Union Minister Smt Nirmala Sitharaman Presents Economic Survey 2024-25
ObserveNow MediaJanuary 31, 2025
Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman presented the Economic Survey for FY 2024-25 in Parliament today, highlighting India’s remarkable economic resilience amidst global challenges and outlining the government’s vision for continued growth. The Survey forecasts a real GDP growth of 6.4% for FY25, marking a return to the country’s decadal average growth rate.
State of the Economy
India’s economy has shown commendable resilience in the face of global economic turbulence. Real GDP growth is projected at 6.4% for FY25, with the growth rate of real Gross Value Added (GVA) also matching the same figure. Despite the challenging global economic environment, India’s growth continues to outpace the global average, which stood at 3.3% in 2023. The Survey predicts a continued positive trajectory with FY26 GDP growth estimated to be between 6.3% and 6.8%.
Sitharaman emphasized the government’s focus on grassroots-level structural reforms and deregulation to bolster the medium-term growth potential. With ongoing geopolitical tensions and global trade risks, India remains committed to driving economic reforms that will enhance its global competitiveness.
Inflation and Fiscal Dynamics: Navigating a Stable Course
Retail inflation in India showed a decline from 5.4% in FY24 to 4.9% in the first nine months of FY25, reflecting effective fiscal management. The Reserve Bank of India (RBI) and IMF forecast that inflation will align with the target of 4% by FY26.
The country’s banking sector exhibited improvement, with non-performing assets (NPAs) falling to a 12-year low of 2.6% of total loans. Bank credit has grown steadily, supporting sustainable economic activity.
External Sector and Foreign Direct Investment: Rising Competitiveness
India’s external sector displayed significant strength, with overall exports growing by 6% in FY25. Notably, India ranks as the second-largest global exporter in ‘Telecommunications, Computer, & Information Services,’ holding 10.2% of the market share. Foreign Direct Investment (FDI) inflows surged by 17.9%, reaching USD 55.6 billion, marking a strong recovery. India’s forex reserves stood at a robust USD 640.3 billion, covering nearly 11 months of imports.
Infrastructure and Investment: Building a Future of Growth
The government’s capital expenditure (CAPEX) grew significantly from FY21 to FY24, with continued investments in infrastructure, transport, and renewable energy. The railway network saw a commissioning of 2,031 km between April and November 2024, alongside the introduction of 17 new Vande Bharat trains. The road network expanded with the construction of 5,853 km of National Highways in FY25.
Renewable energy capacity surged by 15.8% year-on-year, and the share of renewable energy in India’s installed capacity reached 47%. The government also focused on enhancing digital and rural connectivity, with 5G services rolled out across all states by October 2024.
Agriculture and Food Security: A Future-Focused Approach
Agriculture, contributing 16% to India’s GDP, continues to evolve with high-value sectors like horticulture, livestock, and fisheries becoming key drivers of growth. The government has increased the Minimum Support Price (MSP) for essential crops such as Arhar and Bajra, signaling strong support for farmers. Over 11 crore farmers have benefitted from initiatives like the Pradhan Mantri Garib Kalyan Anna Yojana, which ensures food security for vulnerable populations.
Industry and Services: A Progressive and Dynamic Sector
India’s industrial sector is projected to grow by 6.2% in FY25, driven by robust performance in electricity and construction. The government continues to focus on promoting Smart Manufacturing and Industry 4.0, alongside significant growth in the automotive and electronics sectors. India now manufactures 99% of smartphones domestically, significantly reducing dependence on imports.
The services sector’s contribution to GDP has risen, with a notable increase in exports, particularly in IT and computer services. India’s services export growth surged to 12.8% from April–November 2024, reflecting its growing global competitiveness.
Vision for 2047
Looking towards the future, Smt. Sitharaman outlined India’s ambitious vision to become a Viksit Bharat by 2047. The country aims to achieve an 8% average growth rate over the next few decades, which will require systematic deregulation, further liberalization, and continued infrastructure development. Through strategic reforms and sustained investments, India is poised to navigate global economic shifts and secure its position as a leading global economy.
The Economic Survey of FY 2024-25 presents a comprehensive and optimistic outlook for India’s future, driven by robust economic fundamentals, strategic reforms, and a commitment to innovation and growth.
Parliament’s Budget Session Begins; President Murmu Highlights ‘Lakhpati Didi’ Initiative, AI Mission & Infrastructure Growth
ObserveNow Media
The Budget Session of Parliament commenced today with President Droupadi Murmu addressing a joint sitting of both Houses, outlining the government’s key policies and initiatives. She reaffirmed the government’s commitment to fulfilling the middle class’s dream of homeownership and emphasized the ‘Lakhpati Didi’ initiative, aiming to create three crore financially empowered women.
Following the President’s address, Union Finance Minister Nirmala Sitharaman tabled the Economic Survey in the Lok Sabha and Rajya Sabha. The document, prepared under the leadership of Chief Economic Adviser V Anantha Nageswaran, provides an official assessment of the economy’s performance for the ongoing financial year.
The government has listed 16 Bills, including the Waqf (Amendment) Bill, alongside financial business for the session. On Saturday, Sitharaman will present the first full Budget of the Modi 3.0 government.
President Murmu lauded women’s growing role in various sectors, including aviation, law enforcement, and corporate leadership, as well as their achievements in the Olympics. She also highlighted the completion of the Udhampur-Srinagar-Baramulla rail link, connecting Kashmir to Kanyakumari, and India’s aviation boom, with airlines placing orders for 1,700 new aircraft.
