Union Budget 2025 - Key Highlights & News

Union Budget 2025 Live Updates: Govt to Forgo ₹1 Lakh Crore in Direct Taxes

The government announced it will forgo ₹1 lakh crore in direct taxes and ₹2,600 crore in indirect taxes due to the changes in tax rates.

Union Budget 2025 Live Updates: Big Relief for Middle Class with New Income Tax Slabs

Finance Minister Nirmala Sitharaman announced new income tax slabs under the new regime for the middle class:

₹4 to ₹8 lakh: 5%
₹8 to ₹12 lakh: 10%
₹12 to ₹16 lakh: 15%
₹16 to ₹20 lakh: 20%
₹20 to ₹24 lakh: 25%
Above ₹24 lakh: 30%

These changes aim to provide significant relief to the middle class.

Big Update on Personal Income Tax

No income tax payable upto income of 12 lakhs, FM Nirmala Sitharaman

Union Budget 2025 Live Updates: Proposal to Remove TCS on Education Loans and Sales Transactions

Finance Minister Nirmala Sitharaman proposed the removal of TCS on remittances for education purposes, provided the remittance is funded through a loan from a specified financial institution. Additionally, TCS on transactions related to the sale of goods will be omitted to ease compliance difficulties.

Union Budget 2025 Live Updates: Key TDS Announcements to Ease Tax Burden

Finance Minister Nirmala Sitharaman announced several TDS reforms aimed at providing better clarity and ease of compliance:

• Rationalizing TDS rates and thresholds to reduce complexity.
• Doubling the limit for tax deduction on interest for senior citizens from ₹50,000 to ₹1,00,000.
• Raising the annual TDS limit on rent from ₹2.40 lakh to ₹6 lakh, benefiting small taxpayers.
• Increasing the TCS threshold for remittances under the RBI's Liberalised Remittance Scheme (LRS) from ₹7 lakh to ₹10 lakh.

Union Budget 2025 Live Updates: Income Tax Reforms Focused on Middle Class

Finance Minister Nirmala Sitharaman emphasized that the income tax reforms aim to promote ease of doing business, encourage voluntary compliance, and reduce the compliance burden. The proposals focus on personal income tax reforms with special emphasis on the middle class, rationalizing TDS and TCS to ease difficulties, and fostering employment and investment.

Union Budget 2025 Live Updates: Full Customs Duty Exemption on Critical Minerals

Finance Minister Nirmala Sitharaman proposed full exemption of Basic Customs Duty (BCD) on cobalt powder, lithium-ion battery waste, scrap, and 12 other critical minerals. This initiative aims to secure the availability of these vital materials for manufacturing in India, while also fostering job creation for the youth.

Union Budget 2025 Live Updates: FM provides fresh update on Direct Tax

The new bill will be clear and direct in text with close to half of the present law. It will be simple to understand for tax payers and tax administrators, says FM Nirmala Sitharaman.

Union Budget 2025 Live Updates: Sensex & Nifty Nosedives 

Nifty falls about 250 points and Sensex drops 800 points, amid FM's budget presentation.

Union Budget 2025 Live Updates: Government Proposes Removal of 7 Additional Tariff Rates

The government has proposed the removal of 7 additional tariff rates, building on previous budget changes. This move will leave only 8 tariff rates remaining, simplifying the tax structure and promoting ease of doing business.

Union Budget 2025 Live Updates: India’s Fiscal Path and Deficit Projections

Finance Minister Nirmala Sitharaman outlined the government's commitment to maintaining a declining fiscal deficit trajectory, ensuring that central government debt continues to decrease as a percentage of GDP. The FRBM statement provides a six-year roadmap, with the revised estimate for 2024-25 showing total receipts (excluding borrowings) of ₹31.47 lakh crore, with net tax receipts of ₹25.57 lakh crore. The total expenditure for the year is projected at ₹47.16 lakh crore, including a capital expenditure of ₹10.1 lakh crore. The fiscal deficit for the year is now pegged at 4.8% of GDP.

Union Budget 2025 Live Updates: Investment Friendliness Index to Promote Competitive Cooperative Federalism

Finance Minister Nirmala Sitharaman announced the launch of an Investment Friendliness Index for states in 2025 to promote competitive cooperative federalism. A mechanism will be set up under the Financial Stability and Development Council (FSDC) to assess the impact of existing financial regulations and subsidiary instructions, aiming to improve the financial sector's growth and responsiveness. Additionally, she highlighted the Jan Vishwas Act 2023, which has decriminalized over 1,080 legal provisions, creating a more business-friendly regulatory environment.

