Union Finance Minister Nirmala Sitharaman on Saturday presented the Union Budget 2025 in the Lok Sabha, introducing significant tax relief and key policy measures aimed at boosting economic growth.
In a major push towards affordable healthcare, Sitharaman announced a reduction in customs duty on medicines for serious illnesses, including cancer.
As a result, the prices of several life-saving medicines are expected to come down. Additionally, six life-saving drugs and 36 cancer medicines have been made tax-free.
The government will also remove seven tariff rates under the customs framework and include 57 medicines in the free medicines category.
At the start of her budget speech, the Finance Minister emphasized India's economic performance, stating, "Our economy is the fastest-growing among all major economies. Our track record of development work and structural reforms over the past decade has drawn global attention."
This marks the second full budget of Prime Minister Narendra Modi’s third term and Sitharaman’s eighth consecutive budget presentation as Finance Minister.
The Budget 2025 outlines strategic initiatives across 10 major sectors, with a particular emphasis on agriculture, small enterprises, and economic self-reliance.
Boost for Makhana Farming in Bihar
A dedicated Makhana Board will be established in Bihar to support production and marketing, a move aimed at benefiting farmers engaged in Makhana (fox nuts/lotus seeds) cultivation. India produces 85% of the world's Makhana, with Bihar accounting for 90% of the country's total output. The districts of Madhubani, Darbhanga, Supaul, Sitamarhi, Araria, Katihar, Purnia, and Kishanganj are known for extensive Makhana farming. The region of Mithilanchal, recognized for its lakes, fish, and Makhana cultivation, is expected to gain from this initiative.
Agriculture and Self-Reliance Measures
Agriculture Promotion: 100 districts will be selected for agricultural development under a new scheme.
Food Security: Special emphasis will be placed on increasing self-reliance in the food sector.
Oil and Pulses Production: A six-year plan has been devised to enhance the production of key pulses such as tur, urad, and lentils.
Support for Small Enterprises
To bolster small businesses, the government will introduce credit cards with a ₹5 lakh limitfor small enterprises registered on the Udyam portal. In the first year, 10 lakh such credit cards will be issued to help entrepreneurs scale their operations.
₹0 - ₹4 lakh: No Tax
₹4 lakh - ₹8 lakh: 5%
₹8 lakh - ₹12 lakh: 10%
₹12 lakh - ₹16 lakh: 15%
₹16 lakh - ₹20 lakh: 20%
₹20 lakh - ₹24 lakh: 25%
Above ₹24 lakh: 30%
Withdrawals from National Savings Scheme (NSS) post August 29, 2024, tax-free
TDS exemption limit for rent payments hiked from ₹2.4 lakh to ₹6 lakh
TDS limit for senior citizens on interest doubled from ₹50,000 to ₹1 lakh
New Income Tax Bill to be simplified, clearer, and more direct
Tax assessment approach: “First trust, then scrutinize "
Full exemption of customs duty on 36 life-saving drugs (for cancer, chronic diseases, and rare illnesses)
Interactive flat-panel LCDs to cost more due to higher customs duty (10% to 20%)
Big relief for homebuyers stuck in stressed housing projects
SWAMIH 2 Investment Fund to complete 40,000 more housing units in 2025
₹15,000 crore allocation to complete 1 lakh more homes
UDAAN Scheme Expansion
120 new regional destinations to enhance air connectivity
Will support helipads & smaller airports in hilly & northeast regions
Social Security Benefits for Gig Workers
E-Shram Portal registration & ID cards for gig workers
PM Jan Arogya Yojana healthcare benefits for 1 crore gig workers
PM Swanidhi Scheme Revamp
Increased credit limit to ₹30,000 for street vendors
UPI-linked credit card access for informal sector workers
AI & Education Boost
₹500 crore for Center of Excellence in AI for Education
10,000 new medical seats to be added next year
Target:75,000 new medical seats in 5 years
Higher Credit for Farmers
Kisan Credit Card (KCC) loan limit increased from ₹3 lakh to ₹5 lakh
Benefits 7.7 crore farmers, fishermen & dairy farmers
Jan Vishwas Act 2.0
Decriminalization of 100+ provisions in various laws
Builds on Jan Vishwas Act 2023, which decriminalized 180+ legal provisions
Revamped CKYC Registry for pension products to simplify processes