3 Things Unpacking the Union Budget 2025
Feb 3, 2025
In this discussion, Udit Misra, a journalist from The Indian Express, unpacks the implications of the Union Budget 2025 on India’s economic landscape. He highlights unprecedented tax breaks for the middle class aimed at economic stimulation. Misra addresses challenges like stagnating GDP growth and rising unemployment, while critiquing past government strategies. He emphasizes the need for skill development in the age of AI and explores the political dynamics influencing regulatory reforms. The conversation also touches on the return to agriculture and its effects on economic growth.
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India's Growth Challenge
- India's GDP growth has stagnated below its target, despite government efforts like GST reforms and ease-of-doing-business measures.
- The challenge lies in boosting growth to levels that will significantly improve India's economic standing.
Dual Economic Hurdles
- Low consumer spending and private sector investment are key factors hindering India's economic growth.
- Despite corporate tax cuts, businesses hesitate to invest due to uncertain consumer demand.
Tax Cut Implications
- The new budget's income tax exemption up to ₹12 lakh impacts a relatively small, higher-income segment of the population.
- This raises concerns about increased reliance on regressive taxes like GST.