From enhancing farmer credit access to boosting AI education and research, Budget 2025 introduces transformative measures across key sectors.
February 1, 2025: The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, announced several key reforms aimed at fostering growth and inclusivity across India’s economic sectors. Here are the major highlights:
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1. Kisan Credit Card Limit Increased to ₹5 Lakh
In a significant move to empower farmers, the Kisan Credit Card (KCC) limit has been raised from ₹3 lakh to ₹5 lakh. The initiative aims to enhance financial access for agricultural communities, enabling them to invest in modern farming techniques and inputs such as seeds, fertilizers, and equipment. The government introduced the KCC scheme in 1998 to streamline credit access for farmers, and this enhancement further strengthens rural development efforts.
2. MSME Credit Boost and Loans for Women Entrepreneurs
The budget doubled the credit limit for Micro, Small, and Medium Enterprises (MSMEs) to ₹10 crore. Sitharaman emphasized the vital role of MSMEs in driving economic growth, with over 1 crore registered MSMEs employing 7.5 crore individuals. Special loans for women entrepreneurs and first-time SC/ST entrepreneurs were also introduced to promote inclusivity.
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3. Centres of Excellence in Artificial Intelligence
To advance AI-related education and research, the government will establish Centres of Excellence in Artificial Intelligence with a total investment of ₹500 crore. Each center will receive ₹100 crore for development. The initiative aims to equip India’s workforce with the skills needed for the evolving digital economy.
4. Medical Education Expansion
The budget announced the addition of 75,000 new medical seats over the next five years, including 10,000 seats by next year. This builds upon the government’s previous efforts to double the number of medical seats over the last decade.
5. Scheme for Footwear and Leather Sector
Footwear stocks, including Relaxo Footwears and Mirza International, surged up to 13% following the announcement of a focused product scheme for the footwear and leather industries. The scheme is expected to boost domestic manufacturing and exports in these sectors.
Tags:
Budget 2025, Kisan Credit Card, MSME Loans, AI Research, Medical Seats Expansion, Footwear Stocks, Nirmala Sitharaman, Economic Growth, Rural Development.