Budget 2025: Key Announcements, Income Tax Changes & What It Means for You
The Union Budget 2025 has been announced with several initiatives focused on growth, employment, and relief for the middle class. From supporting new businesses to increasing spending on infrastructure and offering income tax benefits, this budget lays out the government’s plan to drive the economy forward in the coming year.
Scheme for First-Time Entrepreneurs
To encourage entrepreneurship, especially among women, Scheduled Castes, and Scheduled Tribes, a new scheme has been introduced. Under this, around 5 lakh first-time entrepreneurs will be able to avail term loans up to ₹2 crore over the next five years. This move is expected to open new doors for startups and small businesses across the country.
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Focus on Labour-Intensive Industries
The government has made significant announcements for sectors that generate large-scale employment:
- Footwear & Leather Industry will receive support to create 22 lakh jobs, generate ₹4 lakh crore in turnover, and drive exports worth ₹1.1 lakh crore.
- Toy Manufacturing will be boosted through new clusters and skill development programs, promoting high-quality and innovative toys under the ‘Made in India’ initiative.
- Food Processing Sector gets a big push with a National Institute of Food Technology planned in Bihar, aiming to increase farmer incomes and create jobs for the youth.
Budget 2025 Income Tax Relief
As part of the income tax budget 2025, the government has reduced the burden on the middle class to boost consumption. The goal is simple—put more money in people’s hands so that spending rises and the economy gets a boost.
According to news sources like Reuters and Al Jazeera, these tax changes are a major highlight of the 2025 budget, aiming to strengthen growth by enhancing the middle-class spending power.
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MSME Classification Revised in Budget 2025
The government has revised the classification norms for MSMEs
| Category | Investment Limit | Turnover Limit |
|---|---|---|
| Micro Enterprises | Up to ₹2.5 crore | Up to ₹10 crore |
| Small Enterprises | Up to ₹25 crore | Up to ₹100 crore |
| Medium Enterprises | Up to ₹125 crore | Up to ₹500 crore |
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This is a welcome move for expanding businesses seeking support post-budget 2025.
Infrastructure & Urban Development
Big allocations have been made to develop infrastructure and cities:
- ₹1.5 lakh crore in interest-free loans to states for capital expenditure.
- Launch of Asset Monetization Plan 2025–30, aiming to reinvest ₹10 lakh crore into new projects.
- ₹1 lakh crore earmarked for the Urban Challenge Fund to improve city infrastructure, sanitation, and growth hubs.
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Budget 2025 Highlights – Sector-Wise Allocation
| Sector | Allocation | Growth Over Last Budget |
|---|---|---|
| Commerce & Industry | ₹65,553 crore | 35% increase |
| Scientific Research | ₹55,679 crore | 70% increase |
| Energy Sector | ₹81,174 crore | 20% increase |
| Urban Development | ₹96,777 crore | 18% increase |
| Agriculture & Allied | ₹1,71,437 crore | 13% increase |
Each of these reflects the government’s intent to strengthen the economy through higher investment in key areas.
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Budget 2025 Expectations vs Action
Ahead of the announcement, there were high budget 2025 expectations around job creation, tax relief, and business support—and most of them have been addressed. Increased capital expenditure, support for MSMEs, and focus on sectors like agriculture, infrastructure, and R&D indicate that the government is investing heavily in future growth.
S&P Global remarked that the fiscal roadmap laid out in the India budget 2025 balances tax cuts with a strong vision for long-term stability.
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Live Budget 2025 Updates & Coverage
We followed the live budget 2025 announcements and have curated key takeaways for small business owners and individuals. For those wondering when is budget 2025, it was presented on 1st February 2025 during the budget session 2025 in Parliament.
How NKB Kredit Supports You Post-Budget 2025
At NKB Kredit, we specialize in helping SMEs get timely business funding through trusted NBFCs and banks. The opportunities created by the new budget 2025 can be best utilized if your business is financially ready. Whether it’s working capital or long-term funding, we’re here to help you plan and grow.
If you’re unsure how the budget 2025 tax deductions or schemes affect your business, fill out the form on this page or directly chat with our CEO, Naresh Bansal, for personalized guidance.
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We strive to serve SME businesses who are looking for funds for business. Adequate Funding is backbone of any organization which decides the failure or success of any business.
Please give us your brief information sought in the table & we will get back to you as soon as possible.
You can fill up this form or chat anytime directly with Naresh Bansal our CEO.
Frequently Asked Questions about Budget 2025
Budget 2025 focuses on income tax relief, MSME support, infrastructure investment, and job creation through sector-specific schemes.
The Union Budget 2025 was presented on 1st February 2025 during the Budget Session in Parliament.
MSMEs benefit from revised classification criteria, easier access to loans up to ₹2 crore, and special focus on sectors like food processing, leather, and manufacturing.
The government announced tax relief for the middle class by reducing income tax rates, aiming to boost household spending and overall economic demand.