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India's latest economic survey highlights steady growth in job creation and a reduction in unemployment. Beyond the numbers, the survey also sheds light on mental health issues and their economic impact.
&lsquo;The economic survey 2023-24 recognised mental well-being as an economic issue and highlighted, in some detail, the increasing prevalence of mental health issues worldwide and in India and its likely impact on the economy. It emphasised a whole of community approach to tackling mental health problems,&rsquo; it said.
<h2>Longer work hours: More productivity?</h2>
The survey mentions work-life balance as one of the criteria for stable mental health. This surely contrasts with the approach endorsed by major CEOs of the country. Giga ML co-founder and CEO Varun Vummadi becomes the latest to criticise the 'work ethics' of Indian engineers. He said in an X post, 'I&rsquo;ve noticed a pattern in hiring engineers for our Indian office. Even with a base salary of ₹1 crore, many are unwilling to work hard. A significant number of engineers with 3&ndash;8 years of experience are reluctant to work six days a week.' Narayan Murthy had earlier ignited the debate on working long hours as a means to contribute to the country's economic growth. SN Subrahmanyan, chairman of Larsen &amp; Toubro, one of India's largest infrastructure firms, went even further, asking for a 90-hour workweek.&nbsp;
In a highly circulated video cited by reports, Subrahmanyan expressed regret over not being able to make his employees work on Sundays. He went on to say, &lsquo;What do you do sitting at home? How long can you stare at your wife?&rsquo; Subrahmanyan also cited China's workforce, claiming their 90-hour work weeks were a factor in their economic progress, and encouraged L&amp;T employees to adopt a similar work ethic. His comments have sparked widespread criticism, with many questioning the implications on employee well-being and work-life balance.
Meanwhile, the survey supports the criticism, highlighting how longer working hours lead to mental health imbalance. &lsquo;While the hours spent at work are informally considered a measure of productivity, a previous study has documented adverse health effects when hours exceed 55-60 per week,&rsquo; it said. &lsquo;Individuals who spend 12 or more hours at a desk have distressed/struggling levels of mental well-being, with a mental well-being score approximately 100 points lower than those who spend less than or equal to two hours at a desk, according to the survey,&rsquo; the survey added.
The survey goes beyond personal issues, highlighting how mental well-being is crucial for economic productivity. &lsquo;While the low levels of mental well-being are worrying, the ramifications of these trends on the economy are equally disturbing,&rsquo; it said.
A &nbsp;survey within the economic survey sheds light on the number of working hours a week and the relative mental health score. Those who report higher mental health scores are often more productive than those suffering from low levels of mental well-being. This survey was conducted online on 5,233 digitally-enabled individuals between 18-64 years of age.&nbsp;
According to the survey, Lifestyle choices and workplace culture are critical for mental well-being and, hence, productivity. &lsquo;If India&rsquo;s economic ambitions are to be met, then immediate attention must be given to lifestyle choices that are often made during childhood/ youth. Furthermore, hostile work cultures and excessive hours spent working at the desk can adversely affect mental well-being and ultimately put the brakes on the pace of economic growth,&rsquo; the survey added.

Business & Economy, While the hours spent are informally considered a measure of productivity, a previous study documents adverse health effects when hours exceed 55-60 per week

India's latest economic survey highlights steady growth in job creation and a reduction in unemployment. Beyond the numbers, the survey also sheds light on mental health issues and their economic impact. ‘The economic survey 2023-24 recognised mental well-being as an economic issue and highlighted, in some detail, the increasing prevalence of mental health issues worldwide and in India and its likely impact on the economy. It emphasised a whole of community approach to tackling mental health problems,’ it said. Longer work hours: More productivity? The survey mentions work-life balance as one of the criteria for stable mental health. This surely contrasts with the approach endorsed by major CEOs of the country. Giga ML co-founder and CEO Varun Vummadi becomes the latest to criticise the 'work ethics' of Indian engineers. He said in an X post, 'I’ve noticed a pattern in hiring engineers for our Indian office. Even with a base salary of ₹1 crore, many are unwilling to work hard. A significant number of engineers with 3–8 years of experience are reluctant to work six days a week.' Narayan Murthy had earlier ignited the debate on working long hours as a means to contribute to the country's economic growth. SN Subrahmanyan, chairman of Larsen & Toubro, one of India's largest infrastructure firms, went even further, asking for a 90-hour workweek. In a highly circulated video cited by reports, Subrahmanyan expressed regret over not being able to make his employees work on Sundays. He went on to say, ‘What do you do sitting at home? How long can you stare at your wife?’ Subrahmanyan also cited China's workforce, claiming their 90-hour work weeks were a factor in their economic progress, and encouraged L&T employees to adopt a similar work ethic. His comments have sparked widespread criticism, with many questioning the implications on employee well-being and work-life balance. Meanwhile, the survey supports the criticism, highlighting how longer working hours lead to mental health imbalance. ‘While the hours spent at work are informally considered a measure of productivity, a previous study has documented adverse health effects when hours exceed 55-60 per week,’ it said. ‘Individuals who spend 12 or more hours at a desk have distressed/struggling levels of mental well-being, with a mental well-being score approximately 100 points lower than those who spend less than or equal to two hours at a desk, according to the survey,’ the survey added. The survey goes beyond personal issues, highlighting how mental well-being is crucial for economic productivity. ‘While the low levels of mental well-being are worrying, the ramifications of these trends on the economy are equally disturbing,’ it said. A survey within the economic survey sheds light on the number of working hours a week and the relative mental health score. Those who report higher mental health scores are often more productive than those suffering from low levels of mental well-being. This survey was conducted online on 5,233 digitally-enabled individuals between 18-64 years of age. According to the survey, Lifestyle choices and workplace culture are critical for mental well-being and, hence, productivity. ‘If India’s economic ambitions are to be met, then immediate attention must be given to lifestyle choices that are often made during childhood/ youth. Furthermore, hostile work cultures and excessive hours spent working at the desk can adversely affect mental well-being and ultimately put the brakes on the pace of economic growth,’ the survey added.

India's Economic Survey 2025 highlights mental health issues amid working hours debate

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Come February 1 and no Unified Payments Interface (UPI) payment app can use special characters for generating transaction IDs. If you are using any such UPI app which uses special characters in the transaction ID, then the transaction will be declined by the central system.<span class="EOP SCXW53113399 BCX0" data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}">&nbsp;
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The National Payments Corporation of India, a public sector company that operates retail payments and settlement systems in the country, has come out with a new set of guidelines for UPI <a href="https://www.wionews.com/tags/transactions">transactions</a>. The guidelines will come into effect February 1&nbsp;onwards.<span class="EOP SCXW53113399 BCX0" data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}">&nbsp;
<span class="EOP SCXW53113399 BCX0" data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}">Also Read: <a href="https://www.wionews.com/india-news/pm-modis-early-us-visit-in-the-works-tahawwur-ranas-to-be-extradited-to-india-soon-mea-8678389">PM Modi&rsquo;s early US visit in the works; Tahawwur Rana&rsquo;s to be extradited to India soon: MEA</a> According to an UPI circular dated January 9, 2025, &ldquo;Reference may be taken from our OC 193 dated 28th March 2024 wherein UPI ecosystem players were&nbsp;advised to use only alphanumeric characters for generating UPI transaction ID. This is to ensure compliance with UPI technical specifications. We have been working with the ecosystem to improve compliance, though the issue has been largely resolved, it is observed that a few of the participants continue to be non-compliant. Considering the criticality of compliance to the specifications, it has been decided not to allow any special characters in UPI transaction ID. Any&nbsp;transaction with&nbsp;ID containing special characters shall be declined by the central system. This shall be effective from Feb 1.&rdquo;<span class="EOP SCXW53113399 BCX0" data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}">&nbsp;
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<h2 class="Paragraph SCXW53113399 BCX0" lang="EN-US" paraid="566206348" paraeid="{2bfcda95-ae43-438a-a5f5-c2c12d4681d5}{143}">What are the special characters?<span class="EOP SCXW53113399 BCX0" data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}">&nbsp;</h2>
</div>
<div class="OutlineElement Ltr SCXW53113399 BCX0">
Special characters are any characters that are not part of the standard 26-letter alphabet or numbers 0-9. They include punctuation marks, accent marks, and other symbols like #, @, $, or *.<span class="EOP SCXW53113399 BCX0" data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}">&nbsp;
</div>
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<h2 class="Paragraph SCXW53113399 BCX0" lang="EN-US" paraid="1650391996" paraeid="{7fbb50ff-41f8-4731-825f-33f0a3a1f87b}{50}">UPIs growing popularity and security concerns<span class="EOP SCXW53113399 BCX0" data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}">&nbsp;</h2>
</div>
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As per <a href="https://www.wionews.com/tags/reserve-bank-of-india">RBI</a>&rsquo;s payment system report, UPI has been the most significant contributor to the growth of digital payments in <a href="https://www.wionews.com/tags/india">India</a>. It is also evident from the fact that the share of the UPI in India has risen from 34% in 2019 to 83% in 2024, with a remarkable CAGR (cumulative average growth rate) of 74% per cent over the last five years.<span class="EOP SCXW53113399 BCX0" data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}">&nbsp;
</div>
<div class="OutlineElement Ltr SCXW53113399 BCX0">
Although most banks and payment platforms have already implemented this change, those who have not updated their IDs, must do so before the deadline.<span class="EOP SCXW53113399 BCX0" data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}">&nbsp;
<span class="EOP SCXW53113399 BCX0" data-ccp-props="{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559738&quot;:240,&quot;335559739&quot;:240,&quot;335559740&quot;:279}">(With inputs from agencies)
</div>

Business & Economy: Special characters are any characters that are not part of the 26-letter alphabet or numbers 0-9. They include punctuation marks, accent marks, & other symbols

Come February 1 and no Unified Payments Interface (UPI) payment app can use special characters for generating transaction IDs. If you are using any such UPI app which uses special characters in the transaction ID, then the transaction will be declined by the central system. The National Payments Corporation of India, a public sector company that operates retail payments and settlement systems in the country, has come out with a new set of guidelines for UPI transactions. The guidelines will come into effect February 1 onwards. Also Read: PM Modi’s early US visit in the works; Tahawwur Rana’s to be extradited to India soon: MEA According to an UPI circular dated January 9, 2025, “Reference may be taken from our OC 193 dated 28th March 2024 wherein UPI ecosystem players were advised to use only alphanumeric characters for generating UPI transaction ID. This is to ensure compliance with UPI technical specifications. We have been working with the ecosystem to improve compliance, though the issue has been largely resolved, it is observed that a few of the participants continue to be non-compliant. Considering the criticality of compliance to the specifications, it has been decided not to allow any special characters in UPI transaction ID. Any transaction with ID containing special characters shall be declined by the central system. This shall be effective from Feb 1.” What are the special characters? Special characters are any characters that are not part of the standard 26-letter alphabet or numbers 0-9. They include punctuation marks, accent marks, and other symbols like #, @, $, or *. UPIs growing popularity and security concerns As per RBI’s payment system report, UPI has been the most significant contributor to the growth of digital payments in India. It is also evident from the fact that the share of the UPI in India has risen from 34% in 2019 to 83% in 2024, with a remarkable CAGR (cumulative average growth rate) of 74% per cent over the last five years. Although most banks and payment platforms have already implemented this change, those who have not updated their IDs, must do so before the deadline. (With inputs from agencies)

UPI alert: IDs with these characters will be blocked from tomorrow—What you need to know

