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    Key Union Budget 2025 Highlights

    Nirmala Sitharaman, Union Finance Minister, Government of India, today unveiled the Union Budget 2025 in Parliament, charting a vision for transformative reforms aimed at boosting India’s economic growth and global competitiveness over the next five years. Under the theme of “Reforms for Resilience,” the Budget focuses on six key domains: taxation, the power sector, urban development, mining, the financial sector, and regulatory frameworks.

    “Our government is committed to creating a resilient and future-ready economy. Through these strategic reforms, Union Budget 2025 will accelerate growth, foster innovation, and enhance India’s position on the global stage,” Sitharaman said during her address. Some of the key Union Budget 2025 highlights are as follows:

    • A new Income Tax Bill will be introduced, featuring simplified and concise text, nearly half the length of the current law, aimed at improving clarity, ensuring tax certainty, and reducing litigation.
    • Support will be provided to develop domestic manufacturing capacities for Indian economy’s integration with global supply chains.
    • Government to support domestic electronic equipment industry to leverage Industry 4.0 opportunities for benefit of youth.
    • National framework to be formulated as guidance to states for promoting Global Capability Centres in emerging tier-2 cities
    • An Export Promotion Mission will be established to enhance export credit, provide cross-border factoring support, and assist MSMEs in overcoming non-tariff barriers in international markets.
    • National Geospatial Mission will be launched to develop foundational geospatial infrastructure and data. 
    • Under the PM Research Fellowship scheme, 10,000 fellowships will be awarded over the next five years to support technological research in IITs and IISc. 
    • A Rs 20,000 crore initiative for private-sector-driven research, development, and innovation, announced in the July Budget, has been unveiled. 
    • Tax reforms announced to improve ease of doing business. To streamline transfer pricing and enhance ease of doing business, a new scheme will be introduced for determining the arm’s length price of international transactions for a block period of three years, providing an alternative to annual examinations. Additionally, tax exemptions will be granted on withdrawals made from the National Savings Scheme by individuals on or after 29 August 2024.
    • Regulatory Reforms in the Financial Sector: To enhance ease of doing business, a High-Level Committee for Regulatory Reforms will be established to review regulations, certifications, licenses, and permissions across non-financial sectors. In 2025, an Investment Friendliness Index of States will be introduced to promote healthy competition and attract investments. Additionally, the Jan Vishwas Bill 2.0 will be enacted to decriminalize over 100 provisions in various laws, fostering a more business-friendly environment. 
    • To boost domestic manufacturing and promote value addition, cobalt powder, lithium-ion battery waste and scrap, lead, zinc, and 12 other critical minerals will be exempted from Basic Customs Duty (BCD). Additionally, the list of exempted capital goods will be expanded to include 35 items for EV battery manufacturing and 28 items for mobile phone battery manufacturing, further supporting key industries.

    Another key development worth mentioning under the Union Budget 2025 Highlights is salaried individuals earning up to Rs 12 lakh per annum will now be exempt from paying income tax under the new tax regime.

    Also read: No Income Tax for Salaries Up to Rs 12 Lakh

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