UNION BUDGET 2025-26
Sectoral Highlights
EN Team
The Union Budget for 2025-26 embodies the government's broader vision of "Viksit Bharat"- a blueprint for fostering a prosperous, self-reliant, and socially inclusive economy. With an anticipated GDP growth rate of 6.3% to 6.8%, the budget strategically prioritises infrastructure expansion, sustainable development, and socio-economic empowerment.
The overarching theme of this year's budget, "Sabka Vikas" (Development for All), underscores the imperative of balanced and equitable growth across diverse economic sectors and geographic regions. Substantial allocations have been earmarked for agriculture, manufacturing, digital transformation, and renewable energy, reflecting the government's commitment to leveraging India's demographic advantage while addressing pressing challenges such as employment generation, income disparities, and rural upliftment.
Furthermore, the budget introduces progressive reforms in taxation, urban development, and the energy sector, fostering an investment-friendly climate and catalysing technological innovation. Structural interventions, such as enhanced Public-Private Partnerships (PPPs), streamlined regulatory frameworks, and incentives for Micro, Small, and Medium Enterprises (MSMEs), are poised to strengthen industrial growth and improve the ease of doing business in India. Additionally, the budget places a strong emphasis on self-reliance (Atmanirbhar Bharat), social equity, and sustainability, ensuring that economic growth is inclusive and benefits all sections of society. By prioritising indigenous industries, enhancing financial inclusion, and promoting skill development, the government aims to create a resilient economy that is less dependent on external factors. The focus on social equity is further reinforced through targeted welfare programmes, women empowerment initiatives, and expanded access to quality education and healthcare, laying the groundwork for a more just and equitable society.
Recognising the transformative potential of technology and innovation, the Union Budget 2025-26 places a strong emphasis on fostering a robust digital economy and advancing research-driven growth. Significant investments have been directed towards emerging technologies such as Artificial Intelligence (AI), quantum computing, semiconductor manufacturing, and 5G infrastructure to position India as a global technology hub. The expansion of digital public infrastructure, coupled with incentives for start-ups and deep-tech enterprises, is set to drive entrepreneur-ship and enhance India's competitive edge in the global market. Moreover, increased funding for Research and Development (R&D) in strategic sectors, including healthcare, space exploration, and renewable energy, reflects the government's commitment to harnessing innovation for national progress. By integrating technology-driven solutions into governance, finance, and industry, the budget aims to create a future-ready economy that is both agile and resilient in the face of evolving global challenges.
NEW INCOME TAX SLAB
Taxable Income (Rs.) New Tax Rate (%)
0 - 4 lakh Nil
4 - 8 lakh 5%
8 - 12 lakh 10%
12 - 16 lakh 15%
16 - 20 lakh 20%
20 - 24 lakh 25%
Above 24 lakh 30%
EDUCATION
Category Initiative Allocation / Increase
50,000 Atal Tinkering Planned over next
Labs in Government 5 years
schools over the next
5 years
School Education Initiatives Broadband connectivity Planned over next
to be provided to all 3 years
Government secondary
schools under BharatNet
Samagra Shiksha Rs.3,750 crore
Abhiyan budget increase (11% rise)
PM POSHAN (Mid-day Rs. 2,500 crore
Meal Scheme) budget (25% rise)
increase
PM SHRI Schools Rs. 3,000 crore
budget increase (66% rise)
Kendriya Vidyalaya Rs. 9,503 crore
Sangathan (KVS) (Rs.201.17 crore
budget increase)
Higher Education & Research Private Sector-driven Rs. 20,000 crore
Research, Development
& Innovation
10,000 fellowships under 10,000 fellowships
the PM Research
Fellowship Scheme
Expansion of IITs started 6,500 additional
post-2014 to accommo- student capacity
date 6,500 more students
IIT Patna's hostel and Expansion planned
infrastructure expansion
Skilling & Technological Five National Centres Planned under Make
