Union Budget 2025 Highlights: Old tax regime still available but we expect all to shift to new regime, says FinMin

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The Union Budget 2025-26 has drawn contrasting reactions from leaders in Rajasthan, with Deputy Chief Minister Diya Kumari hailing it as a "game changer for inclusive growth," while former Chief Minister Ashok Gehlot dismissed it as offering no relief from unemployment, inflation, or the rising trade deficit.

Kumari praised the budget’s focus on all-round development, particularly in promoting industry and tourism. She highlighted the income tax exemption for annual incomes up to Rs 12 lakh as a major relief for the middle class, saying it would boost disposable income, spur consumption, and drive domestic demand. She also lauded the decision to develop tourism destinations in collaboration with state governments, calling it a "huge boost" for the sector. Additionally, she welcomed the emphasis on micro, small, and medium enterprises (MSMEs), which she described as the "second engine of growth," fostering self-employment and strengthening small industries.

However, Gehlot took a critical stance, accusing the budget of failing to address key economic challenges. "Why does the central government not mention its promise of making India a $5 trillion economy by 2022?" he questioned in a post on X. He argued that the budget ignored issues like the rising dollar value, trade deficit, and joblessness.

Hailing the Union Budget 2025-26, Tripura Chief Minister Manik Saha on Saturday described it as a roadmap for a developed and self-reliant India.

In a social media post, Saha emphasized that the budget takes care of farmers, the poor, and the middle class. He also highlighted provisions addressing various sectors, including education, healthcare, startups, and innovation.

"...this budget is the roadmap for Modi ji's Aatmanirbhar Bharat. Kudos to Hon'ble PM Narendra Modi ji & Hon'ble FM Nirmala Sitharaman ji. #ViksitBharatBudget2025," he stated.

"ICAI commends the proposals put forth in the finance bill today. The new tax regime enhances the tax exemption limit to 12.75 lacs and further the rationalised TDS and TCS rates and the enhanced limit for tax deduction on interest for senior citizens and TDS on rent. Further, deeming the annual value of 2 Self Occupied House property as nil instead of erstwhile one, is also a great move. The budget also focuses on ease of doing business, promote domestic manufacturing and position India as a more competitive player in global trade, supporting economic resilience and growth. Suggestions given by ICAI in Pre-budget memorandum regarding the finance bill 2025, phasing out of alternative tax regime, rationalization of TDS and TCS regime, exemption of withdrawal from NSS and taxation of business trusts has also been accepted."

"The budget presented by Nirmala Sitharaman is a welcome move, and I support all the proposals. I particularly appreciate the exemption of income tax for individuals earning up to Rs 12 lakhs, which provides significant relief to the middle class and lower middle class. I thank Union Finance Minister Nirmala Sitharaman for this. Additionally, the announcement to construct a fertilizer factory with a capacity of 12,70,000 metric tonnes is a major step forward."

"Union Budget 2025 has brought the most significant change to personal income tax rates since the dream budget of 1997 by P Chidambaram when peak rate was reduced from 40% to 30%. An extra Rs 1 Lakh crore in the hands of tax payers, will not just boost consumption, but in my belief a lot will be saved and invested in capital markets. This is the biggest positive of this budget.Light Tough regulatory framework, Trusting the tax payers are the other 2 themes which in my understanding will go a long way in making India a $10 Trillion economy.

Lastly, an unwavering path towards fiscal prudence. Limited but impactful changes".

Uttarakhand CM Pushkar Singh Dhami stated today, "The Union Budget 2025 reflects the farsightedness of PM Modi, fulfilling the vision of a 'Viksit Bharat' and empowering the middle class. This budget caters to farmers, the poor, women, and every section of society. The provision of no income tax up to Rs 12 lakh will undoubtedly uplift the middle class. I congratulate Finance Minister Nirmala Sitharaman and Prime Minister Narendra Modi for this inclusive and forward-looking budget."

“The Honourable Finance Minister said that the focus of the government is on the poor (Garib), youth (Yuva), farmers (annadata) and women (naari). She has matched her words with actions, and the policies and measures announced will go a long way in empowering these sections of our society. At Swiggy, in one way or another, we are involved in all these facets- our workforce and delivery partner cohort is extremely young and we are creating significant job opportunities, we are getting more and more women in formal economy through entrepreneurship and gig opportunities, our retail business has a direct beneficial impact on our farmers. The Finance Minister’s speech has been very motivating, and we will continue to work hard and contribute in our small way to India’s progress.”