As India approaches its next budget, the economists are faced with a fine balancing act: Ensuring sustained economic growth, while managing inflation, bolstering consumer demand, and sticking to the fiscal discipline. Even though the economic survey 2024-25 gives a rosy outlook for the country's growth, a close inspection shows the need for addressing concerns through level-headed policy interventions. Now let us take a look at the high points from the economic survey.&nbsp;
<h2>Highlights of the Economic Survey: Focus on Growth</h2>
- Real GDP growth for FY25: 6.4% - Services sector growth supports momentum - The big concern: growth is slowing
India's first advance estimates project a 6.4 per cent real GDP growth for FY25, driven by 7.2 per cent growth in services. However, this pace is slowing relative to the growth achieved in preceding years, mainly due to softening gross capital formation.
Unlocking private investment for sustainable growth will be the central challenge before the government in the upcoming budget. These could include measures directed at increasing the ease of doing business, access to credit, especially for MSMEs, and much-needed targeted tax incentives for private investment.&nbsp;
<h2>Highlights of the Economic Survey:&nbsp;Focus on inflation</h2>
- Retail inflation in FY24: 5.4% - Retail inflation in FY25: 4.9% - Food inflation is still persistent
Retail inflation dipped to 4.9 per cent in FY25 from 5.4 per cent in FY24 mostly due to lower core inflation. While food inflation is a concern, a further rise in food inflation is also seen as a very disconcerting phenomenon that's mainly driven by volatility in the prices of essential commodities such as pulses and vegetables. The government has launched buffer stock interventions and relaxed import duties on pulses to contain surges in prices, though food prices continue to feel pressure from disruptive weather patterns and supply chain causes.&nbsp;
To tackle inflationary pressures, the budget is likely to give the highest priority to building climate-resilient agricultural practices, cold storage infrastructure, and policies to stabilise food supply chains. It is suggested to diversify essential commodities and resist supply shocks through monitoring.&nbsp;
<h2>Highlights of the Economic Survey: Focus on consumer demand</h2>
- Revival in rural demand - Urban demand shows mixed trends - Urban passenger vehicle sales slow - FMCG sales remain moderate - Air passenger traffic grows
The report says consumer demand showed a notable uptick, largely driven by a revival in rural demand. This resurgence is attributed to record kharif production and higher minimum support prices. In contrast, urban demand displayed mixed trends&mdash;passenger vehicle sales growth slowed in the previous year, and FMCG sales remained moderate, although air passenger traffic saw steady growth.
A major concern is whether rural demand can sustain itself beyond the harvest season. The government could consider direct cash transfers, rural employment programs, and enhanced credit availability to sustain rural consumption. Additionally, policies aimed at boosting urban consumer sentiment&mdash;such as tax relief for middle-income households and incentives for discretionary spending&mdash;could support broader demand recovery.
<h2>Highlights of the Economic Survey: Focus on fiscal prudence</h2>
-CAPEX has improved -Fiscal discipline improves
Despite increase in capital expenditure, the fiscal discipline in the country has continued to improve over the years. The constraints on general government dis-savings managed to keep macroeconomic instability at bay. Yet maintaining this discipline while accessing development and welfare spending remains a challenge.
The government needs to undertake spending targeted towards welfare for its next budget, beyond long-term broad-based subsidy. Moreover, boosting tax compliance and widening the tax base through digitalization and formalization of the informal economy can improve fiscal health without burdening taxpayers excessively.
While the economic survey indicates that the Indian economy is in good shape, several headwinds persist. Global uncertainties, inflationary risks, and domestic demand inconsistencies necessitate a pragmatic approach.
Experts say the union budget must prioritize policy measures that stimulate investment, control inflation, bolster consumer confidence, and maintain fiscal prudence to achieve developed nation status by 2047.

Business & Economy, India's first advance estimates project a 6.4 per cent real GDP growth for FY25. However, this pace is slow relative to the growth achieved in preceding years.

As India approaches its next budget, the economists are faced with a fine balancing act: Ensuring sustained economic growth, while managing inflation, bolstering consumer demand, and sticking to the fiscal discipline. Even though the economic survey 2024-25 gives a rosy outlook for the country's growth, a close inspection shows the need for addressing concerns through level-headed policy interventions. Now let us take a look at the high points from the economic survey. Highlights of the Economic Survey: Focus on Growth - Real GDP growth for FY25: 6.4% - Services sector growth supports momentum - The big concern: growth is slowing India's first advance estimates project a 6.4 per cent real GDP growth for FY25, driven by 7.2 per cent growth in services. However, this pace is slowing relative to the growth achieved in preceding years, mainly due to softening gross capital formation. Unlocking private investment for sustainable growth will be the central challenge before the government in the upcoming budget. These could include measures directed at increasing the ease of doing business, access to credit, especially for MSMEs, and much-needed targeted tax incentives for private investment. Highlights of the Economic Survey: Focus on inflation - Retail inflation in FY24: 5.4% - Retail inflation in FY25: 4.9% - Food inflation is still persistent Retail inflation dipped to 4.9 per cent in FY25 from 5.4 per cent in FY24 mostly due to lower core inflation. While food inflation is a concern, a further rise in food inflation is also seen as a very disconcerting phenomenon that's mainly driven by volatility in the prices of essential commodities such as pulses and vegetables. The government has launched buffer stock interventions and relaxed import duties on pulses to contain surges in prices, though food prices continue to feel pressure from disruptive weather patterns and supply chain causes. To tackle inflationary pressures, the budget is likely to give the highest priority to building climate-resilient agricultural practices, cold storage infrastructure, and policies to stabilise food supply chains. It is suggested to diversify essential commodities and resist supply shocks through monitoring. Highlights of the Economic Survey: Focus on consumer demand - Revival in rural demand - Urban demand shows mixed trends - Urban passenger vehicle sales slow - FMCG sales remain moderate - Air passenger traffic grows The report says consumer demand showed a notable uptick, largely driven by a revival in rural demand. This resurgence is attributed to record kharif production and higher minimum support prices. In contrast, urban demand displayed mixed trends—passenger vehicle sales growth slowed in the previous year, and FMCG sales remained moderate, although air passenger traffic saw steady growth. A major concern is whether rural demand can sustain itself beyond the harvest season. The government could consider direct cash transfers, rural employment programs, and enhanced credit availability to sustain rural consumption. Additionally, policies aimed at boosting urban consumer sentiment—such as tax relief for middle-income households and incentives for discretionary spending—could support broader demand recovery. Highlights of the Economic Survey: Focus on fiscal prudence -CAPEX has improved -Fiscal discipline improves Despite increase in capital expenditure, the fiscal discipline in the country has continued to improve over the years. The constraints on general government dis-savings managed to keep macroeconomic instability at bay. Yet maintaining this discipline while accessing development and welfare spending remains a challenge. The government needs to undertake spending targeted towards welfare for its next budget, beyond long-term broad-based subsidy. Moreover, boosting tax compliance and widening the tax base through digitalization and formalization of the informal economy can improve fiscal health without burdening taxpayers excessively. While the economic survey indicates that the Indian economy is in good shape, several headwinds persist. Global uncertainties, inflationary risks, and domestic demand inconsistencies necessitate a pragmatic approach. Experts say the union budget must prioritize policy measures that stimulate investment, control inflation, bolster consumer confidence, and maintain fiscal prudence to achieve developed nation status by 2047.

India's Economic Survey: focus on growth, inflation & fiscal prudence

India's finance minister has tabled the country's economic survey for 2024-25. In many ways, this is the economic report card that serves as the basis for the country's budget, which is expected tomorrow.
So, let's break down the numbers for you. First up- growth
<h2>India's Economic Survey 2024-25: Focus on growth</h2>
- Current fiscal estimates: 6.5-7% - Current fiscal projections: 6.4% - Slowdown attributed to weak manufacturing - Shows signs of weakening consumer demand - GDP growth forecast for FY26: 6.3-6.8%
India&rsquo;s economic growth is projected to hit a four-year low of 6.4 per cent in the current fiscal year, falling short of last year&rsquo;s estimate of 6.5 to 7 per cent. This slowdown is attributed to weak manufacturing and investment and raises concerns about a potential dip in consumer demand. A sluggish manufacturing sector, impacted by weak global demand and seasonal domestic conditions, has contributed to this downward trend. &nbsp;
The economic survey expects GDP growth of 6.3-6.8 per cent for the next fiscal year, driven by stable private consumption and a strong external account. But the same indicators, after directing slightly lower than expected growth, show signs of getting squeezed.
According to the survey, fiscal discipline and a services trade surplus have supported macroeconomic stability. However, with private consumption remaining merely stable rather than accelerating, concerns persist over whether domestic demand is robust enough to drive higher growth. &nbsp;
As India's growth loses momentum, the government will need to take decisive steps in the upcoming budget to spur investments and consumer confidence. All eyes will now shift towards the policy measures in the Union Budget 2025 that would shape the unfolding economic trajectory.&nbsp;

Business & Economy, The economic survey expects GDP growth of 6.3-6.8 per cent for the next fiscal year, driven by stable private consumption and a strong external account.

India's finance minister has tabled the country's economic survey for 2024-25. In many ways, this is the economic report card that serves as the basis for the country's budget, which is expected tomorrow. So, let's break down the numbers for you. First up- growth India's Economic Survey 2024-25: Focus on growth - Current fiscal estimates: 6.5-7% - Current fiscal projections: 6.4% - Slowdown attributed to weak manufacturing - Shows signs of weakening consumer demand - GDP growth forecast for FY26: 6.3-6.8% India’s economic growth is projected to hit a four-year low of 6.4 per cent in the current fiscal year, falling short of last year’s estimate of 6.5 to 7 per cent. This slowdown is attributed to weak manufacturing and investment and raises concerns about a potential dip in consumer demand. A sluggish manufacturing sector, impacted by weak global demand and seasonal domestic conditions, has contributed to this downward trend. The economic survey expects GDP growth of 6.3-6.8 per cent for the next fiscal year, driven by stable private consumption and a strong external account. But the same indicators, after directing slightly lower than expected growth, show signs of getting squeezed. According to the survey, fiscal discipline and a services trade surplus have supported macroeconomic stability. However, with private consumption remaining merely stable rather than accelerating, concerns persist over whether domestic demand is robust enough to drive higher growth. As India's growth loses momentum, the government will need to take decisive steps in the upcoming budget to spur investments and consumer confidence. All eyes will now shift towards the policy measures in the Union Budget 2025 that would shape the unfolding economic trajectory.

What does the economic survey say about India's economy?

The 2025 Union Budget is more than just a financial roadmap&mdash;it&rsquo;s an opportunity to redefine the future of education in India. As classrooms evolve, integrating AI-driven tools into traditional education is no longer optional but essential. AI and conventional learning aren&rsquo;t opposing forces; rather, they can complement each other to create a more dynamic, inclusive, and effective education system. However, this transformation requires strategic investments and forward-thinking policies to ensure that India&rsquo;s education system is fully prepared for the digital era.&nbsp;
Despite significant progress in education, rote learning and standardized curricula still dominate Indian classrooms. While core subjects like mathematics and science remain crucial, the way students are taught has changed little over the years. AI-driven learning offers a chance to revolutionize education by making it more interactive and adaptive. Intelligent platforms can assist teachers in designing customized lesson plans, assessing student performance in real time, and providing targeted support where needed. &nbsp;
However, the successful implementation of AI in education hinges on three key areas: digital infrastructure, teacher training, and curriculum adaptation. Without investment in these foundational elements, AI&rsquo;s potential to enhance learning will remain unrealized.&nbsp;
Imagine a future where AI acts as a teaching assistant, adapting to each student&rsquo;s unique strengths and weaknesses. Such systems could analyze a learner&rsquo;s progress and tailor lessons accordingly, making education more engaging and effective. However, realizing this vision requires significant funding in high-speed internet connectivity, smart classrooms, and AI-based learning tools. Schools, particularly in rural areas, must have access to reliable digital infrastructure to prevent AI education from becoming a privilege of the few. At the same time, educators need comprehensive training programs to integrate AI-driven techniques into their teaching. AI will not replace teachers, but it can empower them&mdash;provided they have the right skills to blend traditional methods with emerging technologies. A well-trained teacher, supported by AI, can bridge learning gaps and provide personalized attention in ways previously unimaginable.&nbsp;
A critical challenge in AI adoption is ensuring equal access to quality education across the country. While elite urban schools may be prepared for AI-driven classrooms, many rural and government-funded schools lack even basic technological infrastructure. Expanding internet connectivity to remote areas is a necessary first step. Additionally, AI-based learning tools should be made affordable through government subsidies and public-private partnerships. The development of AI solutions that support regional languages will also be crucial in making AI-driven education accessible to students across diverse linguistic and socio-economic backgrounds. If Budget 2025 prioritizes these initiatives, India can take a major step toward democratizing AI-powered learning.&nbsp;
<h2>India can also accelerate AI adoption in education by learning from global best practices. &nbsp;</h2>
Establishing AI research centers and incubators within universities can drive homegrown innovation tailored to India&rsquo;s unique educational needs. Collaboration between academia and industry will be essential in aligning AI-related courses with real-world job requirements, ensuring that students graduate with industry-relevant skills. Additionally, offering scholarships and grants for students pursuing AI and emerging technology fields will help build a workforce that is future-ready and equipped to lead in an increasingly AI-driven world.&nbsp;
As we embrace AI in education, it is equally important to address ethical concerns and data privacy. AI systems handling student information must be regulated to prevent misuse and safeguard sensitive data. Budget 2025 should introduce clear policies on the ethical deployment of AI in classrooms, ensuring that technological advancements enhance learning rather than create new risks. By funding research into responsible AI development, the government can strike a balance between innovation and student well-being.&nbsp;
AI-driven learning has the potential to transform education in India, making it more engaging, effective, and inclusive. However, this vision will only become a reality if Budget 2025 prioritizes AI integration through well-structured policies and targeted investments. If the right steps are taken today, India can not only modernize its classrooms but also prepare an entire generation for the future of work in a technology-driven world.&nbsp;

Business & Economy, AI-driven learning offers a chance to revolutionize education by making it more interactive and adaptive. Intelligent platforms can assist teachers.

