST
10,000 Medical Seats to Be Added in 2025: A Step Toward Expanding Medical Education
Finance Minister Nirmala Sitharaman announced that 10,000 additional medical undergraduate and postgraduate seats will be added over the next year, contributing to the goal of increasing the total number of medical seats by 75,000 over the next five years. This comes as part of a larger effort to strengthen medical education in India.
Over the past decade, the number of MBBS seats has surged from 51,384 in 2014 to 1,12,112 in 2024, and postgraduate seats have grown from 31,185 to 72,627. However, this expansion has led to new challenges, including severe staff shortages and imbalanced geographical distribution of seats, with some states, like Karnataka and Puducherry, having more than their share.
To address these issues, the National Medical Commission had introduced a norm for 100 MBBS seats per 10 lakh population, but it was later put on hold due to concerns raised by some states, particularly those with an over-reliance on private institutions. These concerns were also highlighted in the Economic Survey.



Feb 01, 2025 11:52 IST
Revamping PM-SVANidhi Loan Scheme to Support Street Vendors
The Finance Minister announced the revamping of the PM-SVANidhi loan scheme, initially launched in 2020 to support street vendors affected by the COVID-19 pandemic. The enhanced scheme, which has already benefited 68 lakh vendors, will offer larger bank loans, UPI-linked credit cards, and additional capacity-building support. Under the revised scheme, vendors can access loans of Rs.10,000, Rs.20,000, and Rs.50,000 to further boost their businesses.



Feb 01, 2025 11:52 IST
National Mission on High Yielding Seeds to Boost Agricultural Productivity
The Finance Minister announced the launch of a National Mission on High Yielding Seeds, aimed at boosting agricultural productivity. The mission will focus on:
• Strengthening the research ecosystem to enhance seed quality.
• Targeted development and propagation of seeds that offer high yields, pest resistance, and climate resilience.
• Ensuring the commercial availability of 100+ seed varieties released since July 2024.
This initiative is expected to improve food security and enhance agricultural sustainability across the country.



Feb 01, 2025 11:50 IST
Finance Minister Announces Extension of Jal Jeevan Mission Till 2028
The Finance Minister has announced the extension of the Jal Jeevan Mission (JJM) until 2028. Originally launched in 2019, the mission has been one of the flagship programs of the Modi government, aiming to provide safe and adequate drinking water to rural households. Over 12 crore rural households have already been provided tap water connections under the scheme, which was initially set to conclude in 2024.
Key highlights:
• The Jal Jeevan Mission (JJM), launched in 2019, has been extended until 2028.
• Over 12 crore rural households have already received tap water connections under this ambitious program.
• Initially set to end in 2024, the scheme aims to provide 55 liters of drinking water per capita per day.
• The next phase will focus on the operations and maintenance of the infrastructure created during Phase 1.
• Efforts will be made to address the issues of non-availability of drinking water in households



Feb 01, 2025 11:48 IST
Budget Boost for Bihar: Infrastructure and Agricultural Support
Finance Minister Nirmala Sitharaman has made significant announcements for Bihar, including the creation of a ‘Makhana Board’ to assist farmers growing this superfood. In addition, the state will receive a major infrastructure boost with the expansion of Patna airport and the establishment of a new brownfield airport. These moves aim to enhance agricultural growth and improve connectivity ahead of the upcoming assembly elections.



Feb 01, 2025 11:47 IST
Govt to Boost Electricity Sector with Distribution Reforms and Incentives
The government will incentivize electricity distribution reforms and the augmentation of intra-state transmission capacity by states, Finance Minister Nirmala Sitharaman announced. These measures aim to improve the financial health and operational capacity of electricity companies. To support states in implementing these reforms, an additional borrowing allowance of 0.5% of GSDP will be granted, contingent on the progress made.
In 2022-23, the financial losses of state-owned distribution companies across India amounted to ₹62,386 crore, compared to ₹31,000 crore in 2021-22, according to data from Icra.



Feb 01, 2025 11:46 IST
Measures for Gig Workers Announced by Sitharaman
Finance Minister Nirmala Sitharaman announced several initiatives to support gig workers, including the provision of identity cards, registration on the e-Shram portal, and healthcare coverage under the PM Jan Arogya Yojana. These measures are expected to benefit around 1 crore gig workers. Additionally, the government will establish a Centre of Excellence for Education with a ₹500 crore outlay, complementing the 3 Centres of Excellence for AI announced in 2023. These steps aim to empower gig workers and strengthen their social security.



