Finance Minister Nirmala Sitharaman presented her eighth consecutive Indian Budget in Lok Sabha in New Delhi on February 1. While it has been widely hailed by foreign investors for its growth focus, domestically it offered major tax relief for the middle class in the Union Budget 2025-26 apart from other proposals to boost GDP growth. The announcement received warm facilitations from fellow ministers and party's allies soon after her speech, with Indian Prime Minister Narendra Modi among those congratulating her.
The United States-India Strategic Partnership Forum (USISPF) commended the Government of India for unveiling a robust Union Budget 2025-26.
In a statement, it said: "It is a strong blueprint for propelling economic growth toward the government's vision of a $5 trillion economy.
“Promoting financial modernisation through strategic investments and landmark reforms in the tax structure, the budget signals to investors that India is committed to fostering a resilient, inclusive, and globally competitive economic environment."
Nirmala Sitharaman also met Lok Sabha Speaker Om Birla in the Parliament House after presenting the Budget.
Sitharaman presented the Union Budget 2025 in the Lok Sabha outlining a roadmap for India's continued economic expansion, emphasising agriculture, micro, small, and medium enterprises (MSMEs), investment, and exports.
She announced that no income tax will be payable on income up to Rs 12 lakh, providing significant relief to taxpayers, especially the middle class.
"To taxpayers up to Rs 12 lakh of normal income (other than special rate income such as capital gains) tax rebate is being provided in addition to the benefit due to slab rate reduction in such a manner that there is no tax payable by them," the minister said.
The announcement from the Finance Minister saw loud thumping of the desks by the treasury benches in the Indian Parliament.
"Slabs and rates are being changed across the board to benefit all taxpayers. The new structure will substantially reduce the taxes of the middle class and leave more money in their hands, boosting household consumption, savings and investment," she said.
(ANI)