<p>Finance Minister Nirmala Sitharaman tabled the union budget 2025-26 on Saturday. Like other budgets, this budget also garnered major attention on social media. The one major announcement on everybody's mind was the increase in the nil tax slab from ₹7 lakhs to ₹12 lakhs.&nbsp;</p>
<p><strong>New Tax regime</strong></p>
<p>₹0-4 lakh -- Nil<br>₹4-8 lakh -- 5%<br>₹8-12 lakh -- 10%<br>₹16-20 lakh -- 20%<br>₹20-24 lakh -- 25%<br>Above ₹24 lakh -- 30%</p>
<p>To calculate the tax rebate on incomes of ₹13 lakhs, ₹15 lakhs, and ₹20 lakhs, here are the numbers:</p>
<p><strong>Income = ₹13,00,000</strong></p>
<p>₹0&ndash;4 lakh: 0% = ₹0<br>₹4&ndash;8 lakh (₹4 lakh): 5% of ₹4,00,000 = ₹20,000<br>₹8&ndash;12 lakh (₹4 lakh): 10% of ₹4,00,000 = ₹40,000<br>₹12&ndash;13 lakh (₹1 lakh): 20% of ₹1,00,000 = ₹20,000</p>
<p><strong>Total Tax = ₹0 + ₹20,000 + ₹40,000 + ₹20,000 = ₹80,000</strong></p>
<p><br><strong>Income = ₹15,00,000</strong></p>
<p>₹0&ndash;4 lakh: 0% = ₹0<br>₹4&ndash;8 lakh (₹4 lakh): 5% of ₹4,00,000 = ₹20,000<br>₹8&ndash;12 lakh (₹4 lakh): 10% of ₹4,00,000 = ₹40,000<br>₹12&ndash;15 lakh (₹3 lakh): 20% of ₹3,00,000 = ₹60,000</p>
<p><strong>Total Tax = ₹0 + ₹20,000 + ₹40,000 + ₹60,000 = ₹1,20,000</strong></p>
<p><br><strong>Income = ₹20,00,000</strong></p>
<p>₹0&ndash;4 lakh: 0% = ₹0<br>₹4&ndash;8 lakh (₹4 lakh): 5% of ₹4,00,000 = ₹20,000<br>₹8&ndash;12 lakh (₹4 lakh): 10% of ₹4,00,000 = ₹40,000<br>₹12&ndash;16 lakh (₹4 lakh): 20% of ₹4,00,000 = ₹80,000<br>₹16&ndash;20 lakh (₹4 lakh): 25% of ₹4,00,000 = ₹1,00,000</p>
<p><strong>Total Tax = ₹0 + ₹20,000 + ₹40,000 + ₹80,000 + ₹1,00,000 = ₹2,40,000</strong></p>
<p>The new tax bill will be tabled next week. While everybody knows about the latest changes, other major announcements have also been made regarding direct income tax.</p>
<h2>TDS &amp; TCS simplifications</h2>
<p>To simplify tax compliance, the government has announced major reforms. This includes increasing the TDS threshold on rent from ₹2.40 lakhs to ₹6 lakhs per year and raising the TCS exemption limit on Liberalised Remittance Scheme (LRS) transactions from ₹7 lakhs to ₹10 lakhs. TCS has also been removed from education-related remittances in education loans. Special focus is on senior citizens. The tax deduction limit on interest income has been doubled to reduce the tax burden among retirees. Tax exemption has also been provided on old National Savings Scheme (NSS) accounts.</p>
<h2>Deduction for NPS Vatsalya Scheme</h2>
<p>Budget 2025 extends tax benefits to the newly launched NPS Vatsalya Scheme. This new scheme allows parents and guardians to open and manage an NPS account for minors for minors until they reach the age of 18 years. The contributions would be eligible for deduction under Sector 80CCD(1B) up to a maximum of ₹50,000. The scheme also allows for partial withdrawals under special circumstances, with no tax deduction for withdrawals less than 25 per cent of the contribution amount.</p>
<h2>Rationalisation of taxation of ULIPs</h2>
<p>Unit-linked insurance plans serve a dual purpose: they are life insurance policies and investment opportunities. Earlier, ULIPs were taxed as income from other sources, with 30 per cent rates. Under the new provisions, ULIPs with annual premiums above ₹2.5 lakhs will be taxed as capital gains instead of income. Long-term capital gains beyond 1 year will be taxed at 12.5 per cent.</p>
<h2>Other notable provisions</h2>
<p>The time limit to file an updated return has been extended from 2 years to 4 years. Rules have also been simplified for self-occupied properties. The annual value of a self-occupied property will be considered as nil.&nbsp;</p>

Business & Economy, The one major announcement on everybody's mind was the increase in the nil tax slab from ₹7 lakhs to ₹12 lakhs. The new tax bill will be tabled next week.

Finance Minister Nirmala Sitharaman tabled the union budget 2025-26 on Saturday. Like other budgets, this budget also garnered major attention on social media. The one major announcement on everybody's mind was the increase in the nil tax slab from ₹7 lakhs to ₹12 lakhs. New Tax regime ₹0-4 lakh -- Nil ₹4-8 lakh -- 5% ₹8-12 lakh -- 10% ₹16-20 lakh -- 20% ₹20-24 lakh -- 25% Above ₹24 lakh -- 30% To calculate the tax rebate on incomes of ₹13 lakhs, ₹15 lakhs, and ₹20 lakhs, here are the numbers: Income = ₹13,00,000 ₹0–4 lakh: 0% = ₹0 ₹4–8 lakh (₹4 lakh): 5% of ₹4,00,000 = ₹20,000 ₹8–12 lakh (₹4 lakh): 10% of ₹4,00,000 = ₹40,000 ₹12–13 lakh (₹1 lakh): 20% of ₹1,00,000 = ₹20,000 Total Tax = ₹0 + ₹20,000 + ₹40,000 + ₹20,000 = ₹80,000 Income = ₹15,00,000 ₹0–4 lakh: 0% = ₹0 ₹4–8 lakh (₹4 lakh): 5% of ₹4,00,000 = ₹20,000 ₹8–12 lakh (₹4 lakh): 10% of ₹4,00,000 = ₹40,000 ₹12–15 lakh (₹3 lakh): 20% of ₹3,00,000 = ₹60,000 Total Tax = ₹0 + ₹20,000 + ₹40,000 + ₹60,000 = ₹1,20,000 Income = ₹20,00,000 ₹0–4 lakh: 0% = ₹0 ₹4–8 lakh (₹4 lakh): 5% of ₹4,00,000 = ₹20,000 ₹8–12 lakh (₹4 lakh): 10% of ₹4,00,000 = ₹40,000 ₹12–16 lakh (₹4 lakh): 20% of ₹4,00,000 = ₹80,000 ₹16–20 lakh (₹4 lakh): 25% of ₹4,00,000 = ₹1,00,000 Total Tax = ₹0 + ₹20,000 + ₹40,000 + ₹80,000 + ₹1,00,000 = ₹2,40,000 The new tax bill will be tabled next week. While everybody knows about the latest changes, other major announcements have also been made regarding direct income tax. TDS & TCS simplifications To simplify tax compliance, the government has announced major reforms. This includes increasing the TDS threshold on rent from ₹2.40 lakhs to ₹6 lakhs per year and raising the TCS exemption limit on Liberalised Remittance Scheme (LRS) transactions from ₹7 lakhs to ₹10 lakhs. TCS has also been removed from education-related remittances in education loans. Special focus is on senior citizens. The tax deduction limit on interest income has been doubled to reduce the tax burden among retirees. Tax exemption has also been provided on old National Savings Scheme (NSS) accounts. Deduction for NPS Vatsalya Scheme Budget 2025 extends tax benefits to the newly launched NPS Vatsalya Scheme. This new scheme allows parents and guardians to open and manage an NPS account for minors for minors until they reach the age of 18 years. The contributions would be eligible for deduction under Sector 80CCD(1B) up to a maximum of ₹50,000. The scheme also allows for partial withdrawals under special circumstances, with no tax deduction for withdrawals less than 25 per cent of the contribution amount. Rationalisation of taxation of ULIPs Unit-linked insurance plans serve a dual purpose: they are life insurance policies and investment opportunities. Earlier, ULIPs were taxed as income from other sources, with 30 per cent rates. Under the new provisions, ULIPs with annual premiums above ₹2.5 lakhs will be taxed as capital gains instead of income. Long-term capital gains beyond 1 year will be taxed at 12.5 per cent. Other notable provisions The time limit to file an updated return has been extended from 2 years to 4 years. Rules have also been simplified for self-occupied properties. The annual value of a self-occupied property will be considered as nil.