Union Budget 2025 Live Updates: Govt to Draft Model Bilateral Investment Treaty to Boost Foreign Investment

The government will draft a model Bilateral Investment Treaty to create a more investment-friendly environment and attract sustained foreign investment, further strengthening India’s position as a global investment hub.

Union Budget 2025 Live Updates: Insurance FDI Limit Increased to 100%

The Foreign Direct Investment (FDI) limit in the insurance sector has been increased from 74% to 100%. This change applies to insurers who invest their entire premium within India, opening up more opportunities for foreign investment in the sector.

Union Budget 2025 Live Updates: New Income Tax Bill to Be Introduced Next Week

A new income tax bill will be introduced next week, featuring a "trust first, scrutinize later" approach to streamline taxation and reduce the burden on taxpayers.

Union Budget 2025 Live Updates: Deeptech Fund of Funds and PM Research Fellowship Scheme Announced

A Deeptech Fund of Funds will be explored to support cutting-edge technological advancements. Additionally, the PM Research Fellowship Scheme will provide 10,000 fellowships for tech research at IITs and IISc over the next five years, fostering innovation and research in the tech sector.

Union Budget 2025 Live Updates: Aquaculture Stocks Surge on Fisheries Sector Boost

Shares of aquaculture companies, including Apex Frozen, Avanti Feeds, and Kings Ventures, rallied on Saturday, February 1, following Budget 2025 proposals announced by Finance Minister Nirmala Sitharaman. The FM stated that the government will introduce an enabling framework to sustain fisheries harvest in exclusive economic zones and high seas. Among individual stocks, Apex Frozen surged 8.59% to ₹271.70 on the NSE, Avanti Feeds gained over 4% to ₹724.60, and Kings Ventures climbed 7% to ₹154 on the BSE.

Union Budget 2025 Live Updates: PM Gati Shakti Data to Be Opened for Private Sector

The government will make PM Gati Shakti data accessible to the private sector to enhance logistics and infrastructure planning. Additionally, the top 50 tourist destinations will be developed in partnership with state governments, and hotels will be included in the harmonised scheme to boost tourism infrastructure.

Union Budget 2025 Live Updates: Modified UDAN Scheme to Connect 120 New Destinations

The government will launch a modified UDAN scheme to enhance regional air connectivity by linking 120 new destinations, aiming to serve 4 crore passengers over the next 10 years. Additionally, greenfield airports will be developed in Bihar to support this expansion and improve aviation infrastructure.

Union Budget 2025 Live Updates: Revamp of Shipbuilding Financial Assistance Policy

The government will revamp the shipbuilding financial assistance policy with the creation of a Maritime Development Fund, which will have a corpus of ₹25,000 crore. The government will contribute 49% to this fund to boost the shipbuilding sector.

Union Budget 2025 Live Updates: Key Power Sector Reforms Announced by FM

Finance Minister Nirmala Sitharaman highlighted key power sector reforms aimed at strengthening electricity distribution and transmission. The government will incentivize states to undertake reforms in electricity distribution and enhance intrastate transmission capacity. Additionally, the government has set a target of achieving 100 gigawatts (GW) of nuclear energy by 2047 as a crucial step in India’s energy transition. To support power sector reforms and capacity augmentation, states will receive an additional borrowing allowance of 0.5% of GSDP, contingent on their progress in implementing these measures.

Union Budget 2025 Live Updates: 3-Year PPP Infrastructure Pipeline Announced

The government will create a 3-year pipeline of infrastructure projects by states, designed for implementation in public-private partnership (PPP) mode. Each infrastructure ministry will develop a 3-year plan for PPP projects. An outlay of ₹1.5 lakh crore has been proposed for 50-year interest-free loans to support these initiatives.

Union Budget 2025 Live Updates: ₹1 Lakh Crore Urban Challenge Fund to Boost Growth Hubs

The government will establish a ₹1 lakh crore Urban Challenge Fund to transform cities into growth hubs. The fund will finance 25% of the cost of bankable projects, with ₹10,000 crore allocated for 2025-26. The remaining 50% of the funding will be raised through bonds, bank loans, and public-private partnerships (PPPs).

Union Budget 2025 Live Updates: Expansion of Medical Education and Cancer Care

Finance Minister Nirmala Sitharaman announced that 10,000 additional seats will be added to medical colleges, with a goal to increase the total by 75,000 seats over the next five years. Additionally, 200 cancer centres will be established in 2025-26 to enhance healthcare infrastructure.

