Union Budget 2025: Tax Reforms and Duty Cuts

India's finance minister Nirmala Sitharaman announced significant tax reforms and import duty reductions in the latest Union Budget. The tax exemption limit was increased to Rs 12 lakh annually, positioning India's tax rates lower than major economies like China, France, and the US. Additionally, customs duties on key electronic components, including smartphone parts, were slashed, potentially boosting domestic manufacturing and export competitiveness. The customs duty on carrier-grade Ethernet switches was also halved, reducing costs for data centers and telecom infrastructure, thereby supporting 5G expansion. These changes aim to enhance India's electronics manufacturing capabilities and digital infrastructure, fostering investment and growth in sectors like broadband and smart technologies. Overall, these budgetary measures are expected to improve India's global trade competitiveness and consumer affordability of electronic devices.