Feb 01, 2025 11:42 IST
National Manufacturing Mission to Boost Clean Tech Manufacturing
Finance Minister Nirmala Sitharaman announced that the National Manufacturing Mission will support clean tech manufacturing as part of India’s commitment to climate-friendly development. Key focus areas will include solar PV cells, electric vehicle (EV) batteries, motors and controllers, electrolysers, wind turbines, high-voltage transmission equipment, and grid-scale batteries. This mission aims to strengthen India’s clean tech capabilities and reduce reliance on imports.



Feb 01, 2025 11:40 IST
Budget 2025 Live: National Manufacturing Mission to Boost Clean Tech
The Finance Minister introduced the National Manufacturing Mission, which aims to enhance clean tech manufacturing and increase domestic value addition in key sectors such as solar PV modules, electric vehicle (EV) batteries, high-voltage transmission equipment, wind turbines, and grid-scale batteries.
With China dominating most of the clean tech supply chain—from raw materials to intermediate goods—the mission, combined with the existing Production Linked Incentive (PLI) schemes for solar PV modules and batteries, is designed to help domestic companies integrate backward and scale up their operations, ensuring India’s growth as a global player in the clean tech space.



Feb 01, 2025 11:39 IST
Budget 2025 Live: Second Asset Monetisation Plan (2025-2030) Announced
The Finance Minister announced the launch of the second Asset Monetisation Plan for the period 2025-2030. This plan is expected to generate ₹10 lakh crore in capital for new projects. Sitharaman emphasized that the government will fine-tune regulations and fiscal measures to support the successful implementation of this plan, aiming to boost infrastructure development and overall economic growth.



Feb 01, 2025 11:38 IST
Budget 2025 Live: Rs 25,000-Crore Maritime Development Fund Announced
The Finance Minister announced the establishment of a ₹25,000-crore Maritime Development Fund to support and promote competition in the maritime sector. The government will contribute 49% of the fund, with the remaining 51% to be raised from the private sector. This initiative aims to boost the growth and competitiveness of India's maritime industry.



Feb 01, 2025 11:38 IST
Budget 2025 Live: Key Power Sector Reforms Unveiled by FM
The Finance Minister announced major power sector reforms to strengthen electricity distribution and transmission. The government will incentivize states to implement reforms in electricity distribution and improve intrastate transmission capacity. These measures aim to enhance the financial health and operational efficiency of power companies. Additionally, states that make progress in this area will be granted an additional borrowing allowance of 0.5% of GSDP to support the implementation of these reforms.



Feb 01, 2025 11:37 IST
Budget 2025 Live Updates: Expanding Medical Education in India
The Finance Minister emphasized the government's commitment to expanding medical education, revealing that nearly 1.1 lakh undergraduate and postgraduate medical seats have been added over the past 10 years, marking a 130% increase. To further bolster healthcare infrastructure, an additional 10,000 seats will be introduced in medical colleges and hospitals in the upcoming year, with a broader plan to add 75,000 seats over the next five years.



Feb 01, 2025 11:35 IST
Budget 2025 Live Updates: ₹1 Lakh Crore Urban Challenge Fund to Drive City Transformation
The Finance Minister unveiled the ₹1 lakh crore Urban Challenge Fund, aimed at transforming cities into vibrant growth hubs. The fund will support innovative redevelopment and improve water and sanitation infrastructure, as highlighted in the July Budget. It will cover up to 25% of the cost for bankable projects, with at least 50% of the funding coming from bonds, bank loans, or public-private partnerships (PPPs). An initial allocation of ₹10,000 crore has been proposed for the fiscal year 2025-26 to launch the initiative.



Feb 01, 2025 11:34 IST
Budget 2025 Live Updates: Third Engine of Growth - Investing in People
The Finance Minister, Nirmala Sitharaman, highlighted investment in people as the third engine of growth. This includes a focus on the Sashakt Anganwadi and Poshan 2.0 programs, aimed at providing nutritional support to over 8 crore children, pregnant women, lactating mothers, and around 20 lakh adolescent girls in aspirational districts and the Northeast region. To enhance the impact, the government will increase the cost norms for these programs. This initiative aims to build a healthier, stronger future workforce.