Union Budget 2025 Live Updates: New Initiatives for Skilling and AI Education

Finance Minister Nirmala Sitharaman announced the establishment of five National Centres of Excellence for Skilling to equip youth with the skills needed for global opportunities. The government will also foster global skilling partnerships to position India as a key player in global manufacturing. In addition, infrastructure at IITs set up after 2015 will be expanded, allowing for 6,500 more students across five IITs. A Centre of Excellence for AI in Education will also be created with an outlay of ₹500 crore.

Union Budget 2025 Live Updates: New Manufacturing Mission to Strengthen Make in India

A new manufacturing mission under the Make in India initiative will provide policy support and a structured framework to small, medium, and large industries. The mission aims to develop an ecosystem for solar PV cells, electrolysers, and grid-scale batteries, boosting domestic manufacturing.

Union Budget 2025 Live Updates: ₹10,000 Crore Set Aside for New Fund of Funds

A new Fund of Funds (FoF) will be established with an expanded scope and a fresh contribution of ₹10,000 crore. The FoF for startups has already received commitments exceeding ₹9 lakh crore.

Union Budget 2025 Live Updates: Credit Guarantee Cover for MSMEs Doubled

Finance Minister Nirmala Sitharaman announced that the credit guarantee cover for micro-enterprises will be increased from ₹5 crore to ₹10 crore. This enhancement is expected to result in an additional ₹1.5 lakh crore of credit over the next five years, providing significant financial support to MSMEs. To support greater technological upgrades and improved access to capital, the investment and turnover limits for all MSMEs have been increased to 2.5 times and 2 times, respectively.

Union Budget 2025 Live Updates: KCC Loan Limit Increased for Enhanced Agricultural Support

Finance Minister Nirmala Sitharaman announced an increase in the loan limit for Kisan Credit Cards (KCC), benefiting 7.7 crore farmers, fishermen, and dairy farmers. Under the modified interest subvention scheme, the loan limit will rise from ₹3,000 to ₹5,000, providing greater financial support for agricultural production.

Union Budget 2025 Live Updates: 6-Year Mission for Self-Reliance in Pulses Announced

Finance Minister Nirmala Sitharaman revealed a 6-year mission to achieve self-reliance in pulses, focusing on tur and masoor. Central agencies like NAFED and NCCF will facilitate procurement from farmers who register and enter agreements, ensuring support and guaranteed procurement over the next four years.

Union Budget 2025 Live Updates: FM Focuses on Agriculture as Key Growth Driver

Finance Minister Nirmala Sitharaman announced the launch of a new program to develop agri districts, modeled after the aspirational districts initiative. The program aims to support 1.7 crore farmers through crop diversification, improved irrigation facilities, and better access to credit. Additionally, it will focus on augmenting post-harvest storage to enhance agricultural productivity.

Union Budget 2025 Live Updates: Key Sectors on FM's Radar for Growth and Reforms

The Union Budget 2025 focuses on key sectors such as taxation, power, urban development, mining, the financial sector, and regulatory reforms. These domains are central to the government's efforts to drive growth, improve infrastructure, enhance governance, and ensure sustainable development across various industries.

Union Budget 2025 Live Updates: India’s Economy Fastest Growing Among Major Nations, Says FM

Finance Minister Nirmala Sitharaman highlighted that India's economy remains the fastest growing among major economies. She emphasized that the Budget 2025-26 continues the government's efforts to accelerate growth, drive inclusive development, uplift household sentiment, and strengthen the power of India's middle class.

Union Budget 2025 Live Updates: Budget Focused on Accelerating Growth, Says Sitharaman

As she began her Budget speech, Finance Minister Nirmala Sitharaman stated, "Together, we aim to unlock India's potential under the visionary leadership of Prime Minister Modi."

Presenting the Union Budget for 2025-26, she emphasized the government's continued efforts to drive economic expansion. "This budget is dedicated to accelerating growth, driven by our aspirations for a 'Viksit Bharat.' Our economy remains the fastest growing among all major economies," she added.

Union Budget 2025 Live Updates: FM Begins Budget Speech

Finance Minister rises to table Budget 2025-26.

Union Budget 2025 Live Updates: Markets Trade Higher, IT and Oil & Gas Lag

Most sectoral indices are in the green on Budget Day, with power, realty, consumer durables, and FMCG stocks rising 0.5-1%. Major gainers on the Nifty include Sun Pharma, Bharat Electronics, UltraTech Cement, Adani Ports, and IndusInd Bank, while Hero MotoCorp, ONGC, Dr. Reddy's Labs, Trent, and Grasim Industries are among the top losers. Meanwhile, the BSE Midcap and Smallcap indices are up 0.5% each.

