Budget 2025 Key Announcements List: Highlights, Income Tax Slabs, etc. The modification of income tax bands, which provides significant relief to taxpayers and increases disposable income, is the most important lesson from Budget 2025. This lays the groundwork for inclusive economic growth, as do targeted reforms in infrastructure, MSMEs, startups, healthcare, and agriculture.
Budget 2025 Key Announcements List
Here is the list of all major key announcements of budget 2025:
| Sector | Key Announcements |
|---|---|
| Income Tax |
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| Agriculture |
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| Healthcare |
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| Education |
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| MSMEs | Customized credit cards with ₹5 lakh limit, term loans up to ₹20 crore. |
| Electric Vehicles | Exemptions on customs duties for EV battery manufacturing. |
| Gig Economy | ID cards for 1 crore gig workers, social security benefits. |
| Tourism | Development of the top 50 tourism destinations. |
| Housing | SWAMIH Fund to complete 40,000 housing units. |
| Customs Duty | Exemptions on essential minerals like cobalt powder and lithium-ion battery waste. |
| Social Welfare | Social welfare surcharge waived on 82 tariff lines. |
| Technology | New Centre of Excellence in Artificial Intelligence (AI). |
| Rural Development | Rural prosperity and resilience program. |
| Employment | Modified the ‘UDAN’ scheme to enhance regional connectivity. |
| Exports | Promoting exports through various schemes. |
| Energy | Securing energy supplies. |
| Defence | Defense modernization and cybersecurity. |
| Space | Focus on space exploration. |
| Fiscal Deficit | Fiscal deficit target set at 4.4% of GDP. |
| Capital Expenditure | ₹11.21 trillion allocated for capital expenditure. |
| Gross Borrowing | Gross borrowing target increased to ₹14.82 trillion. |
- Fiscal Deficit Target:Â FY25: 4.8% | FY26: 4.4%
New Income Tax Slabs:
- ₹0 – ₹4 lakh : No tax
- ₹4 lakh – ₹8 lakh : 5%
- ₹8 lakh – ₹12 lakh : 10%
- ₹12 lakh – ₹16 lakh : 15%
- ₹16 lakh – ₹20 lakh : 20%
- ₹20 lakh – ₹24 lakh : 25%
- Above ₹24 lakh : 30%
Agriculture and Rural Development
- Dhan Dhanya Krishi Yojna: A scheme in collaboration with states to improve farm productivity in 100 low-productivity districts, benefiting 1.7 crore farmers.
- Makhana Board in Bihar: A new initiative to support Makhana farmers in Bihar, focusing on training and skill development.
- Cotton Productivity Mission: A 5-year mission to enhance cotton production, specifically benefiting the textile sector.
- Kisan Credit Card Limit: The credit limit under KCC is raised from ₹3 lakh to ₹5 lakh.
MSMEs & Manufacturing
- MSMEs account for 45% of India’s exports; the government aims to support 7.5 crore MSME jobs.
- National Manufacturing Mission to strengthen small, mid, and large-scale industries.
- A new initiative to make India the global hub for toys.
- Increase in credit guarantee cover for MSMEs to ease access to finance.
- New policies aimed to boost domestic production of non-leather footwear & support to the leather segment.
Aviation & Tourism
- The Udaan Connectivity Scheme aims to expand air travel by adding 120 new destinations.
- 4 crore additional passengers are expected over the next 10 years.
Financial Sector & Insurance
- The FDI limit in insurance was raised from 74% to 100%.
- ₹10,000 crore AIF Fund of Funds to support startup investments.
Power & Renewable Energy
- Import duty exemption on capital equipment used in lithium-ion battery manufacturing.
- Customs duty scrapped on cobalt, lithium, lead, and zinc waste, supporting metal recycling.
Healthcare & Medical Tourism
- Heal in India initiative to promote medical tourism.
- Streamlined visa norms for foreign medical patients.
- Exemption of customs duty on 36 life-saving drugs for cancer and rare diseases.
Customs & Manufacturing Reforms
- Customs Duty on TV Components:
- Basic customs duty on flat-panel displays was raised from 10% to 15%.
- Duty on open cells used in TV manufacturing was reduced to 5%.