Advancement of Excellence for Skilling for India, Make for the
World
Centre of Excellence in Rs. 500 crore outlay
Artificial Intelligence for
Education
Promotion of Indian Bharatiya Bhasha Pustak Providing digital-form
Knowledge & Languages Scheme Indian language books
Gyan Bharatam Mission Collaboration with
to preserve over 1 crore institutions, museums,
manuscripts and libraries
National Digital Planned for
Repository of Indian knowledge sharing
Knowledge Systems
Grants for Promotion of Rs. 347 crore
Indian Languages (11.91% increase)
Central Universities Rs. 16,691 crore
budget (4.79% increase)
University Grants Rs. 3,336 crore
Autonomous Institutions & Commission (UGC) (33.44% increase)
Universities budget
IITs budget Rs. 11,349 crore
(9.92% increase)
NITs budget Rs. 5,687 crore
(12.85% increase)
IIITs budget Rs. 407 crore
(28.83% increase)
IIMs budget Rs. 252 crore
(18.7% increase)
Deemed Universities Rs. 604 crore
budget (1.34% increase)
AGRICULTURE
Category Allocation / Investment Key Focus Areas
Total Budget Allocation Rs. 1.37 lakh crore Strengthening agricultural
(Rs.1.27 lakh crore for productivity & rural
Agriculture & Farmers' welfare
Welfare, Rs.10,466 crore
for Agricultural Research
& Education)
Prime Minister Dhan- Covers 100 low-productivity Improving crop
Dhaanya Krishi Yojana districts, benefiting 1.7 crore diversification, storage,
farmers irrigation & credit access
Mission for Aatmanirbharta Six-year initiative for self- Ensuring self-reliance in
in Pulses sufficiency in tur, urad, and key pulse varieties
masoor, with government
procurement
National Mission on High Research & development Developing resilient &
Yielding Seeds for high-yield, pest-resistant high-yield crop varieties
seeds
Comprehensive Programme Enhancing production, Supporting supply chain
for Vegetables and Fruits efficient supply chains, and & processing improve-
processing of vegetables & ments
fruits
Mission for Cotton Five-year plan focusing on Enhancing sustainability
Productivity extra-long staple cotton & cotton productivity
varieties
Rural Prosperity and Targeting underemployment Boosting employment
Resilience Programme in agriculture via skilling & opportunities in rural areas
technology
Increased Loan Limits Loan limits increased from Providing farmers with
Rs.3 lakh to Rs.5 lakh better credit facilities
under Modified Interest
Subvention Scheme
PM-Kisan Scheme Rs. 63,500 crore allocated Ensuring stable income
for direct financial assistance support for farmers
to farmers
Pradhan Mantri Fasal Rs. 12,242 crore allocated Reducing risks & losses
Bima Yojana (budget cut from previous from crop failures
year)
Additional Allocations Rs. 1,000 crore for pulses, Encouraging targeted
Rs. 500 crore for vegetables investments in high-
& fruits, Rs. 100 crore for demand sectors
Makhana Board (Bihar),
Rs. 500 crore for cotton
technology mission
RURAL DEVELOPMENT
Category Allocation / Investment Key Focus Areas
Total Budget Allocation Rs. 1.88 lakh crore (5.75% Enhancing livelihoods,
increase from the previous rural infrastructure, and
year) overall prosperity
Mahatma Gandhi National Rs. 86,000 crore (remains Ensuring 100 days of
Rural Employment unchanged from the pre- wage employment for
Guarantee Scheme vious year) rural households
(MGNREGS)
Rural Prosperity and Targeted investment in Reducing underemploy-
Resilience Programme skilling, infrastructure, and ment in agriculture and
technology adoption empowering marginalised
communities
Pradhan Mantri Gram Rs. 19,000 crore (significant Improving rural road
Sadak Yojana (PMGSY) increase from previous connectivity and
allocations) transportation
Deendayal Antyodaya Rs. 19,005 crore (26% Promoting self-employ-
Yojana - National Rural increase from last year) ment and rural
Livelihoods Mission entrepreneurship
(DAY-NRLM)
Pradhan Mantri Awas Rs. 54,832 crore (maintains Providing affordable
Yojana - Gramin (PMAY-G) similar level to last year's housing in rural areas
budget)
Infrastructure and Expansion of broadband Strengthening digital
Connectivity connectivity to all govern- connectivity and accessi-
ment secondary schools bility in rural regions
& health centers under
Bharatnet
ROADS AND HIGHWAYS
