Union Budget 2025-26: Key Highlights and Sector-Wise Breakdown
By Yogesh Verma (CS/LLB) / 5 min read / Budget
1. Taxation
- Big
Relief for Middle Class:
- No
tax for annual income up to ₹4 lakh.
- 5%
tax for income between ₹4-8 lakh.
- 10%
tax for income between ₹8-12 lakh.
- 15%
tax for income between ₹12-16 lakh.
- 20%
tax for income between ₹16-20 lakh.
- 25%
tax for income between ₹20-24 lakh.
- 30%
tax for income above ₹24 lakh.
2. MSME & Startups
- ₹10,000
crore new fund for startups.
- ₹20
crore term loan for exporting MSMEs.
- Credit
card with a ₹5 lakh limit for micro-enterprises.
- Loan
cover for MSMEs increased from ₹5 crore to ₹10 crore.
- Leather
& Footwear industry will get focus
product scheme, creating 22 lakh jobs.
- A
new National Manufacturing Mission for MSMEs.
3. Energy Sector
- ₹20,000
crore investment in Nuclear Energy Mission.
- Private
sector partnership in nuclear energy expansion.
- Five
indigenous small reactors operational by 2033.
- ₹25,000
crore Ocean Development Fund for maritime
projects.
- Greenfield
airports planned in Bihar under the UDAN scheme.
4. Infrastructure & Urban Development
- ₹1.5
lakh crore aid to states for infrastructure
projects.
- Public-Private
Partnership (PPP) model to be boosted.
- Asset
monetization scheme for 2025-30.
- ₹1
lakh crore Urban Challenge Fund for city
development.
- Gati
Shakti Portal will provide real-time data for
private sector logistics.
- Expansion
of Patna and Bihta airports.
5. Education & Skill Development
- 50,000
Atal Tinkering Labs in government schools.
- Broadband
connectivity to village schools and primary
healthcare centers.
- 5
National Excellence Centers for skill
development.
- ₹500
crore for AI Excellence Centers in education.
- IIT
capacity expansion, including hostel upgrades at IIT Patna.
- 50,000
new research labs to boost innovation.
6. Medical & Healthcare
- ₹75,000
additional medical seats in the next 5
years.
- 10,000
additional medical seats this year.
- 200
new daycare cancer centers to be set up.
- All
district hospitals will get cancer treatment centers.
- Gig
workers to be covered under PM-JAY health insurance.
7. Export & International Trade
- India
TradeNet DPI platform to facilitate global trade.
- Extended
export deadlines for handicrafts from 6 months to
1 year.
- VAT
Blue leather and crust leather export duty removed.
- Frozen
fish paste & seafood BCD reduced to boost
marine exports.
- Startups’
incorporation period extended by 5 years.
8. Customs & Import-Export Policy
- Duty
exemptions on 36 medicines, including cancer
drugs.
- Import
duties removed on cobalt powder, lithium-ion batteries, and zinc waste.
- 10-20%
increase in duty on certain textile products
to support local manufacturers.
- LCD/LED
TV production to get tax relief.
- EV
& mobile battery manufacturing incentives.
- Shipbuilding
materials to remain duty-free for 10 years.
Conclusion
The Budget 2025-26 focuses on tax relief,
MSME growth, infrastructure boost, energy expansion, healthcare, and education.
The government's vision aims at economic stability, employment generation,
and technological advancement.
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