UPSC Mains Current Affairs for 13 October 2025

India’s Ethanol Revolution Driven by Grains – Explained

October 13, 2025

Ethanol Revolution Latest News

India’s ethanol blending programme has undergone a major shift, with grain-based ethanol, especially from maize, surpassing sugarcane-based production for the first time, marking a structural change in the country’s biofuel strategy.

Evolution of India’s Ethanol Blending Programme

India’s ethanol blending programme (EBP), launched to reduce crude oil imports and support sugarcane farmers, has undergone a remarkable transformation.
Initially conceived to enable sugar mills to generate additional revenue and make timely payments to cane growers, the programme has evolved into a multi-feedstock ethanol industry powered largely by grains, especially maize and rice.
This shift marks a major structural change in India’s biofuel policy. What began as a sugarcane-linked project is now driven by grain-based distilleries, which have received over Rs. 40,000 crore in investments, reshaping the dynamics of rural industry, fuel policy, and agricultural markets.

Sugarcane as the Foundation

Ethanol production in India began through the fermentation of sucrose from molasses, a by-product of sugarcane processing.
Until 2017-18, sugar mills mainly used C-heavy molasses, the final by-product of sugar extraction.
However, the introduction of higher procurement prices for ethanol made from B-heavy molasses and direct cane juice or syrup encouraged mills to divert cane from sugar production to ethanol.
Between 2013-14 and 2018-19, ethanol supplies to oil marketing companies (OMCs) surged from 38 crore litres to nearly 189 crore litres, raising the average blending rate from 1.6% to 4.9%.
The policy was hailed as a success in stabilising the sugar sector, especially during periods of price volatility and excess production.

The Shift from Sugar to Grain

Starting from the 2018-19 fiscal year, the government allowed ethanol production from grains such as maize, rice, and damaged foodgrains, setting differential ex-distillery prices for each.
Initially, this was meant to help sugar mills operate their distilleries year-round by using grains during the off-season (May-October).
However, with attractive pricing and flexible feedstock regulations, standalone grain-based ethanol plants began proliferating across India, particularly in Punjab, Haryana, Bihar, Andhra Pradesh, Madhya Pradesh, Maharashtra, Karnataka, Rajasthan, and Chhattisgarh.
By 2023-24, this transition became strikingly visible. Out of the 672.49 crore litres of ethanol supplied to OMCs, only 270.27 crore litres (40.2%) came from sugarcane-based sources, while 402.22 crore litres (59.8%) were grain-based, mostly maize and broken rice.

Maize Becomes the Mainstay

The current 2024-25 ethanol supply year reflects the dominance of grains. Out of the 920 crore litres likely to be procured, about 620 crore litres are expected to come from grain-based sources, with maize contributing nearly 420 crore litres.
Two main factors explain this shift:
Reduced Sugarcane Availability: Droughts in 2023-24 and 2024-25 hit sugarcane production, prompting the government to restrict ethanol derived from cane juice and B-heavy molasses to safeguard sugar supplies for domestic consumption.
- Sugar diverted for ethanol fell from 45 lakh tonnes in 2022-23 to 24-35 lakh tonnes in the subsequent two years.
- Sugar production declined from 359 lakh tonnes (2021-22) to an estimated 261 lakh tonnes (2024-25).
Pricing Advantage: Ethanol from maize fetches Rs. 71.86 per litre, compared to Rs. 57.97 from C-heavy molasses, Rs. 60.73 from B-heavy, and Rs. 65.61 from cane juice/syrup. This made maize ethanol more lucrative for distillers.

Growth, Capacity and Policy Implications

For 2025–26, OMCs invited tenders for 1,050 crore litres of ethanol to achieve the 20% blending target, but received offers totalling 1,776 crore litres, far exceeding requirements. Of this, 1,304 crore litres were from grain-based sources, mainly maize and FCI rice.
Currently, India has 499 operational distilleries with a combined production capacity of 1,822 crore litres annually.
The massive expansion, driven by private and cooperative investment, shows the sector’s potential but also raises policy challenges.

