Union Budget 2025-26

Introduction of union budget

The union budget is the government’s annual financial plan that shows how money will be raised and spent in the coming year. It is presented to the Parliament by the Finance Minister on 1 February each year. Through this budget, the government sets its priorities for the economy, such as tax rules, development projects, social welfare schemes, and policies for industry, farmers, workers, and the general public. In short, the budget is like a roadmap for the country’s growth and progress. It shows what the government intends to do for its citizens in the next financial year and how it will maintain a balance in revenue and expenditure while promoting comprehensive growth.

What is new in the union budget 2025?

The union budget 2025, presented in Parliament on February 1, brings a mix of relief, hope and new opportunities for the people of India. The Finance Minister described it as a budget of “inclusive growth” and its clear aim is to make life easier for the middle class, farmers, youth and small businessmen.

One of the biggest announcements relates to income tax. Under the new tax regime, families earning up to ₹12 lakh annually will not have to pay any income tax. This is being seen as a big step for the middle class, as it will leave them with more money to spend and save.

For farmers, the government has announced new schemes to improve crop production, fisheries and horticulture. A special programme has also been planned to encourage local products with support for processing and marketing. The message is clear: agriculture will remain at the centre of India’s growth story.

The budget has also given a strong push to research, innovation and education. A huge fund has been created to support young researchers and students, with thousands of fellowships being offered. This is expected to give a big boost to new ideas, technology and future startups.

Cities will also see changes. With a huge new fund for urban development, the government plans to improve water, sanitation, housing and transport facilities. This is likely to benefit both small cities and metros, making them more liveable and modern.

Street vendors and small shopkeepers will get additional support under an improved loan scheme, which will now be linked to digital payments and credit facilities. This will make it easier for them to grow their business without depending on moneylenders.

The budget also talks about better airports, smooth transportation and better export systems to connect India more strongly to global markets.

Overall, the union budget 2025 is a mix of tax relief, rural support, youth empowerment and urban development. The government’s clear message is that development must reach everyone—be it in villages or cities—so that India can move ahead together.

What are the Four Pillar of Budget 2025?

union Budget 2025: The Four Strong Pillars of Growth:-

The union budget 2025 has been presented as a vision document for the coming years and the finance minister has described it as standing on four strong pillars. These pillars will take India towards rapid development and take care of the common people. Let’s understand these four pillars in a simple way.

1. The poor and the peasants

The first pillar focuses on the poor and peasants. The government has promised more support for agriculture, better seeds, irrigation projects and dairy, fisheries and local products. It aims to make agriculture more profitable and ensure that no poor family is left behind. The budget aims to strengthen the foundation of the country by strengthening the villages.

2. Youth and Education

The second pillar is the youth of India. Special funds have been allocated for research, innovation and higher education. Thousands of fellowships and skills training opportunities will be offered to young students. It aims to prepare young people for new jobs, modern industries and startups. When young people have opportunities, the whole country moves forward.

3. Women empowerment

The third pillar is women. The budget also discusses new schemes for women entrepreneurs, better healthcare and more opportunities for education and employment. Women are now seen as equal partners in development, and this budget seeks to make them more empowered and independent. When women step forward, every family and society is stronger.

4. Infrastructure and Employment

The fourth pillar is infrastructure and employment. There will be major investments in roads, railways, airports, housing and urban development. Along with that, new schemes have been launched for small traders and street vendors. This will not only improve facilities in towns and cities but also create lakhs of jobs for our youth.

Is union budget 2025 Good or Bad?

Union Budget 2025: How right, how imperfect in the eyes of the people and the media

Like every year, there is a lot of talk about the budget. Different opinions have come from newspapers, news channels and blogs. Some people call it a relief for the general public, while others feel that there are still many questions left in this.

Income tax exemption is the most talked about issue. Now families earning up to Rs 12 lakh will not have to pay tax. This is considered a great relief to ordinary households. Many people say this leaves more money with the middle class, which will both increase spending and benefit the economy.

The second big appreciation has been for cities and employment. A new fund has been announced in the budget, which will improve facilities such as sanitation, water, housing and transportation of cities. People believe that this will create new jobs and make life easier for people in both small and large cities.

Efforts to increase exports are also considered positive. The new steps taken by the government are expected to help Indian products sell better overseas.

Taxes have been reduced, some experts say, but government spending is also very high. In such a situation, it will not be easy to manage the financial decline. If income decreases or plans remain slow, it may be difficult to achieve goals.

Some people also said that the budget did not focus as much on long-term concrete policies related to employment and industry as was expected.

What are the 4 engines of union budget 2025?

The Union Budget 2025-26 has set the blueprint for growth for the next decade, based on four growth engines – Agriculture, MSMEs, Investment and Export Promotion These engines are not just policy announcements; They are targeted strategies that will accelerate India’s economic journey by ensuring growth for farmers, small businesses, youth and global markets.

