💸 Union Budget 2025

Key Tech, Economic & Financial Reforms Driving India's Growth and Innovation

Author

ThinkLetter
February 04, 2025

The Union Budget, presented annually on February 1, is one of the most anticipated financial events in India. It outlines the government’s revenue and expenditure plan for the year, shaping policies that impact individuals, businesses, and the overall economy.

This year’s budget, presented by Finance Minister Nirmala Sitharaman, comes at a crucial time. As India navigates global economic challenges and domestic aspirations, the 2025 budget sets the stage for key reforms and strategic investments.

In this article, we’ll focus on the technology, economic, and financial aspects of the 2025 Union Budget, breaking down the key changes and their potential impact.

Let’s dive in.

🌐 Technology Sector: Innovation & Infrastructure

• AI & Education – ₹500 crore allocated for an AI Centre of Excellence in Education to enhance personalized learning and workforce training. Expansion of IITs will add 6,500+ students, strengthening India’s deep-tech talent pipeline.

• Startups & MSME Digitalization – A ₹10,000 crore Fund of Funds for tech-driven startups. Custom Udyam credit cards (₹5 lakh limit) will help MSMEs invest in AI and automation, driving digital transformation.

• Digital Trade & Infrastructure – Bharat Trade Net (BTN) launched to streamline global trade, while Global Capability Centers (GCCs) expand in Tier-2 cities, attracting foreign investments in R&D.

• EV & Semiconductor Ecosystem – Customs duty exemptions on critical minerals like cobalt, lithium, and rare earths will cut EV and battery production costs, boosting domestic manufacturing.

• 5G & Rural Digital Inclusion – Continued investment in 5G infrastructure, with India Post evolving into a fintech and logistics enabler for rural areas.

📈 Economic Reforms & Growth Initiatives

• Manufacturing & Export Boost – Increased incentives for Make in India and PLI (Production Linked Incentive) schemes, particularly in electronics, semiconductors, and green energy sectors. Simplified tax structures for exporters to enhance global trade competitiveness.

• Infrastructure & Green Energy – A ₹2 lakh crore National Infrastructure Fund for transport, logistics, and smart cities. Expanded green hydrogen and renewable energy incentives to accelerate India’s net-zero emissions goals.

• Agriculture & Rural Development – Strengthening of agri-credit schemes with ₹5 lakh crore allocation. The PM Dhan-Dhaanya Krishi Yojana to boost rural employment, sustainable farming, and agritech adoption.

📊 Financial Sector & Market Reforms

• Taxation & Income Reforms – The income tax exemption threshold raised to ₹12 lakh under the new tax regime, encouraging higher savings and disposable income.

• MSME & Business Credit Support – Expansion of Emergency Credit Line Guarantee Scheme (ECLGS) for MSMEs, along with lower interest rates on business loans to promote entrepreneurship and investment.

• Stock Market & Digital Finance – New incentives for retail investors, tax breaks on capital gains, and strengthening of SEBI regulations to ensure a more transparent and stable stock market.

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