Union Budget 2025: Major Tax Cuts, Economic Boosts Announced

The Union Budget 2025 brings significant tax relief to the middle class, infrastructure expansion, and major support for nuclear energy and small industries. The government has raised the income tax exemption limit, making earnings up to ₹1.2 million ($13,841; £11,165) tax-free. Additionally, tax slabs have been restructured, ensuring that taxpayers retain more disposable income. Infrastructure development remains a priority, with capital expenditure on roads, ports, and railways increasing slightly from ₹11.1 trillion to ₹11.2 trillion ($129.18bn; £104.21bn). Interest-free loans will also be provided to states to accelerate infrastructure projects.

A significant boost has been announced for the nuclear energy and insurance sectors. A Nuclear Energy Mission with a budget of ₹200bn ($2.3bn; £1.86bn) aims to generate 100GW of nuclear power by 2047. The foreign direct investment (FDI) limit in the insurance sector has been raised from 74% to 100%, attracting international investors. Additionally, small and micro industries, which contribute 35% to India's manufacturing sector, will receive ₹1.5 trillion ($17.31bn; £13.96bn) over five years. A high-level committee has also been formed to recommend regulatory reforms within a year, aimed at improving the ease of doing business.