The 2025 Union Budget is more than just a financial roadmap—it’s an opportunity to redefine the future of education in India. As classrooms evolve, integrating AI-driven tools into traditional education is no longer optional but essential. AI and conventional learning aren’t opposing forces; rather, they can complement each other to create a more dynamic, inclusive, and effective education system. However, this transformation requires strategic investments and forward-thinking policies to ensure that India’s education system is fully prepared for the digital era. Despite significant progress in education, rote learning and standardized curricula still dominate Indian classrooms. While core subjects like mathematics and science remain crucial, the way students are taught has changed little over the years. AI-driven learning offers a chance to revolutionize education by making it more interactive and adaptive. Intelligent platforms can assist teachers in designing customized lesson plans, assessing student performance in real time, and providing targeted support where needed. However, the successful implementation of AI in education hinges on three key areas: digital infrastructure, teacher training, and curriculum adaptation. Without investment in these foundational elements, AI’s potential to enhance learning will remain unrealized. Imagine a future where AI acts as a teaching assistant, adapting to each student’s unique strengths and weaknesses. Such systems could analyze a learner’s progress and tailor lessons accordingly, making education more engaging and effective. However, realizing this vision requires significant funding in high-speed internet connectivity, smart classrooms, and AI-based learning tools. Schools, particularly in rural areas, must have access to reliable digital infrastructure to prevent AI education from becoming a privilege of the few. At the same time, educators need comprehensive training programs to integrate AI-driven techniques into their teaching. AI will not replace teachers, but it can empower them—provided they have the right skills to blend traditional methods with emerging technologies. A well-trained teacher, supported by AI, can bridge learning gaps and provide personalized attention in ways previously unimaginable. A critical challenge in AI adoption is ensuring equal access to quality education across the country. While elite urban schools may be prepared for AI-driven classrooms, many rural and government-funded schools lack even basic technological infrastructure. Expanding internet connectivity to remote areas is a necessary first step. Additionally, AI-based learning tools should be made affordable through government subsidies and public-private partnerships. The development of AI solutions that support regional languages will also be crucial in making AI-driven education accessible to students across diverse linguistic and socio-economic backgrounds. If Budget 2025 prioritizes these initiatives, India can take a major step toward democratizing AI-powered learning. India can also accelerate AI adoption in education by learning from global best practices. Establishing AI research centers and incubators within universities can drive homegrown innovation tailored to India’s unique educational needs. Collaboration between academia and industry will be essential in aligning AI-related courses with real-world job requirements, ensuring that students graduate with industry-relevant skills. Additionally, offering scholarships and grants for students pursuing AI and emerging technology fields will help build a workforce that is future-ready and equipped to lead in an increasingly AI-driven world. As we embrace AI in education, it is equally important to address ethical concerns and data privacy. AI systems handling student information must be regulated to prevent misuse and safeguard sensitive data. Budget 2025 should introduce clear policies on the ethical deployment of AI in classrooms, ensuring that technological advancements enhance learning rather than create new risks. By funding research into responsible AI development, the government can strike a balance between innovation and student well-being. AI-driven learning has the potential to transform education in India, making it more engaging, effective, and inclusive. However, this vision will only become a reality if Budget 2025 prioritizes AI integration through well-structured policies and targeted investments. If the right steps are taken today, India can not only modernize its classrooms but also prepare an entire generation for the future of work in a technology-driven world.

Can Budget 2025 bridge the gap between traditional education and AI-driven learning?

The Budget Session of Parliament will kick off on Friday (Jan 31) as President Droupadi Murmu will address both Houses of Parliament. The Union Budget 2025 is expected to be presented by Finance Minister Nirmala Sitharaman on February 1.&nbsp;
The first part of the Budget session of the Parliament will begin on January 31 and conclude on February 13, while the second part of the session is scheduled to commence on March 10 and conclude on April 4.&nbsp;
Also read: <a href="https://www.wionews.com/india-news/union-budget-2025-prime-ministers-who-presented-union-budget-8675171" rel="dofollow">Union Budget 2025: Prime Ministers who presented Union Budget</a>
<h2>What is going to happen in Parliament tomorrow?</h2>
Half an hour after President Murmu's address, the Rajya Sabha will hold a separate sitting for the transaction of Government Business, according to a parliamentary bulletin issued on Tuesday.&nbsp;
Further, February 3-5 have been provisionally allotted for discussion on the vote of thanks for the President's address, to be moved by one member of parliament and seconded by another.&nbsp;
The Centre is all set to present the first full Budget of Prime Minister Narendra Modi's third consecutive term in office.&nbsp;
Also read: <a href="https://www.wionews.com/india-news/list-of-finance-ministers-who-have-presented-the-union-budget-from-1947-to-2025-8675173" rel="dofollow">List of finance ministers who presented the Union Budget from 1947 to 2025</a>
Earlier today, an all-party meeting was convened by the Centre ahead of the Budget Session.&nbsp;
Congress leader Pramod Tiwari said the Opposition INDIA Bloc will raise &ldquo;all the issues together&rdquo; and listed "rising unemployment", the &ldquo;plight&rdquo; of farmers, and &ldquo;the politicisation of Kumbh&rdquo;, and the alleged preferential treatment for VIPs.
Moreover, the opposition is likely to unite on a few issues, such as the state of the economy and India's preparedness to deal with the likely impact of Trump's policies on immigration, visas, and tariffs.&nbsp;
Also read: <a href="https://www.wionews.com/business-economy/budget-2025-comparing-indias-tax-structure-to-other-asian-economies-8674012" rel="dofollow">Budget 2025: Comparing India's tax structure to other Asian economies</a>
<h2>What is the Union Budget 2025?</h2>
The <a href="https://www.wionews.com/india-news/union-budget-2025-date-time-when-and-where-to-watch-live-8668228">Union Budget </a>2025 is an annual financial statement that will provide a proposal of expenditures and revenues of the federal government for the next fiscal year, starting April 1, 2025, till March 31, 2026.&nbsp;
Since 2019, various government policies on fiscal, spending, income, and economy have been included in the budget paper, which is also called the bahi-khaata.
Notably, this will be Sitharaman's eighth consecutive budget presentation, and she will become the first Finance Minister to achieve this feat.&nbsp;
The budget presentation will be broadcast on the official TV channels of the government, Doordarshan and Sansad TV.
Moreover, the budget speech will also be streamed on the official YouTube channels of the government.
(With inputs from agencies)

Business & Economy, india News: The first part of the Budget session of the Parliament will begin on January 31 and conclude on February 13, while the second part of the session will commence on March 10.

The Budget Session of Parliament will kick off on Friday (Jan 31) as President Droupadi Murmu will address both Houses of Parliament. The Union Budget 2025 is expected to be presented by Finance Minister Nirmala Sitharaman on February 1. The first part of the Budget session of the Parliament will begin on January 31 and conclude on February 13, while the second part of the session is scheduled to commence on March 10 and conclude on April 4. Also read: Union Budget 2025: Prime Ministers who presented Union Budget What is going to happen in Parliament tomorrow? Half an hour after President Murmu's address, the Rajya Sabha will hold a separate sitting for the transaction of Government Business, according to a parliamentary bulletin issued on Tuesday. Further, February 3-5 have been provisionally allotted for discussion on the vote of thanks for the President's address, to be moved by one member of parliament and seconded by another. The Centre is all set to present the first full Budget of Prime Minister Narendra Modi's third consecutive term in office. Also read: List of finance ministers who presented the Union Budget from 1947 to 2025 Earlier today, an all-party meeting was convened by the Centre ahead of the Budget Session. Congress leader Pramod Tiwari said the Opposition INDIA Bloc will raise “all the issues together” and listed "rising unemployment", the “plight” of farmers, and “the politicisation of Kumbh”, and the alleged preferential treatment for VIPs. Moreover, the opposition is likely to unite on a few issues, such as the state of the economy and India's preparedness to deal with the likely impact of Trump's policies on immigration, visas, and tariffs. Also read: Budget 2025: Comparing India's tax structure to other Asian economies What is the Union Budget 2025? The Union Budget 2025 is an annual financial statement that will provide a proposal of expenditures and revenues of the federal government for the next fiscal year, starting April 1, 2025, till March 31, 2026. Since 2019, various government policies on fiscal, spending, income, and economy have been included in the budget paper, which is also called the bahi-khaata. Notably, this will be Sitharaman's eighth consecutive budget presentation, and she will become the first Finance Minister to achieve this feat. The budget presentation will be broadcast on the official TV channels of the government, Doordarshan and Sansad TV. Moreover, the budget speech will also be streamed on the official YouTube channels of the government. (With inputs from agencies)

Budget Session begins tomorrow, President Murmu to address both Houses of Parliament

The Securities and Exchange Board of India (SEBI) on Thursday (Jan 30) initiated a crackdown on financial influences, also called finfluencers, on giving advice to their followers on the stock market.&nbsp;
In a deathblow to finfluencers, the SEBI has clarified that people who have been providing stock market education will need to do with stock prices with a three-month lag.&nbsp;
It further means that they cannot use live market prices anymore.&nbsp;
Also read: <a href="https://www.wionews.com/india-news/more-trouble-for-sebi-as-officials-raise-red-flags-over-choice-for-ed-role-report-780295" rel="dofollow">More trouble for SEBI as officials raise red flags over choice for ED role: Report</a>
The market regulator has issued a circular, signalling an end to such individuals from using livestock prices while giving advice to their followers.&nbsp;
Earlier in October last year, SEBI had restricted the association of registered and unregistered entities.
However, the latest crackdown will put an end to the final lucrative and questionable business such associations have spawned, which is illegal advisories masquerading as stock market education.
Also read: <a href="https://www.wionews.com/business-economy/sebi-probes-alleged-irregularities-in-piramals-acquisition-of-dhfl-loans-report-776356" rel="dofollow">SEBI probes alleged irregularities in Piramal's acquisition of DHFL loans: Report</a>
The finfluencers are likely to quickly lose their subscribers and students.&nbsp;
The circular further stated that investor education is not prohibited. However, it must be ensured by the persons regulated by the Board that such educators should not provide investment advice without SEBI registration or make performance claims without permission from SEBI.
"A person engaged solely in education shall mean that such person is not engaged in any of the two prohibited activities. Such a person should not be using the market price data of the preceding three months to speak/talk/display the name of any security, including using any code name of the security in his/her talk/speech, video, ticker, screen share, etc. indicating the future price, advice, or recommendation related to security or securities," it said.&nbsp;
Also read:<a href="https://www.wionews.com/business-economy/indias-watchdog-seeks-sebi-chiefs-clarification-on-multiple-allegations-774756" rel="dofollow"> India's watchdog seeks SEBI Chief's clarification on multiple allegations</a>
According to an Indian media channel, these restrictions are also applicable to advertisements, branding and promotional material through third-party marketing agencies.&nbsp;
<h2>Why is SEBI doing this?&nbsp;</h2>
Sebi whole-time member Kamlesh Varshney in August told the Indian news website Mint that finfluencers were "&hellip;misguiding investors who were losing money. We have been getting a lot of complaints from investors. Then we work with technological platforms where unregistered people give advice.&rdquo;
Also read: <a href="https://www.wionews.com/business-economy/sebi-retracts-press-release-on-work-culture-concerns-after-employee-protests-759402" rel="dofollow">SEBI retracts press release on work culture concerns after employee protests</a>
He further said that more than 15,000 content sites have been taken down by them in the last three months after we referred to them.&nbsp;
Many of these finfluencers, sharing such advice, have gained many followers on social media.&nbsp;
(With inputs from agencies)

Business & economy: The SEBI has clarified that people who have been providing stock market education will need to do with stock prices with a three-month lag. 