“India stands at a defining moment, where AI-driven innovation, digital infrastructure, and a future-ready workforce will determine its global leadership in the digital economy. The Union Budget 2025 is more than a fiscal plan—it is a bold blueprint for a stronger Digital India, prioritizing technology-led development, AI-driven modernization, and inclusive economic growth.

As someone who has witnessed India’s financial and technological evolution, I see this budget as a pivotal inflection point in our journey towards a Viksit Bharat—one that is built on innovation, sustainability, and inclusivity.

The government’s commitment to advancing AI and deep-tech through initiatives like the DeepTech Fund of Funds and 10,000 fellowships for technological research in IITs and IISc reflects a vision for India to lead in automation and emerging technologies. The focus on Global Capability Centers (GCCs) in Tier-2 cities will further unlock AI-powered digital services, fostering regional innovation and new employment opportunities at scale.

Skilling remains the linchpin of this transformation. With one of the world’s largest talent pools, India has a unique opportunity to drive the AI revolution, but achieving this requires rapid upskilling, industry collaboration, and democratized learning. The government’s investment in 50,000 Atal Tinkering Labs, a ₹500 crore Centre of Excellence for AI in Education, and five National Centres of Excellence for Skilling aligns seamlessly with our mission at Salesforce. At Salesforce, through Trailhead and our Salesforce-AICTE Virtual Internship Program, we are equipping thousands of learners with AI, cloud, and automation skills to thrive in tomorrow’s workforce.

MSMEs are not just the backbone of India’s economy—they are the engine of innovation, employment, and economic resilience. By revising investment and turnover thresholds and enhancing credit availability, the government is ensuring that MSMEs can scale competitively on a global stage while fostering a culture of innovation.

True digital transformation is built on diversity and inclusion. The Government’s ₹2 crore term loan scheme for first-time women entrepreneurs, Scheduled Castes, and Scheduled Tribes demonstrates a strong commitment to fostering inclusive economic opportunities. Technology has long been a great equalizer, opening doors for women in leadership, entrepreneurship, and STEM. For India to lead in the digital era, innovation must be inclusive, empowering all to thrive in the AI-driven economy.

Finally, India’s sustainability ambitions take center stage with initiatives like the National Manufacturing Mission, investments in clean tech, and AI-enabled energy efficiency solutions. Furthermore, as announced, the Nuclear Energy Mission aims to develop 100 GW of nuclear power by 2047, marking a significant step in India’s clean energy transition. This initiative strengthens energy security and sustainability while supporting the growing demand for high-performance, AI-driven data centers. With nuclear power offering a reliable, high-output solution, it will be a key enabler of India’s digital expansion and innovation-driven economy.

India’s journey toward Viksit Bharat is driven by technology, digital infrastructure, and workforce skilling. The Union Budget 2025 accelerates economic growth while empowering businesses and individuals to lead the nation’s digital transformation. The budget’s focus on AI-driven modernization, digital skilling, and startup growth aligns with this vision".

“The budget's focus on establishing a National Manufacturing Mission aligns with our goal of engineering in India for 'Make in India' and enhancing the nation's self-reliance in manufacturing. This initiative is poised to attract investments and improve efficiency, positioning Indian companies as globally competitive players. The establishment of five National Centres of Excellence for Skilling is a pivotal move in building a future-ready workforce. This initiative resonates with our commitment to engineering a better future for India's youth through investment in in-demand training programs across Industry 4.0, IoT, and advanced manufacturing, and collaborating with state governments to upgrade ITIs into technology hubs. Additionally, the allocation of ₹500 crore for a Centre of Excellence in Artificial Intelligence for education underscores the importance of fostering innovation and research in AI, which will benefit both the education sector and the broader technology landscape.”

TMC leader Kunal Ghosh slammed the Union Budget 2025, calling it as "anti-people" and "anti-poor." Ghosh accused the budget of offering no hope to key sections of society, including the poor, middle class, women, and farmers.

"This budget is anti-people and anti-poor, it is directionless budget giving no hope to the poor, middle-class, women and farmers. This budget is not in the interest of people...there is no mechanism to control inflation..."

"The Union Budget 2025-26 is holistic in its approach and has been well thought out as it addresses all sections of the society - students, farmers, the economically weak and women - which is a must for India to move forward. The Budget takes significant steps to strengthen India's manufacturing sector, boost MSMEs, and enhance supply chains, reinforcing the Make in India vision. By supporting domestic industries and easing business regulations, it paves the way for companies like Godrej Enterprises Group to contribute more effectively to the country’s progress through innovation and engineering. The government’s focus on advanced technology, with funding for deep tech and 10,000 new research fellowships, will drive growth in critical sectors such as clean energy, aerospace, and defence where we continue expanding our expertise. The ₹20,000 crore investment in Small Modular Reactors under the Nuclear Energy Mission is a strong step toward energy self-sufficiency and sustainability, strengthening India’s position in green technology and reinforcing our commitment to Atmanirbharta."

