Union Budget Speech 2025 Highlights: After FM's Income Tax Bonanza For Middle Class, PM Modi Calls It People's Budget

Finance Minister Nirmala Sitharaman is set to present the Union Budget on February 1, 2025, continuing the practice of presenting it on the first day of February each year. This will be her eighth budget presentation and the first full-year budget of Prime Minister Narendra Modi’s third term. So far, Sitharaman has presented five annual budgets and two interim budgets. Read More

For the Union Budget of 2025, the security and facility management industry awaits measures that will enhance growth in the industry while protecting national security measures. The increasingly sophisticated nature of security risks, physical and cyber, require a highly skilled and technology infused workplace. So, we want forward thinking policies.

In turn, a proper strategy could lead to the improvement of the security framework, encouraging new ideas, and enhancing employment opportunities through well structured skill development strategies. Such policies are fundamental to strengthen India's infrastructure as they will support the development of modernized risk focused AI powered security predictive systems. Moreover, fortifying the workplace skills will help close the yawning gap of required skills and boost employment while increasing the sector’s ability to further aid national security measures.

Because India’s security and risk management market is maturing steadily, this budget can deepen the technological investment for a more advanced security structure and services intelligent to the prospects of the nation. There is still hope that the policies available for review will assist the government to develop our industry capacity to protect them from varying risks.

The 2024 Union Budget is expected to push further growth and recoveries after the pandemic by the real estate sector. All the developers and homebuyers expect this budget to increase incentives for affordable housing with more relaxation of GST norms along with easy financing options. There will be enhanced opportunities in investment in building infrastructure along with proper town planning for better living, and sustainable and green practices for construction would add another progressive direction to the overall policy of the country. Hence the sector is quite eagerly waiting in India for that budget which focuses on a 5 trillion economy but offers better home ownership as well to thousands of million families across the country.

Senior citizens are hoping for tax relaxations in the 2025 budget, particularly in terms of exemptions on pension income. Many pensioners are looking for relief from high taxation on their retirement funds, which often become a significant financial burden. Advocates suggest increasing the tax-free limit on pension income or enhancing deductions to improve the financial well-being of older citizens. The demand for tax relief has gained attention as many seniors face rising healthcare and living expenses.

Ahead of the presentation of the Economic survey, tabled on 31 January 2025, President Droupadi Murmu addressed a joint session of the Lok Sabha and the Rajya Sabha. This economic survey, prepared under the guidance of the Chief Economic Advisor, V Anantha Nageswaran, provides an official evaluation of the country's current economic performance and national challenges.

During her speech, President Murmu declared that the Modi government has decided to further expand the program and to include 2 crore additional rural houses and 1 crore urban houses by the Financial Year 2024-29. She also lauded the government's commitment towards fulfilment of the dream of the middle class of having their own homes.

As Finance Minister Nirmala Sitharaman prepares to table the Union Budget 2025 today, the State Bank of India released a special report on January 24, 2025, recommending moving every taxpayer under the new tax regime and increasing certain exemptions limits. SBI recommended that the government omit the old tax regime completely while retaining only NPS and health insurance exemption under the new regime. However, it recommended increasing the exemption limit under the two provisions.

SBI in its ‘Prelude to Union Budget 2025-26’ report said, “FY26 budget could be built on the edifice of: Social Security, Financial Stability, Health Care and Consumption …We envisage the Pareto optimal solution of Rationalizing Direct taxes across various options with least revenue loss / Rs 50,000 crores / a meagre 0.14 per cent of GDP and maximum gains to the consumer.”

The bank recommended the removal of all exemptions and bringing it all under the new tax regime, but retaining as well as enhancing the NPS limit from Rs 50,000 to Rs 1 lakh.

The Union Budget for FY 2024-25 is scheduled to be presented today. People from all walks of society look forward to the presentation of the Budget as the government announces various schemes and amendments to existing laws which may impact them.

Salaried employees are eagerly waiting for the presentation of the Union Budget in hopes of announcements related to income tax relief or other such key announcements. Ahead of the Union Budget global accounting firm KPMG which offers Audit, Tax and Advisory services shared some of the key pre-budget expectations that the salaried class has from the Budget.

There is much anticipation from the upcoming budget especially for mission critical sectors. We can expect to see increased support for education, infrastructure and healthcare. The Union Budget FY2024-25 had a record allocation of ₹73,498 crore for education demonstrating a clear prioritization towards strengthening foundational learning which should likely continue. Increased funding is expected for key programs like Samagra Shiksha, PM POSHAN, and PM SHRI, alongside enhanced support for institutions such as KVS and NVS.

Infrastructure too is likely to continue being a major focus in line with development objectives and with particular attention towards improving rural road connectivity, highways, and water supply. We have seen capital outlay in infrastructure growing at about 24% CAGR between FY2019 and FY2025. In line with recent budgets, there is anticipation of strategic investments in roads, railways, and defense being prioritized to build a strong foundation for long-term geo-socio-economic resilience.

In healthcare, aligning fiscal policies with long-term public health objectives will be pivotal in building a resilient and equitable healthcare ecosystem. Sustained momentum across these is critical for inclusive and holistic development.”

In 2025, the reality of industrial real estate in India is a reflection of the country’s aspirations in manufacturing & Industrial asset class and the evolution of the Supply Chain infrastructure. It is very important to fast-track the development of multimodal logistics parks under the PM Gati Shakti Master Plan and we further expect around 40% increase Warehouse and logistics space on the back of implementation of PM Gati Shakti and the set up of industrial corridors. The sectors will witness growth in specialized facilities such as data centers and cold storage infrastructure, increase FDI in manufacturing and the China+1 strategy will further drive demand. Strengthening public-private partnerships and simplifying land acquisition processes for warehousing & Logistics Parks are significant to elevate India’s logistics ecosystem. We expect industrial real estate to become one of the more formidable asset classes with an investments of around ₹85000 crores being lured into the sector.

India's economy is growing, and accompanying this increased activity is the importance of the stimulation and growth of the real estate sector. To make this possible, the government can consider making favorable changes in tax policies for homebuyers. The first thing that can be done is increasing the deduction limit on the home loan interest under Section 24(b) from ₹2 lakh to ₹5 lakh. This change will provide much-needed relief to India’s middle class, allowing them easy access to homeowners loans. In addition to this, providing incentives to first home buyers and lowering the stamp duty charge can also go a long way in increasing demand and ensuring growth.

Real Estate has been on the forefront to seek infrastructure status. This will make available DIYs investments easy and cheap to borrow. Branding real estate as an industry will drastically change how developers access capital; it will allow them to access long term cheap money which will speed up the pace at which large affordable housing urban development projects are completed. There is also a need for a sound policy that removes bottlenecks that deal with regulations, pushes faster approvals for land and softens norms for acquiring land so that real estate projects can be completed and add value to the economy of India.

Economic survey tabled by the Finance Minister Nirmala Sitharaman on 31 January, 2025 revealed the economic performance within the last year along with the various challenges faced by different sectors. It also proposed some strategies to overcome the challenges being faced along and ways for further growth.

“The global economy exhibited steady yet uneven growth across regions in 2024. Inflationary pressures eased in most economies. However, service inflation has remained persistent. Although commodity prices have stabilised, the risk of synchronised price increases persists,” the survey said.

The central government is expected to double the minimum guaranteed pension under the Atal Pension Yojana (APY) to Rs 10,000, as per a report by Moneycontrol. The report suggested the proposal at the moment is in its final stages of approval, the policy change is anticipated to be announced in the upcoming Union Budget 2025 today.

The anticipated increase in the Atal Pension Yojana scheme is expected to offer financial stability and security to India’s vulnerable sections, as per the report.

Expanding taxpayers’ base, enhancing ease of administration, and simplifying compliances have been the areas of focus for the government in recent times.

The most significant of these has been the introduction of the simplified tax regime effective Financial Year 2020-21, followed by several changes to enhance the attractiveness of the same. For FY 2023-24, around 72% of taxpayers had opted for the simplified tax regime while 28% continued with the old tax regime as of 31 July 2024.

