India’s growth aspirations may be set out clearly, aiming for the country to become a “Viksit Bharat” by 2047, marking the centenary of India’s independence. To achieve this ambitious vision, India needs to maintain an average annual growth rate of 8% for a decade or two at constant prices. This growth target is considered crucial for addressing the challenges of inequality and poverty, ensuring a prosperous future for the country. However, it is important to note that India's growth rate will be influenced by both domestic and global factors, including political and economic developments worldwide.
Today, India has emerged as a major global player in the field of digital technology, earning recognition from developed nations worldwide. Notably, our UPI transactions system has garnered international acclaim. My Government has successfully leveraged digital technology to promote social justice and equality, bridging gaps and empowering citizens.
Expectations regarding a significant reform in the cryptocurrency taxation framework are high. Currently, India imposes a 30% tax on virtual digital assets (VDAs) and a 1% TDS on transactions over ₹10,000. Industry stakeholders are advocating for a reduction in TDS to 0.01%, the ability to offset losses, and a reevaluation of the high tax rate to foster growth and innovation in the digital economy. Read More
The electronics industry is advocating for a 5% corporate tax reduction and 4-5% export incentives to enhance global competitiveness. Stakeholders emphasize the need for extended Design Linked Incentive (DLI) schemes and improved support for MSMEs to drive innovation and address R&D investment gaps, currently at 0.6-0.7% of GDP, compared to 2.4% in China. Read More
As the nation anticipates the unveiling of Budget 2025, all eyes are on Finance Minister Nirmala Sitharaman. The Finance Minister prepares to present a budget that aims to address key economic challenges and drive growth. This live blog will provide real-time updates and insights into the announcements that could shape India's economic landscape for the coming year.
There are high expectations among public regarding investments in education, job creation, defense spending, and potential tax reforms. Stakeholders from various sectors are eager to see how the government plans to navigate the post-pandemic recovery phase. Join Analytics Insight as it tracks the latest developments and analyzes their implications for businesses and citizens alike.
Budget 2025 may affect the Indian stock market with expected tax cuts for individuals earning ₹1-2 million and expanded PLI schemes, especially benefiting sectors like electronics. Historical data shows that the Sensex moved less than 1% in 8 of the last 25 Budget days. Volatility is expected, so cautious strategies are recommended. Read More
PM Narendra Modi's recent address has sparked speculation that Budget 2025 may bring income tax relief for the middle class. The government may announce measures to provide relief, including changes to income tax slabs, in the Union Budget to be presented on February 1, 2025. The move is expected to boost consumer spending and ease the burden on the middle class. Other key expectations from the Budget include measures to counter inflation and stabilise the economy.
The Economic Survey 2025 underscores India's rapid AI adoption in the services sector, particularly in banking, finance, healthcare, telecom, retail, and transport. Chief Economic Advisor V Anantha Nageshwaran highlighted concerns over FDI decline as a share of GDP. He emphasized that India must now compete with industrialized nations. Nageshwaran further stressed that profitable returns remain India's key attraction for global investors in a shifting economic landscape.
Ahead of the Union Budget 2025, President Droupadi Murmu hinted at possible income tax relief for the middle class, emphasizing its role in India’s economic progress. Stakeholders, including RSB Group's Executive Director Rajnikant Behera, are urging FM Nirmala Sitharaman to reinstate the ₹1.5 lakh EV loan interest deductions under Section 80EEB, which expired in 2023. The deductions are expected to boost EV affordability and adoption. If the above suggestion is accepted, taxpayers could claim a deduction of up to Rs 1,50,000 on the interest portion of a loan taken specifically to purchase an EV, or electric vehicle. However, this may only apply if their loan had been sanctioned between January 2019 and March 2023.
Experts anticipate major income tax relief for homebuyers in Budget 2025, with expectations of affordable housing limits rising from ₹45 lakh to ₹75 lakh in metros and carpet area thresholds increasing to 90 sq. m. CBRE’s Anshuman Magazine suggests raising tax deductions on home loan interest from ₹2 lakh to ₹5 lakh. Thus, making housing more affordable and easing the burden on new homeowners.
The Economic Survey 2025 highlights AI’s disruptive impact on India’s workforce, urging stronger institutions to enable smooth adoption. Deloitte India stresses collaboration between the government, industry, and academia to ensure AI enhances jobs rather than replaces them. Additionally, Deloitte sees the textile industry as a key employment driver, supporting India’s goal of creating 78.5 lakh non-farm jobs annually by 2030 through vertical integration in man-made fiber production.
Education loan interest is currently deductible under Section 80E for a maximum of eight years, with loans available for higher education of self, spouse, or children. Experts, including Shreevats Jaipuria of PHDCCI, suggest extending the repayment tenure to 15 years to ease financial pressure on students entering the workforce. As Budget 2025 nears, stakeholders await potential reforms to make education loans more student-friendly.
The basic income exemption limit for people under 60 years old is Rs 2,50,000 according to the old tax regime and Rs 3,00,000 under the new regime. Saurabh Ashok More of CIEL HR Group highlights that the basic exemption limit has not kept pace with inflation, eroding taxpayers' purchasing power by 27-39%. Stakeholders hope for inflation-adjusted slabs and higher exemption limits in Budget 2025 to provide equitable relief to taxpayers.
Abhishek Sinha, founder of GoodDot, advocates for rationalizing the GST on plant-based foods, aligning it with traditional meat products. Meanwhile, Akshat Rathee, co-founder of NODWIN Gaming, urges the government to focus on AI skilling for the gaming and sports industry. He emphasized initiatives that support rapid game deployment and quality assurance, to keep pace with global advancements and enhance game development.
Muskan Jain, Brand Manager at MARS Cosmetics, urges the government to reduce import duties on raw materials to make cosmetics more affordable. Meanwhile, the founder of Cognio Labs advocates for budget allocations for developing personalized learning platforms with adaptive AI algorithms. Thus, focusing on AI-enabled assessment tools, virtual learning, and automated content generation to enhance education quality.
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