The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman. Introduced several measures aimed at fostering economic growth, enhancing infrastructure, and empowering various sectors of society. The key highlights are categorized under relevant headings below.
Boosting Startups and MSMEs
- Increased Credit Guarantee Cover: The government will raise the credit guarantee cover for startups from ₹10 crore to ₹20 crore to improve access to credit.
- UPI-linked Credit Cards for Small Businesses: Improved bank loans and UPI-linked credit cards with a ₹30,000 cap will be part of the redesigned PM Swannidhi initiative.
- Higher MSME Investment and Turnover Thresholds: The government will increase the investment and turnover thresholds for all MSMEs to 2.5 and 2 times, respectively.
- New Startup Fund: The government will allocate an additional ₹10,000 crore to create a new startup fund.
Promoting Research and Development
- Fellowships for Technical Research: The government will grant 10,000 fellowships over the next five years for technical research at IITs and IISc.
- Center of Excellence in AI: The government will invest a total of ₹500 crores. To establish a center of excellence in Artificial Intelligence for education.
Enhancing Regional Connectivity
- Modified UDAN Scheme: The government will introduce a modified UDAN system to improve regional connectivity. Connecting 120 new destinations and aiming to transport 4 crore passengers over the next 10 years.
Supporting Key Sectors
- Focus Product Scheme: This initiative for the footwear and leather sectors is expected to generate 22 lakh jobs. ₹4 lakh crore in revenue, and over ₹1.1 lakh crore in exports.
Income Tax Reforms
- Increased Tax Exemption Limit: No income tax will be payable for individuals earning up to ₹12 lakh under the new income tax regime.
- Senior Citizen Benefits: The limit for tax deduction on interest for senior citizens will rise from ₹50,000 to ₹1 lakh.
- Higher TDS Limit on Rent: The government will increase the annual limit for TDS on rent. From ₹2.4 lakh to ₹6 lakh.
Infrastructure and Maritime Development
- Maritime Development Fund: The government will establish a new Maritime Development Fund. With a corpus of ₹25,000 crore to boost the maritime sector.
These initiatives reflect the government’s commitment to promoting innovation, supporting small businesses, and enhancing the quality of life for citizens. The focus on green infrastructure, research, and connectivity promises a robust foundation for sustainable economic growth under 2025-26 union budget.
