Union Budget 2025: New Schemes, Missions under Garib, Youth, Annadata and Nari Developments Pillars

The Union Budget 2025 introduces several new schemes and missions aimed at fostering development under four key pillars: Garib (Poor), Youth, Annadata (Farmers), and Nari (Women). These initiatives reflect a commitment to inclusive growth and empowerment.

Under the Garib pillar, the government plans to enhance social welfare programs, ensuring better support for low-income families. The Youth initiatives focus on job creation and skill development, with plans to provide internships for 1 crore youth in top companies. 

The Annadata pillar emphasises agricultural productivity, introducing high-yield crop varieties to support farmers. 

Finally, the Nari initiatives aim to empower women through various programs, including financial assistance and support for working women. Together, these efforts seek to create a more equitable society and drive sustainable economic growth.

Check Out| Budget 2025 Income Tax Slab: Tax Slab under New Regime for AY 2025-26; Check All Details Here!

Key Highlights of Union Budget 2025: Focus on Development Pillars

The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman on February 1, 2025, focus on infrastructure, digital economy, taxation reforms, and various new schemes aimed at enhancing economic growth and social welfare.

1) Infrastructure Development

• A significant increase in funding for infrastructure projects to enhance connectivity and drive long-term growth.
• Launch of a comprehensive multi-sectoral Rural Prosperity and Resilience Programme aimed at addressing agricultural underemployment and invigorating the rural economy.

2) Digital Economy & Innovation

• Emphasis on technology and innovation as key drivers of growth.
• Introduction of the Bharatiya Bhasha Pustak Scheme to provide digital Indian language books for educational purposes.

3) Taxation Reforms

• Proposed simplification of the tax system, including:
• New income tax slabs with no tax for individuals earning up to ₹12 lakhs annually.
• Increased TDS limits for senior citizens and on rental income.
• Enhanced thresholds for Tax Collected at Source (TCS) on remittances under the Liberalized Remittance Scheme.

4) Health and Education Investments

• Allocation for establishing 50,000 Atal Tinkering Labs in government schools.
• Plans to set up Day Care Cancer Centres in all district hospitals over the next three years.

5) New Schemes Announced

Several new government schemes were introduced in the budget:

• Prime Minister Dhan-Dhaanya Krishi Yojana: Targeting low productivity districts to support around 1.7 crore farmers through specialized measures.
• Credit Guarantee Scheme for Startups: Increased limit to ₹20 crore to support entrepreneurial ventures.
• Customized Credit Cards for Micro Enterprises: Issuance of credit cards with a limit of ₹5 lakh tailored for micro businesses
• National Institute of Food Technology, Entrepreneurship, and Management: To be established in Bihar to bolster food processing sectors.

6) Economic Strategy

The budget aims to stimulate economic growth through:

• Increased capital expenditure with a budget estimate of ₹50.65 trillion for FY 2025-26.
• A focus on enhancing private sector investments and supporting MSMEs.
• A commitment to fiscal consolidation, with a targeted fiscal deficit of 4.4% of GDP.

New Schemes and Missions Under Garib, Youth, Annadata, and Nari Developments Pillars

The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, prioritizes inclusive growth through four key pillars: Garib (Poor), Youth, Annadata (Farmers), and Nari (Women). Here are the major schemes and missions under each pillar:

1) Garib (Poor)

• PM SVANidhi Scheme: UPI-linked credit cards with a ₹30,000 limit for street vendors to enhance financial inclusion.
• Jal Jeevan Mission Extension: Focused on rural piped water supply infrastructure until 2028.
• SWAMIH Fund 2.0: A ₹15,000 crore fund to complete 1 lakh stalled housing units.
• Urban Challenge Fund: ₹1 lakh crore allocated for urban development, including water, sanitation, and creative redevelopment.

2) Youth

• 50,000 Atal Tinkering Labs: To be established in government schools over five years to foster innovation.
• 10,000 New Medical Seats: Part of a plan to add 75,000 seats in five years.
• Skilling Initiatives: Under the Rural Prosperity and Resilience program to address agricultural underemployment.
• Centre of Excellence for AI in Education: ₹500 crore allocated to advance AI-driven learning.

