India Union Budget 2025-26 - As it happened

Importing drugs and medicines will become more affordable as the government has announced a series of measures aimed at reducing costs for life-saving treatments. 36 life-saving drugs and medicines will be added to the list of items fully exempt from Basic Customs Duty.

Additionally, 37 more medicines, along with 13 new patient assistance programs, will also be fully exempted from Basic Customs Duty, provided they are supplied free of cost to patients. These steps are designed to make essential medicines more accessible and support the healthcare needs of the population.

"I propose to introduce the New Income Tax Bill next week," says FM Nirmala Sitharaman in Parliament

• 20 new domestic airports in the next decade
• Udaan scheme for regional connectivity boost

• Bharat Trade Net for unified trade documentation
• Export promotion mission to drive international growth

• Rs 20,000 crore to boost medical tourism
• India set to become global medical tourism hub

• Centre for Excellence in AI launched
• Rs 25,000 crore for maritime sector development
• Global trade centres to be established in tier-2 cities

• Loan scheme for 500,000 women entrepreneurs
• 220,000 jobs through domestic footwear initiative
• Focus on women-led job creation and empowerment

• 17 million farmers benefit under new schemes
• New PM yojana for low-productivity districts
• Rs 5 Lakh credit limit for 77 million farmers
• Focus on cotton productivity, makhana support

• No income tax for earners up to ₹12 lakh
• ₹50,000 tax relief for ₹12 lakh income earners
• Simplified new tax slabs for easier compliance
• TDS for senior citizens doubled, TCS removed
• Tax-exemption for 36 life-saving medicines

Adhil Shetty, CEO of Bankbazaar.com - "In a significant move announced on February 1, Finance Minister Nirmala Sitharaman relaxed the conditions for tax relief on self-occupied properties in the 2025 Union Budget. Taxpayers can now claim tax benefits for two self-occupied houses, a major change from the previous rule that allowed relief for only one property. This reform significantly eases the tax burden for individuals who own and live in multiple properties, offering financial flexibility and promoting homeownership. By acknowledging the diverse housing needs of families, this decision not only provides greater tax relief but also encourages real estate investment. The move aligns with the government’s broader focus on financial empowerment and ease of living, strengthening the middle class while simplifying the tax structure."

Under the new tax regime, the government has introduced significant changes to benefit taxpayers, especially the middle class. One of the key highlights is the introduction of a "nil tax" slab for income up to ₹12 lakh, meaning individuals with income up to this threshold will pay no income tax. For salaried taxpayers, this limit increases to ₹12.75 lakh due to a standard deduction of ₹75,000.

The revised slabs and rates aim to substantially reduce the tax burden for the middle class, leaving more money in their hands to encourage increased household consumption, savings, and investment. These changes are designed to provide substantial relief to taxpayers and support economic growth.

Finance Minister Nirmala Sitharaman says, " I am now happy to announce that there will be no income tax up to an income of Rs 12 lakhs."

The government has proposed several changes to rationalise the Tax Deduction at Source (TDS) and Tax Collection at Source (TCS) provisions. The limit for tax deduction on interest income for senior citizens will be doubled from ₹50,000 to ₹1 lakh, providing them with greater tax relief.

Additionally, the annual limit for TDS on rent payments will be increased from ₹2.40 lakh to ₹6 lakh, easing the tax burden for individuals making rent payments.

The threshold for collecting tax at source on remittances under the RBI's Liberalized Remittance Scheme will also be raised from ₹7 lakh to ₹10 lakh, offering more flexibility for individuals making overseas remittances. These changes are aimed at simplifying the tax process and providing relief to taxpayers across different sectors.

FM says, "....Inspired by the success, a modified UDAN scheme will be launched to enhance regional connectivity to 120 new destinations and carry 4 crore additional passengers in the next 10 years. The scheme will also support helipads and smaller airports in hilly, aspirational and northeast regional districts. Greenfield airports will be facilitated in Bihar to meet the future needs of the state. These will be in addition to the expansion of the capacity of Patna airport and Brownfield airport in Bihta. Financial support will be provided for Western Kosi Canal ERM project in Mithilanchal, benefitting a large number of farmers in the Mithilanchal region of Bihar..."

To support domestic manufacturing and value addition, Sitharaman announced several indirect tax measures.

Cobalt powder and waste, scrap from lithium-ion batteries, as well as critical minerals like lead, zinc, and 12 others, will be exempted from Basic Customs Duty (BCD).

Additionally, 35 more goods for electric vehicle (EV) battery manufacturing and 28 more goods for mobile phone battery production will be added to the list of exempted capital goods, further promoting domestic production and innovation in these sectors.

FM Nirmala Sitharaman announced a rationalisation of the customs tariff structure for industrial goods, building on previous changes made in the 2023-24 Budget. As part of this effort, seven tariff rates will be removed, further simplifying the tariff system. Only eight tariffs to remain.

Additionally, the Social Welfare Surcharge will be exempted on 82 tariff lines that are currently subject to a cess, helping to reduce the overall tax burden on various industries. 

FM Sitharaman announced that the asset monetisation plan 2025-30 will be launched to infuse Rs 10 lakh crore capital in new projects.

Finance Minister Nirmala Sitharaman says, "The fiscal deficit is estimated to be 4.4% of the GDP..."

Union Finance Minister Nirmala Sitharaman says, "The FDI limit for the Insurance Sector will be raised from 74 to 100 per cent. This enhanced limit will be available for those companies which invest the entire premium in India. The current guardrails and conditionalities associated with foreign investment will be reviewed and simplified."