India Budget 2025: Tax relief, TCS, TDS & more

<p>Budget 2025-26, recently tabled in Parliament by Finance Minister Nirmala Sitharaman, spotlights substantial budgetary increases in higher education outlays. With enhanced expenditures under heads such as student financial aid, Digital India e-learning, Centres of Excellence (CoE) in Artificial Intelligence (AI) and a variety of premier central institutions such as the Indian Institutions of Technology (IITs), the Indian Institutes of Information Technology (IIITs), Indian Institutes of Management (IIMs), Indian Institute of Science, Education and Research (IISERs), the budget has prioritised inclusion, autonomy and growth for high-performing institutional models.</p>
<p>With the 2020 National Education Policy&rsquo;s ambitious goal of a 50% gross enrolment ratio (GER) in higher education (defined as the number of students enrolled in higher education out of the total population of 18- 23 years) by 2035, how does the budget help visualise the realisation of the policy objective? According to news reports, a nearly 5% increase in GER was reported from 2014-15 to 2020-21, according to the 2024-25 Economic Survey.&nbsp;</p>
<p>Yet, a key ingredient for meeting these goals lies in a robust cadre of higher education teachers who can demonstrate the interdisciplinarity and cross-disciplinary agility promoted by the National Education Policy 2020. This is the context in which India&rsquo;s ongoing and severe teaching faculty shortages demand fresh thinking and urgent action. A Council of Sustainable Development study estimated that meeting the 2035 GER target requires 3.3 million higher education faculty (with a student: teacher ratio of 15:1), a nearly 2.5-fold increase over the existing cadre of teaching faculty. Where will these new teachers come from?</p>
<p>Over the years, budgetary allocations have indicated efforts to bolster a number of programmes to fill the nearly 38% demand-supply gap in high-quality teaching faculty. &nbsp;These include the National Research Professors scheme, the Pandit Madan Mohan Malviya National Mission on Teachers and Teaching, now Malaviya Mission Teacher Training Programme (MMTTP), the PM Research Fellowship and the Global Initiative for Academic Network (GIAN), among many others. While budget outlays for 2025-26 suggest a renewed emphasis on high-profile centrally-funded institutions of excellence to lead the way, the fact remains that India&rsquo;s top centrally funded institutions are subject to the same shortages of teaching faculty. These shortfalls are the tune of a third or more of all open positions at the 45 central universities, according to MHRD 2022 data and similar proportions at the IITs and IIMs.&nbsp;</p>
<h2>Interestingly, the gaps are far larger, not at entry level but at Associate Professor and Professorial positions (60% of vacancies) in central universities, according to MHRD 2022 data.&nbsp;</h2>
<p>The solution? India needs more significant investment in data-driven initiatives that leverage existing databases, such as the All India Survey of Higher Education (AISHE), with newer sources of data from private universities to better match candidates with positions. The proposed National Education Service suggests one such framework. However, open-source job banks would benefit from integration with the Higher Education Statistics &amp; Public Information System (HESPIS) Scheme to help both hiring institutions and qualified candidates find each other. In the long term, with a decentralised, private-led education system, India needs a strengthened knowledge infrastructure in higher education, much like the United States. The US Department of Higher Education maintains, for example, the ERIC - Education Resources Information Center as a clearinghouse for best practices and the National Center for Education Statistics, which provides the data private and public universities need. &nbsp;Together, the knowledge infrastructure supports a vibrant field of institutional research that supports improved decision-making in higher education.</p>
<p>The institutional innovations of NEP 2020 lie at the heart of the 2025-26 budget provisions. Channelling these monies to meet the looming challenges in India&rsquo;s diverse and complex higher education system remains key.&nbsp;</p>

Business & Economy, data suggests that severe supply bottlenecks in the number and quality of teachers at postsecondary institutions hinder the nation’s goals