Challenges and Sustainability Concerns

Excess Production Capacity
- With ethanol demand capped by blending limits (20% being the technical ceiling for current vehicles), the sector faces a looming oversupply risk. Balancing production capacity and consumption will require strategic planning to avoid price distortions.
The Food vs. Fuel Debate
- India’s ethanol policy now faces the global dilemma of diverting food grains for fuel. Producing 420 crore litres of ethanol from maize consumes about 11 million tonnes of grain, roughly 26% of India’s total maize output (42 mt).
- Since maize is a critical input for poultry, dairy, and livestock feed, rising ethanol demand could pressure feed costs and food inflation.
- Similarly, ethanol from rice depends on surplus stocks held by the Food Corporation of India (FCI), which may not persist every year.
Environmental Considerations
- While ethanol is a cleaner-burning fuel that reduces greenhouse gas emissions, large-scale grain diversion raises sustainability concerns related to water use, land allocation, and fertiliser intensity, particularly in maize cultivation.

Government’s Future Strategy

To ensure balance, the government is likely to adopt a dual-feedstock policy, encouraging both sugarcane and grain-based ethanol while closely monitoring the food security implications.
Efforts are also underway to develop second-generation (2G) biofuels using agricultural residues like paddy straw, which could help achieve the 20% blending target by 2025-26 sustainably.
The government’s continued focus on ethanol reflects its commitment to energy transition, rural income diversification, and reducing crude oil imports, which cost over $160 billion annually.

Source: IE

Ethanol Revolution FAQs

Q1: What was the original purpose of India’s ethanol blending programme?

Ans: It was introduced to help sugar mills make timely payments to farmers and reduce crude oil imports.

Q2: Which feedstock currently dominates India’s ethanol production?

Ans: Maize has overtaken sugarcane as the primary feedstock for ethanol in India.

Q3: What percentage of ethanol in 2023–24 came from sugarcane?

Ans: Only about 40% of total ethanol supply was sugarcane-based; the rest came from grains.

Q4: Why has sugarcane-based ethanol declined recently?

Ans: Drought conditions and government limits on using cane juice and molasses reduced sugarcane ethanol output.

Q5: What are the main challenges of grain-based ethanol?

Ans: Excess capacity, the food-versus-fuel conflict, and sustainability of maize and rice supply are key challenges.

India’s 4G Stack: A Step Toward Telecom Self-Reliance and Global Digital Exports

October 13, 2025

4G Stack Latest News

PM Modi, at the India Mobile Congress 2025, announced that India’s indigenously developed 4G stack would not only enhance connectivity and internet access within the country but also be exported globally.
The 4G stack, comprising both telecom hardware and software, is part of India’s strategy to challenge China’s dominance in building telecom infrastructure across the developing world, especially in Africa.
Though less advanced than Chinese systems from Huawei and ZTE, India aims to expand its footprint through affordable, secure, and locally developed solutions.
Additionally, New Delhi plans to export its ‘India Stack’ — a set of digital public infrastructure tools for identity, data management, and payments — positioning itself as a key player in digital transformation for developing nations.

About 4G

4G (fourth-generation wireless) represents the broadband mobile communication standard that succeeded 3G and paved the way for 5G.
It delivers high-speed internet, enabling HD video streaming and wireless broadband connectivity without wired ISP networks.
Technologies such as LTE, MIMO, and OFDM power 4G networks, offering higher bandwidth, lower latency, and improved efficiency.

India’s Indigenous 4G Technology Stack: A Step Toward Telecom Self-Reliance

India has achieved a landmark milestone by launching its first indigenously developed 4G network, featuring 98,000 Swadeshi 4G towers powered entirely by homegrown technology.
The initiative — led by C-DOT (core network), Tejas Networks (radio access), and TCS (system integration) — marks a major stride towards Aatmanirbhar Bharat and digital self-reliance.
Previously reliant on foreign technology for 2G, 3G, and 4G, India built this stack from scratch during the Covid-19 pandemic, demonstrating resilience, innovation, and supply-chain independence.
The BSNL 4G stack, designed to be cloud-native and 5G-ready, provides seamless connectivity and ensures easy future upgrades.
Complementary initiatives such as the Bharat 6G Alliance, Telecom Technology Development Fund, and 100 5G/6G labs are accelerating India’s journey toward Viksit Bharat 2047 and global digital leadership.