On national security, she stated that the abrogation of Article 370 has brought significant changes to Jammu and Kashmir, while government efforts have curbed separatism in the North East. She also mentioned the first Ashtalakshmi Festival, organized to showcase the potential of the eight North Eastern states.
In the field of technology, President Murmu highlighted India’s progress in artificial intelligence with the launch of the ‘India AI Mission’ and reaffirmed the country’s commitment to space exploration, stating that the first human spaceflight, Gaganyaan, is on the horizon.
The first phase of the Budget Session will conclude on February 13, with the session reconvening on March 10 and continuing until April 4, comprising a total of 27 sittings.
Union Budget 2025 LIVE Updates: FM Nirmala Sitharaman set to present her 8th consecutive Budget
ObserveNow Media
With urban consumption demand weakening, many experts anticipate that FM Nirmala Sitharaman will announce several income tax relief measures to boost overall spending. The Union Budget is set to be presented on Saturday, February 1, 2025, while the Economic Survey will be tabled in Parliament today, January 31, 2025. Taxpayers are eagerly awaiting potential reliefs in the upcoming budget.
01-Feb-2025 12:25PM IST
Union Budget 2025: Simplified Income Tax Bill Aims to Remove Ambiguity
The new income tax bill is designed with clarity in mind, using straightforward and concise language to make it easily understandable for both taxpayers and tax officials. This approach seeks to eliminate any ambiguity, enhancing the document’s accessibility and user-friendliness.
“My tax proposals are driven by the goal of enhancing ease of doing business, encouraging voluntary compliance, and reducing the compliance burden. These proposals focus on personal income tax reforms, particularly benefiting the middle class, streamlining TDS and TCS processes to minimize challenges, and promoting job creation and investment,” stated the Finance Minister.
Post Budget Quote by Sudhir Kunder, Chief Business Officer, DE-CIX India:
“The Union Budget 2025 showcases a visionary approach to technological advancement, propelling India’s digital and sustainable growth trajectory forward. I’m particularly enthusiastic about the emphasis on AI initiatives, which will cultivate a future-ready workforce, ensure employment stability, and drive innovation across sectors. The integration of AI-driven learning tools and industry-academia collaboration will empower students with cutting-edge skills, while the proposed AGR relief for telecom companies will fortify the backbone of India’s digital infrastructure. These strategic initiatives will collectively pave the way for a more connected, resilient, and innovation-driven India, poised for long-term success.”
01-Feb-2025 12:12PM IST
No income tax will be levied on earnings up to ₹12 lakh.
01-Feb-2025 11:50AM IST
FM Nirmala Sitharaman announced the creation of a Deep Tech fund, which will support startups from both technical and non-technical backgrounds in turning their ideas into reality.
01-Feb-2025 11:45AM IST
Finance Minister Nirmala Sitharaman announced that 36 lifesaving drugs and medicines will be fully exempt from basic customs duty.
01-Feb-2025 11:40AM IST
FM Nirmala Sitharaman revealed an additional contribution of ₹10,000 crore for startups, bringing the total government contribution to ₹20,000 crore.
01-Feb-2025 11:38AM IST
“‘Heal in India’ and medical tourism will be promoted in collaboration with the private sector.”
01-Feb-2025 11:25AM IST
Finance Minister Nirmala Sitharaman announced key initiatives in the education sector:
Five national skill centers will be established with international expertise.
IITs will expand their capacity to enroll more students.
A Centre of Excellence in AI for education will be set up with an allocation of ₹500 crore.
An additional 10,000 seats will be added in medical colleges and hospitals.
01-Feb-2025 11:13 AM IST
A National Mission focused on high-yielding seeds will be introduced.
A dedicated mission to boost cotton productivity will be launched, offering farmers advanced scientific and technological support.
The credit limit for the Kisan Credit Card will be raised from ₹3 lakh to ₹5 lakh, benefiting 7.7 crore farmers.
01-Feb-2025 11: 10AM IST
Finance Minister Nirmala Sitharaman outlines 10 key focus areas:
Boosting Agricultural Growth and Productivity
Fostering Rural Prosperity and Resilience
Advancing Inclusive Growth for All
Empowering MSMEs
Driving Employment-centric Development
Investing in Human Capital, the Economy, and Innovation
Ensuring Energy Security
Enhancing Export Competitiveness
Cultivating a Culture of Innovation
01-Feb-2025 11:05AM IST
Finance Minister Nirmala Sitharaman, while presenting the Union Budget 2025, stated, “Our structural reforms have captured global attention.”
01-Feb-2025 11:00AM IST
Finance Minister Nirmala Sitharaman began presenting the first full budget of the Modi 3.0 government, following the interim budget delivered in July last year.
01-Feb-2025 10:45 AM IST
Clad in a white saree, Finance Minister Nirmala Sitharaman was seen outside the ministry this morning holding a tablet encased in a ‘bahi khata’ sleeve, ahead of delivering her eighth consecutive Budget speech. She later met with President Droupadi Murmu at Rashtrapati Bhavan, where the Budget presentation received formal approval.
In 2019, Ms. Sitharaman broke away from the long-standing tradition of Finance Ministers carrying briefcases on Budget day by introducing the ‘bahi khata,’ symbolizing a shift from colonial practices to an Indian ethos. By 2021, she embraced a paperless approach, presenting the Budget with a tablet wrapped in the traditional cover.
