The New Income Tax Bill 2025 aims to simplify tax laws in India, focusing on simplifying language, reducing litigation and compliance, and removing obsolete provisions. It introduces a taxpayer's charter, merges TDS/TCS sections, and aligns terminology with international norms. Likely effective from April 1, 2026, it promises streamlined processes without major tax rate changes.
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A recent CII survey shows optimism in the Indian economy, with 75% of companies finding the environment favorable for private investments. 97% of firms plan to increase employment in FY25 and FY26, with anticipated wage growth and personal consumption boosts. India's 'Viksit Bharat' vision by 2047 depends on creating quality jobs.
US inflation saw a notable increase in January, driven by rising costs in groceries, gas, and housing. Core CPI also exceeded expectations, spurred by higher car insurance, airfares, and prescription drug prices, suggesting inflation progress has stalled despite a steady labour market.
Global central banks continued to bolster their gold reserves in November 2024, adding 53 tonnes collectively. India, the second-largest buyer of the year, increased its reserves to 876 tonnes. Poland led purchases with 21 tonnes. Other notable buyers included Uzbekistan, China, and Turkey. Conversely, Singapore and Finland saw reductions in their gold reserves.
India's copper demand is set to grow by 7% due to renewable energy and infrastructure projects. With a gap between domestic production and consumption, the country imports 500,000 tonnes annually. Major companies are investing in copper production. The closure of Vedanta's Sterlite plant significantly impacted supply, turning India into a net importer.
India's retail inflation hit a 5-year low of 3.3% in March, driven by significantly lower food prices. This development is expected to prompt the RBI to cut interest rates to bolster growth amid global economic uncertainties. Experts anticipate retail inflation to remain stable, although geopolitical tensions and weather events require monitoring.
Indian startups saw a funding revival in 2024, reaching $11.3 billion, slightly up from $10.7 billion in 2023. While VC firms have ample capital, they are cautiously deploying funds, prioritizing profitability and strong governance. Zepto led funding with $1.4 billion, but overall deal closures were uneven throughout the year. Investors remain optimistic about India's growth potential.
Finance Minister Nirmala Sitharaman announced unprecedented tax relief in the Budget to support domestic production and enhance export competitiveness. The new Income Tax Bill, addressing digital record examinations, is set for discussion during the monsoon session of Parliament, aiming to update the 63-year-old law.
India's GDP is projected to grow between 6.5% and 6.8% in 2024-25 with potential growth of 6.7% to 7.3% the following year. Economic challenges are noted, including sluggish global trade and investment. Positive aspects include strong rural consumption, thriving services sector, and resilient capital markets, despite geopolitical tensions.
The rupee fell to a record low of 85.53 against the dollar, driven by panic dollar buying and increased demand from the month-end, leading RBI to intervene by selling dollars. Despite RBI's intervention, higher US Treasury yields, crude oil prices, and foreign fund outflows kept the rupee under pressure.
In 2025, HR will be shaped by hybrid work models, mental health focus, DEI advancements, and AI integration. Demand for specialized talent and rising CXO salaries will be notable trends, with green energy and AI-driven sectors leading in compensation. Skill development remains crucial for workforce competitiveness.