Business
FM Sitharaman goes for big push to job-led inclusive growth in Budget 2025-26

New Delhi, Feb 1: Finance Minister Nirmala Sitharaman on Saturday presented the Budget 2025-26 in the Parliament with an aim at accelerating employment-led inclusive growth, propelled by investments in the agricultural and rural sector, MSMEs and exports while sticking to the fiscal consolidation path.
“This budget is dedicated to accelerating growth, driven by our aspirations for a ‘Viksit Bharat.’ Our economy remains the fastest growing among all major economies,” the Finance Minister said on the floor of the Lok Sabha.
The key domains covered in the Union Budget include taxation, power, urban development, mining, the financial sector, and regulatory reforms. These areas are central to the government’s focus on driving growth, improving infrastructure, enhancing governance, and ensuring sustainable development across various sectors.
She has kept the budget deficit target on a declining path to 4.4 per cent of GDP in 2025-26 from 4.8 per cent of GDP in 2024-25.
The net market borrowing for the budget has been fixed at Rs 11.54 crore while the rest of the funds will come from small savings and other sources, the Finance Minister said. The government’s gross borrowing target for FY26 was revised upwards by 5.7 per cent to Rs 14.82 lakh crore from Rs 14.01 lakh crore in FY25.
In a major benefit for the middle class, Sitharaman announced that there will be no income tax on an annual income of up to Rs 12 lakh. For salaried people who enjoy a standard deduction of Rs 75,000, there would be no tax on income of up to Rs 12,75,000.
The move will place more money in the hands of the people to spend on goods and services which in turn would lead to higher growth in the economy.
In order to boost domestic manufacturing, she has also rationalised customs duties to increase tariffs on finished goods such as electronic products and reduce the duty on components used as inputs by local manufacturers.
The Finance Minister outlined specific proposals, starting with agriculture as the “first engine” to drive growth. Under the Prime Minister Krishi Yojana, a new initiative inspired by the success of the Aspirational District Programme, the government will launch an agricultural district programme in partnership with states. This will target 100 districts with low productivity, moderate crop intensity, and below-average credit parameters. The initiative is expected to benefit 1.7 crore farmers. The Finance Minister also announced an increase in the Kisan Credit Card (KCC) loan limit from Rs 3 lakh to Rs 5 lakh under the interest subvention scheme.
MSMEs have been identified as the second engine of growth, and the focus will be on the 5.7 crore MSMEs, which include over one crore registered businesses employing 7.5 crore people and contributing 36 per cent to India’s manufacturing. These MSMEs are crucial in positioning India as a global manufacturing hub, responsible for 45 per cent of the nation’s exports. To boost their growth and efficiency, the government will enhance the investment and turnover limits for MSMEs, increasing them by 2.5 times and 2 times, respectively. This move is expected to empower MSMEs to scale up, innovate, and generate more employment opportunities for the youth.
The Finance Minister announced that the government will implement specific policy and facilitation measures to boost the productivity, quality, and competitiveness of India’s footwear and leather sector products. This scheme is expected to create employment for 22 lakh people, generate over Rs 400 crore, and achieve exports of over Rs 1.1 lakh crore. In addition, measures will be introduced for the toy sector, building on the National Action Plan for Toys. A new scheme will aim to establish India as a global hub for toys, focusing on developing clusters, skills, and a manufacturing ecosystem that will produce high-quality, innovative, and sustainable toys, representing the “Made in India” brand, the Finance Minister said.
The Finance Minister emphasised investment as the third engine of growth, which includes investing in people, the economy, and innovation. As part of investing in people, the government is focusing on the Sashakt Anganwadi and Poshan 2.0 programmes, which provide nutritional support to over 8 crore children, pregnant women, lactating mothers, and around 20 lakh adolescent girls in aspirational districts and the Northeast region. The cost norms for these programs will be enhanced, Sitharaman added.
Business
No user fee collection from two-wheelers at toll plazas: Govt

New Delhi, Aug 21: The government on Thursday clarified that no user fee is levied from two-wheelers at the toll plazas on National Highways and National Expressways across the country.
The clarification came after reports surfaced that the National Highways Authority of India (NHAI) would collect user fees from two-wheeler riders at toll plazas.
“In reference to the fake news circulating on social media regarding toll collection from two wheelers on toll plaza, NHAI would like to clarify that no user fee is levied from two wheelers at the Toll plazas on National Highways and National Expressways across the country,” the Ministry of Road Transport and Highways said in a statement.
User fee on National Highways is collected as per the National Highway Fee (Determination of Rates and Collection) Rules, 2008, and there is no proposal to charge toll fee from the two wheelers, the ministry added.
According to the rules, the user fee at toll plazas is charged from four or more wheeled vehicles which include categories like car, jeep, van or light motor vehicle/light commercial vehicle, light goods vehicle or mini bus/bus or truck/heavy construction machinery (HCM) or earth moving equipment (EME) or multi axle vehicle (MAV) (three to six axles)/ oversized vehicles (seven or more axles.
Meanwhile, the NHAI sold over 5 lakh FASTag-based annual toll permits in just four days, collecting Rs 150 crore in revenue. Tamil Nadu recorded the highest number of purchases of annual passes in four days, followed by Karnataka and Haryana.
Further, Tamil Nadu, Karnataka, and Andhra Pradesh recorded the highest number of transactions through FASTag annual passes at toll plazas, a statement by NHAI said. Private vehicles can now use an annual toll pass for free passage through toll plazas on national highways and expressways, with each pass priced at Rs 3,000.
The annual pass is valid for one year from activation or for 200 toll trips, whichever occurs first.
Business
India To Clock 6.7% Growth Outpacing RBI Monetary Policy Committee’s 6.5% Recent Forecast

