Union Budget 2025-26: Key Highlights Explained

The Union Budget 2025-26 focusses on agriculture, MSMEs, investment, exports, tax reduction, and social welfare

The Finance Minister has presented the Union Budget 2025-26, focusing on four key areas: agriculture, MSMEs (Micro, Small, and Medium Enterprises), investment, and exports. The theme of this year’s budget is Sabka Vikas, meaning development for all. Let’s take a closer look at the major announcements.

Support for Agriculture

Agriculture remains a top priority, with several new initiatives to help farmers:

• PM Dhan-Dhaanya Krishi Yojana: A new scheme benefiting 1.7 crore farmers across 100 low-productivity districts by improving irrigation and storage facilities.
• Atma Nirbharta in Pulses: A 6-year plan ensuring better prices for crops like Tur, Urad, and Masoor.
• Kisan Credit Card (KCC) expansion: The credit limit is now ₹5 lakh (up from ₹3 lakh), benefiting 7.7 crore farmers.
• Other initiatives include high-yielding seeds, cotton productivity improvements, and fisheries development.

Boosting MSMEs and Small Businesses

The budget introduces measures to support small businesses and entrepreneurs:

• New MSME classification: This will increase credit opportunities and support business growth.
• Micro Enterprise Credit Cards: Small businesses can get credit up to ₹5 lakh, helping 10 lakh entrepreneurs.
• Food Processing Support: A National Institute for Food Technology will be set up to boost the food industry and create more jobs.

Investments in Infrastructure and Development

Major investments are planned to modernize cities, improve water supply, and enhance education:

• Urban Challenge Fund: ₹1 lakh crore allocated for city redevelopment and sanitation.
• Jal Jeevan Mission: Aims to provide universal piped water by 2028, with an increased budget of ₹67,000 crore.
• Maritime Development Fund: ₹25,000 crore to strengthen shipbuilding and port infrastructure.
• Higher Education Expansion: Infrastructure for 6,500 more IIT students will be developed.

Promoting Exports and Trade

The government aims to boost exports and improve trade efficiency:

• Export Promotion Mission: New sector-wise targets to increase exports.
• BharatTradeNet: A digital platform to simplify international trade paperwork.
• Better Air Cargo Storage: Enhancing storage for high-value perishable exports.

Read more: Union Budget 2025-26: Mixed Reactions from the Gem and Jewellery Industry

Taxation Reforms

The budget introduces major tax reliefs for individuals:

• No Income Tax for incomes up to ₹12 lakh per year, benefiting many taxpayers.
• TDS limit for rent increased to ₹6 lakh, making compliance easier for landlords.

Social Welfare and Inclusion

To improve financial inclusion and social security, the budget introduces:

• UPI-linked Credit Cards for Street Vendors: Under PM SVANidhi Scheme, vendors can now get ₹30,000 credit.
• Identity Cards for Gig Workers: Ensuring social security benefits for workers in the gig economy

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