{"id":33247,"date":"2025-01-22T17:26:36","date_gmt":"2025-01-22T11:56:36","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=33247"},"modified":"2025-07-24T14:46:59","modified_gmt":"2025-07-24T09:16:59","slug":"union-budget-2025-highlights-economic-impacts","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/","title":{"rendered":"Union Budget 2025 Highlights &amp; Economic Impacts"},"content":{"rendered":"<p>The Union Budget 2025 will transform India to address the economic challenges and is an opportunity for growth. Numerous amendments were announced in the prior budget concerning tax deduction at source (TDS) or capital gains tax. However, <a href=\"https:\/\/univest.in\/blogs\/budget-2025-news\">budget 2025<\/a> is expected to bring something new to encourage further lower tax litigations.&nbsp;<\/p><p>This budget is expected to shape India\u2019s future for the coming decades. This article will explore the key highlights of the Indian Budget 2025, expectations, highlights, and sectorial impact. We will also explore what experts are predicting about the budget and its effect on the long-term growth trajectory of India.&nbsp;&nbsp;<\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/#What_is_Union_Budget_2025\" title=\"What is Union Budget 2025?\">What is Union Budget 2025?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/#Union_Budget_2025_Highlights\" title=\"Union Budget 2025 Highlights&nbsp;\">Union Budget 2025 Highlights&nbsp;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/#1_GST_Amendments_2025\" title=\"1. GST Amendments 2025\">1. GST Amendments 2025<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/#2Viksit_Bharat_Vision\" title=\"2.Viksit Bharat Vision\">2.Viksit Bharat Vision<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/#3_Healthcare_Deductions_Under_Section_80D\" title=\"3. Healthcare Deductions Under Section 80D\">3. Healthcare Deductions Under Section 80D<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/#4_MSMEs_Start-Ups\" title=\"4. MSMEs &amp; Start-Ups\">4. MSMEs &amp; Start-Ups<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/#5_Housing_Urban_Sector\" title=\"5. Housing &amp; Urban Sector\">5. Housing &amp; Urban Sector<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/#6_Employment_Linked_Incentive\" title=\"6. Employment Linked Incentive\">6. Employment Linked Incentive<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/#7_Custom_Duty_Changes\" title=\"7. Custom Duty Changes\">7. Custom Duty Changes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/#8_Infrastructure_Development\" title=\"8. Infrastructure Development&nbsp;\">8. Infrastructure Development&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/#9_Securities_Transaction_Tax_STT\" title=\"9. Securities Transaction Tax (STT)&nbsp;\">9. Securities Transaction Tax (STT)&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/#10_Women_Workforce\" title=\"10. Women Workforce\">10. Women Workforce<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/#Union_Budget_2025_Expectations\" title=\"Union Budget 2025 Expectations\">Union Budget 2025 Expectations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/#Sector-Wise_Impact_of_Union_Budget_2025\" title=\"Sector-Wise Impact of Union Budget 2025\">Sector-Wise Impact of Union Budget 2025<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/#Impact_of_Union_Budget_2025_on_Middle-Class\" title=\"Impact of Union Budget 2025 on Middle-Class\">Impact of Union Budget 2025 on Middle-Class<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/#Economic_Reforms_in_Budget_2025\" title=\"Economic Reforms in Budget 2025\">Economic Reforms in Budget 2025<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/#Government_Spendings_in_Union_Budget_2025\" title=\"Government Spendings in Union Budget 2025\">Government Spendings in Union Budget 2025<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/#Will_Union_Budget_2025_Generate_Employability\" title=\"Will Union Budget 2025 Generate Employability?\">Will Union Budget 2025 Generate Employability?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/#Union_Budget_2025_Predictions_By_Experts\" title=\"Union Budget 2025 Predictions By Experts\">Union Budget 2025 Predictions By Experts<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/#Final_Thought\" title=\"Final Thought\">Final Thought<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/#FAQs_on_Budget_2025\" title=\"FAQs on Budget 2025\">FAQs on Budget 2025<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/#1_What_is_Union_Budget_2025\" title=\"1. What is Union Budget 2025?\">1. What is Union Budget 2025?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/#2_When_will_Union_Budget_2025_be_presented\" title=\"2. When will Union Budget 2025 be presented?\">2. When will Union Budget 2025 be presented?