The Securities and Exchange Board of India (SEBI) on Thursday (Jan 30) initiated a crackdown on financial influences, also called finfluencers, on giving advice to their followers on the stock market. In a deathblow to finfluencers, the SEBI has clarified that people who have been providing stock market education will need to do with stock prices with a three-month lag. It further means that they cannot use live market prices anymore. Also read: More trouble for SEBI as officials raise red flags over choice for ED role: Report The market regulator has issued a circular, signalling an end to such individuals from using livestock prices while giving advice to their followers. Earlier in October last year, SEBI had restricted the association of registered and unregistered entities. However, the latest crackdown will put an end to the final lucrative and questionable business such associations have spawned, which is illegal advisories masquerading as stock market education. Also read: SEBI probes alleged irregularities in Piramal's acquisition of DHFL loans: Report The finfluencers are likely to quickly lose their subscribers and students. The circular further stated that investor education is not prohibited. However, it must be ensured by the persons regulated by the Board that such educators should not provide investment advice without SEBI registration or make performance claims without permission from SEBI. "A person engaged solely in education shall mean that such person is not engaged in any of the two prohibited activities. Such a person should not be using the market price data of the preceding three months to speak/talk/display the name of any security, including using any code name of the security in his/her talk/speech, video, ticker, screen share, etc. indicating the future price, advice, or recommendation related to security or securities," it said. Also read: India's watchdog seeks SEBI Chief's clarification on multiple allegations According to an Indian media channel, these restrictions are also applicable to advertisements, branding and promotional material through third-party marketing agencies. Why is SEBI doing this? Sebi whole-time member Kamlesh Varshney in August told the Indian news website Mint that finfluencers were "…misguiding investors who were losing money. We have been getting a lot of complaints from investors. Then we work with technological platforms where unregistered people give advice.” Also read: SEBI retracts press release on work culture concerns after employee protests He further said that more than 15,000 content sites have been taken down by them in the last three months after we referred to them. Many of these finfluencers, sharing such advice, have gained many followers on social media. (With inputs from agencies)

‘No more stock advices on social media’: SEBI cracks down on finfluencers. Here's why

India&rsquo;s elderly, who&rsquo;ve spent decades contributing to nation-building, find themselves paying the price-- especially at a stage in life when they need support the most. With healthcare costs skyrocketing and limited tax relief, senior citizens are being taxed into despair. &nbsp;&nbsp; &nbsp; Despite paying taxes for decades, seniors face double taxation in their golden years-- taxes on health insurance premiums, life insurance, and even annuities that were supposed to secure their retirement.&nbsp; &nbsp; The current limit under section 80D for health insurance tax deductions is woefully inadequate, especially when medical inflation is at an all-time high. And while other nations provide robust social security benefits, India's elderly are left to fend for themselves with meagre pensions and inadequate healthcare infrastructure. &nbsp;&nbsp; &nbsp; What do senior citizens want?&nbsp; &nbsp; Seniors are now demanding recognition for their contributions. Experts suggest the government must reward their contributions with policies that ease their burden. Tax breaks for health and life insurance premiums should be increased, with parallel increases in allowances for health-care costs for the aged. &nbsp; The 2025 Budget presents a great occasion to address seniors. Ignoring senior citizens who have built this nation would thus be detrimental to the country's aspiration to be inclusive in its growth. Experts say that the government really does not have that much fiscal running room to tackle all their social security needs in these hard days, but any sort of relief would go a long way toward providing such people dignity in their final years.&nbsp;

Business & Economy,  Seniors are now demanding recognition for their contributions. Experts suggest the government must reward their contributions.

India’s elderly, who’ve spent decades contributing to nation-building, find themselves paying the price-- especially at a stage in life when they need support the most. With healthcare costs skyrocketing and limited tax relief, senior citizens are being taxed into despair. Despite paying taxes for decades, seniors face double taxation in their golden years-- taxes on health insurance premiums, life insurance, and even annuities that were supposed to secure their retirement. The current limit under section 80D for health insurance tax deductions is woefully inadequate, especially when medical inflation is at an all-time high. And while other nations provide robust social security benefits, India's elderly are left to fend for themselves with meagre pensions and inadequate healthcare infrastructure. What do senior citizens want? Seniors are now demanding recognition for their contributions. Experts suggest the government must reward their contributions with policies that ease their burden. Tax breaks for health and life insurance premiums should be increased, with parallel increases in allowances for health-care costs for the aged. The 2025 Budget presents a great occasion to address seniors. Ignoring senior citizens who have built this nation would thus be detrimental to the country's aspiration to be inclusive in its growth. Experts say that the government really does not have that much fiscal running room to tackle all their social security needs in these hard days, but any sort of relief would go a long way toward providing such people dignity in their final years.

Budget 2025: Senior citizens demand tax rationalisation

India&rsquo;s tax burden is alarmingly high, and the middle class is paying the price. With individual tax collections soaring by 114 per cent in just three years, economists suggest the government continues to extract more from those who are already struggling. While India's Tax-to-GDP ratio stands at 19 per cent, East Asia, which has grown significantly faster, maintains a lower rate of 14.5 per cent.&nbsp; &nbsp; Why are India&rsquo;s taxes concerning?&nbsp; &nbsp; This excessive taxation is crippling consumption, the backbone of India's economy. Experts suggest that this is a short-sighted approach that risks long-term stagnation.&nbsp; &nbsp; Household savings are at an all-time low. Incomes have stagnated after years of controlling for inflation. Rising debt burdens imply families' spending power is under pressure leading to lower economic activities across the board. This pivots away from India's growth-centered strategies. India's present tax model will only further hinder its middle class while funding subsidies. &nbsp; The Budget 2025 has to tackle these oversights. India must change its strategy from overtaxing the salaried class towards promoting exports and manufacturing for sustainable revenue generation. India inc suggests policies that encourage investment, job creation, and economic dynamism instead of encouraging a freebie culture. Other Asian nations have achieved rapid growth by keeping taxes moderate and business-friendly. India could learn from them.&nbsp; &nbsp; If the government fails to recalibrate its taxation policies, it risks stifling economic momentum by suffocating its biggest economic driver&mdash;the middle class. It is time for a fair and balanced tax regime that fuels growth... But will the government deliver?&nbsp;

Business & Economy, This excessive taxation is crippling the backbone of India's economy. Experts suggest that this is a short-sighted approach that risks long-term stagnation.

India’s tax burden is alarmingly high, and the middle class is paying the price. With individual tax collections soaring by 114 per cent in just three years, economists suggest the government continues to extract more from those who are already struggling. While India's Tax-to-GDP ratio stands at 19 per cent, East Asia, which has grown significantly faster, maintains a lower rate of 14.5 per cent. Why are India’s taxes concerning? This excessive taxation is crippling consumption, the backbone of India's economy. Experts suggest that this is a short-sighted approach that risks long-term stagnation. Household savings are at an all-time low. Incomes have stagnated after years of controlling for inflation. Rising debt burdens imply families' spending power is under pressure leading to lower economic activities across the board. This pivots away from India's growth-centered strategies. India's present tax model will only further hinder its middle class while funding subsidies. The Budget 2025 has to tackle these oversights. India must change its strategy from overtaxing the salaried class towards promoting exports and manufacturing for sustainable revenue generation. India inc suggests policies that encourage investment, job creation, and economic dynamism instead of encouraging a freebie culture. Other Asian nations have achieved rapid growth by keeping taxes moderate and business-friendly. India could learn from them. If the government fails to recalibrate its taxation policies, it risks stifling economic momentum by suffocating its biggest economic driver—the middle class. It is time for a fair and balanced tax regime that fuels growth... But will the government deliver?

Budget 2025: Comparing India's tax structure to other Asian economies

Deepseek's low-cost artificial intelligence (AI) platform has served as a reality check to the world's leading tech giants.&nbsp;The Chinese AI startup's success has ignited a conversation in India over the potential for domestic AI businesses to benefit from this trend.
Many Indian businesses are already working on AI solutions in-house or through strategic alliances. No clear frontrunners have emerged yet. Still, Anand Rathi analysts have identified potential benefactors as L-T-I-Mindtree and latent view analytics.
<h2>Deepseek pushes India to look inward</h2>
According to the broker, latent view has a leg up in the AI preparedness game and also has a small but significant investment in an AI platform.&nbsp;Indian investors are also scouring for domestic AI winners after China's Deepseek created waves in the tech world.
Deepseek released an open-source AI model called R1 that can simulate human reasoning. The Chinese AI firm has raised a fierce debate, challenging everyone's assumptions about AI costs.
US Mega tech firms have invested well over 1.2 trillion dollars since 2017 in AI infrastructure. Besides what Nvidia and energy firms have spent on AI, amazon has put in more than 420 billion dollars.
Google, Meta and Microsoft have spent over 220 billion dollars each. Oracle has invested nearly 60 billion dollars. On the other hand, Deepseek claims its model was developed with less than 6 million dollars.
While Deepseek led a market rout of over one trillion dollars on Monday, global tech stocks have since pared some of those losses. Still, analysts warn the wealth loss could have a bigger impact on broader economies globally.
Separately, several indicators of market health point to Monday's abrupt drop being largely a hit to the world's largest technology companies and shares of AI-related stocks.
Yet, looking beyond tech heavyweights, a majority of S&amp;P 500 stocks ended the day higher and have continued to gain. Still, Deepseek's success is all set to rejig the global approach to AI and big tech firms.
(With inputs from the agencies)

Business & Economy: Indian investors are also scouring for domestic AI winners after China's Deepseek created waves in the tech world. Many Indian businesses are already working on AI solutions in-house or through strategic alliances.

Deepseek's low-cost artificial intelligence (AI) platform has served as a reality check to the world's leading tech giants. The Chinese AI startup's success has ignited a conversation in India over the potential for domestic AI businesses to benefit from this trend. Many Indian businesses are already working on AI solutions in-house or through strategic alliances. No clear frontrunners have emerged yet. Still, Anand Rathi analysts have identified potential benefactors as L-T-I-Mindtree and latent view analytics. Deepseek pushes India to look inward According to the broker, latent view has a leg up in the AI preparedness game and also has a small but significant investment in an AI platform. Indian investors are also scouring for domestic AI winners after China's Deepseek created waves in the tech world. Deepseek released an open-source AI model called R1 that can simulate human reasoning. The Chinese AI firm has raised a fierce debate, challenging everyone's assumptions about AI costs. US Mega tech firms have invested well over 1.2 trillion dollars since 2017 in AI infrastructure. Besides what Nvidia and energy firms have spent on AI, amazon has put in more than 420 billion dollars. Google, Meta and Microsoft have spent over 220 billion dollars each. Oracle has invested nearly 60 billion dollars. On the other hand, Deepseek claims its model was developed with less than 6 million dollars. While Deepseek led a market rout of over one trillion dollars on Monday, global tech stocks have since pared some of those losses. Still, analysts warn the wealth loss could have a bigger impact on broader economies globally. Separately, several indicators of market health point to Monday's abrupt drop being largely a hit to the world's largest technology companies and shares of AI-related stocks. Yet, looking beyond tech heavyweights, a majority of S&P 500 stocks ended the day higher and have continued to gain. Still, Deepseek's success is all set to rejig the global approach to AI and big tech firms. (With inputs from the agencies)

India looking for AI winners tracking Deepseek success

Demand for travel to Prayagraj remains high. The government has imposed some measures after the recent tragic stampede incident at the Maha Kumbh, which has failed to trigger any dip in faith.&nbsp;
With soaring airfares making it even harder for pilgrims, the central government has finally stepped in to control the price surge. This was the second meeting within just six days, led by Civil Aviation Minister K. Ram Mohan Naidu and key officials.&nbsp;
Reports suggest that airlines have taken notice. Indigo, the country's largest carrier, has reduced the fares to Prayagraj by 30-50 per cent. &nbsp;Sources cited by CNBC-TV18 reveal that the government has set a price cap on the Prayagraj routes. They also reveal that Air India is expected to add additional daily flights from Delhi starting February 1
<h2>Airlines on the Radar</h2>
The unprecedented price hikes to Prayagraj following massive demand triggered a lot of backlash from travellers. Social media was abuzz with airfare comparisons to international destinations. The government intervention has now forced airlines to reduce airfares and coordinate with their travel booking partners to ensure no unreasonable hike.&nbsp;
Still, there is more room for reduction. Flights from Mumbai and Hyderabad still remain incredibly high. Currently, there are 132 flights connecting 17 cities to Prayagraj. This number is also expecting a boost as the 'one in 144 years' event enters its final month.
With strict restrictions now in place, the government is trying to balance security concerns and airfare control as demand peaks.

