Finance Minister Nirmala Sitharaman presented the Union Budget for 2025-26 in Parliament on February 1, 2025. This marks the eighth consecutive year she has delivered the budget. The budget is set to allocate substantial resources to key sectors such as agriculture, industry, health, and education, with a focus on providing relief to the public and creating employment opportunities. It also plays a crucial role in advancing the vision of an ‘Atmanirbhar Bharat’ (Self-Reliant India).

In her announcement, the Finance Minister introduced significant reforms to the Personal Income Tax (PIT) system, alongside the rationalization of Tax Deducted at Source (TDS) and Tax Collected at Source (TCS), aimed at reducing the compliance burden. Furthermore, the government has declared exemptions from Basic Customs Duty (BCD) on essential minerals such as cobalt powder, lithium-ion battery waste, lead, and zinc, among 12 other minerals. Additionally, 35 items related to electric vehicle (EV) battery manufacturing and 28 items for mobile phone battery production will now be added to the list of exempted capital goods.

Budget 2025: Full list of key announcements 

Gareeb, youth, nari will be the key focus

Underemployment in agri will be addressed, 1.7 crore farmers will benefit

National Mission on high yielding seeds will be launched

Emphasis on Gig economy

India Post to become large public logistic organisation

Atal Tinkering Labs: 50,000 such labs to be set up in govt schools in 5 years

Rs 10,000 crore fund of funds proposed for start ups

10,000 additional seats to be inculcated in medical institutes; 75,000 medical seats in 5 years will be created

Kisan Credit Cards for 7.7 crore farmers; loan Limit enhanced to Rs 5 lakh

MSME: Term loans up to Rs 20 crore will be given

Modified UDAN scheme to be launched; 120 new destinations under modified UDAN scheme

SWAMIH Fund: another 40,000 housing units to be completed in 2025

Top 50 tourism destination to be developed

National Geospatial Mission announced

Second Gene Bank to be set up for future food security

Greenfield airports to be facilitated in Bihar

Jan Vishwas Bill 2.0 to be brought in to decriminalise 100 provisions

Revised fiscal deficit estimated to be 4.8% of GDP

Capital expenditure at Rs 10.18 lakh crore

Gross market borrowings at Rs 14.82 lakh crore

Social welfare surcharge on 82 tariff lines waived

36 life-saving drugs fully exempted from customs duty

Handicrafts: 9 items to be added to duty free inputs

Personal tax reforms with special focus on middle class

TCS for remittance on education purposes removed

Compliance burden reduced for small charitable trusts

New scheme to determine Arms length Price in international transactions to be introduced

Digitalisation being operationalised in tax frameworks

Start ups: Extending incorporation benefits for five years

Capital gains limit exceeded to Rs 12.7 lakh

Income tax slabs changed

Income of Rs 18 lakh will get Rs 70,000 tax benefit

Now maximum rate of 30% kick in at Rs 24 lakh taxable compared to Rs 15 lakh earlier