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Budget 2025: Everything You Need To Know

Daily Equity - Budget 2025: Everything You Need To Know

Budget 2025 brings big reforms! No tax up to ₹12 lakh, ₹1.5 lakh crore Capex Boost, Fiscal Deficit Down, Middle-Class policies up—India’s growth story accelerates!

Union Finance Minister Nirmala Sitharaman presented her eighth consecutive Union Budget in the Lok Sabha on February 1, 2025. With a focus on fiscal consolidation, infrastructure development, and economic reforms, the Budget aims to sustain India’s growth trajectory while maintaining fiscal prudence. Here are the key takeaways and their implications for various sectors and stakeholders.

Revised Income Tax Slabs for FY25

One of the biggest highlights of Budget 2025 was the major revision in income tax slabs under the new tax regime. The Finance Minister announced zero tax on income up to ₹12 lakh, a move aimed at providing relief to the salaried class and increasing disposable income.
Here are the new tax slabs under the revised tax structure:

More details on income tax policies, exemptions, and deductions will be disclosed in the Income Tax Bill, which is scheduled to be presented next week.

Fiscal Deficit Targets

One of the most crucial aspects of Budget 2025 is the government’s commitment to fiscal consolidation. The fiscal deficit for FY25 has been set at 4.8%, while the estimated fiscal deficit for FY26 stands at 4.4%. This marks a significant reduction from previous years, reflecting the government’s intent to balance economic expansion with financial stability. By keeping the fiscal deficit under control, the government aims to improve investor confidence and sustain India’s long-term economic momentum.

Reforms Under Jan Vishwas Bill 2.0

The Finance Minister announced Jan Vishwas Bill 2.0, which aims to decriminalize over 100 provisions across various laws. This initiative is expected to foster a more business-friendly environment by reducing legal hurdles and improving ease of doing business. Additionally, an Investment-Friendly Index of States will be launched in 2025 to evaluate and rank states based on their business-friendly policies, encouraging states to compete in attracting investments.

Tariff Rationalization for Trade Enhancement

In a move to simplify trade policies and boost exports, the government has proposed the removal of seven tariff rates, leaving only eight in place after the latest revision. This streamlining of tariff structures is expected to reduce compliance burdens and enhance India’s competitiveness in global markets.

Also Read: Union Budget 2025: Know What Gets Cheaper, What Gets Costlier

Infrastructure and Capex Boost

A major highlight of Budget 2025 is the ₹1.5 lakh crore allocation for 50-year interest-free loans to states for capital expenditure and infrastructure projects. This funding aims to accelerate growth in transportation, urban infrastructure, and rural connectivity. The initiative aligns with the government’s long-term vision of Viksit Bharat @ 2047, positioning infrastructure as a key driver of economic expansion.

Also Read: Nil Tax on Two Homes Value: India’s Budget 2025 Simplifies Property Rules

Healthcare Reforms and Exemptions on Essential Drugs

Recognizing the importance of healthcare accessibility, FM Sitharaman announced that 36 life-saving drugs and medicines will be fully exempted from basic customs duty. This move is aimed at making critical healthcare solutions more affordable and improving public health outcomes. Furthermore, there may be an increase in allocations towards public healthcare infrastructure and AI-based diagnostics to enhance early disease detection.

Macroeconomic Outlook and Market Reactions

India Inc. widely welcomed the government’s measures, particularly in infrastructure, ease of doing business, and AI adoption. Experts suggest that capex-driven growth will have a multiplier effect on various sectors. The budget’s focus on capex, infrastructure, and energy transition is likely to benefit companies in these sectors.

Also Read: Union Budget 2025: Know What Gets Cheaper, What Gets Costlier

All-in-All

The Union Budget 2025 presents a roadmap for India’s economic future, balancing growth aspirations with fiscal discipline. With an emphasis on infrastructure, ease of doing business, healthcare, and clean energy, the government aims to strengthen the foundation for long-term economic expansion. While certain expectations, such as income tax reductions, were not addressed, the budget sets a strong precedent for sustained economic reforms and global competitiveness. Market participants and industries now look forward to the implementation phase, which will determine the effectiveness of these policy measures in driving India’s growth trajectory.

Budget 2025: Everything You Need To Know

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Budget 2025: Everything You Need To Know

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