Union Budget 2025: Big boost for MSMEs and infrastructure—Key announcements across various sectors
PTC Web Desk: The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, has laid out a comprehensive roadmap for the nation’s development across several critical sectors. The Budget, reflecting the government's commitment to sustainable growth, employment generation, and infrastructure development, has outlined a slew of measures aimed at spurring economic activity, supporting farmers, expanding education, and strengthening industries.
Income Tax and Infrastructure Development
The Union Budget 2025 includes several key provisions for income tax and infrastructure development. A three-year Public-Private Partnership (PPP) project pipeline will be established with states receiving support under the Infrastructure Investment and Development Fund (IIPDF). This initiative aims to fuel growth in infrastructure across states by assisting with the financing of critical projects.
Furthermore, a Rs 1.5 lakh crore interest-free loan scheme has been announced to help state governments fund their infrastructure spending. The scheme will provide vital support to states in their bid to boost regional development and improve overall infrastructure.
A significant highlight of the Budget is the ambitious Rs 10 lakh crore Asset Monetisation Plan (2025-30), which will help fund new projects by unlocking the value of existing infrastructure. This plan is expected to improve India’s infrastructure ecosystem and create a more competitive and connected nation.
Agriculture and Farmer Welfare
The Budget 2025 also focuses heavily on agriculture and farmer welfare. Aimed at boosting productivity for India’s farmers, the PM Dhan Dhanya Krishi Yojana will cover 100 districts and benefit over 1.7 crore farmers. This initiative will focus on improving agricultural output and providing farmers with the necessary support and resources.
Additionally, a six-year pulses self-sufficiency mission will be launched to ensure India meets its growing demand for pulses. This mission, coupled with the establishment of a national high-yielding seeds initiative, will promote sustainable farming practices and increase agricultural productivity.
Support for horticulture development, the creation of a Makhana Board in Bihar, and enhanced agri-district development have been identified as key components to further strengthen the agricultural sector in the coming years.
Education and Skill Development
In the education sector, the Union Budget 2025 introduces the Bharatiya Bhasha Pustak Scheme, which aims to provide digital books in Indian languages for both school and higher education students. This initiative is designed to enhance subject comprehension among students, particularly in rural and regional areas, where access to English language textbooks has been a barrier.
In a move that will help equip Indian youth with industry-relevant skills, the government has announced the establishment of five National Centres of Excellence for Skilling. These centres will partner with global institutions to provide training in various sectors, in line with the “Make for India, Make for the World” initiative, which aims to position India as a global leader in skilled manpower.
Housing and Affordable Living
The Union Budget 2025 also addresses the housing needs of India’s urban and semi-urban population. The Special Window for Affordable and Mid-Income Housing initiative has been extended, with an additional 40,000 housing units set to be delivered by 2025. This initiative aims to alleviate the housing crisis in India’s cities and towns by providing affordable housing options for low and middle-income groups.
Tourism and Regional Connectivity
The government’s focus on regional connectivity through the tourism sector is another noteworthy aspect of the Union Budget. A revamped UDAN scheme will expand regional connectivity by adding 120 new destinations across India. This ambitious expansion will target 4 crore passengers over the next decade, making air travel more affordable and accessible for millions of people in underserved regions.
Support for MSMEs and Industrial Growth
The government has placed significant emphasis on boosting the growth of micro, small, and medium enterprises (MSMEs), especially in labour-intensive sectors. To facilitate this, the MSME credit guarantee cover has been doubled from Rs 5 crore to Rs 10 crore, unlocking Rs 1.5 lakh crore in credit over the next five years.
Additionally, the government has proposed an increase in investment and turnover limits for MSMEs, along with policy support aimed at fostering growth from small to large industries. These measures are designed to improve MSME productivity, create jobs, and strengthen India’s industrial base.
Defence and National Security
National security has also been given a prominent place in the Union Budget 2025, with the defence budget allocated at Rs 6.81 lakh crore, marking a 9.55% increase from the previous fiscal year. This substantial increase will bolster India’s defence capabilities and ensure that the country remains secure in a rapidly changing geopolitical landscape.
Healthcare and Patient Welfare
In a move to support patients with chronic illnesses, rare diseases, and cancer, the government has announced that 36 life-saving drugs will be fully exempt from Basic Customs Duty. Additionally, six medicines will attract a reduced 5% duty, while bulk drugs used in their manufacture will also receive duty exemptions.
Further, 37 more medicines and 13 new patient assistance programmes will be included under the existing duty-free scheme for the distribution of free medications. These provisions aim to make essential medicines more affordable and accessible to patients across India.
Employment and Labour-Intensive Sectors
The Union Budget 2025 includes several initiatives to promote employment in labour-intensive sectors. The Focus Product Scheme for Footwear & Leather, aimed at supporting 22 lakh jobs, is expected to boost employment opportunities in one of India’s most significant industrial sectors.
Furthermore, the establishment of the National Institute of Food Technology in Bihar will create new skilling and employment opportunities in food processing, benefiting youth in the region and boosting the country’s food industry.
Savings and Senior Citizens
To benefit senior citizens with old National Savings Scheme (NSS) accounts, the government has announced that withdrawals from these accounts made on or after August 29, 2024, will be exempted from tax. Additionally, National Pension System (NPS) Vatsalya accounts will be treated similarly to normal NPS accounts, subject to overall limits, ensuring better retirement security for senior citizens.
Foreign Investments and Market Reforms
The Union Budget 2025 also includes provisions aimed at boosting foreign direct investment (FDI). The FDI limit in the insurance sector will be increased from 74% to 100% for companies investing the entire premium in India. Furthermore, existing regulations will be reviewed and simplified to make the sector more attractive to foreign investors.
Additionally, the government is supporting Clean Tech manufacturing as part of its climate-friendly initiatives, focusing on solar photovoltaic cells, electric vehicle batteries, and wind turbines. This mission will encourage sustainable technology and promote domestic value addition in green industries.
Stock Market and Trade
While there was no major movement on Dalal Street following the budget announcement, both the Sensex and Nifty traded with marginal gains after the speech.
In trade and commerce, the government is set to launch BharatTradeNet (BTN), a digital platform designed to streamline trade documentation and financing. This platform will help integrate India’s domestic manufacturing into global supply chains and create new opportunities in Industry 4.0 by leveraging youth skills, particularly in the electronic equipment sector.
- With inputs from agencies