Budget 2025-26, recently tabled in Parliament by Finance Minister Nirmala Sitharaman, spotlights substantial budgetary increases in higher education outlays. With enhanced expenditures under heads such as student financial aid, Digital India e-learning, Centres of Excellence (CoE) in Artificial Intelligence (AI) and a variety of premier central institutions such as the Indian Institutions of Technology (IITs), the Indian Institutes of Information Technology (IIITs), Indian Institutes of Management (IIMs), Indian Institute of Science, Education and Research (IISERs), the budget has prioritised inclusion, autonomy and growth for high-performing institutional models. With the 2020 National Education Policy’s ambitious goal of a 50% gross enrolment ratio (GER) in higher education (defined as the number of students enrolled in higher education out of the total population of 18- 23 years) by 2035, how does the budget help visualise the realisation of the policy objective? According to news reports, a nearly 5% increase in GER was reported from 2014-15 to 2020-21, according to the 2024-25 Economic Survey. Yet, a key ingredient for meeting these goals lies in a robust cadre of higher education teachers who can demonstrate the interdisciplinarity and cross-disciplinary agility promoted by the National Education Policy 2020. This is the context in which India’s ongoing and severe teaching faculty shortages demand fresh thinking and urgent action. A Council of Sustainable Development study estimated that meeting the 2035 GER target requires 3.3 million higher education faculty (with a student: teacher ratio of 15:1), a nearly 2.5-fold increase over the existing cadre of teaching faculty. Where will these new teachers come from? Over the years, budgetary allocations have indicated efforts to bolster a number of programmes to fill the nearly 38% demand-supply gap in high-quality teaching faculty. These include the National Research Professors scheme, the Pandit Madan Mohan Malviya National Mission on Teachers and Teaching, now Malaviya Mission Teacher Training Programme (MMTTP), the PM Research Fellowship and the Global Initiative for Academic Network (GIAN), among many others. While budget outlays for 2025-26 suggest a renewed emphasis on high-profile centrally-funded institutions of excellence to lead the way, the fact remains that India’s top centrally funded institutions are subject to the same shortages of teaching faculty. These shortfalls are the tune of a third or more of all open positions at the 45 central universities, according to MHRD 2022 data and similar proportions at the IITs and IIMs. Interestingly, the gaps are far larger, not at entry level but at Associate Professor and Professorial positions (60% of vacancies) in central universities, according to MHRD 2022 data. The solution? India needs more significant investment in data-driven initiatives that leverage existing databases, such as the All India Survey of Higher Education (AISHE), with newer sources of data from private universities to better match candidates with positions. The proposed National Education Service suggests one such framework. However, open-source job banks would benefit from integration with the Higher Education Statistics & Public Information System (HESPIS) Scheme to help both hiring institutions and qualified candidates find each other. In the long term, with a decentralised, private-led education system, India needs a strengthened knowledge infrastructure in higher education, much like the United States. The US Department of Higher Education maintains, for example, the ERIC - Education Resources Information Center as a clearinghouse for best practices and the National Center for Education Statistics, which provides the data private and public universities need. Together, the knowledge infrastructure supports a vibrant field of institutional research that supports improved decision-making in higher education. The institutional innovations of NEP 2020 lie at the heart of the 2025-26 budget provisions. Channelling these monies to meet the looming challenges in India’s diverse and complex higher education system remains key.

Higher Education directions: Budgetary implications for 2025

Business & Economy, this year’s budget aims to create a conducive environment for India to become a manufacturing hub for electric vehicles, driving both innovation & job creation

