Budget 2025
Budget 2025 Major announcements
Scheme for first time Entrepreneurs: For 5 lakh first-time entrepreneurs, including women, Scheduled Castes and Scheduled Tribes, a new scheme, to be launched, to provide term loans up to ₹ 2 crore during the next 5 years.
Measures for Labour Intensive Sectors
- Focus Product Scheme for Footwear & Leather Sectors: scheme is expected to facilitate employment for 22 lakh persons, generate turnover of ₹ 4 lakh crore and exports of over ₹ 1.1 lakh crore.
- Measures for the Toy Sector: To focus on development of clusters, skills, and a manufacturing ecosystem that will create high-quality, unique, innovative, and sustainable toys to represent the ‘Made in India’
- Support for Food Processing: Establishment of a National Institute of Food Technology in Bihar, enhanced income for the farmers and skilling, entrepreneurship and employment opportunities for the youth.
Significant enhancement of credit availability with guarantee cover
|
₹ in Crore |
Credit guarantee cover |
|
|
|
Current |
Revised |
|
MSEs |
5 |
10 |
|
Startups |
10 |
20 |
|
Exporter MSMEs |
For Term Loans Up To ` 20 Crore |
|
- The investment limit for micro enterprises has been increased to ₹2.5 crore (from ₹1 crore), and the turnover limit to ₹10 crore (from ₹5 crore).
- For small enterprises, the investment limit is now ₹25 crore (from ₹10 crore), and the turnover limit is ₹100 crore (from ₹50 crore).
- Medium enterprises can now have an investment of up to ₹125 crore (from ₹50 crore) and a turnover of up to ₹500 crore (from ₹250 crore).
Support to States for Infrastructure: With an outlay of ₹ 1.5 lakh crore, 50-year interest free loans to states for capital expenditure and incentives for reforms.
Asset Monetization Plan 2025-30: launched to plough back capital of ₹ 10 lakh crore in new projects.
Urban Challenge Fund: ₹ 1 lakh crore to implement the proposals for ‘Cities as Growth Hubs’, ‘Creative Redevelopment of Cities’ and ‘Water & Sanitation’
Commerce & Industry: The budget allocation for commerce & industry is Rs. 65,553 crores, which is more than 35% higher allocation from last budget to boost the industry sentiments.
Scientific Departments: There is major thrust on R&D in this budget. The government has allocated Rs. 55,679 crores, which is more than 70% of the last year’s budget. It is a major boost for MSMEs because they are more inclined to bring new technologies and ideas to transform the working.
Energy: Similarly, the Energy sector gets big with 20% higher allocation from the last year budget with a total outlay of Rs. 81,174 crores
Urban Development: The urban development is focused on the improvement of common citizens & gives a major flip on the employment generation. The government has allocated Rs. 96,777 crores, which is almost 18% higher than the last budget.
Agriculture and Allied Activities: The agriculture is major sector which creates enormous employment at rural level thus generates demands in the economy as a overall booster. Govt. has allocated 1,71,437 crores in this budget which is 13% higher than the last year budget.
Similarly The total outlays on defence, Health & allied sectors where this year allocation is higher than last year which is nothing to focus on spending for better amenities which gives ample scope for growth for SMEs.
The key aspects for takeaway:
There is no need to mention addition words that the thrust of Govt. is to create more demand in economy not only by enhancing capital expenditure through above stated measure but also reduced tax burden on masses at large resulting additional income for spending.
In a simple economic summation, more spending in infrastructure creates world class facility which also translates into higher employment opportunities to meet the working needs. Similarly higher disposable income in the hands of masses generates more demand for goods & services which further creates working opportunities.
It is also important to note that SMEs are the major contributors of economic activity in any developed or developing country & out of those SMEs which are proactive in planning the business needs on time are gain at most because they used to click most of the opportunities so it is high time to plan for next year diligently in all aspects of possible opportunities & the need of working capital to avail most of them
Experts’ Views On Budget 2025:
FT’s Observation: India announced tax breaks for the middle classes and measures to improve the ease of doing business as Narendra Modi’s government unveiled its first full-year budget since an economic slowdown.
Source: https://www.ft.com/content/1d76cc7f-0f84-4dbb-9c17-0ecd29eb6340
Reuter Says: India plans to cut personal income tax rates to boost middle-class spending power and seeks to increase private investment to strengthen growth in the 2025–26 budget.
Source: https://www.reuters.com/world/india/reactions-indias-2025-26-budget-2025-02-01/
Al Jazeera says: India’s budget gives tax relief to the middle class to boost spending and growth.
Standard & Poor (S&P) says: India’s fiscal roadmap: strong growth and stability despite tax cuts, says S&P Global.
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