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/#3_Which_sector_will_benefit_most_from_Budget_2025\" title=\"3. Which sector will benefit most from Budget 2025?\">3. Which sector will benefit most from Budget 2025?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/#4_How_will_Union_Budget_2025_impact_the_middle_class\" title=\"4. How will Union Budget 2025 impact the middle class?\">4. How will Union Budget 2025 impact the middle class?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/#5_What_is_Viksit_Bharat_Vision_in_Budget_2025\" title=\"5. What is Viksit Bharat Vision in Budget 2025?\">5. What is Viksit Bharat Vision in Budget 2025?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/#6_Will_Budget_2025_generate_employment\" title=\"6. Will Budget 2025 generate employment?\">6. Will Budget 2025 generate employment?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/#Read_Our_Articles_on_the_Best_Stocks\" title=\"Read Our Articles on the Best Stocks\">Read Our Articles on the Best Stocks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/#Also_Explore\" title=\"Also Explore\">Also Explore<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/#Univest_Screeners\" title=\"Univest Screeners\">Univest Screeners<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/univest.in\/blogs-2\/union-budget-2025-highlights-economic-impacts\/#Explore_Webstories_on_Univest\" title=\"Explore Webstories on Univest&nbsp;\">Explore Webstories on Univest&nbsp;<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_Union_Budget_2025\"><\/span><strong>What is Union Budget 2025?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p>Union Budget 2025 is the summarised record of government spending during the financial year. It includes detailed government plans to uncover growth opportunities across diverse sectors by accumulating funds. Budget 2025 is to be presented on 1st February 2025 by the Finance Minister, Smt. Nirmala Sitharaman.&nbsp;<\/p><p>The primary aim of the Indian Budget 2025 is to provide opportunities for more than 41 million young people over the next few decades. On the other hand, the government has also revealed some secondary objectives behind the budget. These include.<\/p><ul class=\"wp-block-list\"><li>Employment Generation<\/li>\n\n<li>Allocation of Funds<\/li>\n\n<li>Bringing Sustainability<\/li>\n\n<li>Modernising India<\/li>\n\n<li>Encourage Economic Growth<\/li>\n\n<li>Addressing the Inflation Concerns<\/li><\/ul><p>The finance minister will likely announce GST amendments 2025 per the GST council&#8217;s recommendations. But there is much more to be revealed on 1st February 2025.&nbsp;&nbsp;<\/p><figure class=\"wp-block-embed aligncenter is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe title=\"Union Budget 2024-2025: Game-Changing Moves for Growth,Jobs &amp; Inflation\ud83d\udca5\ud83d\udcbc\" width=\"1120\" height=\"630\" src=\"https:\/\/www.youtube.com\/embed\/yBRfVIFkOTI?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Union_Budget_2025_Highlights\"><\/span><strong>Union Budget 2025 Highlights&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p>Here are the key proposals in budget 2025 anticipated in the Union Budget 2025.&nbsp;<\/p><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_GST_Amendments_2025\"><\/span>1. <strong>GST Amendments 2025<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p>Goods and Services Tax (GST) was rolled out, effective on 1st July 2017. Since then, multiple modifications have been made. The Finance Minister, Smt. Nirmala Sitharaman will likely include GST amendments 2025, followed by the 54th and 55th GST Council meetings in the Budget 2025.&nbsp;<\/p><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2Viksit_Bharat_Vision\"><\/span>2.<strong>Viksit Bharat Vision<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p>The government is to provide a strategic plan for Viksit Bharat&#8217;s vision in the Indian Budget 2025. The NDA government expressed their focus on introducing measures under this vision to benefit the common man by creating infrastructure and employment opportunities.&nbsp;<\/p><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Healthcare_Deductions_Under_Section_80D\"><\/span>3. <strong>Healthcare Deductions Under Section 80D<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p>Rising medical expenses are now a concern of the government of India. Taxpayers expect an increase in deductions towards health insurance, ranging from Rs 25,000 to Rs 1,00,000. An increase in healthcare deduction under Section 80D of the Income Tax Act would be one of the key proposals in budget 2025.&nbsp;&nbsp;&nbsp;<\/p><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_MSMEs_Start-Ups\"><\/span>4. <strong>MSMEs &amp; Start-Ups<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p>The government is to announce a Credit Guarantee Scheme for <a href=\"https:\/\/msme.gov.in\/\" rel=\"nofollow noopener\" target=\"_blank\">MSMEs<\/a> in the manufacturing sector to help them during the stress period. Moreover, in the Mudra Loans category, the limit will be enhanced to Rs 20 lakh from the current limit of Rs 10 lakh under the \u201cTarun\u201d category. This might influence the manufacturing and services sector in India.