Union Budget 2025 Updates: What's in Store for the Economy?

By siliconindia  |  Saturday, 01 February 2025, 09:36:57 AM IST

Union Budget 2025 LIVE Updates: What?s in Store for the Economy?
12:26:39 PM IST
"Big relief for taxpayers! Under the new tax regime, income up to Rs 12 lakh will now be tax-free, significantly reducing the financial burden on the middle class. This bold move enhances disposable income, encourages spending, and promotes economic growth. By simplifying taxation and easing compliance, the government reinforces its commitment to a taxpayer-friendly system. This reform not only benefits salaried individuals but also supports businesses and investments, driving overall prosperity. With a focus on financial empowerment and ease of living, this tax relief is a major step toward a more inclusive and growth-oriented economy", says Adhil Shetty, Bankbazaar.
12:23:07 PM IST
Decoding the Big Income Tax Boost
  • Person with annual income of Rs 18 lakh will get benefit of Rs 70,000 in tax
  • Income tax payers with annual income of Rs 12 lakh will get benefit of Rs 80,000
12:20:04 PM IST
Major Overhaul of Income Tax Slabs in New Regime!
Here is how the new tax regime will now look like:
  • Zero to Rs 4,00,000- No Tax
  • Rs 4,00,000 to Rs 8,00,000 - 5%
  • Rs 8,00,0001 to Rs 12,00,000 - 10%
  • Rs 12,00,001 to 16 lakh rupees - 15%
  • Rs 16,00,001 to 20 lakh rupees - 20%
  • Rs 20,00,001 to 24 lakh rupees - 25%
  • Above 24 lakh - 30%
12:14:01 PM IST
 No Income Tax 
 No income tax for salaried people on income of up to Rs 12,75,000.
12:12:05 PM IST
NSC Withdrawals Post-August 29, 2024 Tax-Free in Budget 2025
 "A number of senior and very senior citizens have very old National Savings Scheme (NSS) accounts. As interest is no longer payable on such accounts, I propose to exempt withdrawals made from NSS by individuals on or after 29th August, 2024".
12:08:54 PM IST
In her speech, FM said that the annual limit of Rs 2.40 lakh for TDS on rent is being increased to Rs 6 lakh. "This will reduce, this will reduce the number of transactions liable to TDS, thus benefiting small tax payers receiving small payments", she said.
12:06:51 PM IST
TDS Rent Exemption Limit Hiked in Budget 2025-26
According to FM Nirmala Sitharaman, "I propose to rationalize tax deductions at source (TDS) by reducing the number of rates and thresholds about which TDS is deductible. Further, threshold amounts for tax deduction will be increased for better clarity and uniformity. The limit for tax deduction on interest for senior citizens is being doubled from the present Rs 50,000 to Rs 1,00,000".
12:04:33 PM IST
Tax Payment Simplified
The new income tax bill is designed to be clear and direct in its language, ensuring simplicity and ease of understanding for both taxpayers and tax administrators. Its straightforward text aims to eliminate confusion, making it more accessible and user-friendly for all stakeholders involved.
12:01:22 PM IST
Critical Minerals support
  • The FM proposed full exemption of Basic Customs Duty (BCD) on cobalt powder and lithium-ion battery waste, scrap, and 12 other critical minerals.
  • This is aimed at securing the availability of these materials for manufacturing in India and creating job opportunities for the youth.
11:59:15 AM IST
Patient Assistance Programs
Patient assistance programs run by pharmaceutical companies will be fully exempt from Basic Customs Duty (BCD), provided the medicines are supplied free of cost to the patients. Additionally, 37 new medicines and 13 new patient assistance programs will be included in the exemption list.
11:58:33 AM IST,
Relief For Patients
  • To provide relief for cancer patients, those suffering from rare diseases, and chronic conditions, the government will add 36 life-saving drugs to the list of medicines fully exempt from basic customs duty.
  • Six life-saving medicines will be added to a list with a concessional customs duty of 5%.
  • Full exemption and concessional duty will apply to bulk drugs used for manufacturing these medicines.
