Union Budget 2025 Live: Income Tax Reforms, Technology Innovation, and Clean Energy Expectations

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Posted by NewAdmin on 2025-01-28 04:36:40 |

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Income Tax Reforms on the Horizon
The upcoming Union Budget is sparking conversations about potential reforms in India’s income tax structure. An analysis by the State Bank of India (SBI) recommends reducing the highest tax bracket from 30% to 25% for individuals earning over Rs 15 lakh annually. To complement this, health insurance relief of Rs 50,000 and a National Pension System (NPS) allowance of Rs 75,000 have also been proposed.

While these reforms are aimed at boosting disposable incomes and encouraging savings, they may lead to revenue shortfalls between Rs 74,000 crore and Rs 1.1 lakh crore. If further changes, such as introducing a 15% tax for individuals earning between Rs 10-15 lakh, are implemented, the estimated shortfall could rise to Rs 85,000 crore to Rs 1.2 lakh crore.

Tech Sector Hopes for Growth-Driven Policies
India’s technology sector is looking to the Budget for measures that promote innovation, empower startups, and strengthen the digital economy. Industry leaders emphasize the need for increased investments in Artificial Intelligence (AI), cybersecurity, and digital transformation. Simplifying tax structures and offering greater R&D incentives will position India as a global technology hub.

Startups, in particular, are advocating for easier access to credit and reduced compliance burdens. These steps, combined with government support for innovation, could foster a thriving entrepreneurial ecosystem and accelerate India’s journey toward becoming a global leader in technology.

Clean Energy and Sustainability Take Center Stage
With India’s commitment to achieving net-zero emissions by 2070 and the launch of the Carbon Credit Trading Scheme (CCTS), sustainability is a key focus area. Experts underline the importance of funding access for clean technologies, particularly for MSMEs, which play a pivotal role in decarbonizing industries.

The Union Budget is expected to include improved Performance Linked Incentives (PLI) and financial support for R&D in green technology. These initiatives aim to address challenges posed by international regulations such as the Carbon Border Adjustment Mechanism (CBAM), which imposes carbon taxes on exports.

Infrastructure Investments to Drive Economic Growth
Sectors like railways, highways, and mining are anticipating significant allocations in the Union Budget. These investments are expected to boost demand for industrial products such as explosives, which are integral to large-scale projects.Industry leaders have called for measures like rationalizing import duties on raw materials and promoting eco-friendly technologies to support the sector’s growth. Simplified regulatory processes for licensing and compliance could further strengthen the sector’s ability to contribute to India’s self-reliance and economic progress.

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