With India facing an economic slowdown, the Union Budget 2025 is expected to focus on boosting growth through tax reforms, increased spending, and sector-specific measures.
Here’s what we might see: 👇
Tax Reforms:In Budget 2025, the government may replace the 1961 Income Tax Act with a simpler, modernized law aimed at making tax filing easier and boosting compliance.
Personal Income Tax Relief: The government is considering tax cuts for individuals earning up to ₹15 lakh annually in Budget 2025, with the basic exemption limit possibly increasing from ₹3 lakh to ₹5 lakh. This move aims to boost consumption and drive economic growth.
Capital Gains Tax Simplification: In Budget 2025, investors are anticipating a simplified capital gains tax structure designed to foster investment while making tax filing more straightforward and hassle-free. This move could help attract more long-term investments and improve overall compliance.
GST Cuts for Hybrid Vehicles: In Budget 2025, the automobile industry is advocating for a reduction in GST on hybrid vehicles, which is currently at 28%. This move aims to promote cleaner technologies and reduce environmental impact, encouraging a shift towards sustainable mobility. 🚗
Increased Housing Investments: Budget 2025 is expected to allocate higher funding for low-cost housing schemes and smart city projects, driving demand for building materials and creating jobs in the construction sector.🏠
Infrastructure Investments: Budget 2025 is expected to bring increased funding for infrastructure projects, with a focus on the National Infrastructure Pipeline and Gati Shakti initiative, aiming to drive long-term economic growth.
Cement Industry Growth: With more funding for housing and infrastructure, demand for cement could rise, especially in low-cost housing and public infrastructure projects. 🧱
Tax Relief for Consumers: Tax revisions in Budget 2025 could boost urban consumption, while increased investments in rural infrastructure and employment schemes are expected to sustain strong demand in rural areas.
Defense Boost: Budget 2025 is likely to place greater emphasis on the “Aatmanirbhar Bharat” initiative, aiming to enhance private sector involvement in defense and raise domestic procurement targets to strengthen self-reliance. 🛡️
Tech Manufacturing Growth: The government may extend the PLI scheme to cover IoT, wearables, and AI devices, while also increasing R&D funding to support semiconductor manufacturing.
Affordable Healthcare: There’s a call for the government to exempt cancer and rare-disease drugs from taxes to make them more affordable and accessible to patients.
Rail, Road & Aviation Infrastructure: In Budget 2025, significant funding is anticipated for railway network expansion and Vande Bharat trains. Road projects will receive allocations for maintenance and asset monetization. The aviation sector is pushing for reduced ATF taxes and improved infrastructure in Tier 2 and Tier 3 cities. 🚂
Renewable Energy Focus: Budget 2025 is expected to reinforce the government’s push towards achieving 500 GW of renewable energy capacity by 2030, with increased funding for solar energy projects and energy storage solutions.⚡
The 2025 Budget could be a game-changer for India’s growth and recovery, playing a key role in reviving the economy and ensuring long-term growth.
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