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.

New Delhi, Feb 1: Union Finance Minister Nirmala Sitharaman on Saturday announced exemptions on basic customs duty on 36 life-saving drugs and also gave a big boost to medical tourism.

“Basic customs duty exempted for 36 life-saving drugs, while 6 life-saving drugs will have 5 per cent customs duty,” the FM said, as she presented her eighth consecutive budget and the NDA government’s second full Union Budget of its third term.

“This will provide relief to patients, particularly those suffering from cancer, rare diseases, and other severe chronic diseases,” the FM said.

In a significant move for Patient Assistance Programs (PAPs), the FM waived off customs duty on medicines provided through the programme, expanding access to essential drugs for those in financial distress.

About 13 more patient assistance programs have been added to significantly benefit underprivileged patients.

Further, in a bid to boost medical tourism in the country, the FM announced, a ‘Heal in India’ campaign in partnership with the private sector.

Visa procedures have also been simplified for patients seeking treatment in India to enhance the country’s medical tourism sector.

Medical Tourism in India is estimated to be around $9 billion.

On the Global Medical Tourism Index, India stands at number 10.

The country has seen significant growth in medical tourism in the past year, especially due to the rise of the AYUSH system (Ayurveda, Yoga and Naturopathy, Unani, Siddha, and Homeopathy).

In 2023, the government also implemented medical visa provisions to facilitate the entry of international tourists seeking health and wellness treatments in the country.

Announcing the Union Budget, FM Sitharaman also announced 10,000 additional seats in medical colleges as well as daycare cancer centres in all district hospitals.

New Delhi, Feb1: Finance Minister Nirmala Sitharaman on Saturday presented the Budget 2025-26 in Parliament which aims to give a big push to employment-led growth with its focus on the agricultural and rural sector, MSMEs, and exports, while sticking to the fiscal consolidation path to ensure stability in the economy.

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 schemes, 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. Earlier, it was set at Rs 14.01 lakh crore for FY25.

“In the July Budget, I committed to staying the course for fiscal consolidation… Our endeavour will be to keep the fiscal deficit each year such that the Central government debt remains on a declining path as a percentage of the GDP,” FM Sitharaman said.

“Coming to 2025-26, the total receipts other than borrowings and the total expenditure are estimated at Rs 34.96 lakh crore and Rs 50.65 lakh crore, respectively. The net tax receipts are estimated at Rs 28.37 lakh crore. The fiscal deficit is estimated to be 4.4 per cent of GDP,” the Finance Minister added.

In the FY’25 Budget, the government projected gross tax revenue at Rs 38.40 lakh crore, marking an 11.72 per cent increase from FY’24. This includes Rs 22.07 lakh crore from direct taxes (personal income and corporate tax) and Rs 16.33 lakh crore from indirect taxes (customs, excise, GST).