3) Annadata (Farmers)

• Prime Minister Dhan-Dhaanya Krishi Yojana: Targets 100 low-productivity districts to improve irrigation, storage, and credit access for 1.7 crore farmers.
• Atma Nirbharta in Pulses: A 6-year mission for climate-resilient seeds and procurement of Tur, Urad, and Masoor.
• Enhanced Kisan Credit Card (KCC) Limit: Increased from ₹3 lakh to ₹5 lakh for 7.7 crore farmers.
• Makhana Board in Bihar: To boost production and value addition of Makhana (foxnuts).
• Sustainable Fisheries Framework: Focuses on Andaman & Nicobar and Lakshadweep.

4) Nari (Women)

• Gender Budget Allocation: ₹4.49 lakh crore (a 37% YoY increase), with 9% of the total budget dedicated to women-centric schemes.
• National Rural Livelihoods Mission (NRLM): Upgraded to Part A of the Gender Budget, emphasizing Self-Help Group (SHG)-led empowerment.
• Target of 70% Women in Economic Activities: Part of the Viksit Bharat vision.
• PMMVY Omission: The maternity benefit scheme’s absence from the budget raises concerns about tracking allocations.

5) Cross-Sectoral Reforms

• Fiscal Deficit Reduction: Lowered to 4.4% in FY26 to enhance macroeconomic stability.
• FDI in Insurance: Cap raised to 100% for companies reinvesting premiums domestically.
• Regulatory Reforms: A high-level committee to streamline non-financial sector regulations.
• National Geospatial Mission: To aid urban planning and infrastructure development.

While the budget emphasises inclusive growth, implementation gaps—such as low women’s ownership under PMAY-G (23% as of 2025) and transparency issues in gender budget classifications—require attention to fully realize its objectives.

New Government Schemes Announced in the Budget 2025

On February 1, 2025, Finance Minister Smt. Nirmala Sitharaman presented the Union Budget for 2025-26, unveiling several new government schemes aimed at boosting agriculture, MSMEs, industry, and social security.

These initiatives are designed to drive rural development, stimulate economic growth, and enhance the welfare of various sectors.

Key Government Schemes Announced in Union Budget 2025-26

In addition to launching new programs, the government proposed modifications to existing schemes to maximise their effectiveness. The measures focus on empowering farmers, entrepreneurs, workers, and rural communities.

1. Prime Minister Dhan-Dhaanya Krishi Yojana

Objective: Boost agricultural productivity and promote sustainable farming practices.

Target: 1.7 crore farmers across 100 districts with low agricultural output.

Key Features:

• Encourages crop diversification and eco-friendly farming techniques.
• Enhances irrigation facilities and strengthens storage infrastructure.
• Provides access to both long-term and short-term agricultural credit.

2. Rural Prosperity and Resilience Programme

Objective: Combat rural underemployment and fortify the rural economy.

Target: Young farmers, rural women, small-scale farmers, and landless families.

Key Features:

• Investment in agriculture, technology, and skill development.
• Promotes entrepreneurship and financial independence among rural women.
• Creates employment and business opportunities for rural youth.

3. Aatmanirbharta in Pulses

Objective: Achieve self-sufficiency in pulse production.

Key Features:

• A six-year initiative focusing on Urad, Tur, and Masoor pulses.
• Procurement of pulses through NAFED and NCCF from registered farmers.
• Emphasis on climate-resilient seeds and improving protein content in pulses.

4. Scheme for First-Time Entrepreneurs

Objective: Empower first-time entrepreneurs, particularly women and SC/ST individuals.

Key Features:

• Provides term loans up to ₹2 crore for 5 lakh entrepreneurs over five years.
• Offers capacity-building programs to develop entrepreneurial skills.

5. Saksham Anganwadi and Poshan 2.0

Objective: Ensure nutritional support for children, pregnant women, and lactating mothers.