Business & Economy, The unprecedented price hikes to Prayagraj following massive demand triggered a lot of backlash from travellers,  Airlines have now reduced the fares. 

Demand for travel to Prayagraj remains high. The government has imposed some measures after the recent tragic stampede incident at the Maha Kumbh, which has failed to trigger any dip in faith. With soaring airfares making it even harder for pilgrims, the central government has finally stepped in to control the price surge. This was the second meeting within just six days, led by Civil Aviation Minister K. Ram Mohan Naidu and key officials. Reports suggest that airlines have taken notice. Indigo, the country's largest carrier, has reduced the fares to Prayagraj by 30-50 per cent. Sources cited by CNBC-TV18 reveal that the government has set a price cap on the Prayagraj routes. They also reveal that Air India is expected to add additional daily flights from Delhi starting February 1 Airlines on the Radar The unprecedented price hikes to Prayagraj following massive demand triggered a lot of backlash from travellers. Social media was abuzz with airfare comparisons to international destinations. The government intervention has now forced airlines to reduce airfares and coordinate with their travel booking partners to ensure no unreasonable hike. Still, there is more room for reduction. Flights from Mumbai and Hyderabad still remain incredibly high. Currently, there are 132 flights connecting 17 cities to Prayagraj. This number is also expecting a boost as the 'one in 144 years' event enters its final month. With strict restrictions now in place, the government is trying to balance security concerns and airfare control as demand peaks.

Maha Kumbh 2025: Government intervenes to curb airline price hikes

Beyond the market mayhem from deepseek-led tech rout worth over one trillion dollars, the US Federal Reserve will watch closely if the wealth loss would lead to a change in broader consumer spending trend.
The US Central Bank is set to keep rates on hold later on Wednesday. However, the Fed is expected to take into account the real and perceived deepseek threat to markets.
Potentially, deepseek's technology could be a game-changer. Questions are being asked about the huge amounts of money the traditional tech players, the so-called magnificent 7, have been ploughing into AI development.
Deepseek shows that we can do more with existing computing power than previously thought. Moreover, deepseek is offering its model for free right now.&nbsp;Therefore, the market needs to price in a slower adoption rate of high-performance computing and the revenues of companies selling these AI models.
But here's a word of warning. Although the alarm bells are ringing for the 'Magnificent 7' today, things could turn quickly.
<h2 class="MsoNormal">Deepseek tests limits of US Restrictions<o:p></o:p></h2>
There is still uncertainty about exactly how deepseek works, whether it is safe, and how robust it is. The Fed is worried about the stock market and how it feeds back into the real economy.
Primarily, this is via the wealth effect &ndash; will a stock market fall lead to consumers feeling less wealthy and therefore inclined to pull back on spending?&nbsp;This is incredibly important given consumer spending is 70 per cent of the economy. Other effects can come through the corporate sector.
Will it impact financing, or will it also make businesses more cautious about hiring and investment?&nbsp;The fed will remain watchful. If this leads to a broader correction, then the Fed will be much more inclined to cut rates.
The US Central Bank will come under intense pressure to cut rates from President Trump. If a sense of worry starts to hit free-spending households, they may well start to pull back on some of their consumption.
As a result, the Fed will be more inclined to respond with rate cuts. For now, the central bank is expected to pause on Wednesday and keep a close watch.
(With inputs from the agencies)

Business & Economy: The US Central Bank is set to keep rates on hold. However, the Fed is expected to take into account the real and perceived deepseek threat to markets.

Beyond the market mayhem from deepseek-led tech rout worth over one trillion dollars, the US Federal Reserve will watch closely if the wealth loss would lead to a change in broader consumer spending trend. The US Central Bank is set to keep rates on hold later on Wednesday. However, the Fed is expected to take into account the real and perceived deepseek threat to markets. Potentially, deepseek's technology could be a game-changer. Questions are being asked about the huge amounts of money the traditional tech players, the so-called magnificent 7, have been ploughing into AI development. Deepseek shows that we can do more with existing computing power than previously thought. Moreover, deepseek is offering its model for free right now. Therefore, the market needs to price in a slower adoption rate of high-performance computing and the revenues of companies selling these AI models. But here's a word of warning. Although the alarm bells are ringing for the 'Magnificent 7' today, things could turn quickly. Deepseek tests limits of US Restrictions There is still uncertainty about exactly how deepseek works, whether it is safe, and how robust it is. The Fed is worried about the stock market and how it feeds back into the real economy. Primarily, this is via the wealth effect – will a stock market fall lead to consumers feeling less wealthy and therefore inclined to pull back on spending? This is incredibly important given consumer spending is 70 per cent of the economy. Other effects can come through the corporate sector. Will it impact financing, or will it also make businesses more cautious about hiring and investment? The fed will remain watchful. If this leads to a broader correction, then the Fed will be much more inclined to cut rates. The US Central Bank will come under intense pressure to cut rates from President Trump. If a sense of worry starts to hit free-spending households, they may well start to pull back on some of their consumption. As a result, the Fed will be more inclined to respond with rate cuts. For now, the central bank is expected to pause on Wednesday and keep a close watch. (With inputs from the agencies)

Will deepseek-led tech rout lead to Fed rate cut?

India's economic growth is stalling as consumer demand is slowing. The broad expectations from the budget include a boost to consumption through corporate and personal tax cuts.
India's growth story is showing signs of cracks. Analysts expect the government to do something about it in the upcoming budget later this week.
According to Nomura Holdings, the government is predicted to unveil business tax cuts in this week's budget. This is to revitalise a flagging economy.
<h2>Will India cut taxes to revive growth?</h2>
If implemented, the proposal may alleviate investor concerns by increasing business profits. However, concerns over such policies' efficiency in promoting growth have been raised.
Private investments have not recovered after the significant cut in corporate taxes in 2019. Signs of a slowdown in broader consumption are highlighted by Hindustan Unilever's lacklustre earnings in the December quarter.
This has the middle class looking for some tax break. Will the government give in to the middle class's hope to boost demand?
Poor revenue outlook and profit miss have been the narrative in the latest earnings round. For stock market bulls, this earnings season is shaping up to be a replay of the second quarter, signalling further downgrades.
Indian stocks have taken a beating, with the 2 trillion-dollar rally in the nifty index showing signs of cracks. A slowing economy, delayed government spending, and shrinking corporate profits have fuelled a selloff in domestic stocks in the new year.
With the budget around the corner, the government has a chance to reverse the flagging investor sentiment.
The real question is - Will it grab the opportunity?
(With inputs from the agencies)

Business & Economy: According to Nomura Holdings, the government is predicted to unveil business tax cuts in this week's budget. This is to revitalise a flagging economy.

India's economic growth is stalling as consumer demand is slowing. The broad expectations from the budget include a boost to consumption through corporate and personal tax cuts. India's growth story is showing signs of cracks. Analysts expect the government to do something about it in the upcoming budget later this week. According to Nomura Holdings, the government is predicted to unveil business tax cuts in this week's budget. This is to revitalise a flagging economy. Will India cut taxes to revive growth? If implemented, the proposal may alleviate investor concerns by increasing business profits. However, concerns over such policies' efficiency in promoting growth have been raised. Private investments have not recovered after the significant cut in corporate taxes in 2019. Signs of a slowdown in broader consumption are highlighted by Hindustan Unilever's lacklustre earnings in the December quarter. This has the middle class looking for some tax break. Will the government give in to the middle class's hope to boost demand? Poor revenue outlook and profit miss have been the narrative in the latest earnings round. For stock market bulls, this earnings season is shaping up to be a replay of the second quarter, signalling further downgrades. Indian stocks have taken a beating, with the 2 trillion-dollar rally in the nifty index showing signs of cracks. A slowing economy, delayed government spending, and shrinking corporate profits have fuelled a selloff in domestic stocks in the new year. With the budget around the corner, the government has a chance to reverse the flagging investor sentiment. The real question is - Will it grab the opportunity? (With inputs from the agencies)

Will the budget provide tax cuts to revive India's growth story?

Saudi Arabia said that foreigners will be now allowed to invest in firms that own real estate in the two holiest cities of Mecca and Medina.
The move &ldquo;aims to stimulate investment, enhance the attractiveness and efficiency of the capital market, and strengthen its regional and international competitiveness while supporting the local economy,&rdquo; the kingdom's Capital Market Authority said in a statement, according to news agency AFP.
Also read | <a href="https://www.wionews.com/world/saudi-prince-mohammed-bin-salman-vows-600-billion-trade-to-us-president-donald-trump-8648330" rel="dofollow noopener" target="_blank">Saudi Prince Mohammed bin Salman vows $600bn in trade, investments to Donald Trump</a>
Foreign investment &ldquo;in companies owning real estate within the boundaries of Mecca and Madinah will be limited to shares of these Saudi companies listed on the Saudi capital market, convertible debt instruments, or both,&rdquo; it added.
However, the authorities have said that the ownership of non-Saudis cannot exceed 49 per cent.
Also read | <a href="https://www.wionews.com/business-economy/ipos-from-saudi-arabia-have-been-the-star-performers-8639419" rel="dofollow noopener" target="_blank">IPOs from Saudi Arabia have been the star performers</a>
The decision will allow foreigners to invest in companies whose revenues rely on the Islamic pilgrimage, one of the leading sources of revenue for the kingdom.
Saudi Arabia, which already receives millions of Muslims for Hajj and Umrah pilgrimages every year, said that it aims to welcome 30 million pilgrims annually by the year 2030. In 2019, the kingdom earned about $12 billion, according to official data.
Also read | <a href="https://www.wionews.com/world/saudi-arabia-implements-stricter-work-visa-rules-for-indian-workers-read-to-know-in-detail-8621364" rel="dofollow noopener" target="_blank">Saudi Arabia implements stricter work visa rules for Indian workers. Read to know more</a>
Saudi Arabia is the largest economy in the Middle East and the world&rsquo;s biggest exporter of crude oil. It has been engaged in reforms aimed at diversifying the economy with investment and tourism.
The bourse, the Gulf Arab region's largest with a market capitalization of $2.72 trillion, opened foreign investments in 2015 to attract more funds with recent years seeing a flurry of new listings.
Watch | Italian PM Meets Saudi Arabia Crown Prince in Al-Ula city to boost ties, sign deals
<iframe width="600" height="auto" style="width: 100%; aspect-ratio: 4/3;" allowfullscreen="allowfullscreen" class="external-video publive-iframes-block" src="https://cdn.thepublive.com/wion/static/kaltura_player/wion_video_player_iframe.html?thumbnail=wion/media/post_attachments/screenshot/2701_WION_ITALY_SAUDI_9AM/00000002.jpg&amp;videourl=https://vodakm.zeenews.com/vod/WION/2701_WION_ITALY_SAUDI_9AM.mp4/index.m3u8&amp;duration=125&amp;tags=italy, saudi arabia, giorgia meloni, al-ula city," title="Italian PM Meets Saudi Arabia Crown Prince in Al-Ula city to boost ties, sign deals" id="PL_iframe_block-m6g7jm8m-8xcjcf00-jquxrhx6"></iframe>
In 2021, the CMA allowed non-Saudis to invest in real estate funds within the boundaries of Mecca and Medina.
(With inputs from agencies)

Business & economy | World | The decision will allow foreigners to invest in companies whose revenues rely on the Islamic pilgrimage, one of the leading sources of revenue for the kingdom.