Source: PTI
01-Feb-2025 9:30AM IST
Finance Minister Nirmala Sitharaman is set to present her record 8th consecutive Union Budget on Saturday, February 1, 2025, at 11 a.m. The budget is anticipated to include measures aimed at boosting sluggish economic growth, providing relief to the middle class grappling with high prices and stagnant wages, all while maintaining fiscal discipline.
With this budget, Ms. Sitharaman moves closer to the record held by former Prime Minister Morarji Desai, who presented 10 budgets during his tenure.
31-Jan-2025 12:45PM IST
PM Modi Begins 2025 Budget Session with Vision for a Developed India by 2047
Prime Minister Shri Narendra Modi addressed the media before the start of the 2025 Budget Session, paying homage to Goddess Lakshmi and seeking blessings for the country’s prosperity. He celebrated India’s 75 years as a Republic and emphasized the goal of transforming India into a developed nation by 2047. The Prime Minister outlined priorities of innovation, inclusion, and investment, discussed historic bills, and stressed the importance of empowering women and engaging the youth in India’s development. He also noted the absence of foreign disturbances, marking a peaceful start to the session.
31-Jan-2025 12:30PM IST
Budget Session Begins: President Murmu Highlights ‘Lakhpati Didi’ and India’s Growth
The Budget Session of Parliament kicked off today with President Droupadi Murmu addressing a joint sitting of both Houses. In her speech, she emphasized the government’s commitment to empowering women through the ‘Lakhpati Didi’ initiative, aiming to create three crore financially independent women.
She also highlighted significant infrastructure developments, including the completion of the Udhampur-Srinagar-Baramulla rail link and India’s growing aviation sector. The President praised women’s increasing roles in aviation, law enforcement, and corporate leadership.
Further, she discussed India’s advancements in AI with the launch of the ‘India AI Mission’ and expressed confidence in the upcoming Gaganyaan human spaceflight.
Union Finance Minister Nirmala Sitharaman tabled the Economic Survey, providing insights into the current economic performance. The government has also listed 16 Bills, including the Waqf (Amendment) Bill, for the session.
The first phase of the Budget Session will conclude on February 13 and reconvene on March 10, running until April 4.
Dr. Devesh Kumar Singh, Chairman of Noida International University
As the union budget 2025 approaches, the government should allocate a significant budget for improving infrastructure and learning practices to close the current gaps in the educational sector. The government’s measures need to encourage students to enroll in higher education by lowering loan interest rates and allowing them longer due dates to relieve financial stress from students and families.
Also, there is a need to add AI as a necessary learning model or subject in every college since industry has shifted dramatically in the last few years making AI a necessity in mostly all sectors. This will help India to become a global knowledge hub in a few years.
At last, the budget allocation must be more aligned towards student loans and funding the fee for students for their skill development. The grants for National Education Policy (NEP) must focus on the implementation of multidisciplinary institutions with flexibility. Also, the government must allocate some more funds to research and development (R&D), encouraging partnerships between businesses and universities.
To provide creative solutions to the education sector, public-private partnerships (PPPs) ought to be promoted. Working together with commercial organizations can make it easier to share technology, resources, and knowledge, improving the nation's overall educational quality.
Appalla Saikiran, Founder & CEO, SCOPE:
“India’s startup ecosystem, the third largest globally, boasts over 90,000 startups and 100+ unicorns with a combined valuation exceeding $400 billion. In 2023 alone, this vibrant ecosystem attracted $24 billion in funding and generated more than 900,000 jobs, highlighting its critical role in driving economic growth and innovation. As we approach the Union Budget 2025-26, it is vital to introduce policies that address pressing challenges, such as access to funding and regulatory bottlenecks. Simplifying the angel tax provisions, offering incentives for domestic VC funds, and establishing a clear framework for foreign investments will boost investor confidence and fuel the growth of new-age companies. The budget should also prioritize emerging sectors like artificial intelligence, climate tech, and deep tech, which hold immense potential for innovation and long-term economic resilience. With the right policy interventions, India’s startup ecosystem can not only expand its global footprint but also create an additional 1.5 million jobs by 2030, cementing the nation’s position as a global innovation leader.”
Manish Aggarwal, Founder & CEO, FINQY
As we approach the Union Budget, three key areas in personal finance deserve attention: easing MSME compliance, enhancing financial intermediary education, and rationalizing the tax burden.
MSMEs, the backbone of India’s economy, face overwhelming regulatory complexities. Simplifying compliance through streamlined tax structures and automated digital processes will empower these businesses to focus on growth and innovation, fostering economic resilience.
India’s growing middle class increasingly relies on financial products, yet many lack the knowledge to make informed decisions. Financial intermediaries, such as DSAs, work to bridge this gap. The Budget should introduce training programs and growth incentives to improve the quality of financial advice, enhancing consumer trust and transparency.
Finally, rationalizing the tax burden is critical for boosting household savings and investments. Raising income tax thresholds, increasing Section 80C deduction limits, and expanding incentives for financial instruments can provide much-needed relief. These measures will enhance disposable income, encourage long-term wealth creation, and stimulate consumption.
At FINQY, we believe these reforms will foster financial inclusion, empower individuals, and promote economic stability. We look forward to a Budget that simplifies personal finance and prioritizes the financial well-being of all Indians.