With the Union Budget 2025 approaching, we remain optimistic that the government will take steps to allow for the better realization and re-enforcement of transparency, effectiveness, and accountability in the real estate industry. The property inspection industry serves the critical purpose of fostering informed choices among buyers by exposing defects in structures or any safety features. We appeal to the policy makers to offer tax deductions on property inspection services would be helpful for both developers and buyers. Moreover, investing in the digitization of the sector, like land records, computerized property registration, unified property registries, and even the standardization of property inspection techniques, would enhance consumer trust and further investment in the sector. Given the greater urban sprawl and emergence of smart cities, it is imperative to place increasing emphasis on safe-sustainable real estate and place strong focus on efficient service provision for

property inspection. With such consideration, not only will prospective buyers be safeguarded, but will also enable the Indian real estate market to grow and gain credibility over the long run.

There are several important considerations that could greatly improve the financial well-being of senior citizens in India ahead of Union Budget 2025.  Financial aspect of retirement or old age needs to be planned with careful consideration. As the expenses increase and income stream stops, senior citizens need more financial stability than anyone.

CA and Financial Educator Sakchi Jain proposed some changes in government schemes that include increased interest rates on savings schemes like Senior Citizens Savings Scheme (SCSS) and Post Office Monthly Income Scheme (MIS), higher tax exemptions, and the extension of the Pradhan Mantri Vaya Vandana Yojana (PMVVY) scheme.

These measures will combat inflation, provide stable income for seniors, and increase their basic exemption limit. 

Additionally, the PMVVY scheme, which offers pension benefits, can be extended with higher investment limits, ensuring financial security for seniors.

Actor & BJP MLA Akash Dasnayak said ahead of the presentation of the Union Budget that, "I think the Budget will be presented keeping in mind all sections. It will have something for the youth, women, health and education. It will definitely be a populist budget...There will certainly be something new regarding infrastructure...New plans are in motion, as far as Railways are concerned..."  (ANI)

Ahead of the presentation of the Union Budget 2025, BJD leader Amar Patnaik highlighted the various challenges the Finance Minister will need to tackle in the Union Budget 2025. However Patnaik emphasised that the Budget is expected to be ‘growth’ oriented.

"The Budget this time is getting prepared under different circumstances, compared to the previous year. I think the economy is slowing down... The global geopolitical situation has resulted in  several economic stresses for countries like India and they will probably persist for some time. Protectionist policies may also keep on increasing which means exports will go down, imports will increase and therefore there will be an impact on GDP. Under these circumstances, the FM would be having a tough time in giving a Budget which is growth-oriented,” Patnaik said. (ANI)

REIT is a new market that has played a major role in the expansion of commercial real estate by attracting overseas capital. To further deepen this market, government policy should eliminate taxes on REIT earnings and dividend distribution. This will make it more attractive to the investors. Furthermore, the relaxation of FDI restrictions in residential and commercial real estate, especially in the form of townships and rental housing, will attract investment and foster massive infrastructure development. These measures will guarantee that the sector continues to remain a favourite for investors from both within and outside the country

Minister for Information Technology and Biotechnology of Karnataka Priyank Kharge said that he has zero expectations from the Union Budget. He also claimed that India is suffering from highest unemployment and from other such issues.

"Personally, I have zero expectations from this budget. We have seen over 10 years of Modiji's masterstroke, 'Modinomics'. And what has that led to? Highest unemployment, closure of SMEs and MSMEs, farmers protesting right at the doorstep of the parliament, start-ups have failed to take up, Make in India, Skill India and Digital India, all have remained on paper and just mere slogans. (Union Finance Minister) Nirmala Sitharaman, even for courtesy, because the people of Karnataka have voted for her twice,neither in the devolution of taxes, nor in the right share of taxes, and we are suffering because of 'Modinomics'" Kharge said. (ANI)

Indian Oil has decreased the price of a 19-kg commercial LPG Cylinder from Rs. 1804 to Rs. 1797 per cylinder in Delhi with effect from today.

The government ought to think about changing GST on properties being built from the current 5% to 3 percent so that homes become less expensive for purchasers. Also, permitting developers to claim input tax credit (ITC) will assist in lowering the total cost of the project and thus property prices. A carefully planned GST policy will bring more clarity in the industry and subsequently, more potential homebuyers will get into the market, which will lead to increased real estate activity.

Benchmark indices opened in the green ahead of the Union Budget 2025. The Sensex opened in the green at 76,888.89 levels and the Nifty opened at 23,296.75 levels

Looking at the biased attitude of the government towards new tax regime, increasing number of people opting for new tax regime and the fact that the limits of various deductions available under old regime have not been enhanced after introduction of new tax regime do not get shocked if the finance minister altogether scraps the old tax regime. Since the government wants you to report your actual income which is the basis of new tax regime there is more probability of it happening sooner than later.

The FM should do away with mandatory buying of annuity for 40% of corpus under NPS making 100% corpus withdrawal tax free. She should introduce separate deduction for repayment of home loan by taking it out from section 80C. Section 80 C and section 80D should be merged with higher limit of 3.50 lakh to compensate for inflation of all these years.

Relief for salary class with increase in standard deduction and possible increase in lower tax rate of 15% on new manufacturing units.

On Union Budget 2025, Congress leader Sandeep Dikshit says, "We have no expectations from the budget. They have been presenting it for 10-11 years and have done nothing substantial. We just need to see how many dimensions they brought to give relaxation to their friends, big capitalists... They may try to lure people through some promises as elections are there in Delhi..." (ANI)

Delhi: CEO and Secretary General of PHDCCI, Ranjeet Mehta says, "...We expect that there will be some kind of relief to get proper liquidity for MSMEs. Also, the middle class is expecting that there needs to be more money in their hands. We hope that the tax slabs will be rationalised and agriculture will also be one of the focus...Technology will be driving force behind the development of economy. So, we feel that there will be a huge focus on technology and innovation as PM has already said that there will be three pillars - innovation, inclusion and investment. We will see that there will be focus on these areas a lot..." (ANI)

Union Finance Minister Nirmala Sitharaman and MoS Finance Pankaj Chaudhary have reached Rashtrapati Bhavan to meet President Droupadi Murmu ahead of tabling Union Budget 2025.

Sanjay Mehta, Deputy Director General of IMC Chamber of Commerce says, "...Like every Budget of this government in the last 5 years, the first thing that will be discussed is Fiscal Discipline. FM has always emphasised on this in every Budget. Fiscal discipline will be the focus of this Budget. Then the focus will be on Agriculture, on farmers, on rural development, on employment and manufacturing, on CapEx, on infrastructure. These things are common in the Budget of last 10 years. We hope the same..." (ANI)

On Union Budget 2025, Congress MP Imran Masood says, "She (Nirmala Sitharaman) has been presenting the same thing for the last 5-6 years. She just presents, nothing is given. The poor, small traders, farmers get nothing. Youth, women, farmers, everyone is troubled... there is no talk on inflation ..." (ANI)

CEO of Asset Management at Welspun One, Sudeep Mehrotra says, "In the past 10 years, there has been a consistent increase in the infra spent by the government. And there has been increasingly more clarity in terms of how various components of infra are integrated to create the backbone of our economy. What's still to be seen is that as we grow year after year at 7, 8% and by 2047, reach the idea of Viksit Bharat, it's very important that some of the sectors which support the backbone are actually lead. They grow first and then the demand catches up..." (ANI)

Union Finance Minister Nirmala Sitharaman arrives at the Parliament, after meeting President Droupadi Murmu at Rashtrapati Bhavan. She will present Union Budget at the House, shortly.

Union Budget 2025: Economic expert Suryakant Shukla says, "The Budget will be presented in the Parliament shortly. There are many challenges before Union Finance Minister Nirmala Sitharaman because the growth has slowed down. This has lowered people's income and employment opportunities. The government will have to provide incentives for economic growth and strong treasury." (PTI)

Union Budget 2025: "There is no expectation from Budget. If anyone keeps any expectation from this government then they will get disappointed after a few days. There will be relief for Adani, Ambani and other top corporate houses of the country in the Budget," says Samajwadi Party leader Ram Gopal Yadav (PTI)

Ahead of presentation of Union Budget 2025, Shiv Sena (UBT) MP Priyanka Chaturvedi says: "I wish her all the best because she is going on to create a new record. I hope she sets a new record, a historic record to serve the people of this country and keep their interests in mind when she presents the Budget today, understands the responsibilities she has over the 1.4 billion people who are looking at this day in a very important way, because it changes their financial situation..."