&nbsp;&nbsp;<\/p><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_Housing_Urban_Sector\"><\/span>5. <strong>Housing &amp; Urban Sector<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p>The Union Budget 2025 would introduce PM Awas Yojana Urban 2.0 to help 1 crore poor or middle-class people with an investment of Rs 10 lakh crore. On the other hand, the budget will also promote the water supply and sewage treatment projects for 100 big cities.&nbsp;<\/p><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_Employment_Linked_Incentive\"><\/span>6<strong>. Employment Linked Incentive<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p>Pradhan Mantri Shri Narendra Modi\u2019s scheme for freshers to give them one-month wage in all formal sectors in 3 instalments (up to Rs 15,000) will be introduced in the Indian Budget 2025. This amount will given to around 210 lakh young people. Furthermore, the government is to reimburse EPFO contributions of employers up to Rs 3000 per month for 2 years for new entrants in the jobs.&nbsp;<\/p><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"7_Custom_Duty_Changes\"><\/span>7. <strong>Custom Duty Changes<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p>Budget 2025 analysis indicates that the government will reduce custom duty on gold and silver to 6% and platinum to 6.4%. Moreover, 25 critical minerals are targeted to fully exempt the custom duties. The government is also looking to reduce Basic Custom Duty (BCD) to 15% on mobile PCBA, phones, and chargers.&nbsp;<\/p><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"8_Infrastructure_Development\"><\/span>8. <strong>Infrastructure Development&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p>The government has made a provision of Rs 11,11,111 crore (almost 3.4% of GDP) for infrastructure development activities. Phase 4 of PMGSY is to be launched to offer connectivity to 25,000 rural habitations.&nbsp;<\/p><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"9_Securities_Transaction_Tax_STT\"><\/span>9. <strong>Securities Transaction Tax (STT)&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p>STT change came into effect on 1st October 2024. It aims to provide tax exemptions on long-term capital gains (LTCG) and concessional rates for short-term capital gains (STCG). The Finance Minister is all set to announce competitive tax rates in the Union Budget 2025 as the STT abolition is warranted.&nbsp;<\/p><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"10_Women_Workforce\"><\/span>10. <strong>Women Workforce<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p>In the coming Budget 2025, women&#8217;s participation in the workforce will be influenced by setting up working woman hostels across different states. It will encourage women empowerment and also influence employment generation in the country.&nbsp;<\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Union_Budget_2025_Expectations\"><\/span><strong>Union Budget 2025 Expectations<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p>As of now, we\u2019ve explored the key proposals in budget 2025 highly anticipated from the upcoming budget announcement on 1st February 2025. Now is the right time to explore some of the Union Budget 2025 expectations that might derive economic growth trajectory in India. Keep scrolling to explore.&nbsp;<\/p><ul class=\"wp-block-list\"><li><strong>Foreign Bank Tax Rate Reduction<\/strong><\/li><\/ul><p>In the prior budget 2024, tax rates for foreign companies were reduced by the government of India. However, foreign banks are also acclaimed for having higher tax burdens than Indian banks. This indicates that further reduction in tax rates for foreign banks is required, and we can expect it from the Indian Budget for 2025.&nbsp;<\/p><ul class=\"wp-block-list\"><li><strong>Tax Refunds<\/strong><\/li><\/ul><p>It can be expected that the government can mandate the timely initiate of tax refunds to influence the confidence of investors. It may encourage taxpayers to align themselves with the exact tax amount as per the provisions of the Income Tax Act.&nbsp;<\/p><ul class=\"wp-block-list\"><li><strong>GIFT-IFSC Incentives<\/strong><\/li><\/ul><p>Tax holidays for insurance companies could be extended to 15 to 20 years and for green finance, tax relief would be announced. It might represent India as the global financial hub.