Budget 2025 Recap: Infrastructure Push, Green Growth And MSME Support At Core Of ‘Viksit Bharat’ Vision
The budget places strong emphasis on capital expenditure-led growth, agricultural productivity, innovation-driven development and digital inclusion, with significant allocations across sectors.
India’s Union Budget 2025 has laid out an expansive roadmap aligned with the government’s vision of “Viksit Bharat” (Developed India), prioritising infrastructure creation, green energy, MSME expansion and targeted social welfare, while signalling a calibrated reduction in subsidies.
The budget places strong emphasis on capital expenditure-led growth, agricultural productivity, innovation-driven development and digital inclusion, with significant allocations across sectors.
Infrastructure: States, Cities And Connectivity In Focus
Infrastructure emerged as a key growth driver, with the Centre extending Rs 1.5 lakh crore in 50-year interest-free loans to states for capital expenditure, aimed at accelerating project execution.
An Urban Challenge Fund of Rs 1 lakh crore has been announced to support city redevelopment, water supply and sanitation initiatives. The government also unveiled SWAMIH Fund-2, with a corpus of Rs 15,000 crore, to complete stalled affordable housing projects.
To strengthen logistics and transport, the budget proposes a Rs 25,000 crore Maritime Development Fund, while the UDAN regional connectivity scheme will be expanded to cover 120 new destinations.
Agriculture And Rural Economy: Productivity-Centric Approach
The budget sharpens its focus on farm productivity through the launch of initiatives such as the PM Dhan-Dhaanya Krishi Yojana, aimed at agriculture-focused districts, along with a National Mission on High Yielding Seeds and a dedicated Cotton Productivity Mission.
In a move aimed at boosting rural employment, the government increased the MGNREGA guaranteed workdays to 125 days.
MSMEs And Startups: Credit Access Expanded
Micro, small and medium enterprises received a major boost, with the credit guarantee cover raised to Rs 10 crore, enabling Rs 1.5 lakh crore in additional credit over five years.
For startups, the credit guarantee limit has been enhanced to Rs 20 crore. The budget also introduced credit cards for micro enterprises and sector-specific support for footwear, leather and toy manufacturing.
Green Growth And Innovation: Nuclear And R&D Push
Green growth formed a central pillar of the budget. A Nuclear Energy Mission has been announced with an outlay of Rs 20,000 crore to fund research and development of Small Modular Reactors (SMRs).
In parallel, Rs 20,000 crore has been earmarked for private sector-led research, development and innovation, signalling a push towards technology-driven economic expansion.
Social Welfare And Digital Initiatives
The Jal Jeevan Mission has been extended till 2028, with a renewed focus on water quality. Street vendors will benefit from a revamped PM SVANidhi scheme, which will introduce UPI-linked credit cards.
Gig workers have been brought under the healthcare umbrella with access to Ayushman Bharat. The budget also announced the Gyan Bharatam Mission, aimed at creating a digital repository of Indian manuscripts.
Other initiatives include continued support for Saksham Anganwadi and Poshan 2.0, expansion of Atal Tinkering Labs, and further strengthening of IIT infrastructure.
Taxation: TDS And TCS Rationalised
On the taxation front, the government moved to rationalise Tax Deducted at Source (TDS) by lowering rates and thresholds. The TDS limit on interest income for senior citizens has been doubled to Rs 1 lakh.
For overseas remittances under the Liberalised Remittance Scheme (LRS), the TCS threshold has been raised to Rs 10 lakh before higher tax rates apply.
Related Video
Breaking News: India Budget 2026-27 Sparks Market Volatility, Long-Term Reforms Highlighted
Top Headlines
