Parliament Session Highlights: Tax Reforms and Agricultural Initiatives
The Indian Parliament’s latest budget session on March 21, 2025, centered around key reforms aimed at easing the financial burden on individuals and revitalizing the agriculture sector. The government introduced significant changes to the income tax structure and launched several initiatives targeting farmers and rural growth.
Tax Reforms for Middle-Class Relief
One of the highlights of the session was the revision of income tax slabs to benefit middle-income earners. The government announced that individuals earning up to ₹12 lakh annually will now be exempt from income tax under the new regime.
The updated tax structure is as follows:
- Up to ₹4 lakh: Nil
- ₹4–8 lakh: 5%
- ₹8–12 lakh: 10%
- ₹12–16 lakh: 15%
- ₹16–20 lakh: 20%
- ₹20–24 lakh: 25%
- Above ₹24 lakh: 30%
Additionally, the standard deduction for salaried individuals was increased from ₹50,000 to ₹75,000, offering further relief.
Major Agricultural Announcements
The session also introduced key agricultural initiatives, most notably the Prime Minister Dhan-Dhaanya Krishi Yojana, aimed at increasing crop productivity and food security.
The government plans to extend short-term loans up to ₹5 lakh through the Kisan Credit Card (KCC) to 7.7 crore farmers, including those engaged in fisheries and dairy. A major push toward self-reliance in pulses has also been announced through a six-year mission focused on crops like Tur, Urad, and Masoor.
To support regional agriculture, a new Makhana Board will be established in Bihar, boosting the production and market outreach of this nutrient-rich crop.
Push for Innovation and R&D
In a bid to fuel innovation, the government allocated ₹20,000 crore for private sector-led research and development. This includes 10,000 Prime Minister Research Fellowships to encourage advanced technological research in leading institutions.
The creation of a second gene bank to store 10 lakh germplasm lines was also announced to preserve crop biodiversity and strengthen future food security.
Boost to Exports and Industry
The budget session included several measures to enhance India’s global trade competitiveness. Key sectors such as electronics, electric vehicles, and the leather industry will benefit from exemptions on import duties.
Shipbuilding and ship-breaking activities received a 10-year duty exemption to encourage growth in maritime maintenance, while timeframes for finalizing trade assessments have been streamlined for improved efficiency.
These comprehensive steps mark a strong policy shift aimed at simplifying taxation, strengthening agricultural infrastructure, promoting innovation, and making Indian exports more competitive in the global market.
