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- Budget 2025 Live Updates: 'We have heard the voice of the middle class,' FM Sitharaman on Union Budget
THE TIMES OF INDIA | Feb 03, 2025, 06:47:25 IST
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Budget 2025 Live Updates: 'We have heard the voice of the middle class,' FM Sitharaman on Union Budget
Budget 2025 Live: Union finance minister Nirmala Sitharaman presented the first full budget of Modi government 3.0. Sitharaman announced that there will be no income tax payable for incomes up to Rs 12 lakh, and Rs 12.75 lakh for salaried taxpayers (including standard deduction).
In the new tax regime, the revised tax rate structure is Rs 0-4 lakh (zero tax), Rs 4-8 lakh (5 per cent), Rs 8-12 lakh (10 per cent), Rs 12-16 lakh (15 per cent), Rs 16-20 lakh (20 per cent), Rs 20-24 lakh (25 per cent), and above Rs 24 lakh (30 per cent).
Sitharaman unveiled her record eighth consecutive budget in the Lok Sabha, unveiling key economic reforms.
The focus of Budget presented in Lok Sabha was on 'garib, youth, anndatta and nari' (poor, youth, farmers and women). The budget will initiate reforms in 6 domains -- taxation, urban development, mining, financial sector, power and regulatory reforms
A day earlier, the Economic Survey, tabled in Parliament, projected India's economy to grow between 6.3% and 6.8% in the financial year 2025-26. The survey highlighted strong economic fundamentals, citing a stable external account, fiscal discipline, and robust private consumption. It also emphasised the government's push for long-term industrial growth through increased focus on research and development (R&D), MSMEs, and capital goods.
Stay with TOI for latest updates:
In the new tax regime, the revised tax rate structure is Rs 0-4 lakh (zero tax), Rs 4-8 lakh (5 per cent), Rs 8-12 lakh (10 per cent), Rs 12-16 lakh (15 per cent), Rs 16-20 lakh (20 per cent), Rs 20-24 lakh (25 per cent), and above Rs 24 lakh (30 per cent).
Sitharaman unveiled her record eighth consecutive budget in the Lok Sabha, unveiling key economic reforms.
The focus of Budget presented in Lok Sabha was on 'garib, youth, anndatta and nari' (poor, youth, farmers and women). The budget will initiate reforms in 6 domains -- taxation, urban development, mining, financial sector, power and regulatory reforms
A day earlier, the Economic Survey, tabled in Parliament, projected India's economy to grow between 6.3% and 6.8% in the financial year 2025-26. The survey highlighted strong economic fundamentals, citing a stable external account, fiscal discipline, and robust private consumption. It also emphasised the government's push for long-term industrial growth through increased focus on research and development (R&D), MSMEs, and capital goods.
Stay with TOI for latest updates:
07:58 (IST) Feb 01
India Budget 2025 Live: Income Tax cuts for middle class may figure in budget, says economist Rumki Majumdar
Taxpayers, especially those in the lower middle-income bracket, may receive relief in finance minister Nirmala Sitharaman's upcoming Budget as the Narendra Modi government aims to boost consumption in a slowing economy, according to economist Rumki Majumdar.
She said that the finance minister will offer relief to taxpayers under the new tax regime, which eliminates exemptions but provides a broader tax base. This relief could particularly benefit individuals earning between Rs 7 lakh and Rs 10 lakh annually.
"They are likely to focus on the Rs 7-10 lakh income slab, where additional exemptions could be introduced. That is a possibility," Majumdar said in an interview with PTI, noting that recent months have shown positive growth in rural development, driven by strong agricultural yields.
She said that the finance minister will offer relief to taxpayers under the new tax regime, which eliminates exemptions but provides a broader tax base. This relief could particularly benefit individuals earning between Rs 7 lakh and Rs 10 lakh annually.
"They are likely to focus on the Rs 7-10 lakh income slab, where additional exemptions could be introduced. That is a possibility," Majumdar said in an interview with PTI, noting that recent months have shown positive growth in rural development, driven by strong agricultural yields.
07:40 (IST) Feb 01
Budget 2025 Live: Expand the scope of PLI schemes
#1 With the record INR2.1 trillion dividend from the RBI, the government must adopt a balanced approach and further reduce the fiscal deficit target for FY2025. A part of the additional resources must be allocated to the social sector.
#2 The government must expand the scope of PLI schemes, especially for sectors that can create more jobs, such as textiles, handicrafts and leather. The schemes must continue in sectors that have seen success, such as electronics, auto and semiconductors.
#3 To improve global liquidity (once the Western central banks start easing their monetary policies), the government can raise the ceiling for investment size and remove location restrictions to attract more foreign investment. Multi-brand retail and e-commerce are some sectors that may benefit from this, says Dr. Rumki Majumdar, Economist, Deloitte India.
#2 The government must expand the scope of PLI schemes, especially for sectors that can create more jobs, such as textiles, handicrafts and leather. The schemes must continue in sectors that have seen success, such as electronics, auto and semiconductors.
#3 To improve global liquidity (once the Western central banks start easing their monetary policies), the government can raise the ceiling for investment size and remove location restrictions to attract more foreign investment. Multi-brand retail and e-commerce are some sectors that may benefit from this, says Dr. Rumki Majumdar, Economist, Deloitte India.
07:20 (IST) Feb 01
Union Budget 2025: Hiked Capex, fiscal consolidation and demand push expected from Union Budget 2025-26
The Union Budget 2025-26, set to be presented on Saturday, is expected to strike a balance between economic growth and fiscal prudence while addressing the expectations of taxpayers, businesses, and key industries.
Industry leaders and experts are looking for measures to boost consumption, incentivize capital expenditure, and support crucial sectors such as real estate, MSMEs, healthcare, artificial intelligence (AI), electric vehicles (EVs), and renewable energy. Fiscal consolidation also remains a key focus.
A major area of interest is tax relief for individuals and businesses. Taxpayers are hoping for revisions in tax slabs under the new regime, including higher exemption limits and standard deductions. There is also a growing demand to make annual income up to Rs 10 lakh tax-free.
Additionally, expectations are high for an increase in the standard deduction limit, which currently stands at Rs 50,000 under the old tax regime and Rs75,000 under the new one.
Industry leaders and experts are looking for measures to boost consumption, incentivize capital expenditure, and support crucial sectors such as real estate, MSMEs, healthcare, artificial intelligence (AI), electric vehicles (EVs), and renewable energy. Fiscal consolidation also remains a key focus.
A major area of interest is tax relief for individuals and businesses. Taxpayers are hoping for revisions in tax slabs under the new regime, including higher exemption limits and standard deductions. There is also a growing demand to make annual income up to Rs 10 lakh tax-free.