India’s tax-payer friendly budget has signalled a boost to its ongoing efforts towards cleaner energy and transport systems. The Budget 2025 has introduced several measures to support domestic clean technology manufacturing, expand credit access, and enhance climate resilience in agriculture. A notable provision is the expansion of the credit guarantee scheme, which is expected to unlock ₹1.5 lakh crore in additional credit over the next five years for MSMEs, startups, and exporters. This support is aimed at strengthening industries including clean technology and renewable energy. The budget also prioritises boosting domestic manufacturing in key clean energy areas. It focuses on increasing capacity in sectors such as solar PV cells, EV batteries, motors and controllers, electrolysers, wind turbines, high-voltage transmission equipment, and grid-scale energy storage. To further support local production, basic customs duties have been removed on cobalt powder, lithium-ion battery scrap, lead, zinc, and 12 additional critical minerals—a follow-up to the July 2024 policy that exempted 25 key minerals from import duties. This measure is expected to lower input costs, secure raw material supply chains, and promote job creation in renewable energy and electric mobility sectors. It also has the potential to spur investments in domestic manufacturing and promote sustainable mobility in India. The EV industry, which was looking forward to a favourable tax structure that caters to different automotive technologies, did not find a mention in the Union Budget. In the agricultural sector, the budget has announced the National Mission on High Yielding Seeds. This mission will focus on enhancing research, developing pest-resistant and climate-resilient crops, and ensuring the commercial availability of over 100 improved seed varieties released since July 2024. Alongside this, the Kisan Credit Card (KCC) loan limit has been increased from ₹3 lakh to ₹5 lakh, providing greater financial flexibility for around 7.7 crore rural entrepreneurs to invest in agricultural productivity and rural livelihoods. This has the potential to boost credit availability for climate-friendly agricultural practices. Finally, the budget announcement about renewed support for nuclear energy with the introduction of a ₹20,000 crore Nuclear Energy Mission aimed at developing Small Modular Reactors (SMRs), signals India’s focus on cutting emissions in energy production. The initiative targets the operationalisation of at least five indigenously developed SMRs by 2033, positioning nuclear energy as a secure, low-carbon option to support long-term energy security and sustainability. Overall, this year’s budget aims to create a conducive environment for India to become a manufacturing hub for electric vehicles, driving both innovation and job creation in the process. On adaptation The Prime Minister Dhan-Dhaanya Krishi Yojana that targets 100 districts with low productivity by boosting agricultural output, promoting crop diversification, and enhancing post-harvest storage and irrigation, can add immensely to India’s climate adaptation efforts. Modernising agriculture and diversifying rural income sources alongside improved credit access for farmers, can reduce the risks of climate variability while increasing productivity. The six-year Mission for Aatmanirbharta in Pulses reinforces this approach by seeking to leverage past successes in food security and sustainable practices. The reforms can be complemented by the Rural Prosperity and Resilience programme that seeks to to generate diverse employment opportunities in rural India, according to the minister. Focus on under-employed groups—including rural women, young farmers, and landless families—and incorporating global best practices and multilateral support, can help improve long-standing economic vulnerabilities, making more resources available to climate-hit communities. Also, the Urban Challenge Fund announced in the budget that seeks to allocate up to 1 lakh crore rupees to modernise urban infrastructure and boost climate adaptation in Indian cities seeks to support projects under initiatives such as ‘Cities as Growth Hubs’, ‘Creative Redevelopment of Cities’, and improved ‘Water and Sanitation.’ The fund can help enhance the capacity of urban areas to adapt to extreme weather, mitigate urban heat islands, and manage water resources more effectively. With a financing model covering up to 25% of project costs—requiring at least 50% funding from bonds, bank loans, and PPPs—and an initial allocation of ₹10,000 crore for 2025-26, the initiative is designed to drive resilient urban growth while integrating adaptation measures into the redevelopment process. Budget Estimate Comparison 2024-25 and 2025-26 2025-26 2024-25 Budget Estimates (In Rs crores) Budget Estimates (In Rs crores) Revised Estimates (In Rs crores) Min of Heavy Industries 7680.23 7242 4560.63 Min of New & Renewable Energy 26549.38 19100 17298.44 Min of Environment, Forests and Climate Change 3412.82 3330.37 3125.96 Min of Power 21847 20502 19845 Min of Coal 501.20 192.55 141.21 Min of Housing and Urban Affairs 96777 82576.57 63699.93 Min of Petroleum and Natural Gas 19326.90 15930.26 17367.70 Expert Quotes: On Clean Transition Shruti Sharma, Lead Energy Program, International Institute for Sustainable Development “India’s Union Budget takes a critical step forward by incentivizing electricity distribution reforms and enhancing intra‐state transmission capacity, which will undoubtedly improve the financial health of our DISCOMs—the linchpin of the renewable energy transition. However, while measures like the Revamped Distribution Sector Scheme have already helped trim subsidies by about 3%, we must urgently address the elephant in the room: consumption subsidies, which now represent over 93% of total energy subsidies. If left unchecked, these subsidies will only escalate as electrification spreads across all sectors, potentially undermining the very reforms designed to make our energy system more efficient and resilient. Unchecked, consumption subsidies are like a tinderbox waiting to ignite, threatening to undo hard-won reform gains as electrification accelerates. Missing from the budget was any mention of PM-KUSUM—a beacon for transforming agriculture that now goes largely unnoticed. With farmers collectively pocketing nearly 75% of all electricity subsidies, solar irrigation isn't just a green initiative; it's the lƒer that could shift demand to daylight hours and power our renewable future. Earlier last year, the scheme received an extension till 2026 - that is a positive step, but without a clear political push in the budget, the signal to states and private developers remains dim, leaving a golden opportunity unlit." “This year's budget has re-ignited the call for clean-tech manufacturing—setting the stage for a transformative revolution in our domestic production of solar PV cells, EV batteries, motors, electrolyzers, wind turbines, and more. Hopefully, this isn't just policy talk; and is a rallying cry that echoes through the corridors of industry, energizing private investment as seen in the early successes of the PLI schemes for high-efficiency solar modules, advanced batteries, and green hydrogen. The budget's focus on these initiatives, through the Make in India mission, lights the path for India to emerge as a powerhouse in clean energy technologies.” Rishbah Jain, Senior Programme Lead, Council for Energy Environment & Water “The union budget has rightfully focussed on doubling down on making domestic manufacturing and exports competitive, which would create new jobs, economic growth, and a stable energy transition. Currently, for many clean energy equipment manufacturers, it is increasingly becoming difficult to compete with Chinese giants on artificial selling costs and overcapacities. CEEW analysis suggests that with backward and forward integration, India has potential competitiveness in many clean energy components such as battery anodes, solar wafers, silver paste, wind turbine gearbox, etc. However, lack of minerals and technological capabilities to process them, import reliance for manufacturing equipment, limited skilled workforce and trade barriers are often limiting factors. The new initiatives such as the National Manufacturing Mission, Export Promotion Mission, Bharat Trade Net and the National Centres of Excellence for Skilling are welcome initiatives, but these need to be followed up through inter-ministerial actions and close collaborations between the state and central governments. Further, with rapidly changing technology, the industries need to also invest in R&D and can potentially tap the talent from the PM Researcher Fellowship.” Labanya Jena, Sustainable Finance Specialist “India’s push for nuclear energy is bold, but with high capex and tail risks, the key challenge remains—who will fund it, and who will bear the risks? India’s ₹10,000 crore Fund of Funds can be a game-changer, but earmarking a portion for climate solutions for clean technologies in India will support the country’s climate action solutions. India can also be a climate tech hub. The National Manufacturing Mission’s focus on clean tech is a step in the right direction. However, the real question is: Can India’s green industry compete with China, where there are massive subsidies for green industries? “Enhancing credit access for MSMEs is crucial but directing it towards energy efficiency and rooftop solar will reduce costs and align India’s small businesses with its climate ambitions. “The Urban Challenge Fund must prioritise pollution control and climate adaptation—without it, our cities risk becoming economic hubs struggling with environmental distress.” Aarti Khosla, Director, Climate Trends "The Union Budget presents an ambitious framework to boost its transition economy. With the announcement of the National Manufacturing Mission at its core, the document provides a vision to plug India’s supply chain vulnerabilities by further boosting the ‘Make In India’ vision in the current geopolitical context. Solar energy gets the highest allocation of Rs 24224 crore, with a clear focus on rooftop solar with the PM Surya Ghar Yojana. The announcement for a Nuclear Mission with the aim for 100 GW of non-fossil based energy by 2047 is a clear indication that the government is looking at options to decrease its baseload reliance on coal. However, the issues of safety associated with nuclear energy still loom large. Just 10 days before the deadline for submission of revised NDCs to the UNFCCC, India has shown its intent for climate action very clearly." Karthik Ganesan, Fellow & Director - Strategic Partnerships, Council for Energy Environment & Water "This budget provides a shot in the arm for a sector that has not received consistent funding , despite being one of the older nuclear programmes in the world. The R&D efforts needed for an indigenous modular reactor are significant and the 2033 timeline for 5 reactors would put it as one of the fastest to market. International collaboration to accelerate the development and learn from what other countries have done would also be a welcome step. " On Sustainable Transport Mahua Acharya, Founder CEO, INTENT and former MD & CEO, Convergence Energy Services Limited, Govt of India “The specific focus on Budget 2025 on clean tech manufacturing is obviously a welcome step. We must do all we can to produce in India - and to that extent, the recognition of the need for batteries and raw materials is a really welcome step! The manufacturing mission is an excellent move - and the recognition of the need for grid scale batteries, EV batteries, PV cells is spot on as India looks to transition rapidly into greener growth.” Randheer Singh, CEO, ForeSee Advisor & Former director E-Mobility, NITI Aayog “The Union Budget 2025 signals a strong commitment to India’s clean mobility and energy transition. The focus on expanding the EV ecosystem, strengthening domestic battery manufacturing, and supporting startups and alternative investment funds (AIFs) is a welcome step toward sustainability and self-reliance. The emphasis on lithium-ion and alternative battery chemistries, along with measures to enhance green financing, will be instrumental in accelerating EV adoption and energy storage solutions. However, while the budget lays a solid foundation, certain areas warrant further attention. A more comprehensive roadmap for commercial megawatt level charging infrastructure, incentives for fleet electrification, and clarity on execution frameworks will be critical to ensuring effective implementation. Additionally, broader environmental sustainability measures, such as targeted pollution reduction strategies in urban areas and deeper interventions for river rejuvenation, remain areas where more focused initiatives could have further strengthened the vision for a cleaner and greener India. Similarly, as the economy continues its growth trajectory, proactive measures to address food price inflation and ensure supply chain resilience will be key to maintaining economic stability. While this budget provides a strong directional push, the industry now looks forward to further policy refinements and execution strategies that will drive long-term impact.” Prashant Rathee, Founder, The Energy Company “While the U.S. is rolling back its EV mandates, India is taking a forward-looking approach by strengthening its battery ecosystem. The exemption of basic customs duty on capital goods for cell manufacturing paves the way for domestic sourcing, reducing dependence on imports. For Battery and Vehicle OEMs, this will lower working capital needs, improve supply chain stability, and enable closer R&D collaboration for optimized battery packs in future. A stronger local battery ecosystem ensures India stays ahead in clean energy innovation, making energy storage more affordable, scalable, and competitive.” On Adaptation Prof Sachchida Nand Tripathi, Dean, Kotak School of Sustainability, IIT Kanpur “The Union Budget 2025-26 has the theme of clean transition and sustainability embedded in it The focus on clean-tech manufacturing, investments in PM Surya Ghar yojana, exempting the Basic Custom Duty on critical minerals and impetus on sustainable transport are signals that India is investing in a climate-friendly economy. However, focussed initiatives to target air pollution, river rejuvenation for water security and adaptation measures beyond agriculture would have further strengthened India’s vision for a cleaner greener future.” Abinash Mohanty, Global Sector-Head Climate Change and Sustainability, IPE-Global “The Union Budget 2025 marks a significant step in India's journey towards energy transition and net-zero goals. With a strong focus on the Atmanirbhar Mission, the budget underscores our nation’s commitment to clean energy, economic resilience, and sustainability. The much-anticipated push for nuclear power and cleaner energy alternatives sends a clear message—India is strengthening its position as a global thought leader in low-carbon development. Through a walk-the-talk green growth and green transition budget speech that tries to climate-proof the trinity of jobs, growth, and sustainability misses patenting the invaluable grains of climate adaptation. Yet, while the budget increases the allocation for the Ministry of Environment, Forest, and Climate Change (MoEFCC), we must recognize a crucial gap—the lack of a robust climate adaptation strategy -- which is a subtle miss in the budget speech. Social protection policies, particularly those aimed at vulnerable communities, must have been fortified to withstand climate shocks through an ear-marked budgetary allocation. Climate Adaptation is not an option—it is an imperative. The world is facing unprecedented geopolitical pushback on the climate agenda, and India should have ensured that its fiscal policies reflect this reality through an enhanced budgetary allocation.” On Jal Jeevan Mission Nitin Bassi, Senior Programme Lead, Council for Energy Environment & Water “The extension of Jal Jeevan Mission to 2028 is a big step to ensure the safety of domestic water supply services in rural India, which will also help cover the remaining 20% of the rural households (about 3.9 crores) with tap connections. CEEW research highlights, there is a need to ensure the reliability and potability of water supply as well, in addition to creating infrastructure. This extension will work towards that by focusing on the quality of water supply infrastructure, and efficient operations and maintenance through community participation. Additionally, there should be a focus on ensuring the quality of supplied water and strengthening the data monitoring infrastructure.” On Agriculture Devinder Sharma, Agriculture Trade Policy Expert “The government has kept agriculture as one of the top priorities, but this has been the case for the last eight years. However, the government has not talked about farmers’ income or agriculture income, which should be the prime concern. Without considering this, just keeping it as a top priority wouldn’t make any difference because if farmers do not have a stable income, they will not be able to deal with the challenges posed by climate change. There will be no capacity to deal with extreme weather events. I believe that we need to work on this and the same should have been included in the budget which is missing.” On Sustainable Cities Prof Anjal Prakash, Clinical Associate Professor (Research) and Research Director, Bharti Institute of Public Policy. Prof Prakash has just been nominated as lead author of IPCC AR7’s upcoming report on Cities and Climate Change. "The Economic Survey 2025 highlights the commitment to fostering sustainable urban growth through strategic infrastructure development. The government’s initiatives, including the expansion of metro rail networks and the transformative effects of the Swachh Bharat Abhiyan, illustrate significant advancements in urban mobility and sanitation. With projects like the Pradhan Mantri Awas Yojana - Urban aimed at providing housing for millions and the Smart Cities Mission, the focus is on creating liveable, connected, and environmentally friendly urban spaces. The integration of vertical gardens, exemplified in various initiatives, underscores the importance of innovative, eco-conscious practices that enhance urban aesthetics and improve air quality. These efforts ensure that India is not only building infrastructure but also investing in the well-being of its citizens, paving the way for a resilient and sustainable urban future."