Saudi Arabia said that foreigners will be now allowed to invest in firms that own real estate in the two holiest cities of Mecca and Medina. The move “aims to stimulate investment, enhance the attractiveness and efficiency of the capital market, and strengthen its regional and international competitiveness while supporting the local economy,” the kingdom's Capital Market Authority said in a statement, according to news agency AFP. Also read | Saudi Prince Mohammed bin Salman vows $600bn in trade, investments to Donald Trump Foreign investment “in companies owning real estate within the boundaries of Mecca and Madinah will be limited to shares of these Saudi companies listed on the Saudi capital market, convertible debt instruments, or both,” it added. However, the authorities have said that the ownership of non-Saudis cannot exceed 49 per cent. Also read | IPOs from Saudi Arabia have been the star performers The decision will allow foreigners to invest in companies whose revenues rely on the Islamic pilgrimage, one of the leading sources of revenue for the kingdom. Saudi Arabia, which already receives millions of Muslims for Hajj and Umrah pilgrimages every year, said that it aims to welcome 30 million pilgrims annually by the year 2030. In 2019, the kingdom earned about $12 billion, according to official data. Also read | Saudi Arabia implements stricter work visa rules for Indian workers. Read to know more Saudi Arabia is the largest economy in the Middle East and the world’s biggest exporter of crude oil. It has been engaged in reforms aimed at diversifying the economy with investment and tourism. The bourse, the Gulf Arab region's largest with a market capitalization of $2.72 trillion, opened foreign investments in 2015 to attract more funds with recent years seeing a flurry of new listings. Watch | Italian PM Meets Saudi Arabia Crown Prince in Al-Ula city to boost ties, sign deals In 2021, the CMA allowed non-Saudis to invest in real estate funds within the boundaries of Mecca and Medina. (With inputs from agencies)

Saudi Arabia: Mecca, Medina opens for foreign investors to boost development

Shares of small-cap companies spearheaded the selloff in the country's broader equity market on Monday as investor morale suffered from an economic slowdown and lacklustre earnings.
This adds to the pressure on the government to announce measures to boost domestic demand in the budget later this week.
On MSCI's emerging market gauge, domestic shares were among the worst performers in Asia. Nineteen of the top twenty losers were Indian companies.
<h2>India&rsquo;s nine-year record stock rally at risk</h2>
The country's nine-year record rally is at risk as declining consumption casts a shadow over the market and the corporate earnings outlook.
The budget will be released on February 1st, providing investors with additional clues about government spending and the economy. On Monday, the blue-chip Sensex index crashed over 800 points.
The broader Nifty index fell over one per cent to its lowest level since June and is on course for a fourth straight month of decline. Both benchmarks are down about three per cent in January.
India's fear or volatility gauge rose to its highest level since August as investors are clearly in a risk-off mood ahead of the budget.
An index of small-cap stocks fell 3.7 per cent on Monday, bringing its losses from the peak in September to over 17 per cent.
So far in January, foreign investors have continued their flight from domestic shares, withdrawing about 7 billion dollars. The feeling towards Indian shares has been poor.&nbsp;
The subsequent reductions in valuations have not succeeded in luring foreign investors. Once again, domestic funds have outstripped foreign exodus.
(With inputs from the agencies)

Business & Economy: On MSCI's emerging market gauge, domestic shares were among the worst performers in Asia. Nineteen of the top twenty losers were Indian companies.

Shares of small-cap companies spearheaded the selloff in the country's broader equity market on Monday as investor morale suffered from an economic slowdown and lacklustre earnings. This adds to the pressure on the government to announce measures to boost domestic demand in the budget later this week. On MSCI's emerging market gauge, domestic shares were among the worst performers in Asia. Nineteen of the top twenty losers were Indian companies. India’s nine-year record stock rally at risk The country's nine-year record rally is at risk as declining consumption casts a shadow over the market and the corporate earnings outlook. The budget will be released on February 1st, providing investors with additional clues about government spending and the economy. On Monday, the blue-chip Sensex index crashed over 800 points. The broader Nifty index fell over one per cent to its lowest level since June and is on course for a fourth straight month of decline. Both benchmarks are down about three per cent in January. India's fear or volatility gauge rose to its highest level since August as investors are clearly in a risk-off mood ahead of the budget. An index of small-cap stocks fell 3.7 per cent on Monday, bringing its losses from the peak in September to over 17 per cent. So far in January, foreign investors have continued their flight from domestic shares, withdrawing about 7 billion dollars. The feeling towards Indian shares has been poor. The subsequent reductions in valuations have not succeeded in luring foreign investors. Once again, domestic funds have outstripped foreign exodus. (With inputs from the agencies)

Indian stocks under pressure on waning domestic consumption

Business & Economy, taxes are necessary for building the physical and digital infrastructure driving India into its future, The momentum is with the new tax regime.

An income tax revamp is expected in the Union Budget. The Income Tax Act of 1961 will be rewritten. The aim? Make the laws concise, easy to follow, and reduce litigation. The momentum is with the new tax regime, introduced in 2020-21, which 72% of taxpayers now prefer, with many more likely to adopt it after the tax cuts in 2024. The new tax regime offers higher tax-free income, fewer deductions, and ease of filing. With next to no deductions and exemptions available in it, taxpayers are spared the cumbersome paperwork of proof submissions. Tax-free income levels are now at ₹7.75 lakh. If we look at the AY 2023-24 data from the Income Tax Department, we see that 70% tax filers reported a taxable income of 5 lakh or less, which means they had no tax liability1. Furthermore, 88% are under the ₹10 lakh limit, and 94% under ₹15 lakh. From this, we can deduce that nine in 10 taxpayers are either in a no-tax or a low-tax bracket. Most of them will choose the new regime going forward. And therefore, this provides us the opportunity to look at the behavioral shifts triggered by the new regime in the context of troubling new trends and suggest what more could be done. Here are three asks from the Union Budget as far as personal tax is considered. Ask #1 — Enhance The 30% Slab To ₹18 Lakh 21% Inflation But No Change In 30% Slab Slab Limit in 2020 Limit in 2025 Hike 0% ₹ 250,000 ₹ 300,000 20% 5% ₹ 500,000 ₹ 700,000 40% 10% ₹ 750,000 ₹ 1,000,000 33% 15% ₹ 1,000,000 ₹ 1,200,000 20% 20% ₹ 1,250,000 ₹ 1,500,000 20% 25% ₹ 1,500,000 - - 30% > ₹ 1,500,001 > ₹ 1,500,001 0% The 25% slab was discontinued. 21% calculated as CII growth from 301 to 363. The new regime was introduced in 2020. Since then, the Cost Inflation Index (CII) is up 20.59%. Most new regime brackets have been enhanced by at least 20%. Except one. The 30% slab is stuck at the ₹15 lakh level since the start. If we update it by 20%, it needs to be at ₹18 lakh. Without this update, taxpayers with higher income get burdened with a disproportionately higher share of the taxes. More on that in the next point. For the urban salaried—someone with high-interest EMIs, school-going children, and dependent family elders—a higher income compared to the average Indian may offer little consolation due to high inflation in healthcare, education, and costs of living. Such taxpayers, too, deserve some relief. Ask #2 — Fix The Brackets, Not Just Tax-Free Income To expand on the above point, this is also an ask to make the bracket enhancements secular. There are calls to increase tax-free income to ₹10 lakh from the current ₹7.75 lakh. Tax-free income has its benefits. But it is being enabled at the cost of taxpayers on the higher brackets that haven’t been adjusted for inflation for at least half a decade now. To put this into perspective, in AY 2023-24, the bottom 98%2 taxpayers accounted for only 23% of tax payments. The problem isn’t that the other 77% comes from just 2% of taxpayers. The problem is those 2% amount to barely 1.3 million taxpayers. Of them, just 91,000 filers alone—the top 0.1%—with incomes above ₹1 crore accounted for 58% of income tax collections3. Merely increasing tax-free income without bracket enhancement shifts the income tax burden on those with higher incomes. As per our calculations, all earners above ₹19 lakh are now paying excess taxes—which we calculated as the difference between inflation-adjusted taxes and actual taxes. For instance, basis the CII, a taxpayer with a taxable income of ₹25 lakh now pays ₹37,200 a year in excess taxes. Ask #3 – Provide A 30% Deduction, Fix The Incentives One of the key benefits of the new regime is the absence of deductions and exemptions. But five years later, we’re also seeing some troubling trends emerge. Life insurance penetration is dropping4. ELSS inflows are falling during some tremendous years for equity5. Among those surveyed by BankBazaar, fewer salaried respondents are interested in small savings schemes, and interest in NPS remains low6. We postulate that in the absence of tax deductions, interest in essential protections and long-term savings is declining. In the past year, we’ve had an economic slowdown, declining household savings, and stagnant incomes. Simultaneously, there’s increasing reliance on credit for consumption to a point where delinquencies have started to hurt. These are circumstances where low savings and protections can be particularly damaging for households. Excess Taxes Paid Without Inflation Adjustment Taxable Income Total Tax In 2020-21 Total Tax In 2024-25 Indexed Tax Should Be Excess Monthly Taxes ₹ 1,900,000 ₹ 319,800 ₹ 270,400 ₹ 265,179 ₹ 435 ₹ 2,000,000 ₹ 351,000 ₹ 301,600 ₹ 291,050 ₹ 879 ₹ 2,500,000 ₹ 507,000 ₹ 457,600 ₹ 420,405 ₹ 3,100 ₹ 3,000,000 ₹ 663,000 ₹ 613,600 ₹ 549,760 ₹ 5,320 ₹ 3,500,000 ₹ 819,000 ₹ 769,600 ₹ 679,116 ₹ 7,540 ₹ 4,000,000 ₹ 975,000 ₹ 925,600 ₹ 808,471 ₹ 9,761 ₹ 4,500,000 ₹ 1,131,000 ₹ 1,081,600 ₹ 937,826 ₹ 11,981 ₹ 5,000,000 ₹ 1,287,000 ₹ 1,237,600 ₹ 1,067,182 ₹ 14,202 Cost Inflation Index: 363 (2024-25) and 301 (2020-21). 2020-21 used as base year. The point can be made that deductions tied with the right incentives are necessary for fixing this problem. Traditionally, tax deductions have been linked to insurance and savings. The absence of one may be hurting the other. While the new regime had no deductions to start with, a few have now been added. More are needed. In the interest of simplification, a flat deduction of 30% of the gross income should be provided to include long-term savings, essential insurance, healthcare and education costs, and loan payments without confusing caps and sub-limits. The deduction can be capped at ₹15 lakh to ensure equity among income levels. The problem of tax rates also needs to be seen from the perspective of the government. Net income tax collections grew 25% last year. The share of direct taxes in total taxes has risen to a 14-year high of 56.72%, and the largest contributor to this growth is income tax, which provides 54% of all direct taxes. These taxes are necessary for building the physical and digital infrastructure driving India into its future. The government must ensure robust revenue generation. But with income tax, we are at an inflection point. Relief is due in some quarters. The writer is CEO, BankBazaar.com

Budget 2025: Beneath the rising new regime adoption, some issues that must be addressed

If you are planning to visit the 'once in 144 years event,' your flight will be costlier than your recent foreign trip to a nearby country. Airfares to Prayagraj have surged drastically as millions of pilgrims travel for the ongoing Maha Kumbh Mela, one of the world&rsquo;s largest religious gatherings. Ticket prices from major cities like Delhi, Mumbai, and Bengaluru have skyrocketed by as much as 600 per cent. &nbsp;&nbsp; &nbsp; For instance, flights from Delhi to Prayagraj now cost over Rs 21,000, as against the usual Rs 5,000. Return tickets from Delhi to Thailand are almost the same. Even one-way tickets from Mumbai and Bengaluru are between Rs 22,000 and Rs 60,000, which is much more than the normal fare. &nbsp; This hike is attributed to the massive influx of devotees. Over 120 million pilgrims have visited the Kumbh since it began on January 13.&nbsp; &nbsp; Why are airfares skyrocketing?&nbsp; &nbsp; The surge in airfares comes as the Maha Kumbh Mela enters its key bathing days. This includes the significant 'Mauni Amavasya' on January 29. Home Minister Amit Shah and Chief Minister Yogi Adityanath are among the millions gathering at Prayagraj daily. This has led to a surge in service-related costs. This intersection of faith and business has also boosted demand for air travel, reaching unprecedented levels. &nbsp;&nbsp; &nbsp; The Directorate General of Civil Aviation (DGCA) has stepped in to address this issue and urge airlines to follow rational prices.&nbsp; &nbsp; Airlines defend price hikes&nbsp; &nbsp; While the airlines argue that these fare increases are due to supply and demand, critics call it profiteering. The steep rise in fares has also prompted action from Union Civil Aviation Minister Ram Mohan Naidu, who said he would review the situation and explore ways to make air travel more accessible.
As the Kumbh concludes on February 26, more pressure can be expected on the government to ensure fair pricing and accessibility for all pilgrims planning to attend this event.

