Relax boys & girls, we read the entire Budget 2025, so you don't...
FinFloww@FinFloww
27 views
Feb 01, 2025
~4 min read
Advertisement
1
Relax boys & girls, we read the entire Budget 2025, so you don't have to!
THREAD: Everything you need to know about the Annual Budget (in the easiest way possible)🧵
THREAD: Everything you need to know about the Annual Budget (in the easiest way possible)🧵
2
Go ahead, celebrate—this time👀, the budget has given us all a major tax relief!
Social media is flooded with hilarious memes and people are cheering over their extra savings.
Analysts are calling it a budget designed to boost consumption, and there’s a lot of buzz around it.
Social media is flooded with hilarious memes and people are cheering over their extra savings.
Analysts are calling it a budget designed to boost consumption, and there’s a lot of buzz around it.
3
But don’t just stop at the headlines—let us explain why it’s being called a Consumption-Focused Budget & also highlight the key additions that reinforces this theme.
The 2025-26 Budget marks a significant shift in focus, transitioning from a Capital Expenditure-driven approach
The 2025-26 Budget marks a significant shift in focus, transitioning from a Capital Expenditure-driven approach
4
—to one centered around boosting domestic demand.
Past budgets were focused on building infrastructure, energizing industries, and driving long-term investment—necessary to lay the groundwork for economic growth.
Past budgets were focused on building infrastructure, energizing industries, and driving long-term investment—necessary to lay the groundwork for economic growth.
5
Since these investments are already in the pipeline, the govt is now shifting focus to ensure people have the purchasing power to sustain that type of demand.
6
While studying this budget, one thing stands out—the govt has extensively highlighted credit schemes & allocations across various sectors to increase credit availability.
You must be wondering:
You must be wondering:
0:06
7
But fayeda hai! Let’s understand how?
1⃣ Agricultural Credit Expansion
The Kisan Credit Card (KCC) loan limit has increased from ₹3L to ₹5L, benefiting 7.7 Cr farmers with better access to working capital.
This will result in higher rural spending & economic growth.
1⃣ Agricultural Credit Expansion
The Kisan Credit Card (KCC) loan limit has increased from ₹3L to ₹5L, benefiting 7.7 Cr farmers with better access to working capital.
This will result in higher rural spending & economic growth.
8
2⃣ MSME Credit Expansion
More than 1 Cr registered MSMEs employ 7.5 Cr people, which contributes 36% of manufacturing & 45% of exports of our country.
So, here the govt proposed 2 things:
More than 1 Cr registered MSMEs employ 7.5 Cr people, which contributes 36% of manufacturing & 45% of exports of our country.
So, here the govt proposed 2 things:
9
👉Expanding the credit limits for MSMEs from ₹5 Cr to ₹10 Cr, adding ₹1.5L Cr in credit over 5 years.
👉Introducing customized credit cards with a ₹5L limit for micro enterprises registered on the Udyam portal.
👉Introducing customized credit cards with a ₹5L limit for micro enterprises registered on the Udyam portal.
10
Higher working capital will boost MSME productivity, job creation and in turn domestic demand for raw materials, goods & services.
11
3⃣ Informal & Small Entrepreneurs Credit Expansion
👉PM SVANidhi Scheme- This scheme has already benefitted 68 lakh street vendors, and now it’ll offer-higher
• loan limits from banks
• UPI-linked credit cards with ₹30,000 limit.
👉PM SVANidhi Scheme- This scheme has already benefitted 68 lakh street vendors, and now it’ll offer-higher
• loan limits from banks
• UPI-linked credit cards with ₹30,000 limit.
12
👉Grameen Credit Score- The govt has also asked Public Sector Banks to develop Rural Credit Rating Framework for SHG members & unbanked rural communities.
This step will reduce reliance of these self-employed individuals from very high-interest informal loans.
This step will reduce reliance of these self-employed individuals from very high-interest informal loans.