Target: 8 crore children, 1 crore mothers, and 20 lakh adolescent girls.

Key Features:

• Revised cost norms to enhance nutrition programs in aspirational districts.

6. Bharatiya Bhasha Pustak Scheme

Objective: Promote books in Indian languages for schools and higher education institutions.

Key Features:

• Digital books in regional languages to improve subject comprehension.

7. Social Security Scheme for Online Platform Workers

Objective: Extend social security benefits to gig and platform workers.

Key Features:

• Registration and issuance of ID cards via the e-Shram portal.
• Healthcare coverage under the PM Jan Arogya Yojana.

8. SWAMIH Fund 2

Objective: Support middle-income families in need of housing.

Target: Completion of 1 lakh housing units for middle-class families.

Key Features:

• ₹15,000 crore fund allocated to complete stalled housing projects.
• Focus on assisting middle-class families struggling with EMIs and rent payments.

Modifications to Existing Government Schemes

1. MSME Definition

Objective: Strengthen MSMEs by improving technology adoption, scalability, and capital access.

Key Features:

• Revised investment and turnover criteria for MSMEs.
• Increased classification limits to promote sectoral growth.

2. Kisan Credit Cards (KCC)

Objective: Provide short-term financial assistance to farmers, fishermen, and dairy farmers.

Key Features:

• Loan limit increased from ₹3 lakh to ₹5 lakh.

3. Credit Guarantee Fund

Objective: Enhance access to credit for MSMEs and startups.

Key Features:

• Improved credit guarantee coverage for MSMEs and startups.
• Introduction of customized credit cards for micro-enterprises.

4. Fund of Funds for Startups

Objective: Support the expansion and development of startups.

Key Features:

• New ₹10,000 crore Fund of Funds initiative.
• Broader support framework for emerging startups.

5. Atal Tinkering Labs

Objective: Encourage innovation and scientific thinking among students.

Key Features:

• Establishment of 50,000 Tinkering Labs in government schools within five years.

6. PM SVANidhi

Objective: Provide financial assistance to street vendors.

Key Features:

• Expanded loan facilities and introduction of UPI-linked credit cards.
• Capacity-building programs for street vendors.

7. Jal Jeevan Mission

Objective: Ensure safe drinking water for rural households.

Key Features:

• Extended mission timeline to achieve 100% rural household coverage by 2028.
• Emphasis on quality control and maintenance of water supply infrastructure.

8. UDAN – Regional Connectivity Scheme

Objective: Strengthen air connectivity in regional and remote areas.

Key Features:

• Expansion of the scheme to include 120 new destinations.
• Additional support for small airports and helipads in rural regions.

9. PM Gati Shakti

Objective: Improve infrastructure development through data-driven planning.

Key Features:

• Access to geospatial data for public-private partnerships and major infrastructure projects.

10. Employment-Led Growth in Tourism

Objective: Generate employment by promoting the tourism sector.

Key Features:

• Skill development programs and MUDRA loan support for homestays.
• Enhanced e-visa facilities and incentives for tourism-related businesses.

11. PM Research Fellowship

Objective: Strengthen research initiatives in technological fields.

Key Features:

• Allocation of 10,000 fellowships with increased financial support for IISc and IITs.

Sector-Wise Allocations: How Budget 2025 Supports Growth & Welfare

The Union Budget 2025-26 prioritises balanced economic growth and social welfare through strategic sectoral allocations. Here’s a breakdown of key investments and reforms:

1) Infrastructure & Urban Development

• ₹1.5 lakh crore allocated to states for capital expenditure, including interest-free loans for urban projects.
• Urban Challenge Fund (₹1 lakh crore) for city redevelopment and water management.
• Telecom & IT sector receives ₹95,298 crore, with reduced customs duty on critical equipment to boost 5G infrastructure.

2) Agriculture & Rural Prosperity

• National Mission on High Yielding Seeds and Makhana Board to enhance productivity.
• ₹1.37 lakh crore for agriculture ministries, with expanded Kisan Credit Card coverage and MSP hikes for crops.

