India Budget 2025

Power Sector Reforms

• Government will incentivize electricity distribution reforms and augmentation of intra-state transmission capacity by states.
• This will improve financial health and capacity of electricity companies.
•  Additional borrowing of 0.5 per cent of GSDP will be allowed to states, contingent on these reforms.

Clean Tech Manufacturing

• Manufacturing Mission will aim to improve domestic value addition and build our ecosystem for solar PV cells, EV batteries, motors and controllers, electrolyzer, wind turbines, very high voltage transmission equipment and grid scale batteries.

Nuclear Energy Mission for Viksit Bharat

• Development of at least 100 GW of nuclear energy by 2047 is essential for our energy transition efforts.
• For an active partnership with the private sector towards this goal, amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be taken up.
• A Nuclear Energy Mission for research & development of Small Modular Reactors (SMR) with an outlay of  20,000 crore will be set up. At least 5 indigenously developed SMRs will be operationalized by 2033

Critical Minerals 

• In the July 2024 Budget, government had fully exempted BCD on 25 critical minerals that are not domestically available.
•  I had also reduced BCD of 2 other such minerals to provide a major fillip to their processing especially by MSMEs.
• Now, I propose to fully exempt cobalt powder and waste, the scrap of lithium-ion battery, Lead, Zinc and 12 more critical minerals.
• This will help secure their availability for manufacturing in India and promote more jobs for our youth.

Shipping Sector

• Considering that shipbuilding has a long gestation period, government propose to continue the exemption of BCD on raw materials, components, consumables or parts for the manufacture of ships for another ten years. I also propose the same dispensation for ship breaking to make it more competitive.

Shipbuilding

• The Shipbuilding Financial Assistance Policy will be revamped to address cost disadvantages. This will also include Credit Notes for shipbreaking in Indian yards to promote the circular economy.
• Large ships above a specified size will be included in the infrastructure harmonized master list (HML).
• Shipbuilding Clusters will be facilitated to increase the range, categories and capacity of ships. This will include additional infrastructure facilities, skilling and technology to develop the entire ecosystem

Maritime Development Fund

• For long-term financing for the maritime industry, a Maritime Development Fund with a corpus of 25,000 crore will be set up.

UDAN - Regional Connectivity Scheme

• A modified UDAN scheme will be launched to enhance regional connectivity to 120 new destinations and carry 4 crore passengers in the next 10 years.

Centre of Excellence in AI for Education

• A Centre of Excellence in Artificial Intelligence for education will be set up with a total outlay of ` 500 crore.

Agriculture

• Prime Minister Dhan-Dhaanya Krishi Yojana - Developing Agri Districts Programme
• A comprehensive multi-sectoral ‘Rural Prosperity and Resilience’ programme will be launched in partnership with states
• Government is implementing the National Mission for Edible Oilseed for achieving atmanirbhrata in edible oils. Our farmers have the capability to grow enough for our needs and more
• Comprehensive Programme for Vegetables & Fruits
• Makhana Board will be established in Bihar to improve production, processing, value addition, and marketing of makhana.
• A National Mission on High Yielding Seeds will be launched
• Government will bring in an enabling framework for sustainable harnessing of fisheries from Indian Exclusive Economic Zone and High Seas, with a special focus on the Andaman & Nicobar and Lakshadweep Islands.
• Mission for Cotton Productivity- will facilitate significant improvements in productivity and sustainability of cotton farming, and promote extra-long staple cotton varieties.
• Kisan Credit Cards (KCC) facilitate short term loans for 7.7 crore farmers, fishermen, and dairy farmers

MSME

• Revision in classification criteria for MSMEs - To help them achieve higher efficiencies of scale, technological upgradation and better access to capital, the investment and turnover limits for classification of all Significant enhancement of credit availability with guarantee cover.
• Customized Credit Cards with a 5 lakh limit for micro enterprises registered on Udyam portal.
• New Fund of Funds, with expanded scope and a fresh contribution of another 10,000 crore will be set up.

Focus Product Scheme for Footwear & Leather Sectors

• The scheme will support design capacity, component manufacturing, and machinery required for production of non-leather quality footwear, besides the support for leather footwear and products

Measures for the Toy Sector

• Building on the National Action Plan for Toys, government will implement a scheme to make India a global hub for toys.

Saksham Anganwadi and Poshan 2.0

• The Saksham Anganwadi and Poshan 2.0 programme provides nutritional support to more than 8 crore children, 1 crore pregnant women and lactating mothers all over the country, and about 20 lakh adolescent girls in aspirational districts and the north-east region

Atal Tinkering Labs

• Fifty thousand Atal Tinkering Labs will be set up in Government schools in next 5 years to cultivate the spirit of curiosity and innovation, and foster a scientific temper among young minds.

Expansion of Capacity in IITs

• Total number of students in 23 IITs has increased 100 per cent from 65,000 to 1.35 lakh in the past 10 years

PM SVANidhi

• PM SVANidhi scheme has benefitted more than 68 lakh street vendors giving them respite from high-interest informal sector loans

Research, Development and Innovation

• To implement private sector driven Research, Development and Innovation initiative announced in the July Budget, government is now allocating ` 20,000 crore.

Deep Tech Fund of Funds

• A Deep Tech Fund of Funds will also be explored to catalyze the next generation startups as a part of this initiative.

Export Promotion Mission

• It will facilitate easy access to export credit, cross-border factoring support, and support to MSMEs to tackle non-tariff measures in overseas markets.

Taxpayers Hope for Relief in Budget 2025: Will Expectations Be Met?

Lower and middle-income taxpayers await Budget 2025, anticipating relief through lower tax rates or expanded tax slabs.

• Focus on Middle-Class Empowerment:  The budget emphasizes increasing the spending power of the middle class to stimulate economic growth.
• Inclusive Development Initiatives: A significant portion of the budget is allocated to programs aimed at fostering inclusive development across various sectors.
• Encouragement of Private Investment:  Measures have been introduced to incentivize private investment, addressing the current slowdown in economic growth.
• Infrastructure Investment: The government plans to boost public spending on infrastructure to support economic growth while managing the fiscal deficit.
• Tax Reforms: The budget includes transformative reforms in taxation, particularly in the power and mining sectors, to enhance efficiency and revenue generation.
• Fiscal Discipline: Despite the economic slowdown, the government maintains its borrowing and spending targets, aiming for a fiscal deficit of 4.5% of GDP.
• Support for Agriculture:  Increased spending is directed towards the agriculture sector, with potential income tax cuts to alleviate financial burdens on individuals.
• Job Creation Programs: The budget continues to fund job creation schemes to address unemployment and support economic growth.
• Rural Development Emphasis:  Allocations for key rural development schemes are expected to see a 5-8% year-on-year increase, underscoring the government's focus on rural growth.
• AI and Technology Initiatives: Announcements related to artificial intelligence initiatives are anticipated, signaling the government's commitment to technological advancement.