Key Features of India’s 4G Stack

End-to-End Indigenous Stack: Combines Tejas Networks’ Radio Access Network, C-DOT’s Core Network, and TCS integration, cutting reliance on foreign vendors.
Cloud-Native Software Architecture: Enables scalability, rapid upgrades, and smooth migration to 5G.
Future-Proof Design: The network is 5G-ready, allowing upgrades without replacing existing infrastructure.
Nationwide Reach: Deployed across 92,000+ sites, bringing connectivity to 22 million citizens, including tribal and remote areas.

Benefits and Impact of the Indigenous 4G Stack

Strategic Autonomy and Digital Sovereignty - Empowers India to control its telecom infrastructure, ensuring security, independence, and reduced dependence on global tech providers.
Digital Inclusion: Enhances access to education, healthcare, and agriculture services through reliable internet in remote regions.
Secure Connectivity for Armed Forces: Strengthens national security and ensures secure communications for defense personnel.
Employment and Supply-Chain Development - Boosts domestic manufacturing, generates jobs, and nurtures a skilled workforce, reinforcing India’s telecom ecosystem.
Global Export Potential - The indigenous 4G stack meets domestic needs while holding export potential, with interest from multiple developing nations.
Rapid Indigenous Development - Developed in just 22 months, the project highlights India’s engineering capability and agility in telecom innovation.
Swadeshi Principle in Action - Reflects the Swadeshi ethos, promoting domestic production, local skills, and community enterprise, driving inclusive growth.

India’s 4G Export Plan as a Response to China’s Digital Silk Road

For years, China’s telecom giants like Huawei and ZTE have dominated developing markets by offering low-cost telecom infrastructure, backed by state funding and easy loans.
According to the Organisation for Research on China and Asia, this strategy forms part of China’s Digital Silk Road (DSR) — a key component of the Belt and Road Initiative aimed at expanding digital connectivity across the developing world.
The DSR promotes Chinese technology, goods, and services, including cellular networks, mobile apps, and payment platforms, while cementing China’s role as the global supplier of digital infrastructure.
It represents a state–industry alliance, supported by policy banks and political backing, to strengthen China’s technological and geopolitical influence.

Source: IE | PIB | IE

4G Stack FAQs

Q1: What is India’s 4G stack?

Ans: India’s 4G stack is a fully indigenous telecom solution developed by C-DOT, Tejas, and TCS, offering cloud-ready, 5G-compatible infrastructure and digital sovereignty.

Q2: Why is the 4G stack important for India?

Ans: It ensures strategic autonomy, enhances digital self-reliance, reduces dependence on foreign technology, and supports India’s Aatmanirbhar Bharat and Viksit Bharat 2047 vision.

Q3: How does the 4G stack challenge China’s Digital Silk Road?

Ans: By offering affordable, homegrown telecom infrastructure and digital tools, India positions itself as a credible alternative to China’s global technology dominance.

Q4: What are the key features of India’s 4G stack?

Ans: It’s cloud-native, 5G-ready, scalable, and integrates radio, core, and software systems domestically, enabling seamless upgrades and wide network deployment.

Q5: What impact will this have globally?

Ans: The indigenous stack enables India to meet domestic demand and export telecom technology to developing nations, strengthening its global digital footprint.

India’s Quantum Breakthrough in Cybersecurity: True Random Numbers for Unhackable Encryption

October 13, 2025

Digital Security Latest News

In a major advancement for cybersecurity, researchers at Bengaluru’s Raman Research Institute have successfully developed and certified a quantum-based method for generating true random numbers.
Using a general-purpose quantum computer, the team experimentally demonstrated authentic randomness, a crucial element for creating unhackable encryption systems.
This marks the first time such a technique is ready for real-world deployment, potentially laying the foundation for next-generation, hack-proof digital security.

Random Numbers in the Quantum Computing Era

Random numbers are the foundation of modern digital security, forming the basis for encryption keys, passwords, and authentication systems.
Their strength lies in being completely unpredictable, ensuring data remains secure from hacking attempts.

Pseudorandom Numbers and Their Limits

Currently, most systems use pseudorandom numbers — numbers generated through computer algorithms that only simulate randomness.
While these are nearly impossible to predict without knowing the algorithm and input seed, they are not truly random.
These pseudorandom systems are sufficiently secure for now; even with brute-force attacks, traditional computers would take centuries to break their encryption.
However, the emergence of quantum computers, which exploit quantum properties like superposition and entanglement, poses new vulnerabilities to current encryption systems.
Quantum computers can process data exponentially faster, potentially decoding existing cryptographic protections that rely on pseudorandomness.