Implications of the union budget 2025-26 on India’s sustainable development

<p>Finance minister Nirmala Sitharaman presented the Union Budget for 2025-26, initiating transformative reforms across six key sectors to bolster growth potential over the next five years. One of the pivotal areas outlined in the budget is the financial sector, which includes insurance, pensions, Bilateral Investment Treaties (BIT), and other related areas.&nbsp;</p>
<p>The Budget 2025 brings big relief for the middle class with a revised tax structure, ensuring a more progressive and inclusive taxation system. Income up to ₹12 lakh now enjoys significantly lower tax rates, reducing the financial burden on salaried individuals and small business owners. &nbsp;</p>
<h2>FDI in Insurance sector&nbsp;</h2>
<p>A significant reform announced in the budget concerns the foreign direct investment (FDI) limit in the insurance sector. The Finance Minister revealed that the FDI cap would be raised from 74% to 100%. This change will be applicable to companies that commit to investing the entire premium in India. &nbsp;</p>
<p>Additionally, the government will review and simplify the current guidelines and conditionalities associated with foreign investment in the insurance sector. The move is expected to encourage greater foreign participation, foster innovation, and improve the overall efficiency of the insurance industry, making it more competitive on a global scale.&nbsp;</p>
<h2>Pension sector&nbsp;</h2>
<p>Another noteworthy announcement pertains to the pension sector. In a bid to foster growth and development within this space, a forum for regulatory coordination will be set up. This forum will also focus on the creation and development of new pension products. The government's emphasis on this area underscores its commitment to enhancing financial security for citizens and creating a robust pension ecosystem in the country. It is expected that these reforms will attract more investments and provide better options for individuals to plan for their retirement.&nbsp;</p>
<h2>KYC simplification&nbsp;</h2>
<p>The government is also taking significant steps to simplify the Know Your Customer (KYC) process, a key requirement for various financial transactions. As part of the broader digital transformation agenda, a revamped Central KYC Registry will be rolled out in 2025. This updated system will make it easier for individuals and institutions to manage their KYC data, thus streamlining the process for both customers and businesses. &nbsp;</p>
<p>Additionally, a more efficient mechanism for periodic KYC updates will be implemented. These changes are aimed at improving customer experience while ensuring compliance with regulatory standards.&nbsp;</p>
<h2>Merger of companies&nbsp;</h2>
<p>Another area where the Union Budget proposes reforms is the process for company mergers. The Finance Minister announced that the procedures for obtaining approvals for mergers will be rationalised. This includes simplifying the process and widening the scope for fast-track mergers. The aim is to make mergers and acquisitions (M&amp;A) more efficient and less time-consuming, which could, in turn, promote greater consolidation in various sectors and encourage business growth.&nbsp;</p>
<h2>Bilateral investment treaties&nbsp;</h2>
<p>In the spirit of fostering sustained foreign investment, the government is revising its approach to Bilateral Investment Treaties (BIT). The current model BIT will be revamped to make it more investor-friendly, encouraging greater international participation in the Indian market. This move aligns with the broader vision of making India an attractive investment destination and facilitating economic growth through increased foreign inflows. &nbsp;</p>
<p>The Union Budget 2025-26 presents a comprehensive set of reforms aimed at transforming India&rsquo;s financial sector. These changes, particularly in the insurance, pension, and FDI sectors, are designed to create a more competitive, efficient and investor-friendly environment. &nbsp;</p>

Business & Economy, One of the pivotal areas outlined in the budget is the financial sector, which includes insurance, pensions, Bilateral Investment Treaties (BIT)