Samyak Jain, Co-founder and CEO, Zeko AI
“With India becoming the digital-first economy and a powerhouse of technological advancements and adoption, the upcoming budget holds great importance for startups in the technology and AI sectors. As a tech startup, we hope to see investment initiatives that nourish innovation and give a boost to AI infrastructure, startups working towards developing new technologies, and research and development. Support in streamlining data compliance will empower software startups.
AI adoption policies across sectors, along with investments in robust AI/data skills training, are vital for a globally competitive tech-driven workforce.
Finally, easy access to private funding and reduced compliance burdens for startups will accelerate growth and global scaling. This budget must empower India’s tech future.”
Lalit Ahuja, CEO, ANSR
“As India strengthens its position as a global hub for Global Capability Centers (GCCs), targeted fiscal and policy measures could further accelerate the sector’s growth. Simplifying the company registration process specifically for GCCs would reduce setup timelines, enabling faster investments and operations. Extending tax incentives, such as a 15% concessional tax rate, would foster innovation and attract global organizations to establish and scale their operations in India. Additionally, raising the threshold for Safe Harbour Rules would level the playing field for mid-sized GCCs, which are critical to driving the next wave of growth.
A uniform, centralized GCC policy could further enhance India’s appeal by streamlining compliance and creating a predictable environment for investors. With over 1,700 GCCs already employing 1.9 million professionals and projected revenues exceeding $100 billion by 2030, these reforms could solidify GCCs as a cornerstone of India’s economic future and global leadership.”
Ricky Vasandani, Co-founder and CEO, Solitario
“As India increasingly embraces sustainable luxury, this year’s Union Budget presents a valuable opportunity to encourage eco-conscious consumption. By fostering an environment that supports sustainable businesses and innovation, particularly in sectors like lab-grown diamonds, we can create a thriving ecosystem for luxury brands. Simplified regulations and forward-thinking policies will enable brands to flourish in an evolving market, helping India strengthen its position as a leader in environmentally responsible luxury while promoting a new era of conscious consumerism.”
Mr. Ashwani Singh, Managing Director of 35 North Ventures (SEBI Accredited Firm)
Over the past decade, India’s startup ecosystem has evolved into a global powerhouse, driving innovation. As Union Budget 2025 approaches, stakeholders eagerly anticipate policies that will further amplify this momentum.
I see immense opportunity to address critical pain points such as access to funding, tax inefficiencies and compliance burdens which can be addressed through targeted policy interventions to build a robust startup ecosystem.
Ease of Funding:
Propelling forward with programs like the Startup India Seed Fund Scheme (SISFS) and Fund of Funds for Startups (FFS) to address funding gaps, I believe that the introduction of co-investment models, offering private venture capitalists a prospect for alliance with government-backed initiatives, would unlock new funding sources and lessen the barriers to entry for startups in underserved regions.
Globally, similar approaches have demonstrated success such as the “Yozma” program, a government-backed initiative to encourage private investments in startups, which transformed Israel into a “Startup Nation.”
Tax Inefficiencies:
The current taxation structure, taxing Employee Stock Option Plans (ESOPs) at time of vesting and the high tax burdens on capital gains for Angel Investors, hinder progress in the employee retention and funding landscape. In the upcoming budget, I anticipate tax reforms to tackle these hurdles – simplifying ESOP taxation, streamlining capital gains tax structure across asset classes or introducing tax exemptions for angel investors and aligning them with global standards to encourage greater inflows of private capital into the startup ecosystem.
Infrastructure for Innovation:
To foster the economy of ideas, state-backed incubation hubs, innovation clusters, and advanced R&D labs are crucial. Providing affordable workspaces, access to advanced equipment, and mentorship programs can significantly accelerate startup growth. Initiatives like T-Hub in Telangana and Kerala Startup Mission (KSUM) serve as excellent examples that need to be scaled nationwide.
Sectoral Incentives:
Sectors such as AgriTech, ClimateTech and DeepTech are set to drive India’s long-term economic and environmental goals in the coming decade. Requiring heavy investment in R&D, targeted grants, subsidies, and tax benefits could spur innovation in these areas.
Streamlined Compliance and Regulatory Framework
Introduction of a unified clearance system and tackling redundancy in administrative filings to ease operational and bureaucratic burdens on startups will bolster growth of SMEs. Estonia’s e-Residency program which simplifies administrative processes for entrepreneurs, allowing them to establish and manage businesses entirely online, is a successful model which India could implement.
As I look ahead, I remain optimistic that Budget 2025 will not only address immediate challenges but also lay the foundation for a sustainable and thriving startup ecosystem that resonates with the aspirations of a new India.
Ms. Somdutta Singh, First-Generation Serial Entrepreneur, Founder & CEO Assiduus and Investor with Karma Holdings
The Indian startup ecosystem today stands at a pivotal juncture, marked by both remarkable achievements and significant expectations. With over 1.59 lakh recognized startups as of January 15, 2025, India has solidified its position as the third-largest startup ecosystem globally, driven by innovative ideas, government initiatives, and increasing tech penetration. This transformation is not merely quantitative; it has also fostered qualitative growth, with startups creating approximately 16.6 lakh direct jobs between 2016 and October 2024, underscoring their critical role in India’s economic landscape.
In recent years, startups have raised an impressive $150 billion since 2014, with a record $48 billion achieved during the peak funding year of 2021-22. Despite global economic challenges, the resilience of this ecosystem is evident as it secured $11.2 billion in funding in 2024, an increase from $9.4 billion in 2023. I am sure this growth trajectory will continue into 2025, with early indicators showing that startups have already raised $330 million by mid-January. The anticipation surrounding the first unicorn of the year reflects a booming optimism among investors and entrepreneurs alike.
