INDIA NEWS
Feb 16-28, 2025 - Vol 5, Issue 13
BUSINESS & TRADE
PM Modi hails Union Budget 2025 Budget 2025-26 paves way for agriculture, MSMEs to as ‘Janata Janardan Ka Budget’ accelerate inclusive growth Minister Nirmala Sitharaman and her team for presenting a people's Budget -- 'Janata Janardan Ka Budget'," he added.
New Delhi, Feb 1 (IANS) Prime Minister Narendra Modi on Saturday lauded the Union Budget 2025, calling it a "Janata Janardan Ka Budget" and emphasising its people-centric approach that will propel India's development journey. Sharing his thoughts on the Budget, PM Modi described it as a significant milestone in India's growth trajectory. "This is a budget for the aspirations of 140 crore Indians. It will fulfill the dreams of every citizen. We have opened up several sectors for the youth, and the common people will be at the heart of India's mission to become a developed nation. This Budget is a force multiplier," he said. He further highlighted that the Budget would accelerate investment, consumption, and growth. "I congratulate Finance
The Prime Minister pointed out a fundamental shift in the approach of this Budget, stating that while most budgets focus on filling government coffers, this one is dedicated to ensuring more money in the hands of citizens. "This Budget is focussed on how the pockets of the countrymen will be filled, how they would increase their savings, and how they would contribute towards the development of the country. This Budget lays a strong foundation for this," he remarked. Discussing key reforms introduced in the Budget, PM Modi termed the decision to include the private sector in nuclear energy as "historic." He explained that this move would significantly boost India's civil nuclear energy sector and contribute to national progress. Highlighting employment-driven initiatives, the Prime Minister underscored the importance of giving infrastructure status to shipbuilding.
"With this status, large-scale ship construction in India will be encouraged, providing a fresh impetus to the 'Atmanirbhar Bharat' campaign. Shipbuilding is a sector that generates extensive employment," he noted. PM Modi also stressed the potential of India's tourism sector, announcing that hotels would be constructed at 50 key tourist destinations. "By bringing hotels under the infrastructure category for the first time, the tourism and hospitality sectors will receive a major boost. These industries play a crucial role in employment generation," he said. The Prime Minister reiterated that India is progressing with the mantra of "Vikas bhi, Virasat bhi (Development and Heritage together)." He highlighted initiatives like the 'Gyan Bharatam Mission' and the 'National Digital Repository' as key steps in preserving India's rich heritage while advancing its modern infrastructure.
Budget 2025: Relief for homeowners as no tax on second self-occupied house Income-tax Act which allows the annual value of a house or part of it to be considered as nil if the owner occupies it for personal residence or is unable to do so for any reason. New Delhi, Feb 2 (IANS) The Union Budget 2025 presented brought good news for homeowners, as Finance Minister Nirmala Sitharaman announced new tax benefits. Under the proposed changes, homeowners will now be able to claim a nil valuation for two selfoccupied houses instead of just one, as was previously allowed. The Budget suggests amending Section 23, sub-section (2) of the
"Presently taxpayers can claim the annual value of self-occupied properties as nil only on the fulfillment of certain conditions," Finance Minister Sitharaman said during a Budget presentation in Parliament. She also added that considering the difficulties faced by taxpayers, it is proposed to allow the benefit of two such self-occupied properties without any condition. In addition, the government has proposed raising the annual
threshold for Tax Deduction at Source (TDS) on rent from Rs 2.4 lakh to Rs 6 lakh. This increase will benefit small taxpayers and landlords by reducing the number of transactions liable for TDS. The monthly TDS limit on rent has been increased from Rs 24,000 to 50,000, which amounts to Rs 6 lakh annually. "I propose to rationalise TDS by reducing the number of rates and thresholds above which TDS is deducted," FM Sitharaman said in her Budget speech. The Finance Minister added that further, threshold amounts for tax deduction will be increased for better clarity and uniformity.
Union Budget: Key measures to bolster 1 crore MSMEs, 1.59 lakh startups With their quality products, these MSMEs are responsible for 45 per cent of our exports, the Finance Minister said while presenting the Budget 2025-26. New Delhi, Feb 1 (IANS) Union Finance Minister Nirmala Sitharaman on Saturday announced significant measures to bolster more than 1 crore registered micro, small, and medium enterprises (MSMEs), employing 7.5 crore people and generating 36 per cent of the country’s manufacturing.