11:57:06 AM IST
Tariff Rate Adjustments
  • Seven tariff rates will be removed, in addition to the seven rates removed in the 2023-24 Budget.
  • This will leave only eight remaining tariff rates, including a zero rate.
  • Duty incidents will be broadly maintained, except for a few items where they will be reduced marginally.
11:55:16 AM IST
Customs Tariff Structure Rationalization
The government aims to simplify and streamline the customs tariff structure, addressing duty inversion and promoting domestic manufacturing, value addition, and exports. The rationalisation is part of a comprehensive review of the customs rate structure announced in the July 2024 Budget.
11:52:05 AM IST
India's Fiscal Path
Finance Minister Nirmala Sitharaman stated that the government aims to maintain the fiscal deficit each year in a manner that ensures central government debt remains on a declining trajectory as a percentage of GDP. The roadmap for the next six years has been outlined in the FRBM statement. For 2024-25, the revised estimate for total receipts (excluding borrowings) stands at Rs 31.47 lakh crore, with net tax receipts at Rs 25.57 lakh crore. The revised estimate for total expenditure is Rs 47.16 lakh crore, including a capital expenditure of Rs 10.1 lakh crore. The fiscal deficit for the year is now pegged at 4.8% of GDP.
11:50:14 AM IST
Boosting Competitive Federalism
Finance Minister Nirmala Sitharaman announced that an Investment Friendliness Index for states will be launched in 2025 to promote competitive cooperative federalism. Under the Financial Stability and Development Council (FSDC), a mechanism will be established to assess the impact of existing financial regulations and subsidiary instructions. This initiative aims to enhance the responsiveness and growth of the financial sector. She also highlighted the Jan Vishwas Act 2023, which led to the decriminalization of over 1,080 legal provisions, fostering a more business-friendly regulatory environment.
11:48:38 AM IST
Bolstering the domestic electronic equipment industry
Finance Minister Nirmala Sitharaman emphasized the government's commitment to bolstering the domestic electronic equipment industry, creating opportunities for youth. A national framework will be developed to guide states in promoting Global Capability Centers (GCCs) in emerging Tier-2 cities, focusing on talent availability, infrastructure upgrades, bylaw reforms, and industry collaboration.
Additionally, the government will enhance infrastructure and warehousing for air cargo, particularly for high-value perishable horticultural produce. Cargo screening and customs protocols will be streamlined to improve efficiency. Sitharaman also highlighted that reforms have been the driving force behind the government's policies over the past decade.
11:45:15 AM IST
New Income Tax Bill Coming Next Week
Finance Minister Nirmala Sitharaman highlighted the government's decade-long efforts in implementing tax reforms to enhance taxpayer convenience. Key measures include faceless assessment, the taxpayer charter, and faster processing of returns, with nearly 99% of returns being based on self-assessment. Reaffirming the tax department's approach of 'trust first, scrutinize later', she emphasized the continued commitment to easing compliance. Additionally, she announced that a new income tax bill will be introduced next week, furthering the government's reform agenda.
11:40:50 AM IST
India's Plan to Become a Global Toy Hub
In her Union Budget 2025 speech, Finance Minister Nirmala Sitharaman announced measures to make India a hub for toys. "We will implement a scheme to build a national action plan for toys, focusing on the development of clusters, skills, and a manufacturing ecosystem. This will help create high-quality, unique, innovative, and sustainable toys that represent the 'Made in India' brand'", she said.
11:38:52 AM IST
A New UDAAN for Aspirational Indians
Modified UDAAN Scheme to be launched, including 120 new destinations, 4 crore additional passengers.
11:37:45 AM IST
Nuclear Energy Mission to Propel India's Clean Energy Transition
Budget 2025 Live Updates: The Finance Minister announced a Nuclear Energy Mission to drive India's transition towards clean energy, with a goal of developing at least 100 GW of nuclear power by 2047. To facilitate greater private sector participation, amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act will be introduced. Additionally, a dedicated research and development initiative for Small Modular Reactors (SMRs) will be launched with an outlay of ?20,000 crore. As part of this mission, at least five indigenously developed SMRs are expected to be operational by 2033.