Additionally, expectations are high for an increase in the standard deduction limit, which currently stands at Rs 50,000 under the old tax regime and Rs75,000 under the new one.
07:20 (IST) Feb 01
India Budget 2025 Live: Roadmap for digital transformation of Customs Compliance
Digitalisation via API route - Requisite details may be filed through Application Programming Interface (‘API’) so as to reap benefits of technology and reduce manual errors. Wherein, API connectivity can be primarily used for uploading data schema for Bill of Entry or Shipping Bill preparation, making custom duty payment, etc.
Access to ICEGATE Portal similar to GSTN - Borrow the successful concept of Goods and Services Providers (‘GSP’) from GSTN, to be able to transmit huge volume of data speedily and securely from Customs Broker’s system or importer and exporter's system to/from ICEGATE portal
Licensed GSPs can be given access - Considering that GSPs already have an infrastructure in place and taxpayers are familiar with them and they have requisite skillset and manpower to implement such a large change, says EY.
Access to ICEGATE Portal similar to GSTN - Borrow the successful concept of Goods and Services Providers (‘GSP’) from GSTN, to be able to transmit huge volume of data speedily and securely from Customs Broker’s system or importer and exporter's system to/from ICEGATE portal
Licensed GSPs can be given access - Considering that GSPs already have an infrastructure in place and taxpayers are familiar with them and they have requisite skillset and manpower to implement such a large change, says EY.
07:00 (IST) Feb 01
Union Budget 2025 Live: Continue with simplification of tax regime
“The Government has made a good start to the simplification process by reducing the TDS rates on several payments from 5% to 2% through Finance (No.2) Act 2024. To further enhance ease of doing business, it is suggested to rationalize the multiple TDS/TCS rates by converging them into a simple two or three-tier rate structure which will avoid classification disputes and prevent blockage of working capital in the industry. Also, stop the practice of imposing TDS/TCS on transactions that are subject to GST since the relevant information is already available through GST filings,” says FICCI.
06:40 (IST) Feb 01
Budget 2025 Live: How will FM Nirmala Sitharaman budget for education?
The skill development segment is in need of improvement in quality including through greater Industry-connect and industry participation. Several of the components of PM Package announced in 2024 including skilling of 2 million students over 5 years through ITI upgradation, skill loans up to 7.5 Lakhs, Employment-linked incentives and internship schemes targeted these challenges. Initiatives may be added to complement these ongoing efforts.
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06:20 (IST) Feb 01
Budget 2025: Universal income transfer scheme makes sense?
Budget 2025 expectations: “Of late, there is a Tsunami of women centric schemes unleashed by multiple states offering direct benefit transfers (some badly guised as pure electoral realpolitik, we believe) that can bleed select states’ finances going forward as the wedge between revenue receipts and such expenditures may vault to 3-11% of the states revenue receipts…With income transfer to women likely to be promised competitively by states in future, even the Union may be tempted to follow suit.. It would be worth taking course to adopt a universal income transfer scheme (matching grant from center to states) towards substantially reducing several market disturbing subsidies,” says SBI Research in its pre-Budget report.
06:00 (IST) Feb 01
Budget 2025 Live: Change tax treatment for bank deposits
Just as consumption is exhibiting some weakness, savings are also weakening, with the latest data print for FY23 showing 30.2% as the savings rate. In particular, bank deposits have not been doing well, affecting banks’ ability to lend. Bank deposits as a ratio of households’ financial assets have declined from 56.4% in 2019-20 to 45.2% in 2023-24. Over the last two years, the growth in bank deposits has lagged the growth in credit, which can constrain credit growth.
To incentivize deposit growth, consider taxing interest income at a lower rate for all income tax slabs, to bring interest income at comparable tax rate to other instruments such as Mutual Funds and Equities. Also, reduce the lock-in period for eligibility of preferential tax treatment from the current five years to three years, says CII.
To incentivize deposit growth, consider taxing interest income at a lower rate for all income tax slabs, to bring interest income at comparable tax rate to other instruments such as Mutual Funds and Equities. Also, reduce the lock-in period for eligibility of preferential tax treatment from the current five years to three years, says CII.
05:40 (IST) Feb 01
Union Budget 2025: Pave the path for indirect tax reforms, simplified growth
The past year has already seen transformative changes and clarifications on key issues including the taxability of intermediaries, corporate guarantees, GST treatment for vouchers and the introduction of the highly anticipated GST Amnesty scheme. There was also the landmark decision in the case of M/s Safari Retreats with respect to admissibility of construction-related credits, while the GST Council’s recent proposal to amend the law retrospectively, triggered anxiety in the real estate sector.
Read full story here:05:20 (IST) Feb 01
India Budget 2025: Further farm prosperity
* Launch an agricultural yields mission for bottom 100 districts on the lines of aspirational districts programme, says FICCI.
* Launch a national program to develop 3 million farm technicians in 5 years to provide new technologies and services to farmers. Each village (India has 6 lakh villages) could have 5-6 technicians specialized in technologies such as soil testing, micro irrigation, drones, sensors, farm machinery, post-harvest technologies as well as operation and maintenance of in-village water supply system.
* Galvanize private sector adoption of horticulture clusters by completing allotment of 12 priority clusters, launching RFPs for remaining 41 identified clusters, allowing participation by farm aggregators and encouraging adoption of individual verticals at cluster level by larger specialized companies, says FICCI.
* Launch a national program to develop 3 million farm technicians in 5 years to provide new technologies and services to farmers. Each village (India has 6 lakh villages) could have 5-6 technicians specialized in technologies such as soil testing, micro irrigation, drones, sensors, farm machinery, post-harvest technologies as well as operation and maintenance of in-village water supply system.
* Galvanize private sector adoption of horticulture clusters by completing allotment of 12 priority clusters, launching RFPs for remaining 41 identified clusters, allowing participation by farm aggregators and encouraging adoption of individual verticals at cluster level by larger specialized companies, says FICCI.
05:00 (IST) Feb 01
India Union Budget 2025: Income Tax For Individuals
Tax rates: Consequent to the reduction of corporate tax rates, the differential between personal and corporate tax has widened. The highest marginal rate for individuals has now gone up to 42.744% (highest slab) and 39% in the new tax regime against the normal Corporate Tax Rate of 25.17%.
The high personal tax rate for individuals in India stands out as an exceptionally high rate as compared to other countries. For example, the maximum rates of personal income in Hongkong is 15%, Sri Lanka – 18%, Bangladesh – 25% & Singapore – 22%. Further, the huge gap in the tax rates as mentioned between individual and corporate tax rates is leading to several structuring decisions being adopted in favour of corporate model (for example, proprietorship business moving to company format).