Sheetal Kalro, Deputy Director General, IMC Chamber of Commerce and Industry says, "There are a lot of expectations with the Budget. This Budget will have a lot of focus on farmers, youth, women, common man and salaried employees...Government has always focussed on senior citizens, their loans, insurances, medical aid are taken note of. A lot of focus will also be on women..." (ANI)

Ahead of the presentation of the Union Budget 2025, the Sensex traded at 77,724.36 levels up by 964.55 points or 1.26 per cent and The Nifty traded at 23,561.15 levels up by 311.65 points or 1.34 per cent at the time of writing this post.

Union Minister Pralhad Joshi says, "Ever since economy of this country started being taken care of under the leadership of PM Narendra Modi, we have given pro-people, pro-poor, pro-middle class budget. It will be the same this time." (ANI)

PM Narendra Modi has left for Parliament building to attend the Budget Session

Union Minister Gajendra Singh Shekhawat says, "The Budget will be in continuity and will be for the welfare of the country, of the poor and will be a novel and strong step towards the resolve of making 'Viksit Bharat'..." (ANI)

As we await the Union Budget 2025, we are hopeful for policies that will support the growth of India’s co-working industry. Co-working spaces are helping startups, SMEs, and large businesses operate more efficiently with flexible and affordable solutions suited for today’s workforce. We urge the government

to offer tax benefits or subsidies for businesses using co-working spaces, as this would help even small and young firms scale up. Additionally, reducing GST on shared workspaces or introducing a more favorable tax structure for co-working providers would make the industry more competitive and accessible. With hybrid work models becoming the norm, government support in infrastructure and digital connectivity will be crucial. Strong policies in these areas can help the co-working industry create new jobs and contribute to economic growth.

The retail domain, specifically the SMEs remains under strain due to the highly intricate structure of GST. Simplifying the tax regime by having a single rate of GST across all categories would enhance compliance and decrease business overheads. Furthermore, subsidizing digital payments and providing tax waivers for MSME’s retailers who venture into e-commerce business would promote digital and financial inclusion. Given the increasing propensity of people buying goods online, the government must also come up with some policies that facilitates the smooth functioning of offline and online businesses alike so that the entire business ecosystem thrives.

In order for Indian retail business to reach its full potential, the government has to make investments in the infrastructure, logistics, and supply chain. The Organized multi-brand retail FDI policy has to be relaxed which, in return, will bring capital investment accustomed to modern structures of doing business and increase employment opportunities for people to spend. It is also important to build cold storage and warehousing, as well as optimize the last mile delivery for economic growth for both urban and rural markets. Accountable and responsible measures in control systems when it comes to increased energy consumption from operations efficiency is also a great push towards compliance and resiliency.

It is important to increase aid in the form of funding for the design and technology market, mainly for companies focused on enhancing user interaction with digital products. It is possible to achieve this through strategic investment into the UI/UX niche or through MSME credit guarantees to tackle design-driven MSEs’ barriers to growth. There is need for more investment in companies focused on user interface and digital change because there is a huge shortage of design and implementation innovation. And the credit gap of 20 to 25 lakh crore for design technology companies offering business interface solutions is considerably wider

The economy as a whole relies on Micro, Small and Medium Enterprises (MSME) due to the sizeable amount of metrics contributed like employment opportunities and gross domestic product. Still, affordable credit remains a significant issue. Budget deliberations must revolve around increasing the credit guarantee schemes, decreasing interest rates on MSME loans, and making it easier for borrowers to provide

collateral. Increasing the income tax exemption threshold for smaller businesses along with introducing tax measures for companies willing to adopt digital tools will go a long way in improving scale of operations and competition. The same will happen with a strong focus on the ease of doing business: faster approval and compliance processes in this area will be a game changer for the industry’s growth.

As India works toward developing 100 smart cities, the budget must allocate resources for tech-driven infrastructure, focusing on sustainability and efficiency. According to the Smart Cities Mission, over 40% of India’s population is expected to live in urban areas by 2030, which presents both challenges and opportunities. With the right infrastructure support, these cities can use IoT and AI technologies to address urban issues like congestion, waste management, and energy consumption, setting India apart as a global leader in smart city development.

MSMEs Seek Union Budget 2025-26 Focus on Compliance Relief, Export Incentives, and Boosting Consumer Spending for Balanced Growth

MSMEs are urging the Union Budget 2025-26 to prioritize reduction in compliance burdens, enhancing export incentives and expanding the PLI scheme to drive manufacturing growth. The industry also seeks tax reforms and better access to essential inputs like steel, aluminium and plastics. Speedier dispute resolution mechanisms are critical for improving competitiveness and unlocking Indian business potential in domestic and global markets.

However, the declining share of consumer spending in GDP is a pressing concern that demands attention. A strong focus on boosting consumer spending can stimulate demand across industries, encouraging production, investment, and job creation. This creates a virtuous cycle of growth, reinforcing the industrial ecosystem while complementing government-led initiatives. By nurturing consumer confidence and spending power, the economy can achieve more balanced and resilient GDP growth, driven by both public and private momentum.

CPI leader Annie Raja highlighted the need for increasing social sector spending amid increasing prices and rising unemployment.

"We expect and we demanded that spendings on social sector needs to be increased substantially whether on education or health. If I speak for women then women are passing through a very difficult situation because of uncontrolled price rise and unemployment. We expect the government to spend more money on food security." (ANI)

Budget 2025 may make history as there is a likelihood that the government will introduce a new direct tax law, according to recent media reports. At present, tax laws pertain to the Income Tax Act 1961. The proposed legislation will aim to simplify existing provisions, do away with redundant ones, and make the language easy to understand for the general public. Read More

Union Finance Minister Nirmala Sitharaman will present the budget for FY2025-26 on February 1, 2025. The last budget did not offer specific tax relief to seniors and while the government launched the Ayushman scheme this year for all seniors aged 70 and above, there is more to be done.

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The Association of Mutual Funds In India (AMFI) submitted its proposals to the Ministry of Finance ahead of the presentation of the Union Budget for 2025. The AMFI has proposed that a new asset class called ‘Debt Linked Savings Scheme’ should be introduced in India. Read More

Congress MP Jairam Ramesh says, "Budget has an intent, content - it both make the extent of the budget. We don't have much expectations from the budget that some big announcements will be made and that will encourage private investment... Let's see if there will be some tax relaxation for the middle class or not. Also, we need to see if the investors get some relaxation from the 'tax terrorism'. We have demanded some reforms in GST. Modi 3.0 is being discussed all over the world, let's see when GST 2.0 comes." (ANI)

The Union Cabinet, chaired by Prime Minister Narendra Modi on Saturday ascended the Budget for the year 2025 ahead of its presentation in the Parliament. Earlier Union Minister Amit Shah, Rajnath Singh, Gajendra Singh Shekhawat and Pralhad Joshi arrived at the Parliament. (ANI)

Led by Samajwadi Party, Opposition MPs created uproar in Lok Sabha demanding discussions on Mahakumbh stampede tragedy.

Together we embark on journey to unlock our potential for greater prosperity. Indian economy is fastest growing among all developing economies. Viksit Bharat encompasses zero poverty, 100 pc quality education, comprehensive healthcare: FM Sitharaman

Union Finance Minister Nirmala Sitharaman says, "Our economy is the fastest growing among all major economies. Our development track record for the past 10 years and structural reforms have drawn global attention. Confidence in India's capability and potential has only grown in this period. We see the next 5 years as a unique opportunity to realise sabka vikas, stimulating balanced growth of all regions."

