Budget 2025 Key Highlights: Top Announcements and Takeaways

On Saturday, February 1, 2025, Finance Minister Nirmala Sitharaman unveiled the budget for the eighth straight year. Next week, the administration will present a new income tax measure that will advance the “trust first, scrutinize later” concept.

The FM highlighted the government’s goal to “unlock India’s potential under the leadership of PM Modi” and stated that this budget carries on with its efforts to boost growth.

According to Sitharaman, the Modi government views the upcoming five years as a special chance to implement Sabka Vikas and replicate growth in every region.

According to the Finance Minister, the Budget aims for “transformative” reforms in six areas including taxation, financial sector, energy sector, urban development, mining and regulatory reforms. These areas remain at the core of the government’s agenda with an aim to boost economic growth, improve infrastructure, improve governance and foster sustainable development across multiple sectors.

“Together, we aim to unlock India’s potential under the visionary leadership of Prime Minister Modi,” said the Finance Minister as she began her address. “This budget is dedicated to accelerating growth, driven by our aspirations for a ‘Viksit Bharat.’ Our economy remains the fastest growing among all major economies. The Budget 2025-26 continues our government’s efforts to secure inclusive development, uplift household sentiment and enhance the power of India’s middle class,” she added.

Let’s Take a Look at the Key Announcements and Highlights of the 2025 Budget:

Gareeb, youth, nari can be the important thing focus
Underemployment in agri can be addressed, 1.7 crore farmers will gain
National Mission on high yielding seeds can be released
FM proposes 5-year programme for growing Cotton Productivity
India Post to become massive public logistic business enterprise
Atal Tinkering Labs: 50,000 such labs to be installation in government faculties in five years
10,000 extra seats to be inculcated in clinical institutes; 75,000 medical seats in five years can be created
Kisan Credit Cards for 7.7 crore farmers; mortgage Limit improved to ₹five lakh
MSME: Term loans up to ₹20 crore can be given
Modified UDAN scheme to be released; 120 new locations below changed UDAN scheme
SWAMIH Fund: any other 40,000 housing devices to be finished in 2025
Top 50 tourism destination to be developed
National Geospatial Mission introduced
Second Gene Bank to be installation for destiny meals protection
Greenfield airports to be facilitated in Bihar
New income tax bill next week, says Sitharaman
Jan Vishwas Bill 2.0 to be introduced in to decriminalise a hundred provisions
Revised financial deficit predicted to be 4.8% of GDP
Capital expenditure at ₹10.18 lakh crore
Gross marketplace borrowings at ₹14.82 lakh crore
Social welfare surcharge on 82 tariff lines waived
36 life-saving drugs completely exempted from customs duty
Handicrafts: 9 objects to be introduced to duty free inputs
Personal tax reforms with unique focus on middle class
TCS for remittance on education purposes removed
Compliance burden decreased for small charitable trusts
New scheme to decide Arms period Price in global transactions to be added
Digitalization being operationalized in tax frameworks
Start ups: Extending incorporation advantages for 5 years

Direct and indirect taxes

Income tax reforms with special focus on the middle class
The new tax system provides significant relief including:

Zero rate has been increased to 12 Lakhs – Rebate
Rebate for resident individuals under the new regime – No tax on total income up to 1.2 Lakhs.
Capital gains limit has been increased to ₹ 12.7 Lakhs.
The deadline for filing updated tax returns has been extended from the current 24 months to 48 months after the end of each tax year.
Information obligation on crypto assets
Annual valuation of owner-occupied property has been simplified.