Finance Minister Nirmala Sitharaman just dropped the Budget 2025-26, and whether you’re a taxpayer, farmer, business owner, or just someone curious about nuclear energy (yes, that’s a thing this year), there’s something in it for you!
Big Relief for Taxpayers – More Money in Your Pocket!
The government is giving the middle class a major tax break by increasing the tax-free income limit to ₹12.8 lakh per year (up from ₹7 lakh). Translation? You keep more of your hard-earned money!
Example: If you were earning ₹10 lakh per year, you previously had to pay tax on ₹3 lakh. Now? Zero tax. Nada. Zilch.
More savings, more splurging or more investments?
What will this extra cash fund?
GROWTH! (Or that’s what we expect)
Additionally, the 30% tax rate now kicks in only above ₹24 lakh (earlier, it was ₹15 lakh). Higher earners get a breather too!
Farmers & Rural India Get a Boost!
The government is going all in on agriculture with the Prime Minister Dhan-Dhaanya Krishi Yojana—focusing on 100 districts and helping 1.7 crore farmers with better irrigation, modern equipment, and financial aid. Sounds like a great plan!
Farmers, fishermen, and dairy workers can now get short-term loans up to ₹5 lakh at lower interest rates. More access to cash would provide more growth opportunities for higher investments in rural areas.
Example: A farmer who needs cash to buy seeds or equipment can now get a cheaper loan and pay it back after harvest, without breaking a sweat and with the support from the government. Hopefully!
Infrastructure Gets a Push (But Not a Huge One)!
The government has earmarked ₹11.2 trillion for roads, railways, and urban development. But experts feel this could have been higher to truly boost economic growth.
To our surprise, the previous years budget for CAPEX has spiked by a mere 10% as there was some budget that was not spent in the previous year. WOW!
A country that is developing in every city and village must have a very strong reason to not have spent it’s infrastructure budget. It’s a serious concern and highlights lack of planning and execution
Example: Tired of potholes and slow metro projects in your city? This budget might speed things up—but don’t expect overnight miracles.
Who’s winning?
Consumer goods companies (like Nestlé & Hindustan Unilever) → More money in people’s pockets = more Maggi and KitKats flying off the shelves.
Car companies (like Maruti Suzuki, Hyundai, Tata Motors etc) → When people feel financially stable, they upgrade their rides!
Companies offering high value products and services will be the real winners as the major base under the 12 lakh bracket is Gen Z entering the workforce, and they have unique characteristics for consumption.
Who’s struggling?
Infrastructure giants (like Larsen & Toubro) → Their stocks dipped on budget dat because the capital spending wasn’t as high as expected.
Insurance companies (like HDFC Life) → With fewer tax benefits on traditional insurance plans, home loans, pension schemes etc, some customers might rethink their policies. No incentives for investment and planning, however people with this extra income should save some or major part for the volatility in the economy in the near future.
India is Opening Up its Nuclear Energy Sector!
For the first time ever, private and foreign players can invest in nuclear energy. This could mean more power plants, cleaner energy, and big technological advancements.
Example: Previously, companies like Tata Power couldn’t invest in nuclear energy. Now, they can team up with global firms to expand India’s energy sector.
VERDICT:
The 2025 Union Budget focuses on tax relief for the middle class, support for farmers, and incremental infrastructure spending, but lacks bold reforms that could drive long-term economic transformation.
✅ The Good:
- Tax relief puts more money in the hands of individuals, boosting consumer spending.
- Farmers and rural workers benefit from low-interest loans and targeted schemes.
- Infrastructure investments in roads, railways, and urban projects continue, though at a modest pace.
- Opening up nuclear energy to private and foreign players signals progress in energy security.
❌ The Concerns:
- Flat capital expenditure (₹11.2 trillion) could slow down major infrastructure developments.
- No major structural reforms in manufacturing, banking, or labor markets to accelerate long-term growth.
- GDP growth is expected at 6.4%, but experts say more aggressive investments are needed to sustain momentum. This is low for a developing economy standards.
Final Take:
This budget benefits taxpayers and rural India in the short term but lacks the big investments and policy shifts needed to make India a 7%+ growth economy.
It’s a safe and balanced budget, but not a game-changer.
That’s what she said! 😛
