Finance Minister Nirmala Sitharaman unveiled India’s most taxpayer-friendly budget yet, raising the income exemption limit to ₹12 lakh and turbocharging nuclear energy to 100GW by 2047. But with a ₹1 lakh crore Urban Challenge Fund and controversial disinvestment plans, will this budget fuel India’s $10 trillion dream—or spark backlash? Here’s your 5-minute breakdown.
Table of Contents
Middle Class Wins Big: Tax & Savings
- New Tax Regime:
- Exemption hiked to ₹12L/year (vs. ₹7L earlier).
- TDS rules simplified: No deductions on deposits under ₹5L.
- EPF Boost: Interest rates raised by 0.5% for accounts under ₹10L.
Quote: “This puts ₹50,000/year back in salaried pockets,” – CA Rakesh Singh, EY India.
Farmers & Rural India: Cotton, Credit & Fertilizers
- Kisan Credit Card: Loan limit doubled to ₹5L.
- Cotton Revolution: 5-year mission for extra-long staple cotton (textile exports to hit $100B by 2030).
- Urea Self-Reliance: 12.7L MT plant in Assam to cut imports by 40%.
Poll: “Will the ₹5L credit limit help farmers? Vote Yes/No.”
Cities as Growth Engines
- Urban Challenge Fund: ₹1L crore for metro expansions, water projects, and smart cities.
- Mumbai Example: Coastal Road Phase 2 to get ₹8,000cr.
- PPP Push: Private firms to fund 50% of projects via bonds.
Gig Workers & Nuclear Power: Bold Bets
- Gig Economy Formalized: Health insurance for 15M delivery riders/drivers.
- Nuclear Surge: 100GW target by 2047 (10x current capacity).
- Controversy: Activists warn of land acquisition battles.
Risks & Backlash
- Fiscal Deficit: 4.4% target called “optimistic” by Moody’s.
- Disinvestment Fears: LIC stake sale could trigger market jitters.
Quote: “Selling PSUs to fund welfare is a short-term fix,” – Former RBI Governor Raghuram Rajan.
What the USA/NRIs Need to Know
- NRI Property Rules: Easier documentation for flats under ₹5cr.
- Tech Partnerships: Silicon Valley firms get tax breaks for AI R&D in Bengaluru/Hyderabad.
5 Immediate Actions
- Switch to the New Tax Regime by March 2025.
- Farmers: Apply for Kisan Credit Cards.
- Gig Workers: Register on e-Shram portal for benefits.
- Investors: Buy IREDA bonds for nuclear energy tax rebates.
- Homebuyers: Pre-book properties before disinvestment-driven price hikes.
Final Note
While the budget’s ₹12L tax exemption and nuclear push are headline-grabbers, its success hinges on execution. Will Modi’s “reform and perform” mantra deliver? Only 2025 will tell—but for now, middle India is cheering.