"Unlike other countries, the Union Budget in India happens to be one of the most watched out events in the financial calendar as it outlines the Government's near-term priorities and long-term vision. We believe, the Budget for 2025-26 has done a commendable job of striking a delicate balance between growth impetus and desired fiscal consolidation amidst a challenging global environment.

Like the previous two terms, the government seems to have used the Budget as a platform to convey its policy intent for remainder of its term. Set against the backdrop of domestic growth slowdown and weak global cues, this Budget seems to have laid a balanced strategy for fostering economic growth without losing sight of fiscal responsibility.

Government has been doing heavy lifting on public capex. Now, spurring consumption by putting more money in the hands of taxpayers is a step in the right direction. Government’s intention of investing in economy, people and innovation was the need of the hour to harness India’s demographic edge. With a young and growing population, focus on employment generation is a pre-requisite. Set-up of Fund of Fund aimed at start-ups, alongwith a focus on MSMEs fosters entrepreneurship.

Ease of doing business along with initiatives like these are necessary to transform India from a nation of job-seekers to one of job-creators. Unlike growth of other emerging economies like China, India’s noble aspiration of Viksit Bharat encompassing zero poverty, inclusive-quality education and comprehensive healthcare could set India’s growth story apart from the rest. Social security for gig workers could be a noteworthy game-changer in the pursuit of inclusive sustainable growth".

"The Union Budget 2025 prioritizes consumption-driven growth. Measures like simplified tax structures and reduced surcharges combined with a focus on agriculture and rural incomes should boost overall sentiments, consumption, savings, investments and support key sectors like consumer durables. The ~1.5 lakh crore capital expenditure/investment is expected to generate a ~ 3-4 lakh crore multiplier boost to the economy. Expected interest rate cuts will lower capital costs and fuel economic expansion and employment. All of this should improve economic and market sentiments in an uncertain global order and boost investor confidence. Despite short-term market volatility, robust fundamentals make India a promising opportunity for long-term investors."

"Budget remains on its fiscal consolidation path. Focuses on simplification of tax structure to ensure ease of business. A big boost to consumption by giving more money in the hand of consumers. Thus, a balanced budget with focus on stimulating demand side which was the need of the hour and moderate growth in investments. For investments, the baton needs to now shift to private sector to do the heavy lifting. From market perspective we could see some sector rotation into consumer facing sector from investment related sectors. We believe this budget and a further easing of liquidity in the monetary policy next week, will pave the way for recovery in the economy".

The Union Budget 2025 underscores a strong commitment to financial empowerment, digital inclusion, and economic growth, according to Ondrej Kubik, CEO of Home Credit India.

Kubik welcomed the government’s push to expand access to formal credit, strengthen digital financial literacy, and foster a robust fintech ecosystem, aligning with Home Credit India's mission of financial inclusion.

He highlighted the budget’s focus on supporting middle- and lower-income groups, enhancing consumer protection, and promoting responsible lending practices.

“The emphasis on ease of compliance, ease of doing business, rationalisation of customs duties, and broadening the scope for MSMEs, along with continued support for the agrarian economy, are all positive steps reinforcing the core growth elements,” Kubik said.

The Union Budget 2025 has reinforced India’s commitment to achieving Net Zero by 2070 with key policy measures aimed at strengthening the clean-tech manufacturing ecosystem, according to Mohal Lalbhai, Co-founder & Group CEO of Matter Motor.

Lalbhai welcomed the exemption of Basic Customs Duty (BCD) on critical EV minerals and the duty-free status for 35 battery components, stating that these measures will help secure the supply chain, reduce costs, and accelerate the adoption of electric vehicles (EVs) in India.

“The budget’s tax incentives for green investments and startup-friendly policies will further drive clean-tech growth, aligning with the ‘Make in India, Make for the World’ vision,” Lalbhai added.

Business chambers in West Bengal have lauded the Union Budget 2025-26, describing it as “progressive” and “forward-looking,” with a strong focus on tax reforms, infrastructure development, and the MSME sector.

