New Delhi: In a landmark move, Union Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2025, announced a massive relief for salaried employees. The government has increased the income tax exemption limit to Rs 12 lakh, providing significant relief to middle-class taxpayers.
Apart from tax relief, the Finance Minister also declared a series of customs duty reductions on essential goods, including mobile phones, chargers, and life-saving medicines. The decision aims to make these items more affordable while boosting domestic manufacturing and exports.
What Gets Cheaper?
- Medicines for Cancer and Chronic Diseases: Thirty-six life-saving drugs have been fully exempted from basic customs duties, reducing treatment costs for patients.
- Electronic Goods: Reduction of Basic Customs Duty (BCD) to 5% for open cells and other components, benefitting the electronics industry.
- Critical Minerals & Batteries: Cobalt powder, waste and scrap of lithium-ion batteries, lead, zinc, and 12 more essential minerals exempted from BCD.
- Electric Vehicles (EVs): 35 additional goods for EV battery manufacturing and 28 additional goods for mobile phone battery manufacturing will be exempted from customs duties.
- Leather Products: Items such as leather jackets, shoes, belts, and purses will become more affordable.
- Frozen Fish Paste (Surimi): Customs duty slashed from 30% to 5%, promoting seafood exports.
What Gets Costlier?
- Flat Panel Displays: BCD increased from 10% to 20%, affecting TVs and mobile phone prices.
- Social Welfare Surcharge: Exemption removed on 82 tariff lines, leading to higher costs on various imported goods.
Budget Focus on Growth & Welfare
Presenting her eighth consecutive budget, Sitharaman reiterated the government’s commitment to inclusive growth. She emphasized that the next five years present a golden opportunity to ensure ‘Sabka Vikas’—balanced development across all regions.
“In this Budget, the proposed development measures span 10 broad areas, focusing on the poor (garib), youth, farmers (annadata), and women (nari),” the Finance Minister stated.
This marks the second full budget of the Modi 3.0 government, which returned to power in the 2024 Lok Sabha elections. The budget underscores the government’s intent to drive economic growth while ensuring welfare measures for key demographic groups.