Union Budget 2025 Live Updates: Railway Stocks Surge Up to 7% on Capex Boost Hopes

Shares of railway-related companies jumped up to 6.6% on the BSE as investors anticipated a significant capital expenditure push in Union Budget 2025.

Titagarh Rail Systems led the rally, climbing 6.58% to ₹1,087, while Rail Vikas Nigam Ltd (RVNL) gained 5.26%, reaching ₹501.55.

Union Budget 2025 Approved, Set for Presentation Today

The Cabinet, led by Prime Minister Narendra Modi, has approved the Union Budget 2025, which Finance Minister Nirmala Sitharaman will present today—her eighth consecutive budget. Key expectations include relief on household expenses, job creation for youth, and income tax concessions for the salaried class.

Sitharaman Set to Present Paperless Budget with Tablet in 'Bahi-Khata' Pouch

Finance Minister Nirmala Sitharaman will present her eighth consecutive Budget today, delivering it digitally from a tablet placed in a traditional red 'bahi-khata' style pouch.

Nifty and Sensex Ahead of Budget 2025

The Indian stock market is trading cautiously as investors await the Union Budget, set to be presented at 11 AM. Sensex is up 153.66 points (0.20%) at 77,654, while Nifty has gained 56.55 points (0.24%) to 23,564. BANKNIFTY is trading at 49,745, up 158.70 points (0.32%), and FINNIFTY has edged up 23.95 points (0.10%) to 23,244. Stay tuned for live updates!

Economic Survey 2024-25: Rising Corporate Profits Amid Sluggish Wage and Employment Growth Raises Concern

The Economic Survey 2024-25 has highlighted a concerning divergence between soaring corporate profits and sluggish wage and employment growth. Corporate profitability reached a 15-year high in FY24, with the profit-to-GDP ratio among Nifty 500 firms rising to 4.8%, the highest since FY08. However, while profits surged by 22.3%, employment grew by only 1.5%. The survey noted that companies prioritized cost-cutting, as employee expenses grew just 13%—a drop from 17% in FY23.

Economic Survey 2024-25: India's Data Centre Market to Reach USD 11.6 Billion by 2032

India's data centre market is set to grow significantly, from USD 4.5 billion in 2023 to USD 11.6 billion by 2032, as per the Economic Survey 2024-25. This growth is driven by expanding infrastructure and rising demand for digital services. The market is projected to expand at a compound annual growth rate (CAGR) of 10.98%, reflecting the increasing importance of data centres in India's digital economy.

Economic Survey 2024-25: FPI Investments Surge Post JP Morgan Index Inclusion

Foreign portfolio investors (FPI) injected Rs 62,431 crore into Indian government bonds until November 2024, following India's inclusion in the JP Morgan index, as highlighted in the Economic Survey 2025. The inclusion of 29 government securities under the Fully Accessible Route (FAR) in June 2024 boosted FPI activity, with cumulative inflows reaching Rs 1.1 lakh crore from October 2023 to June 2024. India now holds a 1% weight in the index, with monthly increments planned until March 2025.

Economic Survey 2024-25: Surge in Capex for Key Infrastructure Sectors

The Economic Survey reports a 38.8% growth in capital expenditure (Capex) on key infrastructure sectors from FY20 to FY24. In FY25, the momentum continued, with significant acceleration between July and November 2024, post-election. This increased focus on infrastructure spending underscores the government's commitment to driving economic growth and development through strategic investments in critical sectors.

Economic Survey 2024-25: Inflation Under Control with Positive Signs for FY26

The Economic Survey highlights that retail headline inflation softened from 5.4% in FY24 to 4.9% in April-December 2024, thanks to government measures and monetary policies. Key factors like supply chain disruptions and extreme weather affected food inflation. However, proactive steps such as strengthening buffer stocks and easing imports helped stabilize prices. The RBI and IMF project India’s consumer price inflation to gradually align with the 4% target by FY26.

Economic Survey 2024-25: Trade and Strategic Competition: A Shifting Global Landscape

The Economic Survey 2025 highlighted a notable shift in global trade dynamics, with trade under new import restrictions skyrocketing from $170 billion in 2014-15 to over $1.3 trillion. The Chief Economic Advisor (CEA) pointed out that imports, exports, and investment flows are increasingly being viewed through the lens of strategic competition. This shift signals that global trade will continue to evolve in this direction, and India must strategically navigate these new challenges to stay competitive.

