Finance Minister Nirmala Sitharaman has announced many transformative measures to boost the agricultural and marine sectors while hugely providing relief to the middle class in the Union Budget 2025. The key announcements include increasing loan limits for Kisan Credit Card (KCC) holders, new cotton farming focus areas, and a framework to make fisheries more sustainable.
The finance minister also introduced tax exemptions for the middle class and continued to highlight regional development with a great thrust on Bihar this time.
Kisan Credit Card Loan Limit Raised to Rs 5 Lakh
Sitharaman has announced the raising of the loan limit under the Modified Interest Subvention (MIS) scheme for Kisan Credit Cards (KCC). The loan limit, which was earlier at Rs 3 lakh, has now been increased to Rs 5 lakh. The move is also aimed at enhancing access to finance for 7.7 crore farmers, especially those in the fisheries and dairy sectors.
It would increase the loanable amount available to farmers by allowing them to grow their businesses through necessary tools to scale operations and raise productivity, thereby contributing directly to agricultural growth.
Increase Cotton Sector with a Productivity Mission
The Union Budget 2025 came up with a comprehensive five-year ambitious Mission on Cotton Productivity with scientific support to cotton. That centers more on improvements to extra-long staple cotton strains as a precursor in boosting India’s cotton productions along the visions of the India 5Fs. Indeed, the intent here is to augment increased productivity in Indian cotton production from merely being supplied both in its home market, to being readily made available within this country due to export for increased textile contribution.
Fertiliser Sector development cuts across one critical area through import dependency alleviation. The fertilizer sector was given a much-needed boost by Sitharaman’s announcement of recommissioning three urea plants in eastern India. Furthermore, the government will establish a new 12.7 lakh metric tonne urea plant in Assam, which would decrease India’s reliance on imported fertilizers.
This would ensure better self-sufficiency in fertilizer production and enable farmers to use affordable, quality inputs for the cultivation of crops.
Sustainable Fisheries Framework and Seafood Export Expansion
In the marine sector, the budget provided a structure to sustainable fisheries and utilized the resources of the Exclusive Economic Zone of India and high seas. Specifically, this budget would focus on the enhancement of seafood exports from the Andaman and Nicobar Islands and Lakshadweep.
This new sustainable and responsible fishing structure will be expected to take India’s seafood exports from the current value of Rs 60,000 crore to new heights.
Income Tax Relief for Middle-Class Hailed by Goa CM
The Union Budget 2025 brought much relief to the middle class with the announcement that individuals earning up to Rs 12 lakh would be exempt from income tax. This decision has been termed by Goa Chief Minister Pramod Sawant as “a transformative move for empowering the middle class.”
According to him, it would enhance savings and investments as this middle class has played an important role in building up this nation. “A stronger middle class means a stronger India,” he added, focusing on the long-term economic advantages.
Congress Lashes Out at Budget That Focuses More on Bihar
While the budget has seen appreciation from most quarters, it has also been criticized politically by the Congress party. The Congress party criticized the Modi government for giving more importance to Bihar since several initiatives for the state were announced, including the setting up of a Makhana Board, financial assistance for the Western Kosi canal, and planning to develop greenfield airports.
Congress General Secretary Jairam Ramesh questioned why Andhra Pradesh, another key NDA ally, was “cruelly ignored” in the budget, pointing out the political motivations behind the Bihar-focused announcements.
The Union Budget 2025 therefore as a strategic focus for the government on agriculture, regional development, and middle-class relief. The budget has tremendous initiatives for farmers, the cotton sector, and fisheries, besides tax exemptions for the middle class. Of course, the budget aims at boosting economic growth and improving the lives of millions of Indians.