The Need for True Randomness

As quantum computing advances, there’s a growing need to upgrade digital security using truly random numbers generated from quantum processes.
Such quantum randomness could make future encryption systems virtually unbreakable, protecting sensitive data in the post-quantum era.

Randomness in Nature and Its Role in Quantum Security

Unlike algorithmic generation, true randomness exists in natural phenomena such as radioactive decay, weather fluctuations, and especially quantum behaviour of microscopic particles.
In the quantum realm, particles like photons or electrons exist in multiple states simultaneously, and only upon measurement do they randomly collapse into a definite state — a process that cannot be predicted.

How Quantum Random Number Generators Work

A Quantum Random Number Generator (QRNG) uses this unpredictability.
For instance, when a stream of photons is measured for a specific property, outcomes are assigned as 0 or 1, creating a truly random binary sequence.
However, if the device is biased or faulty, the randomness can be compromised — introducing vulnerabilities that can be exploited by hackers.

The Challenge of Certification

Even with quantum systems, verifying that numbers are genuinely random is difficult.
This problem of certification arises because external interference or internal defects can mimic randomness, making authenticity uncertain.
Cybersecurity must assume that malicious actors possess limitless hacking potential.
Thus, the aim is not merely to make systems hard to hack, but to make hacking theoretically impossible under known physical laws — a goal that quantum-certified randomness seeks to achieve.

From Entanglement to True Randomness

Quantum physicists at the Raman Research Institute (RRI) have pioneered a device-independent method for generating true random numbers, leveraging a quantum property known as entanglement.
In entanglement, two particles remain mysteriously linked, with the behaviour of one instantly influencing the other, regardless of distance.
Randomness is confirmed when their measurement outcomes violate Bell’s Inequality, a signature of genuine quantum behaviour.
- The violation of Bell's Inequality means that the quantum world cannot be explained by a local, predetermined plan. It confirms two major things:
  - Genuine Randomness: The results of quantum measurements are truly, fundamentally random.
  - Spooky Connection (Non-locality): Particles can be instantaneously linked across vast distances, a connection that is stronger than any "classical" signal could achieve.

Global Significance and Future Potential

The current achievement represents the first major globally relevant output from India’s National Quantum Mission, aligning perfectly with its goals of advancing quantum technologies.
While still in the laboratory stage, the method could evolve into a commercial-grade system for hack-proof digital security with further support from government and private funding.
This marks a transformative step in quantum cryptography and cybersecurity, positioning India among global leaders in quantum technology innovation.

Source: IE | ToI

Digital Security FAQs

Q1: What did Indian scientists achieve in quantum security?

Ans: Researchers at Bengaluru’s Raman Research Institute developed a quantum-based method to generate true random numbers, vital for unbreakable encryption and secure communication.

Q2: Why are random numbers crucial for digital security?

Ans: They form the foundation of encryption keys, passwords, and authentication systems, ensuring unpredictability and preventing cyberattacks.

Q3: How do quantum random number generators work?

Ans: They measure unpredictable quantum events, like photon behaviour, to produce truly random sequences, unlike algorithm-based pseudorandom systems.

Q4: What does the violation of Bell’s Inequality prove?

Ans: It confirms genuine quantum randomness and non-local entanglement, proving that results are fundamentally unpredictable and not governed by hidden patterns.

Q5: What is the global significance of this discovery?

Ans: The breakthrough positions India as a leader in quantum cryptography and aligns with the National Quantum Mission’s goal of advancing secure digital technologies.

Union Budget 2025-26: Key Features, Growth Engines, and Reforms

October 13, 2025

What’s in Today’s article?

Union Budget 2025-26 Latest News
About Union Budget
Key features of the Union Budget 2025-26
Growth engines as highlighted in Union Budget 2025-26
Budget 2025-26: Reforms as the Fuel of growth
Financial Sector Reforms and Development as outlined in Union Budget 2025-26
Key Measures for a Modern Regulatory System
Union Budget 2025-26: Fiscal Consolidation
Other highlights of the Union Budget 2025-26
Vision for Viksit Bharat
Union Budget 2025-26 FAQs

Union Budget 2025-26 Latest News

The Finance Minister presented the Union Budget 2025-26 with the theme “Sabka Vikas” stimulating balanced growth of all regions.

