New Delhi, Jan 25 (NationPress) The Union Budgets introduced by Prime Minister Narendra Modi over the past 11 years have evolved into a powerful tool for transformation and policy reforms, enhancing the ease of doing business for various sectors, including MSMEs and startups, while also increasing the purchasing power of the general populace.

In his inaugural Union Budget for 2014-15, the PM Modi administration raised the personal income tax exemption threshold from Rs 2 lakh to Rs 2.5 lakh (with a limit of Rs 3 lakh for senior citizens). Furthermore, the investment ceiling under Section 80C saw an increase from Rs 1 lakh to Rs 1.5 lakh.

In a strategic move to attract foreign capital and upgrade infrastructure, the Foreign Direct Investment (FDI) cap in the defence and insurance sectors was elevated from 26% to 49%.

The government also unveiled an ambitious initiative to establish 100 Smart Cities, aimed at developing satellite towns around major cities and upgrading existing mid-tier cities, with an initial allocation of Rs 7,060 crore.

This budget highlighted the “Pradhan Mantri Gram Sadak Yojana” for rural road development and proposed the construction of new airports while promoting the extensive use of PPP Models.

As we look ahead to the Union Budget for 2025-26, it is evident that the government has not only honored its commitments but also intensified its reform efforts.

The Income Tax Bill of 2025 signifies a pivotal step towards overhauling India’s six-decade-old direct tax structure, aiming to strike a balance between boosting investor confidence, providing taxpayer relief, and enhancing administrative efficiency.

Tax reforms include a corporate tax rate of 22% for companies opting out of specified deductions and exemptions, and a 15% tax rate for new manufacturing firms for a defined period. Individual taxation has also been revised, offering broader slabs and reduced rates, along with increased rebates.

Individuals earning up to Rs 12 lakh (effectively Rs 12.75 lakh for salaried taxpayers, factoring in a standard deduction of Rs 75,000) will not incur tax liabilities under these slabs, thus promoting savings, consumption, and increasing the disposable income of salaried families.

Additionally, Rs 1.7 crore farmers are expected to benefit from the PM Dhan-Dhaanya Krishi Yojana, which encompasses 100 low-productivity districts, along with initiatives like Mission Aatmanirbharta in Pulses and higher KCC loans up to Rs 5 lakh.

The credit guarantee limit has been increased from Rs 5 crore to Rs 10 crore, the National Manufacturing Mission has been launched, and substantial customs duty exemptions were announced in the latest budget to fortify the 'Make in India' initiative and foster job creation.

Moreover, significant announcements in the Budget 2025-26 include Rs 20,000 crore for private R&D, Rs 20,000 crore for the Nuclear SMR Mission, Rs 500 crore for an AI Centre for Education, and the establishment of 50,000 Atal Tinkering Labs to foster technological leadership.

With a projected fiscal deficit reduction to 4.4% in FY26, an FDI cap in insurance raised to 100%, the introduction of Jan Vishwas 2.0 for decriminalizing laws, and major reforms aimed at simplifying tax and compliance regulations, it shows that the PM Modi government is firmly on the path to achieving a Viksit Bharat by 2047.