The announcement of Budget 2025 has been made, and this time the budget focuses on the middle class, startups and futuristic technologies. FM Nirmala Sitharaman has made big announcements like tax relief, infrastructure boost, and new research funds for the private sector. Let’s understand how this budget is going to write the growth story of India.
- Big Tax Relief for Middle Class
The biggest announcement that will interest every salaried professional is to increase the limit of income tax rebate to ₹ 12 lakh. Meaning, if your taxable income is up to ₹ 12 lakh, then you will not have to pay any tax. This move will directly benefit the middle class and help in increasing their disposable income.
But if your income is even one rupee more than ₹12 lakh, then you will have to pay full tax, according to slabs:
₹12-16 lakh up to: 15%
₹16-20 lakh up to: 20%
₹20-24 lakh up to: 25%
₹24 lakh and above: 30%
- Bumper Support for Startups and Research
A fund of ₹20,000 crore has been allocated to support private sector-driven research and startups. A “fund of funds” will also be launched for deep-tech startups, which will boost innovation in futuristic sectors like AI, robotics, space tech.
This funding is quite important, because till now most of the R&D was limited to government institutions. Now the private sector can also develop new innovations and disruptive techs.
- SWAMIH Fund 2: Relief for Housing and Real Estate Sector
The government has announced SWAMIH Fund 2 to boost affordable housing. Its main focus will be to complete stressed housing projects, which will bring relief to middle-class families paying EMIs.
50,000 flats have already been delivered, and the target is to complete 40,000 more by 2025. Another ₹15,000 crore outlay has been set up so that one lakh new units can be completed quickly.
- Boost Infrastructure and Connectivity
Modified UDAN Scheme: 120 new destinations will be connected with air connectivity.
Greenfield Airports: New airports in Bihar and expansion of Patna Airport.
IIT Infrastructure Push: New campuses of IITs and facilities for 6500 new students will be developed.
Warehousing and Export Promotion: A digital infrastructure called BharatTradeNet will streamline international trade and exports.
- FDI in Insurance: Increased to 100%
Another big economic reform is that the FDI limit in the insurance sector has been increased from 74% to 100%. This will make it easier for global insurance companies to come and invest in India, which will boost the expansion and competition of the industry.
- Tourism and Cultural Development
₹20,000 crore has been allocated to promote tourism and spiritual tourism.
There is a plan to develop Buddha and Ramayana Circuit so that more tourists come from South East Asia.
Medical tourism and “Heal in India” initiative will also be pushed.
- Expansion of Healthcare and Education Sector
Target to increase 10,000 new medical seats (UG + PG).
50,000 Atal Tinkering Labs will be set up in government schools.
BharatNet Broadband Connectivity will be extended to every government secondary school and rural PHCs.
- Nuclear Energy Mission: 100GW Target by 2047
An ambitious plan has been announced to boost nuclear energy in India, which will also involve the participation of the private sector. A target has been set to generate 100GW nuclear power by 2047.
Will this Budget accelerate India’s growth?
Budget 2025 clearly focuses on the middle class and emerging businesses. Tax relief will increase people’s spending power, which will boost the economy. Startups and research funding will encourage new innovations, and infrastructure push will ensure long-term economic growth.
But, there are some grey areas in the budget—will the government be able to execute all these plans while keeping the fiscal deficit under control? Will the impact of tax slabs disrupt the demand-supply cycle? All this remains to be seen.
Now it remains to be seen how smoothly the implementation of these policies is at the ground level. What is your opinion about this budget? Will it be a real game-changer for the middle class and startups?