Finance minister Nirmala Sitharaman presented the Union Budget for 2025-26, initiating transformative reforms across six key sectors to bolster growth potential over the next five years. One of the pivotal areas outlined in the budget is the financial sector, which includes insurance, pensions, Bilateral Investment Treaties (BIT), and other related areas. The Budget 2025 brings big relief for the middle class with a revised tax structure, ensuring a more progressive and inclusive taxation system. Income up to ₹12 lakh now enjoys significantly lower tax rates, reducing the financial burden on salaried individuals and small business owners. FDI in Insurance sector A significant reform announced in the budget concerns the foreign direct investment (FDI) limit in the insurance sector. The Finance Minister revealed that the FDI cap would be raised from 74% to 100%. This change will be applicable to companies that commit to investing the entire premium in India. Additionally, the government will review and simplify the current guidelines and conditionalities associated with foreign investment in the insurance sector. The move is expected to encourage greater foreign participation, foster innovation, and improve the overall efficiency of the insurance industry, making it more competitive on a global scale. Pension sector Another noteworthy announcement pertains to the pension sector. In a bid to foster growth and development within this space, a forum for regulatory coordination will be set up. This forum will also focus on the creation and development of new pension products. The government's emphasis on this area underscores its commitment to enhancing financial security for citizens and creating a robust pension ecosystem in the country. It is expected that these reforms will attract more investments and provide better options for individuals to plan for their retirement. KYC simplification The government is also taking significant steps to simplify the Know Your Customer (KYC) process, a key requirement for various financial transactions. As part of the broader digital transformation agenda, a revamped Central KYC Registry will be rolled out in 2025. This updated system will make it easier for individuals and institutions to manage their KYC data, thus streamlining the process for both customers and businesses. Additionally, a more efficient mechanism for periodic KYC updates will be implemented. These changes are aimed at improving customer experience while ensuring compliance with regulatory standards. Merger of companies Another area where the Union Budget proposes reforms is the process for company mergers. The Finance Minister announced that the procedures for obtaining approvals for mergers will be rationalised. This includes simplifying the process and widening the scope for fast-track mergers. The aim is to make mergers and acquisitions (M&A) more efficient and less time-consuming, which could, in turn, promote greater consolidation in various sectors and encourage business growth. Bilateral investment treaties In the spirit of fostering sustained foreign investment, the government is revising its approach to Bilateral Investment Treaties (BIT). The current model BIT will be revamped to make it more investor-friendly, encouraging greater international participation in the Indian market. This move aligns with the broader vision of making India an attractive investment destination and facilitating economic growth through increased foreign inflows. The Union Budget 2025-26 presents a comprehensive set of reforms aimed at transforming India’s financial sector. These changes, particularly in the insurance, pension, and FDI sectors, are designed to create a more competitive, efficient and investor-friendly environment.

