
Finance Minister Nirmala Sitharaman presented the Union Budget 2025, introducing a range of reforms across key sectors to drive economic growth and development. A major relief for taxpayers is the increase in the personal income tax exemption limit to ₹12 lakh under the new tax regime, aimed at easing the financial burden on the middle class.
Key Announcements:
- Taxation: The government will introduce a new income tax bill next week, focusing on simplifying the tax structure and reducing compliance burdens. The initiative aims to enhance ease of doing business and promote voluntary compliance.
- Infrastructure: A provision of ₹1.5 lakh crore has been made for 50-year interest-free loans to states for infrastructure projects. Additionally, a ₹10 lakh crore asset monetization plan has been announced to finance new infrastructure initiatives.
- Technology and Innovation: ₹500 crore has been allocated to establish an Artificial Intelligence Centre of Excellence to strengthen AI research and education in India.
- Urban Development: The government will launch a revamped UDAAN Scheme, adding 120 new destinations and expanding capacity for 4 crore additional passengers to improve regional air connectivity.
- Energy: A Nuclear Energy Mission has been announced, with plans to develop at least 100 GW of nuclear power by 2047. The initiative includes policy amendments to encourage private sector participation and a ₹20,000 crore allocation for research on Small Modular Reactors.
- Agriculture: A national mission will be launched to promote high-yielding crops, along with an increased limit for subsidized credit to support farmers and boost agricultural productivity.
- Insurance: The foreign direct investment cap in the insurance sector has been raised to 100%, aiming to increase market penetration and attract global players.
These measures reflect the government’s commitment to economic expansion, inclusive growth and fostering investment across crucial sectors.