11:35:31 AM IST
FM Gives Big Power Updates
The Finance Minister highlighted key power sector reforms aimed at strengthening electricity distribution and transmission. The government will incentivize states to undertake reforms in electricity distribution and enhance intrastate transmission capacity. These measures will improve the financial health and operational efficiency of power companies. To support states in implementing these reforms, an additional borrowing allowance of 0.5% of GSDP will be granted, contingent on their progress in this sector.
11:34:52 AM IST
Urban Challenge Fund to Transform Cities
The Finance Minister announced the establishment of a Rs 1 lakh crore Urban Challenge Fund to drive the transformation of cities into growth hubs, support creative redevelopment, and enhance water and sanitation infrastructure, as outlined in the July Budget. This fund will finance up to 25% of the cost of bankable projects, with a requirement that at least 50% of the funding comes from bonds, bank loans, or public-private partnerships (PPPs). An initial allocation of Rs 10,000 crore has been proposed for the fiscal year 2025-26 to kickstart the initiative.
11:33:56 AM IST
Daycare Cancer Centres in All District Hospitals 
The Finance Minister announced the establishment of daycare cancer centres in all district hospitals over the next three years to enhance cancer care accessibility. In FY 2025-26 alone, 200 centres will be set up. Additionally, the government is committed to strengthening urban livelihoods, with a continued focus on supporting the urban poor and vulnerable groups through various initiatives aimed at providing economic stability and employment opportunities.
11:30:51 AM IST
10,000 New Medical Seats to Boost Education
The Finance Minister highlighted the government's focus on expanding medical education, noting that over the past 10 years, nearly 1.1 lakh undergraduate and postgraduate medical seats have been added an increase of 130%. To further strengthen healthcare infrastructure, 10,000 additional seats will be introduced in medical colleges and hospitals in the coming year, as part of a broader plan to add 75,000 seats over the next five years.
11:28:52 AM IST
For the Curious Minds of India
Atal Tinkering Labs will be established in 50,000 government schools in the next five years to inspire curiosity, innovation, and scientific thinking among students. In addition, broadband connectivity will be provided to all government primary and secondary schools to enable access to digital learning resources.
11:26:20 AM IST
Third Engine of Growth - Investing in People
The Finance Minister highlighted investment as the third engine of growth, people, economy, and innovation. In this context, the government is focusing on Sashakt Anganwadi and Poshan 2.0, which is providing nutritional support to over 8 crore children, pregnant women, lactating mothers, and around 20 lakh adolescent girls in aspirational districts and the Northeast. Cost norms for these programs will also be increased.
11:24:38 AM IST
Food Tech Institute to Boost Bihar's Economy
The Finance Minister highlighted the government's commitment to supporting food processing as part of its focus on empowering the poor. A National Institute of Food Technology, Entrepreneurship, and Management will be established in Bihar, aimed at boosting food processing activities across the eastern region. This initiative will have two key outcomes: first, it will enhance farmers' incomes by adding value to their produce, and second, it will create skilling, entrepreneurship, and employment opportunities for the youth in the region.
11:22:37 AM IST
Boost for Footwear, Leather, and Toy Sectors with New Schemes
The Finance Minister announced that the government will implement specific policy and facilitation measures to boost the productivity, quality, and competitiveness of India's footwear and leather sector. A focused products scheme will be introduced to support design capacity, component manufacturing, and machinery required for producing non-leather quality footwear, in addition to supporting leather footwear and products. This scheme is expected to create employment for 22 lakh people, generate over Rs 400 crore, and achieve exports of over Rs 1.1 lakh crore. In addition, measures will be introduced for the toy sector, building on the National Action Plan for Toys. A new scheme will aim to establish India as a global hub for toys, focusing on developing clusters, skills, and a manufacturing ecosystem that will produce high-quality, innovative, and sustainable toys, representing the 'Made in India' brand.
