Finance Minister Nirmala Sitharaman presented the first full budget of Modi 3.0 on 1 February 2025. The Union Cabinet, led by PM Modi, approved the budget before its presentation in Parliament.
Sitharaman highlighted the budget’s focus on boosting private sector investments, uplifting household sentiment, and strengthening India’s middle class.
Union ministers Amit Shah, Rajnath Singh, Gajendra Singh Shekhawat, and Pralhad Joshi were seen heading to Parliament ahead of the presentation. Following a meeting with President Droupadi Murmu, Sitharaman received the traditional ‘dahi-cheeni’ before presenting the budget.
This is Nirmala Sitharaman’s eighth consecutive budget presentation, covering fiscal strategies, revenue, expenditure, tax reforms, and key announcements.
Union Budget 2025: Sitharaman Calls Next Five Years a Unique Opportunity for ‘Sabka Vikas’
Finance Minister Nirmala Sitharaman highlighted India as the fastest-growing major economy, with global confidence in its potential rising over the past 10 years. She called the next five years a unique opportunity to achieve ‘Sabka Vikas’ by promoting balanced growth across all regions.
Union Budget 2025: FM Sitharaman Highlights Key Targets of Budget 2025
FM Nirmala Sitharaman said the Budget aims to boost private sector investments, uplift household sentiment, and empower India’s growing middle class. The Budget focuses on 10 key areas: poor, youth, farmers, women, employment, MSMEs, investments, manufacturing, exports, and building rural prosperity and resilience.
Union Budget 2025: Finance Minister Says Budget Continues Efforts to Accelerate Growth
FM Nirmala Sitharaman stated that the Budget for FY26 continues efforts to accelerate growth and ensure inclusive development. This is the 14th consecutive Budget under the Modi government, including two interim Budgets presented before the 2019 and 2024 general elections.
Union Budget 2025: Finance Minister lists focus areas of Budget 2025
- Accelerate growth
- Secure inclusive development
- Invigorate private sector investment
- Uplift household spending, and
- Enhance spending power of India’s rising middle class
Union Budget 2025: Nirmala Sitharaman announces PM Dhan Dhanya Krishi Yojana
FM announced that the centre will launch the PM Dhan Dhanya Krishi Yojana in partnership with the states, which will cover 100 districts in the country, and more than 1.7 crore farmers will benefit from this scheme. The scheme aims at augmenting storage and crop diversification, facilitating long and short-term credit for farmers, and improving irrigation.
Union Budget 2025: 6-Year Mission for Aatmanirbharta in Pulses with Focus on ‘Tuver, Udad, and Masoor Dals’
FM Nirmala Sitharaman announced a 6-year mission for Aatmanirbharta in pulses, focusing on ‘tuver, udad, and masoor dals.’ A National Mission on high-yield seeds will also be launched.
A Makhana Board will be set up in Bihar to enhance the production, processing, and value addition of Makhana, with people engaged in FPOs. The board will offer guidance and trade-related technologies while also ensuring that farmers benefit from all relevant government schemes.
Additionally, Finance Minister Nirmala Sitharaman announced the establishment of a National Institute of Food Technology in Bihar to promote entrepreneurship, foster development, and enhance farmers’ incomes.
Union Budget 2025: Sitaraman announces Kisan Credit Card facilitates
Sitharaman said, “Kisan Credit Card facilitates short-term loans for 7.7 crore farmers, fishermen and dairy farmers. The loan limit under modified interest subvention scheme will be enhanced from Rs 3 lakh to Rs 5 lakh for loans taken through the KCC. For self-reliance in urea production, our govt had reopened three dormant urea plans in the eastern region to further augment urea supply – a plant with an annual capacity of 12.7 lakh metro tonnes will be set up at Namrup in Assam.”
Union Budget 2025: Budget 2025 to Focus on 6 Key Domains
FM Nirmala Sitharaman announced that the Budget will introduce reforms in six areas: taxation, urban development, mining, financial sector, power, and regulatory reforms.
Sitharaman emphasised that “Viksit Bharat” will focus on zero poverty, quality education, and affordable, high-quality healthcare. The Budget prioritises inclusive growth, ensuring that no one is left behind.