With two tax regimes in place, income tax for individuals have become very complicated. Further, there are different rates of taxes depending upon the source of income. In addition to this, different rates of surcharge are applicable depending upon the total income and capital gains element in the total income both under the old and new tax regime.
The maximum marginal rates to individuals stand at 42.744% under old and 39% under new tax regime, both of which are substantially higher compared to Corporate Tax Rate as well as of other neighbouring countries, says Assocham in its pre-Budget memorandum.
The high personal tax rate for individuals in India stands out as an exceptionally high rate as compared to other countries. For example, the maximum rates of personal income in Hongkong is 15%, Sri Lanka – 18%, Bangladesh – 25% & Singapore – 22%. Further, the huge gap in the tax rates as mentioned between individual and corporate tax rates is leading to several structuring decisions being adopted in favour of corporate model (for example, proprietorship business moving to company format).
With two tax regimes in place, income tax for individuals have become very complicated. Further, there are different rates of taxes depending upon the source of income. In addition to this, different rates of surcharge are applicable depending upon the total income and capital gains element in the total income both under the old and new tax regime.
The maximum marginal rates to individuals stand at 42.744% under old and 39% under new tax regime, both of which are substantially higher compared to Corporate Tax Rate as well as of other neighbouring countries, says Assocham in its pre-Budget memorandum.
04:40 (IST) Feb 01
Budget 2025 Live: Key steps needed to position India as a global manufacturing powerhouse
The forthcoming budget is seen as a critical lever for further growth, with the manufacturing sector playing a central role in job creation and propelling India towards becoming the third-largest economy by 2027.
The manufacturing sector has outlined key expectations from the Union Budget 2025:04:20 (IST) Feb 01
Union Budget 2025 Live: Strengthen India’s global trade leadership
"The upcoming Union Budget is a crucial opportunity to strengthen India’s global trade leadership by driving digital adoption, tax compliance, and infrastructure enhancements. Expanding e-invoicing for all exporters can improve transparency, reduce fraud, and simplify international trade. Clearer cross-border tax guidelines and SME incentives for digital tax solutions can ease compliance burdens and support global expansion. Strengthening digital customs infrastructure and integrating GST with global trade systems will expedite transactions, while AI-powered tax assessments can minimize delays. To maintain India’s competitive edge, targeted R&D incentives for Global Capability Centers (GCCs) can drive AI and blockchain-based tax solutions. Additionally, investments in tech-enabled warehousing near ports and streamlining logistics through digital customs clearance and risk-based inspections will enhance India’s export ecosystem and global trade standing,” says Imtiyaz Khatib, VP Product Management, Avalara.
04:00 (IST) Feb 01
Budget 2025 Live: ‘Falling rupee impact on NRI investments in Indian real estate’
“Falling INR is a major incentive for NRIs to invest in India, especially in their hometowns where they have family and/or friends or have some area familiarity. The same property that they were going to buy can either now be bought for a lower dollar spend or buy a relatively bigger area for the same dollar spend. The good part is that now there are several professional agencies in India that can provide reliable real estate rental/management services while they live abroad. The only concern would be if rupee continues to depreciate further then what happens when they exit the investment and try repatriating - it may erode all the potential value appreciation (in INR) when converted back to an even stronger dollar. The other issue with real estate as an investment is the material transaction costs - registration, stamp duty, etc,” says Chintan Patel, Partner – Deal Advisory and Head – Building, Construction and Real estate, KPMG in India.
03:40 (IST) Feb 01
India Union Budget 2025: Create meaningful tax relief for salaried employees
"As Budget 2025 draws closer, we have a great opportunity to create meaningful tax relief for salaried employees especially considering their evolving financial and lifestyle needs. With the cost of living steadily climbing, financial stress has become a major factor affecting job satisfaction and overall productivity. The government can really step up here by offering tax benefits that align with what employees need to thrive today.
For me, one big game-changer could be expanding tax benefits under the new regime. This includes things like gym memberships, therapy, and holistic wellness services. Right now, Section 80D mostly focuses on health insurance, but it’s time for a broader, more forward-thinking approach to well-being. There’s solid research behind this: physically active employees are 25% more productive, and the WHO says that every $1 invested in mental health brings back $4 in improved health and productivity. Letting people claim deductions for gym memberships, yoga, counseling, and wellness programs isn’t just about fitness—it’s about creating long-term savings in healthcare while building a healthier, happier workforce.
Another area where we can make an immediate impact would be providing higher tax exemptions for essentials like groceries, fuel, and transportation—key expenses that are eating into household budgets, thanks to inflation going above 5-6% in India. Stability, both financial and personal, is a huge factor in employee retention. By addressing these challenges, employers and the government can create a more supportive environment for employees.
Ultimately, this budget isn’t just about cutting taxes—it’s about giving employees the resources to lead healthier, less stressful lives. That’s a win for everyone: happier employees, higher productivity, and a stronger economy,” says Sourabh Deorah, CEO & Co-Founder, AdvantageClub.ai.
For me, one big game-changer could be expanding tax benefits under the new regime. This includes things like gym memberships, therapy, and holistic wellness services. Right now, Section 80D mostly focuses on health insurance, but it’s time for a broader, more forward-thinking approach to well-being. There’s solid research behind this: physically active employees are 25% more productive, and the WHO says that every $1 invested in mental health brings back $4 in improved health and productivity. Letting people claim deductions for gym memberships, yoga, counseling, and wellness programs isn’t just about fitness—it’s about creating long-term savings in healthcare while building a healthier, happier workforce.
Another area where we can make an immediate impact would be providing higher tax exemptions for essentials like groceries, fuel, and transportation—key expenses that are eating into household budgets, thanks to inflation going above 5-6% in India. Stability, both financial and personal, is a huge factor in employee retention. By addressing these challenges, employers and the government can create a more supportive environment for employees.
Ultimately, this budget isn’t just about cutting taxes—it’s about giving employees the resources to lead healthier, less stressful lives. That’s a win for everyone: happier employees, higher productivity, and a stronger economy,” says Sourabh Deorah, CEO & Co-Founder, AdvantageClub.ai.
03:20 (IST) Feb 01
Budget 2025 Live: Fiscal Deficit may be budgeted ~4.5% of GDP in FY26
India continues to remain the bright spot supported by its strong macro fundamentals, says SBI Research in its pre-Budget report.
