Union Budget 2025-26 Live Updates: Finance Minister Nirmala Sitharaman

Union Budget 2025-26 Live Updates: Finance Minister Nirmala Sitharaman. Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26 today, setting a record as the only finance minister to deliver eight consecutive budget speeches. This Budget, introduced as Prime Minister Narendra Modi’s government starts its third term, is under scrutiny for its strategies to tackle the economic slowdown and fiscal concerns.
To formalize the gig economy, Sitharaman announced the introduction of identity cards and registration for gig workers. This initiative aims to enhance social security and streamline benefits for India’s expanding freelance and contract-based workforce.
A new scheme was unveiled to position India as a global leader in toy manufacturing. This initiative will focus on cluster-based development, skill enhancement, and improving the manufacturing ecosystem to support high-quality, innovative, and eco-friendly Indian-made toys.
To boost the rural economy, the finance minister introduced the Dhan Dhanya Krishi Yojana, which will be rolled out in 100 districts nationwide. The scheme is expected to benefit 1.7 crore farmers, generate rural employment, and curb migration by making agriculture a more attractive profession.
The Budget comes amid India’s economic slowdown, with growth hitting a four-year low of 6.4%, sparking debates over tax relief and increased government expenditure. The Economic Survey 2024-25, released before the Budget, projects GDP growth between 6.3% and 6.8% for FY26.
Taxpayers are eagerly awaiting potential changes in income tax slabs that could increase disposable income and boost consumption. Akhilesh Ranjan, Advisor, Tax Policy at Pricewaterhouse & Co, pointed out that individuals earning Rs. 15 lakh face a 30% tax rate, while companies pay only 25%, highlighting the need for personal tax relief.
Meanwhile, investors and markets are closely tracking capital expenditure plans and fiscal deficit targets. Chief Economic Advisor V. Anantha Nageswaran emphasized the importance of deregulation to attract investments and encouraged corporations to raise employee wages and enhance working conditions to drive demand.
No Income Tax Payable Up to Rs. 12 Lakh
Under the new income tax regime, individuals with an annual income of up to Rs. 12 lakh will not have to pay any income tax. This move aims to provide relief to the middle-class taxpayers and encourage more disposable income in the economy.
Tax Benefits for Self-Occupied Properties
Previously, only one self-occupied property could be valued at Nil for tax purposes. However, under the new budget proposal, two self-occupied properties can now be considered as Nil for taxation. This will help homeowners reduce their tax liabilities.
Extension of Deadline for Updated Tax Returns
The time limit for filing updated income tax returns has been extended from 2 years to 4 years. This gives taxpayers more flexibility and time to correct their past tax filings.
TDS & TCS Rationalisation for the Middle Class
• The budget retains almost half of the existing tax provisions while introducing new personal income tax reforms.
• The tax deducted at source (TDS) and tax collected at source (TCS) system has been rationalized, reducing the number of rates and adjusting various thresholds.
• The threshold limit for TCS on Liberalized Remittance Scheme (LRS) remittances has been increased from Rs. 7 lakh to Rs. 10 lakh.
• The TDS threshold limit on rent has been increased to Rs. 6 lakh.
• The TCS on education loans up to Rs. 10 lakh from specified financial institutions has been removed.
Boost to Agriculture & Manufacturing
Agriculture Sector Initiatives
• The government has introduced the PM Dhandhanya Krishi Yojana to boost agricultural productivity, particularly in 100 low-yield districts.
• India is aiming for self-reliance in urea production and high-yield seed farming to increase rural employment.
• The Kisan Credit Card loan limit has been raised from Rs. 3 lakh to Rs. 5 lakh. This will help farmers invest in modern techniques and better-quality seeds, leading to improved yield and profitability.
• A six-year plan has been introduced for self-reliance in pulse production. The government will directly procure pulses through NAFED and NCCF, ensuring stable income for farmers.
Manufacturing Sector Growth
According to Deloitte India, the National Manufacturing Mission, with a strong focus on clean technology, will play a key role in expanding India’s manufacturing sector.
• The goal is to increase the manufacturing GDP contribution from 16% to over 20%.
• This will improve export competitiveness and strengthen the manufacturing value chain in emerging industries such as electric vehicles (EVs), batteries, and wind turbines.
Healthcare Sector Enhancements
Expansion of Daycare Cancer Centers
• The government has proposed setting up daycare cancer centers in all district hospitals.
• KPMG India has welcomed this initiative, stating that it will improve healthcare access for cancer patients and ensure better treatment facilities.
Customs & Trade Reforms
Customs Provisional Assessment Time Limit Set at 2 Years
• The time limit for customs provisional assessments has been fixed at 2 years. This will help streamline import-export processes and reduce uncertainty for businesses engaged in international trade.
Economic Growth and Fiscal Deficit
• India’s economic growth has slowed to a four-year low of 6.4%, raising concerns about the need for increased government spending and tax relief.
• The Economic Survey 2024-25 forecasts GDP growth between 6.3% and 6.8% for FY26.
• The fiscal deficit for FY25 is set at 4.8%, with a projection of 4.4% for FY26.
• The government aims to gradually reduce debt while maintaining fiscal discipline.
Key Tax Announcements
• A new income tax bill will be introduced next week with a “trust first, scrutinize later” approach.
• Basic customs duty (BCD) changes:

