Before we look ahead, let’s rewind to the major moves that shaped the last fiscal year.
Union Budget 2025 was presented at a time when the focus was clear: support growth without losing fiscal control, ease pressure on the middle class, and push long-term structural reforms. One year later, the real story of the budget lies not in announcements, but in outcomes.
From income tax relief and higher consumption to targeted agricultural reforms, manufacturing incentives, and sustained capital expenditure, Budget 2025 quietly influenced how households spent, how businesses planned, and how states invested. This recap looks at what actually changed over the year and what the budget delivered on the ground.
This blog by Arham wealth examines how the key policy decisions of Union Budget 2025 played out over the year, what actually changed on the ground, and how these shifts matter for investors navigating an uncertain macro environment.
One of the most visible changes from Union Budget 2025 came through income tax reforms under the new tax regime.
The decision to raise the nil tax slab to ?12 lakh eased pressure on salaried individuals and small business owners. At the same time, applying the 30% tax rate only on incomes above ?24 lakh made the structure more balanced. Over the last year, this translated into higher take-home pay and better cash flow for households.
The impact showed up in steady consumption across urban and semi-urban markets. Discretionary spending improved, and many households found more room to save or invest rather than cut expenses. Just as important, the simpler structure nudged more taxpayers toward the new regime, reducing complexity and improving compliance.
Budget 2025 signaled a clear shift in agricultural policy. Instead of short-term relief measures, the focus moved toward improving productivity and income sustainability.
The Prime Minister Dhan-Dhaanya Krishi Yojana targeted 100 districts with low farm productivity, covering around 1.7 crore farmers. Over the past year, better irrigation access, improved farming practices, and financial support have begun to show results at the ground level.
Another key initiative was the Mission for Aatmanirbharta in Pulses, a six-year plan focused on boosting domestic production of tur, urad, and masoor. While the mission is still in its early stages, the direction is clear. Reduced import dependence and stronger domestic supply chains are now central to agricultural planning.
On the industrial front, Budget 2025 focused on strengthening long-term capacity rather than chasing short-term growth.
The National Manufacturing Mission reinforced the Make in India agenda by offering policy clarity and support across small, medium, and large enterprises. Over the past year, this stability has supported fresh investments, especially in sectors linked to exports and domestic value addition.
Targeted incentives for electronics and electric vehicles lowered input costs by easing duties on key components. This encouraged domestic manufacturing and helped Indian players integrate better with global supply chains.
For MSMEs, the expansion of the Credit Guarantee Scheme improved access to financing. Reduced dependence on collateral and better liquidity allowed smaller businesses to invest in technology, expand operations, and manage working capital more efficiently.
One of the most impactful yet understated measures of Budget 2025 was the allocation of ?1.5 lakh crore in 50-year interest-free loans to states.
Over the past year, this support has helped states accelerate spending on infrastructure such as roads, logistics, and urban development without stretching their finances. This steady capex push has supported employment and improved long-term productivity, even as fiscal discipline was maintained at the central level.
Beyond growth and infrastructure, Budget 2025 also focused on social security and long-term capability building.
Healthcare coverage for gig workers addressed a growing segment of the workforce that often remains outside formal safety nets. Increased emphasis on research, innovation, and education signaled an intent to prepare the economy for future demands rather than immediate cycles.
One year later, Union Budget 2025 stands out for its intent and execution rather than headline-grabbing announcements. Tax relief improved household cash flows, agricultural reforms focused on productivity, manufacturing policies supported capacity building, and sustained capital expenditure quietly strengthened the growth engine. The budget’s real impact unfolded gradually, shaping behaviour across consumers, businesses, and state governments.
For investors, these shifts matter. Budgets influence earnings cycles, sector leadership, and long-term investment themes. Understanding what actually worked, and what is still evolving, helps separate short-term noise from structural opportunity.
At Arham Wealth, we focus on exactly this intersection between policy and portfolios. By tracking how budget decisions translate into real economic outcomes, we help investors stay aligned with long-term opportunities, manage risk through changing cycles, and invest with clarity rather than speculation.
As the next Union Budget approaches, the key question remains: which themes will strengthen further, and how should investors position themselves ahead of the next phase?
Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. | This content is for informational purposes only. | Name of member: Arham Wealth Management Private Limited | SEBI Registration: INZ000189034, DP: IN-DP-456-2020 | Read Full Disclaimer: https://www.arhamwealth.com/disclaimer
Source: My Gov
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