Moreover, the Indian startup landscape is witnessing a significant shift towards intellectual property-driven and deep-tech innovations. This evolution marks a departure from the “me too” startups of the past decade towards original ideas that leverage advanced technologies such as AI and robotic process automation. This trend is further supported by key policy changes, including the abolition of the angel tax on startup investments in July 2024, which has created a more conducive environment for innovation and growth.
Looking ahead to 2025, I am definitely expecting a historic surge in IPOs, with at least 23 new-age tech startups poised to enter public markets – almost double the number from 2023 when 13 startups went public. This trend not only reflects investor confidence but also indicates a maturation within the ecosystem where early-stage companies are now transitioning into growth and pre-IPO phases.
The government’s ongoing support through initiatives managed by SIDBI has further bolstered this ecosystem. The Fund of Funds Scheme has disbursed over Rs 10,805 crore to alternate investment funds, which in turn invested Rs 18,000 crore into more than 1,030 startups. Such financial backing is crucial as it empowers startups to innovate and expand their operations beyond metropolitan areas into Tier II and III cities. The Indian startup sector’s journey thus far has been characterized by rapid growth and resilience amidst adversity. As we look forward to the Budget, stakeholders are hopeful for measures that will simplify tax structures, enhance access to credit, and promote infrastructure development – all vital components for sustaining this momentum. I am confident, this collective aspirations of entrepreneurs and investors reflect a vision for not only immediate relief but also long-term sustainability that aligns with India’s economic goals of becoming a developed nation by 2047.
“As Union Budget 2025 approaches, we anticipate focused measures that address the critical needs of SMEs, employees, and the workforce at large.
Micro, Small, and Medium Enterprises (MSMEs), which contribute nearly 30% to India’s GDP, are the backbone of job creation and economic growth. Simplified compliance processes and easier access to financing are essential for their success. The eagerly awaited implementation of the Code on Wages could transform labor regulations by unifying and simplifying wage laws. This reform promises greater transparency, improved labor conditions, and fairer compensation, reducing burdens for both businesses and workers. Combined with rationalized taxation and incentives for workforce expansion, such measures can create a thriving, competitive ecosystem.
Easing financial pressures on employees is just as important. As the heart of India’s workforce, employees are seeking relief through income tax reforms. By enhancing disposable incomes, the government can provide much-needed financial respite, boost consumer confidence, and fuel domestic demand, driving broader economic progress.
Further, to sustain growth, investing in human capital is vital. Upskilling and reskilling initiatives can prepare the workforce for emerging technologies, ensuring India’s global competitiveness in a rapidly changing world. Supportive policies that encourage such investments will enhance productivity and innovation across industries.
At greytHR, we are committed to empowering businesses with innovative tools and technology to simplify compliance, enhance employee engagement, and build future-ready workforces. By addressing these shared aspirations, we can unlock India’s immense economic potential and create a brighter, more inclusive future for all.”
Mr. Shashank Noronha, Founder, TABBSZ
“As an entrepreneur committed to sustainability and innovation, I hope the upcoming budget prioritizes policies that empower MSMEs and startups driving meaningful change. By introducing tax incentives for eco-friendly products, simplifying regulatory processes, and investing in waste management, skill development, and infrastructure, the government can create a strong foundation for sustainable businesses to grow and succeed. These measures will not only accelerate India’s transition to a greener economy but also generate green jobs and advance the ‘Make in India’ and ‘Swachh Bharat’ missions. Additionally, steps to boost disposable income will encourage conscious consumer spending, fostering a marketplace that is both resilient and responsible. We are fully committed to contributing to this shared vision and playing an active role in building a cleaner, more sustainable future for India. “
Ganesh Sonawane, Founder and CEO of Frido
“India’s startup ecosystem is a thriving hub of innovation, and we hope that the Union Budget 2025 reflect its potential. Startups, particularly those focusing on health-focused innovations, stand to benefit greatly from policies that streamline GST processes, introduce R&D tax incentives, and provide easier access to funding could ignite a wave of innovation, empowering manufacturers and startups to meet the increasing demand for wellness products. Encouraging startups to scale manufacturing for global markets will also be crucial in reinforcing the Make in India for the world initiative. With the right support, entrepreneurs can position India as a global hub for wellness and ergonomic solutions, showcasing the country’s ingenuity and innovation on the world stage.”
Vinay Singh, Executive Director and CEO of Q&I and Thomson Digital
“As we approach Union Budget 2025-2026, the EdTech industry looks forward to visionary policy support that catalyzes innovation and growth. The transformative potential of technology in education has become undeniable, especially in enhancing accessibility, personalized learning, and upskilling.
We urge the government to consider enhanced allocations for digital infrastructure in underserved regions, enabling widespread access to high-quality education. Tax incentives for research and development in EdTech solutions and subsidies for institutions adopting digital tools would also significantly encourage sector-wide innovation.
Additionally, partnerships between the private sector and government could expedite the integration of cutting-edge technologies like AI, AR/VR, and adaptive learning platforms into mainstream education. A focus on teacher training and content localization would further ensure that digital tools are both impactful and inclusive.
At Q&I, we remain committed to fostering learner-centric solutions that empower educators and students alike. With the right policy framework, 2025 could be a landmark year for making quality education accessible to every corner of the nation.”