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To help them achieve higher efficiencies of scale, technological upgradation and better access to capital, the investment and turnover limits for classification of all MSMEs will be enhanced to 2.5 and 2 times, respectively. "This will give them the confidence to grow and generate employment for our youth," said the Finance Minister.To improve access to credit, the credit
guarantee cover will be enhanced. For micro and small enterprises, it will be enhanced from Rs 5 crore to 10 crore, leading to additional credit of Rs 1.5 lakh crore in the next 5 years. "For startups, it will be increased from Rs 10 crore to Rs 20 crore, with the guarantee fee being moderated to 1 per cent for loans in 27 focus sectors important for Atmanirbhar Bharat," FM Sitharaman said, adding that for well-run exporter MSMEs, credit availability with guarantee cover will be for term loans up to Rs 20 crore.
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New Delhi, Feb 1 (IANS) The Union Budget 2025-2026, presented on Saturday by Finance Minister Nirmala Sitharaman under Modi 3.0, reflects a continuation of the government’s efforts to accelerate growth with inclusive development, invigorate private sector investments, and enhance spending power of India’s rising middle class to give a fillip to aggregate demand in the economy. FM Sitharaman has also succeeded in sticking to the fiscal consolidation path by bringing the fiscal deficit down to 4.4 per cent of GDP for 2025-26 from 4.8 per cent in 2024-25 while still maintaining a high capex of Rs 11.21 lakh crore for financing big infrastructure projects that spur growth and create jobs in the economy. Highlighting this aspect at a post-budget press conference, she said: "There is no reduction in the public spending on capital expenditure in the Union Budget for 2025-26. We continue to place emphasis on the multiplier effect that capital expenditure done by the government has shown has sustained us. We continue on that, and with all this, our fiscal prudence has been maintained." The Budget proposes development measures focusing on the poor (Garib), the youth, farmers (Annadata) and women (Nari). It also aims to initiate transformative reforms in taxation, power sector, urban development, mining, financial sector, and regulatory reforms to augment India’s growth potential and global competitiveness. The Union Budget highlights that agriculture, MSME, investments, and exports are engines in the journey to Viksit Bharat using reforms as fuel, guided by the spirit of inclusivity, the Finance Minister said. Under the Prime Minister Krishi Yojana, a new initiative inspired by the success of the Aspirational District Programme, the government will launch an agricultural district programme in partnership with states. This will target 100 districts with low productivity, moderate crop intensity, and below-average credit parameters. The initiative is expected to benefit 1.7 crore farmers, the Finance Minister said. Announcing the ‘Mission for Cotton Productivity’, FM Sitharaman highlighted that the five-year mission will facilitate significant improvements in the
productivity and sustainability of cotton farming, and promote extra-long staple cotton varieties. She said the mission will benefit lakhs of cotton-growing farmers as the best of science & technology support will be provided to farmers. Aligned with the government’s integrated 5F vision for the textile sector, the Minister remarked that the mission will help increase the incomes of the farmers as well as ensure a steady supply of quality cotton for rejuvenating India’s traditional textile sector. Noting the importance of Kisan Credit Cards (KCC) in facilitating short-term loans for around 7.7 crore farmers, fishermen, and dairy farmers, the Minister announced the enhancement of loan limit under the Modified Interest Subvention Scheme from Rs 3 lakh to Rs 5 lakh for loans taken through the KCC. These measures will go a long way in the uplift of the agriculture sector and strengthen its link with industry and exports to pave the way for income in rural India as part of inclusive growth. Similarly, the highest-ever allocation of Rs. 2,703.67 crores for the fisheries sector in the Budget comes as a booster shot to develop the country’s blue economy. The Finance Minister, in her budget speech, highlighted India’s achievement as a leader in aquaculture and seafood exports. The budget announcement strategically focuses on enhancing financial inclusion, reducing the financial burden on farmers by reducing customs duties and furthering the development of the marine fisheries. In a big boost to employment-led growth, the launch of the “National Manufacturing Mission” in the Budget to cover small, medium and large industries comes as a major driver for the 'Make in India' campaign. The Mission will lay emphasis on five focal areas i.e. ease and cost of doing business; futureready workforce for in-demand jobs; a vibrant and dynamic MSME sector; availability of technology; and quality products. The Mission will also support Clean Tech manufacturing and aims to improve domestic value addition and build the ecosystem for solar PV cells, EV batteries, motors and controllers, electrolysers, wind turbines, very high voltage transmission equipment and grid-scale batteries, the Union Finance Minister added. The Finance Minister also outlined measures for Labour-Intensive Sectors, adding that the government will undertake specific policy and facilitation measures to promote employment and entrepreneurship opportunities in labour-intensive sectors.
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