The 2025-26 Union Budget introduces what the government calls reforms across agriculture, healthcare, technology and infrastructure sectors with a Rs.1.5 lakh crore state funding package.
| Photo Credit: PTI
Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26, outlining what she called a roadmap for economic growth, social welfare, and technological advancement. With a strong push for agriculture, infrastructure, tax relief, and digital transformation, the budget also stressed on defence modernisation, cybersecurity, and space exploration. Highlights include higher credit for farmers, tax cuts for the middle class, record investments in healthcare and education, and a focus on innovation and manufacturing. Here’s a look at the biggest takeaways from this year’s budget.
Agriculture & Rural Development
- Prime Minister Dhan-Dhaanya Krishi Yojana – Covers 100 districts to boost agriculture productivity, irrigation, storage & credit access.
- Mission for Aatmanirbharta in Pulses – A six-year programme focusing on Tur, Urad, and Masoor dal to achieve self-sufficiency.
- Comprehensive Programme for Vegetables & Fruits – Promotes production, efficient supply chains, and fair prices for farmers.
- Mission for Cotton Productivity – A five-year plan to improve cotton yield using science & technology.
- Kisan Credit Card (KCC) Loan Limit Raised – From Rs.3 lakh to Rs.5 lakh for farmers, fishermen, and dairy farmers.
- New Urea Plant in Assam – Annual production of 12.7 lakh metric tons for domestic use
Healthcare
- Medical College Expansion – 10,000 new UG/PG seats in 2025-26, targeting 75,000 seats in five years.
- Day Care Cancer Centres in District Hospitals – 200 centres in 2025-26, all districts covered in three years.
- Social Security for Gig Workers – Includes identity cards, registration on e-Shram portal, and healthcare under PM Jan Arogya Yojana.
- Medical Tourism & “Heal in India” – Private-sector partnership to promote India as a global healthcare hub.
- Broadband for Primary Health Centres (PHCs) – Under BharatNet, all rural PHCs will get internet connectivity.
Education & Skilling
- 50,000 Atal Tinkering Labs – To be set up in government schools over five years to promote STEM learning.
- Broadband Connectivity for Schools – Under BharatNet, all government secondary schools will be connected.
- Bharatiya Bhasha Pustak Scheme – Digital books in Indian languages for school & higher education.
- 5 National Centres of Excellence for Skilling – Industry collaboration for advanced manufacturing training.
- Expansion of IITs – 6,500 more students to be accommodated, hostel expansion at IIT Patna.
- Centre of Excellence in AI for Education – Rs.500 crore allocation for AI-driven education research.
Technology & Innovation
- National Geospatial Mission – Modernisation of land records, urban planning & infrastructure design.
- Deep Tech Fund of Funds (Rs.10,000 crore) – Supports advanced startups in AI, biotech, and space tech.
- PM Research Fellowship – 10,000 fellowships for IITs and IISc, with higher financial support.
- Gene Bank for Crops Germplasm – A second gene bank to store 10 lakh plant varieties for food security.
- Nuclear Energy Expansion – Rs.20,000 crore for Small Modular Reactors (SMRs) as part of the 100 GW nuclear energy goal by 2047.
- Gyan Bharatam Mission – Survey, digitization & conservation of 1 crore+ ancient manuscripts.
Infrastructure & Urban Development
- Urban Challenge Fund (Rs.1 lakh crore) – Focus on Cities as Growth Hubs, Redevelopment & Water/Sanitation Projects.
- 50-Year Interest-Free Loan to States – Rs.1.5 lakh crore for capital infrastructure projects.
- Jal Jeevan Mission Extension – Expanded to 2028 to provide 100 per cent rural tap water connections.
- Public-Private Partnership in Infrastructure – Each ministry will develop a three-year PPP pipeline.
- Asset Monetisation Plan (Rs.10 lakh crore, 2025-30) – Government will sell assets to fund new projects.
- UDAN Regional Connectivity Scheme – Expansion to 120 new destinations, four crore passengers over 10 years.
- Greenfield Airport in Bihar – To supplement Patna & Bihta airports.
Personal Taxes & Financial Reforms
- No Tax for Income up to Rs.12 Lakh (₹12.75 lakh for salaried).
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New Income Tax Slabs:
Rs.0-4 lakh – Nil
Rs.4-8 lakh – 5 per cent
Rs.8-12 lakh – 10 per cent
Rs.12-16 lakh – 15 per cent
Rs.16-20 lakh – 20 per cent
Rs.20-24 lakh – 25 per cent
Above Rs.24 lakh – 30 per cent - Higher Exemption for Senior Citizens – Interest income limit raised from Rs.50,000 to Rs.1 lakh.
