Union Budget 2025-26: Key Highlights

Here is the key highlights of the Union Budget for the financial year 2025-26, where finance minister Nirmala Sitharaman 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.“

Finance Minister says Budget aims at ‘transformative’ reforms in 6 areas including Taxation, financial sector, power sector, urban development, mining, regulatory reforms.
Five-year mission for cotton productivity to be launched. Cotton productivity mission to work towards rejuvinating India’s textile sector. Loan limit on modified interest subvention scheme to be raised to Rs 5 lakh from Rs 3 lakh for farmers, fishermen,” said Nirmala Sitharaman.
Credit guarantee cover to be enhanced for MSMEs to Rs 10 crore from Rs 5 crore. Investment and turnover limit for classification of all MSMEs will be enhanced to 2.5 and 2 times respectively. Government will introduce customised credit cards with Rs 5 lakh limit for registered micro enterprises, announced FM Nirmala Sitharaman.
Credit Guarantee Scheme for Startups increased to 20Cr.
New scheme to be launched for 5 lakh women, first time entrepreneurs for term loans for next 5 years.
Centres of Excellence in Al for education to be set up with total outlay of Rs 500 crore.
Nuclear energy mission for Viksit Bharat: 100 GW of nuclear energy.
Jal jeevan mission extended till 2028 to ensure 100 percent coverage. Since 2019, 80 percent coverage of rural population has been achieved.
State capex linked loans at 1.5 lakh crore for FY26.
Urban challenge fund to be set up of Rs 1 lakh crore for redevelopment of cities.
DAN has enabled 1.5 crore middle class people connecting 88 airports, with 619 routes. Modified UDAN to be launched to 120 new destinations.
Maritime development fund with corpus of Rs 25000 cr to be set up.
4 crore additional passengers, greenfield airports to be facilitated in Bihar.
Development of at least 100 GW nuclear capacity by 2047 is essential. Nuclear Energy Mission for R&D of small modular reactors with Rs 20,000 crore outlay to be set up.
New Income Tax bill to be introduced next week, Finance Minister Nirmala Sitharaman.
FDI limit for insurance sector to be RAISED FROM 74% to 100%.
Highlighted Exports as the fourth engine of growth for India. She also announced the creation of ‘Bharat Trade Net’, a digital public infrastructure initiative for international trade.
Jan Vishwas Bill 2.0 to be introduced to decriminalise over 100 provisions. Investment friendly index of States to be launched in 2025.
The fiscal deficit target for FY25 is set at 4.8%, with a further reduction planned for FY26 at 4.4%.
The revised capex for FY25 is Rs 10.18 crore, against the target pf Rs 11.1 lakh crore.
Propose to continue exemption on BCD (Basic Custom Duty) for manufacture of ships and its parts for 10 years.
Cobalt powder and waste, scrap of lithium-ion battery, Lead, Zinc and 12 more critical minerals to be exempted from Basic Customs Duty (BCD).
Proposing to remove TCS on remittances for education purposes if the remittance is funded through a loan taken from a specified financial institution.
Limit for tax deduction on interest for senior citizens being doubled from Rs 50K to Rs 1 lakh.
Threshold to collect TCS on remittances under RBI’s LRS is proposed to be increased from Rs 7 lakh to Rs 10 lakh.
TDS threshold limit for rent hiked to 6 lakh.
No More Income Tax Till Rs 12 lakh.
FY26 Capex At Rs 11.2 Lakh Crore The capital expenditure for the financial year 2025-2026 has been raised to Rs 11.2 lakh crore. In FY25, the target was Rs 11.11 lakh crore.