The Union Budget 2025, introduced by Finance Minister Nirmala Sitharaman on February 1, aims to transform key sectors of India's economy, enhancing access to credit for farmers, boosting infrastructure, and supporting technological advancement.
One major highlight is the increase of the Kisan Credit Card (KCC) limit from ₹3 lakh to ₹5 lakh. This initiative is intended to provide farmers with greater financial access, allowing them to invest more effectively in modern farming techniques and necessary inputs such as seeds and fertilizers. Sitharaman emphasized this move as pivotal for rural development, marking another step to bolster India’s agricultural community, which the KCC scheme initially aimed to support since its inception in 1998.
Another significant aspect of the budget is the doubling of credit limits for Micro, Small, and Medium Enterprises (MSMEs) to ₹10 crore. With over 1 crore registered MSMEs employing around 7.5 crore individuals, this increase recognizes the sector's role as a backbone of the economy. Sitharaman also announced special loan facilities for women entrepreneurs and first-time SC/ST entrepreneurs, reinforcing the budget's focus on inclusivity.
To address the challenges of the digital age, the budget introduces Centres of Excellence for Artificial Intelligence with an investment of ₹500 crore. Each center will receive ₹100 crore to develop cutting-edge education and research, aiming to equip India’s workforce with necessary skills for the future digital economy.
Healthcare also sees significant investments, with plans to add 75,000 new medical seats over the next five years, including 10,000 seats to be added by next year. This expansion is seen as part of the government's broader commitment to improve medical education and healthcare access.
The budget also included provisions for the footwear and leather sector, which saw stock prices surge up to 13% following announcements about focused product schemes aiming to boost domestic manufacturing and exports.
Transitioning to infrastructure, the modified UDAN scheme aims to improve regional connectivity, introducing services to 120 new destinations. Sitharaman noted this initiative is expected to support 4 crore additional passengers over the next decade, reinforcing air travel's role as a key driver of economic growth.
Another significant boost included within the aviation sector focus is the proposed establishment of new greenfield airports, particularly benefiting Bihar, where capacity expansion at Patna airport will be undertaken to meet rising demands.
Despite the promising reforms, the budget reduced allocations for the Ministry of Civil Aviation from ₹2,922.12 crore to ₹2,357.14 crore compared to the previous year. Similarly, the budget for the regional connectivity scheme was significantly cut from ₹850 crore to ₹502 crore. These reductions highlight the balancing act the government must perform to stimulate growth across various sectors.
Industry leaders have responded positively to the budget. Rikant Pittie, CEO and Co-Founder of EaseMyTrip, commented, "The Union Budget 2025 presents a transformative vision for India's travel and tourism sector, reinforcing its role as a key driver of economic growth and employment." Meanwhile, Vinay Dube, CEO of Akasa Air, remarked, "The Union Budget 2025 marks a significant step for the sustained growth of India’s aviation sector. We commend the government’s commitment to infrastructure, which will make air travel more accessible to many, boosting tourism and the economy as a whole."
Overall, the Union Budget 2025 is framed around the ideas of growth, inclusivity, and sector-specific investments, marking the government's intent to create avenues for progress. With significant measures across agriculture, MSMEs, education, and infrastructure, the budget is positioned as both timely and impactful for the Indian economy, paving the way for sustainable development and growth.