 "Finance Minister Nirmala Sitharaman")
Finance Minister Nirmala Sitharaman, in her Union Budget 2025 speech, announced a series of tax reforms, infrastructure investments, and incentives for emerging sectors. Bihar was also a key focus, with plans to establish a greenfield airport, a Makhana Board, and expand IIT Patna.
Tax reforms: Higher exemption, simpler system
A major takeaway from the budget is the increase in the income tax exemption limit to ₹12 lakh, marking a significant relief for taxpayers. She also announced reduced Tax Deducted at Source (TDS) thresholds and an extended timeline to update tax returns from two years to four years.
Sitharaman also announced the simplification of the income tax law, with a new Income Tax Bill set to be unveiled next week. These measures aim to streamline tax compliance and enhance ease of filing. Also Read: Budget 2025: Kisan Credit Card limit increased from Rs 3 to 5 lakh
Big push for Bihar
Ahead of the Bihar Assembly elections later this year, the Centre has announced several key initiatives for the state, where it shares power with its ally, Nitish Kumar’s JDU. Sitharaman revealed plans to establish a Makhana Board in Bihar to help farmers access central scheme benefits. Bihar will also see the development of greenfield airports as part of civil aviation expansion. Additionally, she announced the launch of a canal project in the Mithilanchal region and capacity expansion at IIT Patna.
FY25 capex revised to ₹10.18 trillion from ₹11.1 trillion
The government has revised its capital expenditure (capex) target for FY25 to ₹10.18 trillion, down from the previous ₹11.1 trillion. While this reduction may impact some infrastructure and development projects, the government maintains that key sectors will continue to receive support.
Gig workers recognised in Budget 2025
Recognising the rising influence of the gig economy, Sitharaman announced a social security scheme for gig workers. The government will issue identity cards and maintain a national registry of one crore gig workers, ensuring their inclusion in welfare initiatives. The move is expected to benefit workers engaged in app-based platforms such as ride-hailing, food delivery, and e-commerce logistics.
EV battery manufacturing boost
To promote domestic battery manufacturing, the government has announced zero Basic Customs Duty (BCD) on key capital goods required for electric vehicle (EV) battery production. Sitharaman has also proposed exempting 35 additional capital goods for EV battery manufacturing and 28 for mobile phone battery production. This move is expected to lower the cost of setting up lithium-ion battery plants in India, boosting the nascent industry.
Export promotion and digital trade infra
To strengthen exports, the government will set up an Export Promotion Mission, jointly led by the commerce and finance ministries. A new Bharat Trade Net (BTN) will serve as a unified platform for trade documentation and financing, aligning with global best practices. This initiative aims to streamline export procedures and provide easier access to credit for businesses.
Tourism boost
To boost tourism, the government will introduce visa-fee waivers for select tourists and develop 50 top destinations in collaboration with state governments. This initiative aims to increase foreign tourist arrivals and enhance infrastructure at major attractions.
Healthcare and pharma sector support
The budget provides major relief to the healthcare sector, with 36 life-saving drugs added to the list of fully duty-exempt medicines. This move aims to make essential medicines more affordable and accessible.