Category Allocation / Investment Key Focus Areas
Total Budget Allocation Rs. 2,873.33 crore (2.41% Enhancing road infra-
increase from Rs. 2,805.18 structure and financial
crore last year) sustainability
National Highways Rs. 1,878.03 crore (increase Supporting highway
Authority of India (NHAI) from Rs.1,693.71 crore last development and
fiscal year) maintenance
Debt Management No provision for new Reducing debt burden of
borrowings; NHAI debt NHAI for financial stability
reduced from Rs.3.35 lakh
crore to Rs.2.76 lakh crore
Key Infrastructure Projects Investment in Bharatmala Improving connectivity,
Pariyojana, Char Dham traffic management, and
Mahamarg, National High- economic growth through
Speed Corridors, advanced better transportation
traffic management systems, networks
and multi-modal logistics
parks
TOURISM
Category Allocation / Investment Key Focus Areas
Total Budget Allocation Rs. 2,541.06 crore (199% Employment-led growth
increase from Rs. 850.36 & infrastructure develop-
crore) ment
Tourist Destination 50 new tourist destinations Transforming destinations
Development in collaboration with states into world-class hubs
Infrastructure Funding Rs. 1,900 crore for Swadesh Enhancing tourism infra-
Darshan (Theme-based structure & connectivity
circuits)
Rs. 240 crore for PRASHAD Strengthening pilgrimage-
(Pilgrimage tourism) based tourism
Support for Hospitality Streamlined e-visa & visa Attracting international
Sector fee waivers for select tourists visitors to boost tourism
Support for Hospitality MUDRA loans for home- Supporting micro & small
Sector stays & small hospitality tourism enterprises
enterprises
Skill Development Initiatives Allocated funds for work- Meeting the rising demand
force training in the hospi- for skilled tourism
tality sector workforce
Medical & Spiritual Tourism 'Heal in India' programme for Boosting India's medical
medical tourism & Buddhist & cultural tourism appeal
circuit enhancement
CIVIL AVIATION
Category Allocation / Investment Key Focus Areas
Total Budget Allocation Rs. 2,400.31 crore (10% Optimising aviation infra-
reduction from structure & operations
Rs. 2,658.68 crore)
UDAN Scheme Funding Rs. 540 crore (32% decrease Expanding regional
from Rs. 800 crore) for UDAN connectivity & accessibility
Regulatory Bodies Allocation Rs. 330 crore for DGCA & Strengthening aviation
Rs. 95 crore for BCAS regulatory oversight
Customs Cost Recovery Rs. 142.75 crore for Cus- Supporting airports in
Charges toms Cost Recovery (up tier-II & tier-III cities
from Rs. 124.17 crore)
Air India Asset Holding Ltd Rs. 1,025.51 crore for Air Financial restructuring of
India Asset Holding Ltd Air India
(loan servicing)
Infrastructure Development Development of greenfield Expanding aviation infra-
airports in Bihar & other structure to meet demand
states
RAILWAYS
Category Allocation / Investment Key Focus Areas
Total Budget Allocation Rs. 2.65 lakh crore (un- Supporting modernisation
changed from previous and expansion of railway
fiscal year) infrastructure
Capital Expenditure Rs. 2.65 lakh crore Funding railway projects
(Rs. 2.52 lakh crore from and additional safety
general revenues, Rs. 200 measures
crore from Nirbhaya Fund,
Rs. 3,000 crore from internal
resources, Rs. 10,000 crore
from extra-budgetary
resources)
Manufacturing of New 200 Vande Bharat trains, Enhancing manufacturing
Trains 100 Amrit Bharat trains, and upgrading passenger
50 Namo Bharat trains, experience
17,500 general coaches
Revenue Targets Rs. 3.02 lakh crore total Boosting revenue through
revenue target (Rs. 80,000 passenger and freight
crore from passenger services
services, Rs.1.8 lakh crore
from freight services)
Safety and Electrification Enhancing railway safety Ensuring safe and sus-
Focus measures and expanding tainable railway operations
electrification for operational
efficiency
COMMERCE
Category Allocation / Investment Key Focus Areas
Total Budget Allocation Rs. 20,000 crore (20% in- Enhancing trade, invest-
crease from Rs. 16,667 crore ment, and business
in the previous year) environment
Credit Guarantee Scheme Increase in credit guarantee Providing financial support
cover: Rs.5 crore to Rs. 10 for SMEs, start-ups, and
crore for micro & small enter- exporters