1. Agriculture – The backbone of India’s growth

Agriculture has always been the heart of the Indian economy and this Budget will further strengthen it through modern equipment, credit facilities and value chain reforms

Pradhan Mantri Dhanakrishi Yojana: This flagship program will cover 100 low-producing districts, providing better irrigation, conservation and post-harvest facilities to 1.7 crore farmers. Farmers in the region, who often earn less because of poor soil or limited resources, are now seeing better incomes and less waste.

Rural Prosperity and Resilience Programme: A joint initiative with states to reduce unemployment in villages through skills training, technology adoption and local investment. This directly helps the rural youth who depend on seasonal agriculture for their livelihood.

Pulses Self-Reliance Mission: India imports tur, urad and lentils in large quantities. This 6-year mission to reduce dependency will provide climate-friendly seeds, assured procurement by NAFED and NCCF and reasonable prices for farmers. This ensures profits for farmers and stabilizes pulse prices for consumers.

Expansion of Kisan Credit Card (KCC): The KCC credit limit has been increased from ₹3 lakh to ₹5 lakh, benefiting 7.7 crore farmers. This means easy access to credit without resorting to lenders.

Seed research and cotton mission: More than 100 new high-yielding and pest-resistant varieties will be introduced with a 5-year cotton productivity plan to increase production of long-term staple cotton. The textile industry will benefit from better quality cotton and farmers will benefit more.

Bihar Makhana Board and Fruit and Vegetable Programme: By focusing on local products like makhana and perishable sasio, farmers can get fair market prices through better conservation and supply chain.

Fish Urea Plant in Assam: A new infrastructure for deep sea fisheries and a large urea plant (12.7 lakh MT) will boost productivity and reduce import costs.

Who will benefit? Farmers, fishermen, rural labourers, small traders.

Potential challenges: Delays in implementation in irrigation conservation projects can reduce immediate benefits.

2. MSMEs - Empowerment of local enterprises

Micro, small and medium enterprises (MSMEs) are the largest job creators in India. The budget offers them a new lifeline in the form of loans, support schemes and export opportunities.

Revised MSME classification: Investment and turnover thresholds have been increased 2.5 times, helping more businesses access grants, loans and tax benefits.

Micro Enterprise Credit Card: A new facility has been launched to provide loans of up to Rs 5 lakh to 10 lakh small businessmen – shopkeepers, artisans and self-employed workers – to expand their operations.

Credit Guarantee Cover: The credit guarantee cover has been doubled from ₹5 crore to ₹10 crore, helping small firms to get more loans without incurring any losses.

Focus on leather, footwear and sporting goods: Special schemes for these sectors are expected to create 2.2 million new jobs, export earnings of Rs 1.1 lakh crore and establish “Made in India” products globally.

Food Technology and Startup Fund: The new National Institute of Food Technology and Rs 10,000 crore startup fund in Bihar will encourage entrepreneurs in food processing, research and innovation.

Who will benefit? Local shopkeepers, artisans, exporters, small factories, startups.

Potential challenges: Loans to small enterprises are often stuck in banks; Timely delivery will determine success.

3. Investments - Shaping India's future

The third engine is investments in infrastructure, research and social sectors. The government has decided to fund long-term projects that will create jobs and global competitiveness.

Urban Challenge Fund (₹1 lakh crore): It will transform Indian cities into “growth hubs” by improving urban infrastructure, sanitation and smart regeneration.

Jal Jeevan Mission (₹67,000 crore): Extended to 2028, it will ensure piped water supply to all rural households. 15 crore households (80% of rural India) have already benefited from this scheme.

Maritime Development Fund (₹25,000 crore): For shipbuilding, ports and logistics funds – to boost exports and promote coastal employment.

Teaching and research:

IIT expansion to accommodate 6,500 new students.
Prime Minister Research Fellowship ₹10,000 for advanced research at IITs/IISc.
Scheme to create digital Indian language books to facilitate education in local languages.

Health Services: 200 cancer day care centres to be opened in 2025-26, and every district hospital to be expanded in three years.

Energy and Technology:

Under the Atomic Energy Mission (₹20,000 crore), 5 Small Modular Reactors (SMRs) to be installed.
Legislative reforms to allow private participation in nuclear power generation.

Communications and Tourism:

Restructuring of UDAN scheme: 120 new runways, helipads and greenfield airports in the Northeast.
Development of 50 important tourist destinations for employment and income generation.

Who will benefit? Urban households, students, researchers, rural households, patients, port cities, tourists.

Potential Challenges: Financing large infrastructure facilities often involves land acquisition hurdles and time-consuming processes.

