Introduction

The Union Budget 2025-26, presented by Finance Minister Nirmala Sitharaman, introduces major tax reforms, customs duty changes, logistics infrastructure development, and export incentives. The budget focuses on simplifying taxation, boosting MSME growth, modernizing ports and airports, and strengthening India’s global trade competitiveness. Read the official press release here.

With a fiscal deficit target of 4.4% of GDP, the government is prioritizing infrastructure expansion, supply chain digitalization, tax relief, and business-friendly policies.

This blog provides a structured analysis of the budget’s impact on income tax, corporate taxation, logistics, MSMEs, shipping, and international trade.

1. Income Tax & Corporate Tax Reforms

New Income Tax Slabs (AY 2025-26)

  • ₹0 – ₹4 lakh → No Tax
  • ₹4 – ₹8 lakh → 5%
  • ₹8 – ₹12 lakh → 10%
  • ₹12 – ₹16 lakh → 15%
  • ₹16 – ₹20 lakh → 20%
  • ₹20 – ₹24 lakh → 25%
  • Above ₹24 lakh → 30%

Key Tax Changes

  • No income tax up to ₹12 lakh for individuals.
  • Standard Deduction increased to ₹75,000 for salaried professionals.
  • TDS exemption limit increased to ₹1 lakh for senior citizen interest income.
  • TDS threshold on rental income increased to ₹6 lakh.
  • Corporate tax remains unchanged; 15% tax rate for new manufacturing extended till March 2026.

Impact

  • More disposable income for middle-class taxpayers.
  • Encouragement for MSMEs and manufacturing sector investments.
  • Simplified tax compliance for businesses.

2. Logistics and Infrastructure Development

Key Announcements

  • ₹2 lakh crore allocated under the National Logistics Policy (NLP).
  • ₹20,000 crore for freight corridor expansion and multi-modal logistics parks.
  • AI-powered logistics hubs for real-time tracking and digital freight solutions.
  • Increased investments in Sagarmala and Bharatmala projects.

Impact

  • Faster freight movement and lower supply chain costs.
  • Boost for multimodal logistics and last-mile connectivity.
  • Seamless customs clearance via digital integration.

3. Customs Duty & Import-Export Policies

Customs Duty Changes

  • Import duty on logistics capital goods reduced from 15% to 10%.
  • Port equipment and cranes exempted from duty.
  • Higher import duties on luxury goods, automobiles, and high-end furniture.
  • Export incentives under RoDTEP expanded with ₹10,000 crore allocation.

Customs Clearance Reforms

  • AI-powered risk assessment to expedite customs clearance.
  • Provisional customs assessment to be finalized within 2 years.
  • Electronic Data Interchange (EDI) adoption for seamless documentation.

Impact

  • Reduced import costs for logistics & supply chain equipment.
  • Encouragement for domestic manufacturing by discouraging non-essential imports.
  • Simplified export procedures & duty relief for exporters.

4. MSME Growth & Startup Support

Budget Allocations for MSMEs & Startups

  • ₹9,000 crore credit guarantee fund for small businesses.
  • Export incentives for MSMEs in SEZs & Export Clusters.
  • Investment & turnover limits for MSME classification increased by 2.5 times.
  • Fund of Funds for Startups with ₹10,000 crore allocation.

Technology & Credit Support

  • Tax breaks for AI, automation, and blockchain adoption.
  • Loan limit under Kisan Credit Card (KCC) increased from ₹3 lakh to ₹5 lakh.
  • Credit cards with ₹5 lakh limit introduced for MSMEs registered on Udyam portal.

Impact

  • Easier credit access & reduced compliance burden.
  • Encouragement for digital adoption in MSMEs.
  • Boost for export-oriented businesses.

5. Shipping, Port Development & Warehousing

Key Announcements

  • ₹15,000 crore allocated for port modernization & smart handling systems.
  • Subsidies for coastal shipping to promote intermodal transport.
  • Reduction of duties on shipbuilding equipment.
  • Warehousing infrastructure upgrades for import/export logistics.

Impact

  • Lower freight costs and reduced port congestion.
  • Boost for India’s shipbuilding industry.
  • More efficient warehousing and air cargo storage.

6. Sustainability & Green Energy Investments

Key Announcements

  • ₹1 lakh crore allocated for renewable energy projects.
  • Carbon credits for logistics providers reducing emissions.
  • Tax incentives for green hydrogen & battery storage solutions.

Impact

  • Encourages clean energy adoption in industries.
  • Reduces carbon footprints in supply chains.

Learn more about sustainability initiatives.

7. Other Major Budget Announcements

  • Jal Jeevan Mission extended till 2028.
  • ₹1 lakh crore Urban Challenge Fund to transform cities.
  • Five-year Mission for Cotton Productivity to support farmers.
  • Introduction of 50,000 Atal Tinkering Labs in schools.
  • New AI Research Centre with ₹500 crore outlay.
  • Modified UDAN Scheme to connect 120 new destinations.
  • Insurance FDI limit raised from 74% to 100%.

FAQs on Budget 2025

Q1: What is the biggest tax relief in Budget 2025?
📌 No income tax up to ₹12 lakh & new tax slabs with lower rates.

Q2: How does Budget 2025 benefit exporters?
📌 RoDTEP incentives, bonded warehousing, and faster customs clearance.

Q3: What are the key benefits for MSMEs?
📌 Easier credit, higher MSME turnover limits, and tax incentives for tech adoption.

Conclusion

The Union Budget 2025-26 prioritizes economic growth, tax simplification, logistics efficiency, and export competitiveness. Whether you are a business owner, logistics provider, exporter, or taxpayer, these reforms offer financial benefits and operational ease.

At Active Cargo Solutions, we help businesses navigate regulatory changes, optimize supply chain operations, and ensure seamless customs clearance. Explore our services here.