Business & Economy, The surge in airfares comes as the Maha Kumbh Mela enters its key bathing days. This includes the significant 'Mauni Amavasya' on January 29

If you are planning to visit the 'once in 144 years event,' your flight will be costlier than your recent foreign trip to a nearby country. Airfares to Prayagraj have surged drastically as millions of pilgrims travel for the ongoing Maha Kumbh Mela, one of the world’s largest religious gatherings. Ticket prices from major cities like Delhi, Mumbai, and Bengaluru have skyrocketed by as much as 600 per cent. For instance, flights from Delhi to Prayagraj now cost over Rs 21,000, as against the usual Rs 5,000. Return tickets from Delhi to Thailand are almost the same. Even one-way tickets from Mumbai and Bengaluru are between Rs 22,000 and Rs 60,000, which is much more than the normal fare. This hike is attributed to the massive influx of devotees. Over 120 million pilgrims have visited the Kumbh since it began on January 13. Why are airfares skyrocketing? The surge in airfares comes as the Maha Kumbh Mela enters its key bathing days. This includes the significant 'Mauni Amavasya' on January 29. Home Minister Amit Shah and Chief Minister Yogi Adityanath are among the millions gathering at Prayagraj daily. This has led to a surge in service-related costs. This intersection of faith and business has also boosted demand for air travel, reaching unprecedented levels. The Directorate General of Civil Aviation (DGCA) has stepped in to address this issue and urge airlines to follow rational prices. Airlines defend price hikes While the airlines argue that these fare increases are due to supply and demand, critics call it profiteering. The steep rise in fares has also prompted action from Union Civil Aviation Minister Ram Mohan Naidu, who said he would review the situation and explore ways to make air travel more accessible. As the Kumbh concludes on February 26, more pressure can be expected on the government to ensure fair pricing and accessibility for all pilgrims planning to attend this event.

Maha Kumbh 2025: Record airfares to Prayagraj force DGCA intervention

There is a growing debate on the India growth story. Indian stocks were a hot bet among international fund managers up until a few months ago, with benchmark indices hitting record highs repeatedly. However, that mood has dwindled since late September. Can the upcoming budget revive Indian stocks?

Ahead of the anticipated budget 2025, why is the Indian stock market falling?

Key reasons why Indian stock market is falling ahead of Budget 2025

Indian stocks rage fading, global funds withdraw

In their preparation for what may be a trade battle with the United States, Chinese officials are moving away from decades of tradition.&nbsp;The Chinese government is appealing to its people to help get the world's second-biggest economy out of its slump.
Previously, the government has ridden out economic downturns by increasing investment in infrastructure, manufacturing, and inexpensive loans.&nbsp;That does not look viable now. There are currently more houses, roads, and trains in many regions of China than are necessary.
And in a globe leaning towards protectionism, it's unclear who would purchase China&rsquo;s goods even if its manufacturers produced more of them.
<h2>Will the Chinese finally start spending?</h2>
Analysts say increasing domestic spending is the most obvious strategy to bolster growth and stall a spike in unemployment.&nbsp;However, the question of how to entice the country's 900 million working-age residents remains unanswered.
A country used to steadily rising living standards was taken aback by the aggressive pandemic restrictions that stalled the economy for nearly three years.&nbsp;Millions of Chinese have seen their wealth erode due to the prolonged property crisis. Now, a majority view their job stability and future prospects with a sense of pessimism.
In 2024, a series of stimulus programs proved ineffective because households continued to save for potential economic downturns.&nbsp;More importantly, it is not clear if President Xi Jinping is prepared to take all necessary steps to usher in a new age of domestic demand-driven growth.
The previous two decades have seen a meteoric rise in incomes, with GDP per capita increasing by a factor of 10.&nbsp;But the Chinese have a long history of saving a significant portion of their income &mdash; about a third &mdash; every year.
Household spending at roughly 45 per cent of GDP falls short of 60 per cent to 80 per cent in the majority of OECD nations.&nbsp;The main reason is that China's social benefits for households are weak. Cash and other benefits are lower than in other major economies.
Could China revive household demand by incentivising citizens? That will answer China's growth dynamics in a world leaning towards protectionism.
(With inputs from the agencies)

Business & Economy: Analysts say increasing domestic spending is the most obvious strategy to bolster growth and stall a spike in unemployment. 

In their preparation for what may be a trade battle with the United States, Chinese officials are moving away from decades of tradition. The Chinese government is appealing to its people to help get the world's second-biggest economy out of its slump. Previously, the government has ridden out economic downturns by increasing investment in infrastructure, manufacturing, and inexpensive loans. That does not look viable now. There are currently more houses, roads, and trains in many regions of China than are necessary. And in a globe leaning towards protectionism, it's unclear who would purchase China’s goods even if its manufacturers produced more of them. Will the Chinese finally start spending? Analysts say increasing domestic spending is the most obvious strategy to bolster growth and stall a spike in unemployment. However, the question of how to entice the country's 900 million working-age residents remains unanswered. A country used to steadily rising living standards was taken aback by the aggressive pandemic restrictions that stalled the economy for nearly three years. Millions of Chinese have seen their wealth erode due to the prolonged property crisis. Now, a majority view their job stability and future prospects with a sense of pessimism. In 2024, a series of stimulus programs proved ineffective because households continued to save for potential economic downturns. More importantly, it is not clear if President Xi Jinping is prepared to take all necessary steps to usher in a new age of domestic demand-driven growth. The previous two decades have seen a meteoric rise in incomes, with GDP per capita increasing by a factor of 10. But the Chinese have a long history of saving a significant portion of their income — about a third — every year. Household spending at roughly 45 per cent of GDP falls short of 60 per cent to 80 per cent in the majority of OECD nations. The main reason is that China's social benefits for households are weak. Cash and other benefits are lower than in other major economies. Could China revive household demand by incentivising citizens? That will answer China's growth dynamics in a world leaning towards protectionism. (With inputs from the agencies)

China faces challenge: Can domestic spending revive its slumping economy?

With just a few days to go before the budget, there is a growing debate on India's growth story. Indian stocks were a hot bet among international fund managers until a few months ago when benchmark indices repeatedly hit record highs.<o:p></o:p>
However, that mood has dwindled since late September. At one point, Indian stocks were considered a serious contender to China in the emerging market indexes. Such ambitions are now dwindling as the market is shaken by a slowing economy and foreign outflow. The rupee's value has dropped to new lows versus the dollar, and economic growth has slowed to a four-year low. Since the end of September, foreign funds have sold shares worth over 19 billion dollars in the nifty benchmark, which is poised for its worst monthly losing streak since 2001.<o:p></o:p>
Bloomberg Economics predicts that India's GDP growth in the March quarter might be cut by as much as 50 basis points due to the market selloff. As a result, household spending could be further dampened by the wealth depreciation that follows.&nbsp;This means the government is under even more pressure to turn things around before presenting the budget on February 1.<o:p></o:p>
<h2 class="MsoNormal">Indian stocks rage fading?<o:p></o:p></h2>
Chetan Seth, an Asian Pacific equity strategist at Nomura Holdings, said, "The unbridled enthusiasm in India has faded a bit."&nbsp;He added, "There are clearly more investors now who are asking difficult questions, and there is a healthy debate as opposed to no debate earlier on the India story."<o:p></o:p>
The stock market and corporate profits in India were both bolstered by the government's strong emphasis on infrastructure development and the consumer boom post-pandemic. As a result, the country was a favourite among global equities investors.&nbsp;The total value of firms included in the MSCI India index reached a record high, increasing by about 2 trillion dollars in just over two years.<o:p></o:p>
Just then, the growth story began to show signs of cracks. High inflation dampened demand in metropolitan areas in addition to discouraging the central bank from lowering rates. Investors started to doubt if Indian stocks were worth the premium they were trading at as corporate earnings started to decline.<o:p></o:p>
(With inputs from the agencies)<o:p></o:p>

Business & Economy: Indian stocks were a hot bet among international fund managers until a few months ago when benchmark indices repeatedly hit record highs.

With just a few days to go before the budget, there is a growing debate on India's growth story. Indian stocks were a hot bet among international fund managers until a few months ago when benchmark indices repeatedly hit record highs. However, that mood has dwindled since late September. At one point, Indian stocks were considered a serious contender to China in the emerging market indexes. Such ambitions are now dwindling as the market is shaken by a slowing economy and foreign outflow. The rupee's value has dropped to new lows versus the dollar, and economic growth has slowed to a four-year low. Since the end of September, foreign funds have sold shares worth over 19 billion dollars in the nifty benchmark, which is poised for its worst monthly losing streak since 2001. Bloomberg Economics predicts that India's GDP growth in the March quarter might be cut by as much as 50 basis points due to the market selloff. As a result, household spending could be further dampened by the wealth depreciation that follows. This means the government is under even more pressure to turn things around before presenting the budget on February 1. Indian stocks rage fading? Chetan Seth, an Asian Pacific equity strategist at Nomura Holdings, said, "The unbridled enthusiasm in India has faded a bit." He added, "There are clearly more investors now who are asking difficult questions, and there is a healthy debate as opposed to no debate earlier on the India story." The stock market and corporate profits in India were both bolstered by the government's strong emphasis on infrastructure development and the consumer boom post-pandemic. As a result, the country was a favourite among global equities investors. The total value of firms included in the MSCI India index reached a record high, increasing by about 2 trillion dollars in just over two years. Just then, the growth story began to show signs of cracks. High inflation dampened demand in metropolitan areas in addition to discouraging the central bank from lowering rates. Investors started to doubt if Indian stocks were worth the premium they were trading at as corporate earnings started to decline. (With inputs from the agencies)

India's growth story faces scrutiny as markets slide ahead of Budget 2025

The Indian finance ministry on Saturday (January 25) notified the operationalisation of the Unified Pension Scheme, also known as UPS, for central government employees, effective from April 1.
In a statement, the finance ministry said that the UPS would apply to central government employees who are covered under the National Pension System (NPS) and chose this option under the NPS.
&ldquo;Pension Fund Regulatory and Development Authority (PFRDA) may issue regulations for operationalising the UPS. The effective date for operationalisation of the Unified Pension Scheme shall be April 1, 2025,&rdquo; the statement added.
<h2>What does the UPS offer?</h2>
The UPS would offer 50 per cent of the average basic pay drawn by a central government employee during the 12 months prior to retirement, provided they complete 25 years of service.
Also read | <a href="https://www.wionews.com/business-economy/budget-2025-experts-suggest-income-tax-rationalisation-8652505" rel="dofollow">Budget 2025: Experts suggest income tax rationalisation</a>
Employees with less than 25 years of service but more than 10 years will receive a pension on a proportionate basis.
The contours of the scheme were drawn up following discussions held under the joint consultative machinery, a platform that provides a mechanism for central government staff to resolve differences with the Centre.
In August last year, the Union Cabinet approved the new pension policy for nearly 2.3 million central government employees.&nbsp;
This policy unveiled a framework that guaranteed 50 per cent of basic pay as a monthly pension, responding to requests from central government staff unions who sought guaranteed retirement benefits.
<h2>New vs Old scheme</h2>
Unlike the old pension scheme (OPS), UPS is contributory in nature, wherein employees will be required to contribute 10 per cent of their basic salary and dearness allowance (DA) while the employer's contribution (the central government) will be 18.5 per cent, a report by the news agency PTI said.&nbsp;
Also read | <a href="https://www.wionews.com/business-economy/budget-2025-middle-class-hopes-for-relief-as-tax-reform-takes-centre-stage-8647823" rel="dofollow">Budget 2025: Middle class hopes for relief as tax reform takes centre stage</a>
Under the OPS, effective before January 2004, employees got 50 per cent of their last drawn basic pay as pension.
Employees, under the OPS, were not required to make any contribution. They, however, contributed to the General Provident Fund (GPF). The accumulated amount, along with interest, was paid to the employee at the time of retirement.
As the NPS was less attractive than the OPS, several non-BJP-ruled states decided to go back to the old pension scheme, which offered a DA-linked benefit.
This prompted the Centre to constitute a committee in April 2023 under former Finance Secretary and now Cabinet Secretary-designate TV Somanathan to suggest improvement in the NPS architecture.
(With inputs from agencies)
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Business | UPS would offer 50% of the average basic pay drawn by a central govt employee during the 12 months prior to retirement, provided they complete 25 years of service.