11:20:43 AM IST
Government to Boost MSMEs with Increased Investment and Turnover Limits
Moving to MSMEs, the second engine of growth, the focus will be on the 5.7 crore MSMEs, which include over one crore registered businesses employing 7.5 crore people and contributing 36% to India’s manufacturing. These MSMEs are crucial in positioning India as a global manufacturing hub, responsible for 45% of the nation's exports. To boost their growth and efficiency, the government will enhance the investment and turnover limits for MSMEs, increasing them by 2.5 times and 2 times, respectively. This move is expected to empower MSMEs to scale up, innovate, and generate more employment opportunities for the youth.
11:18:28 AM IST
Makhana Board in Bihar to Boost Agricultural Growth
The Finance Minister highlighted the establishment of a Makhana Board in Bihar, calling it a special opportunity for the people of the state. The board aims to enhance the production, processing, value addition, and marketing of Makhana, offering significant growth potential for this traditional crop and boosting Bihar’s agricultural economy.
11:16:22 AM IST
KCC Loan Limit Increased to Boost Financial Support for Farmers
The Finance Minister announced that Kisan Credit Cards (KCC) will continue to facilitate short-term loans for 7.7 crore farmers, fishermen, and dairy farmers. Additionally, the loan limit under the modified interest subvention scheme will be increased from Rs 3,000 to Rs 5,000 for loans taken through the KCC, providing greater financial support for agricultural production.
11:14:11 AM IST
Vision for a Healthier India
The Finance Minister outlined a comprehensive program focusing on vegetables and fruits, recognizing the increasing awareness among the population regarding their nutritional needs. This shift signals a healthier society, with rising income levels contributing to greater consumption of vegetables, fruits, and other nutritious foods. The government hopes that through specific interventions that may focus on improving the availability and accessibility of these fundamental food items, better nutrition would improve health conditions for a larger section of the population.
11:13:07 AM IST
A 6-Year Mission Launched to Achieve Self-Reliance in Pulses
The Finance Minister announced that the government will start a 6-year mission for self-reliance in pulses, especially focusing on tur and masoor. Central agencies such as NAFED and NCCF will be established to procure these three pulses from farmers who register with them and sign agreements. This will be done over the next four years, providing support and assured procurement to farmers.
11:10:01 AM IST
Major Agricultural Announcement Benefits 1.7 Crore Farmers
The Finance Minister unveiled major proposals with agriculture at the forefront. Under the Prime Minister Krishi Yojana, a new agricultural district programme will be initiated along with the state governments based on the Aspirational District Programme. The focus will be on 100 districts with low productivity, moderate crop intensity, and below-average credit performance.
The programme will encourage diversification in agriculture through varied crops, safe and sustainable means of farming practices, proper storage of the crops after harvesting in Panchayat and block levels, and adequate irrigation system along with short-term and long-term credit flow. It would directly benefit around 1.7 crore farmers.
11:07:36 AM IST
Key Sectors Under FM’s Focus
Union Budget 2025 Live Updates: Taxation, Power, Urban Development, Mining, Financial Sector to Get Overhauling Reforms in Union Budget. The Budget will cover a number of essential sectors for which the government needs to boost growth, improve the infrastructure, uplift governance, and ensure sustainable growth in different industries.
11:05:28 AM IST,
Budget Aimed at Accelerating Growth, Says Nirmala Sitharaman
"Together, we aim to unlock India's potential under the visionary leadership of Prime Minister Modi", said the Finance Minister as she began her address. "Honourable Speaker, I present the Union Budget for 2025-26, which continues our efforts to accelerate growth", she added. Highlighting the focus of this budget, the FM emphasized, "This budget is dedicated to accelerating growth, driven by our aspirations for a 'Viksit Bharat.' Our economy remains the fastest growing among all major economies", she concluded.
11:01:26 AM IST
Prepare Yourself, Readers! The Honourable Finance Minister Has Arrived!