"MSMEs employ 7.5 crore workers. They have come together to manufacture India as manufacturing hub. We will ensure better access to capital," said Sitharaman.

For MSMEs, FM also introduced customised credit cards, along with a fund of funds for startups and a new fund of funds with expanded scope.

Finance Minister Nirmala Sitharaman recently announced several key initiatives aimed at strengthening India’s healthcare and education sectors.

Over the next three years, all district hospitals will be equipped with cancer daycare centers, enhancing access to cancer care across the country.

Additionally, 75,000 new undergraduate medical seats will be created over the next five years, addressing the growing demand for medical professionals. Sitharaman also highlighted the establishment of five national centres for skilling, which will bring in global expertise to support the 'Make for India, Make for the World' initiative. 

The creation of five national Center of Excellence (CoE) for skills development, in partnership with international organisations, was announced by Sitharaman.

These were originally started after 2014 to facilitate education for 6,500 more students. IIT Patna will be expanded. Besides, broadband connections will be provided to all secondary schools and PHCs.

Union Finance Minister Nirmala Sitharaman says, "The investment and turnover limits for classification of all MSMEs will be enhanced to 2.5 and 2 times respectively. This will give them the confidence to grow and generate employment for our youth."

National Institute of Food Technology, Entrepreneurship, and Management to be set up in Bihar to provide a strong fillip to food processing activities in the entire Eastern region.

"MSMEs employ 7.5 crore workers. They have come together to manufacture India as a manufacturing hub. We will ensure better access to capital," said Sitharaman.

For MSMEs, FM also introduced customised credit cards, along with a fund of funds for startups and a new fund of funds with expanded scope.

Loan limit under the Kisan credit cards enhanced to ₹5 lakh from earlier ₹3 lakh, announced the Finance Minister. Kisan credit cards facilitate short-term loans for 77 million farmers, fishermen, and dairy farmers. 

India will become a hub for toy production.

With the announcement of the 2025 India Budget, the Sensex index jumped by over 300 points.

Urea Plant to be set up in Assam to further augment urea supply. The plant will have an annual capacity of 12.7 lakh metric tons and will be set up at Namrup, Assam. Additionally, three dormant urea plants in the Eastern region have been reopened.

Governmenrt to focus on sustainable harnessing of fisheries, especially in Andaman and Nicobar Islands, Lakhswadeep.

FM Nirmala Sitharaman announced a ‘Comprehensive Programme for Healthier Food Production’, which will include a six-year mission on pulses including Toor daal.

Answering the question of what does Viksit Bharat encompass, Nirmala Sitharaman said it includes: 

• Zero poverty
• 100% quality, good school education
• Access to high-quality, affordable and comprehensive healthcare
• 100% skilled labour with meaningful employment
• 70% women in economic activities
• Farmers making India the food basket of the world

The entire opposition staged a walkout from the Lok Sabha. They were heard chanting slogans like 'Anti-Hindu Modi Government' while exiting the House.

Union Finance Minister Nirmala Sitharaman says, "Our economy is the fastest growing among all major economies. Our development track record for the past 10 years and structural reforms have drawn global attention. Confidence in India's capability and potential has only grown in this period. We see the next 5 years as a unique opportunity to realise sabka vikas, stimulating balanced growth of all regions."

Indian Finance Minister Nirmala Sitharaman is set to present the Union Budget for 2025-26. For the past eight years, her saree choices have been a topic of discussion.

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There is a high probability that Ms. Sitharaman will unveil plans to speed up advancements in artificial intelligence (AI), a subject that was heavily discussed at the recent World Economic Forum in Davos. DeepSeek, an AI model developed in China, has sparked a worldwide competition to create superior AI systems.

The Atal Bihari Vajpayee government shifted the Union Budget presentation from 5 pm to 11 am in a historic break from colonial tradition. Since then, every government has adhered to this new norm, redefining the Budget’s timing in Indian politics.

The Atal Bihari Vajpayee government shifted the Union Budget presentation from 5 pm to 11 am in a historic break from colonial tradition. Since then, every government has adhered to this new norm, redefining the Budget’s timing in Indian politics.

Despite overall economic progress, women’s labour force participation remains low. The survey highlights the need for gender-inclusive policies, flexible work environments, and increased support for women-led businesses and startups.

In her record-setting eighth straight Budget, Finance Minister Nirmala Sitharaman is likely to alleviate the financial strain on the middle class, which is grappling with rising costs and sluggish wage growth, by lowering or adjusting income tax rates or slabs.

Facing global trade slowdowns and restrictive measures like the EU’s Carbon Border Adjustment Mechanism (CBAM), the survey stresses the importance of export diversification and exploring new markets to maintain external sector resilience.

The Indian Union Cabinet has approved Budget 2025.

Ahead of the budget presentation by Finance Minister Nirmala Sitharaman, the Union cabinet meeting has begun in Parliament.

With the rapid adoption of Artificial Intelligence (AI) and automation, the survey warns of potential job displacement. It calls for massive re-skilling and upskilling programs to prepare the workforce for AI-driven industries.

Anticipation is rising over potential adjustments to corporate tax rates. The government may explore tax incentives to encourage domestic businesses to reinvest, expand operations, and create jobs. Experts are also hopeful for simplified compliance processes, aiming to foster a more business-friendly environment.