The Confederation of Indian Industry (CII) Eastern Region termed the budget as “balanced and inclusive,” highlighting its emphasis on accelerating growth, boosting private sector investment, and enhancing middle-class spending power.

Karnataka CM Siddaramaiah, sharply criticising the Union Budget 2025 tabled today, remarked,  " This is a very disappointing budget, It is a budget without vision. This budget has not met the demands of Karnataka state. The central government has not announced any of the projects we requested from Karnataka in this budget. The Union Budget, from the country's perspective, might be fine, but from Karnataka's perspective, it is very disappointing. They have given an empty vessel to Karnataka full stop no money has been allotted to the irrigation projects in Karnataka..."

Kamal Bali, former Chairman of CII Southern Region, stated that the Budget's increased focus on capital expenditure (capex) and tax relief for middle-income groups will fuel demand growth and employment opportunities.

He stated, "The sustained focus on capex and more money in the hands of the middle-income group will provide a fillip to demand growth and employment, while being fiscally responsible."

Rabindra Srikantan, Vice-Chairman of the CII Karnataka State Council, commended the Budget’s focus on progressive reforms aimed at boosting manufacturing and improving the ease of doing business. He also highlighted the government's push for clean energy and technological advancements, saying, "The push for clean energy, technology advancement, and a robust logistics ecosystem further accelerates India's transformation."

Industry leaders in Karnataka have hailed Union Budget 2025 for its emphasis on infrastructure development, economic reforms, and support for key sectors, which they believe will drive innovation, investment, and job creation.

Ajay Singh, Chairman and Managing Director, SpiceJet, "This is a forward-looking, middle class-friendly budget that promises to boost spending, stimulate development, and set the stage for India’s growth in the coming years".

The SpiceJet MD further noted, "With the launch of a modified UDAN scheme that will introduce 120 new destinations and bring 4 crore additional passengers into the fold over the next decade, the aviation landscape in India is set for a transformative shift. This initiative will not only make air travel more accessible to remote regions but will also drive economic growth and tourism, further empowering local economies".

"UDAN has proven to be one of the most successful schemes under the Modi government, and as the first private airline to participate, SpiceJet remains fully committed to actively supporting its continued growth," Singh also added.

MGNREGA is a demand driven scheme, if there is demand, we increase it

MGNREGA is a demand driven program. So the revised estimate shows the figure accordingly

FM on are we drawing the curtain on sovereign gold bond scheme: In a way, yes

75% taxpayers have moved to the new Income Tax regime.

We expect all taxpayers to move to the new tax regime

KCC will support farmers doing commercial farming

DEA secy: Entire plan on asset monetization should be out soon

Debt to Gdp ratio on a declining trend

If more NSS inflows, market borrowing will go down

Income is always calculated without capital gains

Draft insurance bill includes simplification of rules

It is not as if there is no thirst for capex, but it will continue at a pace where we can build on the developments

Some ministries may need more in capex, some may plateau

Not foregone capex for revenue expenditure or consumption spending

One crore more people to benefit on 12 lac income tax rebate

Tax simplification would be about simplifying language and focus on that there are too many exemptions

No relenting on privatisation of banks

Nearly 2 lakh more money at disposal of those earning up to 12 lakh

Across the board tax rates brought down with revision In tax slabs

FM on tax cut: We have put substantial amounts in the pockets of people who deserve it

Changes in income tax slab to benefit every tax payer at every level

Slab reduction for everyone, and those who earn up to 12 lac will get more benefit

Expect income tax relief to boost consumption

Step to give income tax rebate given as we see it coming back to the economy in terms of consumption, savings and investment

Fiscal deficit for FY26 aligns to the glide path given in 2021. Fiscal prudence has been maintained.

Continue to put emphasis on multiplier effect of capex

No reduction on public spending on capex

Tariffs are being brought down & simplified in this Budget

Budget has responded to the voice of the people. It is a responsive government. Income tax simplification has already been completed and bill will be brought next week

The approach in this Budget has been to focus on areas that need immediate intervention

Budget has given a plan for how to take the economy towards Viksit Bharat

Budget looks at agri, rural prosperity, focusses on urban workers and continues to lay emphasis on reforms

Education and health has been prioritised

Former NITI Aayog CEO Amitabh Kant said, "... This is the first time that a budget has given such a huge tax relief of Rs 1 lakh crore to the middle class... It will enable a boost in consumption, production, investment, and growth in the long term. It has been done in a fiscally responsible way and by considering the macroeconomic stability... The focus on nuclear energy and the opening of insurance will greatly benefit the country in the future..."