11:01:05 AM IST
A Common Man's Budget
During the cabinet meeting, Prime Minister Modi stated that the upcoming budget is prepared keeping in mind the common man. He further emphasized that it will address the aspirations of the poor, farmers, women, and youth, thereby reflecting the very core principles of GYAN (Garib, Yuva, Annadata, and Nari Shakti).
10:56:38 AM IST
Relief for the Common Man on the Horizon?
In the pre-session speech on Friday, Prime Minister Narendra Modi suggested new measures for the poor, middle class, and women, as he outlined the vision of his government ahead of the Union Budget presentation. In his speech, he invoked the goddess of wealth and prosperity, Lakshmi, seeking special blessings for the poor and middle class.
10:53:33 AM IST
India's Forex Reserves: 4th Largest in the World
India's foreign exchange reserves remain strong, covering 90% of external debt and almost 11 months of imports, as per the latest Economic Survey. The country continues to rank among the top four holders of foreign exchange reserves globally.
10:47:55 AM IST
India's Capex Challenges
The government's capital expenditure for FY25 is set at Rs 11.1 lakh crore, but delays in spending due to the Lok Sabha elections may lead to final figures falling short of expectations.
10:46:34 AM 
All eyes on fiscal deficit
The fiscal deficit for FY25 is estimated at 4.9% of GDP, with a target of reducing it to 4.5% by FY26. 
10:36:29 AM IST
Railway Stocks Soar on Hopes of Capital Expenditure Boost in Budget 2025
Railway stocks rose by as much as 7% on the hopes of a boost in capital expenditure.
Railway-linked companies' shares have risen up to 6.6% on the BSE, led by investor expectation of huge capital investment in the sector in the forthcoming Budget.
Titagarh Rail Systems led the gains, advancing 6.58% to Rs 1,087, followed by Rail Vikas Nigam Ltd (RVNL).
10:31:38 AM IST
Is a budget focused on the people, the poor, and the middle class on the horizon?
10:28:04 AM IST
Cabinet approves Budget 2025
10:26:21 AM IST
Ahead of the presentation of Budget 2025, a Union Cabinet meeting has commenced in Parliament.
10:20:50 AM IST
Decoding the Budget Tradition: The Origins of the Budget Briefcase
The term 'Budget' originates from the French word 'bougette', meaning a leather briefcase. The tradition of using a 'budget case' started in the 18th century when the Chancellor of the Exchequer, the UK's budget head, was tasked with 'opening the budget' while presenting the annual financial report. In 1860, British budget chief William E. Gladstone carried his documents in a red suitcase, featuring the Queen’s gold monogram. The briefcase became essential as Gladstone's speeches were lengthy, requiring a case to hold all his speech papers.
10:15:06 AM IST
Breaking the Budget Tradition: A Shift in Presentation Timing
The Union Budget 2025 marks a break from a long-standing colonial tradition of Budget presentations. This shift occurred during the Atal Bihari Vajpayee government, when Finance Minister Yashwant Sinha introduced the Budget at 11 am, instead of the customary 5 pm. Since then, all successive governments have continued this practice of presenting the Budget at 11 am.
10:05:04 AM IST
India's housing hustle
The Economic Survey reported that there were 1.18 crore approved houses under the Pradhan Mantri Awas Yojana – Urban (PMAY-U), which was started in 2015 to provide permanent housing in urban areas. In September 2024, the government announced PMAY-U 2.0 with the goal of helping one crore more households.
09:58:46 AM IST
Nirmala Sitharaman reaches Parliament
Union Finance Minister Nirmala Sitharaman has reached Parliament after her meeting with President Droupadi Murmu at Rashtrapati Bhavan. She is going to address the House and present the Union Budget shortly.
09:55:45 AM IST
A look back at the 'budget and briefcase' tradition
India's first Finance Minister, RK Shanmukham Chetty, presented the first Budget in 1947, carrying a leather portfolio. In the 1950s, TT Krishnamachari opted for a file bag. Jawaharlal Nehru was seen with a black briefcase, while Manmohan Singh, who unveiled the key 1991 economic liberalisation proposals, also carried a black bag. Pranab Mukherjee was known for his red briefcase, a replica of the famous Gladstone case of Britain. The last Finance Minister to carry a briefcase was Piyush Goyal, who presented the interim Budget in February 2019, and he had gone for a red one for the event.