prises, Rs.10 crore to
Rs. 20 crore for start-ups,
Up to Rs.20 crore for ex-
porter MSMEs
Investment in MSMEs Doubling investment & turn-
over limits for MSME classi-
fication; 10 lakh credit cards
COMMERCE
Category Allocation / Investment Key Focus Areas
with Rs.5 lakh limit for micro Strengthening MSMEs
enterprises registered on through financial assis-
Udyam portal tance and credit accessi-
bility
Infrastructure Development Formulation of a three-year Boosting infrastructure
project pipeline under PPP development via public-
models; Second asset mone- private partnerships
tisation plan for 2025-30
Geospatial Mission New National Geospatial Optimising land utilisation
Mission to modernise land efficiency for commercial
records and improve urban and urban development
planning
WOMEN AND CHILD DEVELOPMENT
Category Allocation / Investment Key Focus Areas
Total Budget Allocation Rs. 26,889.69 crore Enhancing support for
(increase from Rs. 23,182.98 women and children
crore in 2024-25) through various initiatives
Saksham Anganwadi and Rs. 21,960 crore for com- Providing nutritional
POSHAN 2.0 bating malnutrition and support to over 8 crore
strengthening early child- children, 1 crore pregnant
hood care & lactating women, and
20 lakh adolescent girls
Mission Vatsalya Rs. 1,500 crore (increase Strengthening institutional
from Rs. 1,391 crore) for and family-based child
child protection services care services
Mission Shakti - Sambal Rs. 629 crore for initiatives Empowering women
like Beti Bachao Beti Padhao, through various safety
One Stop Centres, Women's and support programmes
Helpline, and Mahila Police
Volunteers
Mission Shakti - Samarthya Rs. 2,521 crore for Swadhar Supporting women in
Greh, PMMVY, Working distress and providing
Women's Hostels, and maternity benefits
National Creche Scheme
Nirbhaya Fund Rs. 30 crore for financing Ensuring women's safety
women's safety initiatives through dedicated
initiatives
Pradhan Mantri Janjati Rs. 300 crore for suppor- Uplifting Particularly
Adivasi Nyaya Maha ting Particularly Vulnerable Vulnerable Tribal Groups
Abhiyan (PM JANMAN) Tribal Groups
National Commission for Rs. 28 crore for the National Promoting women's rights
Women (NCW) Commission for Women and gender equality
National Commission for Rs. 25 crore for the National Strengthening child pro-
Protection of Child Rights Commission for Protection tection and rights
(NCPCR) of Child Rights advocacy
National Institute of Public Rs. 90 crore for NIPCCD Improving cooperation
Cooperation and Child (slight increase from pre- and child development
Development (NIPCCD) vious allocations) programmes
YOUTH AFFAIRS
Category Allocation / Investment Key Focus Areas
Total Budget Allocation Rs. 3,794.30 crore (in- Enhancing youth engage-
crease of Rs.351.98 crore ment and promoting
from Rs.3,442.32 crore in sports
the previous year)
Khelo India Scheme Rs.1,000 crore (increase Strengthening grassroots
of Rs. 200 crore from sports programmes and
Rs. 800 crore) for grass- nurturing young athletes
roots sports and athlete
development
Central Schemes and Rs. 2,191.01 crore for Expanding central
Projects Rashtriya Yuva Sashakti- initiatives for sports
karan Karyakaram, Incentive development and youth
to Sports Persons, National empowerment
Sports Development Fund,
Assistance to Sports Federa-
tions, and sports facilities in
Jammu & Kashmir
Autonomous Sports Bodies Rs. 1,558 crore for organisa- Supporting autonomous
tions like Sports Authority of sports organisations and
India (SAI), National Anti- doping control
Doping Agency, and Nehru
Yuva Kendra Sangathan
National Service Scheme Rs. 450 crore (increase of Encouraging community
(NSS) Rs. 200 crore) for youth service and youth
development through commu- participation
nity service
Other Allocations Rs. 400 crore for National Boosting funding for
Sports Federations (increase sports federations, doping
from Rs.340 crore); Rs. 23 control, and international
crore for National Dope Testing collaborations
Laboratory (increase from
Rs. 18.70 crore); Rs. 24.30
crore for National Anti-Doping
Agency (increase from
Rs. 20.30 crore); Rs.55 crore
for youth exchange
programmes (increase from
Rs. 11.70 crore)
SPORTS
