Education, Health, Infrastructure, Taxation and more: Here are the key highlights of Budget 2025 across 10 key sectors

On Saturday (1st February), Union Finance Minister Nirmala Sitharaman presented the Budget for the Financial Year 2025-2026. The budget, which has been framed to benefit the middle-class, highlighted key proposals and schemes for the betterment of several sectors. These include agriculture, health, education, law and order, finance, business, infrastructure and more.

Agriculture

1. The Modi government has announced the ‘Dhan Dhanya Krishi Yojna’, which will be implemented in partnership with the States. The scheme will benefit a whopping 1.7 crore farmers.
2. It also announced the constitution of a ‘Makhana Board’ in Bihar to enhance value addition and processing.
3. The loan limit for farmers has been increased to ₹5 lakhs from the existing ₹3 lakhs under Kisan Credit Card (KCC).
4. A urea plant of 12.7 lakh metric tonnes will be set up in Assam to benefit farmers.
5. The Modi government also announced the launch of the ‘Atmanirbharta Mission’ for pulses to ensure self-sufficiency in production.
6. It has also strengthened India’s edible oil market through the ‘National Mission for Edible Oilseeds.’
7. A National Institute of Food Tech will be established in Bihar to enhance income of farmers.

Health

1. The Modi government has allocated ₹98,311 crore in the Budget for the Financial Year 2025-2026 for improving the healthcare system in India.
2. It has also allocated ₹2,445 crore for the Production Linked Incentive (PLI) Scheme for the pharmaceutical industry.
3. The government announced that it will establish 200 cancer centres in the country.
4. It has also exempted Basic customs duty (BCD) on 36 life-saving drugs.

Taxation

1. The Modi government provided significant relief to the middle class by making payable tax ‘zero’ for income up to 12 lakhs.
2. The valuation of 2 self-occupied properties can now be marked as nil for tax purposes
3. A new income tax bill will be introduced to rationalise both the Tax deducted at source (TDS) and Tax collected at source (TCS).

Law and Order

1. The Modi government announced the introduction of the Jan Vishwas 2.0 bill to decriminalise more than 100 provisions in existing laws.

Finance

1. To ensure better financial access, banks have been directed to maintain ‘Grameen Credit score’ for self-help groups
2. To encourage Foreign Direct Investment (FDI), the Modi government will create a model Bilateral Investment Treaty.
3. It has increased the FDI limit in insurance from 74% to 100%.

Business

1. The Modi government has assured support to Micro, Small & Medium Enterprises (MSMEs) to tackle non-tariff barriers in exports.
2. The Budget 2025 also made provisions for an increase in ‘credit guarantee cover’ for micro-enterprises from ₹5 crores to ₹10 crores.
3. Fund of Funds (FoF) for the startup ecosystem has received commitments of over ₹9 lakh crore.
4. The Modi government has announced schemes to boost the footwear and leather industry and manufacture sustainable toys under the flagship ‘Make-in-India’ scheme.
5. An outlay of ₹1.5 lakh crores has been announced for infrastructure projects to be completed via private-public partnership (PPP).
6. ‘India Post’ will be evolved into a major public logistics organisation. It will work as a catalyst for rural development.
7. A Maritime Development Fund will be established with a corpus of ₹25000 crores for shipbuilding financial assistance.

Education and Jobs

1. The Modi government has proposed to remove Tax collected at source (TCS) on education loans up to ₹10 lakhs from a specified financial institution.
2. It announced 10,000 fellowships for tech research and innovation at IITs and IISc under the PM Research Fellowship Scheme.
3. The government has announced an addition of 10000 medical seats. It has aimed to increase 75000 medical seats in the next 5 years.
4. An outlay of ₹500 crores has been kept aside to establish a Centre of Excellence for AI in Education.
5. The government will also establish 5 National Centres of Excellence for upskilling the youth. 
6. All secondary schools will be equipped with broadband connection.
7. The government will establish 50,000 Atal Tinkering Laboratories (ATLs) in schools within the next 5 years.  
8. It will provide credit facilities and insurance to gig workers under the PM Swanidhi Scheme and issue identity cards through the e-shram portal. The facility will benefit ₹1 crore gig workers.

Tourism

1. The Modi government will help develop 50 tourist destinations in partnership with respective State governments.
2. It will partner with the private sector and promote medical tourism in India.
3. The government has also extended Murdra loans to homestays in the country.
4. It has assured to launch a new UDAN scheme to cater to 4 crore passengers and connect them to 120 destinations.

Infrastructure

1. The government has assured financial assistance for the Western Kosi Canal Project in Bihar’s Mithilanchal region.
2. It will create a ₹1 lakh crore Urban Challenge Fund to transform cities into growth hubs.
3. The government will also extend the Jal Jeewan Mission, which aims to provide tap water to every household. The mission has been extended to 2028 to ensure 100% coverage.

Energy

1. The government has set a target of achieving 100 gigawatts (GW) of nuclear energy by 2047 to ensure the transition to clean energy.
2. A sum of ₹20,000 crore will be spent on Research & Development of small modular reactors.