&nbsp;<\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sector-Wise_Impact_of_Union_Budget_2025\"><\/span><strong>Sector-Wise Impact of Union Budget 2025<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"536\" src=\"https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/01\/22172243\/union-budget-2025-blog-image-2-1024x536.jpg\" alt=\"\" class=\"wp-image-33251\" srcset=\"https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/01\/22172243\/union-budget-2025-blog-image-2-1024x536.jpg 1024w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/01\/22172243\/union-budget-2025-blog-image-2-300x157.jpg 300w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/01\/22172243\/union-budget-2025-blog-image-2-768x402.jpg 768w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/01\/22172243\/union-budget-2025-blog-image-2-900x471.jpg 900w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/01\/22172243\/union-budget-2025-blog-image-2-600x314.jpg 600w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/01\/22172243\/union-budget-2025-blog-image-2-150x79.jpg 150w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/01\/22172243\/union-budget-2025-blog-image-2.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><p>Budget 2025 will definitely impact different sectors in India. Here is a brief overview of the sector-wise impact of Union Budget 2025.&nbsp;<\/p><ul class=\"wp-block-list\"><li>A reduction in GST on hybrid vehicles from 28% to a reduced percentage will make hybrid cars affordable. It will leverage sustainable mobility in the automobile sector.&nbsp;<\/li>\n\n<li>ITC rules under GST will be amended to reduce tax burdens on property sales or purchases. This would make products and services of the real estate sector more affordable.&nbsp;<\/li>\n\n<li>Extension of deductions under Section 80D for healthcare insurance might leverage growth in the healthcare industry and will also make healthcare services budget-friendly.&nbsp;<\/li>\n\n<li>People demand a reduction in GST on educational services and implementation of New Education Policy (NEP) reforms. It will make education accessible in India.&nbsp;<\/li>\n\n<li>Budget 2025 might increase the financial initiative under PM Kisan Samman Nidhi Scheme from Rs 6,000 to Rs 12,000. It will foster a growth trajectory in India\u2019s agriculture sector.&nbsp;<\/li><\/ul><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Impact_of_Union_Budget_2025_on_Middle-Class\"><\/span><strong>Impact of Union Budget 2025 on Middle-Class<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p>Middle-class people often become the country\u2019s backbone, contributing to economic growth. In the Indian Budget 2025, the middle class may see tax relief, increased access to affordable healthcare services, and other social surety benefits. The highlights, as mentioned earlier, and Union Budget 2025 predictions might reduce the financial burden on this group.&nbsp;<\/p><p>Moreover, this budget is expected to address inflation challenges that might help such people access products and services at the lowest possible prices. In contrast, the government is also focused on encouraging women&#8217;s workforce participation, which would help middle-class women meet their financial needs.&nbsp;<\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Economic_Reforms_in_Budget_2025\"><\/span><strong>Economic Reforms in Budget 2025<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"536\" src=\"https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/01\/22172309\/union-3-1024x536.jpg\" alt=\"\" class=\"wp-image-33252\" srcset=\"https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/01\/22172309\/union-3-1024x536.jpg 1024w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/01\/22172309\/union-3-300x157.jpg 300w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/01\/22172309\/union-3-768x402.jpg 768w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/01\/22172309\/union-3-900x471.jpg 900w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/01\/22172309\/union-3-600x314.jpg 600w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/01\/22172309\/union-3-150x79.jpg 150w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/01\/22172309\/union-3.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><p>The Finance Minister, Smt. Nirmala Sitharaman is set to announce numerous bold reforms in the Union Budget 2025. It includes schemes to provide affordable housing, strategies to reduce fiscal deficit, and initiatives to foster sustainable growth.&nbsp;<\/p><p>For example, Phase IV of PMGSY is set to be launched in the budget to provide connectivity to around 25,000 rural habitations. And again, the amount under the PM Kisan Samman Nidhi Scheme is to be increased from Rs 6,000 to 12,000.&nbsp;<\/p><p>Many other economic reforms are decided to be announced on 1st February 2025. Stay informed with the Univest to know about the upcoming budget trends.