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Key Highlights Union Budget 2025-2026
The Hon'ble Finance Minister, Ms. Nirmala Sitharaman presented the Union Budget for the fiscal year 2025-2026 on February 01, 2025. This budget introduced a range of measures to strengthen India's corporate sector, ensuring tax stability, enhancing trade infrastructure, promoting green energy, and supporting MSMEs, start-ups, and digital transformation.
Below are the key highlights:
| Corporate Taxation | No Change in Corporate Tax Rates: The government has maintained the existing corporate tax rates, ensuring stability and predictability in tax liabilities, aiding long-term financial planning. |
| Simplification in the Income Tax Act | The Income-Tax Bill, 2025 has been introduced in Parliament on February 13, 2025, to simplify the Income-tax Act, 1961. This initiative focuses on improving clarity, maintaining tax policy continuity, and preserving existing tax rates. |
| MSME & Start-ups | Enhanced MSME Classification Limits: Investment and turnover limits for MSME classification have been increased by 2.5 and 2 times, respectively, to improve efficiency, technological adoption, and employment generation. Increased Credit Availability: • Credit for Micro and Small Enterprises (MSEs) - To increase from Rs.5 crore to Rs.10 crore • Enhanced Guarantee Cover for Start-ups - To increase from Rs.10 crore to Rs.20 crore • Enhanced Loan Guarantee Cover for MSMEs - To receive support for term loans up to Rs.20 crore. |
| Digital & AI-Driven Transformation | • Rs.20,000 crore has been allocated to Department of Science and Technology to promote private sector-led R&D and innovation. • Rs.10,000 crore Fund of Funds Scheme (FFS) will support deep-tech start-ups. |
| Trade Infrastructure | A new unified digital trade platform – “BharatTradeNet Platform” has been proposed to simplify trade documentation, processes, and financing, facilitating seamless cross-border transactions and strengthening India's global trade relations. |
| Export Promotion | Government is to set up Export Promotion Mission with an outlay of Rs.2,250 crore, to facilitate easy access to export credit, cross-border factoring support, and help MSMEs tackle non-tariff measures in overseas markets. |
| Maritime Development | Rs.25,000 Crore has been allocated to Maritime Development, which aims to enhance India's shipping and warehousing infrastructure, improving cargo handling capacity and logistics efficiency boosting both exports and domestic trade. |
| Duty Exemptions | The Budget has proposed several exemptions under Basic Customs Duty (BCD) to rationalise tariff structures, boost domestic manufacturing, and provide relief to consumers. Introduction of duty exemptions for critical components used in manufacturing LED/LCD TVs, electric vehicle batteries, and textiles, are expected to reduce input costs and enhance competitiveness. |
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Institute of Directors (IOD) is an apex national association of Corporate Directors under the India's 'Societies Registration Act XXI of 1860'. Currently it is associated with over 30,000 senior executives from Govt, PSU and Private organizations of India and abroad.
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