> *Summary of Union Budget 2025 Highlights* This budget aims for a balance between fiscal discipline, economic growth, and sectoral support, with key reforms in taxation, infrastructure, and manufacturing. *Macro-Fiscal Overview* 1. GDP Growth: Projected at 6.3% - 6.8% for FY26. 2. Tax Revenue Growth: Gross tax revenue expected to grow by 10.8%; direct tax growth at 12.7%. 3. Expenditure Focus: Capital expenditure set at INR 11.2 lakh crore (3.1% of GDP), with INR 1.5 lakh crore allocated for long-term interest-free loans to states. 4. Fiscal Deficit: Targeted at 4.4% of GDP for FY26, continuing fiscal consolidation. *Key Policy Measures* 1. Agriculture: Six-year self-reliance mission for pulses; Agri-District Program to enhance productivity. 2. MSMEs & Startups: Investment and turnover limits increased by 2.5x; INR 20,000 crore allocated for research. 3. Urban Development: INR 1 lakh crore ‘Urban Challenge Fund’ to develop ‘Cities as Growth Hubs.’ 4. Energy & Manufacturing: National Manufacturing Mission to boost electronics; Nuclear Energy Mission with INR 20,000 crore for R&D on Small Modular Reactors. 5. Ease of Doing Business: Regulatory reforms to simplify licenses and certifications. 6. Export Promotion: Increased credit access and measures to counter non-tariff barriers. *Taxation Changes* Corporate Tax: 1. New Income Tax Bill to be introduced. 2. Start-up tax holiday eligibility extended to March 2030. 3. Non-residents in electronics manufacturing to be taxed at a presumptive 25% of gross receipts. *Personal Tax:* 1. No income tax up to INR 12 lakh under the New Tax Regime (NTR). 2. Revised slabs with the highest bracket (30%) for income above INR 24 lakh. 3. Extended time limit for updated tax returns from two to four years. *GST & Customs:* 1. GST amendments include non-taxability of certain SEZ transactions. 2. Rationalization of customs duties to promote domestic manufacturing. Transaction Tax & Transfer Pricing: 1. Long-term capital gains (LTCG) tax for business trusts and FIIs set at 12.5%. 2. Introduction of block assessments for transfer pricing over three years. *Sector-Specific Announcements* 1. Agriculture: INR 1.71 lakh crore allocated, focus on food processing, high-yield seeds, fisheries, and warehousing. 2. Automobile: Tariff adjustments for vehicle imports, focus on boosting domestic production. 3. Infrastructure: INR 10 lakh crore asset monetization plan; INR 1.5 lakh crore for state loans. 4. Defense: INR 6.81 lakh crore allocation, focus on aircraft and aero-engines. 5. Technology: INR 2,000 crore for AI mission; increased support for semiconductor manufacturing. 6. Power & Utilities: INR 20,000 crore for nuclear energy; customs duty exemptions for clean tech. 7. Startups: INR 10,000 crore Fund of Funds; enhanced credit guarantee for new businesses.