About Union Budget

Article 112 of the Constitution requires the government to present to Parliament a statement of estimated receipts and expenditure in respect of every financial year, from April 1 to March 31.
This statement is called the annual financial statement.
It is divided into three parts - Consolidated Fund, Contingency Fund and Public Account.
For each of these funds, the government has to present a statement of receipts and expenditure.

Key features of the Union Budget 2025-26

Quoting Telugu poet Shri Gurajada Appa Rao’s famous saying, ‘A country is not just its soil; a country is its people.’ – the FM presented the Union Budget.
In line with the theme of this year’s budget, the FM outlined the broad Principles of Viksit Bharat.

Six key principles of Viksit Bharat as outlined in the Union Budget 2025-26

Zero poverty
Quality education for all
Affordable, high-quality healthcare
Skilled workforce with meaningful employment
70% women participation in economic activities
Farmers making India the ‘food basket of the world’

Prioritized Section under the Union Budget 2025-26

The Budget prioritizes the poor (Garib), youth, farmers (Annadata), and women (Nari).
It does so while aiming to boost growth, attract private investment, uplift households, and empower the middle class.

Key reform areas as outlined in the Union Budget 2025-26

Key reform areas include Taxation, Power, Urban Development, Mining, Financial Sector, and Regulations to enhance India's global competitiveness.

Engines in the journey to Viksit Bharat

Agriculture, MSMEs, Investment, and Exports are identified as growth engines, with reforms as the driving force and inclusivity as the guiding principle.

Growth engines as highlighted in Union Budget 2025-26

Agriculture, MSMEs, Investment, and Exports are identified as growth engines in the Union Budget 2025-26.

1st Engine: Agriculture

Prime Minister Dhan-Dhaanya Krishi Yojana
- Launched in partnership with states, covering 100 districts.
- Aims to increase productivity, promote crop diversification, enhance storage, improve irrigation, and provide credit access.
Rural Prosperity and Resilience Programme
- Multi-sectoral initiative with states to tackle underemployment in agriculture.
- Focus on skilling, investment, technology, and boosting the rural economy.
- Benefits rural women, young farmers, rural youth, small & marginal farmers, and landless families.
Mission for Aatmanirbharta in Pulses (6 Years)
- Special focus on Tur, Urad, and Masoor pulses.
- NAFED & NCCF to procure these pulses from farmers for the next 4 years.
Key Agricultural Initiatives
- Comprehensive Programme for Vegetables & Fruits.
- National Mission on High Yielding Seeds.
- Five-yearMission for Cotton Productivity.
Increased Loan Limits for Farmers
- Kisan Credit Card loan limit raised from ₹3 lakh to ₹5 lakh under a modified interest subvention scheme.

2nd Engine: MSMEs

Strengthening MSMEs for Growth
- MSMEs contribute 45% of India's exports and are key to economic development.
- Investment and turnover limits for MSME classification increased to 2.5 times and 2 times, respectively.
- Enhanced credit availability with expanded guarantee cover announced.
Support for Women, SC/ST Entrepreneurs
- New scheme for 5 lakh first-time entrepreneurs from women, Scheduled Castes, and Scheduled Tribes.
- Provides term loans up to ₹2 crore over the next 5 years.
Boosting Manufacturing and 'Made in India'
- Scheme to make India a global hub for toys under the 'Made in India' initiative.
- Launch of a National Manufacturing Mission to support small, medium, and large industries, reinforcing 'Make in India'.

