Budget 2025-2026

Finance Minister Nirmala Sitharaman presented the Union Budget 2025-2026 on February 1, 2025, outlining a vision to drive economic growth, boost investments and support various sectors. A major announcement was income tax relief for the middle class, with the tax-free income threshold raised from Rs.7 lakh to Rs.12 lakh. This move aims to enhance disposable income, thereby encouraging higher spending and savings. Additionally, the budget introduced new incentives for startups and MSMEs, aimed at fostering entrepreneurship and job creation across the country.

The agriculture sector received significant focus, with a long-term strategy to improve crop production and reduce dependence on imports. A six-year initiative was announced to increase domestic pulse and cotton output, ensuring fair price support for farmers through government procurement. Furthermore, a National Seed Development Program was launched to introduce high-yield, climate-resistant crop varieties, addressing the challenges of shrinking farmland and climate change effects. These measures are expected to improve farmers' income and bolster food security.

To attract private sector investments and boost economic expansion, the government has proposed several business-friendly reforms. This includes the formation of a high-level committee to simplify regulations and the introduction of an Investment Friendliness Index to enhance India's business environment. These reforms aim to increase foreign direct investment (FDI) and create more employment opportunities, addressing concerns over the recent slowdown in GDP growth. The focus on ease of doing business aligns with India's long-term goal of becoming a global manufacturing and innovation hub.

A key highlight in the energy sector was the launch of the Nuclear Energy Mission, targeting 100 GW of nuclear power by 2047. This ambitious initiative underscores India's commitment to sustainable energy development and reducing carbon emissions. Overall, the 2025-26 budget presents a comprehensive roadmap for economic stability and growth, balancing fiscal responsibility with strategic investments in infrastructure, employment and sustainability. The government's approach aims to foster long-term prosperity while addressing immediate economic concerns.