Nominal GDP growth for FY26 is expected at 10.2%, assuming a real GDP growth of 6.2 to 6.4% and inflation of 4 to 3.8%. So, the Nominal GDP would be Rs 357.2 Lakh crore
The Government should focus on adherence to fiscal prudence and continue the fiscal consolidation path. The Fiscal deficit as % of GDP may come at 4.5% in FY26 (Rs 15.9 lakh crore). However, we must also appreciate that in a world of uncertainties mostly for the external sector, there is no harm the glide path being tinkered a bit to give growth a leg up
Gross market borrowing (~Rs 14.4 lakh crore) can be expected in FY26 due to an increase in redemptions, when part of the COVID-19 pandemic borrowings are due for repayment, resulting in a net borrowing of Rs 11.2 lakh crore (Rs 4.05 lakh crore redemption in FY26 and expected switch of Rs ~75000 to 100000 crore)
Government has already conducted Rs 1.1 lakh crore buyback and Rs 1.46 lakh crore switches so far in FY 25. Communication from policy makers as also the regulators needs to be crystal clear, and front loaded in market participants expectations
Schemes like JIT that may have an effect on systemic liquidity need careful recalibration, keeping in mind the first order, as also the second order impacts
Nominal GDP growth for FY26 is expected at 10.2%, assuming a real GDP growth of 6.2 to 6.4% and inflation of 4 to 3.8%. So, the Nominal GDP would be Rs 357.2 Lakh crore
The Government should focus on adherence to fiscal prudence and continue the fiscal consolidation path. The Fiscal deficit as % of GDP may come at 4.5% in FY26 (Rs 15.9 lakh crore). However, we must also appreciate that in a world of uncertainties mostly for the external sector, there is no harm the glide path being tinkered a bit to give growth a leg up
Gross market borrowing (~Rs 14.4 lakh crore) can be expected in FY26 due to an increase in redemptions, when part of the COVID-19 pandemic borrowings are due for repayment, resulting in a net borrowing of Rs 11.2 lakh crore (Rs 4.05 lakh crore redemption in FY26 and expected switch of Rs ~75000 to 100000 crore)
Government has already conducted Rs 1.1 lakh crore buyback and Rs 1.46 lakh crore switches so far in FY 25. Communication from policy makers as also the regulators needs to be crystal clear, and front loaded in market participants expectations
Schemes like JIT that may have an effect on systemic liquidity need careful recalibration, keeping in mind the first order, as also the second order impacts
03:00 (IST) Feb 01
Union Budget 2025: Why upskilling should be at the heart of Union Budget
India is experiencing a demographic boom, with 64.8% of its population expected to be part of the working-age group by 2026. However, only 51.3% of college final-year students in India are employable, according to the Ministry of Skill Development and Entrepreneurship, highlighting a significant education-employability gap. Leveraging our demographic dividend requires focused efforts towards upskilling, especially in emerging areas like AI literacy, prompt engineering, AI-augmented creativity and data science.
Read full story here:02:40 (IST) Feb 01
Budget 2025 Live: India will need to energize the domestic sectors
“This Budget comes at a very crucial phase of India’s development process. The challenge in the next financial year is that India must grow in an atmosphere where the global economic climate remains not too conducive, tariffs could be imposed on India by the US administration and climate vagaries have threatened the agricultural sector. Thus, India will need to energize the domestic sectors – both from a demand and the supply sides – to boost its growth. The Budget will thus have to remain committed to the reforms process and stay focused on inclusive growth to rapidly boost per-capita income levels, in-turn boosting domestic consumption demand. The good works of the previous Budget with respect to job creation and bridging the skill gaps will have to be pushed ahead on a war footing if India must take advantage of its young population. Addressing the skill issue remains important as India can also prove to be the provider of skill labour to the rest of the world, given the ageing demographics in the advanced economies. While manufacturing remains important and the PLI scheme and various schemes for the MSME sector needs to be sharpened, agriculture needs a critical focus with an enhanced outlay for R&D for weather resistant seeds, that in turn will help improve agricultural productivity – important in order to achieve food security and help absorption of surplus labour,” says Prashant Kumar, MD and CEO, YES BANK.
02:20 (IST) Feb 01
Union Budget 2025 Live: Importance of PLI schemes
“To bolster India's home decor manufacturing sector, it is essential to expand and simplify Production Linked Incentive (PLI) schemes, reduce GST rates on home decor items, and introduce special credit schemes for startups. These measures will not only encourage domestic production, enhance competitiveness, and support small and medium-sized businesses, but also pave the way for a potential surge in consumer demand. Additionally, implementing subsidies for advanced manufacturing technologies and increasing export incentives will facilitate technology adoption and encourage startups to explore global markets.
Infrastructure development is crucial, as it focuses on improved logistics and reliable utilities to reduce operational inefficiencies. Promoting made-in-India through incentives for eco-friendly and other manufacturing practices and launching skill development initiatives for artisans will address both the skill gap and global demand for sustainable products. Finally, supporting e-commerce growth by reducing compliance costs and simplifying regulatory requirements cannot only help startups thrive but also foster a culture of innovation in this dynamic sector,” says Manojkumar Sharma, founder of Ashnam Home.
Infrastructure development is crucial, as it focuses on improved logistics and reliable utilities to reduce operational inefficiencies. Promoting made-in-India through incentives for eco-friendly and other manufacturing practices and launching skill development initiatives for artisans will address both the skill gap and global demand for sustainable products. Finally, supporting e-commerce growth by reducing compliance costs and simplifying regulatory requirements cannot only help startups thrive but also foster a culture of innovation in this dynamic sector,” says Manojkumar Sharma, founder of Ashnam Home.
02:00 (IST) Feb 01
India Budget 2025: Required separate deductions in the new tax regime
According to IRDAI, insurance penetration in India witnessed a drop to 3.7%, as compared to 4% in FY23 and 4.2% in FY22. Life insurance penetration declined to 2.8% while non-life insurance remained at 1%.
So, the decline in penetration is mainly due to the decline in life insurance penetration, which has raised concern to the IRDAI’s mission of ‘Insurance for all by 2047’
SBI Research expects Government will focus on the followings to revive the insurance sector:
• No GST/Tax on Term/Pure Life Insurance and health insurance premiums
• In line with NPS, a separate deduction for life/Health insurance in the new/Old tax Regime, say Rs 25,000/50,000
• All the Government sponsored pension schemes, APY, PM-SYM, PM-KMY and NPS-Traders may be brought under one umbrella
• An insurance program to cover the MSME employees and provide social security to them in terms of insurance benefits and income protection for their families by way of an insurance scheme for MSME Promoter to cover losses in business due to reasons beyond control of the promoter.
