The Key Takeaways from the Indian Financial Budget 2025

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On February 1st 2025, the Finance Minister of India, Mrs Nirmala Sitharaman presented the financial budget for the financial year 2024-2025. It was a well-sought-after budget this time as this was the first full-year budget of Modi 3.0. On 31st January, the minister submitted the Economic Survey for the year 2024-2025 with a large set of suggestions for the improvement of the economy. The Minister and the Government deemed the budget will put money in the hands of the people mainly the poor and the middle class. It was a budget representing the core values of GYAN (Garib, Yuva, Annadata, and Nari Shakti) as per PM Modi. India is expected to post its slowest growth in four years due to a sluggish manufacturing sector, persistent food inflation, stagnant job growth and weak urban consumption. The youth employment is also at 7.5%. 




Major Announcements from the Budget Speech 

  1. Fiscal Deficit target- 4.4%
  2. No income tax till 12LPA
  3. Under the theme of "Sabka Vikas".
  4. Expected 6.5% (6.3-6.8%) growth rate
Major Takeaways 
  • Shortest Budget Speech ever- 87 minutes. 
  • India's Forex reserves are 4th largest in the World.
  • The budget again was read from a digital tablet. 
  • Massive capital expenditure. 
  • Agriculture as the key engine of development. 
  • The Government will now launch a six-year “Mission for Aatmanirbharta in Pulses” with a special focus on Tur, Urad and Masoor.
  • A Makhana Board will be established in Bihar to improve the production, processing, value addition, and marketing of makhana.
  • Atmanirbharta in urea production.
  • Customized Credit Cards with a Rs 5 lakh limit for micro-enterprises registered on the Udyam portal will be introduced.
  • 50,000 Atal tinkering labs.
  • A Bharatiya Bhasha Pustak Scheme will be implemented to provide digital-form Indian language books for school and higher education.
Taxation


  • Remove seven tariff rates.
  • Not to levy more than one cess or surcharge. 
  • Relief on import of Drugs and Medicines.
Other Highlights
  • PM SVANidhi for street vendors 
  • Clean Tech Manufacturing
  • Saksham Anganwadi and Poshan 2.0 
  • Broadband Connectivity to Government Secondary Schools and PHCs 
  • Expansion of Capacity in IITs and Expansion of Medical Education 
  • Extension of Jal Jeevan Mission 
  • Medical Tourism and Heal in India
  • PM Research Fellowship
Criticisms 
Cruelest cuts in allocations to SC, ST, OBC and minority communities, as per the opposition. They cited the PM Anysuchit Jaati Abhyuday Yojana, the PM Young Achievers Scholarship for OBC, EBC, DNTs, Post Matric Scholarship for SCs, and the Programme for Development of STs, while making the statements. 'Govt's improvement of fiscal deficit came at a huge cost to economy,' alleges Congress leader and Rajya Sabha MP P Chidambaram. 

Analysis 
We can see that there is a massive push for employment-centric and growth-oriented incentives and programmes. Especially given that there is an election coming in Delhi and Bihar. Special mention of Bihar and relief for the middle class indicates the political push ahead of the crucial election season. Additionally, the middle class which was affected by taxation and was angry against the Modi government can now find relief. Overall this budget has touched all sectors of the economy and all the sections of people. The Modi government is trying to bring back the support for middle-class people and other lower classes without taking away its support from other groups. 


Credits- MoneyControl, NDTV, ThePrint, Hindustan Times, AP, The Indian Express, Bloomberg Quint.

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