Dhan Dhanya Krishi Yojana aims to enhance agricultural productivity, crop diversity, augment post harvest storage, facilitate availability of long-term and short-term credit: FM Sitharaman

In this Budget, the proposed development measures span 10 broad areas, focusing on poor, youth, annadata (farmer) and nari (women), spurring agricultural growth and productivity, building rural prosperity and resilience, and taking everyone together on an inclusive growth path, boosting manufacturing and further Make in India, supporting MSMEs, enabling employment-led development, investing in people, economy and innovation: FM Sitharaman

A national mission of high yielding seeds will be launched. Urea Plant to be set up in Assam to further augment urea supply. Plant with annual capacity of 12.7 lakh metric tons to be set up at Namrup, Assam, 3 dormant urea plants in the Eastern region had been reopened. Makhana Board to be set up in Bihar. To improve production, processing, value addition and marketing of makhana. Kisan credit card to sanction short-term loans for 7.7 crore for fishermen and dairy farmers. India Post and India Post Payment Bank to be repositioned to act as catalyst for rural transformation. India Post will also be transformed as a large logistics platform: FM Sitharaman

Making it Easier for MSMEs to get Loans. Credit guarantee cover for MSMEs to be significantly enhanced. Customized Credit Cards for Micro Enterprises to be introduced: FM Sitharaman

A new scheme will be launched for 5 lakh lakh women: SC/ST, first-time entrepreneurs. This will provide term loans up to Rs 2 crore in the next 5 years: FM Sitharaman

Emphasis on improving the rural economy, especially agriculture and the welfare of farmers, bodes well for overall economic growth, specially companies and funds focusing on rural economy.

Cleantech manufacturing will improve domestic value addition and build our ecosystem for solar PV cells, EV batteries, motors and controllers, wind turbines, very high voltage transmission equipment, grid-scale batteries.

Saksham Anganwadi to provide nutrition to more than 8 crore children, 1 crore pregnant women and lactating mothers and around 20 lakh adolescent girls across Nort-east regions.

For this, there is a special opportunity for the people of Bihar. A Makhana Board will be established in the state to improve production, processing, value addition and marketing of Makhana. The people engaged in these activities will be organised into FPOs. The Board will provide hand holding and training support to Makhana farmers and will also work to ensure they receive the benefits all relevant government schemes. (PTI)

Our govt will not launch a six-year mission for self-reliance in pulses, with a special focus on Tuar, Urad and Masoor... Central agencies such as NAFED and NCCF will be ready to procure these three pulses as much as offered during the next four years from farmers who register with these agencies and enter into agreements," says Union Finance Minister Nirmala Sitharaman. (PTI)

Agricultural reforms aim to strengthen supply chains, promote balanced nutrition, and enhance food security, indirectly curbing long-term food inflation. This will support lower yields, boosting financial sector resilience to better sustain the broader economy.

The repurposing of India Post into a major logistics organisation will create a public marketplace platform, which can be leveraged to promote the sachetisation of financial services, thereby broadening financial coverage.

The Finance Minister announced that Kisan Credit Cards (KCC) will continue to facilitate short-term loans for 7.7 crore farmers (fishermen and dairy farmers). The loan limit under the modified interest subvention scheme will be increased from Rs 3,000 to Rs 5,000 for loans taken through the KCC. "This would provide greater financial support for agricultural production," the FM said.

PM Svanidhi scheme has benefitted more than 68 lakh street vendors. The scheme will be revamped with UPI linked credit cards and support from banks.

The shipbuilding financial assistance policy will be revamped to address cost disadvantages. This will also include credit notes for shipwrecking in Indian yards to promote the circular economy, large ships above a specified size will be included in the infrastructure harmonized master list. shipbuilding clusters will be facilitated to increase the range, categories and capacity of ships. This will include additional infrastructure, a facilities, skilling, and technology to develop the entire ecosystem. Maritime development fund for long term financing, for the maritime industry, a maritime development fund with a corpus of 25,000 crore rupees will be set up. This will be for distributed support and promoting competition. This will have up to 49% contribution by the government and the balance will be mobilized from ports and from private sector.

Modified Udaan scheme will be launched to enhance regional connectivity to 120 new destinations and carry 4 crore passengers in next 10 years. Udaan regional connectivity schemes, which has enabled 1.5 crore middle class people to meet their aspirations for speedier travel. The scheme has connected 88 ports, airports and operationalized 619 groups. Inspired by that success, a Modified scheme will be launched to enhance regional connectivity, to 120 new destinations and carrying full court passengers in the next 10 years. Four core additional passengers in the next 10 years, the scheme will also support helipads and smaller airports in hilly aspirational and northeast regional districts.

· Top 50 tourist destination sites in the country to be developed in partnership with states through a challenge mode

· MUDRA loans for homestays to be provided

· Special focus on destinations related to the life and times of Lord Buddha

· Medical Tourism and Heal in India to be promoted in partnership with the private sector

Finance Minister Nirmala Sitharaman says, "Nuclear Energy Mission for Viksit Bharat. Development of at least 100 gW of Nuclear energy by 2047 is essential for our energy transition. For active partnerships with the private sectors towards this goal, amendments to the Atomic Energy Act and Civil Liability for the Nuclear Damage Act will be taken out.." (ANI)

· National Geospatial Mission to be launched to develop foundational geospatial infrastructure and data

· Investing in Research, Development and Innovation ₹ 20,000 crore for private-sector driven Research, Development and Innovation initiative announced in the July Budget

New Income Tax Bill To Be Introduced Next Week, Says FM Sitharaman

The FDI limit for the insurance sector will be raised from 74 to 100 per cent. This enhanced limit to will be available for those companies which invest the entire premium in India.

Finance Minister Nirmala Sitharaman says, "A digital public infrastructure - 'Bharat Trade Net' (BTN) for international trade will be setup as a unified platform for trade documentation and financing solutions. The BTN will be aligned with international practices..."

Moving towards higher MSME value additions, this budget's MSME focus is exactly what the sector has needed. Increasing the credit cover is going to make banks more comfortable and willing to lend to micro enterprises, which may change the lending patterns of smallish businesses completely.

Finance Minister Nirmala Sitharaman says, "The revised estimate of the total receipts other than borrowings is Rs 31.47 lakh crore of which the net tax receipts are Rs 25.57 lakh crore..."

- Remove 7 tariff rates over and above 7 tariff rates removed in 2023-24 budget. After this only 8 tariff rates will remain. Apply appropriate CESS. Levy not more than one CESS charge.

- Those suffering from Cancer, chronic or other severe diseases; I propose to add 36 life-saving drugs and medicines to the list of medicines fully exempted from basic customs duty.

- Fully exempt cobalt powder, lithium battery scrap, zinc, lead and 12 other minerals to promote manufacturing in India

- The fiscal deficit is estimated to be 4.4% of the GDP

- The FDI limit for the Insurance Sector will be raised from 74 to 100 percent. This enhanced limit will be available for those companies which invest the entire premium in India. The current guardrails and conditionalities associated with foreign investment will be reviewed and simplified

- As a part of a comprehensive review of customs rates structure announced in the July 2024 budget, I propose to remove 7 tariff rates - this is over and above the tariffs removed in the 2023-24 budget

- Time-limit of two years to be fixed, extendable by a year, for finalizing provisional assessment under the Customs Act

- Incentivizing Voluntary Compliance: New provision to be introduced which will enable importers or exporters, after clearance of goods, to voluntarily declare material facts and pay duty with interest but without penalty

- New bill will be clear and direct in text with close to half of the present law

- Will be simple to understand, leading to tax certainty and reduced litigation

Finance Minister Nirmala Sitharaman says, "In the budget of July 2024, the delay of the payments of the TDS up to the due date of filing statements was decriminalised; I propose the same from the TCS provisions as well..."

With many start-ups today looking for domestic sources for funding, this increased Fund of Funds will come as a pleasant surprise. Proposed deep-tech startups as well as many others in new sectors will particularly benefit from this major funding gap bridge which is estimated at ₹10,000 crore - - Saurabh Tyagi, Co-Founder and CEO of PropChk

The latest addition of ₹10,000 crore to the Fund of Funds is a clear indication of the government’s unyielding support for India’s burgeoning startup ecosystem. This new addition will ensure that there is enough funding available for new age startups which will be proposed now that the existing FoF has already secured funding commitments over ₹9 lakh crore - Ashish Agarwal – Co-Founder, Enzyme Office Spaces

Finance Minister Nirmala Sitharaman says, " I am now happy to announce that there will be no income tax up to an income of Rs 12 lakhs."

