Highlights of the India Budget 2025: AI, Infrastructure Improvement, and Tax Cuts 

The budget Budget speeches in India often follow a set format, but this year feels different. If we had to describe this budget in one word, it would be pivotal. India is still the fastest-growing major economy in the world, but it is facing global challenges. The growth rate has dropped below 7%, and the country is experiencing a jobs crisis, rising inflation, and declining investment opportunities. To make matters worse, Donald Trump's return to the United States is changing the trade dynamics of major powers, which is also affecting the global economy.

 displaying signs of weakness, so how can India grow in this difficult environment? The government is realigning its priorities to spur growth, which entails fewer large-scale projects or expensive initiatives in favour of a budget that is more focused on the middle class and the average person. A tax break for the middle class if you make less than 12 lakh Indian rupees in a year or less is, of course, the top highlight of this list, which is driven by a new ideology and a new set of goals.

One or about $14,000 will not be subject to income tax (01:31). I am now pleased to declare that, under the new regime, income tax will not be due up to 12 lakh rupees, or an average monthly income of 1 lakh, excluding special rate income like capital gains.

75 lakh for taxpayers who are salaried because of the 75,000 standard deduction We'll go into more detail about this in a few minutes on the show, but as the Finance Minister stated, the goal is to lessen the tax burden on India's middle class. This leads me to the second highlight, which is the income tax laws, which are set to undergo significant changes next week. Previously, the threshold for this tax break was 7 lakh rupees, but the government has raised it to 12 lakh rupees. Additionally, some exemptions have been increased.

table a new income tax bill I'm pleased to notify the nation and the House this August that the new income tax bill will follow the same spirit of Naya in its draughting as well. It will be straightforward and easy to read, containing nearly half of the current law in terms of both chapters and words. This will make it easier for taxpayers and tax administrators to understand, resulting in tax certainty and fewer lawsuits. We don't yet have the specifics, but the new tax law has two primary objectives. The first is to lower taxes.

The Finance Minister shared a crucial insight today, stating that the first is to simplify tax laws to make them easier to understand. India's current tax law was created in 1961 and consists of 23 chapters and 298 sections. The new tax bill will be 60% shorter, allowing the government to eliminate several outdated provisions. However, these changes won't come cheaply, and government revenues will suffer.

6 billion hit, which is a result of lower tax rates; however, the government intends to invest in industries with strong growth. Notably, the Indian government will provide 10,000 crores for startup capital, which will be allocated to an existing fund. a fund established in 2016 that has received contributions from both public and private sector entities. To date, over 1100 firms have benefited from this funding source, and they require additional assistance moving forward. Indian startups have been

having difficulty There has been a kind of financial freeze, particularly in the tech industry. The government's most recent cash infusion could spur fresh The fourth investment highlight focusses on artificial intelligence. The government intends to construct a centre for AI Excellence, and 500 CR rupees have been allocated for this purpose. In 2023, I had announced three centres of excellence in AI for agriculture, health, and sustainable cities, and now there is a centre of excellence in AI for education.

will be established with a total investment of 500 crores. AI is the next big thing and the new battlefield for global powers, but success requires constant investment, and this cannot be limited to AI infrastructure alone. India also needs the right talent pool, so the government has allocated funds for 30 new skill centres, which will focus on AI, robotics, and the Internet of Things. The government is also offering incentives for these centres.

 The fifth-highlighted MSMEs are micro, small, and medium-sized businesses. The government has effectively doubled their credit guarantee, and they will receive Better Credit guarantees. They are now eligible for 20 crores of collateral-free loans, whereas previously the ceiling was 10 crores. Number six customs and duties have been reduced on a number of goods, and businesses are receiving some tax relief. The government is also streamlining this tariff structure, which now consists of 15 different rates.

 rates, seven of which will now be eliminated. Basic customs taxes on a number of goods, including twelve essential minerals, are also being reduced. 35 capital goods are used in the production of electric vehicles, and 36 life-saving medications, including cancer treatments, are used to help patients, especially those with cancer, uncommon diseases, and other serious chronic illnesses. I suggest expanding the list of medications to include 36 life-saving medications. Infrastructure has been exempt from basic customs duties for almost ten years.

The purpose of the NDA government's infrastructure expenditure has always been to spur economic growth and job creation, and this year is no exception. The government will spend about $130 billion on infrastructure, which will be used to build roads. Ports and railroads Highlight number eight is about FDI, or foreign direct investment. There have been developments on this front as well, and they have eliminated FDI restrictions in the insurance industry, allowing foreign businesses to invest up to 100% in India.

Foreign companies can now enter the Indian insurance market; this is highlighted in number nine. The fiscal deficit, which is the difference between government spending and revenue, is 4.8% this year. Although the deficit appears to be under control, the government intends to reduce it to 4.4% in the upcoming fiscal year. How is the government effectively managing its expenses? According to estimates, the fiscal deficit is

The net market borrowings from data securities are anticipated to reach 11.54 lakh CR, or 4.4% of GDP, to cover the fiscal deficit. It is anticipated that little savings and other sources will provide the remaining funding. It's time to highlight number ten: the government's new priorities. As I mentioned earlier, they are reorienting their focus to new areas with this budget. Six domains have been identified by the government for this taxing authority. The Finance Minister, the banking sector, urban development, mining, and regulatory changes

That was the budget for you, 

as  promised revolutionary reforms in these sectors. It is evident that the administration is adopting a new strategy. India is still on the right side of these changes, albeit not without some losses. The global situation is more difficult than it was previously, with the developed world retreating home, globalisation losing appeal, and geopolitics influencing trade relations. The government needs a new strategy because India's growth pace has hindered job creation and investment.

As the minimum def from that video, India's neighbours were the first to send with a special edition of Vantage lives of the White House throughout theity Hindu one did in we're on our way to T measure, but it's also the perfect way to drive. I don't think the prime minister of Bhutan sharing welcome to 60% of the world's office Prime Minister Modi did the iron we were actually doing. Today's budget is an acknowledgement of that reality. We're calling it the show Vantage. We hope you like what we put together.

For example, it's been a year since that meeting, according to Trump, and the amount of money we need to address climate change is $4.3 trillion, or $4,300 billion, by 2030.