Budget 2025: Key Announcements on Tax, Farmers, Women & MSMEs

Union Finance Minister Nirmala Sitharaman presented her eighth budget on February 1, 2025, unveiling a range of measures aimed at benefiting various sectors of the economy. The budget introduced significant reforms in taxation, infrastructure, defence, and entrepreneurship, addressing concerns of the middle class, women, MSMEs, and startups.

One of the most discussed announcements was the exemption of income tax for earnings up to Rs 12 lakh, which is expected to provide substantial relief to taxpayers. The first phase of the budget session began on January 31 and will conclude on February 13, while the second phase will run from March 10 to April 4, 2025.

Here are the 10 major announcements from Budget 2025:

1. Rs 2-Crore Term Loan for Women Entrepreneurs

The government has introduced a new scheme offering Rs 2-crore term loans for five lakh first-time women entrepreneurs, including those from SC and ST communities, to encourage financial independence and economic growth.

2. Fund of Funds Scheme for Startups

A fresh round of the Fund of Funds scheme, with a corpus of Rs 10,000 crore, has been launched to support startup growth. Additionally, the eligibility period for tax benefits for startups has been extended by five years.

3. Income Tax Relief for Individuals

Salaried individuals and the middle class will benefit from a new income tax structure, which exempts income up to Rs 12 lakh from taxation. This move is expected to enhance disposable income and boost consumption.

4. Expansion of Regional Connectivity with UDAN

The popular UDAN (Ude Desh Ka Aam Naagrik) scheme has been modified to enhance air travel connectivity to 120 new destinations, with a target of carrying four crore passengers over the next decade.

5. Increased Defence Budget

The defence sector received a significant boost, with an allocation of Rs 6,81,210 crore for the fiscal year 2025-26, marking a rise from the previous year’s Rs 6,21,940 crore budget.

6. PM Dhan-Dhaanya Krishi Yojana for Farmers

Aimed at enhancing agricultural sustainability and profitability, the PM Dhan-Dhaanya Krishi Yojana will benefit 1.7 crore farmers by transforming select districts into agricultural hubs.

7. Credit Cards for MSMEs

To facilitate the growth of micro-enterprises, the government will roll out customized credit cards with a credit limit of Rs 5 lakh, allowing small businesses easier access to funds.

8. Term Loan of Rs 20 Crore for Export-Oriented MSMEs

A special term loan scheme will provide up to Rs 20 crore for well-performing, export-oriented MSMEs to scale their operations and compete in global markets.

9. SWAMIH Fund 2 for Affordable Housing

Under the SWAMIH (Special Window for Affordable and Mid-Income Housing) Fund, 50,000 homes in stalled housing projects have already been completed. An additional 40,000 units are set to be finished by the end of 2025.

10. India as a Global Toy Manufacturing Hub

The government has announced strategic measures to boost toy manufacturing under the ‘Make in India’ initiative, aiming to position India as a leading global toy production hub.

Budget 2025 has introduced significant reforms across various sectors, with a focus on economic growth, employment generation, and ease of doing business. The new tax exemptions, funding support for startups, and financial aid for MSMEs and women entrepreneurs are expected to have a far-reaching impact on the Indian economy. As the budget discussions unfold, further details on implementation and execution are eagerly awaited.