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Report on the Union Budget 2025-26

Northeast Mint

Northeast Mint

— 2 min read
Report on the Union Budget 2025-26

The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, focuses on accelerating growth, securing inclusive development, boosting private sector investment, and empowering the middle class. The budget is structured around four economic engines:

  1. Agriculture
  2. MSMEs
  3. Investment
  4. Exports

Key themes include employment-led growth, investment in infrastructure, digital transformation, innovation, and sustainable energy development. The government also continues its focus on fiscal consolidation and tax simplification.

Key Highlights of the Budget

1. Agriculture as the 1st Engine

  • Prime Minister Dhan-Dhaanya Krishi Yojana to cover 100 districts for improving productivity and irrigation.
  • Mission for Aatmanirbharta in Pulses for self-sufficiency in Tur, Urad, and Masoor pulses.
  • Makhana Board in Bihar to boost production and value addition.
  • National Mission on High Yielding Seeds to promote climate-resilient seeds.
  • Cotton Productivity Mission to enhance yield and sustainability.

2. MSMEs as the 2nd Engine

  • Enhanced MSME classification criteria, increasing investment and turnover limits.
  • Credit Guarantee Scheme Expansion:
    • Micro & Small Enterprises: Credit limit raised from ₹5 Cr to ₹10 Cr.
    • Startups: Credit limit raised from ₹10 Cr to ₹20 Cr.
    • Exporter MSMEs: Term loans up to ₹20 Cr under guarantee cover.
  • Credit Cards for Micro Enterprises with a ₹5 lakh limit for small businesses.
  • Toy Manufacturing & Leather Industry Boost with focus on domestic production.
  • Clean Tech Manufacturing Support for solar PV cells, EV batteries, and wind turbines.

3. Investment as the 3rd Engine

  • Public Private Partnership (PPP) Expansion in infrastructure.
  • ₹1.5 Lakh Crore 50-Year Interest-Free Loans to States for capital expenditure.
  • ₹10 Lakh Crore Asset Monetization Plan 2025-30 to reinvest in new projects.
  • Power Sector Reforms & Urban Development incentives.
  • Nuclear Energy Mission with a target of 100 GW by 2047.
  • ₹25,000 Crore Maritime Development Fund to boost shipping and logistics.

4. Exports as the 4th Engine

  • Export Promotion Mission to help MSMEs tackle non-tariff barriers.
  • BharatTradeNet digital infrastructure for trade documentation.
  • Logistics and Air Cargo Infrastructure to improve global supply chain participation.

5. Fiscal and Taxation Reforms

  • Income Tax Slabs Revised:
    • No tax on income up to ₹12 lakh.
    • Simplified structure benefiting middle-class taxpayers.
  • FDI in Insurance Raised to 100%, but investments must stay within India.
  • Customs Duty Rationalization for various industries, including renewable energy and electronics.
  • TDS/TCS Reforms for ease of doing business.