Exemptions for 36 life-saving drugs and 35 additional capital goods for EV manufacturing.

BCD on flat panel displays increased from 10% to 20%.

BCD on fish paste reduced from 30% to 5%.

• The government has proposed removing seven additional tariff rates, leaving only eight tariff slabs.
Social Welfare and Gig Economy
• E-Shram Portal: Identity cards and registration for gig workers to improve social security.
• PM Swanidhi Scheme Revamp: Higher loan limits and a Rs. 30,000 UPI-linked credit card for urban workers.
• Grameen Credit Score: Banks to maintain a credit score for self-help groups to enhance financial access.
• Women Empowerment:

New SC/ST Women Loan Scheme to provide five-year term loans to 5 lakh women.

Saksham Anganwadi & Poshan 2.0: Nutritional support for 8 crore children, 1 crore mothers, and 20 lakh adolescent girls.

Manufacturing and Business Reforms
• Toy Manufacturing: India to become a global hub through skill-building and innovation.
• Footwear & Leather Industry: Special scheme expected to generate 22 lakh jobs, Rs. 4 lakh crore revenue, and Rs. 1.1 lakh crore exports.
• Deeptech Fund of Funds: To support technology startups, with 10,000 fellowships for tech research at IITs and IISc.
• Jan Vishwas 2.0 Bill: Over 100 legal provisions to be decriminalized to promote ease of doing business.
• Bilateral Investment Treaty: To attract foreign investment with a model framework.
Banking and Finance Sector
• Insurance FDI: Foreign Direct Investment limit raised from 74% to 100%, provided the insurer invests the entire premium in India.
• New Fund of Funds (FoF): Rs. 10,000 crore investment to support startups.
• MSME Support:

Credit guarantee cover for MSMEs increased from Rs. 5 crore to Rs. 10 crore.

Investment and turnover limits enhanced to 2.5X and 2X, respectively.

MSMEs to receive support in tackling non-tariff barriers for exports.

• India Post to evolve into a major public logistics provider.
Infrastructure and Rural Development
• Urban Challenge Fund: Rs. 1 lakh crore fund for urban growth hubs.
• PPP Model Expansion: Ministries to prepare a three-year infrastructure plan under the Public-Private Partnership (PPP) mode.
• Jal Jeevan Mission extended with an enhanced budget, benefiting 15 crore households.
• Shipbuilding Policy: A Maritime Development Fund of Rs. 25,000 crore, with 49% government contribution.
• PM Gati Shakti Data to be made available to the private sector for logistics and planning.
Agriculture and Rural Economy
• Dhan Dhanya Krishi Yojana:

To be implemented in 100 districts, benefiting 1.7 crore farmers.

Aims to make agriculture more lucrative and reduce migration.