Budget 2025: Simplified KYC process coming in 2025 with new central registry

<p>Finance Minister Nirmala Sitharaman has placed the middle class at the centre of Budget 2025, offering a significant tax relief that will ease financial burdens on millions of taxpayers. &nbsp;</p>
<p>The highlight of this year&rsquo;s budget is zero income tax for earnings up to ₹12 lakh. For salaried individuals, the exemption limit extends to ₹12.75 lakh, factoring in the ₹75,000 standard deduction. This announcement is expected to boost disposable income, encourage spending, and provide much-needed financial relief.</p>
<p><img class="WACImage SCXW118161244 BCX8" unselectable="on" src="https://img-cdn.thepublive.com/fit-in/580x348/filters:format(webp)/wion/media/post_attachments/bdb7e82a-115.png" srcset=""></p>
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<h2 class="Paragraph SCXW206877242 BCX8" paraid="1616019033" paraeid="{ea5885df-2ad6-41d7-86a3-41c6350685ac}{81}"><span data-contrast="auto" xml:lang="EN-IN" lang="EN-IN" class="TextRun SCXW206877242 BCX8"><span class="NormalTextRun SCXW206877242 BCX8">A shift in capital expenditure strategy</span></span><span class="EOP SCXW206877242 BCX8" data-ccp-props="{}">&nbsp;</span></h2>
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<p class="Paragraph SCXW206877242 BCX8" paraid="1472594990" paraeid="{ea5885df-2ad6-41d7-86a3-41c6350685ac}{87}"><span data-contrast="auto" xml:lang="EN-IN" lang="EN-IN" class="TextRun SCXW206877242 BCX8"><span class="NormalTextRun SCXW206877242 BCX8">In </span><span class="NormalTextRun SCXW206877242 BCX8">previous</span><span class="NormalTextRun SCXW206877242 BCX8"> budgets, Sitharaman prioritised large capital expenditures, focusing on infrastructure projects such as railways, highways, and urban development. However, this year&rsquo;s budget takes a more measured approach. The government has </span><span class="NormalTextRun SCXW206877242 BCX8">allocated</span><span class="NormalTextRun SCXW206877242 BCX8"> ₹11.2 lakh crore for capital expenditure in 2025-26, a modest increase from ₹11.1 lakh crore in the </span><span class="NormalTextRun SCXW206877242 BCX8">previous</span><span class="NormalTextRun SCXW206877242 BCX8"> budget. This is a notable slowdown compared to the 11% rise in the last budget, signalling a shift towards balancing growth with fiscal prudence.</span></span><span class="EOP SCXW206877242 BCX8" data-ccp-props="{}">&nbsp;</span></p>
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<h2 class="Paragraph SCXW206877242 BCX8" paraid="1654345592" paraeid="{ea5885df-2ad6-41d7-86a3-41c6350685ac}{93}"><span data-contrast="auto" xml:lang="EN-IN" lang="EN-IN" class="TextRun SCXW206877242 BCX8"><span class="NormalTextRun SCXW206877242 BCX8">Maintaining fiscal discipline</span></span><span class="EOP SCXW206877242 BCX8" data-ccp-props="{}">&nbsp;</span></h2>
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<p class="Paragraph SCXW206877242 BCX8" paraid="2068097785" paraeid="{ea5885df-2ad6-41d7-86a3-41c6350685ac}{99}"><span data-contrast="auto" xml:lang="EN-IN" lang="EN-IN" class="TextRun SCXW206877242 BCX8"><span class="NormalTextRun SCXW206877242 BCX8">Sitharaman has </span><span class="NormalTextRun SCXW206877242 BCX8">maintained</span><span class="NormalTextRun SCXW206877242 BCX8"> her reputation for financial prudence by keeping the fiscal deficit at 4.4% for the next </span><span class="NormalTextRun SCXW206877242 BCX8">financial year</span><span class="NormalTextRun SCXW206877242 BCX8">. This is lower than the expected 4.5%, </span><span class="NormalTextRun SCXW206877242 BCX8">demonstrating</span><span class="NormalTextRun SCXW206877242 BCX8"> the government&rsquo;s commitment to economic stability while ensuring that resources are </span><span class="NormalTextRun SCXW206877242 BCX8">allocated</span><span class="NormalTextRun SCXW206877242 BCX8"> effectively. The decision to moderate capital expenditure growth while expanding tax relief highlights the government&rsquo;s strategy of supporting economic activity without compromising fiscal discipline.</span></span><span class="EOP SCXW206877242 BCX8" data-ccp-props="{}">&nbsp;</span></p>
</div>
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<h2 class="Paragraph SCXW206877242 BCX8" paraid="341835873" paraeid="{ea5885df-2ad6-41d7-86a3-41c6350685ac}{105}"><span data-contrast="auto" xml:lang="EN-IN" lang="EN-IN" class="TextRun SCXW206877242 BCX8"><span class="NormalTextRun SCXW206877242 BCX8">Focus on Viksit Bharat roadmap</span></span><span class="EOP SCXW206877242 BCX8" data-ccp-props="{}">&nbsp;</span></h2>
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<div class="OutlineElement Ltr SCXW206877242 BCX8">
<p class="Paragraph SCXW206877242 BCX8" paraid="1106988722" paraeid="{ea5885df-2ad6-41d7-86a3-41c6350685ac}{111}"><span data-contrast="auto" xml:lang="EN-IN" lang="EN-IN" class="TextRun SCXW206877242 BCX8"><span class="NormalTextRun SCXW206877242 BCX8">While focusing on tax relief and economic stability, the Viksit Bharat 2047 vision </span><span class="NormalTextRun SCXW206877242 BCX8">remains</span><span class="NormalTextRun SCXW206877242 BCX8"> a key priority. Sitharaman has detailed plans to rejuvenate key sectors, particularly agriculture and small industries, recognising them as engines of economic growth. The budget also prioritises human </span><span class="NormalTextRun SCXW206877242 BCX8">capacity</span><span class="NormalTextRun SCXW206877242 BCX8"> building, with a strong emphasis on skill development and workforce training. These initiatives are expected to enhance employability, address job creation concerns, and strengthen the long-term growth trajectory of the economy.</span></span><span class="EOP SCXW206877242 BCX8" data-ccp-props="{}">&nbsp;</span></p>
</div>
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<h2 class="Paragraph SCXW206877242 BCX8" paraid="1627843357" paraeid="{ea5885df-2ad6-41d7-86a3-41c6350685ac}{117}"><span data-contrast="auto" xml:lang="EN-IN" lang="EN-IN" class="TextRun SCXW206877242 BCX8"><span class="NormalTextRun SCXW206877242 BCX8">Challenges in the economic landscape</span></span><span class="EOP SCXW206877242 BCX8" data-ccp-props="{}">&nbsp;</span></h2>
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<p class="Paragraph SCXW206877242 BCX8" paraid="1635162449" paraeid="{ea5885df-2ad6-41d7-86a3-41c6350685ac}{123}"><span data-contrast="auto" xml:lang="EN-IN" lang="EN-IN" class="TextRun SCXW206877242 BCX8"><span class="NormalTextRun SCXW206877242 BCX8">This budget comes at a time when India&rsquo;s economy is facing multiple challenges. Consumer demand </span><span class="NormalTextRun SCXW206877242 BCX8">remains</span><span class="NormalTextRun SCXW206877242 BCX8"> subdued, inflation is </span><span class="NormalTextRun SCXW206877242 BCX8">impacting</span><span class="NormalTextRun SCXW206877242 BCX8"> household budgets, and GDP growth is showing signs of slowdown. The Economic Survey estimates a growth range of 6.3% to 6.8% in FY26, which is below the pace </span><span class="NormalTextRun SCXW206877242 BCX8">required</span><span class="NormalTextRun SCXW206877242 BCX8"> to achieve the Viksit Bharat 2047 target. The report stresses the importance of land and labour reforms to accelerate economic expansion.</span></span><span class="EOP SCXW206877242 BCX8" data-ccp-props="{}">&nbsp;</span></p>
</div>
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<h2 class="Paragraph SCXW206877242 BCX8" paraid="501519319" paraeid="{ea5885df-2ad6-41d7-86a3-41c6350685ac}{129}"><span data-contrast="auto" xml:lang="EN-IN" lang="EN-IN" class="TextRun SCXW206877242 BCX8"><span class="NormalTextRun SCXW206877242 BCX8">Balancing growth with sustainability</span></span><span class="EOP SCXW206877242 BCX8" data-ccp-props="{}">&nbsp;</span></h2>
</div>
<div class="OutlineElement Ltr SCXW206877242 BCX8">
<p class="Paragraph SCXW206877242 BCX8" paraid="1695050152" paraeid="{ea5885df-2ad6-41d7-86a3-41c6350685ac}{135}"><span data-contrast="auto" xml:lang="EN-IN" lang="EN-IN" class="TextRun SCXW206877242 BCX8"><span class="NormalTextRun SCXW206877242 BCX8">India continues to be one of the fastest-growing major economies, but there are </span><span class="NormalTextRun SCXW206877242 BCX8">clear signs</span><span class="NormalTextRun SCXW206877242 BCX8"> of moderation. The government </span><span class="NormalTextRun SCXW206877242 BCX8">remains</span><span class="NormalTextRun SCXW206877242 BCX8"> committed to achieving an 8% annual growth rate, which is considered crucial for long-term economic prosperity. The projected growth rate for FY25-26 is 6.4%, compared to 8.2% in FY23-24, </span><span class="NormalTextRun SCXW206877242 BCX8">indicating</span><span class="NormalTextRun SCXW206877242 BCX8"> the need for policy measures that drive sustainable growth.</span></span><span class="EOP SCXW206877242 BCX8" data-ccp-props="{}">&nbsp;</span></p>
</div>
<div class="OutlineElement Ltr SCXW206877242 BCX8">
<p class="Paragraph SCXW206877242 BCX8" paraid="20433713" paraeid="{ea5885df-2ad6-41d7-86a3-41c6350685ac}{141}"><span data-contrast="auto" xml:lang="EN-IN" lang="EN-IN" class="TextRun SCXW206877242 BCX8"><span class="NormalTextRun SCXW206877242 BCX8">Budget 2025 strikes a careful balance between taxpayer relief, economic expansion, and fiscal discipline. The higher tax exemption limit will </span><span class="NormalTextRun SCXW206877242 BCX8">benefit</span><span class="NormalTextRun SCXW206877242 BCX8"> millions of middle-class families, while a measured increase in capital spending ensures financial stability. The government&rsquo;s continued focus on employment generation, skill development, and sectoral growth aligns with its long-term vision for a stronger, self-reliant India.&nbsp;</span></span></p>
</div>

Business & Economy, Increasing income tax limit is expected to boost disposable income, encourage spending, and provide much-needed financial relief.