Promoting STEM Education & Paving the way for an inclusive and innovation-driven education system.
India is projected to play a significant role in global workforce expansion, contributing about 20% of worldwide workforce growth from 2023 to 2050. STEM education is at the core of this transition, and the Rashtriya Avishkar Abhiyan (RAA) can serve as a foundational platform for preparing students for this emerging landscape and must prioritize reforms under the RAA to align with the demands of Industry 4.0 – Dr. Shashiranjan Jha, Associate Vice President, Education and Skill Development, IPE Global (international development consulting firm)
“We anticipate that the upcoming Union Budget will prioritize infrastructure spending, which will significantly benefit our lending segments, particularly small businesses, contractors, and transporters. This focus on infrastructure is expected to lead to a surge in demand for steel, cement, and other materials, further driving demand in vehicle finance and other sectors reliant on bulk materials. This will not only boost economic activity but also create substantial employment opportunities, especially in semi-urban and rural areas. We foresee new vehicle sales growth in Q4 to be in double digits year-on-year, as we expect government spending on infrastructure to be much higher than previous quarters.”
Given the global uncertainties prevalent today, the Union Budget for 2024 will be crucial to India’s economic trajectory. As we stand at the cusp of economic recovery, there are high expectations for reforms and the introduction of initiatives that will help address challenges and capitalize on opportunities. Here are some key areas where the Finance Minister could deliver impactful measures:
Revitalizing the SME/MSME Sector
Small and Medium Enterprises (SMEs) and Micro, Small, and Medium Enterprises (MSMEs) form the backbone of the Indian economy. However, this sector has been under pressure due to geopolitical instabilities, subdued manufacturing growth, and export challenges. To ensure they stay resilient, the following measures are crucial:
Enhanced Access to Credit
SMEs often struggle to secure timely and affordable credit. A robust credit guarantee mechanism, simplified loan approval processes, and lower interest rates could provide the liquidity needed for their survival and expansion.
2. Focus on Skill Development
SMEs are India’s largest employment generators. Skill development initiatives tailored to emerging industry needs can enhance workforce productivity and competitiveness. Empowering Tier-2 and Tier-3 cities through upskilling programs will be vital for balanced regional growth.
3. Support for Manufacturing and Exports
Tax incentives on capital expenditures and subsidies for technology adoption can boost manufacturing efficiency. For exporters, structural support in the form of trade incentives, streamlined compliance processes, and partnerships for market access will open global opportunities.
4. Simplifying GST Compliance
Simplifying Goods and Services Tax (GST) compliance and addressing operational challenges will allow SMEs to focus on growth rather than address administrative challenges.
Skill Development and Employment Generation
With India’s demographic dividend, the budget should prioritize skilling initiatives that enable labor transition from agriculture to industrial and service sectors. The focus on vocational training and digital literacy will unlock potential and improve employability, especially in underrepresented regions.
Programs targeted to the specific needs of high-growth industries, such as automotive, retail, and technology, will amplify productivity and foster a culture of innovation.
Strengthening Research and Development (R&D)
India’s R&D spending, at approximately 0.65% of GDP, lags behind global benchmarks. Strategic investments in R&D can fuel innovation, particularly in high-technology and manufacturing sectors. Key recommendations include:
Increasing budget allocations for R&D incentives.
Encouraging public-private partnerships in research initiatives.
Strengthening the Intellectual Property Rights (IPR) framework to protect innovation.
Such steps will enhance competitiveness, attract foreign investments, and position India as a global leader in technology-driven sectors.
Promoting Foreign Trade and Investment
Trade agreements can be a game-changer in integrating Indian businesses into global supply chains. Agreements that enhance market access, promote technology transfer, and reduce trade barriers will drive exports and investment inflows.
Additionally, policies promoting infrastructure development and logistics optimization will lower costs and improve India’s attractiveness as a manufacturing hub.
Taxation Stability and Simplification
Consistency in tax policies is crucial for business planning and investment. Tax stability minimizes uncertainty, enabling corporates to strategize long-term expansion. Simplified tax structures, particularly for SMEs and startups, will encourage compliance and growth.
Fostering Technological Adoption
The adoption of advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML), and the Internet of Things (IoT) is pivotal to economic progress. The government must:
Establish clear regulatory frameworks for AI and ML to balance innovation with ethical considerations.
Provide incentives for technology adoption in traditional industries.
Support a connected economy by investing in digital infrastructure and cybersecurity.
By fostering digital transformation, India can enhance productivity, reduce costs, and open avenues for new business models.
Focus on Sustainability and Green Growth
Environmental, Social, and Governance (ESG) strategies should take center stage in the budget. Initiatives to promote renewable energy adoption, green finance, and sustainable industrial practices are crucial. Incentives for energy-efficient manufacturing and tax benefits for green projects will align India’s growth trajectory with global sustainability goals.
Boosting Semiconductor Manufacturing
Semiconductor manufacturing is integral to India’s aspirations of becoming a technology hub. Establishing semiconductor manufacturing clusters, Special Economic Zones (SEZs), and offering R&D grants will attract investment and create jobs in this critical sector.
The Road Ahead
India’s $5 trillion economy dream will need focused and strategic interventions to become a reality. The 2024 Union Budget must address immediate challenges while laying the foundation for long-term growth. Measures that empower SMEs, foster innovation, and prioritize sustainability will ensure India’s economic resilience and global competitiveness.