• Atmanirbharta Mission for Pulses: A six-year program for self-sufficiency in tur, urad, and masoor dal.
• Kisan Credit Card: Loan limit increased from Rs. 3 lakh to Rs. 5 lakh.
• Western Kosi Canal Project in Bihar to receive financial assistance.
• Makhana Board in Bihar: To promote processing and value addition.
• National Institute of Food Technology to be set up in Bihar to boost farmer income.
Education and Skill Development
• Medical Education:

10,000 new medical seats to be added.

200 cancer centers to be established in 2025-26.

• National Skilling Centres:

Five Centres of Excellence for global skill development.

6,500 additional seats in IITs established after 2015.

Rs. 500 crore for a Centre of Excellence for AI in Education.

• Atal Tinkering Labs:

50,000 labs to be set up in government schools over five years.

Broadband connectivity for all secondary schools.

Tourism and Transport
• Modified UDAN Scheme:

To connect 120 new destinations.

Expected to cater to 4 crore passengers over the next 10 years.

Greenfield airports planned for Bihar.

• Mudra Loans for Homestays: To support homestay businesses.
• Medical Tourism: ‘Heal in India’ initiative to be expanded with private sector participation.
• Development of 50 Tourist Destinations in partnership with state governments.
Energy and Sustainability
• 100GW Nuclear Energy Target by 2047:

Rs. 20,000 crore for research on Small Modular Reactors.

Rs. Additional borrowing of 0.5% of GSDP allowed for power sector reforms.

• Manufacturing Mission under Make in India to support solar PV cells, electrolysers, and grid-scale batteries.
• Cargo Screening & Customs Clearance:

Simplified process for ease of trade.

Bharat Trade Net to be established as digital public infrastructure.

Final Thoughts
Finance Minister Nirmala Sitharaman’s Union Budget 2025-26 aims to balance fiscal discipline while driving economic growth, infrastructure expansion, and social security initiatives. The budget is expected to strengthen MSMEs, improve financial inclusion, boost rural employment, and enhance India’s global competitiveness.
With a clear focus on tax reforms, ease of doing business, employment generation, and technological advancements, the government has set ambitious goals for inclusive economic development over the next five years. The success of these initiatives will depend on effective implementation and collaboration between central and state governments, industry stakeholders, and financial institutions.

Finance Minister Nirmala Sitharaman presented the Union Budget 2025-26 today, setting a record as the only finance minister to deliver eight consecutive budget speeches. This Budget, introduced as Prime Minister Narendra Modi’s government starts its third term, is under scrutiny for its strategies to tackle the economic slowdown and fiscal concerns.

To formalize the gig economy, Sitharaman announced the introduction of identity cards and registration for gig workers. This initiative aims to enhance social security and streamline benefits for India’s expanding freelance and contract-based workforce.

A new scheme was unveiled to position India as a global leader in toy manufacturing. This initiative will focus on cluster-based development, skill enhancement, and improving the manufacturing ecosystem to support high-quality, innovative, and eco-friendly Indian-made toys.

To boost the rural economy, the finance minister introduced the Dhan Dhanya Krishi Yojana, which will be rolled out in 100 districts nationwide. The scheme is expected to benefit 1.7 crore farmers, generate rural employment, and curb migration by making agriculture a more attractive profession.

The Budget comes amid India’s economic slowdown, with growth hitting a four-year low of 6.4%, sparking debates over tax relief and increased government expenditure. The Economic Survey 2024-25, released before the Budget, projects GDP growth between 6.3% and 6.8% for FY26.

Taxpayers are eagerly awaiting potential changes in income tax slabs that could increase disposable income and boost consumption. Akhilesh Ranjan, Advisor, Tax Policy at Pricewaterhouse & Co, pointed out that individuals earning Rs. 15 lakh face a 30% tax rate, while companies pay only 25%, highlighting the need for personal tax relief.

Meanwhile, investors and markets are closely tracking capital expenditure plans and fiscal deficit targets. Chief Economic Advisor V. Anantha Nageswaran emphasized the importance of deregulation to attract investments and encouraged corporations to raise employee wages and enhance working conditions to drive demand.

No Income Tax Payable Up to Rs. 12 Lakh

Under the new income tax regime, individuals with an annual income of up to Rs. 12 lakh will not have to pay any income tax. This move aims to provide relief to the middle-class taxpayers and encourage more disposable income in the economy.