Finance Minister Nirmala Sitharaman has placed the middle class at the centre of Budget 2025, offering a significant tax relief that will ease financial burdens on millions of taxpayers. The highlight of this year’s budget is zero income tax for earnings up to ₹12 lakh. For salaried individuals, the exemption limit extends to ₹12.75 lakh, factoring in the ₹75,000 standard deduction. This announcement is expected to boost disposable income, encourage spending, and provide much-needed financial relief. A shift in capital expenditure strategy In previous budgets, Sitharaman prioritised large capital expenditures, focusing on infrastructure projects such as railways, highways, and urban development. However, this year’s budget takes a more measured approach. The government has allocated ₹11.2 lakh crore for capital expenditure in 2025-26, a modest increase from ₹11.1 lakh crore in the previous budget. This is a notable slowdown compared to the 11% rise in the last budget, signalling a shift towards balancing growth with fiscal prudence. Maintaining fiscal discipline Sitharaman has maintained her reputation for financial prudence by keeping the fiscal deficit at 4.4% for the next financial year. This is lower than the expected 4.5%, demonstrating the government’s commitment to economic stability while ensuring that resources are allocated effectively. The decision to moderate capital expenditure growth while expanding tax relief highlights the government’s strategy of supporting economic activity without compromising fiscal discipline. Focus on Viksit Bharat roadmap While focusing on tax relief and economic stability, the Viksit Bharat 2047 vision remains a key priority. Sitharaman has detailed plans to rejuvenate key sectors, particularly agriculture and small industries, recognising them as engines of economic growth. The budget also prioritises human capacity building, with a strong emphasis on skill development and workforce training. These initiatives are expected to enhance employability, address job creation concerns, and strengthen the long-term growth trajectory of the economy. Challenges in the economic landscape This budget comes at a time when India’s economy is facing multiple challenges. Consumer demand remains subdued, inflation is impacting household budgets, and GDP growth is showing signs of slowdown. The Economic Survey estimates a growth range of 6.3% to 6.8% in FY26, which is below the pace required to achieve the Viksit Bharat 2047 target. The report stresses the importance of land and labour reforms to accelerate economic expansion. Balancing growth with sustainability India continues to be one of the fastest-growing major economies, but there are clear signs of moderation. The government remains committed to achieving an 8% annual growth rate, which is considered crucial for long-term economic prosperity. The projected growth rate for FY25-26 is 6.4%, compared to 8.2% in FY23-24, indicating the need for policy measures that drive sustainable growth. Budget 2025 strikes a careful balance between taxpayer relief, economic expansion, and fiscal discipline. The higher tax exemption limit will benefit millions of middle-class families, while a measured increase in capital spending ensures financial stability. The government’s continued focus on employment generation, skill development, and sectoral growth aligns with its long-term vision for a stronger, self-reliant India.

Budget 2025: No tax up to Rs 12 lakh, focus on stability and long-term growth

<p>India's finance minister, Nirmala Sitharaman, tabled the union budget for 2025 on Saturday. This highly-anticipated budget began with a ruckus in parliament, with the opposition staging a walkout. But Sitharaman began her speech, saying midway, 'Please listen fully and then react.' She also chuckled while announcing that personal tax would come later in her speech. And she did have an ace up her sleeve.</p>
<h2>Personal tax slabs revised</h2>
<p>In a major boost to the country's middle class, tax earners below Rs 12 lakh annually will now be exempt from paying any income tax. This increases the 'no income tax slab' by Rs 5 lakhs.&nbsp;</p>
<p><strong>New tax slab:</strong></p>
<p>Rs 0-4 lakh -- Nil<br>Rs 4-8 lakh -- 5%<br>Rs 8-12 lakh -- 10%<br>Rs 16-20 lakh -- 20%<br>Rs 20-24 lakh -- 25%<br>Above Rs 24 lakh -- 30%</p>
<p>Meanwhile, major tax relief has also been announced for seniors.&nbsp;</p>
<p>Coming to indirect taxes, the major focus is on securing critical minerals and life-saving medicines from customs tariffs. Tax exemptions for 36 life-saving medicines have been announced, and the total number of custom tariffs have been reduced. This comes as a major boost for tech companies relying on the use of precious metals and also people seeking foreign medicines.</p>
<h2>Focus on Agriculture</h2>
<p>Nirmala Sitharaman began her speech by listing the growth engines of the economy. And the first on the list was Agriculture. She announced a new scheme for low-productivity districts, highlighting how over 17 million farmers are set to benefit. The credit limit has also been extended to over 77 million farmers. Special focus is on boosting cotton productivity and empowering 'Makhana' farmers.</p>
<h2>Make-in-India &amp; Women-led development</h2>
<p>The finance minister made a special reference to India's ambition of becoming a global innovation hub. Especially in the domestic footwear industry, she announced major support for the creation of new jobs. Boosting domestic toy production is also on the Agenda, with Sitharaman saying, 'India aims to be a global toy production hub.' Sitharaman highlighted advancements in women-led start-ups, with a major focus on job creation. She also announced a loan scheme for 500,000 women entrepreneurs.</p>
<h2><br>Focus on AI &amp; Innovation</h2>
<p>As expected, Artificial intelligence became a major focus in this year's budget. Sitharaman announced the launch of the Centre for Excellence in AI to prepare the youth and ensure AI-related skill development at the national level. Innovation was a central theme, especially in developing medical prowess. With 'Heal-in-India' as one of the objectives, Sitharaman has allocated Rs 20000 crore for medical tourism. She also announced the Nuclear energy mission for 'Viksit Bharat.'</p>

Business & Economy, Nirmala Sitharaman began her speech by listing the growth engines of the economy, and the first on the list was Agriculture. 

India's finance minister, Nirmala Sitharaman, tabled the union budget for 2025 on Saturday. This highly-anticipated budget began with a ruckus in parliament, with the opposition staging a walkout. But Sitharaman began her speech, saying midway, 'Please listen fully and then react.' She also chuckled while announcing that personal tax would come later in her speech. And she did have an ace up her sleeve. Personal tax slabs revised In a major boost to the country's middle class, tax earners below Rs 12 lakh annually will now be exempt from paying any income tax. This increases the 'no income tax slab' by Rs 5 lakhs. New tax slab: Rs 0-4 lakh -- Nil Rs 4-8 lakh -- 5% Rs 8-12 lakh -- 10% Rs 16-20 lakh -- 20% Rs 20-24 lakh -- 25% Above Rs 24 lakh -- 30% Meanwhile, major tax relief has also been announced for seniors. Coming to indirect taxes, the major focus is on securing critical minerals and life-saving medicines from customs tariffs. Tax exemptions for 36 life-saving medicines have been announced, and the total number of custom tariffs have been reduced. This comes as a major boost for tech companies relying on the use of precious metals and also people seeking foreign medicines. Focus on Agriculture Nirmala Sitharaman began her speech by listing the growth engines of the economy. And the first on the list was Agriculture. She announced a new scheme for low-productivity districts, highlighting how over 17 million farmers are set to benefit. The credit limit has also been extended to over 77 million farmers. Special focus is on boosting cotton productivity and empowering 'Makhana' farmers. Make-in-India & Women-led development The finance minister made a special reference to India's ambition of becoming a global innovation hub. Especially in the domestic footwear industry, she announced major support for the creation of new jobs. Boosting domestic toy production is also on the Agenda, with Sitharaman saying, 'India aims to be a global toy production hub.' Sitharaman highlighted advancements in women-led start-ups, with a major focus on job creation. She also announced a loan scheme for 500,000 women entrepreneurs. Focus on AI & Innovation As expected, Artificial intelligence became a major focus in this year's budget. Sitharaman announced the launch of the Centre for Excellence in AI to prepare the youth and ensure AI-related skill development at the national level. Innovation was a central theme, especially in developing medical prowess. With 'Heal-in-India' as one of the objectives, Sitharaman has allocated Rs 20000 crore for medical tourism. She also announced the Nuclear energy mission for 'Viksit Bharat.'