MODI’s MASTERSTROKE Budget 2025 Analysed in Simple words: Budget 2025 case study

hi everybody the 2025 Union budget is here I present the budget for 2526 I am now happy to announce that there will be no income tax payable up to income of 12 lakh rupees so if you have a salary you may be paying less tax but the important question is what happens if we don't have a salary every year we all wait to see where our hard-earned tax money being invested will we get tax relief which Industries will boom and most importantly we often wonder how will this budget impact the future of India's economy was this a budget of the government of India or was this a budget of the government of biar [Music] and this year like the last s years Nala M has presented the budget for 2025 and as always it comes with big promises bold claims and policies that could reshape the Indian economy altogether this is a road map that decides where businesses Thrive where investors should bet their money and where entrepreneurs will find their next big opportunity so the question is what's in it for you what are the major changes in the tax code which Industries is the government betting big on and most importantly what are the biggest criticisms of this year's [Music] budget this video is brought to you by our wonderful Partners ODU people while the union budget shapes the country's finances managing your own business finance is just as crucial it may seem simple but accounting can be a nightmare and this is some that only business owners will understand from manual data entry to missed tax deadlines small errors can lead to cash flow issues penalties and hours wasted fixing mistakes and if you're a business owner you know how important it is to keep your finances in order and here's where Odo accounting can help you out with Odo accounting you get a complete accounting system that makes managing finances super easy super efficient and error free odu's Bank synchronization ensures that all your transactions are imported automatically keeping your financial data accurate and up 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and present only those points that are relevant to our community so please excuse us if we missed out on some super technical details of the budget if this is clear let's start with the most heated topic of the budget which is the income tax I'm now happy to announce that there will be no income tax payable up to income of 12 lakh rupees economists now believe it is time to bring income tax cuts for the middle class into the mix the slap changes that have been done today a the impact of inflation on the pocket of the middle class and it's been Chang changed to give some relief to be honest this budget seems like a budget that the government has drafted just to answer all our prayers and in a breakthrough announcement nirmala mam has said that there will be zero income tax payable for people earning up to 12 lakh rupees per year now in the budget the tax Labs have been rationalized in such a way that everyone has to pay less so let's get started with this exciting break bre down of the tax Labs people back then you didn't have to pay tax until 3 lakh rupees and then from 3 to 7 lakh rupees you had to pay 5% from 7 to 10 lakh rupes you paid 10% and from 10 to 12 lakh rupes you paid 15% and then from 12 to 15 lakhs you paid 20% and above 15 you paid 30% income tax but this is what the new tax Labs look like from 0 to 4 lakh rupes you pay nothing then from 4 to 8 lakh rupes you pay 5% from 8 to 12 lak rupes you pay 10% from 12 to 16 lakh rupes you pay 15% from 16 to 20 lakh rupes you pay 20% and from 20 to 24 lakh rupees you pay 25% and finally the last lab of 30% has been hiked to 24 lakh rupees this has been raised from the previous lab of 15 lakh rupees so the question is how much tax do you really end up paying well let's take a simple example to try and understand how much tax do you really have to pay let's say Rohan earns 12 lakh rupes perom so how much tax will Rohan pay under the new tax regime well from 0 to 4 lakh rupees he pays Zero from 4 to 8 lakh rupees he will pay 5% of 4 lakhs which is 20,000 rupees and for 8 to 12 lakh rupees he will pay 10% of 4 lakh rupees which is equal to 40,000 rupees so his total tax is 20,000 + 40,000 which is 60,000 Rupees so Rohan will pay 60,000 Rupees of tax but now the question is if this calculation says that ran one has to pay 60,000 rupees in tax then how can the Finance Minister say that till 12 lakh rupees there is no income tax at all well that is because ladies and gentlemen we have something called tax REITs so every March when the financial year ends and your ca files your taxes they also file for ITR or income tax returns when they do this the government will give you a refund on tax money now previously the maximum rebate you would get was 25,000 rupes but now the total rebate that Rohan can get is 60,000 Rupees so if you take rohan's example at the end of the year he will get back the 60,000 Rupees that he paid in taxes so effectively he pays zero rupees in tax but this is not the complete picture there are some things called sess and deductions for those who don't know cess is a tax on tax and cess is levied by the government generally for promoting health and education for example sess on education is used to pay for students midday meals or to pay the salaries of employees in the