So, the decline in penetration is mainly due to the decline in life insurance penetration, which has raised concern to the IRDAI’s mission of ‘Insurance for all by 2047’
SBI Research expects Government will focus on the followings to revive the insurance sector:
• No GST/Tax on Term/Pure Life Insurance and health insurance premiums
• In line with NPS, a separate deduction for life/Health insurance in the new/Old tax Regime, say Rs 25,000/50,000
• All the Government sponsored pension schemes, APY, PM-SYM, PM-KMY and NPS-Traders may be brought under one umbrella
• An insurance program to cover the MSME employees and provide social security to them in terms of insurance benefits and income protection for their families by way of an insurance scheme for MSME Promoter to cover losses in business due to reasons beyond control of the promoter.
01:40 (IST) Feb 01
India Union Budget 2025: Will Budget prescribe incentive dosages for India’s healthcare sector?
The Union Budget 2025 presents an opportunity to propel this sector toward innovation, self-reliance, and global leadership. The Pharma companies are seeking simplification and streamlining of regulatory and tax processes in the upcoming budget. The expectations include policies to boost local manufacturing under the “Make in India” initiative, enabling the sector to remain globally competitive while ensuring affordable healthcare solutions.
Read full story here:01:20 (IST) Feb 01
Union Budget 2025: What Budget should do for exporters
Budget expectations: "Exporters in India face a persistent credit crunch due to a mismatch between working capital needs and timely, affordable financing. Lengthy payment cycles, forex fluctuations, high compliance costs, and reliance on paper-based documentation like Bills of Exchange and Promissory Notes create inefficiencies and delays. Limited data sharing between customs and financial institutions further restricts access to tailored financing solutions. Adopting the Model Law on Electronic Transferable Records (MLETR) can streamline export documentation, ensuring faster credit access. Granting real-time access to customs data systems (EDPMS, IDPMS) for regulated non-bank entities in GIFT City can enhance credit risk assessments and fund disbursals. Additionally, consolidating MUDRA and CGTMSE into a unified credit insurance framework would simplify processes, reduce redundancies, and improve MSME credit coverage,” says Manish Gadia, CEO of Vayana TradeXchange.
01:00 (IST) Feb 01
Union Budget 2025 Live: ‘Raise threshold for tax exemptions on Savings deposit’
Budget 2025 income tax expectations: “The threshold for tax exemptions on Savings deposit at Rs 10,000 may be reconsidered and raised to Rs 20,000- the revenue foregone using Pareto Principle comes around ~Rs 1,531 crore (flat RoI at 4%), leading to multiple benefits viz. Stability in core deposit base, financial stability, better visibility of system liquidity against growing digital payments and most important allowing banks to pass on the benefits accruing through low-cost deposits to fund the humongous social commitments (FI 2.0) / sunrise sectors led demand in continuum.
Term deposits, that have witnessed greater favor with savers with elevated rates attracting higher proportions, may witness a revenue foregone figure of Rs 10,500 crore if current tax treatment across maturity ladder is to be replaced by a simple flat 15%rate across all maturity. Combined revenue foregone including both saving deposits and terms deposit comes around ~Rs 12,000 crore,” says SBI Research in its pre-Budget report.
Term deposits, that have witnessed greater favor with savers with elevated rates attracting higher proportions, may witness a revenue foregone figure of Rs 10,500 crore if current tax treatment across maturity ladder is to be replaced by a simple flat 15%rate across all maturity. Combined revenue foregone including both saving deposits and terms deposit comes around ~Rs 12,000 crore,” says SBI Research in its pre-Budget report.
00:40 (IST) Feb 01
Budget 2025 for agriculture: Implement 4C strategy
Budget expectations: The global perception towards Indian agriculture is becoming increasingly positive, underscoring its importance in global food and nutritional security. To fully realise this potential, it is crucial to forge an adequate ecosystem that can support in making Indian agriculture more competitive and climate-smart. Thus, it’s imperative to move from the ‘one-size-fits-all’ to a ‘tailored and customised solution’ approach across the larger agricultural ecosystem.
Read full story here:00:20 (IST) Feb 01
Budget 2025 Live: Prioritize investments in smart city initiatives
Budget expectations: “India's rapid urbanization and digital transformation are driving the Out-of-Home (OOH) sector to its full potential. The Union Budget 2025-26 should prioritize investments in smart city initiatives, urban transit projects, and infrastructure renewal programs. Expanding highways, metro networks, and high-traffic urban corridors will foster economic growth and create new opportunities for OOH advertising.
Targeted measures include subsidies for digital billboard conversions, reduced taxes on DOOH technology imports, and support for dedicated power infrastructure. Increased investments in 5G rollout and affordable internet access are expected to improve real-time content delivery and programmatic advertising in DOOH campaigns. Simplified policies to attract FDI in advertising and media technology, GST reductions on advertising services, and special electricity tariffs can further encourage advertisers to invest in DOOH.
These initiatives will benefit stakeholders, drive inclusive growth, enable OOH players to innovate, and offer investors a scalable and future-ready market opportunity,” says Junaid Shaikh, Managing Director of RoshanSpace Brandcom.
Targeted measures include subsidies for digital billboard conversions, reduced taxes on DOOH technology imports, and support for dedicated power infrastructure. Increased investments in 5G rollout and affordable internet access are expected to improve real-time content delivery and programmatic advertising in DOOH campaigns. Simplified policies to attract FDI in advertising and media technology, GST reductions on advertising services, and special electricity tariffs can further encourage advertisers to invest in DOOH.
These initiatives will benefit stakeholders, drive inclusive growth, enable OOH players to innovate, and offer investors a scalable and future-ready market opportunity,” says Junaid Shaikh, Managing Director of RoshanSpace Brandcom.
00:05 (IST) Feb 01
India Budget 2025: Support women’s participation in the workforce
Support women’s participation in the workforce by allowing day care expenses as an exemption up to a certain defined limit: The care economy presents a significant opportunity for both economic growth and the empowerment of women in India. The Government by providing a specific tax exemption on day care expenses can support women’s participation in the economy, says FICCI.
Government may also consider forming a statutory body to certify daycare centers and regularly monitor their quality to bring standardization.
Commuting to the place of work from home is generally seen as a constraint for women’s employment in manufacturing sector, especially when such places are away from residential areas. Building dormitories would enable more women participation in manufacturing. Government may consider allowing CSR funds to be used for setting up and maintenance of dormitories for women.
Consider a special tax exemption upto a defined limit for working women for expenses incurred on childcare for children upto the age of 5 years.
Government may also consider forming a statutory body to certify daycare centers and regularly monitor their quality to bring standardization.