&nbsp;<\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Government_Spendings_in_Union_Budget_2025\"><\/span><strong>Government Spendings in Union Budget 2025<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p>The government of India expressed a keen interest in increasing funds for diverse sectors like healthcare, education, defence, agriculture, IT, and energy. This increase will leverage the development of the economy and may also foster sustainable growth. Here is an idea of the expenses the government might announce in the Indian Budget 2025 on 1st February.&nbsp;<\/p><figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Sectors&nbsp;<\/strong><\/td><td><strong>Amount (in Cr.)<\/strong><\/td><\/tr><tr><td><strong>Energy Sector<\/strong><\/td><td>68,000<\/td><\/tr><tr><td><strong>Education Sector<\/strong><\/td><td>1,25,000<\/td><\/tr><tr><td><strong>Defence Sector<\/strong><\/td><td>4,54,000<\/td><\/tr><tr><td><strong>Agriculture Sector<\/strong><\/td><td>1.51,000<\/td><\/tr><tr><td><strong>Information Technology Sector<\/strong><\/td><td>1,16,000<\/td><\/tr><tr><td><strong>Healthcare Sector<\/strong><\/td><td>89,000<\/td><\/tr><\/tbody><\/table><\/figure><p><strong><em>Note<\/em><\/strong><em>: The above table shows an idea of the government spending and may be subject to change as per the government announcement.&nbsp;<\/em><\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Will_Union_Budget_2025_Generate_Employability\"><\/span><strong>Will Union Budget 2025 Generate Employability?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p>Employment and skilling could be the two different priorities of the Indian government in the Indian Budget 2025. Here are some reforms that might contribute to employment generation in India.&nbsp;<\/p><ul class=\"wp-block-list\"><li><strong>Employment Linked Incentive<\/strong><\/li><\/ul><p>Pradhan Mantri Employment Linked Incentive scheme will likely be introduced in the coming Budget 2025 to offer financial benefits to employers who hire fresh graduates. It will generate millions of jobs across the country, typically for freshers.&nbsp;<\/p><ul class=\"wp-block-list\"><li><strong>Infrastructure Projects<\/strong><\/li><\/ul><p>The Finance Minister, Smt. Nirmala Sitharaman will introduce Phase IV of Pradhan Mantri Gram Sadak Yojana (PMGSY) to create construction jobs in rural as well as urban areas.&nbsp;<\/p><ul class=\"wp-block-list\"><li><strong>Women Workforce Participation<\/strong><\/li><\/ul><p>The government of India is set to launch an initiative of making women hostels across different states to encourage women participation in employment. It would be an opportunity for employees and employers in the formal sector.&nbsp;<\/p><ul class=\"wp-block-list\"><li><strong>Skill Development Programs<\/strong><\/li><\/ul><p>In the Union Budget 2025, the government will fund a skill development program to upskill the youth of the country. It will benefit the young population to grab job opportunities in the fast-paced competitive environment.&nbsp;<\/p><ul class=\"wp-block-list\"><li><strong>Support For MSMEs<\/strong><\/li><\/ul><p>Launch of Credit Guarantee Scheme for MSMEs helps start-ups and small businesses during the struggle time. It will encourage small businesses hire new talent from the market and may also leverage employment generation in India.&nbsp;<\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Union_Budget_2025_Predictions_By_Experts\"><\/span><strong>Union Budget 2025 Predictions By Experts<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"536\" src=\"https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/01\/22172330\/union-4-1024x536.jpg\" alt=\"\" class=\"wp-image-33253\" srcset=\"https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/01\/22172330\/union-4-1024x536.jpg 1024w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/01\/22172330\/union-4-300x157.jpg 300w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/01\/22172330\/union-4-768x402.jpg 768w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/01\/22172330\/union-4-900x471.jpg 900w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/01\/22172330\/union-4-600x314.jpg 600w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/01\/22172330\/union-4-150x79.jpg 150w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/01\/22172330\/union-4.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><p>As Budget 2025 is yet to be presented officially. So, most experts kept making Union Budget 2025 predictions to make a final conclusion. For example, Kumarmangalam Vijay, a Partner at JSA Advocates &amp; Solicitors, says that the new tax regime introduced in Budget 2020 has already simplified the tax administration but has increased the compliance burden on taxpayers. Thus, the government can merge the old tax regime with the new one to balance the simplification of the tax system with low compliance and tax burden.