Rajiv Memani, President-designate of CII, hailing the tax relief for middle class in Budget 2025, stated, "We were anticipating, there would be some relief, most of the people thought that it will go up to 9-10 lakh, but no one anticipated such a big relief. So thanks to the FM for doing this. This will be a big relief to all the tax payers especially the lower income, middle income people, it will definitely give much bigger impetus on urban consumption, and also over a period of time, greater amount of private capex will get facilitated through this, so it is a positive change, and much required. People were getting affected because of high interest rates, inflation, it's a good relief to people."

BJP President JP Nadda also praised the Union Budget 2025 as a "visionary roadmap" that reflects the dreams and aspirations of 140 crore Indians.

Nadda stated, “The Union Budget 2025 is a visionary roadmap that embodies the aspirations and dreams of 140 crore Indians, lighting the way towards PM Narendra Modiji’s vision of a 'Viksit Bharat.'”

He further highlighted that the focus on four key sectors—agriculture, MSMEs, investment, and exports—would ensure that no one is left behind in the journey toward progress, benefitting the poor, youth, farmers, and women.

Gaurav Pandey, Co-Chairman, FICCI Committee on Urban Development and Real Estate and Managing Director and CEO, Godrej Properties Ltd., hailing the Union Budget 2025, stated, "This is a very encouraging budget and shows the government's focus on strengthening the economy and ensuring long-term robust economic growth. Some of the steps taken by the government will significantly boost consumption demand.

The emphasis on infrastructure initiatives and overall capex estimates for the next FY are significant. The heartening thing has been the ability to manage fiscal prudence and reduced fiscal deficit projections in FY25E and FY26. This makes the sustenance of growth more probable and long-term".

Pieter Elbers, CEO, IndiGo, hailing the Budget, stated, "The Union Budget 2025 has outlined various great initiatives to further develop a future-ready travel ecosystem, with emphasis on people and infrastructure, and aviation as a key enabler. Investment in developing world-class airports, enhancing regional connectivity, capacity upgrades, procedures, regulatory framework and streamlined visa facilities, will all play critical role in bringing this vision of developing India into a global aviation hub to life".

He further added, "By strengthening both domestic and international connectivity, we are fueling economic progress, bridging communities, and reinforcing aviation’s role as a catalyst for national growth and collectively building India as a leading global economic powerhouse".

Meanwhile, Defence Minister Rajnath Singh, hailing the Budget presented today, remarked, "The budget presented by FM Sitharaman is a great budget to realise the dream of developed India. All sections of the society have been taken care of in this budget".

"This budget is going to promote the development of youth, poor, farmers, women and all sections and sectors of society...In the budget for the financial year 2025-26, more than Rs 6.81 lakh crore has been allocated to the Defence Ministry, which is about 9.5 percent more than last year's budget allocation and modernisation of defence forces has been the priority of our government and for this also, a capital allocation of Rs 1.80 lakh crore has been made in 2025-26, which will increase the capacity of our forces more than ever before," he further added.

Punjab Chief Minister Bhagwant Mann today expressed disappointment over the Union Budget, slamming the BJP-led government for neglecting the border state.

Mann, leader of the Aam Aadmi Party (AAP), called it an "election budget" that primarily catered to Bihar.

Taking to microblogging site X, he noted, "The Union government has not given anything to the farmers and youngsters of Punjab".

Further elaborating on the Budget, PM Modi, stated, "In this budget, the 'Gyan Bharat Mission' has been launched to preserve one crore manuscripts. A National Digital Repository, inspired by Indian knowledge traditions, will be created, making full use of technology. The announcements made for farmers in this budget will lay the foundation for a new revolution in the agriculture sector and the entire rural economy. Furthermore, the limit of the 'Kisan Credit Card' will be increased to Rs 5 lakhs, providing even more support to our farmers."

In addition, the Prime Minister also stated, "In this budget, priority has been given to every employment sector in all possible ways. I want to highlight the reforms that will bring about significant changes in the near future. By granting infrastructure status, shipbuilding in India will be encouraged, and the Atmanirbhar Bharat Abhiyan will gain momentum. As we all know, shipbuilding is one of the sectors that provides the most employment".

"Additionally, the tourism sector holds immense potential. We are planning to build hotels at 50 key tourist destinations. For the first time, bringing hotels under the infrastructure category will give a major boost to tourism. This will revitalize the hospitality sector, which is a massive source of employment," PM Modi further added.

