On February 1, 2025, Union Finance Minister Nirmala Sitharaman presented the budget for the fiscal year 2025-26. The budget focused on tax relief for the middle class, supporting farmers, infrastructure development, and maintaining fiscal consolidation. Her budget speech highlighted significant reforms and new initiatives aimed at transforming various sectors of the Indian economy.

Key Highlights of Budget 2025

Empowering the Marginalised

The government emphasised its commitment to uplifting four major categories: women, youth, the poor, and farmers. Finance minister stated that the government has successfully lifted 25 crore people out of poverty in the last ten years.

Social Welfare Programs

The government continued providing free food to 80 crore people through various schemes. Direct benefit transfers of ₹34 lakh crore through PM Jan Dhan Yojana accounts resulted in savings of ₹2.7 lakh crore.

Support for Artisans and Entrepreneurs

Schemes like the PM Vishwakarma Yojana and PM-SVANidhi provided support to artisans and street vendors. 30 crore Mudra Yojana loans were disbursed to women entrepreneurs.

Skill Development

Over 1.4 crore youth were trained under the Skill India Mission. Expansion of the ‘Lakhpati Didi’ scheme to empower rural women and boost the rural economy.

Economic Growth and Inflation

Inflation remains within the target range of 2%-6%. GDP growth is projected at 6.4%, with a focus on boosting household consumption and savings.

Housing and Healthcare

The government plans to subsidise the construction of 30 million affordable houses in rural areas. This expansion of healthcare initiatives includes cervical cancer vaccination and a comprehensive programme for maternal and child health care.

Agricultural Reforms

A six-year program was introduced to boost pulses and cotton production, aiming to reduce import dependence. The new high-yield crop program will benefit 17 million farmers, enhancing agricultural productivity.

New Initiatives in Budget 2025

Formalisation measures for gig economy workers to improve their access to healthcare and welfare benefits. Significant investment in nuclear energy to achieve 100 GW capacity by 2047.

Green Initiatives and Economic Corridor

Plans for Net Zero by 2070, including funding for offshore wind energy generation and expansion of the e-vehicle sector. Emphasis on the India-Middle East-Europe Economic Corridor in world trade.

Fiscal Management

Increased capital expenditure to ₹11.11 lakh crore for 2025-26. Commitment to continue fiscal consolidation, aiming to reduce the fiscal deficit to 4.5% in 2025-26. Revised tax rates for higher income brackets to boost household consumption and savings compared to last year’s budget.

The Budget 2025 received positive responses from various sectors, emphasising the government’s dedication to inclusive growth, infrastructure development, and fiscal prudence. Industry leaders praised the focus on economic reforms, green energy, and social welfare, expressing confidence in the government’s vision for a prosperous India. India’s Budget 2025 reflects a balanced approach to addressing the needs of diverse sections of society. With a focus on empowerment, economic growth, and sustainability, the government’s initiatives aim to propel India forward and create a more inclusive and prosperous nation.