India's finance minister, Nirmala Sitharaman, tabled the union budget for 2025 on Saturday. This highly-anticipated budget began with a ruckus in parliament, with the opposition staging a walkout. But Sitharaman began her speech, saying midway, 'Please listen fully and then react.' She also chuckled while announcing that personal tax would come later in her speech. And she did have an ace up her sleeve.
Personal tax slabs revised
In a major boost to the country's middle class, tax earners below Rs 12 lakh annually will now be exempt from paying any income tax. This increases the 'no income tax slab' by Rs 5 lakhs.
New tax slab:
Rs 0-4 lakh -- Nil
Rs 4-8 lakh -- 5%
Rs 8-12 lakh -- 10%
Rs 16-20 lakh -- 20%
Rs 20-24 lakh -- 25%
Above Rs 24 lakh -- 30%
Meanwhile, major tax relief has also been announced for seniors.
Coming to indirect taxes, the major focus is on securing critical minerals and life-saving medicines from customs tariffs. Tax exemptions for 36 life-saving medicines have been announced, and the total number of custom tariffs have been reduced. This comes as a major boost for tech companies relying on the use of precious metals and also people seeking foreign medicines.
Focus on Agriculture
Nirmala Sitharaman began her speech by listing the growth engines of the economy. And the first on the list was Agriculture. She announced a new scheme for low-productivity districts, highlighting how over 17 million farmers are set to benefit. The credit limit has also been extended to over 77 million farmers. Special focus is on boosting cotton productivity and empowering 'Makhana' farmers.
Make-in-India & Women-led development
The finance minister made a special reference to India's ambition of becoming a global innovation hub. Especially in the domestic footwear industry, she announced major support for the creation of new jobs. Boosting domestic toy production is also on the Agenda, with Sitharaman saying, 'India aims to be a global toy production hub.' Sitharaman highlighted advancements in women-led start-ups, with a major focus on job creation. She also announced a loan scheme for 500,000 women entrepreneurs.
Focus on AI & Innovation
As expected, Artificial intelligence became a major focus in this year's budget. Sitharaman announced the launch of the Centre for Excellence in AI to prepare the youth and ensure AI-related skill development at the national level. Innovation was a central theme, especially in developing medical prowess. With 'Heal-in-India' as one of the objectives, Sitharaman has allocated Rs 20000 crore for medical tourism. She also announced the Nuclear energy mission for 'Viksit Bharat.'