India Prepares for Union Budget 2025 Amid Economic Challenges

Finance Minister Nirmala Sitharaman to present her eighth budget, focusing on balancing growth, fiscal consolidation, and sectoral reforms.

The Union Budget 2025 will be presented on February 1, 2025, following the release of the Economic Survey on January 31, which outlines India's economic performance and future priorities.
Key expectations include increased spending on education and skill development, with stakeholders urging alignment with the National Education Policy's 6% GDP target for education funding.
The government is likely to balance fiscal consolidation with growth, potentially reducing the fiscal deficit target to 4.4% of GDP while addressing slowing economic growth and inflation concerns.
Sectoral priorities include incentives for private R&D, support for MSMEs, infrastructure upgrades, and measures to boost real estate, agriculture, and digital transformation.
Speculation surrounds potential tax reforms, including raising income tax exemptions and standard deductions, to provide relief to middle-income households and stimulate domestic consumption.