Viewpoint Budget 2025: On the increase in the TDS threshold and rationalization of TDS rates proposed in Union Budget 2025, Sandeep Chilana, Managing Partner, CCLaw, says - “The increase in the TDS threshold for various payments is a welcome move to ease the compliance burden on smaller businesses and individuals. By raising the threshold for TDS on rental income, professional fees, and other such payments, the government aims to simplify tax filing for taxpayers with smaller incomes or fewer transactions. At the same time, the planned rationalization of TDS rates—by streamlining various categories into fewer, more uniform slabs—will significantly reduce confusion and compliance complexity across different sectors.”

"The increase of limit from 74% to 100% should not just be viewed as an incremental 26 percentage points. This is rather a paradigm shift. This is expected to bring in more players and more capital from existing players supporting IRDAI’s vision of “Insurance for all by 2047.” In addition to brining in much-needed FDI into the country, this will also bring in better technical capabilities and new propositions for the overall benefit of the customers. As the economic survey pointed out, out of the total FDI received in Apr-Sep’24 period, 12% came into Insurance sector. This was a result of the previous increase in FDI limit from 49% to 74% in 2021." - Balamurugan Shanmugam, Chief Investment Officer, Aviva India

- Slabs and rates being changed across the board to benefit all tax-payers

- New structure to substantially reduce taxes of middle class and leave more money in their hands, boosting household consumption, savings

Rs 0-4 lakh - Nil

Rs 4-8 lakh- 5%

Rs 8-12- 10%

Rs 12-16- 15%

Rs 16-20-20%

Rs 20-24- 25%

Above Rs 24 lakh- 30%

The new changes introduced in the Income Tax Bill will profoundly affect the structure of taxation in India. The Government is seriously attempting to simplify tax compliance by eliminating provisions with clear intent and efficiency, lowering them to just under half. Taxpayers are getting more choices as the limit for submission of the updated return is no longer 2 years, but 4 years. By raising the new tax limit basic exemption limit to ₹12 lakh, the government is clearly focused on supporting the middle class. The TDS and TCS provision rationalization: new limits of ₹10 lakh for LRS remittances and rent TDS of ₹6 lakh are common sense changes in tax policy - Siddharth Maurya, Founder & Managing Director of Vibhavangal Anukulakara Private Limited

The Union Budget 2025 marks a paradigm shift in income tax policies, making the tax structure simpler and reducing compliance burdens. The government's focus on easingcompliance—such as extending the registration period for charitable institutions and increasing tax relief for self-occupied properties—indicates a pro-growth and taxpayer-friendly approach. A revised tax structure with a 'Nil tax' slab up to ₹12 lakh, considerable deductions for senior citizens and rental income, will empower the middle class by increasing disposable income and thereby fostering economic growth. With an infrastructure that is set by encouraging ease of doing business and smoothening of financial regulations, this budget paves the way for continued growth, savings, and investments, of course, leading to strong prospects for businesses and individuals - Abbhinav R Jain, Co-founder & Chief Financial Officer, AdCounty Media

The new Income Tax Bill places a weighted focus on simplification and refinement while embodying the necessary provisions of the previous Bill which shows mature consideration of the tax reforms. The new time limit set for filing updated returns has been evolved to three extended years and this gives an appropriate buffer for the taxpayers to amend their mistakes and compliance matters. The rationalization of TDS and TCS rates with new adjustments to the thresholds is bound to make the tax collection procedures more efficient. Increases in the threshold of LRS remittances and rent TDS claim shows sensitivity to the economic realities of today. The removal of TCS for education loans under 10 lakh is an act which further emphasizes the goals of government to promote education - Gaurav Singh Parmar, Associate Director, Fincorpit Consulting

From the above, it is clear that there is delineated understanding of the taxpayer’s needs. The kudos goes to the reform where the tax provisions were altered, and the effectiveness of the reforms was retained. The modification will also tremendously benefit the middle class as the new batched exemption limits of ₹ 12 lakh is a substantial increase. The rationalization of the TDS and TCS requirements, together with the increase in the thresholds for the different transactions, is an indicator of the desire to move towards a better organized tax administration. As a result, the estimate for the modification of the return lodgment period to four years demonstrates some leniency in the tax compliance obligations. There is thereby a taxpayer friendly and yet an efficient arsenal for taxation - Aman Gupta, Director of RPS Group

- To create opportunities in rural areas to make migration an option, not a necessity - To catalyse enterprise development, employment and financial independence for rural women - To accelerate creation of new employment and businesses for young farmers and rural youth

The total tax benefit of slab rate changes and rebate at different income levels can be illustrated with examples.

• A tax payer in the new regime with an income of ₹12 lakh will get a benefit of ₹80,000 in tax (100% of tax payable as per existng rates will be exempt). [The effective income tax rate will be 0%]

• A person having income of ₹16 lakh will get a benefit of ₹50,000 in tax. [The effective income tax rate payable will be just 7.5%]

• A person having income of ₹18 lakh will get a benefit of ₹70,000 in tax. [The effective income tax rate payable will be just 8.8%]

• A person having income of ₹20 lakh will get a benefit of ₹90,000 in tax. [The effective income tax rate payable will be just 10%]

• A person with an income of ₹25 lakh gets a benefit of ₹1,10,000. [The effective tax rate will be just 13.2%]

• A person with an income of ₹50 lakh also gets a benefit of ₹1,10,000. [The effective tax rate will be just 21.6%]

The launch of the ₹5 lakh scheme exclusively to women, SC and ST is an impactful measure towards economic inclusiveness. This together with enhanced MSME credit limits offers women entrepreneurs a powerful combination. These initiatives will assist in closing the gender gap in business ownership and economic participation - Gunjan Goel, Director, Goel Ganga Developments.

The proposed increase in the Foreign Direct Investment (FDI) limit to 100% and the introduction of health insurance for gig workers are transformative steps that will not only enhance market competitiveness but also ensure financial safety for the underserved population. 100% FDI will attract substantial foreign capital, which will lead to improved technological interventions and advancements in the country. With international competitors entering the country, consumers can expect better products and services, empowering them with more choices tailored to their needs. Additionally, the provision of health insurance specifically for gig workers addresses a significant gap in coverage for this growing workforce segment, ensuring that they have access to essential healthcare services and improving overall public health outcomes. These initiatives signify a commitment to modernizing India's insurance landscape, positioning the sector for an inclusive future - Aatur Thakkar, Co-founder and Director of Alliance Insurance Brokers

The increase of limit from 74% to 100% should not just be viewed as an incremental 26 percentage points. This is rather a paradigm shift. This is expected to bring in more players and more capital from existing players supporting IRDAI’s vision of “Insurance for all by 2047.” In addition to brining in much-needed FDI into the country, this will also bring in better technical capabilities and new propositions for the overall benefit of the customers. As the economic survey pointed out, out of the total FDI received in Apr-Sep’24 period, 12% came into Insurance sector. This was a result of the previous increase in FDI limit from 49% to 74% in 2021: Balamurugan Shanmugam, Chief Investment Officer, Aviva India

CII President Sanjiv Puri says that this is a very welcome step, and one that CII had also been suggesting for, especially considering that consumption is soft, with 60 per cent of the economy depending on it. Relief for the middle class is much needed, as it will help boost consumption, leading to more investment and job creation. This will set a positive cycle for the economy. Overall, it's a very good budget that builds on the strategies of past budgets, focusing on inclusive and sustainable growth. (PTI)

Contributing to India's goal of achieving ‘Insurance for All by 2047,’ the decision to raise FDI in insurance to 100% will drive greater capital infusion into the sector. This move will not only deepen investments but also foster innovation, enhance competition, and accelerate insurance penetration. We welcome this progressive reform, which aligns with our commitment to delivering greater financial security to Indians. With strengthened investment, the industry can further drive digital transformation, develop customer-centric solutions, and expand its reach to those who need it most – Prashant Tripathy, MD & CEO, Axis Max Life Insurance