Tax Benefits for Self-Occupied Properties

Previously, only one self-occupied property could be valued at Nil for tax purposes. However, under the new budget proposal, two self-occupied properties can now be considered as Nil for taxation. This will help homeowners reduce their tax liabilities.

Extension of Deadline for Updated Tax Returns

The time limit for filing updated income tax returns has been extended from 2 years to 4 years. This gives taxpayers more flexibility and time to correct their past tax filings.

TDS & TCS Rationalisation for the Middle Class

• The budget retains almost half of the existing tax provisions while introducing new personal income tax reforms.

• The tax deducted at source (TDS) and tax collected at source (TCS) system has been rationalized, reducing the number of rates and adjusting various thresholds.

• The threshold limit for TCS on Liberalized Remittance Scheme (LRS) remittances has been increased from Rs. 7 lakh to Rs. 10 lakh.

• The TDS threshold limit on rent has been increased to Rs. 6 lakh.

• The TCS on education loans up to Rs. 10 lakh from specified financial institutions has been removed.

Boost to Agriculture & Manufacturing

Agriculture Sector Initiatives

• The government has introduced the PM Dhandhanya Krishi Yojana to boost agricultural productivity, particularly in 100 low-yield districts.

• India is aiming for self-reliance in urea production and high-yield seed farming to increase rural employment.

• The Kisan Credit Card loan limit has been raised from Rs. 3 lakh to Rs. 5 lakh. This will help farmers invest in modern techniques and better-quality seeds, leading to improved yield and profitability.

• A six-year plan has been introduced for self-reliance in pulse production. The government will directly procure pulses through NAFED and NCCF, ensuring stable income for farmers.

Manufacturing Sector Growth

According to Deloitte India, the National Manufacturing Mission, with a strong focus on clean technology, will play a key role in expanding India’s manufacturing sector.

• The goal is to increase the manufacturing GDP contribution from 16% to over 20%.

• This will improve export competitiveness and strengthen the manufacturing value chain in emerging industries such as electric vehicles (EVs), batteries, and wind turbines.

Healthcare Sector Enhancements

Expansion of Daycare Cancer Centers

• The government has proposed setting up daycare cancer centers in all district hospitals.

• KPMG India has welcomed this initiative, stating that it will improve healthcare access for cancer patients and ensure better treatment facilities.

Customs & Trade Reforms

Customs Provisional Assessment Time Limit Set at 2 Years

• The time limit for customs provisional assessments has been fixed at 2 years. This will help streamline import-export processes and reduce uncertainty for businesses engaged in international trade.

Economic Growth and Fiscal Deficit

• India’s economic growth has slowed to a four-year low of 6.4%, raising concerns about the need for increased government spending and tax relief.

• The Economic Survey 2024-25 forecasts GDP growth between 6.3% and 6.8% for FY26.

• The fiscal deficit for FY25 is set at 4.8%, with a projection of 4.4% for FY26.

• The government aims to gradually reduce debt while maintaining fiscal discipline.

Key Tax Announcements

• A new income tax bill will be introduced next week with a “trust first, scrutinize later” approach.

• Basic customs duty (BCD) changes:

Exemptions for 36 life-saving drugs and 35 additional capital goods for EV manufacturing.
BCD on flat panel displays increased from 10% to 20%.
BCD on fish paste reduced from 30% to 5%.

• The government has proposed removing seven additional tariff rates, leaving only eight tariff slabs.

Social Welfare and Gig Economy

• E-Shram Portal: Identity cards and registration for gig workers to improve social security.

• PM Swanidhi Scheme Revamp: Higher loan limits and a Rs. 30,000 UPI-linked credit card for urban workers.

• Grameen Credit Score: Banks to maintain a credit score for self-help groups to enhance financial access.

• Women Empowerment:

New SC/ST Women Loan Scheme to provide five-year term loans to 5 lakh women.
Saksham Anganwadi & Poshan 2.0: Nutritional support for 8 crore children, 1 crore mothers, and 20 lakh adolescent girls.