3rd Engine: Investment

Investment in People
- 50,000 Atal Tinkering Labs to be set up in government schools over the next 5 years.
- Broadband connectivity for all government secondary schools and primary health centres in rural areas under Bharatnet.
- Bharatiya Bhasha Pustak Scheme to provide digital-form Indian language books for school and higher education.
- Five National Centres of Excellence for Skilling with global partnerships for “Make for India, Make for the World” manufacturing.
- Centre of Excellence in AI for Education with an outlay of ₹500 crore.
- Gig workers to receive identity cards, e-Shram portal registration, and healthcare under PM Jan Arogya Yojana.
Investment in Economy
- Infrastructure ministries to create a 3-year PPP project pipeline.
- ₹1.5 lakh crore allocated for 50-year interest-free loans to states for capital expenditure and reforms.
- Second Asset Monetization Plan (2025-30) to reinvest ₹10 lakh crore into new projects.
- Jal Jeevan Mission extended till 2028 with focus on quality, operations, and maintenance through Jan Bhagidhari.
- Urban Challenge Fund of ₹1 lakh crore for initiatives like ‘Cities as Growth Hubs’, ‘Creative Redevelopment of Cities’, and ‘Water & Sanitation’.
Investment in Innovation
- ₹20,000 crore allocated for a private sector-driven Research, Development, and Innovation initiative.
- National Geospatial Mission to develop geospatial infrastructure and data for urban planning.
- Gyan Bharatam Mission for survey, documentation, and conservation of 1 crore+ manuscripts.
- National Digital Repository of Indian Knowledge Systems proposed for knowledge sharing.

4th Engine: Exports

Export Promotion & Digital Infrastructure
- Export Promotion Mission to help MSMEs tap into global markets, jointly driven by Commerce, MSME, and Finance Ministries.
- ‘BharatTradeNet’ (BTN) proposed as a unified digital public infrastructure for trade documentation and financing solutions.
Boosting Domestic Manufacturing & Industry 4.0
- Government to develop domestic manufacturing capacities for better integration with global supply chains.
- Support for domestic electronic equipment industry to leverage Industry 4.0 opportunities.
- National Framework proposed for Global Capability Centres (GCCs) in emerging Tier-2 cities.
Infrastructure & Warehousing Support
- Government to upgrade infrastructure and warehousing for air cargo, with special focus on high-value perishable horticulture produce.

Budget 2025-26: Reforms as the Fuel of growth

Over the past 10 years, the government has implemented key taxpayer-friendly reforms, including:
- Faceless assessment; Taxpayers' charter; Faster refunds
- 99% returns on self-assessment
- Vivad se Vishwas scheme for dispute resolution
Reaffirming commitment to “Trust First, Scrutinize Later”, the Finance Minister emphasized continued tax reforms to enhance convenience for taxpayers.

Financial Sector Reforms and Development as outlined in Union Budget 2025-26

The Union Budget 2025-26 introduced key reforms to improve compliance, attract investments, and build a strong regulatory environment:
- FDI Limit in Insurance: Raised from 74% to 100% for companies investing the entire premium in India.
- Light-Touch Regulatory Framework: Focus on trust-based governance to boost productivity and employment.

Key Measures for a Modern Regulatory System

High-Level Committee for Regulatory Reforms
- Review non-financial sector regulations, licenses, and permissions.
- Strengthen trust-based governance and ease of compliance.
- Provide recommendations within one year.
Investment Friendliness Index of States
- Launched in 2025 to promote competitive cooperative federalism.
Financial Stability and Development Council (FSDC) Mechanism
- Assess impact of financial regulations.
- Enhance financial sector responsiveness and development.
Jan Vishwas Bill 2.0
- Decriminalize 100+ provisions in various laws to improve ease of doing business.

Union Budget 2025-26: Fiscal Consolidation

The Union Budget 2025-26 reaffirms the Government's commitment to fiscal discipline by ensuring that the fiscal deficit remains on a declining trajectory and Central Government debt stays sustainable.

Fiscal Deficit Targets

Revised Estimate (RE) 2024-25: 4.8% of GDP
Budget Estimate (BE) 2025-26: 4.4% of GDP

Revised Estimates (2024-25)

Total Receipts (excluding borrowings): ₹31.47 lakh crore
Net Tax Receipts: ₹25.57 lakh crore
Total Expenditure: ₹47.16 lakh crore
Capital Expenditure: ₹10.18 lakh crore

Budget Estimates (2025-26)

Total Receipts (excluding borrowings): ₹34.96 lakh crore
Net Tax Receipts: ₹28.37 lakh crore
Total Expenditure: ₹50.65 lakh crore