Economic Survey 2024-25: Agriculture - A Key Sector for Future Growth

The Economic Survey 2025 emphasized the importance of empowering farmers to unlock higher value and productivity in agriculture. The Chief Economic Advisor (CEA) highlighted that agriculture holds the potential to contribute an additional 0.75% to 1% to India’s GDP growth. Successful state-level initiatives, such as land pooling and the expansion of micro-irrigation (which has tripled in the last eight years), are driving agricultural productivity and improving irrigation coverage, reinforcing agriculture’s role as a “sector of the future.”

Economic Survey2024-25: India’s Growing Strength in Global Services

India continues to emerge as a significant global player in the services sector, according to the Economic Survey 2025. The CEA highlighted India's growing influence in global services, while acknowledging that China remains the dominant force in high-tech and medium-tech manufacturing. Despite India’s growth, China’s manufacturing output is projected to surpass the combined share of the next 10 countries in global gross output, cementing its dominance in the manufacturing sector over the past few decades.

Economic Survey 2024-25: Domestic Economy Shows Resilience Amid Global Uncertainties  

According to the Economic Survey, India's real GDP growth for FY25 is projected at 6.4%, based on first advance estimates by the National Statistical Office. The survey highlights a 7.3% growth in private final consumption expenditure (PFCE), driven by a recovery in rural demand. PFCE’s share of GDP is expected to rise from 60.3% in FY24 to 61.8% in FY25, marking the highest level since FY03. Additionally, gross fixed capital formation (GFCF) is projected to grow by 6.4%.
 

Economic Survey 2024-25: FDI Sees Strong Revival with 17.9% Growth in FY25

FDI saw a significant recovery in FY25, with gross inflows rising from USD 47.2 billion in the first eight months of FY24 to USD 55.6 billion during the same period in FY25, marking a year-on-year growth of 17.9%.
 

Economic Survey 2024-25: Significant Growth in Formal Employment, EPFO Subscriptions Surge  

According to the Economic Survey, "The formal sector in India has seen significant growth, with net Employees’ Provident Fund Organisation (EPFO) subscriptions more than doubling from 61 lakh in FY19 to 131 lakh in FY24. In April -November 2024, net additions reached 95.6 lakh, driven largely by youth. Workers aged 18-25 years contributed to 47% of the net payroll additions.” This reflects a rising shift toward formal employment.
 

Economic Survey 2024-25: Investment Slowdown Likely Temporary as Capital Formation Gains Momentum  

The recent slowdown in investment activity appears to be temporary, with early signs of recovery in capital formation. Government data indicates an 8.2% rise in Union government capital expenditure between July and November 2024. With expectations of further acceleration in spending, the investment cycle is likely to gain momentum in the coming months, supporting economic growth and infrastructure development.
 

Economic Survey 2024-25: Banking Sector Remains Stable Amid Moderation in Credit Growth  

India’s banking and financial sector continues to be well-capitalized and resilient, effectively meeting the economy’s financing needs. While scheduled commercial banks (SCBs) have maintained double-digit credit growth, recent months have seen a slight moderation. This slowdown is attributed to a high base effect and regulatory tightening in sectors that previously witnessed rapid expansion. Despite this, the overall stability of the sector ensures continued support for economic growth and financial inclusion.
 

Economic Survey 2024-25: Corporate Debt Market Sees Strong Growth Amid Rising Investor Demand

India's corporate debt market witnessed significant momentum in 2024, with bond issuances reaching ₹7.3 lakh crore between April and December. The average monthly issuance rose to ₹0.8 lakh crore, surpassing the previous year’s ₹0.66 lakh crore. Private placements dominated, accounting for 99.1% of total funds raised. Growing investor interest and high borrowing costs from banks have made corporate bonds an increasingly attractive financing avenue for businesses, further strengthening the market's role in resource mobilization.

Economic Survey 2024-25: India Leads Global IPO Market Amid Strong Listing Momentum

India's primary markets remained active in FY25, witnessing strong investor enthusiasm and robust listing activity. According to E&Y Global IPO Trends, Indian stock exchanges continue to offer favorable conditions for foreign conglomerates to list their local subsidiaries, unlocking significant value. India's share in global IPO listings surged to 30% in 2024, up from 17% in 2023, making it the top contributor to primary resource mobilization worldwide.
 

Economic Survey 2024-25 Sets Growth Target for 'Viksit Bharat' Vision

The Economic Survey 2024-25 projects India's GDP growth for FY26 to range between 6.3% and 6.8%. However, to achieve the vision of 'Viksit Bharat' by 2047, the nation must sustain an average growth rate of 8% over the next two decades. While this target is essential for India's long-term economic aspirations, the survey acknowledges that global political and economic conditions will play a crucial role in shaping the country's growth trajectory.

