The government of India through Nirmala Sitharaman, Finance Minister, presented the Union Budget 2025-26 before the nation on 1st Feb 2025 giving a boost to the the spirit and aspirations of the young nation with a capex expenditure of Rs 11.21 Lakh Crores. Under this, the government made a slew of announcements ranging from policies to projects that will hugely impact the concerned sectors. 

In this article let's pick the key takeaways to assess their impact on the sectors, for instance,  how’s the provision of connecting the PHCs and Higher Secondary Schools with Bharatnet going to impact the overall network connectivity paradigm of India?  Let's discuss the major policy and budgetary provisions made in the Budget 2025-26. 

Budget 2025-26: What’s in for the Startups? 

A new Fund of Funds will be set up for startups with a fresh impetus of 10,000 Crore to support their proliferation. It also marked the launch of a new scheme for 5 lakh women, Scheduled Castes, and Scheduled Tribes first-time entrepreneurs to provide them term loans up to Rs. 2 crore during the next 5 years.

This holds the potential to usher hope and enthusiasm among full-fledged as well as first-time entrepreneurs through facilitating good monetary assistance that will enable them to grow their businesses. 

Read more at: Budget 2025: Government to Explore Deep Tech Fund of Funds, Expands SIDBI Fund for Startups

Budget 2025-26: What’s in for the Electronics? 

The Basic Customs Duty (BCD) on Interactive Flat Panel Displays (IFPD) has been raised to 20%, while the duty on Open Cells has been reduced to 5%. Further to encourage the production of Open Cells, BCD on their components has also been exempted. Also, the government emphasized its support in enabling the domestic electronic equipment industry to leverage the opportunities related to Industry 4.0. 

This enhanced policy support aims to give the domestic electronic manufacturing industry a boost and also disincentivize the import of finished goods into the nation, at the same time. 

Budget 2025-26: What’s in For the AI Ecosystem? 

A new Centre of Excellence in AI at a budget outlay of INR 500 Crores will be set up to drive India's AI revolution by equipping its workforce to tackle key challenges in the AI space faced by developers and users. It includes practicality and reliability, the need for a robust infrastructure to scale AI, and lastly maintaining a balance between quality and efficiency.

Read more at: Sitharaman Announces Centre of Excellence in AI for an outlay of Rs 500 Crores under Budget 2025-26

Continuing the legacy of innovation and talent, the Centre of Excellence in AI is positioned to be a beacon of progress, strengthening India's AI ecosystem and making a meaningful impact on the global landscape.

Budget 2025-26: What's in for the Telecom Sector? 

The Bharatnet project has been allocated Rs 22,000 Crore to enable high-speed internet connectivity for Government Secondary Schools and Primary Health Centers (PHCs). By bridging the digital divide in the underserved regions, Bharatnet will ensure seamless communication for government bodies and professionals. This initiative will enhance efficiency in governance and accessibility for the people. 

Read more at: Bharatnet Budget Jumps 238% under Budget 2025-26 to Connect Government Secondary Schools and PHCs With High-speed Internet

Budget 2025-26: What’s in for the Mobility Sector? 

Major tax exemptions have been announced to support lithium battery production and related technologies by eliminating the Basic Customs Duty (BCD) on key raw materials, including cobalt, lithium-ion battery scrap, lead, zinc, and 12 other critical minerals essential for manufacturing batteries, semiconductors, and renewable energy equipment. 

Read more at: Budget 2025: Government Announces Major Tax Exemptions to Boost Lithium Battery Production and Electric Vehicle Industry

This strategic move is expected to reduce production costs for industries dependent on these materials, benefiting sectors such as electric vehicles, electronics, and clean energy.