Union Budget 2025: Urea Plant to Be Established in Assam to Boost Urea Supply
A urea plant with an annual capacity of 12.7 lakh metric tons will be set up at Namrup, Assam. Three dormant urea plants in the Eastern region have been reopened. As part of a Rs 500 crore investment, the initiative will establish two new Nano Urea plants aimed at upgrading existing facilities and increasing production capacity.
Union Budget 2025: FM Sitharaman Highlights Budget Focus on Driving Growth and Inclusive Development
FM Nirmala Sitharaman stated that the Union Budget 2025-26 continues momentum towards economic growth and equitable development.
She highlighted that India is the fastest-growing economy among developing nations. The FM emphasised the next five years as a unique opportunity to stimulate growth.
Union Budget 2025: FM Nirmala Sitaraman increases credit guarantee cover for MSMEs
Finance Minister Nirmala Sitharaman, in her budget speech on Saturday, announced an increase in credit guarantee coverage under the CGTMSE scheme to improve access to formal credit for MSMEs and startups.
For micro and small enterprises, the coverage has been doubled from Rs 5 crore to Rs 10 crore, facilitating an additional Rs 1.5 lakh crore in credit over the next five years. For startups, the coverage has been raised from Rs 10 crore to Rs 20 crore, while the guarantee fee has been reduced to 1% for loans across 27 focus sectors.
Additionally, customized credit cards for micro-enterprises registered on the Udyam portal will be introduced with a Rs 5 lakh limit, with 10 lakh cards set to be issued in the first year.
Union Budget 2025: Sitharaman sets new funds for startups
During her speech, Finance Minister Nirmala Sitharaman announced a new Rs 10,000 crore Fund of Funds (FFS) for startups. She highlighted that the existing FFS has already helped generate a Rs 91,000 crore investment corpus for startups through Alternative Investment Funds (AIFs).
The first Fund of Funds for Startups (FFS) was launched by Prime Minister Narendra Modi on January 16, 2016, as part of the Startup India Action Plan. It was established with a Rs 10,000 crore corpus to support SEBI-registered AIFs, which in turn invest in startups.
Union Budget 2025: 75,000 New Undergraduate Medical Seats to Be Added in Next Five Years
FM Nirmala Sitharaman announced the setup of five national centres for skilling with global expertise to support “Make for India, Make for the world.”
The government will add 75,000 new UG medical seats in the next five years, building on a 130% increase in medical seats over the past 10 years. All district hospitals will have cancer day-care centres. 68 lakh street vendors have benefited from the PM Swanidhi scheme.
Union Budget 2025: FM announced development of 5 national Centres of Excellence
Since 2014, additional infrastructure has been developed for five IITs, enabling education for 6,500 more students. IIT Patna is set for expansion. Additionally, broadband connectivity will be extended to all secondary schools and Primary Health Centers (PHCs).
Union Budget 2025: National Institute of Food Technology, Entrepreneurship and Management to be set up in Bihar
The government will set up the National Institute of Food Technology, Entrepreneurship, and Management in Bihar to boost food processing in the Eastern region.
The institute will help raise farmers’ income by adding value to their produce and create skilling, entrepreneurship, and employment opportunities for youth.
Union Budget 2025: Govt to Introduce Rs 2 Crore Term Loan for 5 Lakh First-Time Women, SC, ST Entrepreneurs
The government will introduce a Rs 2-crore term loan scheme for 5 lakh first-time women, SC, and ST entrepreneurs.
A manufacturing mission will be launched to boost both SME and large industries. Measures to enhance productivity in labour-intensive sectors will be implemented. Credit guarantee cover will increase to Rs 20 crore, with the guarantee fee reduced to 1%.
Union Budget 2025: 36 life-saving drugs and medicines exempted from customs duty
FM Sitharaman said, “To provide relief to patients, especially those suffering from cancer and rare diseases, I propose 36 life-saving drugs in fully exempted custom duties.” Moreover, 37 more medicines and 13 new patient assistance programs have also been exempted from the basic customs duty.