Other highlights of the Union Budget 2025-26

Reposing faith on middle class in nation building, the Union Budget 2025-26 proposes new direct tax slabs and rates under the new income tax regime.
Middle-Class Tax Relief & Personal Income Tax Reforms
- No Income Tax on total income up to ₹12 lakh per annum under the new tax regime.
- Salaried individuals earning up to ₹12.75 lakh per annum will pay NIL tax after a ₹75,000 standard deduction.
- Estimated revenue loss of ₹1 lakh crore due to new tax structure.
TDS/TCS Rationalization:
- Senior citizens' tax deduction limit on interest doubled from ₹50,000 to ₹1 lakh.
- TDS threshold on rent raised from ₹2.4 lakh to ₹6 lakh per annum.
- TCS collection threshold increased to ₹10 lakh.
- Delay in TCS payments decriminalized (following TDS decriminalization).
Compliance Ease & Incentives:
- Updated return filing period extended from 2 years to 4 years.
- Registration period for small charitable trusts increased from 5 to 10 years.
- Annual value of two self-occupied properties can be claimed as NIL without conditions.
- National Savings Scheme withdrawals (post-Aug 29, 2024) & NPS Vatsalya accounts exempted from tax.
Ease of Doing Business & Investment Promotion
- New Scheme for International Transactions: Arm’s length pricing for a block period of 3 years to ensure tax certainty.
- Presumptive Taxation for Non-Residents: Applicable to those offering services to electronics manufacturing companies in India.
Tonnage Tax Benefits Extended to inland vessels.
- Startup Incentives: Incorporation period extended by 5 years.
- Infrastructure Investment Boost: Sovereign Wealth and Pension Fund investment deadline extended to March 31, 2030.
Customs Reforms & Trade Promotion
- Industrial Tariff Rationalization:
  - Removal of seven tariffs and introduction of a single cess/surcharge per category.
- Healthcare & Essential Medicines:
  - 36 life-saving drugs for cancer, rare, and chronic diseases fully exempted from Basic Customs Duty (BCD).
  - 37 more medicines & 13 Patient Assistance Program drugs also exempted.
Boost for Domestic Manufacturing:
- 25 critical minerals (cobalt powder, lithium-ion battery waste, lead, zinc, etc.) fully exempted from BCD.
Textile Sector Support:
- Two more shuttle-less looms fully exempted.
- BCD on knitted fabrics increased to 20% or ₹115/kg (whichever is higher).
Electronics & Make in India:
- BCD on Interactive Flat Panel Displays (IFPDs) raised to 20%.
- BCD on Open Cells reduced to 5%; parts of Open Cells fully exempted.
- Lithium-ion battery manufacturing: 35 capital goods for EVs & 28 for mobile batteries added to exemption list.
Shipbuilding Industry: BCD exemption on raw materials extended for 10 more years.
Export Promotion Measures
- Handicrafts exports facilitated with BCD exemptions.
Leather Industry Support: BCD fully exempted on Wet Blue leather to boost value addition and employment.
Fisheries Export Support:
- BCD on Frozen Fish Paste reduced from 30% to 5%.
- BCD on Fish Hydrolysate for shrimp/fish feeds reduced from 15% to 5%.

Vision for Viksit Bharat

Finance Minister Nirmala Sitharaman highlighted Democracy, Demography, and Demand as key pillars of India's growth.
The new tax regime aims to boost consumption, savings, and investment by putting more money into the hands of the middle class, strengthening India's economic trajectory.

Union Budget 2025-26 FAQs

Q1. In which house is the Union Budget presented?

Ans. The Union Budget is presented in the Lok Sabha.

Q2. On which day is the Union Budget presented?

Ans. The Union Budget is presented on February 1 since 2017.

Q3. Who presents the Union Budget in Parliament?

Ans. The Union Budget is presented by the Union Finance Minister.

Q4. Who presented the first-ever budget in India?

Ans. India's first Union Budget was presented on April 7, 1860, by James Wilson, the finance member of the Indian Council and the founder of The Economist newspaper.

Q5. Which is the first paperless budget in India?

Ans. On 1 February 2021, Finance Minister Nirmala Sitharaman presented the first paperless budget. She took a digital tablet wrapped in a tradition 'bahi-khata' style pouch.

Source: PIB | India Budget