Who Got What
The mega economic event, the 2nd full-fledged budget of the Modi government, will be tabled on February 1 in Parliament. Financial Express Online presents an in-depth analysis of the policies and their impact on various users and sectors. … Read More This page offers both forecasts and real data to help you understand all the details of the Union Budget 2024. The analysis enables you to get a ringside view of not just the top Budget allocations but also the expectations and analysis. Allocations for various welfare schemes and initiatives to drive up capex are seen taking centre stage.
BUDGET 2025 Announcements FOR CONSUMERS
- New tax slabs announced under the new tax regime.
- Individuals earning up to Rs 12 lakh will pay NIL tax.
- Annual income up to Rs 18 lakh will save up to Rs 70,000 in tax.
- Income up to Rs 4 lakh (per annum) – Nil
- Between Rs 4 and 8 lakh – 5%
- Between Rs 8 and 12 lakh – 10 per cent
- Between Rs 12 and 16 lakh – 15 per cent
- Between Rs16 and 20 lakh – 20 per cent
- Between Rs 20 and 24 lakh – 25 per cent
- Above Rs 24 lakh – 30 per cent
- The TDS exemption limit on interest earned from deposits has been doubled from Rs 50,000 to Rs 1 lakh, reducing the tax burden.
- Senior citizens can submit Form 15H to request banks not to deduct TDS, simplifying tax compliance.
- Those with old National Savings Scheme (NSS) accounts that no longer earn interest can withdraw their savings tax-free from August 29, 2024.
- The ₹1 lakh TDS exemption limit will ease compliance and improve financial security for retirees.
- The government will introduce a Rs 2 crore term loan scheme for 5 lakh first-time women, Scheduled Caste (SC), and Scheduled Tribe (ST) entrepreneurs.
- Stand-Up India already provides loans between Rs 10 lakh and Rs 1 crore to at least one SC/ST borrower and one woman borrower per bank branch.
- These loans help entrepreneurs set up greenfield enterprises across manufacturing, services, trading, and agriculture-related sectors.
- The new scheme aims to expand this support, boosting women’s entrepreneurship and economic empowerment.
- India has allocated ₹860 billion ($9.94 billion) for its flagship rural employment guarantee program in the upcoming financial year.
- The government’s push for startups gets a major boost with enhanced credit guarantees and a new Rs 10,000 crore Fund of Funds, aiming to drive innovation and entrepreneurship.
- Raising the FDI limit in the insurance sector to 100% is a crucial move for employment growth, attracting global insurers and fostering competition.
- FDI limit hike is expected to spur hiring across underwriting, sales, actuarial, and customer service roles.
- With India’s insurance penetration at just 4%, greater foreign investment will not only expand market access but also create thousands of new jobs.
- Budget 2025 prioritises job creation, with potential to generate 30-40 lakh jobs across sectors, supported by EPFO incentives and skill development programs targeting 30 lakh youth.
BUDGET 2025 Announcements FOR SECTORS
- 200 daycare cancer centres will be set up in government hospitals in next 3 years.
- The government will promote medical tourism and ease visa process under the ‘Heal in India’ initiative.
- 36 drugs for cancer, rare diseases to be exempt from basic customs duty.
- Next year 10,000 seats will be added in medical colleges and hospitals and 75,000 seats to be added in next 5 years.
- Gig workers to be provided healthcare under PM Jan Arogya Yojana.
- Govt. allocated a budget of Rs 6,81,210 crore. This is an increase of 9.5 percent from the previous year’s Rs 6,21,940 crore
- As per the budgetary allocation document the capital outlay is Rs 1,92,387 crore, while the revenue expenditure is Rs 4,88,822 crore, which includes Rs 1,60,795 crore for pensions.
- Proposed ₹95,298 crore for the information technology and telecommunications sectors.
- To prevent classification disputes, FM proposed to reduce the BCD from 20% to 10% on Carrier Grade ethernet switches to make it at par with NonCarrier Grade ethernet switches.
- The compensation the government pays telecom service providers for creating infrastructure saw a substantial jump — ₹28,400 crore, up from ₹13,700 crore last year
- Credit guarantee cover for micro and small enterprises increased to Rs 10 crore
- Credit guarantees enhanced for term loans up to Rs 20 crore.
