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Union Budget 2025February 2025 8 www.projectstoday.comThe Union Budget 2025 underscores the government%u2019s commitment to fostering economic resilience, sustainable growth, and a balanced fiscal approach. Amid shifting global economic paradigms, geo-political uncertainties, India remains steadfast in its vision for longterm development by implementing a series of structural reforms and economic incentives. The BUDGET-2025 encapsulates key policy decisions aimed at stimulating domestic demand, enhancing infrastructure investment, liberalising financial regulations, and reinforcing fiscal discipline.A notable shift in this year%u2019s budget is the enhanced tax exemptions for salaried individuals, raising the threshold to Rs 12,75,000 per annum. This measure is projected to inject nearly Rs 1 lakh crore into the economy, spurring consumption across key sectors such as FMCG, Electronics, Automobiles, and Real Estate sectors. By increasing disposable income, the government aims to invigorate household spending, thereby fostering aggregate demand, which in turn is expected to stimulate private capex spending.Further, recognizing the aspirational needs of the middle class and help the Real Estate industry to create more demands for housing units, the government has removed the annual tax liability on the ownership of a second home. This reform is expected to drive growth in the housing sector, encouraging investment in both urban and semiurban areas while providing additional financial security for households. By fostering real estate expansion, the policy aims to generate employment, boost related industries such as construction and interior furnishings.Agricultural reforms continue to be a priority in the government%u2019s economic agenda. The Prime Minister DhanDhaanya Krishi Yojana, aimed at increasing agricultural productivity and sustainability, will be extended to 100 districts with below-average yields. The expansion of the Kisan Credit Card (KCC) scheme, increasing the credit limit from Rs 3 lakh to Rs 5 lakh, is expected to provide substantial financial relief to farmers. A National Mission on High-Yielding Seeds will enhance agricultural research and ensure better seed quality, thereby securing higher yields and improving food security. These initiatives reinforce the government%u2019s commitment to making India a global leader in agriculture while ensuring income security for farmers.The startup ecosystem receives a significant boost in this year%u2019s budget, marking an important milestone in India%u2019s journey towards a technology-driven economy. The taxfree regime for startups has now been extended until 2030, providing long-term stability and reducing financial burdens on emerging enterprises. This move is expected to encourage entrepreneurship, attract venture capital investment, and reinforce India%u2019s position as a global hub for innovation. The government also announced an additional Rs 10,000 crore allocation under the Fund of Funds for Startups, aimed at facilitating easier access to capital for early-stage businesses.Infrastructure development remains at the forefront of the economic agenda, with Rs 11.2 lakh crore allocated for capital expenditure on Roads, Railways, Ports, and Airports. The government%u2019s Urban Challenge Fund, with a corpus of Rs 1 lakh crore, seeks to improve urban infrastructure and develop the municipal bond market. Additionally, the Asset Monetisation Fund worth Rs 10 lakh crore will be utilised to fund new infrastructure projects through private sector participation. The Nuclear energy sector will also receive a major boost with an allocation of Rs 20,000 crore for the development of Small Modular Reactors (SMRs).