The Union Budget 2025 has introduced several measures aimed at providing tax relief for individuals with an annual income of less than ₹12 lakh, boosting various sectors, and supporting different economic groups. Key decisions include insurance for gig workers, removal of duties on certain medicines, an increased TDS limit for senior citizens, higher loan limits for MSMEs, and an enhanced Kisan Credit Card (KCC) limit.

Customs Duty Exemption on Medicines

  • Basic customs duty (BCD) has been removed for 36 medicines related to chronic and rare diseases, including cancer.
  • Concessional customs duty is now applicable to six additional medicines.
  • Companies producing these medicines in large quantities will receive full exemptions.
  • An additional 37 medicines have been added to the list of free medicines provided under Patient Assistance Programs.

Support for Gig Workers

  • The number of gig workers providing online platform services is projected to reach 2.3–3 crore by 2030.
  • ID cards and registration on the e-Shram portal will be enabled for gig workers.
  • They will receive health insurance under the PM Jan Arogya Yojana, benefiting around 1 crore gig workers.
  • Social security measures will be implemented through a Public-Private Partnership (PPP) model.

Boost for MSMEs

  • The loan limit for MSMEs has been increased from ₹5 crore to ₹10 crore.
  • Additional loans worth ₹1.5 lakh crore are expected over the next five years.
  • Startup loans will be raised from ₹10 crore to ₹20 crore.
  • A ₹10,000 crore fund will be established for existing startups.
  • MSMEs currently employ 7.5 crore people and contribute 36% to the manufacturing sector.

Expansion of Udan Scheme

  • The Udan scheme, which aims to make air travel affordable for the middle class, currently operates on 619 routes connecting 88 airports.
  • The latest budget has proposed expanding it to 120 more routes.
  • Additional support will be provided for helipads and small airports in hilly regions.
  • Aiming to facilitate air travel for 4 crore people over the next decade.
  • Greenfield airports will be established in Bihar, alongside expansions at Patna Airport and Bihta Airport.

Manufacturing & Infrastructure Growth

  • A National Manufacturing Mission will be launched to strengthen the "Make in India" initiative.
  • A urea plant with a 1.27 lakh tonne capacity will be set up in Namrup, Assam.
  • Manufacturing efforts will focus on solar photovoltaic (PV) cells, electrolysers, and grid-scale batteries.
  • 50,000 Atal Tinkering Labs will be established to drive innovation.

Day Care Cancer Centers

  • All districts will have Day Care Cancer Centers within the next three years.
  • 200 centers are expected to be operational by 2025-26.

Kisan Credit Card (KCC) Limit Increase

  • The short-term loan limit for farmers and fishermen has been raised from ₹3 lakh to ₹5 lakh.
  • This is expected to benefit 7.7 crore farmers.

Expansion in IITs

  • The capacity of 23 IITs has increased from 65,000 students (a decade ago) to 1.35 lakh students.
  • Additional infrastructure will be provided for 6,500 students in IITs established after 2014.
  • Hostel and facility upgrades will be implemented at IIT Patna.

Tourism Development

  • The government will work on developing the top 50 tourist destinations.
  • Immediate action will be taken with state participation.
  • States will be encouraged to allocate land for key infrastructure projects.
  • Private participation will be promoted in medical tourism through the "Heal India" initiative.

TDS Relief for Senior Citizens

  • The tax exemption limit on interest earned by senior citizens has increased from ₹50,000 to ₹1 lakh.
  • The tax exemption limit on rental income has been raised from ₹2.4 lakh to ₹6 lakh.
  • These measures are aimed at reducing the tax burden on senior citizens.

Support for Stalled Housing Projects

  • A second tranche fund of ₹15,000 crore will be introduced to complete stalled housing projects in the middle-income category (SWMIH).
  • The goal is to complete 1 lakh housing units using this capital.

Increased Foreign Investment in Insurance

  • The foreign direct investment (FDI) limit in the insurance sector has been raised from 74% to 100%.
  • This move is expected to attract more foreign investments and increase competition in the Indian insurance market.

Jal Jeevan Mission Expansion

  • The Jal Jeevan Mission, aimed at providing drinking water connections to rural households, has been extended until 2028.
  • The budget allocation for 2025-26 is ₹67,000 crore, significantly higher than the revised estimates of ₹22,694 crore for 2024-25.

The Budget 2025 focuses on strengthening multiple sectors, providing social security, and boosting economic growth through increased investments and support for businesses and individuals.