The Indian finance ministry on Saturday (January 25) notified the operationalisation of the Unified Pension Scheme, also known as UPS, for central government employees, effective from April 1. In a statement, the finance ministry said that the UPS would apply to central government employees who are covered under the National Pension System (NPS) and chose this option under the NPS. “Pension Fund Regulatory and Development Authority (PFRDA) may issue regulations for operationalising the UPS. The effective date for operationalisation of the Unified Pension Scheme shall be April 1, 2025,” the statement added. What does the UPS offer? The UPS would offer 50 per cent of the average basic pay drawn by a central government employee during the 12 months prior to retirement, provided they complete 25 years of service. Also read | Budget 2025: Experts suggest income tax rationalisation Employees with less than 25 years of service but more than 10 years will receive a pension on a proportionate basis. The contours of the scheme were drawn up following discussions held under the joint consultative machinery, a platform that provides a mechanism for central government staff to resolve differences with the Centre. In August last year, the Union Cabinet approved the new pension policy for nearly 2.3 million central government employees. This policy unveiled a framework that guaranteed 50 per cent of basic pay as a monthly pension, responding to requests from central government staff unions who sought guaranteed retirement benefits. New vs Old scheme Unlike the old pension scheme (OPS), UPS is contributory in nature, wherein employees will be required to contribute 10 per cent of their basic salary and dearness allowance (DA) while the employer's contribution (the central government) will be 18.5 per cent, a report by the news agency PTI said. Also read | Budget 2025: Middle class hopes for relief as tax reform takes centre stage Under the OPS, effective before January 2004, employees got 50 per cent of their last drawn basic pay as pension. Employees, under the OPS, were not required to make any contribution. They, however, contributed to the General Provident Fund (GPF). The accumulated amount, along with interest, was paid to the employee at the time of retirement. As the NPS was less attractive than the OPS, several non-BJP-ruled states decided to go back to the old pension scheme, which offered a DA-linked benefit. This prompted the Centre to constitute a committee in April 2023 under former Finance Secretary and now Cabinet Secretary-designate TV Somanathan to suggest improvement in the NPS architecture. (With inputs from agencies)

Indian finance ministry notifies Unified Pension Scheme for central govt employees

US President Donald Trump's recent executive orders, signed on the first night of his second presidency, outline a protectionist 'America first trade policy.' This includes imposing global "supplemental tariffs" and threatening a 100 per cent tariff on BRICS nations, including India, if they reduce reliance on the US dollar for foreign trade. &nbsp;&nbsp;
<h2>Will Trump 2.0 impact India's budget?</h2>
Economists believe these measures will have minimal immediate impact on India's budget. The Indian government had already anticipated potential tariff changes when the US election results were announced in November, factoring in these risks during the budget preparation process.&nbsp;
India's finance minister, Nirmala Sitharaman, is expected to maintain a calibrated approach in the upcoming budget, balancing domestic competitiveness and global trade integration. Economists suggest that tariff-related adjustments, including import duties, will not be drastic. While Trump&rsquo;s tariffs may raise global inflation, the Indian government will likely keep input costs in check without making major changes to import duties. &nbsp;&nbsp;
India's long-term commitments in climate and health-related areas are also expected to remain unaffected by US Policy shifts.&nbsp;
While the US has announced 25 per cent tariffs on imports from Mexico and Canada starting February 1, economists point out that the impact on commodity prices could affect India's inflation rates. &nbsp;&nbsp;
Experts like Madan Sabnavis note that higher labour costs in the US could drive up wages, influencing global prices. India is already evaluating responses, including potential trade deals and tariff cuts, to mitigate the effects of these global trade policies.&nbsp;

Business & Economy, India's finance minister, Nirmala Sitharaman, is expected to maintain a calibrated approach in the upcoming budget, India is already evaluating responses.

US President Donald Trump's recent executive orders, signed on the first night of his second presidency, outline a protectionist 'America first trade policy.' This includes imposing global "supplemental tariffs" and threatening a 100 per cent tariff on BRICS nations, including India, if they reduce reliance on the US dollar for foreign trade. Will Trump 2.0 impact India's budget? Economists believe these measures will have minimal immediate impact on India's budget. The Indian government had already anticipated potential tariff changes when the US election results were announced in November, factoring in these risks during the budget preparation process. India's finance minister, Nirmala Sitharaman, is expected to maintain a calibrated approach in the upcoming budget, balancing domestic competitiveness and global trade integration. Economists suggest that tariff-related adjustments, including import duties, will not be drastic. While Trump’s tariffs may raise global inflation, the Indian government will likely keep input costs in check without making major changes to import duties. India's long-term commitments in climate and health-related areas are also expected to remain unaffected by US Policy shifts. While the US has announced 25 per cent tariffs on imports from Mexico and Canada starting February 1, economists point out that the impact on commodity prices could affect India's inflation rates. Experts like Madan Sabnavis note that higher labour costs in the US could drive up wages, influencing global prices. India is already evaluating responses, including potential trade deals and tariff cuts, to mitigate the effects of these global trade policies.

Budget 2025: Managing global risks & domestic competitiveness

With the union budget and monetary policy announcement on the horizon, India faces a challenging economic environment marked by slowing urban demand, uncertain private investment, and global economic headwinds. In such a scenario, the incoming budget needs to put taxpayers first and rationalise their burden while steering growth effectively and keeping inflation under check.&nbsp; &nbsp; Rationalising revenue expenditure&nbsp; &nbsp; Much of the government's spending goes into revenue expenditures such as subsidies and interest payments, leaving little room for productive investments. Almost 60 per cent of this year's budgeted revenue expenditure has already been spent, compared with just 46 per cent of capital expenditure. Rationalising subsidies, especially the food subsidy programme, could free up funds for infrastructure and development projects that boost economic growth.&nbsp; &nbsp; Why focus on taxes?&nbsp; &nbsp; The momentum of urban consumption is weakening. Taxpayers, particularly the middle class, need relief in the form of revised tax slabs or lower rates to stimulate demand. Yet, broadening the tax base is equally vital: less than 7 per cent of Indians file returns, while 60 per cent report zero taxable income. A fairer design of tax may ensure that its burden is distributed more equitably and increase revenue. &nbsp; Why targeted capex is key&nbsp; &nbsp; Public capex is the harbinger of economic activity but cannot be unrealistic or inefficient. Whether it is the roads or the defence sector, the worrying figure of 16 per cent capex contraction stares at us during this fiscal year. Removing the bottlenecks in project execution and setting attainable capex targets will ensure infrastructure development on schedule, create employment, and galvanize growth.
Experts believe that its focus must be on backing growth while controlling inflation rather than defending the rupee. As food inflation has eased and core inflation hasn't changed, easing liquidity and policy rates could help stimulate economic activity without risking instability. &nbsp; &nbsp; For taxpayers, budget 2025 should signal fairness, efficiency, and a commitment to growth-driven fiscal responsibility.&nbsp;

Business & Economy, Rationalising subsidies, especially the food subsidy programme, could free up funds for infrastructure and development projects that boost economic growth. 

With the union budget and monetary policy announcement on the horizon, India faces a challenging economic environment marked by slowing urban demand, uncertain private investment, and global economic headwinds. In such a scenario, the incoming budget needs to put taxpayers first and rationalise their burden while steering growth effectively and keeping inflation under check. Rationalising revenue expenditure Much of the government's spending goes into revenue expenditures such as subsidies and interest payments, leaving little room for productive investments. Almost 60 per cent of this year's budgeted revenue expenditure has already been spent, compared with just 46 per cent of capital expenditure. Rationalising subsidies, especially the food subsidy programme, could free up funds for infrastructure and development projects that boost economic growth. Why focus on taxes? The momentum of urban consumption is weakening. Taxpayers, particularly the middle class, need relief in the form of revised tax slabs or lower rates to stimulate demand. Yet, broadening the tax base is equally vital: less than 7 per cent of Indians file returns, while 60 per cent report zero taxable income. A fairer design of tax may ensure that its burden is distributed more equitably and increase revenue. Why targeted capex is key Public capex is the harbinger of economic activity but cannot be unrealistic or inefficient. Whether it is the roads or the defence sector, the worrying figure of 16 per cent capex contraction stares at us during this fiscal year. Removing the bottlenecks in project execution and setting attainable capex targets will ensure infrastructure development on schedule, create employment, and galvanize growth. Experts believe that its focus must be on backing growth while controlling inflation rather than defending the rupee. As food inflation has eased and core inflation hasn't changed, easing liquidity and policy rates could help stimulate economic activity without risking instability. For taxpayers, budget 2025 should signal fairness, efficiency, and a commitment to growth-driven fiscal responsibility.

Budget 2025: Experts suggest income tax rationalisation

India will once again look at managing its finances in a disciplined manner. The budget on February 1 will likely show the government's commitment to bringing down the fiscal deficit again.&nbsp;
<h2>What exactly is the fiscal deficit?&nbsp;</h2>
It represents the gap between the government's income and expenditure. Think of it as the financial bridge between what the government earns and what it spends. The government is all set to achieve its target for this year.
Finance Minister Nirmala Sitharaman set the stage by announcing a bold fiscal deficit target of 4.9 per cent of GDP for this year &ndash; a significant drop from the previous year. So, how does the government cover the shortfall in revenue? The answer lies in strategic borrowing. The government floats government securities, issues bonds, and even taps into savings schemes to secure the necessary funds.
The Reserve Bank of India also transfers huge sums of money from the excess on its balance sheet. As we approach budget 2025, all eyes are on the finance minister's announcement. The finance commission recommended reducing the fiscal deficit further to 4.5 per cent by FY 2026. With the economic survey projecting GDP growth between 6-6.5 per cent, the government is poised to re-evaluate its fiscal strategy.
Data earlier this month indicated that the nominal growth for this fiscal year is 9.7 per cent, which is below the budget target of 10.5 per cent. India's real growth is projected to have decreased to 6.4 per cent, according to initial advance estimates.
This is due to an unexpected slowdown in the September quarter, during which growth reached a near two-year low of 5.4 per cent. Despite nominal growth data falling short of the objective set in budget 2024, experts predict that restrained capital spending and a surge in revenues will keep the deficit aim in control.

Business & Economy, India will once again look at managing its finances in a disciplined manner, Finance Minister Nirmala Sitharaman announced a bold fiscal deficit target.

India will once again look at managing its finances in a disciplined manner. The budget on February 1 will likely show the government's commitment to bringing down the fiscal deficit again. What exactly is the fiscal deficit? It represents the gap between the government's income and expenditure. Think of it as the financial bridge between what the government earns and what it spends. The government is all set to achieve its target for this year. Finance Minister Nirmala Sitharaman set the stage by announcing a bold fiscal deficit target of 4.9 per cent of GDP for this year – a significant drop from the previous year. So, how does the government cover the shortfall in revenue? The answer lies in strategic borrowing. The government floats government securities, issues bonds, and even taps into savings schemes to secure the necessary funds. The Reserve Bank of India also transfers huge sums of money from the excess on its balance sheet. As we approach budget 2025, all eyes are on the finance minister's announcement. The finance commission recommended reducing the fiscal deficit further to 4.5 per cent by FY 2026. With the economic survey projecting GDP growth between 6-6.5 per cent, the government is poised to re-evaluate its fiscal strategy. Data earlier this month indicated that the nominal growth for this fiscal year is 9.7 per cent, which is below the budget target of 10.5 per cent. India's real growth is projected to have decreased to 6.4 per cent, according to initial advance estimates. This is due to an unexpected slowdown in the September quarter, during which growth reached a near two-year low of 5.4 per cent. Despite nominal growth data falling short of the objective set in budget 2024, experts predict that restrained capital spending and a surge in revenues will keep the deficit aim in control.

Budget 2025: India aims to bring down fiscal deficit on track