13
4⃣ Large-Scale Industry Credit Expansion
Govt is planning to introduce a Partial Credit Enhancement Facility to support corporate bonds for infrastructure projects through NaBFID, making it easier for companies to raise funds.
Govt is planning to introduce a Partial Credit Enhancement Facility to support corporate bonds for infrastructure projects through NaBFID, making it easier for companies to raise funds.
14
Let’s once comprehend this through the lens of the most celebrated economic theory as well
— Keynesian Theory.
According to Keynesian Economics, govt intervention through govt spending or easing credit, can stimulate aggregate demand in developing economies.
— Keynesian Theory.
According to Keynesian Economics, govt intervention through govt spending or easing credit, can stimulate aggregate demand in developing economies.
15
This in turn, triggers the Multiplier Effect, through which additional income gets generated & stimulates further consumption.
Also, govt is now recognizing that it’s time to shift from capital expenditure driven sectors towards new age sectors like FMCG, Retail, DeepTech etc.
Also, govt is now recognizing that it’s time to shift from capital expenditure driven sectors towards new age sectors like FMCG, Retail, DeepTech etc.
16
Let’s see how the govt has highlighted specific provisions in the budget for some of these sectors.
1. Footwear
To boost productivity, quality & competitiveness in India’s footwear & leather sector, the govt is planning to implement a focused product scheme.
1. Footwear
To boost productivity, quality & competitiveness in India’s footwear & leather sector, the govt is planning to implement a focused product scheme.
17
This will support design, component manufacturing and machinery, creating 22L jobs, generating ₹4L Cr in turnover, and achieving exports of over ₹1.1L Cr.
2. Nuclear Energy
To support energy transition, India aims to develop 100 GW of nuclear energy by 2047.
2. Nuclear Energy
To support energy transition, India aims to develop 100 GW of nuclear energy by 2047.
18
For that, govt has confirmed that they will bring amendments to the Atomic Energy Act and the Civil Liability for Nuclear Damage Act, boosting private sector participation.
Moreover, they’re planning on launching a ₹20,000 Cr Nuclear Energy Mission for research on
Moreover, they’re planning on launching a ₹20,000 Cr Nuclear Energy Mission for research on
19
Small Modular Reactors (SMRs), with 5 indigenously developed SMRs
— set to be operational by 2033.
— set to be operational by 2033.
20
3. DeepTech
To support the private sector-driven R&D initiative announced in the last budget, ₹20,000 Cr will be allocated.
Additionally, a DeepTech Fund of Funds will also be explored to foster next-generation startups.
To support the private sector-driven R&D initiative announced in the last budget, ₹20,000 Cr will be allocated.
Additionally, a DeepTech Fund of Funds will also be explored to foster next-generation startups.
21
4. Service Economy
Gig workers on online platforms are now playing a vital role in India’s growth story, directed New-Age Service Startups.
Recognizing their contribution, the govt has decided to provide them ID cards & register in e-Shram portal.
Gig workers on online platforms are now playing a vital role in India’s growth story, directed New-Age Service Startups.
Recognizing their contribution, the govt has decided to provide them ID cards & register in e-Shram portal.
22
Over 1 Cr gig workers will also receive healthcare under the PM Jan Arogya Yojana.
After analyzing all the points, we can positively say that this years’ budget will strategically drive short-term momentum for our economy and help us ensure sustained GDP growth.
After analyzing all the points, we can positively say that this years’ budget will strategically drive short-term momentum for our economy and help us ensure sustained GDP growth.
23
If you liked this read, do RePost🔄 the 1st post
and follow us @FinFloww for such reads every Monday, Wednesday and Friday!
and follow us @FinFloww for such reads every Monday, Wednesday and Friday!
24
Get our WhatsApp newsletter: whatsapp.com/channel/0029Va…
25
Subscribe to WHAT THE FLOWW?, our weekly email newsletter where we dive deeper into such concepts: FinFloww.bio.link