Economic Survey 2025 is Expected to Project GDP Growth at 6.3-6.8%

The upcoming Economic Survey for 2024-25 is expected to project India's GDP growth for the next fiscal year between 6.3% and 6.8%, sources told PTI. Authored by Chief Economic Advisor V Anantha Nageshwaran and his team, the Survey will be presented in Parliament today.  
 

President Murmu Highlights Poverty Alleviation, Healthcare, and AI Innovation in Address

President Droupadi Murmu emphasized the government’s success in reducing poverty through welfare schemes and highlighted the Ayushman Bharat initiative, which now includes health insurance for six crore senior citizens. She addressed concerns over paper leaks in competitive exams and underscored efforts to improve education and employment opportunities for youth. Additionally, she praised the government’s AI mission, focusing on research and innovation, with a vision to establish India as a global leader in cutting-edge technology and innovation.

PM Modi Expresses Confidence Ahead of Budget Session

Ahead of the Budget session, Prime Minister Narendra Modi addressed the media, expressing optimism about India's economic growth. He said the session would boost confidence and energy in achieving the ‘Viksit Bharat’ vision. Modi invoked Goddess Lakshmi, hoping for prosperity for the poor and middle class. Emphasizing the economic roadmap, he highlighted "innovation, inclusion, and investment" as key pillars driving development. His remarks set the stage for the Union Budget 2025-26, focusing on economic progress and national growth.

PM Modi Addresses Parliament as Budget Session Begins

Prime Minister Narendra Modi spoke at the opening of the Budget Session of Parliament. India’s real GDP grew by 8.2% in FY24, driven by strong consumption and rising investment demand. The president will address the joint sitting at 11 a.m. Union Finance Minister Nirmala Sitharaman is set to present the 2025 Economic Survey in the Lok Sabha at 12 noon and in the Rajya Sabha at 2 pm today, outlining key economic trends ahead of the Union Budget.

Steel Industry Seeks Tax Benefits, Higher Import Duties in Budget 2025

The steel industry is pushing for tax benefits and subsidies to support green steel technologies, aligning with India's carbon reduction targets. As per Moneycontrol, Rajamani Krishnamurti, President of the Indian Stainless Steel Development Association, emphasized the need for incentives to drive innovation in sustainable manufacturing. Additionally, JSL MD Abhyuday Jindal stated, "We urge the government to raise the basic customs duty on stainless steel products to 15% for all non-free trade agreement countries." The industry also seeks continued export duties on chrome ore to safeguard domestic supply.

Government to Hold All-Party Meeting on January 30 Ahead of Budget Session

Ahead of the Budget session starting January 31, the government has invited political party leaders on January 30 to ensure smooth proceedings. The session will commence with President Droupadi Murmu addressing a joint sitting of Parliament in the Lok Sabha chamber. Finance Minister Nirmala Sitharaman is set to present the Union Budget on February 1. Discussions on the Motion of Thanks for the President’s Address will take place in both the Lok Sabha and Rajya Sabha on Monday.

Industry Seeks Boost in AI and Data Science Investment

As Union Budget 2025 approaches, industry leaders highlight the need for greater investment in AI and data science. According to a CNBC TV18 article, India’s R&D spending is below 1% of GDP, far behind the global average of 2.3%. Experts advocate raising this to 1.5% by 2026 to boost innovation and global competitiveness. Tax deductions for R&D in emerging technologies like AI and quantum computing, along with government-supported industry-academia partnerships, are seen as critical steps to accelerate progress and foster economic transformation.

SBI Proposes Tax Consolidation and Higher Deductions in Budget 2025-26

State Bank of India (SBI) has recommended the government streamline the tax structure by phasing out exemptions under the old tax regime and transitioning all 8.2 crore taxpayers to the new regime. In Budget 2024, a comprehensive review of the Income Tax Act, 1961, was initiated to simplify the framework, with reports suggesting a new income tax bill might be tabled in Budget 2025. SBI also proposed increasing NPS deductions from ₹50,000 to ₹1 lakh and doubling Section 80D medical insurance exemptions to ₹50,000.

Union Budget 2025-26 to Prioritize Railways Over Highways

The Union Budget 2025-26 is expected to shift its infrastructure focus towards railways, surpassing highways, according to a Nuvama report. This marks a major change in priorities, with railways set to receive a larger share of budgetary allocations. In FY24, highways were allocated ₹2.70 lakh crore, but the upcoming budget is likely to favor railways, which are gradually receiving funding comparable to highways. The report indicated that the allocation for railways in the next budget is expected to surpass that of highways.

