Sat Feb 01 10:16:35 IST 2025: ## India Awaits Union Budget 2025 Amidst Economic Slowdown and Global Uncertainty

**New Delhi, [Date]** – India’s Finance Minister Nirmala Sitharaman will present the Union Budget 2025 today at 11 am, facing a backdrop of slowing economic growth and global uncertainties. The budget comes at a time when India’s growth rate has dipped to a four-year low, and the threat of US tariffs looms large.

High expectations surround potential tax cuts, particularly for the lower and middle classes, following Prime Minister Narendra Modi’s appeal to the Goddess Lakshmi for their prosperity. The middle class anticipates reductions in income tax rates and an increase in the standard deduction. The budget may also include measures to ease access to credit for rural households and small businesses, aligning with the Economic Survey’s focus on financial inclusion.

Significant infrastructure investment is expected to be a key component of the budget, with the government aiming to meet ambitious development goals. This will likely involve a considerable increase in current infrastructure spending. The budget may also include measures to support domestic manufacturing, reduce import dependency, and manage exchange rate pressures through tariff revisions.

A strong focus on artificial intelligence (AI) is anticipated, mirroring recent global discussions on the subject. The budget is likely to include policies and initiatives designed to accelerate progress in this field.

Economists predict the budget will address global challenges through tariff reforms and possibly a concessionary tax rate for new manufacturing facilities. However, these measures could have mixed effects on the domestic economy, potentially harming protected industries while benefiting those using imported inputs. Corporate tax relief is also likely, mirroring global trends and potentially preventing India from losing out to countries with lower corporate tax rates.

Despite these initiatives, the government is expected to maintain its path of fiscal consolidation, aiming for a fiscal deficit of 4.5% of GDP for fiscal 2026. The budget’s success will hinge on its ability to balance economic stimulation with fiscal responsibility in the face of both domestic and international challenges.

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