- Higher TDS Exemption for Rent – Threshold increased from Rs.2.4 lakh to Rs.6 lakh.
- Updated Return Filing Extended – Taxpayers now have four years (instead of two) to correct filings.
Manufacturing & MSMEs
- National Manufacturing Mission – Boosting MSMEs & ‘Make in India’ with policy support & incentives.
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Enhanced Credit for MSMEs & Startups:
Micro & Small Enterprises – Credit limit raised from Rs.5 crore to Rs.10 crore.
Startups – Guarantee cover raised from Rs.10 crore to Rs.20 crore.
Exporter MSMEs – Term loan guarantee up to Rs.20 crore.
Credit Cards for Micro Enterprises – Rs.5 lakh credit limit, 10 lakh cards in Year 1.
Fund of Funds for Startups (Rs.10,000 crore) – Expanding support for new businesses.
New Scheme for First-Time Entrepreneurs – 5 lakh SC/ST & women entrepreneurs to get loans up to Rs. 2 crore.
Exports & Trade
- Export Promotion Mission – Ministries of Commerce, MSME, and Finance to drive targeted export growth.
- BharatTradeNet – A digital public infrastructure for trade documentation & financing.
- Warehousing for Air Cargo – Focus on high-value perishable goods (e.g., horticulture, seafood exports).
- Integration with Global Supply Chains – Support for Industry 4.0 & electronics manufacturing.
- National Framework for Global Capability Centres (GCCs) – Promoting IT and R&D hubs in Tier-2 cities.
Energy & Environment
- Nuclear Energy Expansion – A Nuclear Energy Mission for research & development of Small Modular Reactors (SMR) with an outlay of Rs.20,000 crore will be set up. At least five indigenously developed SMRs will be operationalised by 2033.
- Green Manufacturing – Incentives for solar PV cells, EV batteries, electrolyzers & wind turbines.
- Power Sector Reforms – States to get 0.5 per cent of GSDP in additional borrowing for electricity distribution upgrades.
Tourism & Cultural Development
- Top 50 Tourist Sites Development – Special focus on Buddhist circuits, spiritual & historical sites.
- PM SVANidhi Expansion – Credit support for 68 lakh street vendors, now with Rs.30,000 UPI-linked credit limit.
- Medical Tourism & ‘Heal in India’ Initiative – Easier visa norms & global partnerships.
Shipping & Maritime
- Maritime Development Fund (Rs.25,000 crore) – Supporting shipbuilding & port upgrades.
- Revamp of Shipbuilding Financial Assistance Policy – Includes credit notes for shipbreaking.
STATEWISE
Bihar
- Greenfield Airport: New major airport(s) to supplement Patna Airport and a brownfield expansion at Bihta.
- Western Koshi Canal Project (Mithilanchal Region): Financial support for irrigation, benefitting 50,000 hectares of farmland.
- Makhana Board: A dedicated Makhana Board to improve production, processing, value addition, and marketing.
- National Institute of Food Technology (Purvodaya): A food processing institute to boost agro-based industry and farmer incomes.
Uttar Pradesh
- Top 50 Tourist Destination Development: Special focus on Buddhist sites under tourism growth plans.
- Medical College Expansion: Several UG/PG seats to be added in UP medical colleges.
- Jal Jeevan Mission Expansion: Major investments to ensure 100 per cent tap water connectivity in rural areas.
Maharashtra
- Urban Challenge Fund (Rs.1 lakh crore): Mumbai and other cities expected to be key beneficiaries of this fund for urban transformation.
- Gig Worker Social Security: Mumbai, Pune, and Nagpur expected to benefit from healthcare coverage for nearly 1 crore gig workers.
- Nuclear Energy Mission: Maharashtra likely to be a major site for at least 5 Small Modular Reactors (SMRs).
Tamil Nadu
- Shipbuilding Clusters: Revamping shipbuilding with incentives and credit support, likely benefitting Chennai and Coimbatore industries.
- Urban Challenge Fund: Major investments expected in Chennai Metro and urban mobility projects.
Gujarat
- Maritime Development Fund (Rs.25,000 crore): Gujarat’s ports and shipping industry expected to benefit significantly.
- Nuclear Energy Expansion: Gujarat’s existing nuclear power plants likely to be part of the 100 GW expansion target by 2047.
Karnataka
- Centre of Excellence in AI for Education (Rs.500 Crore): Likely to be set up in Bangalore.
- PM Research Fellowships (10,000 fellowships): IISc Bengaluru will play a key role in the programme.