Budget 2025 May Introduce Innovative Funding to Boost Key Sectors, says SBI

The Union Budget 2025 could unveil fresh initiatives to strengthen infrastructure, agriculture, MSMEs, and other vital sectors, as per a State Bank of India report. Potential measures may include alternate funding mechanisms, targeted production-linked incentive (PLI) schemes, and efforts to bolster India’s green economy and disaster resilience. The report suggests the government might explore alternatives like tax-free or tax-paid bonds for funding infrastructure projects. These funding options, often cheaper than conventional loans for top-rated borrowers, could significantly reduce costs and accelerate development.
 

Traditional Halwa Ceremony to Be Held Today at 5 PM in North Block

The traditional Halwa ceremony, symbolizing the final phase of the Union Budget preparation, is set to take place on Friday evening, January 24, at the North Block of the Central Secretariat. Finance Minister Nirmala Sitharaman will preside over the event, joined by Minister of State Pankaj Chaudhary and senior officials. This annual ceremony honors the efforts of finance ministry staff involved in budget compilation. It also marks the beginning of the “lock-in” process, where key personnel remain in isolation to maintain budget confidentiality.
 

Budget 2025 May Introduce Tax-Free Income up to ₹10 Lakh and 25% Tax Slab

The Union Budget 2025-26 could bring significant changes to the tax structure, with government sources hinting at tax-free income for annual earnings up to ₹10 lakh and a new 25% tax slab for incomes between ₹15 lakh and ₹20 lakh, Business Standard reported. Currently, incomes above ₹15 lakh are taxed at 30%. A source revealed that both options are under evaluation, and if feasible, both measures could be implemented to provide relief to taxpayers while maintaining fiscal balance in the upcoming budget.
 

ICRA Suggests Rs 11 Lakh Crore Capex Target and Tax Relief in Budget 2025  

Rating agency ICRA has recommended setting a capital expenditure target of ₹11 lakh crore for the next fiscal in the Union Budget 2025, along with inflation-adjusted tax relief to boost consumer spending. ICRA Chief Economist Aditi Nayar noted that the current fiscal's capex target of ₹11.11 lakh crore may fall short by ₹1.4 lakh crore. Nayar highlighted that capex spending between April and November 2024 was ₹5.13 lakh crore, only 46% of the budget estimate, stressing the need for focused fiscal management.

Income Tax Act Revamp: Over 6,500 Suggestions Received for Simplification

According to a report by Business Standard, the Income Tax Department has received more than 6,500 suggestions from stakeholders to simplify the Income Tax Act. Led by a committee under the Central Board of Direct Taxes (CBDT), the initiative aims to remove outdated provisions, reduce compliance burdens, and streamline the law by trimming its 298 sections and 23 chapters. For this, 22 specialized sub-committees have been formed that are actively collaborating with experts through meetings to recommend improvements.

MSMEs Seek Tax Reforms, Export Incentives, and Demand Boost in Budget 2025-26

Ravi Saxena, Founder and MD of Wonderchef, outlined key expectations of MSMEs for the Union Budget 2025-26, including tax reforms, compliance relief, and enhanced export incentives. He stressed the importance of ensuring better access to critical inputs like steel, aluminum, and plastics while calling for faster dispute resolution to ease operational challenges. He also emphasized that boosting consumer confidence and spending is essential for balanced GDP growth. Such measures, he added, would drive demand, create jobs, and support sustainable economic progress through public and private sector collaboration.
 

Government May Reintroduce Concessional Corporate Tax in Budget 2025-26

The government is reportedly considering reintroducing the concessional corporate tax rate in the Union Budget 2025-26, according to CNBC-TV18. Anonymous sources indicate that the Finance Ministry and PMO are evaluating a proposal shared by India Inc. However, the revised scheme might set the tax rate at 18% plus cess and surcharges, higher than the earlier 15%. Introduced in 2019, the concessional tax rate initially applied to new domestic companies commencing production by March 31, 2023, offering a competitive tax environment for businesses.  

Indian Railways May See Capital Allocation Surge in Budget 2025-26  

Indian Railways is likely to receive a 15-20% increase in capital expenditure allocation for FY26 in the upcoming Budget, as it looks to utilize the current year’s funds fully. This could boost the total allocation to over ₹3 lakh crore, compared to ₹2.65 lakh crore in the current fiscal. Key priorities for the next fiscal may include upgrading railway stations, introducing modern trains, and easing congestion on the track network, according to sources familiar with the ongoing discussions.