- Investment and turnover limits for MSMEs will be increased, allowing for a 2.5x and 2x expansion in these thresholds, respectively.
- climate-friendly development, the mission will also focus on clean technology manufacturing aiming to build a robust ecosystem for solar PV cells, electric vehicle (EV) batteries, motors and controllers, electrolysis, wind turbines, high-voltage transmission equipment, and grid-scale batteries.
- Allocations for large-scale electronics manufacturing rose by 36% to Rs 6,125 crore, while drone manufacturing saw a significant 72% increase to Rs 57 crore.
- Clean Tech manufacturing: Improve domestic value addition and build ecosystem for solar PV cells, EV batteries, motors, high voltage transmission equipment
- Scrapping Basic Customs Duty (BCD) on minerals to make lower battery manufacturing costs and make EVs cheaper
- The Centre has further outlined a Rs. 20,000 crore outlay to establish a dedicated Nuclear Energy Mission focused on the research and development (R&D) of SMRs.
- Power sector reforms we will incentivize electricity distribution reforms and augmentation of intrastate transmission capacity by states
- Nuclear Energy Mission for Viksit Bharat aims to achieve the development of at least 100 gigawatts of nuclear energy by 2047
- borrowing of 0.5% of GSDP will be allowed to states contingent on these reforms
- UDAN scheme benefits 1.5 crore middle-class individuals; 120 new destinations to be added, aiming for 4 crore more passengers in 10 years
- Infrastructure ministries to create a 3-year project pipeline for PPP mode; Rs 1.5 lakh crore allocated for 50-year interest-free loans to states
- Extension of 50-year interest-free loans to states for another year under the Gati Shakti master plan.
- FM extended the repair timeline for imported railway goods and emphasised strengthening domestic MRO capabilities.
- The government will establish an Urban Challenge Fund of Rs 1 lakh crore.
- Tax-deducted at source (TDS) for income tax for rental income has been increased to Rs 6 lakh per year from the present Rs 2.40 lakh
- Government announces SWAMIH fund 2.0 of Rs 15,000 crore for completion of 1 lakh units in Union Budget 2025
- Making India a global hub for toy manufacturing
- Big boost for leather and footwear industries
- Aatmanirbharta in pulses
- Bihar’s makhana industry gets a dedicated board
- Major push for food processing and nutrition
- PM SVANidhi scheme has benefitted more than 68 lakh street vendors giving them respite from high-interest informal sector loans.
- Building on this success, the scheme will be revamped with enhanced loans from banks, UPI linked credit cards with ` 30,000 limit, and capacity building support.
- SWAMIH Fund 2 will be established as a blended finance facility with contribution from the Government, banks and private investors.
- This fund of ` 15,000 crore will aim for expeditious completion of another 1 lakh units.
- Public Sector Banks will develop ‘Grameen Credit Score’ framework to serve the credit needs of SHG members and people in rural areas
- The Department of Space was granted Rs 13,416.20 crore in the current fiscal year.
- According to the budget allocation document the allocation, the department received a capital allocation of Rs 6,103.63 crore and a revenue allocation of Rs 7,312.57 crore.
- 10,000 seats in medical colleges and hospitals and 75,000 seats in the next 5 years
- Additional infrastructure in IITs and set up 50,000 Atal Tinkering Labs to promote scientific temper
- Increase hostels and infra capacity of IIT Patna
- In the next 5 years, 10,000 fellowships for tech research in IIT and IISCs will be provided.
- The government will launch Bharatiya Bhasha Pushtak scheme to provide a digital form of Indian language books for schools and higher education.
- The credit limit for loans availed through the Kisan Credit Card (KCC) will be raised from ₹3,000 to ₹5,000.
- A dedicated Makhana Board will be set up in the state to enhance its production, processing, value addition, and market reach.
- The National Mission for Edible Oilseeds aims to achieve self-reliance in edible oil production.
- Agricultural productivity will be improved through the adoption of advanced farming technologies and modern equipment.
- Efforts will be made to encourage crop diversification and promote sustainable farming practices for long-term farmer benefits.
- Post-harvest storage infrastructure will be developed at the panchayat and block levels to reduce crop wastage and strengthen food security.
- Irrigation facilities will be upgraded to increase agricultural output and optimize water usage efficiency.”
Budget 2025 Expectations for Consumers & Sectors