Further commenting on the Budget, PM Modi noted, "Usually, the budget's focus is on how the government treasury will be filled, but this budget is exactly the opposite. It focuses on how it will fill the pockets of the citizens, how their savings will increase, and how they will become partners in the country's development. This budget lays a strong foundation for this. In terms of reforms, many important steps have been taken, including encouraging the private sector in Nuclear Energy, which is historic. It will ensure a significant contribution of Civil Nuclear Energy in the country's development."

Prime Minister Narendra Modi, applauding the Budget tabled today, remarked, "Today is an important milestone in India's development journey. This is the budget of aspirations of 140 crore Indians. This is a budget that fulfils the dreams of every Indian. We have opened many sectors for the youth. The common citizen is going to drive the mission of Viksit Bharat."

PM Modi stated, "I congratulate Nirmala Sitharaman and her entire team for this Janta Janardan's, People's budget."

Umesh Bhati, Director of Operations at Bayside Corporation stated today, "Budget 2025 lays out a comprehensive roadmap for economic expansion, with a strong emphasis on boosting domestic manufacturing and enhancing India's integration into global supply chains. The government's support for the electronics industry, along with advancements in automation, AI, and digital technologies, will generate demand for specialized commercial real estate in emerging sectors. Additionally, the proposed national framework to promote Global Capability Centres in tier-2 cities is set to drive economic diversification and real estate growth in these regions. With continued infrastructure investments, these initiatives position the real estate sector for robust and sustainable growth across both established and emerging markets."

Union Minister Piyush Goya, remarking on the Union Budget 2025 today, noted, "The Union Budget 2025 offers a lot of solutions. By providing more disposable income to the middle class and offering significant relief in income tax, growth gets a big fillip, encouraging further progress. Along with this, changes have been made in key sectors, especially those that are job-oriented, such as leather, textile, tourism, and toile. The provisions in this budget will create new employment opportunities and facilities. Income levels will rise. Whether it's in technology, manufacturing, agriculture, or tourism, this budget has been crafted with strategic thinking to benefit everyone. It is an inclusive and balanced budget for 140 crore citizens of the country".

Applauding the Budget presented today, Bihar Deputy Chief Minister Samrat Choudhary, "The Union Budget is a historic move that will significantly benefit Bihar. The NDA government, led by Prime Minister Narendra Modi, is committed to the state's faster growth. The Finance Minister's announcements, including the Makhana Board, financial support for the Kosi canal, and enhancements to IIT-Patna, are a testament to this concern".

The government today raised defence expenditure by 7.6 percent, allocating Rs 4.91 lakh crore for the next financial year in the Union Budget 2025.

Prashant Kumar, Managing Director & CEO, YES Bank, reacting to FM Sitharaman's eighth budget today, noted, “The Union Budget remains growth oriented – not only attempting to correct for the cyclical growth concerns but also setting up the platform for a sustained long-term journey for the economy, keeping the focus strongly on the objectives of Viksit Bharat. Importantly, sectors that are relatively more labour intensive in nature have received a boost within the budget – namely agriculture, MSME, footwear and leather, toys, food processing. The focus of the budget has been on ways to improve productivity across various sectors and to provide adequate scope for the MSMEs to expand by enhancing the credit guarantee scheme for them".

Shobana Kamineni, Executive Vice Chairperson of Apollo Hospitals, applauding FM Sitharaman's budget today, remarked, "There were announcements, I liked the fact that there are certain cancer drugs, 36 of them, life-saving drugs, are customs duty exempted, always helps. We are looking at the health of the nation. I liked the fact that there was mention of 'healing India', a super important initiative, just like tourism, I think this would be the cornerstone of making sure that people from all over this region, this is the best country to come for healthcare, to open it, and facilitate ease, I think whether it is a cost of the outcome, India has huge potential to do this... More hospitals will come up, the doctors will be trained better. I also like future proofing of creating more PG seats, more medical colleges... They're nice things from people perspective. The middle-class will have more money".

DMK MP Dayanidhi Maran, reacting to the Budget tabled today, stated, "It's a big letdown for the entire country, especially for the middle class. The FM claims to be giving tax exemption up to income of Rs 12 lakh. But, the very next line, she says that there is 10% tax on Rs 8-12 lakh. That means you say there is no tax, but there is tax. This is basically to woo the voters of Delhi... Since Bihar elections are coming, we see a lot of announcements towards Bihar, which are again fooling the voters of the state."

Meanwhile, opposition MPs briefly walked out of the Lok Sabha during FM Sitharaman's Budget speech, demanding a government statement on the January 29 Kumbh stampede, which claimed 30 lives.