New Delhi: India is expected to clock 6.7 per cent growth in the first quarter of the current fiscal (FY26), outpacing the RBI Monetary Policy Committee’s (MPC’s) recent forecast of 6.5 per cent, credit rating agency ICRA said on Tuesday.The rating agency report projects the growth in the gross value added (GVA) to stand at 6.4 per cent in Q1 FY2026.
Improved transmission of monetary easing and the recent announcement of forthcoming GST rationalisation may help to shore up urban consumption sentiments ahead of the festive season, the report said.”ICRA estimates a double-digit growth in net indirect taxes (in nominal terms), aided by the sharp uptick in the government of India’s indirect taxes (+11.3 per cent in Q1 FY26 from -3.1 per cent in Q4 FY2025), despite the narrower contraction in its subsidy outgo,” said Aditi Nayar, Chief Economist, Head-Research and Outreach, ICRA.
“Benefitting from robust government capital as well as revenue spending, upfronted exports to some geographies and nascent signals of improved consumption, the pace of expansion in economic activity in Q1 FY2026 is estimated at 6.7 per cent,” Aditi Nayar said.The rating agency estimates the YoY growth in the services GVA to increase to an eight-quarter high of 8.3 per cent in Q1 FY26, from 7.3 per cent in Q4 FY25, supporting the overall GVA expansion in that quarter.
In particular, the combined non-interest revenue expenditure of 24 state governments reported a double-digit YoY growth of 10.7 per cent in Q1 FY26, up from 7.2 per cent in Q4 FY25.Likewise, the Central government’s non-interest revenue expenditure saw a turnaround, recording a YoY growth of 6.9 per cent against a contraction of 6.1 per cent in the previous quarter, said the report.
Rural sentiments, as reflected in the Current Situation Index (CSI) improved further in the July 2025 (100.6) round of the RBI’s Rural Consumer Confidence Survey, reflecting favourable trends in farm output in the last two cropping seasons, and the upbeat outlook for the ongoing kharif season, and a considerable cooling in the rural CPI inflation.
Business
Indian Railways Introduces Discounted ‘Round Trip Package’ To Ease Festive Season Travel

New Delhi: To avoid rush by ensuring hassle-free ticket booking experience during the upcoming peak festive seasons, the Ministry of Railways on Saturday said that it has decided to formulate a ‘Round Trip Package’ on discounted fare and rebates benefit.
The move will facilitate passengers and redistribute the peak traffic for a larger range during peak festival seasons and ensure both sides utilisation of trains, including special trains.
“It has been decided to formulate an experimental scheme named as Round Trip Package for festival rush on discounted fare,” the Railways Ministry stated.
According to the ministry, the scheme will be applicable for those passengers who choose their return journey during the prescribed period.
Under this scheme, rebates shall be applicable when booked for both the onward and return journey for the same set of passengers.
Passenger details of the return journey will be the same as those of the onward journey. Passengers can book their tickets from August 14 for the advance reservation period (ARP) date of October 13.
“An onward ticket shall be booked first for the train start date between 13th October 2025 and 26th October 2025, and subsequently return journey ticket shall be booked by using the connecting journey feature for the train start date between 17th November and 1st December 2025,” the Ministry stated.
However, advance reservation period will not be applicable for booking of return journey.
Other conditions to avail the benefits of the railway’s new special scheme are the booking shall be permissible only for confirmed tickets in both directions, total rebates of 20 per cent shall be granted on base fare of return journey only, booking under this scheme shall be for the same class and same O-D pair for both onward and return journey.
According to Railways, no refund of fare shall be permissible for the tickets booked under this scheme.
This scheme shall be allowed for all classes and in all trains, including special trains (Trains on demand), except trains having Flexi fare.
In addition, no modification will be allowed on these tickets in either of the journeys, and there will be no discounts, Rail travel coupons, Voucher-based bookings, or Passes be admissible during return journey booking on concessional fare.
Passenger can book their ticket via both online and offline modes; however, both onward and return journey tickets must be booked using the same mode (online or offline).
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