Feb 01, 2025 11:33 IST
Announcement for the Young Curious Minds of India
Union Budget 2025 Live Updates: In a move to foster curiosity, innovation, and scientific temper among students, Finance Minister Nirmala Sitharaman announced the establishment of Atal Tinkering Labs in 50,000 government schools over the next five years. Additionally, broadband connectivity will be extended to all government secondary and primary schools, ensuring better access to digital learning resources for students across India.



Feb 01, 2025 11:30 IST
FM: Budget to Focus on Supporting Growth, Innovation, and Employment
Union Budget 2025 Live Updates: Finance Minister Nirmala Sitharaman emphasized that the upcoming Budget will focus on several key areas, including:
• Furthering the Make In India initiative
• Supporting MSMEs and driving employment-led development
• Investing in the people economy and fostering innovation
• Securing energy supplies and supporting exports
• Nurturing innovation to boost overall economic growth
Sitharaman highlighted the vital role of the "gareeb" (poor), "youth," "annadata" (farmers), and "naari" (women) in spurring agricultural growth and productivity.



Feb 01, 2025 11:29 IST
Another Boost for Bihar: Food Processing Initiative
The Finance Minister announced the establishment of a National Institute of Food Technology, Entrepreneurship, and Management in Bihar. This initiative aims to empower the eastern region by promoting food processing, enhancing farmers' incomes, and creating new opportunities for skill development, entrepreneurship, and youth employment.



Feb 01, 2025 11:26 IST
Support for Women and SC/ST Entrepreneurs
The government will introduce a new scheme offering term loans of up to ₹2 crore for first-time entrepreneurs from women, Scheduled Castes, and Scheduled Tribes communities. This initiative aims to empower marginalized groups, providing them with the financial support needed to start and grow businesses.



Feb 01, 2025 11:25 IST
Union Budget 2025 LIVE: Boost for India's Footwear, Leather & Toy Sectors
India's Footwear and Leather Sector: The Finance Minister has announced a set of policy measures aimed at enhancing the productivity, quality, and competitiveness of India's footwear and leather sector. A new focused products scheme will support design capacity, component manufacturing, and machinery for producing non-leather quality footwear, alongside the support for leather footwear and products.
This initiative is expected to create employment for 22 lakh people, generate over ₹400 crore, and facilitate exports of ₹1.1 lakh crore.
For the Toy Sector: Additionally, a new scheme will aim to establish India as a global hub for toys. This will focus on developing manufacturing clusters, building skills, and fostering an ecosystem that produces high-quality, innovative, and sustainable toys, reinforcing the "Made in India" brand.



Feb 01, 2025 11:24 IST
Budget 2025 LIVE: Customised Credit Cards for Micro Industries
In a major boost to credit access for micro industries, the government has announced the introduction of customised credit cards with a limit of ₹5 lakh.
To support the growth of these industries, the government will issue 10 lakh such cards in the first year, providing micro industries with easier and more efficient access to financial resources. This initiative aims to empower small-scale businesses to expand, innovate, and strengthen their presence in the economy.



Feb 01, 2025 11:23 IST
Budget 2025 LIVE: Big Announcements for MSMEs - The Second Engine of Growth
Finance Minister Nirmala Sitharaman has made significant announcements to boost MSMEs (Micro, Small, and Medium Enterprises), the second engine of growth in India's economy.
With over 5.7 crore MSMEs in India, employing 7.5 crore people, and contributing 36% to the nation's manufacturing, these businesses play a pivotal role in India's rise as a global manufacturing hub. The MSME sector is also responsible for 45% of India’s exports.
To further strengthen this vital sector, the government will enhance the investment and turnover limits for MSMEs, increasing them by 2.5 times and 2 times, respectively. This move is set to empower MSMEs, enabling them to scale up, innovate, and create more employment opportunities, especially for the youth.



Feb 01, 2025 11:22 IST
Budget 2025 LIVE: Prime Minister Dhan Dhanya Krishi Yojana Launched
Finance Minister Nirmala Sitharaman has announced the Prime Minister Dhan Dhanya Krishi Yojana (PMDDKY), a new scheme aimed at transforming the agricultural sector. The scheme will be rolled out in partnership with state governments, starting with 100 districts in its first phase. It will follow the model of the Aspirational Districts Programme (ADP), which was launched by Prime Minister Narendra Modi in 2018, covering 112 districts. The PMDDKY will be implemented across agricultural districts to boost growth in the farming sector.