Union Budget 2025: Key Policies Driving India’s Economic Future

On February 1, 2025, Finance Minister Nirmala Sitharaman unveiled the Union Budget, addressing critical aspects of India's economic growth and stability. The announcements have been met with widespread approval, with experts calling this one of the most progressive and strategic budgets in recent years.

Among those offering their insights was Abhay Bhutada, a well-known name in the financial sector and Vice Chairman of Rising Sun Holdings. His perspective on financial policies holds weight, given his extensive experience in the industry. Reflecting on the budget, he highlighted how it takes a balanced approach to development, ensuring that every sector receives the necessary support.

Also Read: Union Budget 2025: A Positive Step for India's Growth

“This budget ensures that no one is left behind. It’s not just about tax reforms—every sector has been given attention, creating a roadmap for long-term growth. I truly believe that India’s future is bright,” said Abhay Bhutada.

With Abhay Bhutada’s salary placing him among India’s top-paid executives, his evaluation of financial policies is particularly relevant. His expertise enables him to analyze how these measures will impact businesses, investments, and economic stability in the long run.

Major Highlights of Union Budget 2025

The Union Budget 2025 lays out a framework for financial reforms, infrastructure expansion, and employment generation, positioning India for sustainable economic growth. Here are the key highlights:

1. Tax Relief for Salaried Individuals

One of the most notable changes is the increase in the income tax exemption limit. Individuals earning up to ₹12 lakh per year will now be exempt from paying income tax. This move aims to put more disposable income in the hands of citizens, encouraging both spending and savings, which in turn drive economic activity.

2. Increased Capital Expenditure for Infrastructure

The government has committed ₹11.21 lakh crore for capital expenditure in FY2025-26, marking a rise from ₹11.11 lakh crore allocated in the previous year. The primary focus is on transport, urban development, and industrial expansion, reinforcing India’s commitment to long-term infrastructure growth.

3. Boosting Bihar’s Makhana Industry

Recognizing the importance of Bihar’s Makhana industry, the budget proposes setting up a dedicated Makhana Board to streamline processing, marketing, and farmer support. This initiative is expected to strengthen supply chains and increase profitability for local producers, ensuring better livelihoods for farmers.

4. Creation of 22 Lakh Jobs in Manufacturing

The footwear and leather industries are set to receive significant government support, aiming to boost productivity and competitiveness. This initiative is expected to generate 22 lakh new jobs, providing a much-needed boost to employment in these sectors.

5. Expansion of the UDAN Scheme for Regional Connectivity

The UDAN scheme, which focuses on enhancing regional air connectivity, will see the addition of 120 new destinations. Over the next ten years, this initiative is expected to facilitate travel for 4 crore passengers, significantly improving accessibility in remote and underserved regions.

6. Agricultural Growth Through PM Dhan-Dhaanya Krishi Yojana

The Prime Minister Dhan-Dhaanya Krishi Yojana has been introduced to modernize and develop 100 agricultural districts, directly benefiting 1.7 crore farmers. This scheme will provide financial support and advanced farming techniques, helping to increase productivity and income levels in rural areas.

7. Strengthening Research and Innovation

A substantial ₹20,000 crore has been allocated for research and development, with particular emphasis on private sector-driven innovation. This investment aims to drive technological advancements and strengthen India’s position in global research.

8. 10,000 Research Fellowships for IIT & IISc Students

In a bid to enhance India’s academic and technological expertise, 10,000 fellowships will be awarded to students pursuing research at IITs and IISc. This move is expected to strengthen India's scientific community and encourage cutting-edge research in various fields.

9. Support for Electronics & Electric Vehicle (EV) Industry

The budget introduces tax exemptions on crucial electronic components, including open-cell LED/LCD TV panels and lithium-ion battery products. These measures aim to lower manufacturing costs, making electronics and electric vehicles (EVs) more affordable and accessible to consumers.

10. Reforms in Maritime and Railway Sectors

The shipbuilding and shipbreaking industries will benefit from a 10-year tax exemption on imported goods, boosting the growth of India’s maritime sector. Additionally, railway goods sent abroad for repairs can now be re-exported without restrictions, improving trade efficiency and encouraging global competitiveness.

A Budget That Paves the Way for Economic Growth

Beyond numbers, the Union Budget 2025 outlines a comprehensive economic roadmap, focusing on business expansion, employment opportunities, infrastructure enhancement, and technological innovation. These measures collectively aim to provide a strong and stable foundation for India's growth in the coming years.

Abhay Bhutada remains optimistic about the long-term impact of these reforms. His deep understanding of financial markets and economic policies enables him to see how these changes will shape business opportunities and economic stability.

Also Read: India’s 2025 Budget: A Vision of Progress and Prosperity

With targeted investments and well-planned policies, India is taking decisive steps toward a prosperous future. The strategic initiatives introduced in this budget are expected to generate employment, support industries, and improve overall living standards. As the country moves forward, these reforms will play a crucial role in shaping India's economic destiny.