Commuting to the place of work from home is generally seen as a constraint for women’s employment in manufacturing sector, especially when such places are away from residential areas. Building dormitories would enable more women participation in manufacturing. Government may consider allowing CSR funds to be used for setting up and maintenance of dormitories for women.
Consider a special tax exemption upto a defined limit for working women for expenses incurred on childcare for children upto the age of 5 years.
00:05 (IST) Feb 01
Union Budget 2025 Live: What Economic Survey says on skilling and AI
“It will require appropriate skilling and education for India’s youth to take advantage of technological advances such as Artificial Intelligence, enabling its population to stay one step ahead of technological developments. That would minimise or even eliminate the potential adverse impact on employment and, if possible, turn it into a force for augmenting employment. It would require a departure from ‘business as usual’ for collaboration between academic institutions and businesses. Innovation should be facilitated through resource flows, setting up centres of excellence in different technologies and expanding autonomy for academic and research institutions to attract top talent from the rest of the world to India. Policy action on this front is already underway, with recent budgets reflecting a clear focus on a technology driven economy. This includes establishing Artificial Intelligence Centres of Excellence (CoE) at top educational institutions across India and the announcement of a ₹1 lakh crore financing corpus to catalyse private sector innovation and R&D in sunrise sectors,” says Economic Survey 2025.
00:05 (IST) Feb 01
Budget 2025 Live: Revive merchandise exports
Ask #1 The government has increased its budgetary allocation over time to focus on developing physical and social infrastructure. This has led to a decline in logistics costs (10 percent of GDP in 2013 to 8.9 percent of GDP in 2022) and improved women participation in the labour force (23.3 percent in 2018 to 37 percent in 2023). The upcoming budget is also expected to focus on these sectors. Within infrastructure, we expect changes in allocation priorities leading to a higher allocation towards improving port and shipping; energy, especially green and sustainable energy; and urban infrastructure. The government is expected to continue prioritising spending on health, education and skilling in the social sector.
Ask #2 One of the biggest challenges will be to revive merchandise exports that contracted by 3 percent in FY2024. To achieve its US$1 trillion target by 2030, it will have to create a roadmap to reach it. We expect the government to soon complete the FTA talks with Oman, Peru, the UK, the European Union, Chile, the South African Customs Union and the Gulf Cooperation Council. This could boost exports in these regions amid global uncertainties. The government is expected to expedite digital networking opportunities, such as the Trade Connect platform, to facilitate exporters’ connections with international trade counterparts.
Ask #3 Energy demand is expected to increase for the fastest-growing nation, and India must prioritise energy security and energy self-reliance while ensuring a push towards alternate, cleaner energy sources. We expect an overhaul of the power supply ecosystem through energy reforms that address legacy issues. Green mobility and energy sources are also expected to get a leg up as the government emphasises building the supporting infrastructure and accelerates its efforts for the uptake of PLI schemes in solar photovoltaic modules and chemical cells, says Dr. Rumki Majumdar, Economist, Deloitte India.
Ask #2 One of the biggest challenges will be to revive merchandise exports that contracted by 3 percent in FY2024. To achieve its US$1 trillion target by 2030, it will have to create a roadmap to reach it. We expect the government to soon complete the FTA talks with Oman, Peru, the UK, the European Union, Chile, the South African Customs Union and the Gulf Cooperation Council. This could boost exports in these regions amid global uncertainties. The government is expected to expedite digital networking opportunities, such as the Trade Connect platform, to facilitate exporters’ connections with international trade counterparts.
Ask #3 Energy demand is expected to increase for the fastest-growing nation, and India must prioritise energy security and energy self-reliance while ensuring a push towards alternate, cleaner energy sources. We expect an overhaul of the power supply ecosystem through energy reforms that address legacy issues. Green mobility and energy sources are also expected to get a leg up as the government emphasises building the supporting infrastructure and accelerates its efforts for the uptake of PLI schemes in solar photovoltaic modules and chemical cells, says Dr. Rumki Majumdar, Economist, Deloitte India.
00:04 (IST) Feb 01
Budget 2025: Why ‘consumption vouchers’ make sense
Government could consider providing ‘consumption vouchers’ to people in lower income group. The vouchers could be designed to be spent on designated items (specific goods and services) and could be valid for a designated time (like 6-8 months), to ensure spending. One criteria to identify the beneficiaries could be Jan Dhan account holders, who are not beneficiaries this year, under the schemes specified in the point on ‘Increase per unit benefit under various schemes’, says CII.
00:04 (IST) Feb 01
India Union Budget 2025: Sustaining medium term growth
In the medium term, the real GDP growth target should be 6.5% or above.
This would call for an aggregate real investment rate (GFCF) of 34% with an ICOR of about 5.2.
With global economic uncertainties likely to continue, India’s growth will largely depend on domestic demand. GoI should ensure robust investment demand and persuade state governments also to increase their capital expenditure growth.
The private sector should be facilitated to increase its investment rate by progressive reduction in the interest rates.
Growth in urban demand is falling below that of rural demand. Government’s newly introduced employment related schemes should be implemented on a priority basis in order to uplift urban demand, says EY.
This would call for an aggregate real investment rate (GFCF) of 34% with an ICOR of about 5.2.
With global economic uncertainties likely to continue, India’s growth will largely depend on domestic demand. GoI should ensure robust investment demand and persuade state governments also to increase their capital expenditure growth.
The private sector should be facilitated to increase its investment rate by progressive reduction in the interest rates.
Growth in urban demand is falling below that of rural demand. Government’s newly introduced employment related schemes should be implemented on a priority basis in order to uplift urban demand, says EY.
00:04 (IST) Feb 01
India Budget 2025: Promote Atmanirbharta in Defence
- FICCI says only defence equipment made in India / partnered in India should be procured.
- Intensify research efforts to develop technologies to keep Indian armed forces ahead in areas such as robotics, quantum computing, sensors, hypersonics, directed energy and AI & ML.
- Build capabilities for millions of inexpensive small and micro-drone swarms that are weaponizable.
- Set up a Defence Export Promotion Agency that can co-ordinate with armed services, their foreign directorates, DPSUs, private manufacturers, MEA, Indian embassies, and MoD and communicate with foreign government and buyers, says FICCI.
00:04 (IST) Feb 01
Union Budget 2025 Live: Transformative reforms in financial services sector expected
“The 2025 Union Budget will continue to focus on transformative reforms in the financial services sector, driving growth and innovation. We anticipate the budget to be focusing on a slew of measures such as simplifying regulatory frameworks, incentivising technological advancements, infrastructure investments and enhancing financial inclusion while continuing to focus on some of the past budget themes including 2024. Additionally, key measures around ease of doing business at IFSC GIFT City, capital market and insurance sector reforms will be important in positioning India as a global financial hub, while laying a strong foundation for a resilient and inclusive financial ecosystem,” says Vivek Iyer, Partner, Grant Thornton Bharat.