A significant turning point for the real estate sector has been marked by the government's recent announcement, with over 88 lakh homes completed, and the launch of PMAY-U 2.0 in September 2024 to assist an additional one crore households. This program is expected to boost economic growth, encourage public-private collaborations, and promote the housing industry. Developers with strong financial backing are well-positioned to support this revolutionary process by providing high-quality housing options that complement the 'Housing for All' national objective. This initiative, which addresses the urgent demand for housing in metropolitan and tier 2 markets, is anticipated to be well received by the people. It is expected that the government's dedication to offering long-term housing options would improve people's quality of life - Mohit Malhotra, Founder & CEO, NeoLiv

The announcements around easing TCS are a welcome move and align with the government’s objective to reduce the tax compliance burden on individual investors. Removing TCS on education-related remittances funded through loans and raising the TCS threshold under the Liberalized Remittance Scheme from ₹7 lakh to ₹10 lakh is a smart move and helps simplify tax compliance for individuals. These changes not only make it easier for students and families managing educational expenses abroad but also offer greater flexibility for investors diversifying into global markets, including US stocks. The proposal to make income up to ₹12 lakh tax-free is a game-changer, offering substantial relief to the middle class - Nikhil Behl, Co-Founder & CEO, Stocks at INDmoney

The Finance Bill seeks to put an end to the controversy around the characterisation of income earned by Category I / II Alternative Investment Fund (“AIF”) as ‘capital gain’ vs ‘business income’. It is proposed that income arising on transfer of shares and securities shall be treated as capital gain which will be exempt from tax for the AIF and taxed directly in the hands of investors on a pass through basis - Rahul Jain, Director, Khaitan & Co

Union Budget 2025 aims to drive transformative reforms across six domains, envisioning a Viksit Bharat with quality education, and affordable, comprehensive healthcare. She emphasized the budget's focus on inclusive growth and its potential to position India as a global leader in technology through investments in AI, cloud computing, 5G, and cybersecurity. This budget aligns with Atal Incubation Centre (AIC BIMTECH) mission to transform India’s startup ecosystem by providing unparalleled support and resources to entrepreneurs, fostering innovation, driving economic growth, and building a sustainable, thriving startup community for a better future - Prabina Rajib, Director, Birla Institute of Management Technology (BIMTECH) Greater Noida

Excellent budget with focus on very important sectors of the economy MSME, infrastructure, Agriculture and most importantly rationalising taxes to promote saving, investment and consumption led growth. Reforms such as liberalising 100% FDI in the Insurance business will go a long way in improving the sentiments among foreign investors and attracting investments into India - Sadaf Sayeed, CEO, Muthoot Microfin Limited

Those with income upto Rs 12 Lakhs have been exempted from paying tax. This is good. A little portion of the money would go towards consumption and the profitability of companies would also increase. The money that is saved can also enter the stock market through investment. So, this should be called a good Budget for the stock market. This was one of FM's shortest speeches. Several of the important things came to be known only later. So, as they got to know the numbers, the market started rising - Ashish Kumar Chauhan, NSE MD (ANI)

This Budget is delivered on the Triveni Sangam expectations. The first expectation was a reduction in fiscal deficit, 4.4% for next year is lower than market expectation of 4.5%. The second expectation was boost to urban consumption through tax cuts. Rs 12 Lakhs exemption limit was not expected by the market. The third expectation was to boost capital expenditure. While this year's CapEx is revised down by about Rs 1 Lakh Crore, next year's target at Rs 11.2 Lakh Crore is about 10%. But more importantly, along with PSUs, that number is up about 17%. So, essentially CapEx has been increased, consumption has been boosted and fiscal deficit has been contained. That's the Triveni Sangam which the market wanted...The market investment probably will shift from infrastructure and investments to consumption. But at the end of the day, investment with long term horizon - Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company (ANI)

On Union Budget 2025, Congress MP Karti Chidambaram says, "Look at the details before we can really give an intelligent comment about the budget. Because the budget is always the devil is in the details and really can't make up our minds one way or the other merely by hearing the finance minister's speech. There has been a slew of new proposals but one must also see what happened to the proposals announced in the previous budget. Some grand schemes were announced in the previous budget as well. So what is the status of them? And now another slew of schemes have been announced, which will all, even in their own words, only get fulfilled well after the culmination of this parliament in 2029. So we'll have to see the efficacies of all these schemes, the previous schemes in this... It's quite natural that every time a state comes up for election, it seems to be, it gets a disproportionate amount of attention. But that seems to be the political direction in which budgets are made these days." (ANI)

Market Expert Ajay Bagga says, "It was a neutral budget for the markets, good for consumption stocks, good for auto. We are seeing that reaction coming in. Personal tax rate jiggled for the middle class. That was a good thing. Overall, a lot of anticipation with the Budget. I think the Govt has delivered within the fiscal constraints, fiscal deficit coming down is positive...Overall, I would say a neutral budget, at least no more damage down on capital gains and other taxes. Now the focus will shift to RBI next week, expecting a rate cut on February 7. I think global and RBI will become more important. The budget is now a done event." (ANI)

On Union Budget 2025, Haryana CM Nayab Singh Saini says, "I appreciate the first budget of the continuous third term of the government. This budget is for the poor, youth, farmers of the nation, empowerment of women, employment of youth... This will provide benefits and new employment opportunities to the agriculture sector and industry of Haryana... My farmers will benefit from the decision to increase Kisan Credit Card limit to Rs 5 lakhs... I appreciate decision to provide loans to cotton farmers for up to Rs 5 lakhs at low interest, raise the credit limit for small traders to Rs 5 lakhs, provide loans to Rs 2 crore to new industries, Rs 10 crore to MSMEs that will create employment opportunities... The common man will benefit from increasing the tax relief limit up to Rs 12 lakhs..." (ANI)

Union Minister Hardeep Singh Puri says, "It was an excellent budget. The middle class has been exempted from the income tax on income of up to Rs 12 lakhs and many such provisions are there. Unless there is One Nation One Election, there will be elections in one state or another but the budget is also an annual exercise." (ANI)

Congress MP Shashi Tharoor says, "I think frankly the applause you heard from the BJP benches was for the middle-class tax cut. We look at the details and that may be a good thing. So if you have a salary you may be paying less tax. But the important question is what happens if we don't have a salary? Where is the income going to come from? For you to benefit from income tax relief, you actually need jobs. Unemployment was not mentioned by the Finance Minister... Ironic that the party that wants one nation, one election is actually using each election each state each year to give them more freebies. They may as well have multiple elections so they can get more applause from their allies." (ANI)

This year’s budget marks a distinct shift from incremental capex push towards a direct attempt to boost consumption by giving tax relief to the middle class. Incremental capex was not yielding follow through employment and consumption increase and hence maintained at the same levels. This will help towards boosting urban consumption to an extent. Capex intensity seems to be moving towards a more labor-intensive SME sector as opposed to the significant Infra push of recent years.

The budget has announced essential measures to support consumption and boost smaller enterprises. The ease in regulatory burden for MSMEs and consumption boost by altering the tax rates are key positives. While persistence on the fiscal consolidation path is positive, moderate capital expenditure growth is a negative.

The fact that the government maintained fiscal prudence is fundamentally positive for the bond market. The central government's debt to GDP is expected to steadily decline from 57.1% in FY 2024–2025 to less than 50% by FY 2030–2031 according to the medium-term fiscal forecast. This suggests that the fiscal deficit be reduced by at least 0.2% of GDP annually after FY26. Besides lower fiscal deficit numbers, the market borrowing estimate for FY26 is a little higher than what was expected. Additionally, the government has set a higher target of Rs. 2.5 lakh crore to switch near maturity bonds into longer maturity bonds – effectively increasing the supply of long-term bonds in the year. The bond market would be somewhat disappointed as a result, and yields might go up next week. However, since overall demand-supply dynamics are still favorable, we anticipate that the negative effect on the bond market will be minimal and transient. We continue to see strong demand for government bonds from domestic investors like banks, insurance companies and pension funds. There is also a possibility of significant RBI buying in FY26 to provide durable liquidity to the banking system. All in all, we expect positive momentum in the bond market to continue with long-term yields declining further.

