The Budget 2025 is so special that it feels like the middle class has received a Diwali gift all over again. Yes, when Finance Minister Nirmala Sitharaman announced during the Budget presentation that those earning up to ₹12 lakh annually would be tax-free, there was an eruption of applause not only in Parliament but also among the people watching from their homes or offices.
As is common before every budget, speculations were high, and various sectors had their suggestions. However, there had been no specific expectations for the middle class, as they had been neglected in the past few years. This created a sense of dissatisfaction.
But, ahead of the Budget, both President Droupadi Murmu and Prime Minister Narendra Modi had indicated relief for the middle class. PM Modi had even expressed his wishes to the middle class, urging the blessings of Goddess Lakshmi for the welfare of the people. After this, the middle class was hopeful, though they did not anticipate such a significant income tax relief.
No tax up to an income of ₹12.75 lakh
The government had already increased the standard deduction from ₹50,000 to ₹75,000 in the last year’s Budget under the new tax regime, meaning there would be no tax up to an income of ₹12.75 lakh. The TDS limit for senior citizens was also raised from ₹50,000 to ₹1 lakh, with an announcement to introduce a new Income Tax Bill soon.
Budget 2025: Reducing Cancer Drug Prices
In this year’s Budget, an important announcement was made regarding the reduction of prices for cancer and other critical disease drugs. The government has removed the customs duty on 36 life-saving drugs, meaning patients with serious illnesses will now get these medicines without any tax burden. Moreover, the government plans to establish 200 cancer daycare centers in district hospitals over the next three years. The ‘Heal in India’ initiative will also promote medical tourism, making visa processes easier, while increasing the availability of medical education seats.
Budget 2025: Empowering Youth Through Skill Development
Finance Minister Nirmala Sitharaman also focused on empowering youth with the creation of 5 National Skill Centers and 3 Centers of Excellence in AI for education. Additionally, gig workers (like those working with Ola, Swiggy, etc.) will now receive identification cards to establish their identity and work proof. They will also benefit from the e-Shram portal and the Jan Arogya Yojana for social security and healthcare.
Budget 2025: EV and Mobile Phone Battery Manufacturing to Get Cheaper
In a bid to boost the production of electric vehicle batteries, 35 additional goods were added to the list of exempted capital goods for EV battery manufacturing. This exemption from customs duties will make EV batteries cheaper, which can lower the prices of electric vehicles and encourage faster adoption. Similarly, mobile phone battery manufacturing will also benefit from a reduction in costs, with 28 additional goods being included in this list.
Budget 2025: Big Announcements for MSMEs and Other Sectors
For the MSME sector, the government increased the credit guarantee cover from ₹5 crore to ₹10 crore. Micro enterprises will now receive new credit cards worth ₹5 lakh. A new scheme to promote toy manufacturing under ‘Make in India’ will also be introduced. Additionally, the loan limit under the PM Swanidhi Scheme for street vendors has been increased to ₹30,000.
Budget 2025: Key Announcements for Farmers
Finance Minister Sitharaman also made some significant announcements for agriculture. The government is launching the ‘Dhan Dhan’ scheme across 100 districts, especially those with low agricultural production, to improve farmers’ livelihoods and increase output. Additionally, the farmer credit card limit will be increased from ₹3 lakh to ₹5 lakh. A six-year mission will be initiated to increase pulses production, and a new Makhana Board will be created to help farmers in Bihar.
Prime Minister Narendra Modi has termed the Budget as “historic,” emphasizing that it will fulfill the dreams of every Indian and take the ‘Developed India’ mission forward, driving growth, investment, and consumption to new heights.
Shashi Rai