government schools and colleges so it's a percentage of the existing tax that you're paying instead of the tax on the income generated so this is a tax on tax for example if you have an income of 1,000 rupees on which the tax is 300 rupees the cess would be 4% of 300 rupes or 12 rupees so it's an added tax and then we come to deductions deductions are nothing but tax cuts that the government gives out if you invest your money into those sectors that are beneficial for the country this includes investing in healthcare housing retirement savings and many more as mentioned in the screen so if you spend or invest money in these instruments the government will not tax you for that amount of money now for the Simplicity of this example let's take the main deduction for all salaried employees which is standard deduction this is a flat deduction from the total salary earned by the employee in a particular Financial year to reduce their taxable income this as of now is 75,000 rupes so let's quickly understand this with an example and if you understand this please skip to this time stamp let's take disha who is earning 30 lakh rupees she will have to pay tax on 30 lakhs minus 75,000 which is equal to 29 l 25,000 rupes so again from 0 to 4 lakhs she pays zero tax from 4 to 8 lakhs she will pay 5% of 4 lakhs which is 20,000 rupes from 8 to 12 she will pay 10% of 4 lakhs which is 40,000 rupes from 12 to 16 she will pay 15% of 4 lakhs which is 60,000 rup from 16 to 20 lakh she will pay 20% of 4 lakhs which is 80,000 rup and from 20 to 24 lakhs she will pay 25% of 4 lakhs or 1 lakh rupees and finally from 24 lakhs to 29. 25 lakhs she pays 30% of 5. 25 lakh which is equal to 1 l 157,500 r now if you total it up it comes to 4 lakh 57,500 rup now on this you add 4% SS on the total tax payable so it comes down to 4% of 4 57,500 rup which is 18,300 R so disha's final tax payable with a 30 lakh salary is 4 57,500 R plus 18,300 rupes equal to 4 75,00 rupes now since she earns about 12 lakh rupees she doesn't get tedious cuts of 60,000 rupes this is still a marked improvement from the previous tax regime where she was paying 5ak 9,200 rupes per year in taxes so that's a 24% decrease in tax PID similarly if you look at this chart you will find that the total tax benefit from 2024 to 2025 is quite substantial it starts from 30,000 rupees up to 8 lakh rupes tax lap and then goes up to 1.

1 lakh rupees above the 24 lakh tax lap so overall the middle class is being kept happy with either zero or substantially lesser taxes and this brings an end to the first of our episode which is income tax and now we move on to the second section what are the new investment spaces and business opportunities that are being created by this year's budget now whether you are an investor looking for the next big bet or an entrepreneur looking to start a business here's where the action is so listen to this very very carefully the first is consumer-driven business ideas here's where with the government raising the taxfree income limit to 12 lakh rupees millions of middle class families will now have extra disposable income and this is expected to drive demand for consumer goods Automobiles and Home Essentials for example a family in lakau that previously bought generic cooking oil may now opt for a premium cold pressed oil brand available online and this increase in disposable income also creates a perfect environment for young entrepreneurs to boost their d2c brands in food appil Home Essentials and personal care and as this happens across India a new market is expected to grow in affordable yet premium products especially in tier 2 and tier 3 cities where consumption is booming to put that in perspective if a clothing brand offers Cotton shirts at $9. 99 they can now add another segment of products at 1,200 rupees because now young Professionals in indor and Jaipur will have more disposable income to buy these products similarly a d2c brand selling natural chemical-free home cleaning products can now Target families in cities like nashik and bopal who want better alternatives to traditional detergents and by the way this also means that startups in auto accessories and even electric two- wheelers will see a boost in Revenue due to more disposable income if this is very very clear to you let's move on to the second sector which is agriculture and Rural Commerce people India's agricultural sector is the backbone of our economy it contributes 18% to the GDP and provides a livelihood to 46% of the population but despite it being so crucial millions of farmers are still struggling every single day for the last over 5 years farmers of the bundelkhand region in India have been witnessing BRS farmers are being forced to compete on global markets with many taking on huge debts they're now unable to meet and that's being seen as a big factor in an alarmingly high rate of suicides over the past 10 years the amount of rice I produce has fallen but my costs have almost doubled or tripled in this agricultural country the conditions of farm is is so bad now farming in India is tough because of low productivity small land Holdings unpredictable weather lack of storage and unstable prices so to fix this in the 2025 budget AG agriculture has been one of the primary focus areas for the government and for this sector firstly we have the national mission to provide High yielding seeds to the farmers to tell you about it the farmers need better seeds to grow better crops so the government is launching a special mission to develop and distribute high yield seeds that are pest resistant and can survive extreme weather conditions this catalog starts from Rice wheat barley Maze and goes all the way up to sugar cane cotton jot and more this means higher production and fewer crop failures secondly the government will be giving 7. 