The Union Budget for the fiscal year 2025-26, presented by Finance Minister Nirmala Sitharaman, is designed to foster inclusive and sustainable economic growth in India. The budget emphasizes key areas such as tax relief, digital transformation, clean energy, agriculture, rural development, and support for Micro, Small, and Medium Enterprises (MSMEs).
A significant change in the income tax structure is the increase of the zero tax slab to ₹12 lakh per annum. This adjustment means that individuals earning up to this threshold will not incur any income tax, potentially increasing disposable income and stimulating consumer spending.
Customs Duties
The budget also simplifies customs duties by reducing the number of tariff rates from 22 to 8. This reform aims to create a more transparent tax structure that is easier for businesses to navigate.
Digital Transformation
Investment in Innovation
The government has allocated ₹20,000 crores for research and development (R&D) as well as DeepTech funds. This funding will support the establishment of Artificial Intelligence (AI) excellence centers and Atal Tinkering Labs, promoting innovation across various sectors.
Digital Literacy
To enhance digital literacy, the budget proposes the establishment of 50,000 Atal Tinkering Labs in government schools, ensuring students have access to modern technology. Additionally, broadband connectivity will be expanded to all government secondary schools, particularly benefiting students in rural areas.
Clean Energy and Sustainability
Solar Power
The budget allocates ₹1,500 crores for solar power grid infrastructure and ₹20,000 crores for the PM Surya Ghar: Muft Bijli Yojana. This initiative encourages the installation of rooftop solar panels, providing free electricity to households and reducing reliance on traditional energy sources.
Green Hydrogen
With an allocation of ₹600 crores, the National Green Hydrogen Mission aims to develop green hydrogen technologies, which can significantly lower carbon emissions in industries such as steel and cement.
Nuclear Energy
An ambitious target of achieving 100 GW of nuclear power capacity by 2047 has been set, with a budget of ₹20,000 crores earmarked for developing Small Modular Reactors (SMRs), which promise enhanced safety and efficiency compared to traditional reactors.
Agriculture and Rural Development
Prime Minister Dhan-Dhaanya Krishi Yojana
This scheme focuses on boosting agricultural productivity through sustainable practices and improved irrigation facilities. Funds will be allocated for modern farming techniques and access to quality seeds and fertilizers.
Rural Prosperity Programme
To uplift rural communities, the budget emphasizes skill development, investment in technology, and financial incentives for rural entrepreneurs. This initiative aims to create job opportunities and enhance living standards in rural areas.
Financial Sector and MSMES
Support for MSMEs
The budget introduces measures to support MSMEs through easier access to credit, tax incentives, and subsidies aimed at enhancing their competitiveness in the global market. This is crucial as MSMEs are considered the backbone of the Indian economy.
Financial Reforms
Reforms targeting private sector investments are included to enhance household spending power. The measures involve simplifying financial regulations and incentivizing startups while attracting foreign investments.
Conclusion
The Union Budget 2025-26 outlines a comprehensive roadmap for India’s economic growth by focusing on various sectors critical for inclusive development. By prioritizing tax relief, digital transformation, clean energy initiatives, agricultural advancements, rural development, and support for MSMEs, it aims to create a balanced growth trajectory. The emphasis on innovation and sustainability reflects a commitment to uplifting all segments of society while ensuring a prosperous future for India.