3) Healthcare & Education

• Health sector allocation rises to ₹99,858 crore, focusing on rural infrastructure and telemedicine.
• Education receives ₹1.28 lakh crore, emphasising rural broadband connectivity and expansion of Atal Tinkering Labs.

4) MSMEs & Employment

• Revised MSME classifications to ease growth barriers, with credit guarantees for micro-enterprises.
• Labour-intensive sectors (footwear, leather, food processing) prioritised for job creation.

5) Green Energy & Sustainability

• Clean Energy Investment: Focus on solar, wind, and National Green Hydrogen Mission to reduce emissions.
• Nuclear Energy Mission: Target of 100 GW capacity by 2047.

6) Financial & Tax Reforms

• Fiscal deficit reduced to 4.4% of GDP, with income tax exemptions hiked to ₹12 lakh for middle-class relief.
• FDI limit in insurance raised to 100% for companies reinvesting premiums domestically.

7) Social Welfare

• Garib Kalyan Anna Yojana extended to ensure food security for 80 crore beneficiaries.
• Women & Child Development receives ₹26,889 crore, targeting skill development and workforce participation.

8) Technology & Innovation

• ₹26,026 crore for Electronics & IT, emphasizing AI and digital infrastructure in rural schools

In Case You Missed| India Budget 2025: State-wise Key Announcements made by FM Nirmala Sitharaman; Check Details Here

Impact of Budget 2025: What It Means for Farmers, Women, and Youth

The Union Budget 2025 introduces transformative measures for farmers, women, and youth, focusing on inclusive growth and empowerment. Here’s a breakdown of its impact across these groups:

Farmers: Boosting Productivity and Sustainability

• Expanded MSP Coverage: The MSP mechanism is set for an overhaul, factoring in land rent, farm wages, and post-harvest costs to ensure fair pricing. Coverage will extend beyond 23 commodities, benefiting more farmers.
• GST Reforms: Stakeholders demand GST reductions on pesticides (from 18% to 5%) and exemptions on agricultural machinery to lower input costs.
• Digital Infrastructure: Increased investment in Agri Stack and AI-powered tools will improve market access and crop management. R&D funding for climate-resilient crops aims to reach 1% of Agri-GDP.
• Financial Support: The Kisan Credit Card limit may rise to ₹5 lakh with enhanced interest subvention, while PMFBY insurance coverage expands with simplified claims.
• Animal Husbandry: Budget allocations for livestock health and feed quality have surged to ₹2,465 crore, supporting dairy and cattle-rearing communities.
• Women: Empowerment and Workforce Inclusion
• Health and Education: Increased funding for reproductive health services, menstrual hygiene programs, and adolescent health initiatives aims to bridge gaps in access.
• Skill Development: Allocations for women-specific skilling programs and working women’s hostels aim to boost workforce participation. However, funding for the Skill India Programme dropped significantly.
• Safety and Equity: Despite reduced allocations for the Safe City Project (₹214 crore), the Gender Budget now includes schemes with <30% women-focused spending, signaling broader inclusion.
• Financial Inclusion: Proposals for flexible work opportunities and affordable childcare seek to reduce unpaid care burdens, enabling economic participation.
• Youth: Skilling and Employment Opportunities
• Job-Linked Incentives: A ₹2 lakh crore package targets 4.1 crore youth over five years, with EPFO-linked schemes and internships in top companies.
• Education Loans: Interest-subvention loans up to ₹10 lakh for higher education will benefit 1 lakh students annually, alongside revised skill loans of ₹7.5 lakh.
• Digital Skilling: Training in AI, robotics, IoT, and 3D printing will prepare youth for global job markets. Upgrading 1,000 ITIs and expanding Atal Tinkering Labs are key focuses.
• Startup Support: Tax incentives and ₹1.48 lakh crore for education/skilling aim to foster entrepreneurship, with emphasis on rural broadband and tech infrastructure.

What's Next| Budget 2025-26 Highlights: Key Announcements and Major Changes; Download PDF!