The Union Budget 2025, presented on February 1, is marked by key proposals aimed at bolstering India’s economic resilience and inclusive growth. Finance Minister Nirmala Sitharaman has outlined several strategic initiatives focusing on health insurance, tax reforms, and support for small and medium enterprises (MSMEs), among others.
One of the main highlights of the budget is the push for greater health insurance penetration across the nation. Industry leaders like Mukul Bhatia, Managing Director of Lockton India, have emphasized the importance of this initiative. "The Union Budget 2025 offers a significant opportunity to accelerate the adoption of health insurance and to bolster financial security across India," he said. This move aligns with India's ambition to achieve universal insurance coverage by 2047 by introducing targeted incentives for corporations. These are intended to encourage comprehensive health insurance plans for employees, thereby enhancing the nation’s economic resilience.
Sitharaman, during her presentation, revealed plans to offer tax-free earnings for individuals earning up to ₹12 lakh, thereby providing relief to the middle class and stimulating spending. This shift is seen as pivotal for supporting household consumption and injecting liquidity back to the economy. "Earnings up to ₹12 lakh will remain tax-free under the new tax regime, offering relief to the middle class and encouraging higher spending," she announced.
Another significant aspect of the budget is the empowerment of MSMEs. Sitharaman announced increased investment and turnover limits for these small enterprises, enabling over 1 crore businesses to contribute more effectively to India’s economic growth. Reported by The Economic Times, this move aims to uplift the small business sector, which has been deemed the backbone of the Indian economy.
Agriculture also received attention through reforms aimed at increasing agricultural credit. The Kisan Credit Card limits have been raised from ₹3 lakh to ₹5 lakh, coupled with initiatives focusing on irrigation projects and crop diversification to boost productivity within the sector.
Digital infrastructure development is another major focal point. Plans to expand broadband connectivity to government schools and rural health centers are part of the government’s broad strategy to strengthen access to digital services. The intention is to bridge the digital divide and support wider availability of educational and healthcare services.
For the startup ecosystem, the government is establishing a new ₹10,000 crore fund to fuel innovation, particularly within the tech and manufacturing sectors. This initiative is expected to create numerous job opportunities, fostering growth and creativity among aspiring entrepreneurs.
Tourism has also been earmarked for enhancement, with Sitharaman outlining plans to develop 50 tourist destinations across India. This initiative is anticipated to not only boost tourism but also provide employment opportunities and highlight the country’s rich cultural heritage.
Healthcare investments are set to grow, with additional resources allocated to increase medical college seats by 10,000 next year. Tax exemptions on life-saving drugs are also included, making healthcare more accessible to the broader population. "Our vision at Lockton India is to provide innovative insurance solutions, and we believe progressive reforms can enable the insurance sector to play a pivotal role," stressed Bhatia.
Overall, Nirmala Sitharaman's Union Budget 2025 reflects her vision for balanced and inclusive growth, focusing on the youth, farmers, women, and businesses, which is fundamental as India seeks to reinforce its position on the global economic stage.