Key Highlights Before Nirmala Sitharaman's Union Budget 2025 at 11 AM

Finance Minister Nirmala Sitharaman is set to present the Union Budget 2025 today, marking her eighth consecutive budget and the first full-year budget of the Modi government’s third term. The budget arrives amid global economic challenges, slowing domestic growth, and geopolitical uncertainties, making it crucial for India's economic trajectory in the coming fiscal year.

The Union Budget 2025 is expected to focus on economic resilience, infrastructure expansion, and employment generation, while maintaining fiscal prudence. With the ‘Viksit Bharat 2047’ vision in focus, the government is likely to prioritize manufacturing, technology innovation, and tax reforms to stimulate growth.

Economic Context: What’s Driving Union Budget 2025?

1. Economic Growth and Fiscal Strategy

The Economic Survey 2024-25 forecasts India's GDP growth at 6.3% - 6.8% for FY26, prioritizing domestic consumption over exports. Achieving ‘Viksit Bharat’ by 2047 will require a sustained 8% annual GDP growth, a 35% investment rate, and advancements in manufacturing, artificial intelligence (AI), and biotechnology.

With slowing global growth and the US signaling potential trade barriers under President Donald Trump, India’s focus will likely be on domestic demand, manufacturing expansion, and investment-friendly reforms.

2. Taxation and Relief Measures

Taxpayers are eagerly awaiting changes in income tax slab rates for 2025-26, with expectations of relief for middle-class households and small businesses. Speculations include:

• Increase in basic exemption limit under the new tax regime.
• Incentives for startups and MSMEs to boost job creation.
• Corporate tax adjustments to attract foreign investments.

3. Stock Market and Budget Day Trading

Despite being a Saturday, both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) will remain open today to facilitate trading based on budget announcements. The market will react to:

• Corporate tax policies impacting profitability.
• Sector-specific allocations in infrastructure, banking, and real estate.
• Fiscal deficit targets and capital expenditure plans.

4. Infrastructure, Railways & Real Estate Focus

The government is expected to announce a major push in infrastructure, with key allocations in:

• National highways and smart cities development
• Railway modernization under Railway Budget 2025
• Affordable housing incentives for middle-class buyers

5. Digital Economy and AI-Powered Growth

With AI and blockchain becoming central to India’s digital economy roadmap, the Union Budget 2025 may introduce:

• Incentives for AI research and blockchain startups
• Policies to enhance cybersecurity and digital infrastructure
• Regulations for cryptocurrency and digital assets

6. Rural and Agricultural Development

The government’s ‘Viksit Bharat’ vision aims to empower rural India, with expected budget provisions for:

• Expansion of PM-KISAN benefits for farmers
• Irrigation and agri-tech incentives
• Subsidies on fertilizers and farming equipment

7. India’s Global Trade Strategy Amid US Tariff Threats

With President Donald Trump warning of new tariffs on India, the government faces pressure to boost domestic manufacturing while ensuring global trade stability. Potential responses include:

• ‘Make in India’ 2.0 policies for reducing import reliance.
• Strengthening ties with Europe, Southeast Asia, and the Middle East.
• Expanding production-linked incentive (PLI) schemes for key sectors.

Legislative Agenda: Key Bills in the Budget Session 2025

Besides economic policies, the Budget Session 2025 will witness the introduction of key legislative reforms:

• Banking Laws (Amendment) Bill, 2024 – To strengthen banking regulations.
• Railways (Amendment) Bill, 2024 – To modernize Indian Railways.
• Disaster Management (Amendment) Bill, 2024 – To enhance disaster preparedness.

Budget Session Dates

• Phase 1: January 31 – February 13, 2025
• Phase 2: March 10 – April 4, 2025

What’s Next? Budget 2025’s Impact on India’s Economy

The Union Budget 2025 will shape India’s economic trajectory for the next fiscal year. As the government balances growth with fiscal discipline, key sectors like manufacturing, digital economy, and infrastructure will play a crucial role in India's $5 trillion economy ambition.

Stay tuned for live updates as Finance Minister Nirmala Sitharaman unveils India’s financial roadmap at 11 AM.