Live Budget 2025: Union Budget News Highlights, Key benefits & Income Tax Reforms

Finance minister Nirmala Sitharaman presented the much-awaited Union Budget 2025 on Saturday, February 1, 2025, with a statement that “the budget continues efforts to accelerate growth.”

As the budget live time ticked at 11.00 am, the Hon’ble Finance Minister declared that this year’s budget focuses on the middle class, youth, poor, and women. 

 “Budget aims to invigorate private sector investments, uplift household sentiments, and bolster power of India’s rising middle class.”

Source: Times Of India

FM added, “In this budget, the proposed development measures span 10 broad areas, focusing on the poor, youth, farmers, and women.”

In addition to that, Finance Minister Nirmala Sitharaman stated that the budget will start changes in six areas: taxation, urban development, mining, financial sector, power, and regulatory reforms.

That said, let’s look at the highlights of the budget live news for FY25-26. 

Also read: Interim Union Budget 2024 Highlights: India’s Roadmap to 2025

Budget live: Union Budget 2025 Highlights 

The Finance Minister’s 2025 Budget presentation emphasised continuity in the government’s economic vision through five strategic priorities:

• Accelerating growth
• Inclusive Development
• Private Sector Investments
• Uplifting household sentiments
• Enhancing the spending power of India’s rising middle-class

6-year mission for Aatmanirbharta in Pulses

1.  

The government will now launch a six-year mission for Aatmanirbharta in Pulses with a special focus on ‘tuver, udad, and masoor dals. There will also be a national mission on high-yield seeds. Furthermore, the Makhana Board will be established to enhance Makhana’s value addition and production processes. Individuals will participate in FPOs.

New classification criteria for MSMEs

2.  

The government is taking significant steps to expand the MSME sector’s scope and improve access to finance. The investment and turnover limits for MSME classification will see substantial increases, with investment limits being raised 2.5 times and turnover limits being doubled. 

To enhance credit access, the budget introduces measures to strengthen credit guarantee coverage for MSMEs. Additionally, microenterprises will benefit from new customised credit cards designed specifically for their needs. These changes aim to boost the MSME sector by making it easier for more businesses to qualify as MSMEs and access institutional credit.

Viksit Bharat project

3.  

The Viksit Bharat initiative outlines a comprehensive vision for India’s development focusing on five key goals: complete poverty elimination, universal quality education, comprehensive healthcare access, full workforce skilling with meaningful employment, and 70% women’s participation in economic activities, alongside strengthening India’s position as a global food supplier.

AIF industry sees boost

4.  

The rapidly expanding AIF sector would benefit from the extra ₹10,000 crore in budgetary allocation, which will also attract more domestic institutional fund flows into the category.

Budget Emphasis For Bihar

5.  

The government will establish a National Institute of Food Technology, Entrepreneurship and Management in Bihar to boost food processing in the Eastern region. This institution aims to enhance farmers’ income through value addition and create skilling and employment opportunities for youth. Apart from that, a “Makhana Board” is to be established to assist farmers in cultivating makhana, the superfood.

Sitharaman has also announced plans to build a new brownfield airport in the state and expand the Patna airport, which will strengthen the state’s infrastructure.

₹2 Crore Loan Scheme for First-Time Women, SC, ST Entrepreneurs

6.  

The government will launch a Rs 2 crore term loan scheme benefiting 5 lakh first-time entrepreneurs from women, SC, and ST categories. The initiative includes a new manufacturing mission for SME and large industries, along with increased credit guarantee cover of Rs 20 crore at a reduced 1% guarantee fee. The plan also focuses on boosting productivity in labour-intensive sectors.

Boost in medical undergraduate and postgraduate seats

7.  

The union finance minister declared that 10,000 additional undergraduate and graduate medical seats will be added during the course of the upcoming year. 

FDI cap in the insurance industry increased from 74% to 100%

8.  

FM announces a significant reform: increasing the FDI cap in the insurance industry from 74% to 100%.

IITs will get infrastructure push

9.  

There would be an infrastructure push for IITs. Sitharaman declared that in order to support the study of an additional 6500 students, new infrastructure will be built in five IITs that were founded after 2014. 

New UDAN plan to connect 120 additional regional locations

10.  

A revamped UDAN project would be introduced to improve regional connectivity to 120 new locations and carry 4 crore more people in the next ten years, the FM said, inspired by the success. Additionally, the plan would help micro airports and helipads in mountainous, ambitious, and northeast regional regions.

No income tax payable upto Rs 12 lakh

11.  

A new tax slab is introduced that would significantly lower middle-class taxes and provide them with more money, which will increase household spending, savings, and investment. “Nil tax” slab up to Rs 12 lakh (the normal deduction of Rs 75,000 for salaried taxpayers is Rs 12.75 lakh).

Here’s what the new tax regime will look like in the Union Budget 2025 live updates.

• Upto Rs 4 lakh – 0%
• Rs 4-8 lakh – 5%
• Rs 8-12 lakh – 10%
• Rs 12-16 lakh – 15%
• Rs 16-20 lakh – 20%
• Rs 20-24 lakh – 25%
• Above Rs 24 lakh – 30%

Source: TOI

As the finance minister stated in her eighth consecutive budget address, “We see the next five years as a unique opportunity to stimulate growth.”