Manufacturing and Business Reforms

• Toy Manufacturing: India to become a global hub through skill-building and innovation.

• Footwear & Leather Industry: Special scheme expected to generate 22 lakh jobs, Rs. 4 lakh crore revenue, and Rs. 1.1 lakh crore exports.

• Deeptech Fund of Funds: To support technology startups, with 10,000 fellowships for tech research at IITs and IISc.

• Jan Vishwas 2.0 Bill: Over 100 legal provisions to be decriminalized to promote ease of doing business.

• Bilateral Investment Treaty: To attract foreign investment with a model framework.

Banking and Finance Sector

• Insurance FDI: Foreign Direct Investment limit raised from 74% to 100%, provided the insurer invests the entire premium in India.

• New Fund of Funds (FoF): Rs. 10,000 crore investment to support startups.

• MSME Support:

Credit guarantee cover for MSMEs increased from Rs. 5 crore to Rs. 10 crore.
Investment and turnover limits enhanced to 2.5X and 2X, respectively.
MSMEs to receive support in tackling non-tariff barriers for exports.

• India Post to evolve into a major public logistics provider.

Infrastructure and Rural Development

• Urban Challenge Fund: Rs. 1 lakh crore fund for urban growth hubs.

• PPP Model Expansion: Ministries to prepare a three-year infrastructure plan under the Public-Private Partnership (PPP) mode.

• Jal Jeevan Mission extended with an enhanced budget, benefiting 15 crore households.

• Shipbuilding Policy: A Maritime Development Fund of Rs. 25,000 crore, with 49% government contribution.

• PM Gati Shakti Data to be made available to the private sector for logistics and planning.

Agriculture and Rural Economy

• Dhan Dhanya Krishi Yojana:

To be implemented in 100 districts, benefiting 1.7 crore farmers.
Aims to make agriculture more lucrative and reduce migration.

• Atmanirbharta Mission for Pulses: A six-year program for self-sufficiency in tur, urad, and masoor dal.

• Kisan Credit Card: Loan limit increased from Rs. 3 lakh to Rs. 5 lakh.

• Western Kosi Canal Project in Bihar to receive financial assistance.

• Makhana Board in Bihar: To promote processing and value addition.

• National Institute of Food Technology to be set up in Bihar to boost farmer income.

Education and Skill Development

• Medical Education:

10,000 new medical seats to be added.
200 cancer centers to be established in 2025-26.

• National Skilling Centres:

Five Centres of Excellence for global skill development.
6,500 additional seats in IITs established after 2015.
Rs. 500 crore for a Centre of Excellence for AI in Education.

• Atal Tinkering Labs:

50,000 labs to be set up in government schools over five years.
Broadband connectivity for all secondary schools.

Tourism and Transport

• Modified UDAN Scheme:

To connect 120 new destinations.
Expected to cater to 4 crore passengers over the next 10 years.
Greenfield airports planned for Bihar.

• Mudra Loans for Homestays: To support homestay businesses.

• Medical Tourism: ‘Heal in India’ initiative to be expanded with private sector participation.

• Development of 50 Tourist Destinations in partnership with state governments.

Energy and Sustainability

• 100GW Nuclear Energy Target by 2047:

Rs. 20,000 crore for research on Small Modular Reactors.
Rs. Additional borrowing of 0.5% of GSDP allowed for power sector reforms.

• Manufacturing Mission under Make in India to support solar PV cells, electrolysers, and grid-scale batteries.

• Cargo Screening & Customs Clearance:

Simplified process for ease of trade.
Bharat Trade Net to be established as digital public infrastructure.

Final Thoughts

Finance Minister Nirmala Sitharaman’s Union Budget 2025-26 aims to balance fiscal discipline while driving economic growth, infrastructure expansion, and social security initiatives. The budget is expected to strengthen MSMEs, improve financial inclusion, boost rural employment, and enhance India’s global competitiveness.

With a clear focus on tax reforms, ease of doing business, employment generation, and technological advancements, the government has set ambitious goals for inclusive economic development over the next five years. The success of these initiatives will depend on effective implementation and collaboration between central and state governments, industry stakeholders, and financial institutions.