The Union Budget 2025-26 presents a visionary roadmap for India's economic and social development, aiming for inclusive growth, private sector investment, and an upliftment of the middle class. Focused on agriculture, MSMEs, infrastructure, social welfare, and financial sector reforms, the budget sets the foundation for India's aspiration of becoming a "Viksit Bharat." Let’s delve into the key highlights and their implications.

Strengthening Agriculture and Rural Economy

The government continues to prioritize the welfare of farmers with significant investments in agricultural infrastructure and credit availability. Key initiatives include:

• National Mission on High Yielding Seeds to improve crop resilience and productivity.
• Prime Minister Dhan-Dhaanya Krishi Yojana to enhance agricultural districts and empower farmers.
• Makhana Board in Bihar to boost production, processing, and marketing.
• Mission for Cotton Productivity aimed at increasing yield and sustainability.
• Enhanced Credit through Kisan Credit Card (KCC) to support 7.7 crore farmers, fishermen, and dairy farmers.
• Aatmanirbharta in Pulses with a 6-year mission focusing on climate-resilient seeds and better post-harvest management.

Empowering MSMEs and Startups

The MSME sector receives a significant boost with enhanced credit availability and regulatory relaxations:

• Credit Cards for Micro Enterprises with a ₹5 lakh limit, benefiting 10 lakh enterprises in the first year.
• Scheme for First-Time Entrepreneurs offering term loans up to ₹2 crore to five lakh new entrepreneurs, including women and marginalized communities.
• Expansion of Investment and Turnover Limits for MSMEs, increasing eligibility for financial benefits.
• Focus Product Scheme for Footwear & Leather to create 22 lakh jobs and boost exports.
• Support for the Toy Sector with cluster development and skill-building initiatives.
• National Institute of Food Technology in Bihar to enhance food processing and entrepreneurship.

Investing in Human Capital and Innovation

Education, healthcare, and skilling initiatives take center stage in this year’s budget:

• Saksham Anganwadi and Poshan 2.0 for better nutrition and child development.
• Atal Tinkering Labs: 50,000 labs in government schools to foster innovation.
• Broadband Connectivity for all government schools and primary health centers.
• Expansion of IITs and AI Centers with ₹500 crore for AI-driven education.
• 10,000 Additional Medical Seats and Day Care Cancer Centers in all District Hospitals to improve healthcare infrastructure.
• PM SVANidhi Scheme Revamp with enhanced loans and digital credit.
• Welfare for Gig Workers with healthcare benefits under PM Jan Arogya Yojana.

Urban Development and Infrastructure Expansion

A robust infrastructure development plan is in place to make Indian cities growth hubs:

• ₹1 Lakh Crore Urban Challenge Fund for smart city development.
• Jal Jeevan Mission Extension till 2028 to ensure 100% water supply coverage.
• Asset Monetization Plan (₹10 Lakh Crore) for funding new projects.
• 50-Year Interest-Free Loans to States for infrastructure and urban growth.
• ₹15,000 Crore SWAMIH Fund-2 to complete one lakh stalled housing units.
• ₹25,000 Crore Maritime Development Fund for long-term financing.
• Regional Connectivity (UDAN Scheme): 120 new destinations to boost tourism and employment.
• Nuclear Energy Mission to encourage private sector participation.

Boosting Exports and Financial Sector Reforms

To facilitate a strong trade ecosystem and financial stability, the budget proposes:

• Export Promotion Mission to ease credit access and global trade integration.
• BharatTradeNet for seamless digital trade infrastructure.
• Warehouse Upgrades for Air Cargo to enhance exports of perishable goods.
• FDI Limit for Insurance Raised to 100%, fostering more foreign investment.
• Grameen Credit Score Framework for rural and SHG-based lending.
• Partial Credit Enhancement Facility by NaBFID for infrastructure bonds.
• Jan Vishwas Bill 2.0 to decriminalize over 100 business-related provisions.

Personal Income Tax Reforms for the Middle Class

Tax relief measures aim to put more money in the hands of citizens:

• New Income Tax Slabs for better savings and reduced burden.
• Senior Citizens' Tax Deduction Limit Doubled from ₹50,000 to ₹1 lakh.
• TDS on Rent Limit Increased to ₹6 Lakh from ₹2.4 lakh.
• Time Limit for Updated Returns Extended to four years.
• Relaxed Compliance for Charitable Institutions with a 10-year registration period.

A Vision for Viksit Bharat

Budget 2025-26 strikes a balance between economic growth, fiscal prudence, and social welfare. By focusing on agriculture, MSMEs, infrastructure, human capital, and financial reforms, it lays a strong foundation for achieving India's dream of becoming a developed nation.