Andhra Pradesh & Telangana
- Urban Water & Sanitation Upgrades: Infrastructure investment in Hyderabad and Vishakhapatnam.
- Bharatiya Bhasha Pustak Scheme: Special focus on Telugu-language digital books.
Rajasthan
- Mission for Cotton Productivity: Cotton-growing districts will get scientific support for yield improvements.
- New Medical Colleges: Expansion in healthcare education.
Punjab & Haryana
- Mission for Aatmanirbharta in Pulses: Haryana and Punjab farmers to benefit from increased pulse cultivation support.
- Credit Enhancement via KCC: Rs.5 lakh loan limit increase to support farmers.
North-East (Assam, Meghalaya, Nagaland, Arunachal Pradesh, Manipur, Mizoram, Tripura, Sikkim)
- New Urea Plant in Assam: 12.7 lakh metric tons capacity to support agricultural production.
- Fisheries Development: Special incentives for marine fishing in Andaman, Nicobar, and Lakshadweep Islands.
West Bengal
- Infrastructure & Export Promotion: Kolkata is expected to benefit from logistics & port modernisation.
- Tourism & Heritage Development: Special focus on Bengal’s historical and religious sites.
Agriculture
- Prime Minister Dhan-Dhaanya Krishi Yojana – A new scheme covering 100 districts to enhance productivity, promote crop diversification, improve irrigation, and provide better post-harvest storage.
- Mission for Aatmanirbharta in Pulses – A six-year program focusing on self-sufficiency in Tur, Urad, and Masoor dal.
- Comprehensive Programme for Vegetables & Fruits – To boost production, supply chain efficiency, and pricing for farmers.
- Makhana Board in Bihar – To promote processing, value addition, and marketing of makhana.
- National Mission on High Yielding Seeds – Focus on research, climate-resilient seeds, and commercial availability of 100+ varieties.
- Mission for Cotton Productivity – A five-year mission to enhance cotton yields with scientific support.
- Enhanced Credit through Kisan Credit Cards (KCC) – Loan limit increased from Rs.3 lakh to Rs.5 lakh.
- New Urea Plant in Assam – To boost domestic fertilizer production.
Education
- Expansion of medical education – 10,000 additional UG/PG medical seats in 2025-26, targeting 75,000 new seats in five years.
- Day Care Cancer Centres – To be established in all district hospitals within three years, with 200 centres in 2025-26.
- Social Security Scheme for Gig Workers – Includes identity cards, registration on the e-Shram portal, and healthcare under PM Jan Arogya Yojana.
- Medical Tourism & “Heal in India” Initiative – To promote medical tourism with private sector participation and easier visa norms.
Technology & Innovation
- National Geospatial Mission – To modernise land records, urban planning, and infrastructure design.
- Deep Tech Fund of Funds – A new initiative to support advanced startups.
- PM Research Fellowship – 10,000 fellowships for research in IITs and IISc with enhanced financial support.
- Gene Bank for Crops Germplasm – Second national gene bank for food security and biodiversity conservation.
- Nuclear Energy Mission – Aiming for 100 GW of nuclear energy by 2047; investment in Small Modular Reactors (SMRs).
- Gyan Bharatam Mission – Digitisation and conservation of over 1 crore ancient manuscripts.
Personal Taxes
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New Tax Slabs (for the new regime):
Rs.0-4 lakh: Nil
Rs.4-8 lakh: 5 per cent
Rs.8-12 lakh: 10 per cent
Rs.12-16 lakh: 15 per cent
Rs.16-20 lakh: 20 per cent
Rs.20-24 lakh: 25 per cent
Above Rs.24 lakh: 30 per cent - Higher tax rebate – No income tax for individuals earning up to Rs.12 lakh (Rs.12.75 lakh for salaried).
- TDS/TCS reforms – Higher exemption limits for senior citizens and rental income:
- Interest income exemption limit for seniors doubled to Rs.1 lakh.
- TDS on rental income threshold increased from Rs.2.4 lakh to Rs.6 lakh.
- Updated return filing window extended – Taxpayers now have four years (instead of two) to voluntarily correct tax filings.