The protest lasted around five minutes before the MPs returned to their seats.

TMC MPs did not participate in the walkout.

After the speech, opposition members sought a discussion on the incident.

Maharashtra Chief Minister Devendra Fadnavis, this afternoon, lauded FM Sitharaman for presenting what he described as an “excellent Budget” for 2025.

Calling it a “dream budget” for the middle class, Fadnavis congratulated the FM on the significant reforms introduced.

"Finance Minister Nirmala Sitharaman has presented an excellent Budget—truly a dream budget for the middle class. I congratulate her on this. The transformation in income tax exemption, with no tax up to Rs 12 lakh, will be a milestone in India's economy," the Maharashtra CM remarked.

Defence’s capex spending doubled in the 11 years the Modi government has been in power, with the share at its highest level of 27.7 percent in 2024-25 compared with 25.2 percent in the previous fiscal.

Income tax rebate of up to Rs 12 lakh under the new regime announced. Salaried employees will not have to pay tax up to Rs 12.75 lakh due to standard deduction

Proposed simplified (new regime) tax slabs

0-4 lakh - Nil

4-8 lakh - 5%

8-12 lakh - 10%

12-16 lakh - 15%

16-20 lakh - 20%

20-24 lakh - 25%

More than 24 lakh - 30%

New income tax bill to be tabled next week

TDS limit on senior citizens’ deposit interest raised to Rs 1 lakh

TDS threshold on rent increased to Rs 6 lakh from Rs 2.4 lakh

TCS on LRS increased to Rs 10 lakh from Rs 7 lakh

TCS on remittance for education is withdrawn, if loans taken from financial institutions

Higher TDS will apply only in non-PAN cases

Senior and very senior citizens - Proposal to withdraw NSS as exempt

Timeline for filing updated returns extended from two to four years. Rs 90 lakhs taxpayers have filed updated returns and paid tax.

Revamped central KYC registry to be launched in 2025

Nearly 85% of 7.5 crore tax return filers to get relief as government provides tax relief to those earning till Rs 12 lakh

• PPPs back in focus on infra. Each infra-related ministry to present a pipeline of PPP projects.

• Urban challenge fund to be set up of Rs 1 lakh crore for redevelopment of cities

• Nuclear energy mission for Viksit Bharat: 100 GW of nuclear energy

• Modified UDAN to be launched to 120 new destinations; greenfield airports to be facilitated in Bihar

• Access to PM Gatishankti data and maps to be provided to private sector

Net market borrowings at 11.5 crore

Government has lowered the tax liability under the Income tax. Under the old regime, the nil tax slab has been raised from Rs 7 lakh earlier to Rs 12 lakh. Under the new tax regime, tax slabs and liability has been lowered providing benefit of Rs 70,000 to Rs 1.1 lakh for income earners in Rs 12 lakh to Rs 25 lakh bracket. Lower taxes would increase disposable incomes in hands of consumers. This is positive for discretionary consumption plays such as Trent Limited, Aditya Birla Fashion & Retail in apparel; Metro Brands, Campus Activewear in footwear; quick service restaurant companies such as Jubilant Foodworks, Devyani International as well as jewellery stocks like Senco Gold, Titan Company and Goldiam International.

-Bharat Gianani, Research Analyst, Moneycontrol Research

Nominal GDP at 10.1%

A demand stimulus is here. A major boost to consumption with Rs 1 lakh crore in personal income tax being foregone. Is good news for sectors such as consumer durables, automobiles, consumer discretionary sectors such as premium FMCG, quick service restaurants and retail sectors

Ravi Ananthanarayanan, Executive Editor – Moneycontrol Pro

Consumption boost as income tax nil up to ₹12 lakh

The Finance Minister’s announcement to make income tax nil up to ₹12 lakh is expected to spur consumption by increasing disposable income.

— Deborshi Chaki, National Corporate Editor, Moneycontrol

FM ends Budget speech with booster shot to middle class

2005: ₹1 lakh

2012: ₹2 lakhs

2014: ₹2.5 lakhs

2019: ₹5 lakhs

2023: ₹7 lakhs

2025: ₹12 lakhs

Equity markets clearly not happy with Budget. Most indices in the red with sharp declines in infrastructure, capital goods and public sector stocks. Clearly the Street and industry expectations of higher capex, boost to private capex and public sector divestment not met -

-Vatsala Kamat, senior associate editor, MC Pro

No income tax payable up to Rs 12 lakh, says FM

FM's income tax announcement receives resounding claps from the House

Democracy, demography and demand are key support pillars, as FM announces PIT reforms

FM propose to exempt withdrawals made under National Savings Scheme (NSS) accounts from tax.

