Union Budget 2025: Tax cuts, medical tourism, ID for gig workers; highlights of Nirmala Sitharaman's budget speech

Finance Minister Nirmala Sitharaman presented her eighth consecutive Union Budget on Saturday. Arguably, the biggest announcement of the day was about income tax.

Sitharaman announced a "nil tax" slab, which would be available up to Rs 12 lakh (Rs 12.75 lakh for salaried taxpayers with a standard deduction of Rs 75,000).

CREDIT: ANI

Tourism

In her budget speech, Sitharaman also highlighted the role of the tourism sector and announced several measures to boost the industry.

One of the major initiatives announced by Sitharaman is the development of 50 tourist destinations in the country in partnership with states in a "challenge mode".

The government will also introduce streamlined e-visa facilities and visa fee waivers for select tourist groups to attract international visitors, she said. Reaffirming the focus on spiritual and heritage tourism set in the Budget last July, Sitharaman highlighted the special initiatives for sites associated with Gautama Buddha's life.

CREDIT: AP

Medical tourism, under the 'Heal in India' initiative, will also receive a boost through public-private partnerships, capacity building, and relaxed visa norms.

Global hub for toys

The government announced plans to make the country a global manufacturing hub for toys, as well as measures focused on small and medium businesses, calling them a second engine for growth in the country.

Textiles

To promote domestic production of technical textile products such as agro-textiles, medical textiles, and geo-textiles at competitive prices, the Finance Minister proposed adding two more types of shuttle-less looms to the list of fully exempted textile machinery.

Leather

The government proposed fully exempting BCD on Wet Blue leather to facilitate imports for domestic value addition and employment. She also proposed exempting crust leather from 20 per cent export duty to facilitate exports by small tanners.

CREDIT: ANI

Startups

The budget also announced a 100 billion rupees fund for startups to boost entrepreneurship in the country.

Ship building

Sitharaman also announced the continuation of customs duty exemption on inputs and components used for the manufacturing of ships for another 10 years.

The announcement assumes significance as the country is looking to promote domestic shipbuilding to boost international trade.

Makhana board

The Union Budget also announced the setting up of a makhana board in Bihar.

"There is a special opportunity for the people of Bihar. A makhana board will be established in the state to improve production, processing, value addition, and marketing of makhana," she said.

It is raining announcement for Bihar

This is not the only announcement Sitharaman had for NDA-ruled Bihar, which will hold assembly elections later this year.

Others include a greenfield airport as well as financial support for the Western Koshi Canal Project in the Mithilanchal region of the state.

CREDIT: IANS

Sitharaman also announced the establishment of a National Institute of Food Technology, Entrepreneurship and Management in Bihar and the expansion of hostel and other infrastructure capacity at IIT Patna.

Other announcements for Bihar include the capacity expansion of Patna airport and the development of a brownfield airport at Bihta.

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