4. Export Promotion – Taking India Global

The fourth engine pushes India towards becoming a global trade powerhouse. The focus is on digital trade facilitation, outsourcing hubs, and new export infrastructure.

Export Promotion Mission: A coordinated push by the Commerce, MSME, and Finance Ministries to set sector-specific targets.
BharatTradeNet (BTN): A single digital platform for trade documentation, financing, and compliance, making exports easier for small businesses.
Global Capability Centres (GCCs): Policy incentives to attract outsourcing hubs in Tier-2 cities like Jaipur, Lucknow, Coimbatore. This reduces dependency on metros and spreads jobs across India.
Air Cargo Warehousing: Special storage facilities for high-value and perishable exports like fruits, vegetables, and pharmaceuticals.

Who benefits? Exporters, IT service providers, small-scale manufacturers, farmers, logistics companies.
Possible challenge: Global market slowdown or trade wars could limit the gains from export promotion.

What are the highlights of budget 2025 for IT Sectors?

Union Budget 2025: What’s special about the IT sector?

The IT or information technology sector has received special news in this year’s budget. People big and small are happily saying that IT companies and their respective people will now have help in their work – and friends, I want to tell you why this is good:

Investment in research and technology has increased. The government has invested money to promote new software, artificial intelligence and apps. This means IT youngsters or startups are more likely to be helped by public funds.
The focus is on IT hubs and data centers. This means that if someone wants to set up an IT park or data center in a city or small town, there is a possibility of getting government help. This will make it easier to start a new technology business anywhere in Haryana, Bangalore, Patna.
Emphasis on skill development. For the IT sector, new programs are being introduced to teach skills like coding, cloud computing, cyber security. So that college-bound kids or working kids get the right skills and get a job quickly.
The good news is that the start-up ecosystem will be even stronger. Funds and schemes given to technology-based startups are being relaxed so that software or technology ideas can be implemented in practice.

Another good initiative is to encourage research and development and patents. In other words, if a company innovates in a new technology, it can get a rebate or discount on the cost of patenting. This will encourage people to try new experiments.

Budget 2025 has this message for the IT sector:

₹2,000 crore → for AI mission
₹500 crore → AI Centre of Excellence (in education sector)
₹782 crore → for cyber security projects
₹255 crore → for CERT-In (National Cyber Response Agency)
₹20,000 crore → for R&D + Deep Tech start-ups
48% budget hike for MeitY

All these steps send a clear message to the IT sector: India now wants to be a technology developer, not just a technology user.

How this union budget 2025 impact the common people of india ?

Impact on the life of the common man: Budget 2025

Relief for villages and farmers

In this budget, big schemes have been kept to strengthen agriculture-better seeds, irrigation projects, dairy, fisheries and promotion of village products.

This means that there will be an effort to increase the income of the farmer, and migration from villages to cities will be reduced. When villages are strong, food items will be cheaper and common people living in the city will also benefit.

Jobs and skill training

Special attention has been given to the youth. Money has been kept in the budget for research, start-ups, skill training and higher education.

The effect of this will be that new industries and jobs will emerge, especially in the IT and tech sector. This is a relief news for the youth struggling with unemployment.

Support to women

New healthcare plans, education and employment plans have been introduced for women. Also, loans and schemes for women entrepreneurs will be easier.

This means that women, from villages to cities, will now be more independent and financially strong. This will have a direct impact on the entire family.

Roads, railways and houses

A huge expenditure has been announced on infrastructure – new roads, railway lines, metros, airports and affordable homes.

This means that travel will become easier, small towns will be connected to big cities and employment opportunities will increase. Also, housing schemes will make it a little easier for the middle class to buy a house.

Benefits of digital and tech

The huge investments made in AI, cyber security and digital services will gradually reach the common man.

Like – government work will become faster, online services will become cheaper and safer, and new start-ups will make everyday life easier (like health apps, farming information apps, fintech apps).

Which new Scheme was launched in the Budget 2025-26?

New Schemes Introduced in Union Budget 2025-26

1. Prime Minister Dhan-Dhaanya Krishi Yojana

A new scheme for 100 low-productivity districts, which will help about 1.7 crore farmers. It brings better irrigation, storage, and crop technology—aimed at making their farming more profitable, easily accessible, and less risky.

2. Mission for Aatmanirbharta in Pulses

A six-year drive focused on three important pulses—Tur, Urad, Masoor. With guaranteed prices and climate-resistant seeds, it aims to cut import dependence and give our farmers better income security.

3. Comprehensive Programme for Vegetables & Fruits

A first-of-its-kind scheme that supports farmers with better production, supply chains, processing and fair prices—working with states to cut wastage and raise earnings of fruit and veggie growers.

4. National Mission on High Yielding Seeds

Over 100 new high-yield, pest-resistant seed varieties will be developed and made available—boosting crop output and helping India stay ahead in agricultural research.

