The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman on February 1, 2025, includes major reforms aimed at boosting economic growth, enhancing public welfare, and easing financial burdens on citizens. Let’s examine the key highlights and their impact on the common people of India.

Key Highlights of Union Budget 2025

Income Tax Reforms

The income tax exemption limit has been raised to ₹12 lakh per annum, meaning individuals earning up to this amount will not be liable to pay any income tax.

The standard deduction for salaried individuals has been increased to ₹75,000, providing additional tax relief effectively making incomes up to ₹12.75 lakh tax-free.

Agricultural Initiatives

Introduction of the 'Prime Minister Dhan-Dhaanya Krishi Yojana', targeting 100 districts with low agricultural productivity to enhance crop yields and support 1.7 crore farmers.

Support for the Gig Economy

Formalization of gig economy workers, providing them with access to healthcare and welfare initiatives.

Investment in Key Sectors

Significant allocations for startups, tourism, infrastructure development, and energy, including a Nuclear Energy Mission aiming for 100 GW of nuclear power by 2047.

Changes in Prices of Essential Commodities

The Union Budget 2025 has introduced several changes affecting the prices of essential commodities in India. Here's a concise overview of items that are expected to become more affordable or more expensive due to the proposed fiscal measures:

Commodities Becoming Cheaper

Life-Saving Drugs: Exemption of 36 essential drugs from basic customs duty, making medications more affordable.

Electric Vehicle (EV) Components: Exemption of 35 capital goods for EV manufacturing from basic customs duty, reducing EV costs.

Wet Blue Leather: Removal of customs duty to lower manufacturing costs in the leather industry.

Solar Panels and Renewable Energy Equipment: Reduction in import duties, making solar power adoption more affordable.

Food Processing Equipment: Reduction in customs duty, benefiting processed food industries.

Raw Materials for Pharma and Electronics: Decreased import duties on pharmaceutical raw materials and semiconductor components, leading to lower manufacturing costs.

Fertilizers and Agricultural Inputs: Subsidies and tax benefits to help farmers access cheaper fertilizers and seeds.

Wet Blue Leather: Removal of customs duty to lower manufacturing costs in the leather industry.

Commodities Becoming Costlier

Flat Panel Displays: Increase in customs duty from 10% to 20%, leading to higher prices for TVs and monitors.

Imported Cars and Luxury Vehicles: Increase in customs duty on imported cars, making them more expensive.

Gold and Silver: Hike in import duty, increasing prices for gold and silver jewelry.

Cigarettes and Tobacco Products: Increased excise duty leads to higher prices for tobacco-based products.

Mobile Phones and Accessories: Increase in customs duty on specific Smartphone components, making high-end mobile phones costlier.

Imported Electronic Goods: Higher import duties on premium electronics and appliances.

Impact on the Common People

Better Agricultural Growth: The focus on improving low-productivity districts will boost farmers' earnings and improve rural livelihoods.

Enhanced Social Security: Gig economy workers will now benefit from healthcare and financial security.

Economic Growth & Job Creation: Increased investments in startups, infrastructure, and energy will generate employment opportunities.

The Union Budget 2025 introduces transformative measures aimed at economic development and public welfare. With significant tax relief, sectoral investments, and essential price adjustments, it strives to uplift various segments of society and drive sustainable growth.