This budget was short. Meanwhile, it is impactful for agriculture, MSMEs, Import/Exports, Healthcare Sector & Infrastructure. Union Budget 2025 was focused on fostering social inclusivity, economic growth & technological advancements. 

Let’s break the entire budget into its simplest form.

Which Segments benefited from Union Budget 2025?

Middle Class & Salaried Individual

This year’s budget has come up as a bumper to middle-class & salaried individuals. Here are key highlights of the announcement made in parliament. 

Unexpected Tax Relief for Middle Class

1. There’s no income tax for salaried individuals who earn up to an average of ₹1 Lakh per month. 
2. Under the new Income Tax regime, salaried classes are exempted from tax up to ₹12,75,000 per annum.
3. The tax deduction limit for senior citizens has doubled from ₹50,000 to ₹1,00,000/-
4. The time limit has been extended from 2 years to 4 years to file updated Tax returns. 
5. Greater benefit for Tax Collected At Source Payments. It has been decriminalized if the TCS payment is delayed. 

How Does New Tax Regime Impacts the Earnings of Middle-Class Individuals?

Under the new tax regime, the salaried individual who earns more than ₹12,75,000/- now pays ‘zero tax’, under the previous tax slab, the same individual would have paid ₹1.2 Lakhs in taxes. 

With new Tax implications, an individual can save up to ₹1.2 Lakh which helps them with higher disposable income & boosting middle-class spending capability. 

During FY 2024-25, tax free salary limit was ₹7 Lakh. They would have saved about ₹45,000/-. But now, they can save up to ₹1.2 Lakh in taxes. 

What Are the Financial Benefits & Reforms for Corporates & MSMEs in Union Budget 2025?

This year’s budget has guaranteed & shown mercy towards MSMEs as it used to do always. There have been plenty of benefits offered to MSMEs to encourage the business landscape in India.

This year’s budget has offered even more advantages by enhancing the benefits of existing schemes & introducing new schemes.

1. Credit guarantee cover for MSMEs has been increased from ₹5 crore to ₹10 crore. According to FM Nirmala Seetharaman, new credit guarantee scheme for MSMEs will unlock ₹2 Lakh crore in business investments & self-reliance [Source: PIB]
2. The Foreign Direct Investment (FDI) limit for the insurance sector was 74% till the new budget, now the limit has been increased to 100% 
3. The new reform to encourage first-time entrepreneurs has been launched. This initiative supports first-time entrepreneurs with up to ₹2 Crore loans. This scheme is now limited only to the first 5 lakh users. 
4. The regulations made more easier to increase the Merger & Acquisitions (M&A) process for companies.

Launch of National Manufacturing Mission

To promote the “Make In India” mission launched in September 2014, the National Manufacturing Mission has been launched. This mission stands on 5 core pillars for industrial progress. 

1. This mission is built to increase the ease & cost of doing business by removing regulatory bottlenecks for industries. 
2. To create a future-ready workforce to skill up industrial workers with ever-evolving industry standards & demands. 
3. To accelerate growth of MSMEs in India. This boosts the innovation & economic growth in the country. 
4. To boost investments & increase technology adoptions within the manufacturing sector. 
5. To match the global quality standards of Indian manufacturing industries by ensuring Standardization & Quality of products.

National Manufacturing Mission (NMM) will also give strategic support for new-age manufacturing startups & industries to increase the quality & standard of solar PV Cells, EV batteries, Semiconductors, grid-scale batteries & many more. 

What Are the Union Budget 2025 Contributions for Healthcare Sector?

There’s been a special focus on facilitating cancer patients to access medical facilities easily. Here are the initiatives announced in Union Budget 2025 by FM Nirmala Seetharaman. 

1. Government has announced the setting up of 200 cancer day care district units which has been a lightray for cancer patients. This initiative aims at bringing cancer therapy near to their homes. 
2. 36 drugs including those for cancer & chronic diseases have been exempted from customs duty. 
3. Special tax exemptions are provided for pharmaceutical companies to focus on R&D.

What Developments Are Possible for Agriculture Sector with Union Budget 2025?

What Are The New Schemes for Farmers Announced in 2025?

1. Prime Minister Dhan Dhanya Krishi Yojana (PMDDKY) has been announced in the Union budget 2025 to enhance agricultural production in 100+ districts of India.
2. Likewise Atmanirbhar Bharat for other products, now it’s been implemented for pulses too. Atmanirbharta in Pulses like Tur, Urad, Masoor, etc., to ensure self-sufficiency within the country. 
3. A special focus on Cotton production is given by the Central government this year. Mission for Cotton Productivity has been announced to increase the production efficiency of cotton. 
4. National Mission for High Yielding Seeds has been announced to give more encouragement for the cultivation of climate-resistant crops.

Scheme Enhancement for Farmers & Agriculture

1. Kisan Credit Card loan limit has been extended from ₹3 Lakh to ₹5 Lakh to facilitate more purchasing opportunities & credit utilization for farmers. 
2. Short-term loan facilities were restricted to fishermen & dairy farmers have been extended. 
3. A drinking water facility was enabled under the Jal Jeevan Mission. Now, it has been extended till 2028 promising 100% coverage to facilitate quality drinking water for people in rural areas.

Key Highlights of Union Budget Contribution to Education & Skill Development

1. 10,000 medical seats have been increased from 2025 throughout the nation. The government is aiming to expand the seats to 75,000 in the next five years.
2. A special initiative by the Indian government to provide broadband connectivity to government schools. However, this initiative could have been implemented long back. 
3. ₹20,000 crore has been allotted for private sector Research & Development.

How Is the Union Budget 2025 Offering Social Security?

This budget has included various schemes that multi-facetedly support farmers, individuals, gig workers & patients too. 

For local gig workers, the government has opened a registration facility under the e-shram portal. All registrant gig workers will get below benefits – 

1. They will receive ID cards from the Government, certifying them as a gig worker. 
2. Under PM Jan Arogya Yojana, they can enjoy benefits provided like healthcare facilities & insurance facilities.
3. PM Svanidhi scheme has been revamped to offer better credit options for street vendors.
4. financial support has been increased to POSHAN 2.0 & Saksham Anganwadi scheme. POSHAN 2.0 is a flagship program by the Central government of India to overcome malnutrition in children & improve health, wellness & immunity through community engagement programs.