5. Scheme for First-Time Entrepreneurs (Women/SC/ST)

A special scheme for 5 lakh new entrepreneurs—women, and those from SC/ST communities—offering term loans up to ₹2 crore over five years to encourage more people to start their own ventures.

6. Atal Tinkering Labs in Schools

Plans to set up 50,000 innovation labs in government schools over five years—so students get hands-on experience with science, robotics, coding and more from a young age.

7. PM SVANidhi Revamp for Street Vendors

Street vendors get a boost: bigger loans, UPI-linked credit cards with ₹30,000 limit, and training. These steps will help them grow their small businesses with less hassle.

8. Bharatiya Bhasha Pustak Scheme

Digital books in regional Indian languages for schools and colleges—so students can learn in their mother tongue and understand concepts better.

9. Social Security for Gig Workers

Gig workers—think delivery heroes, app drivers—will now get ID cards, healthcare benefits under Ayushman Bharat, and registration through the e-Shram portal.

10. Export Promotion Mission + BharatTradeNet

A fresh mission to support exporters, plus a single digital platform—BharatTradeNet—to simplify trade docs and finance. A big leg-up for businesses selling abroad.-

What was the expectation from union budget 2025?

Expectations from Union Budget 2025

Before the budget was announced, people across India had high hopes that the government would bring relief to their daily lives and also push the economy forward. Salaried people wanted more tax relief, farmers expected better support prices and subsidies, while the youth looked for more jobs and skill programs. The middle class hoped for cheaper home loans, healthcare, and education costs. At the same time, business owners and start-ups were expecting policies that could reduce compliance burden and boost digital growth.

Key Expectations in Points

Tax Relief for Middle Class – Increase in income tax exemption limits and simplification of tax filing.
Job Creation – More government projects and private sector opportunities for freshers and young professionals.
Support for Farmers – Higher MSP, better irrigation facilities, and crop insurance benefits.
Affordable Housing – Extension of subsidies under Pradhan Mantri Awas Yojana for middle-income families.
Healthcare Benefits – Expansion of Ayushman Bharat scheme and more funds for rural hospitals.
Education & Skill Development – More scholarships, digital learning support, and skill training for youth.
Women Empowerment – Loans for women entrepreneurs and schemes for financial independence.
Boost to Start-ups & MSMEs – Easy credit, lower GST burden, and support for new tech ventures.
Digital India & AI Growth – More funds for IT, AI, cybersecurity, and tech innovation.
Lower Inflation & Price Control – Measures to reduce the rising cost of food, fuel, and daily needs.

Area	People’s Expectation	Budget 2025 Reality
Tax Relief	Higher tax exemption limits, simpler filing	Slabs unchanged, only small relief in standard deduction
Job Creation	Large-scale government jobs, quick employment opportunities	Focus on skill training, start-ups; no big govt job plan
Farmers’ Support	Higher MSP, fertilizer subsidies, direct relief	Irrigation projects, rural infra support; limited MSP hike
Affordable Housing	More subsidy for middle-class homes under PM Awas Yojana	Schemes extended for rural/urban poor; little relief for middle class
Healthcare	Expansion of Ayushman Bharat, cheaper medicines	More funds for rural health & digital health; no big new scheme
Education & Skills	Scholarships, free digital learning, school reforms	Fellowships, AI mission, research funds; limited school reforms
Women Empowerment	Special loans, direct cash support, job schemes	Schemes for women entrepreneurs & SHGs; no large cash support
Start-ups & MSMEs	Easy loans, GST relaxation, wider tax benefits	₹20,000 crore for deep-tech start-ups; small traders still left out

Summary of Union Budget 2025-26

The Union Budget 2025, presented as a vision document, focuses on inclusive growth by balancing tax relief, rural support, youth empowerment, women empowerment, and infrastructure development. Its key highlight is tax exemption for families earning up to ₹12 lakh, offering big relief to the middle class. Farmers have been promised better irrigation, seeds, and storage, while the youth gain through fellowships, research funds, and skill programs. Women entrepreneurs and SHGs get new schemes for independence, and massive investments in roads, railways, housing, and digital technology aim to boost jobs. The budget stands on four strong pillars—poor and farmers, youth, women, and infrastructure—and is driven by four engines—agriculture, MSMEs, investments, and exports. The IT sector sees a major push with ₹20,000 crore for R&D, ₹2,000 crore for AI, and a 48% hike for MeitY. New schemes like PM Dhan-Dhaanya Krishi Yojana, Atal Tinkering Labs, and social security for gig workers reflect its people-first approach. While the budget has been praised for tax relief and urban growth, questions remain on long-term job creation and fiscal challenges. People had high expectations for more tax cuts, subsidies, and healthcare, and though not all were met, the message is clear: the government wants growth to reach every corner of India.