Budget 2025-26: State-Specific Announcements

Finance Minister Nirmala Sitharaman presented her eighth Union Budget in Parliament today, unveiling state-wise allocations and sector-specific initiatives aiming to boost economic growth and regional development across India.

Here are the major state-specific announcements:

Assam: Boost to Fertiliser Production

•    New Urea Plant at Namrup: A new urea plant with an annual capacity of 12.7 lakh metric tons will be established in Namrup, Assam. This initiative aims to enhance national fertiliser manufacture, reduce import needs, and boost agricultural output in the region.

North-East Region: Enhanced Nutrition and Connectivity
•    Saksham Anganwadi and Poshan 2.0: The programme will see augmented cost norms for nutritional support, benefiting over 8 crore children, 1 crore pregnant women and lactating mothers, and 20 lakh adolescent girls, particularly in ambitious districts and the North-East region.
•    UDAN Scheme Expansion: Regional connectivity will be expanded to 120 new destinations under the UDAN scheme. The initiative aims to facilitate air travel for 4 crore passengers over the next decade, with a special focus on helipads and smaller airports in hilly and North-East districts.

Bihar: Boost to Agriculture, Education, and Infrastructure
The Union Budget 2025-26 has proclaimed significant initiatives for Bihar, focused on agriculture, education, and infrastructure development.

•    Makhana Board: A dedicated Makhana Board will be established to enhance production, processing, value addition, and marketing of makhana. Farmers will be organised into Farmer Producer Organizations (FPOs), with the Board providing training and access to government arrangements.

•    Food Processing Hub: A National Institute of Food Technology, Entrepreneurship, and Management will be set up under the ‘Purvodaya’ initiative to boost food processing in Eastern India, improving farmer incomes and creating employment chances.

•    IIT Patna Expansion: Infrastructure and hostel capacity at IIT Patna will be extended, together with extra amenities at five IITs established post-2014 to accommodate 6,500 more students.

•    Aviation Development: The government has proclaimed the development of Greenfield airports to strengthen Bihar’s aviation network. Plans also include expanding Patna Airport and constructing a brownfield airport at Bihta.

•    Western Koshi Canal ERM Project: Funding has been allocated for the Western Koshi Canal ERM Project, which will benefit farmers cultivating over 50,000 hectares in the Mithilanchal region.

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Andaman and Nicobar and Lakshadweep: Strengthening the Fisheries Sector 

As per India’s position as the second-largest fish producer globally, the government has introduced a framework for sustainable fisheries management in the Indian Exclusive Economic Zone and High Seas. Remarkable importance will be placed on Andaman and Nicobar and Lakshadweep Islands to reveal the marine sector’s potential through maintainable applies.

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Gujarat: Strengthening IFSC and Financial Services

The administration has introduced new stimuli to attract ship-leasing units, insurance offices, and treasury centres of global companies to the International Financial Services Centre (IFSC) in Gujarat. The cut-off date for IFSC-related benefits has been extended to March 31, 2030. Key incentives include:

•    Extension of sunset dates for various exemptions, deductions, and relocations.
•    Exemption on proceeds received from life insurance policies issued by IFSC insurance mediators without a premium cap.
•    Capital gains exemption for non-residents or IFSC units on transferring equity shares of a ship-leasing company.
•    Dividend exemption for ship-leasing companies operating in IFSC.
•    Loans between group entities within IFSC will not be treated as dividends.
•    A simplified safe harbour regime for IFSC-based investment funds.
•    Exemptions for non-resident income from transferring non-deliverable forward contracts with Foreign Portfolio Investors in IFSC.
•    Capital gains exemption for share or unit transfers between original and resultant funds under IFSCA Regulations 2022.