Propose to extend the period of incorporation of startups to 5 years

To support Make India and domestic electronic manufacturing, the government has revised the Basic Customs Duty (BCD) on interactive flat panel displays from 10% to 20% and reduce the BCD on open cell and other components for LCDs and LEDs to 5%. The move will benefit contract manufacturers such as Dixon Technologies.

- Sachin Pal, Principal Research Analyst, Moneycontrol

TCS on LRS increased to Rs 10 lakh from Rs 7 lakh

TCS on remittance for education is removed - out of loan taken from specified financial institutions

TDS threshold limit for rent hiked to 6 lakh

New Udaan scheme will help in building 120 new airports, that will facilitate travel for additional 4crore passengers in next 10 years from 1.5 crores currently. This is expected to benefit travel and tourism players. Airline such as IndiGo, OTA players such as Ixigo, Yatra etc are expected to benefit from this. In addition to these, hotel players such as EIH Hotel, Lemon Tree, and Indian Hotels will also benefit.

Nitin Agrawal, Principal Analyst, Moneycontrol Research

Government would develop 50 tourist destinations to promote tourism and boost employment. Spiritual tourism as well as medical tourism would be focus areas to boost tourism. Government is planning e-visa facilities as well as visa fee waivers for select countries. Focus on tourism is positive for hotel companies like Indian Hotels Company, EIH Limited, Lemon Tree Hotels, Royal Orchid Hotels, Juniper Hotels as well as luggage companies like VIP Industries and Safari Industries. Bharat Gianani, Research Analyst, Moneycontrol Research

TDS threshold from Rs 50,000 to Rs 1 lakh for senior citizens

PIT reforms, rationalisation of TDS and TCS, reducing compliance burden

Cobalt powder and waste, scrap of lithium-ion battery, Lead, Zinc and 12 more critical minerals to be exempted from Basic Customs Duty (BCD)

35 additional goods for EV battery manufacturing, and 28 additional goods for mobile phone battery manufacturing to be added to list of exempted capital goods

While presenting the Union Budget 2025, FM Nirmala Sitharaman announced that a total of one crore gig workers, especially those engaged with online platforms such as Swiggy, Zomato, Zepto, BigBasket and several others, will now get ID cards in a step that recognises their efforts and provides more social security benefits to these workers. Furthermore, a total of one crore gig workers will also get healthcare benefits under the PM Jan Arogya Yojana, registrations for which will be done on the e-Shram portal. The announcements come at a time when the quick commerce sector is booming in India and has already grown to a $6 billion market in four years. This move is expected to boost social security in the booming online coimmerce space- Chandra R Srikanth

New Income Tax bill to be simpler to understand and will reduce litigation

The Budget announcement to hike the FDI limit in the insurance sector from 74 per cent to 100 per cent for select firms translates the Finance Ministry's intent into action and will pave the way for overseas JV partners to hike their stake and accelerate deal activity in the segment - Ashwin Mohan , Senior Editor ( M&A), Moneycontrol

The Government’ gross and net borrowing for FY26 is budgeted at Rs 14.82 lakh crore and Rs 11.54 lakh crore respectively. The planned market issuances are almost the same as FY25. Gross and net borrowing for FY25 stood at Rs 14.13 lakh crore and Rs 11.75 lakh crore. The same level of G-Sec supply implies that Government borrowing will not crowd out the private credit incrementally in FY26. The limited supply will boost the rally in G-Sec.

Neha Dave. Special Analyst, Moneycontrol Research

Propose to continue exemption on BCD for manufacture of ships and its parts for 10 years

FY25 revised capex at rs 10.18 lakh cr

Committee to drive further ease of doing business reforms

The Finance Minister has announced a committee to review and recommend new reforms to enhance the ease of doing business. This initiative aims to streamline regulations, improve efficiency, and attract investments.

— Deborshi Chaki, National Corporate Editor, Moneycontrol

Fiscal deficit as a percentage of GDP is on a declining path as targeted. Revised estimate for capex at INR 10.18 lakh crore, falls short of BE of FY25

-Vatsala Kamat, Senior Associate Editor, MC Pro

Budget streamlines tariff rates further, focuses of deregulation, gives a push to grassroot economy. Largely remains reform focused. Sets out a prudent target of 4.4% for FY 26-staying on the path of fiscal consolidation -Shweta Punj, Moneycontrol