Union Budget 2025: A Comprehensive Analysis of India’s Financial Roadmap

Introduction
The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, has garnered significant attention as it sets the financial blueprint for India’s fiscal year. With the nation’s economy poised for robust growth and challenges like inflation and global uncertainties in the backdrop, the budget reflects the government’s priorities in addressing key sectors, promoting inclusivity, and sustaining economic momentum. Here’s an in-depth analysis of the highlights, impacts, and implications of the Budget 2025.

Key Highlights of Union Budget 2025

1. Taxation Reforms

   • Income Tax:
     • Revised tax slabs to offer greater relief to middle-income groups.
     • Standard deduction increased from ₹50,000 to ₹75,000 for salaried individuals.
   • Corporate Tax:
     • Tax incentives extended for startups till FY 2028.
     • Reduction in compliance requirements for MSMEs.

2. Infrastructure Development

   • Allocation of ₹10 lakh crore for infrastructure projects to boost connectivity and employment.
   • Enhanced focus on road, railways, and port connectivity under the “National Infrastructure Pipeline.”
   • New metro rail and regional connectivity projects announced.

3. Agriculture and Rural Development

   • ₹2.5 lakh crore allocated for the agriculture sector to ensure food security and double farmer income.
   • Introduction of a new Agri-Tech Fund to promote technology adoption in farming.
   • Increased allocation for rural employment schemes like MGNREGA.

4. Digital India 2.0

   • Enhanced focus on 5G rollout and digital connectivity for rural areas.
   • ₹1 lakh crore set aside for AI and digital transformation initiatives across various sectors.
   • New incentives for startups in the fintech and edtech space.

5. Healthcare and Education

   • ₹1.2 lakh crore allocated to improve healthcare infrastructure and set up 50 new medical colleges.
   • Focus on mental health initiatives with increased funding for the National Mental Health Program.
   • Education sector gets a boost with ₹1 lakh crore allocated for skill development and e-learning platforms.

6. Green Initiatives and Decarbonization

   • ₹1.5 lakh crore for renewable energy projects and electric vehicle adoption under the “Green India Mission.”
   • Tax rebates for EV buyers extended until 2028.
   • Commitment to achieving net-zero emissions by 2070 with increased focus on green hydrogen production.

Sector-Wise Impact of Budget 2025

1. Startups and Entrepreneurs:

   • Extension of tax benefits and reduced compliance burdens.
   • Increased funding for incubators and accelerators to encourage innovation.

2. Real Estate:

   • Boost for affordable housing with ₹1.75 lakh crore allocated to the PM Awas Yojana.
   • Tax incentives for first-time homebuyers extended.

3. Technology:

   • ₹1 lakh crore for AI and machine learning development.
   • Support for semiconductor manufacturing to make India self-reliant in technology.

4. Healthcare:

   • Funding for vaccine research and pandemic preparedness programs.
   • Enhanced focus on rural healthcare facilities and diagnostics.

5. Education and Skills:

   • Increased scholarships for underprivileged students.
   • National Apprenticeship Program to train youth in emerging industries like robotics and AI.

Public Reactions
The Union Budget 2025 has received mixed reactions from various stakeholders:

• Economists: Applaud the budget’s focus on infrastructure and green energy but caution about rising fiscal deficits.
• Middle Class: Welcome the increased income tax relief but hope for more subsidies on essential goods.
• Industries: Express optimism over incentives for startups and infrastructure projects that could drive job creation.