7 CR Farmers fishermen and Dairy Farmers short-term loans up to 5 lakh Rupees at lower interest rates through kissan credit card this is because the government identifies debt as one of the biggest problems for the farmers more than 50% of the farmers in India have a debt of more than 75,000 rupees but with this loan scheme farmers will be able to buy better seeds invest in better irrigation and expand their Farms without relying on private money lenders who charge exorbitant interest rates of up to 40% thirdly under the Prime Minister DH krishi yoga the government has identified 100 districts across India that have the potential to become leading agricultural hubs under this scheme 1.

7 CR farmers will get direct support to increase productivity and boost their income by improving their farming techniques so 1. 7 CR farmers in these districts will be provided with modern farming equipment high quality seeds and they will also be provided better storage and transport in infastructure in simple words the goal is to transform these 100 districts into modern agricultural regions where farmers can earn more produce more and compete in National and Global markets and here's where there's a big opportunity for AGR Tech startups who can make better high-tech equipments for these farmers in fact startups and investors can also tap into cold storage facilities food processing plants and agre Supply Chain Solutions fourthly the government will be focusing on the production of cotton in the country you see cotton is a Lifeline for the Indian economy we are the largest cotton producer in the world and we alone make 23% of global cotton production on top of that the cotton industry also provides livelihood to 60 million people but you know what even then cotton farmers are struggling and India's cotton productivity is lower than Global standards in fact you would be shocked to know that India's average cotton Yi is approximately 436 kgs per hectare but if you look at China China stands at 2,171 kgs per hectare and Brazil stands at 1,911 kgs per Hector so on the same piece of land they produce four to five times more yield than us so obviously our farmers are poor this is the reason why to solve this problem the government has launched a 5year mission this Mission aims to modernize cotton farming introduce better seed varieties improve past management and promote sustainable practices to ensure that these farmers and the textile industry business owners they generate higher income and lastly the government is focusing on one super food and that is makana maana board in Bihar for this there is a special opportunity for the people of Bihar a makana board will be established in the state to improve production processing value addition and marketing of maana people bhara produces 90% I repeat 90% of the world's Fox nuts or maana bear maana Farmers have been growing the super food for generations and for years they struggled with unstable prices and poor Market access but fortunately things have started to change after 2017 if you see maana prices have skyrocketed by three to four times to a historic high of 22,000 rupees per quintal and as the prices increased many Patty Farmers stopped growing Patty and started maana cultivation but then in 2022 maana prices fell to just 3,500 R per quintal due to we weak demand and because of this 25% of farmers stopped maana farming and to make matters worse the extreme heat conditions also dried up artificial ponds to then further decrease the production by 50% so now the government is stepping in with a maana board in Bihar this board will help farmers process market and add value to their produce this will ensure stable prices better profits and long-term sustainability for the farmers who rely on makana and this is a huge opportunity for maana based fmcg Brands if this is very clear to you let's move on to the next Focus area for the government which is msmes and startups people msmes make up 29% of our GDP and 50% of India's total exports so this year in order to help these small businesses grow while reducing India's dependence on Chinese products the government has released a few policies to make it easier for them to get loans expand their footprint and even compete globally so let's have a look at them the first thing is creating easier access to loans for msmes and startups msmes can now get loan guarantees up to 10 CR rupes from the previous limit of 5 CR rupes and startups can now get up to 20 CR rupees from the previous limit of 10 CR rupees what this means is that the loans that these small businesses take are backed by the government itself so if a small business takes a loan and can't pay it back the government steps in and covers the part of the loss for the bank and because of this guarantee banks are more willing to lend money to small businesses and and this is a very very big deal because there are 4. 5 CR msmes in the country and this scheme unlocks an additional 1.

