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On February 1, 2025, Finance Minister Nirmala Sitharaman presented the Union Budget 2025, outlining key allocations and policy measures across crucial sectors. With a focus on healthcare, defence, agriculture, maritime, and education, the Budget aims to enhance infrastructure, boost self-reliance, and foster long-term growth. Here’s what was announced across key sectors:
Healthcare: Strengthening accessibility and affordability
The healthcare sector received a total allocation of ₹98,311 crore, up from ₹89,287 crore in the previous fiscal year. The Budget prioritises expanding medical care and infrastructure.
• Ayushman Bharat expansion: The Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) has been allocated ₹4,200 crore to enhance health coverage for vulnerable populations.
• Cancer care expansion: The government will set up 200 daycare cancer centres in district hospitals over the next three years to improve treatment accessibility.
• Medical education: The Budget proposes 10,000 new medical seats next year, with 75,000 planned over five years to address the shortage of healthcare professionals.
• Medical tourism boost: The ‘Heal in India’ initiative will streamline visa processes for international patients, strengthening India’s position as a global medical hub.
• Support for gig workers: Health insurance under the PM Jan Arogya Yojana will now cover 10 million gig workers, ensuring better healthcare access for this workforce.
• Import duty reduction on medicines: 36 life-saving drugs have been exempted from Basic Customs Duty, while six others will see a reduced 5 per cent customs duty, making essential medicines more affordable.
Defence: Focus on modernisation and indigenous development
India’s defence sector received a total allocation of ₹6.81 trillion, up from ₹6.21 trillion in the previous year.
• Capital expenditure: ₹1.72 trillion (27.66 per cent of the total budget) is earmarked for equipment and infrastructure investments.
• Self-reliance drive: The government has set a target for 75 per cent of the capital budget to be used for domestic procurement, reinforcing the ‘Make in India’ initiative.
• Research and development: The R&D allocation will increase, supporting projects like the Advanced Medium Combat Aircraft (AMCA) and Project P75(I) (submarines).
• Defence reforms: 2025 is expected to see the establishment of integrated theatre commands and advancements in cyber and artificial intelligence (AI) capabilities.
• Procurement plans: Major acquisitions, including six submarines under Project P75(I), are planned to enhance India’s naval capabilities.
Agriculture: Enhancing productivity
The Ministry of Agriculture and Farmers Welfare received an allocation of ₹1.52 trillion, reinforcing the government’s commitment to agricultural development.
• PM Dhan Dhanya Krishi Yojana: Targeting 100 districts with low productivity, this initiative aims to benefit 1.7 crore farmers through crop diversification, irrigation improvements, and better post-harvest storage.
• Self-reliance in pulses: The government has set a goal to achieve self-sufficiency in pulse production within six years.
• Kisan Credit Card (KCC) expansion: The loan limit under KCC has been raised to ₹5 lakh, providing better financial access to farmers.
• Makhana Board for Bihar: A dedicated board will be set up to promote Makhana production and marketing.
• Cotton farmers’ support: A five-year mission will be launched to assist cotton farmers in increasing yield and income.
Shipping and maritime
The Budget 2025 introduced key initiatives to boost India’s maritime sector and shipbuilding industry.
• Maritime Development Fund: A ₹25,000 crore fund (49 per cent government contribution) will provide long-term financing for maritime projects.
• Shipbuilding policy overhaul: The Shipbuilding Financial Assistance Policy (SBFAP) has been revamped, extending customs duty exemptions on raw materials for 10 more years.
• Shipbreaking Credit Note Policy: A new credit note system will support ship recyclers based on the scrap value of vessels.
• Infrastructure status for vessels: Large vessels will be granted infrastructure status, easing financing through external commercial borrowings and insurance funds.
• Shipbuilding clusters: Plans to develop shipbuilding clusters aim to increase India’s share in the global market, currently at 0.06 per cent, with a vision to be among the top five shipbuilding nations by 2047.
Education: Expanding access and enhancing skill development
The education sector saw major investments aimed at boosting research, skill training, and accessibility.
• Investment in artificial intelligence: ₹500 crore has been allocated for three Centres of Excellence in AI, focusing on research and skilling.
• Expansion of IITs and medical colleges: An additional 6,500 seats will be introduced across five IITs, alongside 10,000 new undergraduate medical seats next year, contributing to a 75,000-seat increase over five years.
• Skill development initiatives: 50,000 Atal Tinkering Labs will be set up to foster hands-on learning and innovation.
• Focus on quality education: The government reaffirmed its commitment to achieving 100 per cent quality school education and ensuring all graduates have employable skills, in line with the National Education Policy (NEP) 2020.
