India’s budget 2025 unleashes mega tax cuts, infrastructure splurge, and a ₹2 crore boost for women entrepreneurs!
India’s Union Budget 2025-26 is making headlines—and for all the right reasons. This year’s budget is a masterclass in balancing fiscal discipline with transformative, growth‐oriented policies that benefit every segment of society. Whether you’re an aspiring entrepreneur, a manufacturing professional, or someone keen on overall economic well‑being, here’s a detailed breakdown of the budget’s key highlights, drawn from multiple authentic sources.
-
Bold tax reforms & fiscal discipline
- Middle class relief:
No income tax will be levied on earnings up to ₹12 lakh (₹12.75 lakh for salaried taxpayers with standard deductions), giving a substantial boost to household spending and savings. Progressive tax slabs will kick in above this level, ensuring high earners contribute more. - New Income Tax Bill:
A simplified, more transparent Income Tax Bill will be introduced next week—designed to reduce litigation and streamline compliance. - Fiscal Deficit Targets:
The government aims to bring down the fiscal deficit from 4.8% of GDP in the current fiscal to 4.4% in FY26, reflecting a commitment to sustainable public finances.
-
Mega Infrastructure & Investment Surge
- Record Capex:
Capital expenditure for FY25 has been revised to an eye-popping ₹10.18 lakh crore. This is set to fuel extensive urban and rural transformation, including the launch of a ₹1 lakh crore Urban Challenge Fund and 50-year interest-free loans of ₹1.5 lakh crore to states. - Sector-Specific Initiatives:
- A Maritime Development Fund with a corpus of ₹250 billion will support the marine sector.
- Enhanced regional air connectivity aims to add 120 new destinations over the next decade, with greenfield airport developments in Bihar.
-
Manufacturing, Industrial Growth & Women’s Empowerment
- National Manufacturing Mission:
To bolster the “Make in India” campaign, the budget introduces incentives for domestic production, including revamped credit guarantee schemes and an expanded fund-of-funds for startups, with a government contribution of ₹100 billion. - Women Entrepreneurs – A Game Changer:
In a landmark proposal, 5 lakh women entrepreneurs from SC and ST communities will be eligible for term loans of up to ₹2 crore. This targeted support aims to close the gender financing gap, helping women-led ventures scale rapidly and compete globally
-
Agricultural & Rural Development Initiatives
- Boosting Farm Output:
The government plans a six-year mission to increase pulses production and a five-year mission to boost cotton output. These efforts aim to stabilize food inflation and improve farmers’ incomes. - Rural Infrastructure Focus:
With increased rural spending, the budget supports better storage facilities, improved connectivity, and market access—ensuring that growth reaches the grassroots.
-
Healthcare Transformation & Social Welfare
- Health Sector Expansion:
The allocation for the Department of Health & Family Welfare has surged by 85% from 2017–18, now reaching astronomical levels. This supports:- The addition of 10,000 new medical seats across hospitals and colleges.
- The establishment of daycare cancer centres in all district hospitals over the next three years.
- Duty exemptions on 36 life-saving drugs and concessional rates for six crucial medicines.
- Nutritional Support Programs:
Cost norms for Saksham Anganwadi and Poshan 2.0 programs will be enhanced, ensuring better nutritional support for over 8 crore children, 1 crore pregnant and lactating women, and 20 lakh adolescent girls, particularly in aspirational districts and the northeast. - Promoting Medical Tourism:
In a move to position India as a global healthcare hub, the budget also promotes medical tourism through public–private partnerships, improving healthcare infrastructure and creating new job opportunities.
-
Customs, Tariff Rationalization & Financial Sector Reforms
- Streamlined Tariff Structure:
The government is set to remove several tariff rates, maintaining only eight rates—including a zero rate—to promote domestic manufacturing. Exemptions on items such as cobalt powder, lithium-ion battery waste, and critical minerals will reduce input costs for industries. - Boosting FDI & Regulatory Modernization:
The FDI limit in the insurance sector has been raised from 74% to 100%, while regulatory reforms (such as a revamped central KYC registry) aim to attract global investments and ease business operations.
-
Comprehensive Social & Welfare Measures
- Holistic Welfare Package:
Besides targeted support for women and the manufacturing sector, the budget rolls out an extensive social welfare package that includes enhanced benefits for pensioners, increased healthcare spending, and better support for the unemployed and those in the gig economy. - Gender Budget Growth:
Over the past decade, allocations for women-centric schemes have grown dramatically. From modest beginnings, the Gender Budget now accounts for 6.5% of the total Union Budget—reflecting a long-term commitment to women’s welfare and empowerment.
The Big Picture: A Blueprint for Inclusive Growth
Whether you’re driven by entrepreneurial ambitions, looking to climb the career ladder in manufacturing, or striving for overall economic empowerment, this budget is designed to unlock opportunities.
For our readers at girlswithwealth.com, the standout initiative remains the dedicated support for women entrepreneurs. With term loans of up to ₹2 crore available to 5 lakh women from underrepresented communities, this is your call to action—seize the opportunity, innovate, and lead the charge toward a prosperous future.
Stay tuned to girlswithwealth.com for more in-depth analyses, expert insights, and actionable strategies to leverage these transformative measures and build the wealth and future you deserve!
