MGI member firms present India 2025-2026 Union budget
On February 1, 2025, India's Finance Minister, Nirmala Sitharaman, presented the Union Budget for the fiscal year 2025-26, outlining a comprehensive plan to stimulate economic growth, simplify taxation, and support key sectors.
A significant highlight is the reform in personal income tax: under the new tax regime, individuals earning up to ₹12 lakh annually will be exempt from income tax, aiming to boost household consumption and savings. A new Income-tax bill will be introduced, focused on simplifying the tax system and reducing compliance burdens.
Anuj Sharedalal from CRS Consulting expressed optimism that the reduction of personal income tax rates will increase individual disposable income, stimulate household consumption and drive economic expansion.
The budget also emphasizes support for agriculture, micro, small, and medium enterprises (MSMEs), and innovation. Investment incentives, manufacturing reforms, and increased credit availability will be introduced to boost entrepreneurship and private sector-driven research, development, and innovation.
Sanjeev Kamdar of Treetop Advisors highlighted that the investment initiatives to MSMEs and providing them with greater access to capital would drive economic development and job creation across the country.
For the agriculture sector new initiatives to enhance agricultural productivity and support farmers will be introduced including enhanced credit access.
“In summary, the Union Budget 2025-26 accelerates India's rise to the third-largest economy by boosting investment, easing business, and strengthening infrastructure. it paves the way for a globally competitive and resilient India,” said Amit Chopra of GCA Associates.
MGI India members, CRS Consulting, GCA Associates and Treetops Advisors have prepared budget highlights which can be downloaded on the links below.
MGI India members, CRS Consulting, GCA Associates and Treetops Advisors have prepared budget highlights which can be downloaded on the links below.
For more information please contact one of our India-based member firms or reach out to Regional Director for Asia, Audrey Danasamy.
MGI Worldwide, is a top 20 ranked global accounting network and association with over 8,800 professionals, accountants and tax experts in some 440 locations in almost 100 countries around the world.