Union Budget 2025-26: Revolutionizing India's Financial Landscape

The Union Budget 2025-26 introduces significant reforms in India's insurance sector and income tax regime, aiming at broader financial inclusion and economic growth. It includes increased foreign investments, tax benefits, and digital initiatives to boost the insurance sector and revised tax policies for individuals and businesses.

The Union Budget 2025-26 has unveiled significant changes in India's insurance sector and income tax system, paving the way for increased financial inclusion and economic progression. Aimed at achieving 'Insurance for All by 2047', the government's initiatives underscore a commitment to strengthening the financial ecosystem.

Key insurance sector reforms include an increase in the Foreign Direct Investment limit from 74% to 100%, extensive tax benefits for micro and rural insurance, direct government subsidies, and a focus on digital distribution. These measures are expected to substantially boost the insurance market, especially in rural areas.

On the income tax front, the revised tax slabs translate to lower tax rates, enhancing savings for individuals and businesses. Additionally, the budget offers deductions and rebates, relief for homebuyers, and support for startups and MSMEs. These comprehensive changes highlight the budget's role as a transformative tool for a more financially inclusive India.

(With inputs from agencies.)