&nbsp;<\/p><p>Then again, Subhash Chand Aggarwal, the Chairman and MD of SMC Global Securities Ltd., said that the old tax regime was a burden for taxpayers but provided more exemptions and deductions benefits. And the new tax regime is just the opposite of it. Hence, the merger of these tax regimes might help the government to simplify the tax structure and provide benefits to the citizens.&nbsp;<\/p><p><strong><em>Also Read<\/em><\/strong><em>: <\/em><a href=\"https:\/\/univest.in\/blogs\/budget-2025-news\"><strong><em>Budget 2025 Expectations Updates: Will Government Merge Old and New Tax Regimes?<\/em><\/strong><em>&nbsp;&nbsp;<\/em><\/a><\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Final_Thought\"><\/span><strong>Final Thought<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p>Union Budget 2025 is supposed to be presented on 1st February 2025 by the Finance Minister, Nirmala Sitharaman. Key proposals in Budget 2025 include GST amendments, custom duty exemption, reduction in taxes, PMGSY Phase IV, and 80D deductions. Actual reforms are yet to be announced on budget day, but some experts are anticipating the merger of old and new tax regimes. They claimed that this merger would play a pivotal role in simplifying the tax system along with increased exemptions or deductions for the taxpayers.&nbsp;<\/p><p>The government should increase its spending across different sectors to leverage economic growth. Moreover, financial reforms might help middle-class families and individuals meet their financial needs. Indian Budget 2025 will likely make India a financial hub in the world.&nbsp;<\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs_on_Budget_2025\"><\/span><strong>FAQs on Budget 2025<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_What_is_Union_Budget_2025\"><\/span>1. <strong>What is Union Budget 2025?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p>Ans. Union Budget 2025 is the summary of government expenditures across diverse sectors during the financial year 2025-2026. The Finance Minister, Smt. Nirmala Sitharaman will present the budget on 1st February to announce the allocation of funds across different sectors.&nbsp;<\/p><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_When_will_Union_Budget_2025_be_presented\"><\/span>2. <strong>When will Union Budget 2025 be presented?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p>Ans. Union Budget 2025 is set to be presented on 1st February 2025. The Finance Minister, Smt. Nirmala Sitharaman will announce the budget on this prescribed date and will bring a drasting reform in India\u2019s growth trajectory.&nbsp;<\/p><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Which_sector_will_benefit_most_from_Budget_2025\"><\/span>3. <strong>Which sector will benefit most from Budget 2025?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p>Ans. The Budget 2025 is an opportunity for different sectors to influence their growth. Major factors that might have a huge influence on the budget include agriculture, manufacturing, services, defence, and more. As of now, it has been analysed that the government will allocate around&nbsp; Rs 11,11,111 crore to the infrastructure sector.&nbsp;<\/p><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_How_will_Union_Budget_2025_impact_the_middle_class\"><\/span>4. <strong>How will Union Budget 2025 impact the middle class?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p>Ans. Budget 2025 will bring several reforms and tax cuts to relieve middle-class families. The budget may address the inflation challenges for these families that will make healthcare services more affordable, reduce tax liabilities, and provide social surety benefits. In India, middle-class families deal with high financial burdens, which is the focus of the government for this Union Budget 2025.&nbsp;&nbsp;<\/p><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_What_is_Viksit_Bharat_Vision_in_Budget_2025\"><\/span>5. <strong>What is Viksit Bharat Vision in Budget 2025?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p>Ans. In the Union Budget 2025, the Indian government will highlight and make changes to the Viksit Bharat Vision. This vision aims to make India sustainable and modern. It will also influence job creation, infrastructure development, and equitable growth in the country.<\/p><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_Will_Budget_2025_generate_employment\"><\/span>6. <strong>Will Budget 2025 generate employment?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p>Ans. Yes, the Budget 2025 will generate more employment in India. 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Cap Vs Small Cap Dividend Stocks<\/a><\/p><p><\/p>","protected":false},"excerpt":{"rendered":"<p>The Union Budget 2025 will transform India to address the economic challenges and is an opportunity for growth. Numerous amendments were announced in the prior budget concerning tax deduction at source (TDS) or capital gains tax. 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