As industry leaders remain optimistic about growth despite global headwinds, the government’s proactive policies and initiatives will play a decisive role in shaping India’s future. The upcoming budget is not just an economic statement—it is an opportunity to redefine India’s path to inclusive and sustainable growth.
Author: Ratish Pandey, Business Coach & Founder, Ethique Advisory
Disclaimer: The views expressed in this article are solely those of the author and do not necessarily reflect the opinions or policies of ObserveNow Media. The author is solely responsible for ensuring the accuracy, completeness, and validity of the information presented, encouraging readers to independently verify and seek professional advice if needed.
Cybercriminals Exploit Maha Kumbh Mela 2025 with Fake Online Stores, Warns Kaspersky
Observenow Desk
As India prepares for the Maha Kumbh Mela 2025, one of the world’s largest religious gatherings, cybercriminals are taking advantage of the event by setting up fraudulent online stores, security experts at Kaspersky have warned.
This edition of the Maha Kumbh Mela is considered particularly significant due to a rare planetary alignment, making it the most auspicious in 144 years. The event is expected to draw millions of devotees, including international attendees. However, cyber scammers are leveraging this global interest to deceive individuals through fake e-commerce websites, tricking them into making payments for non-existent products.
Jaydeep Singh, General Manager for India at Kaspersky, highlighted the growing cyber threats surrounding the event. He stated that cybercriminals stay updated with major global events and know how to exploit public enthusiasm. With emotions running high, many consumers may be vulnerable to scams. He urged people to verify online stores before making purchases to protect their identity and finances.
Kaspersky has advised consumers to take certain precautions to avoid falling victim to such scams. One key recommendation is to verify website authenticity by checking URLs, domain names, and customer reviews before making transactions. Consumers should also be cautious of unsolicited offers, avoiding pop-ups, advertisements, or phishing emails that direct them to potentially fraudulent sites.
Additionally, Kaspersky warns against sharing personal information on unverified platforms and emphasizes the importance of using comprehensive cybersecurity solutions. Reliable security software, such as Kaspersky Premium, can help block phishing sites and prevent malware infections, ensuring safer online transactions.
With cyber threats targeting this significant religious event, experts urge attendees and devotees to stay vigilant and adopt secure online practices to avoid financial losses.
Chinese AI Startup DeepSeek Exposes Sensitive Data Online, Says Cybersecurity Firm Wiz
Observenow Desk
New York-based cybersecurity firm Wiz has discovered a significant data exposure from Chinese artificial intelligence startup DeepSeek, revealing a trove of sensitive information inadvertently left unsecured on the open internet.
In a blog post published Wednesday, Wiz reported that scans of DeepSeek’s infrastructure uncovered over a million lines of unprotected data, including digital software keys and chat logs containing user prompts to the company’s free AI assistant.
According to Wiz’s Chief Technology Officer, Ami Luttwak, DeepSeek acted swiftly to secure the exposed data after being alerted. “They took it down in less than an hour,” Luttwak said. “But this was so simple to find that we believe we’re not the only ones who came across it.”
DeepSeek has yet to respond to requests for comment on the incident.
The breach comes amid DeepSeek’s rapid rise in the AI industry, capturing China’s attention while raising concerns in the U.S. over competition with American tech giants. The company’s AI assistant has gained traction at an astonishing pace, challenging the business models of firms like Nvidia and Microsoft with its cost-effective alternative to OpenAI’s technology.
By Monday, DeepSeek had surpassed U.S. rival ChatGPT in downloads from Apple’s App Store, contributing to a global selloff in tech stocks.
AI Data Startup, Turing triples Revenue to $300 Million
Observenow Desk
Palo Alto-based artificial intelligence data startup Turing announced that its revenue soared to $300 million last year, tripling from the previous year and reaching profitability. The company, which provides human trainers to AI labs, has seen rapid growth fueled by increasing demand for specialized data annotation services.
Turing, which counts OpenAI, Google, Anthropic, and Meta among its clients, was last valued at $1.1 billion in 2021. As AI models advance, they require more nuanced human expertise to improve their capabilities, a trend that has significantly boosted the valuations of AI data firms like Turing and its competitor Scale AI, which was valued at $14 billion last year.
“Companies like Turing are helping the scaling laws keep going to make up for the data deficit that we have,” said Turing CEO Jonathan Siddharth. He noted that as AI labs hit the “data wall”—a plateau in model performance due to a lack of sufficient internet training data—human trainers become indispensable in refining AI models.
Turing boasts access to a vast network of over 4 million human experts, including software developers and scientists with doctorate degrees, who help label data for AI models. This approach alleviates the burden on AI companies, allowing them to focus on model development rather than managing vast numbers of data annotators.
The costs associated with high-quality data labeling are substantial. “One complex annotation can cost hundreds of dollars,” Turing stated, emphasizing the extensive investment required to train cutting-edge AI systems. For instance, Meta utilized over 10 million human annotations while developing its Llama 3 models, according to Meta executive Joe Spisak.
Stampede at Maha Kumbh Before Amrit Snan, Several Injured, Rituals Put on Hold
Observenow Desk
A stampede broke out at the Maha Kumbh on Wednesday ahead of the sacred Amrit Snan during Mauni Amavasya, where an estimated 10 crore devotees were expected to take part. The incident occurred in the Sangam Nose area around 1:00 AM after barriers collapsed, creating chaos among the pilgrims.
Emergency services responded swiftly, with ambulances rushing the injured to the central hospital inside the Mela grounds. Officials confirmed that several people were brought dead to the hospital.