Category Allocation / Investment Key Focus Areas
Total Budget Allocation Rs. 3,794.30 crore (increase of Enhancing sports infrastructure
Rs. 351.98 crore from and youth engagement
Rs. 3,442.32 crore)
Khelo India Programme Rs.1,000 crore (increase of Developing grassroots sports
Rs. 200 crore from Rs. 800 and nurturing young athletes
crore) for grassroots athlete
development
National Sports Federations Rs. 400 crore (increase from Strengthening national sports
(NSFs) Rs. 340 crore) for supporting organisations and training
sports federations programmes
Sports Authority of India (SAI) Rs. 830 crore (increase from Providing structured training and
Rs. 815 crore) for organising logistical support for athletes
national camps and training
logistics
Anti-Doping Initiatives Rs. 23 crore (increase from Ensuring fair play and anti-doping
Rs.18.70 crore) for National measures
Dope Testing Laboratory;
Rs. 24.30 crore (increase from
Rs.20.30 crore) for National
Anti-Doping Agency
National Sports Development Rs. 18 crore (same as pre- Encouraging financial support for
Fund vious year) for National Sports sports development
Development Fund
Incentives for Sportspersons Rs. 37 crore (reduction from Providing monetary incentives and
Rs. 42.65 crore) for incentives awards for athletes
to sportspersons
National Service Scheme (NSS) Rs. 450 crore (increase of Promoting youth participation in
Rs.200 crore) for youth engage- community and sports initiatives
ment through community service
Enhancement of Sports Facilities Rs. 20 crore (increase of Rs. 14 Expanding regional sports
crore) for improving sports infrastructure and access
facilities in Jammu & Kashmir
Youth Exchange Programmes Rs. 55 crore (increase from Facilitating international youth
Rs.11.70 crore) for youth ex- sports exchanges and cooperation
change programmes and multi-
lateral sports collaborations
URBAN DEVELOPMENT
Category Allocation / Investment Key Focus Areas
Urban Challenge Fund Rs. 1 lakh crore fund to support Developing cities as growth hubs,
urban transformation creative redevelopment, water &
sanitation projects
Housing Initiatives Rs. 15,000 crore for completing Addressing urban housing
100,000 housing units in shortages and improving living
stressed projects conditions
Infrastructure Development Investment in Smart Cities Enhancing urban mobility and
Mission, public transport, and quality of life
road infrastructure
National Geospatial Mission Rs. 100 crore new initiative Facilitating better decision-making
launched to modernise land and resource allocation in urban
records and improve urban development
planning
Additional Initiatives Incentives for electricity distribu- Encouraging states to improve
tion reforms and intra-state trans- power distribution and urban
mission infrastructure
SCIENCE, TECHNOLOGY AND SPACE
Category Allocation / Investment Key Focus Areas
Budget Allocation (Depart- Rs. 20,000 crore for private Boosting innovation, research,
ment of Science and Technology- sector-driven R&D fund, focusing and technology development in
DST) on deep tech and sunrise sectors emerging sectors
Department of Space (DoS) Rs. 13,416.2 crore (increase Strengthening ISRO projects,
from Rs.11,725.7 crore in space applications, and human
2024-25), including Rs. 6,103.6 spaceflight programmes
crore for capital expenditures
and Rs.7,312.6 crore for revenue
expenses
Support for Domestic Manu- Zero customs duties on satellite Encouraging domestic space
facturing installation and launch vehicle manufacturing and reducing
components from February 2025 dependence on imports
Geospatial Mission New National Geospatial Mission Advancing geospatial intelligence
to enhance spatial data capa- for urban development and
bilities for urban planning and resource management
infrastructure
Department of Biotechnology Rs. 3,446 crore (50% increase Supporting biotech startups and
(DBT) from Rs. 2,440 crore) to support fostering biotechnology advance-
biotechnology startups and related ments
initiatives
Council of Scientific and Rs. 6,657.78 crore for ongoing Promoting scientific research and
Industrial Research (CSIR) research activities, maintaining industrial applications in various
previous year's funding levels fields