This budget will increase savings, investment, consumption and growth rapidly and congratulates Finance Minister Nirmala Sitharaman and her entire team for this People's budget - PM Modi

The budget has the right intent - to boost private investment and exports. It's a cliche but the devil will be in the details and the implementation. Where the details are known - like rationalisation of customs duty and extension of safe harbour rules for electronics manufacturing - they are directionally correct - Rahul Ahluwalia, Co-Founder at Foundation for Economic Development

A budget is often like an iceberg. What we end up focusing on mainly is tax proposal which is just 10-15% of the story. However, what could be truly game changer is hidden beneath. In this budget announcements around exports mission as well as a deregulation task force are very interesting. If the deregulation task force does manage to push through some radical reforms in its one year time frame, we could finally unleash investments and exports that we badly need for growth and jobs - Piyush Doshi, Operating Partner at Foundation for Economic Development

Increasing FDI limit from 74% to 100%, with an indication towards revisiting extant conditions around FDI, will attract foreign insurers. While we wait for the fine print, investing 100% of premiums in India benefits all stakeholders and is not at all a deterrent. Additionally, making proceeds of all insurance policies, issued by IFSC insurance offices, tax free at maturity under Section 10(10D); will boost new business from these offices - Kailash Mittal, Partner, Financial Risk Management and Head-Insurance & Head-Actuarial, KPMG in India

Prime Minister Narendra Modi says "Today is an important milestone in India's development journey. This is the budget of aspirations of 140 crore Indians. This is a budget that fulfils the dreams of every Indian. We have opened many sectors for the youth. The common citizen is going to drive the mission of Viksit Bharat." (ANI)

Naveen Aggarwal, Partner, Tax, KPMG in India: Budget 2025-26 sets a clear path for India's economic empowerment, with a strong focus on reforms and investments to drive exponential growth. The continued outlay in capital expenditure will give a major boost to infrastructure development, job creation, and overall economic growth. Thought out initiatives across sectors such as tourism, manufacturing, power, energy, aviation, agriculture, etc., coupled with enhanced funding for startups, MSMEs’ will drive ingenuity, innovation will amplify India’s vantage point as an attractive investment destination.

The structural reforms for the non-financial sector and the investment-friendly index for states are welcome steps to enhance competitiveness and ease of doing business. Measures like FDI relaxation in insurance, fast-tracking merger of companies and further thrust on decriminalization of regulations signals a progressive shift towards trust-based governance and reducing compliance burdens for businesses. With a new tax bill on the horizon, the 'trust first, scrutinize later' approach is a promising move that will be crucial in sustaining India's growth momentum and reinforcing investor confidence.

Looking ahead, as the country navigates global uncertainties, this budget will play a crucial role in shaping the narrative for Viksit Bharat.

Parizad Sirwalla, Partner and Head, Global Mobility Services, Tax, KPMG in India: In line with expectations, Budget 2025 makes the New Tax Regime further attractive for all taxpayers. Key changes include restructuring tax slabs and enhanced tax rebates [resulting in no tax liability for income up to INR 12 lakh for individual not having capital gains]. These measures granting significant relief for all taxpayers are clearly aimed at leaving more net disposable income to encourage consumption.

Individual taxpayers making foreign remittances, including for education purposes, receive a cash flow boost through rationalized TCS provisions. Even senior citizens will have better cash flow as interest income threshold for TDS applicability has been doubled from existing limit of INR 50,000. For homeowners, the conditions to qualify the property as self-occupied, and hence NIL value, has been liberalized to cover all cases where the owner of the property cannot occupy the same.

The Hon. FM has promised that A new Income Tax Bill will be unveiled next week with the intent of simplifying the tax system and reduce litigation.

Welfare of gig and platform workers, introducing healthcare and social security benefits, e-Shram portal registration, and identity cards to formalize their employment status are the other focus areas. Streamlined e-visa facilities and fee waivers for select tourist groups aims to boost tourism, showcasing a holistic approach to economic revitalization.

This budget definitely endeavors to take steps to help the middle class and attempts to reinforce confidence and optimism.

Sunil Badala, Head of Tax, KPMG in India - “Recognizing tax as one of the six wheels of transformation towards 'Viksit Bharat 2047', this budget highlights the government's commitment to economic growth. All expectations highlighted by KPMG’s industry wide survey seem to have been catered to in this budget especially rationalization of TDS/TCS provisions, simplification of laws for tax certainty, reforms for reduced tax litigation and timeline for release of the new Direct Tax Bill. In line with the Economic Survey, this budget aims to position India as a global business hub by encouraging foreign investments with targeted tax benefits and a streamlined regulatory environment. Key initiatives include revamped KYC processes, a light-touch regulatory framework, and reforms in transfer pricing and safe harbor rules with focus on enhancing ease of doing business. Notable tax reforms include increase in personal income tax thresholds & slab wise reduction in rates, extended tax benefits for certain IFSC units, allowance of 100% FDI in the insurance sector with certain conditions and launch of a fund of funds for startups. The budget also focuses on inclusive growth, offering major tax breaks to the middle class, encouraging them to opt for new tax regime, to senior citizens, startups, and MSMEs, while boosting foreign investments.”

The Union Budget 2025 reflects the Government’s vision for moving towards a stronger and more resilient economy. The focus on tax rationalization and people skilling will spur consumption and economic growth. We appreciate the Government’s commitment to enhance productivity in agriculture, support MSMEs, boost manufacturing and secure energy supplies. Specifically, the announcement made on removal of Basic Customs Duty on waste and scrap of metal commodities like Copper, Lead, Zinc and others has the potential to boost the circular economy, enhance raw material supplies and support domestic manufacturing - Praveena Rai, MD & CEO, MCX

Vamsi Krishna UV, CEO, StoxBox: Given the current market conditions and the government's strong push for economic growth, the Union Budget 2025 brings a renewed sense of optimism for the stock market. The focus on infrastructure, innovation, and fiscal prudence will not only drive domestic consumption but also attract significant foreign investment. As we enter an era of digitalisation and sustainable growth, this budget positions the Indian capital market as an increasingly lucrative space for both investors and businesses alike.

PR Sodani, President, IIHMR University said, "With a focus on establishing 5 National Institutes for skilling, the Union Budget sets the foundation for improved employability. As a dedicated institution in India's health management sector, we believe the announcement for Centre of Excellence for AI in Education will shape healthcare management professionals who are parallel with global advancements in the Indian healthcare landscape. This will cater to the mushrooming demand for skill-based education, digital learning capabilities, micro credentialing, and global partnerships. The launch of New Fund of Funds with expanded scope along with fresh fund of 10,000 crore rupees will reshape the Indian start-up ecosystem and pave the way for an employment- provider society."

Uttar Pradesh CM Yogi Adityanath says, "Under the vision of PM Modi, the finance minister has tabled the union budget 2025 today. This budget will take forward and fulfil the steps taken towards the Viksit Bharat. PM Modi has categorised this budget into four parts. Under the leadership of PM in the last 10 years, the economy has developed and with this budget, it will grow further. The middle class will get several benefits, which is a welcome step. It is an important step that in the next three years, all the hospitals will be given cancer centres. A state like Uttar Pradesh will get the most benefit from this. The establishment of a Center of Excellence in Artificial Intelligence near the Office of the Chief Minister will give global recognition to our youth. We welcome the announcement of the Pradhan Mantri Jan Dhan Yojana for the farmers. 1.75 crore farmers in the country will benefit from this scheme. Uttar Pradesh will be the state with the maximum benefit of this scheme through the Kisan Credit Card. The announcement of increasing the limit of this credit card from three lakhs to five lakhs is also commendable. The budget is taking the country forward at a fast pace on the resolution of making the country a five-trillion-dollar economy. The budget is to take the vision of the Prime Minister forward with speed. In the third phase, this shows three times the speed." (ANI)

Budget walked the talk on fiscal consolidation without losing sight of the much-needed consumption boost needed to stimulate economic growth. Government has been doing heavy lifting on public capex. Now, spurring consumption by putting more money in the hands of taxpayers is a step in the right direction. Government’s intention of investing in economy, people and innovation was the need of the hour to harness India’s demographic edge. Set-up of Fund of Fund aimed at start-ups, along with a focus on MSMEs fosters entrepreneurship and could transform India from a nation of job-seekers to job-creators. Simplification of tax structure and ease of compliance should aid in investor confidence and stimulate both, domestic and foreign investments. While short-term volatility could be par for the course due to the current global economic backdrop, the long-term direction rooted in policy prudence and support for growth should bolster Destination India’s credentials for foreign and domestic investors alike - Navneet Munot, MD & CEO, HDFC Asset Management Co. Ltd.