Special Executive Officer Akanksha Rana addressed the situation, stating, “A stampede-like situation arose on the Sangam routes after some barriers broke. Some people have been injured and are receiving treatment. However, it is not a serious situation.”
Following the incident, the second Amrit Snan was temporarily put on hold. President of the Akhil Bhartiya Akhara Parishad (ABAP), Mahant Ravindra Puri, revealed that authorities advised them to delay the ritual. “The administration has requested us not to proceed with the Amrit Snan. Though the seers and Naga Sadhus were prepared, we have decided to stay back for now and will decide on the next course of action soon,” he told TOI.
Later, the ABAP announced the cancellation of the Amrit Snan, citing overwhelming crowds and the unfortunate incident at Sangam. Mahant Puri confirmed that all akharas had unanimously agreed not to proceed with the ritual. “We will now take the third Amrit Snan on February 3. As for the Mauni Amavasya Snan, we have decided to cancel it,” he added.
The Amrit Snan on Mauni Amavasya is the most significant ritual of the Maha Kumbh, particularly this year due to the rare Triveni Yog, an astronomical event occurring after 144 years, enhancing the occasion’s spiritual significance.
IPS Officer Rajesh Nirwan Appointed as DG of Bureau of Civil Aviation Security
Observenow Desk
The Appointments Committee of the Cabinet (ACC) has approved the appointment of senior IPS officer Rajesh Nirwan as the Director General of the Bureau of Civil Aviation Security (BCAS) under the Ministry of Civil Aviation. According to an order from the Department of Personnel & Training (DoPT), Nirwan will assume charge from the date of joining and will continue in the role until further orders.
A 1992-batch IPS officer from the Rajasthan cadre, Nirwan brings extensive experience in law enforcement and security management. BCAS, the country’s premier aviation security agency, is responsible for enforcing safety protocols and preventing unlawful interference in civil aviation.
Originally from Jodhpur, Rajasthan, Nirwan holds qualifications as a Chartered Accountant, MBA, and a Master’s in Police Management. He began his career as Superintendent of Police (SP), CID (CB), Jaipur, and later served as police chief in Jhalawar, Sawai Madhopur, Tonk, and Kota.
In 2007, he was promoted to Deputy Inspector General (DIG) of Police and served a two-year tenure with the Central Bureau of Investigation (CBI). He became Inspector General (IG) of Police in 2010, leading the Ajmer Range until 2012. From 2016 to 2023, Nirwan held senior leadership roles as IG and Additional Director General of Police in the Border Security Force (BSF), New Delhi.
His vast expertise in security operations is expected to bolster aviation security measures across the country.
Tripura Signs MoU with Digital India Bhashini to Promote Regional Languages and Digital Inclusion
Observenow Desk
The Government of Tripura has signed a Memorandum of Understanding (MoU) with the Digital India Bhashini Division (DIBD) of the Ministry of Electronics and Information Technology (MeitY), marking a significant step towards promoting regional languages and enhancing citizens’ digital participation through multilingual governance, according to an official release on Tuesday.
The MoU signing ceremony took place at Pragna Bhavan in Agartala during the state-level workshop ‘Bhashini Rajyam,’ inaugurated by Tripura’s IT Minister Pranajit Singha Roy. The event was attended by key officials, including Kiran Gitte, Secretary IT; Amitabh Nag, CEO of DIBD, MeitY; and Jeya Ragul Geshan B., Director IT, Government of Tripura.
Bhashini, an initiative under the Digital India program, aims to facilitate seamless communication and internet accessibility in 22 Indian languages. By leveraging voice-based technology, it seeks to bridge both digital and literacy divides.
The workshop highlighted Bhashini’s role in digital inclusivity, showcasing its advanced software capabilities such as real-time translation, speech-to-text, text-to-speech, and voice-to-voice translation between Indian regional languages and English. It emphasized the use of Artificial Intelligence (AI) and Natural Language Processing (NLP) for accurate translations while outlining the responsibilities of Tripura’s government and DIBD in implementing the initiative.
Discussions also focused on strategies to promote regional languages on digital platforms and software applications within Tripura’s government, aiming to enhance inclusivity and reduce the digital divide. Many residents, particularly those in rural and tribal areas, face language barriers when using software systems designed primarily in English or Hindi. Bhashini’s integration with platforms such as the CM Helpline, eVidhan, Kisan Sahayata App, and e-Districts will enable multilingual communication, enhancing local governance through apps like Amar Sarkar and improving education with multilingual tools. Additionally, its implementation in the Crime and Criminal Tracking Network & Systems (CCTNS) will support voice-based data entry and FIR translations, improving accessibility for law enforcement.
Tripura has become the first northeastern state, the first in eastern India, and the eighth state in the country to sign an MoU with Bhashini. This milestone reflects the state’s commitment to digital inclusivity and leveraging technology for citizen-centric governance. Tripura joins a select group of pro-citizen states actively conducting workshops on Bhashini, with only four other states having taken similar initiatives.
By integrating Bhashini into Tripura’s e-Governance framework, the state aims to bridge the digital divide, provide cost-effective translation solutions, implement inclusive policies, and strengthen regional identity. This MoU marks a crucial step toward seamlessly incorporating Bhashini into governance systems, supported by DIBD, MeitY. The initiative will empower citizens by eliminating language barriers and enabling multilingual access to essential services, fostering a more inclusive and digitally connected society.
