Budget 2025 Live Updates: 'We have heard the voice of the middle class,' FM Sitharaman on Union Budget

FM announced that the Viksit Bharat initiative encompasses:

• Zero poverty
• 100% quality, good school education
• Access to quality, affordable & comprehensive healthcare
• 100% skilled labour with meaningful employment
• 70% women in economic activities farmers making India food basket of world:

• Accelerating growth
• Inclusive Development
• Private Sector Investments
• Uplifting household sentiments
• Enhancing the spending power of India's rising middle-class

• Investment limit for MSME classification to be made 2.5 times.
• Turnover limits for MSME classification to be doubled.

The Budget also makes it easier for MSMEs to get loans

• Credit guarantee cover for MSMEs to be significantly enhanced
• Customized Credit Cards for Micro Enterprises to be introduced

"The investment and turnover limits for classification of all MSMEs will be enhanced to 2.5 and 2 times respectively. This will give them the confidence to grow and generate employment for our youth," Sitharaman said.

India ranks second largest globally in fish production

• Sea food exports – Rs 60,000 crore
• Government to bring in an enabling framework for sustainable harnessing of fisheries from Indian exclusive economic zones

• Plant with annual capacity of 12.7 lakh metric tons to be set up at Namrup, Assam.
• 3 dormant urea plants in the Eastern region had been reopened.

Union finance minister Nirmala Sitharaman is wearing a saree as a tribute to Madhubani Art and the skill of Padma awardee Dulari Devi.

Dulari Devi is a 2021 Padma Shri awardee. When FM visited Madhubani for a credit outreach activity at Mithila Art Institute, she met Dulari Devi and had a cordial exchange of thoughts on Madhubani art in Bihar. Dulari Devi had presented the saree and asked FM to wear it for the budget day.

• Internationally, creation of large industrial parks have been used as a model for promoting cluster based manufacturing. With this in mind, global entities are observing India's potential to emulate such a model, which could serve as a more compelling incentive for them to establish operations in India.
• To ascend the value chain within the manufacturing ecosystem and secure a larger share of the global manufacturing market, policies designed to foster development of new technologies and the creation of Intellectual Property within India could be promoted.
• The Production-Linked Incentive (PLI) Scheme has proven to be a catalyst for growth across various sectors. As we approach the upcoming budget, it is crucial to extend this momentum to the manufacturing of sub-assemblies and components. Reduction in customs duties on raw materials, which are essential for the production of these components and sub-assemblies can be a good start, says EY India.

With the Union Budget 2025-26 set to be presented on Saturday, many are anticipating policy measures to ease the cost of living, including lowering prices of essential household items. The youth are looking for job creation initiatives, while the salaried class is hoping for income tax relief.

"As a homemaker, I believe inflation needs to be controlled. The government should also address rising travel costs, which are becoming a burden," said Sangeeta Singh, a school teacher in Delhi, speaking to ANI.

TG Pradhan, a Mumbai resident, voiced hopes for better tax rebates and improved public transport. "I hope the budget offers a better tax rebate. Also, local train services should be enhanced with increased frequency to make commuting smoother," he said.

Expectations for middle-class relief have surged after President Droupadi Murmu, in her address to the joint session of Parliament, made multiple references to their concerns. Many now anticipate significant budgetary announcements catering to their needs.

• Incentives for a higher investment in research and development and in the manufacturing sector
• Measures to reduce tax litigation and to improve the efficacy of the existing tax dispute mechanisms
• Continuation of rationalisation of TDS/TCS provisions and of capital gain taxation regime
• Reduction of transfer pricing compliance rigour (by extending safe harbour rules, introducing block assessment etc.), says KPMG in India.