Sitharaman presents record 8th consecutive Union Budget
What's the story
Finance Minister Nirmala Sitharaman presented her eighth consecutive Union Budget on Saturday.
This will be Prime Minister Narendra Modi's third term's first full budget.
The presentation comes amid geopolitical uncertainties and India's economic growth rate hitting a four-year low, with US President Donald Trump's tariff threats against India and other countries only adding to the uncertainties.
Tax expectations
Anticipated tax cuts and concessions in Union Budget 2025
The budget is likely to focus on tax cuts, including for the lower middle class. This comes after Modi invoked the Goddess of wealth for uplifting the poor and middle class.
Concessions for the middle class are also expected, including a possible reduction in income tax rates and a hike in the standard deduction.
Currently, under the old tax regime, the basic income exemption limit is ₹2.50 lakh, while it's ₹3 lakh for those opting for the new tax regime.
Twitter Post
Sitharaman arrives at the Ministry of Finance
#WATCH | Delhi: Union Finance Minister Nirmala Sitharaman arrives at the Ministry of Finance. She will present #UnionBudget2025 at the Parliament today. pic.twitter.com/T59lxfo5YT
— ANI (@ANI) February 1, 2025
Inclusion and infrastructure
Budget 2025 may focus on financial inclusion and infrastructure
The Economic Survey has underscored financial inclusion for rural households and small businesses as a key focus area.
Sitharaman may announce measures to ensure easier access to credit via microfinance institutions, self-help groups, and other intermediaries.
To meet India's development goals, a massive investment in infrastructure is also required over the next decade.
The FM is expected to make major announcements on this in her budget speech.
AI and tariffs
AI and tariff reforms: Key areas in Union Budget 2025
Sitharaman is also likely to announce policies and initiatives to speed up progress in artificial intelligence (AI), a topic that was widely discussed at the recent World Economic Forum meeting in Davos.
Economists expect the Union Budget to announce tariff reforms and a concessionary tax rate for new manufacturing facilities in India.
These could address emerging global challenges but have mixed implications for the domestic economy.
GDP projection
Economic survey projects India's GDP for FY2025-26
The Economic Survey tabled by Sitharaman in Parliament on Friday projected India's GDP between 6.3% and 6.8% for FY2025-26.
It indicated India's world-leading growth is moderating, and more needs to be done to achieve the near 8% annual rate to reach the Viksit Bharat target by 2047.
The survey also estimates the country's GDP will grow at 6.4% in FY25, the slowest in four years amid a struggling manufacturing sector and declining corporate investments.