Finance Minister Nirmala Sitharaman addressed the Post Budget conference says, "One thing which I certainly would like to highlight is responding to the voice of the people, which is what Prime Minister Modi is known for in his administration. It's a very responsive government and as a result, the income tax simplification which I announced in July is already completed in its works and we shall bring the bill in the next week...So if we are talking of reform inclusive of taxation, the work is done. This budget also speaks about rationalization and customs." (ANI)

Union Finance Minister Nirmala Sitharaman says, "There is no reduction in the public spending on capital expenditure. We continue to place emphasis on the multiplier effect that capital expenditure done by government has shown has sustained us. We continue on that, and with all this, our fiscal prudence has been maintained..."

Harsha Vardhan Agarwal, President of Federation of Indian Chambers of Commerce and Industry (FICCI) in a press conference says, "National Manufacturing Mission has been announced, I think which is a very welcome step, though we have to look for details. Export Promotion Mission has been announced, which will help. A lot of announcements were there for MSMEs, which will again help in the area of manufacturing, in some of the labour intensive areas, like toys, tourism, footwear, leather, the govt has announced some initiatives, again we need to wait for details, but all these are in positive direction." (PTI)

Tarun Chugh, MD & CEO, Bajaj Allianz Life Insurance - The Union Budget has clearly focused on driving consumption led growth and foster inclusive development. A key highlight is the increase in the FDI limit in the insurance sector from 74% to 100%, a move set to bring in fresh capital and bolster the industry's financial strength. The decision reflects the government’s continued commitment to making India a prime investment hub for stable, long-term capital.

Greater foreign participation, will accelerate the adoption of global best practices, introduce innovative products, and elevate customer service standards. Additionally, the mandate to invest premiums within India ensures that these funds contribute to domestic economic growth and infrastructure development.

The next five years present a significant and an exciting opportunity to propel the industry forward onto greater heights.

Rahul Gandhi reacts on Budget 2025 says, Government is bankrupt of ideas

Union Minister Ashwini Vaishnaw says "I thank PM Modi and Union Finance Minister Nirmala Sitharaman for giving such an amazing budget. It is a dream budget. On one hand, the requirement for capital investment has been made, and on the other, a huge relief has been given to the middle classes. No income tax up to Rs 12 lakh annual income, it is amazing and it is a big relief for the middle classes." (PTI)

After the budget presentation, FM Sitharaman meets Lok Sabha Speaker Om Birla at the Parliament House. Birla congratulated her and wished her for presenting the budget for the eighth consecutive time. (ANI)

Samajwadi Party MP Dimple Yadav criticized the Union Budget says "Nothing new was there in the budget." Yadav also raised concerns about the Maha Kumbh incident in Prayagraj, urging the state government to disclose details of all devotees who lost their lives. ( ANI)

The budget reinforces the nation’s journey towards realizing the vision of a Viksit Bharat by driving growth and prioritizing key sectors such as agriculture, manufacturing and healthcare. In this journey focusing on people is important and the Finance Minister in the Union Budget 2025 said that a country is not just its soil but also its people; indeed, one of the key elements that empowers people is quality, affordable and accessible healthcare. The Budget reflects a strong commitment to strengthening India’s healthcare ecosystem, with commendable initiatives in medical education, cancer care, and access to life-saving medicines. The addition of 10,000 medical seats by next year with an aim to add 75,000 medical seats over the next five years will help bridge the doctor-patient ratio, while the establishment of 200 cancer centers will significantly enhance oncology care across the country. The exemption of customs duty on critical drugs for cancer and rare diseases is a much-needed step to make advanced treatments more affordable. We also welcome the government's emphasis on medical tourism through the ‘Heal in India’ initiative, which will further position India as a global healthcare destination. Continued investments in healthcare infrastructure, innovation, and accessibility will be key to ensuring quality care for all and achieving a truly ‘Viksit Bharat’ in healthcare - Abhay Soi, Chairman and Managing Director, Max Healthcare Institute Limited

Venky Iyer - Managing Director & Chief Executive Officer at Tata AIA Life Insurance: The Finance Minister delivered a growth-oriented budget while staying firmly on the path of fiscal consolidation pegging the fiscal deficit for FY 26 at 4.4%. A massive ₹1 lakh crore in personal tax relief directed at the middle class, will boost consumption, and enable households to invest in their financial security.

Initiatives around channelizing credit to the MSME sector with focus on labour intensive manufacturing, facilitating investments, smoothening the processes in the exports arena, reforms around the ease of doing business with an overall emphasis on minimizing onerous regulations augur well for the economy and its participants.

At Tata AIA, we stay committed to partnering with Individuals and Enterprises in their growth journey through our life insurance solutions.

The increased threshold for TDS deduction in case of interest other than interest on securities and the allowance of tax-free withdrawals from NSS accounts will provide significant financial relief to senior citizens. This will increase liquidity in the hands of senior citizen and provide them with sufficient flexibility to invest in purpose-built senior housing. These measures are crucial in addressing the financial challenges that potential end-users often face due to high price points. With the senior living market currently estimated at USD 2-3 billion and expected to grow at a CAGR of more than 30%, reaching approximately USD 12 billion by 2030, we can anticipate these incentives are expected to lead to accelerated growth in the senior living sector - Vimal Nadar, Head of Research at Colliers India

Union Minister Giriraj Singh says, "...PM Narendra Modi focussed on 4 sectors- women, poor people, youth, and farmers. All four sectors have been covered (in the budget)... Whichever angle you look at it from, it is an inclusive budget for the whole society... If the PM talked about a food processing training centre for the people of Purvanchal, then what was wrong with that? Do they (the opposition) hate the people of Bihar?... If PM Narendra Modi talked about developing ITI then what is there to hate in this?... This (hatred) is because of a flaw in the mentality of Congress and the opposition."

Former Finance Minister P Chidambaram on Union Budget 2025-26 says, "The takeaway from Budget 2025-26 is that the BJP is wooing the tax paying middle-class and the Bihar electorate, these announcements will be welcomed by the 3.2 crore tax paying middle-class and the 7.65 crore voters of Bihar. For the rest of India, the FM had no more than soothing words punctuated by the applause of BJP members led by the PM. In the FY 2024-25, revised receipts are lower by 41,240 crore rupees, revised net tax receipts are lower by 26,439 crore rupees. On the expenditure side, total expenditure has been cut by Rs 1,04,025 crore rupees, and capital expenditure has been cut by Rs 92,682 crore rupees. With this cut, the sectors that have suffered the most and the amounts of cuts are, health- 1,255 crore rupees, education- Rs 11,584 crore rupees, social welfare- 10,019 crore rupees, agriculture- 10,992 crore rupees, rural development- 75,133 crore rupees, urban development- 18,907 crore rupees, and development of north east- 1,894 crore rupees. The cruellest cuts were in allocation for SC, ST, and minorities..." (PTI)

A major change was introduced in income tax in Budget 2025. It is the increase in the tax exemption limit for all taxpayers to Rs 12 lakh in the new tax regime. Union Finance Minister Nirmala Sitharaman said in her budget speech, “I am now happy to announce that there will be no income tax payable up to income of Rs 12 lakh (i.e. average income of Rs 1 lakh per month other than special rate income such as capital gains) under the new regime. This limit will be Rs 12.75 lakh for salaried taxpayers, due to a standard deduction of Rs 75,000” Read more.

Union Minister of Finance Nirmala Sitharaman announced changes in the tax slab rates under the new tax regime in her Budget Speech in Parliament, as part of the government’s effort to boost consumption and put more money at the disposal of people. Read More

Union Minister of Finance Nirmala Sitharaman announced relief for homeowners of two houses in her Budget Speech in Parliament on February 1, 2025. Tax liability of two self-occupied houses will now fall nil for the purpose of tax. Earlier, this was allowed on only one self-occupied house. Read More