00:03 (IST) Feb 01
Union Budget 2025: Banking, Financial Services, Insurance expectations
Foreign bank tax rates: Previous budget reduced tax rates for foreign companies. However, foreign bank branches in India still face higher taxes than Indian banks. Further tax rate reduction needed for competitiveness
Securities Transaction Tax (STT): Originally introduced for tax exemptions on long-term capital gains and concessional rates for short-term gains. With competitive tax rates now in place, STT abolition is warranted
NBFCs growth and tax benefits: NBFCs expanding due to rising credit demand and digital transformation. Tax benefits for banks gradually extended to some NBFCs. Immediate notification needed for thin capitalisation interest disallowance exclusion. Amendments expected for:
Recognising interest conversion into debentures/bonds as payment
Exempting TDS on interest payable to NBFCs
GIFT-IFSC Incentives: Enhancing India's position as a global financial hub. Proposed incentives:
Extend tax holiday for insurance companies to 15-20 years
Tax exemption for non-residents on ODIs issued by IFSCA registered non-bank entities
Tax relief for green finance, including green bonds and weighted deductions
SWFs/pension funds tax relief: Extension of tax relief beyond 31 March 2025. Further relaxation in conditions could aid India's development needs
TDS on listed debentures: Budget 2023 removed TDS exemption, complicating cash flow, and yield calculations. Reinstating exemption recommended for simplicity and compliance ease
Tax refunds and appeals: Mandate timely processing of appeal effects and tax refunds by Jurisdictional Assessing Officer/Centralised Processing Centre to build taxpayer confidence, says KPMG in India.
Securities Transaction Tax (STT): Originally introduced for tax exemptions on long-term capital gains and concessional rates for short-term gains. With competitive tax rates now in place, STT abolition is warranted
NBFCs growth and tax benefits: NBFCs expanding due to rising credit demand and digital transformation. Tax benefits for banks gradually extended to some NBFCs. Immediate notification needed for thin capitalisation interest disallowance exclusion. Amendments expected for:
Recognising interest conversion into debentures/bonds as payment
Exempting TDS on interest payable to NBFCs
GIFT-IFSC Incentives: Enhancing India's position as a global financial hub. Proposed incentives:
Extend tax holiday for insurance companies to 15-20 years
Tax exemption for non-residents on ODIs issued by IFSCA registered non-bank entities
Tax relief for green finance, including green bonds and weighted deductions
SWFs/pension funds tax relief: Extension of tax relief beyond 31 March 2025. Further relaxation in conditions could aid India's development needs
TDS on listed debentures: Budget 2023 removed TDS exemption, complicating cash flow, and yield calculations. Reinstating exemption recommended for simplicity and compliance ease
Tax refunds and appeals: Mandate timely processing of appeal effects and tax refunds by Jurisdictional Assessing Officer/Centralised Processing Centre to build taxpayer confidence, says KPMG in India.
00:03 (IST) Feb 01
Budget 2025 Live: Income Tax Slabs & Rates Tweaking?
SBI Research estimates government can ensure better tax compliance and bolster consumption through enhancing disposable income, by moving all and one under the New Tax regime, at a nominal loss(es) by foregoing certain amount of tax collection as under cases 1, 2 and 3:
Case-1: Peak rate reduced to 25% for income above 15L and all exemptions are removed but healthcare and NPS are retained at the same level of Rs 25k and Rs 50 k and increased to Rs 50k and Rs 75 k in scenario 1 and Rs 50k and Rs 1 lakh in scenario 2. The revenue losses of the Government stands at Rs 74,000 crores to Rs 1.08 lakh crores. Additionally, a flat 15% tax is imposed on bank deposits that is added to other income and delinked from highest income bucket, with an increase in limit to Rs 20,000 tax exemption for SA deposits
Case-2: Peak rate retained at 30% for income above 15L. However, tax rates are reduced to 15% from Rs 10 lakhs-Rs 15 lakhs and all exemptions are removed but healthcare and NPS are retained at the same level of Rs 25k and Rs 50 k and increased to Rs 50k and Rs 75 k in scenario 12 and Rs 50k and Rs 1lakh in scenario 2. The revenue losses of the Government stands at Rs 16,000 crores to Rs 50,000 crores. Additionally, a flat 15% tax is imposed on bank deposits that is added to other income and delinked from highest income bucket, with an increase in limit to Rs 20,000 tax exemption for SA deposits . We propose this option for the Government as also Public at large
Case3: Peak rate cut to 25% for income above 15L Tax rates are reduced to 15% from Rs 10 lakhs-Rs 15 lakhs and all exemptions are removed but healthcare and NPS are retained at the same level of Rs 25k and Rs 50 k and increased to Rs 50k and Rs 75 k in scenario 12 and Rs 50k and Rs 1lakh in scenario 2. The revenue losses of the Government stands at Rs 85,000 crores to Rs 1.19 lakh crores . Additionally, a flat 15% tax is imposed on bank deposits that is added to other income and delinked from highest income bucket, with an increase in limit to Rs 20,000 tax exemption for SA deposits
Out of all the scenarios estimated above, SBI Research is of the considered opinion that Case-2 optimizes the revenue foregone-incremental output scenario the Best by strengthening the four quadrants of Social Security, Financial Stability, Consumption boost and healthcare tweaking tax rates between the Rs 10-15 lakh bucket, removing the exemptions but bolstering the same on NPS (creating a handsome corpus for sunset years / other eventualities) and healthcare among those who can afford (that may accentuate government’s schemes like Ayushman Bharat), keeping optimal CASA deposits level in the banking system, eventually boosting consumption and investments through higher ICOR (incremental capital output ratio)
Case-1: Peak rate reduced to 25% for income above 15L and all exemptions are removed but healthcare and NPS are retained at the same level of Rs 25k and Rs 50 k and increased to Rs 50k and Rs 75 k in scenario 1 and Rs 50k and Rs 1 lakh in scenario 2. The revenue losses of the Government stands at Rs 74,000 crores to Rs 1.08 lakh crores. Additionally, a flat 15% tax is imposed on bank deposits that is added to other income and delinked from highest income bucket, with an increase in limit to Rs 20,000 tax exemption for SA deposits
Case-2: Peak rate retained at 30% for income above 15L. However, tax rates are reduced to 15% from Rs 10 lakhs-Rs 15 lakhs and all exemptions are removed but healthcare and NPS are retained at the same level of Rs 25k and Rs 50 k and increased to Rs 50k and Rs 75 k in scenario 12 and Rs 50k and Rs 1lakh in scenario 2. The revenue losses of the Government stands at Rs 16,000 crores to Rs 50,000 crores. Additionally, a flat 15% tax is imposed on bank deposits that is added to other income and delinked from highest income bucket, with an increase in limit to Rs 20,000 tax exemption for SA deposits . We propose this option for the Government as also Public at large
Case3: Peak rate cut to 25% for income above 15L Tax rates are reduced to 15% from Rs 10 lakhs-Rs 15 lakhs and all exemptions are removed but healthcare and NPS are retained at the same level of Rs 25k and Rs 50 k and increased to Rs 50k and Rs 75 k in scenario 12 and Rs 50k and Rs 1lakh in scenario 2. The revenue losses of the Government stands at Rs 85,000 crores to Rs 1.19 lakh crores . Additionally, a flat 15% tax is imposed on bank deposits that is added to other income and delinked from highest income bucket, with an increase in limit to Rs 20,000 tax exemption for SA deposits
Out of all the scenarios estimated above, SBI Research is of the considered opinion that Case-2 optimizes the revenue foregone-incremental output scenario the Best by strengthening the four quadrants of Social Security, Financial Stability, Consumption boost and healthcare tweaking tax rates between the Rs 10-15 lakh bucket, removing the exemptions but bolstering the same on NPS (creating a handsome corpus for sunset years / other eventualities) and healthcare among those who can afford (that may accentuate government’s schemes like Ayushman Bharat), keeping optimal CASA deposits level in the banking system, eventually boosting consumption and investments through higher ICOR (incremental capital output ratio)
00:02 (IST) Feb 01
Budget 2025 Live: How will India become a developed country?