Will Budget 2025 Bring GST Relief and Policy Boost for the Cement Industry?

The cement industry seeks measures to foster growth and address key challenges in Budget 2025. Arun Shukla, President & Director of JK Lakshmi Cement Ltd, urged the government to expedite project approvals, release funds efficiently, and lower GST on cement from 28% to 18% to make housing affordable and boost the 'Housing for All' initiative. He emphasized the need for incentives for green manufacturing, logistics optimization, and innovations in sustainable technology to strengthen the sector's role in infrastructure development and India's $5 trillion economy vision.

Insurance Industry Seeks Tax Benefits and Support in Budget 2025

Top insurance officials have urged Finance Minister Nirmala Sitharaman to prioritize the life and health insurance sectors in the upcoming Union Budget on February 1. Key demands include increasing the Section 80D deduction limit for health insurance premiums and introducing a separate tax benefit for term insurance premiums. With healthcare inflation rising by 12-15% annually, the industry emphasizes the need for higher deductions to make health insurance accessible.

Finance Ministry to Review Progress of Key Financial Inclusion Schemes

Financial Services Secretary M. Nagaraju will chair a meeting with the heads of Public Sector Banks (PSBs) on Wednesday to evaluate the progress of major financial inclusion initiatives. The review will focus on schemes such as Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), and Pradhan Mantri Suraksha Bima Yojana (PMSBY). Representatives from private sector banks will also attend. The meeting aims to assess the impact and implementation of these programs.

NRAI Calls for Industry Status and Supportive Policies for Food Services Sector

The National Restaurant Association of India (NRAI) has urged the government to grant industry status to the food services sector and implement fair e-commerce policies to ensure a level playing field. In its pre-Budget recommendations, the NRAI proposed measures such as allowing extended operating hours for restaurants, offering targeted subsidies, and improving debt financing access for SMEs. It emphasized the need to safeguard restaurants, delivery partners, and consumers while highlighting the sector’s vital role in the economy amidst ongoing challenges.

CII Suggests Key Measures for Growth Ahead of Union Budget 2025

The Confederation of Indian Industry (CII) has proposed a range of measures ahead of the Union Budget 2025, including a reduction in benchmark interest rates to spur growth and targeted efforts to boost employment in labour-intensive sectors like apparel, tourism, and real estate. CII President Sanjiv Puri highlighted the need for labour reforms, swift anti-dumping duties on imports like steel and chemicals, and measures to tackle food inflation. Other suggestions include cutting excise duty on fuel and introducing PLI 2.0 for the garment sector.

NAREDCO Proposes Tax Deduction on Housing Loan Interest

The National Real Estate Development Council (NAREDCO) has urged the government to increase the tax deduction on housing loan interest from ₹2 lakh to ₹5 lakh and grant infrastructure status to the housing sector in the upcoming Budget 2025. Following a pre-budget meeting with Finance Minister Nirmala Sitharaman, NAREDCO Chairman Niranjan Hiranandani highlighted the need to boost affordable housing finance. Additional recommendations focused on driving growth in energy, urban development, and road infrastructure to strengthen the economy. 
 

Finance Minister Concludes Comprehensive Consultations for Budget 2025

Finance Minister Nirmala Sitharaman has wrapped up extensive consultations for the Union Budget 2025, the Finance Ministry announced. These discussions, held from December 6, 2024, involved over 100 participants from nine key stakeholder groups. Representatives included experts from agriculture, trade unions, MSMEs, education, health, infrastructure, and capital markets. The meetings aimed to gather insights from diverse sectors, such as farmers' associations, economists, and industry leaders, to shape the upcoming budget. Additionally, from January 10, 2025, citizens may share their valuable suggestions and ideas for the Union Budget 2025-26 on the MyGov platform.

Tax Relief on FDs and Capital Market Reforms?

As speculation grows around Union Budget 2025, reports suggest potential tax relief on interest earned from bank Fixed Deposits (FDs), which are currently taxed as per individual income tax slabs. Banks have reportedly urged the government to exempt FD interest from income tax, a move that could significantly benefit savers. Meanwhile, Radhika Gupta, MD and CEO of Edelweiss Mutual Fund, has proposed measures to enhance capital market inclusivity and efficiency, advocating for policies that encourage long-term savings in bonds and equity during pre-budget discussions.
 

Union Budget 2025 to be presented on 1st February, 2025.

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