Major Allocations & Investments
- 50-Year Interest-Free Loans to States: Rs.1.5 lakh crore
- Asset Monetization Plan (2025-30): Rs.10 lakh crore
- Jal Jeevan Mission Extension: Covers 15 crore rural households; extended to 2028
- Urban Challenge Fund: Rs.1 lakh crore (with Rs.10,000 crore for 2025-26)
- Nuclear Energy Mission: Rs.20,000 crore for Small Modular Reactors (SMRs)
- Research & Innovation Initiative: Rs.20,000 crore
- Deep Tech Fund of Funds: Rs.10,000 crore
- SWAMIH Fund 2 for Stressed Housing Projects: Rs.15,000 crore (to complete 1 lakh houses)
- Maritime Development Fund: Rs.25,000 crore
Agriculture & Rural Development
- Prime Minister Dhan-Dhaanya Krishi Yojana: Covers 100 districts and 1.7 crore farmers
- Enhanced Credit through KCC (Kisan Credit Card): Loan limit increased from Rs.3 lakh to Rs.5 lakh
- Mission for Aatmanirbharta in Pulses: 6-year plan focusing on Tur, Urad, and Masoor
- New Urea Plant in Assam: Annual capacity of 12.7 lakh metric tons
Health & Education
- Medical College Expansion: Adding 10,000 UG/PG seats in 2025-26, targeting 75,000 seats in 5 years
- Day Care Cancer Centres: 200 centres in 2025-26, all district hospitals to have one in three years
- 50,000 Atal Tinkering Labs in government schools over 5 years
- Centre of Excellence in AI for Education: Rs.500 crore allocation
Technology & Infrastructure
- Nuclear Energy Goal: 100 GW by 2047
- UDAN Scheme Expansion: 120 new destinations, 4 crore passengers over 10 years
- Greenfield Airports in Bihar: To supplement Patna airport & Bihta project
- Export Promotion Mission: Sectoral & ministerial targets for boosting exports
Taxation & Relief for Middle Class
- No Income Tax for earnings up to Rs.12 lakh (Rs.12.75 lakh for salaried)
- TDS on Rent: Exemption limit raised from Rs.2.4 lakh to Rs.6 lakh
- TDS Exemption for Senior Citizens: Interest income limit doubled from Rs.50,000 to Rs.1 lakh
- Revenue Forgone in Direct Taxes: Rs.1 lakh crore
- Revenue Forgone in Indirect Taxes: Rs.2,600 crore
Defence
- Continued Modernisation of Armed Forces
- Increased focus on indigenisation under Atmanirbhar Bharat.
- Funding for next-generation weapon systems, AI-driven defense technologies, and advanced surveillance equipment.
- Boost to Domestic Defence Manufacturing
- More investment in defense startups and MSMEs under Make in India.
- New incentives for the private sector in the manufacturing of defense equipment.
- Infrastructure for Strategic Readiness
- Border infrastructure projects in key regions.
- Expansion of logistics and airbases to improve military mobility.
- Enhanced Cybersecurity for Defence
- Strengthened cyber defense units within the armed forces.
- New collaborations with private tech firms to develop AI-powered security solutions.
Cybersecurity
- National Cybersecurity Mission Expansion
- More funding for strengthening cybersecurity frameworks.
- Upgradation of Cyber Swachhta Kendra (Cyber Hygiene Initiative).
- Critical Infrastructure Security
- Strengthening cybersecurity for banking, energy, and telecom sectors.
- Increased funding for National Critical Information Infrastructure Protection Centre (NCIIPC).
- AI & Quantum Security Research
- Investment in AI-driven threat detection and quantum-resistant encryption.
- Collaboration between ISRO, DRDO, and NIC for secure satellite communications.
- Cyber Workforce Development
- Establishment of cybersecurity training hubs in collaboration with IITs and NITs.
- Promotion of hacker training programs to develop ethical hacking talent.
Space
- Increased Budget for ISRO & Private Space Sector
- More funding for Gaganyaan (India’s first human spaceflight mission).
- Expansion of Small Satellite Launch Vehicle (SSLV) program for commercial use.
- Strengthening NavIC (India’s regional satellite navigation system).
- New Space Industrial Corridors
- Support for private space startups through tax incentives and funding.
- Development of dedicated industrial corridors for space technology manufacturing.
- Public-Private Collaboration in Space Tech
- Strengthening the role of IN-SPACe (Indian National Space Promotion and Authorization Center) to foster private-sector participation.
- Encouragement of satellite-based broadband services to improve connectivity in rural areas.
- Nuclear-Powered Space Missions
- Research & development funding for nuclear propulsion systems for deep-space exploration.
The 2025-26 Budget appears to introduce structural changes across many sectors through policy adjustments and funding allocations. The measures span public infrastructure, social programs, and economic reforms, setting a framework for implementation through 2026. State governments will receive support for specific initiatives, said the Finance Minister, while industry incentives target manufacturing and technology development. The policy document establishes new parameters for taxation, credit access, and social welfare programmes, with defined timelines for execution across urban and rural regions.
