‘Strong Blueprint For India’s Growth Towards $5 Trillion Economy’: USISPF Lauds Budget 2025 

Last Updated: February 02, 2025, 12:04 IST

Finance Minister Nirmala Sitharaman offered the Union Budget 2025-26 on Saturday in which she revealed reforms in different markets, consisting of tax obligation reforms.

The United States-India Strategic Partnership Forum (USISPF) has actually admired the Union Budget 2025-26, defining it as a “solid plan” for enhancing the country’s growth towards a $5 trillion economy.

It said that the Budget, through its “strategic investments and landmark reforms in the tax structure”, advertises modernisation and signals to financiers that India is “dedicated to promoting a resistant, comprehensive, and internationally affordable financial atmosphere”.

Finance Minister Nirmala Sitharaman presented the Union Budget 2025 in Lok Sabha on Saturday, giving massive relief to the Middle Class which has been exempted from tax on earning up to Rs 12 lakh per annum.

The USISPF said that the Budget maintains the path of fiscal consolidation started four years ago with a projected fiscal deficit of 4.4%, down from 4.8% last year, driven by a large increase in net tax revenues and a moderate increase in expenditures.

“We especially appreciate the shift in spending priorities this year, with greater attention to domestic consumption to support growth through increased domestic demand. We welcome increased spending outlays for rural and urban development, social welfare, and development of the Northeast states, and note the more moderate increases in capital investments this year, where previous allocations to key sectors such as transportation and telecommunications continue working their way through the investment cycle,” it stated in a declaration.

USISPF applauded reforms in monetary solutions, innovation, and farming that will certainly remain to bring in financial investment and advertise technology in essential markets throughout the economic climate.

“We invite the federal government’s strategy to develop a brand-new Centre of Excellence for Artificial Intelligence (AI) for education and learning, which links right into previous news of comparable Centres of Excellence in AI for farming, health and wellness, and lasting cities. AI will certainly play a vital function in enhancing technical connections in between the United States and India, specifically as the collaboration expands with campaigns like the Initiative for Critical and Emerging Technology (iCET),” it said.

“USISPF also appreciates the government’s decision to remove the cap on foreign direct investment and simplify the governance constraints in the insurance sector. This landmark reform will unlock fresh capital, drive innovation and investment, expand nationwide insurance penetration, and send a clear signal that India is committed to creating a globally competitive and investment-friendly sector,” it included.

Dr Mukesh Aghi, President and CHIEF EXECUTIVE OFFICER of USISPF, stated, “USISPF is positive that the budget plan will certainly speed up India’s financial development, drive enhanced financial investments, task development, and technology, while more sealing its condition as a worldwide financial giant. We excitedly expect the favorable effect of these actions on the Indian economic climate bring in extra American financial investments right into India and the strengthening of financial and industrial connections in between our 2 freedoms. USISPF stays unfaltering in sustaining the federal government’s vision for a flourishing and comprehensive India”.

He added, “The comprehensive measures—from removing the FDI cap in the insurance sector and simplifying KYC processes to increasing the income tax limit—are set to stimulate economic activity, boost consumer spending, and revive the ‘animal spirit’ of the economy.”

Tarun Bajaj, Chairperson of the United States-India Tax Forum, included, “The Union Budget 2025, offered by Finance Minister Nirmala Sitharaman, outlines a roadmap for increasing usage and increasing development and work. It has a solid concentrate on streamlining the tax obligation program, increasing residential production, and on simplicity of doing business/deregulation and decriminalization. The budget plan stresses “Make in India, produce the globe” and aims to strengthen India’s position as a global economic powerhouse”

Bajaj included, “A keystone of the budget plan is the news of the brand-new Income Tax Bill, made to streamline the tax obligation regulations. International taxes reforms intend to develop a much more desirable atmosphere for cross-border organizations. Expanded secure harbor regulations and justification of TDS and TCS arrangements are anticipated to lower intricacies and motivate international financial investment.”