09:52:28 AM IST
Ease of Doing Business 2.0
The Economic Survey has called for radical reforms in the areas of land, labour, building regulations, utilities, and public service delivery. The report has called for state-led Ease of Doing Business 2.0 by tackling the main bottlenecks in business.
09:42:10 AM IST
Sitharaman meets President Murmu
Finance Minister Nirmala Sitharaman and MoS Finance Pankaj Chaudhary met with President Droupadi Murmu at the Rashtrapati Bhavan ahead of the Budget presentation.
09:41:09 AM IST
India's vision for 2030: 7.85 million jobs a year, 100% literacy, and future-ready infrastructure
India has the goal of adding 7.85 million non-farm jobs every year between 2030 and 2032. It is also looking to increase the literacy rate up to 100%, quality education institutions, and high-quality infrastructure ready for the future at an accelerated rate.
09:36:41 AM IST
8% Growth Rate for 20 Years Will Keep India Afloat
As the Economic Survey claims, it would take an 8% GDP growth rate over two decades for India to be a developed nation by 2047. It has asked for land and labor reforms, pushing the investment rate to 35% of GDP, making the manufacturing sector shine, and emerging sectors such as AI, robotics, and biotechnology shine in order to meet this mark.
09:34:08 AM IST
Sitharaman Pays Tribute to Madhubani Art
Union Finance Minister Nirmala Sitharaman is wearing a saree as a tribute to Madhubani Art and Padma Shri awardee Dulari Devi's craftsmanship. While she met at the Mithila Art Institute in Madhubani, Dulari Devi, who was awarded Padma Shri in 2021, spoke on the art form and asked Sitharaman to wear it on the day of Budget presentation.
09:26:11 AM IST
Budget Copies Reach Parliament
Copies of the Union Budget 2025 have reached Parliament as Finance Minister Nirmala Sitharaman prepares to present her 8th Union Budget for the fiscal year 2025-26 in the Lok Sabha today.
09:23:24 AM IST
Expectations for Cheaper Essentials, More Jobs, and Tax Relief
Expectations for the Policy Measures: Before Union Budget 2025-26, everybody is hopeful about policy measures in the reduction of prices of basic household commodities. The youth hopes for employment generating initiatives and salaried classes for possible relief in income tax.
Good morning, readers! Today marks a crucial day as Finance Minister Nirmala Sitharaman gears up to present the first full Budget of Prime Minister Narendra Modi’s third term. Expectations are soaring, with the middle class eagerly awaiting possible tax relief and economic reforms. With the government’s focus on growth, infrastructure, and fiscal consolidation, all eyes are on the key announcements that could shape India’s financial future.
PM Modi, during his pre-budget speech, suggested new initiatives towards the empowerment of the poor, middle class, and women as part of the financial roadmap for the future. The fiscal deficit for FY 2025 has been estimated to be 4.9% of GDP. The long-term target is 4.5% by FY 2026. Capital expenditure has been proposed at a hefty Rs 11.1 lakh crore, with increased investment in infrastructure and development works.
The Budget is also likely to bring in new disinvestment and asset monetization strategies, which may surpass the Rs 50,000 crore target of FY 2025. Tax revenue collections have been robust, but GST growth is expected to decelerate from last year's 11% increase. The Economic Survey predicts India's GDP growth for 2025-26 in the range of 6.3% to 6.8%, but this fiscal year may witness a marginal dip to 6.4%, which will be the lowest in four years.
India's stock markets have remained resilient despite global uncertainties, touching record highs even amid election-driven volatility. With consumer credit on the rise and domestic savings increasingly financialized, today's Budget will be a defining moment for India's economic trajectory. Stay tuned for insights on key reforms and fiscal policies that will shape the nation's future!

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