To achieve the goal of becoming a developed country, India’s real GDP needs to grow at a CAGR of 7.5-8 per cent for over the next two and half decades.
CII believes that this sustained growth, though ambitious, is achievable through a multipronged approach, which includes leveraging strengths, managing risks, strengthening resilience, improving competitiveness, and finding new growth drivers. It requires acceleration in reforms, rapid infrastructure development, building human capital for 21st century work, generating large-scale quality employment opportunities, boosting industry competitiveness, increasing the rate of innovation and technology adoption, maximizing the gains from ongoing supply chain diversification and the climate transition, continuing fiscal consolidation, and reducing government debt, all done in a climate-sustainable and inclusive manner.
Strong contributions from all sectors - agriculture, industry, and services - are essential. All components of GDP - consumption, investment, and trade - need to grow in a balanced manner.
After robust growth over the last three years, growth seems to have slowed down in the first half of the current fiscal, with both fiscal and monetary policy remaining somewhat restrictive. Further while there is pick-up in private investments, the global uncertainties emanating from slow recovery in growth, conflicts in many parts of the world, and excess capacity in China, amongst others, continue to hamper a broad-based recovery in the private sector investment.
The Union Budget 2025-26 should make interventions to support all engines of growth. The twin approach of balancing higher government expenditure, especially capex, along with fiscal prudence should continue, says CII.
CII believes that this sustained growth, though ambitious, is achievable through a multipronged approach, which includes leveraging strengths, managing risks, strengthening resilience, improving competitiveness, and finding new growth drivers. It requires acceleration in reforms, rapid infrastructure development, building human capital for 21st century work, generating large-scale quality employment opportunities, boosting industry competitiveness, increasing the rate of innovation and technology adoption, maximizing the gains from ongoing supply chain diversification and the climate transition, continuing fiscal consolidation, and reducing government debt, all done in a climate-sustainable and inclusive manner.
Strong contributions from all sectors - agriculture, industry, and services - are essential. All components of GDP - consumption, investment, and trade - need to grow in a balanced manner.
After robust growth over the last three years, growth seems to have slowed down in the first half of the current fiscal, with both fiscal and monetary policy remaining somewhat restrictive. Further while there is pick-up in private investments, the global uncertainties emanating from slow recovery in growth, conflicts in many parts of the world, and excess capacity in China, amongst others, continue to hamper a broad-based recovery in the private sector investment.
The Union Budget 2025-26 should make interventions to support all engines of growth. The twin approach of balancing higher government expenditure, especially capex, along with fiscal prudence should continue, says CII.
Union finance minister Nirmala Sitharaman presented the first full budget under the Modi government 3.0, announcing significant tax relief for individuals. Under the new tax regime, there will be no income tax for earnings up to Rs 12 lakh, with a slight increase to Rs 12.75 lakh for salaried taxpayers, factoring in the standard deduction.
This marked Sitharaman’s record eighth consecutive budget presentation in the Lok Sabha, where she laid out key economic reforms. The budget emphasised support for the "garib, youth, annadata, and nari" (the poor, youth, farmers, and women) and promised reforms across six key sectors: taxation, urban development, mining, the financial sector, power, and regulatory frameworks.
FM also announced rationalisation of TDS (Tax Deduction at Source) regime to ease compliance burden. Presenting the Budget for 2025-26, she said tax proposals are guided by income tax reforms for middle class, TDS rationalisation, and easing compliance burden. The government will also be introducing a new Income Tax (I-T) bill in Parliament next week.
Earlier, the Economic Survey projected India’s economy to grow between 6.3% and 6.8% for the financial year 2025-26. The survey highlighted India’s strong economic foundation, noting fiscal discipline, a stable external account, and sustained private consumption. It also emphasized the government’s focus on long-term industrial growth through increased investment in research and development (R&D), MSMEs, and capital goods.
This marked Sitharaman’s record eighth consecutive budget presentation in the Lok Sabha, where she laid out key economic reforms. The budget emphasised support for the "garib, youth, annadata, and nari" (the poor, youth, farmers, and women) and promised reforms across six key sectors: taxation, urban development, mining, the financial sector, power, and regulatory frameworks.
FM also announced rationalisation of TDS (Tax Deduction at Source) regime to ease compliance burden. Presenting the Budget for 2025-26, she said tax proposals are guided by income tax reforms for middle class, TDS rationalisation, and easing compliance burden. The government will also be introducing a new Income Tax (I-T) bill in Parliament next week.
Earlier, the Economic Survey projected India’s economy to grow between 6.3% and 6.8% for the financial year 2025-26. The survey highlighted India’s strong economic foundation, noting fiscal discipline, a stable external account, and sustained private consumption. It also emphasized the government’s focus on long-term industrial growth through increased investment in research and development (R&D), MSMEs, and capital goods.
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