5 trillion rupees in credit in the next 5 years yes 1. 5 trillion rupees in credit guaranteed by the government so if you're a small business owner please figure out a way to use this Capital because it is very very valuable the second big announcement for msmes is that the government has just changed the definition of micro small and medium Enterprises and it's a game Cher for business owners so if you are a business owner listen to this very very carefully you see small businesses are classified as micro small and medium Enterprises based on their investment and annual turnover so earlier if your investment was 1 CR and turnover was 5 CR rupees you were a micro business if your investment was up to 10 CR rupees and turnover was up to 50 CR rupees then you were a small Enterprise and if your investment was up to 50 CR rupees with a turnover of up to 250 CR rupees then and you are a medium Enterprise but now the definitions have changed now if the investment is 2. 5 crores and turnover is up to 10 CR rupes you will still be considered as a micro business for small Enterprises the investment limit has been increased to 25 CR rupes and the turnover limit has been raised to 100 CR rupees similarly for medium Enterprises the investment cap is now 125 crores and they can now have a turnover of up to 500 CR rupees while still enjoying msme benefits so now the question over here is how does this change of definition help these businesses well as it turns out this is a massive boost for small and growing businesses earlier businesses had to stay small just to retain the msme benefits that the government was providing them and if they grew Beyond a certain limit they would lose access to subsidies tax buks and low interest loans but now with these relaxed tax limits businesses can expand without fear and still enjoy all the perks of being an msme so in simple words the government is saying don't hold back grow as much as you want and we would still have your back so this again is a big step towards making small businesses bigger stronger and more profitable and here's where we move from msme to another important engine of India which is the startup ecosystem you see the government earlier had a fund for startups with 91,000 crores but now the government is adding another 10,000 cres to the same but instead of directly funding individual companies they're using something called fund of funds so the money is invested in big funds like private Equity Funds Venture Capital funds and hedge funds these funds manage startup Investments it's like a mutual fund but for startups so instead of betting on one company investors bet on an entire portfolio to ensure that even if a few fail the rest of the companies balance out the risk this means more capital for Indian Founders more jobs and lesser risk for investors and this is a model that has apparently worked in the global markets like us and China and now India is stepping up its game and this brings us to the last sector that the government is deeply interested in which is manufacturing and because this entire segment was deeply technical I'll attach a dog to help you understand the segment better so all in all this sounds incredible right lots of tax changes lots of Industries benefiting and a lot of benefits for the business Community it's a full platter isn't it but you know what guys as always even this budget has some criticism you have a job and you have a salary and you you're earning 12 lakhs or less you have every reason to be happy but if you don't have a job it's not particularly clear from this budget where that job is going to come from in this budget Bihar hased some massive allocations a makana board to boost production huge investments in infrastructure with four new airports more funding for I partna along with a big push for agriculture and by the way be getting these concessions is not the problem the problem is that no other state has been even mentioned in this budget speech and from West Bengal MP Abhishek Banner said that the budget had nothing for common people and that the budget was presented with the upcoming Bihar elections in mind he added as far as West Bengal is concerned it has not got anything in the last 10 years nor was there anything today so the opposition is calling this a political bribe saying that the government is pouring in money into Bihar not for development but to actually win votes now whether this makes sense or not you let me know in the comments similarly pamam is saying that while the government is celebrating a reduction of the fiscal deficit from 4 4.

9% to 4.