India Proposes Tax Breaks in 2025 Budget to Boost Spending

NEW DELHI, India — Finance Minister Nirmala Sitharaman is expected to propose income tax breaks for individuals in the 2025 budget to stimulate household spending and economic growth. Discussions are underway to increase the standard deduction, last revised to Rs 75,000 in July 2024, and raise the basic tax exemption limit from Rs 3 lakh. The government is also considering revising the tax structure for incomes between Rs 12-15 lakh, potentially reworking the 20% tax slab.

The proposed changes aim to alleviate financial pressures on middle-income earners and encourage consumer spending. “The focus is on providing relief to taxpayers while ensuring sustainable economic growth,” a government official said, speaking on condition of anonymity. The final details of the tax reforms are still under discussion.

Meanwhile, Prime Minister Narendra Modi is set to appear on American podcaster Lex Fridman‘s show, marking his first appearance on a major Western podcast. The episode is expected to cover topics such as technology, geopolitics, and India’s global economic role. Fridman, known for hosting figures like Elon Musk and Joe Rogan, expressed his honor at the opportunity, calling it a “conversation that transcends borders.”

In other developments, Hindenburg Research founder Nate Anderson faces allegations of securities fraud. Court documents in Ontario reportedly reveal that Anderson collaborated with Moez Kassam of Canada’s Anson hedge fund to prepare bearish reports without disclosing the hedge fund’s involvement. This could attract scrutiny from the U.S. Securities and Exchange Commission. Hindenburg previously drew attention for its controversial reports on Gautam Adani‘s business empire.

India’s private sector investments slowed in the third quarter of 2024 due to weak domestic demand and rising inflation. However, government capital expenditure surged by 34.6%, driven by state-level spending, while foreign investments rose 44.2%, largely due to a Rs 70,000 crore steel project by Arcelor Mittal Nippon.

In global news, Chinese scientists confirmed the testing of hypersonic air-to-air missiles, posing a potential threat to U.S. military aircraft. The tests, conducted in extreme conditions, were detailed in a peer-reviewed paper published in the journal Equipment Environmental Engineering.

In Gaza, Hamas freed three hostages on the first day of a ceasefire, while Israel released 90 Palestinian prisoners. The pause in the 15-month conflict allowed over 630 trucks of humanitarian aid to enter Gaza. However, the ceasefire faced delays due to Hamas’s failure to provide a list of hostages on time.

Closer to home, a survey by the Wildlife Institute of India estimated nearly 4,000 Gangetic dolphins in the Ganga River basin, with 2,510 sighted during the assessment. The findings are part of efforts to conserve the endangered species under Project Dolphin.

Finally, the Centre’s upcoming talks with farmer groups are unlikely to include a legal guarantee for Minimum Support Price (MSP), a key demand of protesting farmers. Instead, discussions will focus on strengthening the procurement system to benefit more farmers nationwide.