Union Budget 2025: Focus on footwear and leather sectors
The Finance Minister announced a dedicated scheme for the footwear and leather industries to enhance domestic production and global competitiveness. Additionally, the government aims to position India as a leading hub for toy manufacturing worldwide.
While presenting the Union Budget 2025-26, Sitharaman also outlined plans to launch a mission focused on clean technology manufacturing, reaffirming India’s commitment to sustainability and innovation.
Union Budget 2025: Government to provide mudra loans to boost tourism
Finance Minister Nirmala Sitharaman announced that the government will work with states to develop the top 50 tourist destinations and extend Mudra loans to support homestays. To further boost tourism, she outlined plans to promote medical tourism in collaboration with the private sector, with a special focus on destinations associated with Lord Buddha’s life and legacy.
While presenting the Union Budget 2025-26, Sitharaman also stated that financial assistance would be provided for the Western Kosi Canal project, benefiting 50,000 hectares in Bihar’s Mithilanchal region.
Union Budget 2025: Tourism Sector Set for Major Boost
India is revamping its tourism sector to increase its GDP contribution from 5% to 9-12%. Key initiatives include better connectivity, expanding the UDAN scheme, upgrading tourist destinations, easing visa rules, and improving hygiene standards.
Union Budget 2025: FM announces UDAN scheme
Sitharaman announced, “Inspired by the success, a modified UDAN scheme will be launched to enhance regional connectivity to 120 new destinations and carry 4 crore additional passengers in the next 10 years. The scheme will also support helipads and smaller airports in hilly, aspirational and northeast regional districts.”
She added, “Greenfield airports will be facilitated in Bihar to meet the future needs of the state. These will be in addition to the expansion of the capacity of Patna airport and Brownfield airport in Bihta. Financial support will be provided for Western Kosi Canal ERM project in Mithilanchal, benefitting a large number of farmers in the Mithilanchal region of Bihar.”
Union Budget 2025: Fiscal Deficit Targets for FY25 and FY26 Set at 4.8% and 4.4% of GDP
Fiscal deficit for FY25 projected at 4.8% of GDP, with a target of 4.4% for FY26.
Net market borrowings for FY26 estimated at Rs 11.54 lakh crore. Government to set up a high-level committee for regulatory reforms in non-financial sectors. NaBFID to introduce partial credit enhancement for corporate bonds.
Union Budget 2025: Government to allocate Rs 1.5 lakh crore for interest-free loans to states
Rs 1.5 lakh crore allocated as interest-free loans to states for infrastructure development over 50 years.
A new asset monetisation initiative will raise Rs 10 lakh crore for new ventures from 2025-30. Rs 500 crore set aside for an AI Centre of Excellence in education. Increased budget allocation for Jal Jeevan Mission to ensure nationwide coverage. Incentives for urban reforms focusing on governance, land use, and planning.
Union Budget 2025: Rural Prosperity and Resilience Program to Strengthen Communities
The program aims to create opportunities in rural areas, making migration optional rather than necessary. It focuses on fostering enterprise development, employment, and financial independence for rural women. It will accelerate the creation of new jobs and businesses for young farmers and rural youth.
Union Budget 2025: FM proposes revamping bilateral investment treaty to attract more investments
FM Nirmala Sitharaman announced the revamp of the model Bilateral Investment Treaty (BIT) to attract more investments.
The Jan Vishwas Bill 2.0 will be introduced to decriminalize over 100 offences and improve ease of doing business. A revamped central KYC registry will be launched this year. The government will update outdated laws to match technological advancements.
Union Budget 2025: New Income-Tax Bill to Be Introduced for Reform
The finance minister announced that the new Income Tax Bill will be half the size of the current law. It will be clear, direct, and easy to understand, ensuring tax certainty and reducing litigation.
Union Budget 2025: Declares no income tax payable for income up to Rs 12 Lakh
Under the new tax regime announced by FM Nirmala Sitharaman
Rs 0-4 lakh — Nil
Rs 4-8 lakh — 5%
Rs 8-12 lakh — 10%
Rs 16-20 lakh — 20%
Rs 20-24 lakh — 25%
Above Rs 24 lakh — 30%
Tax rebate for those with income up to Rs 12 lakh
