‘2025 A Year Of Reforms For Trust, Simplicity & Predictability’

In a year marked by geopolitical fragmentation, trade uncertainty, supply chain realignments, and battles for technological supremacy, India’s macroeconomic stability stood out. Growth came in at 8.2% in the latest quarter, inflation remained low, and fiscal deficit manageable.
Domestic demand is the bedrock of any stable economy, and tax policy plays a role in stimulating household consumption. India saw both direct and indirect tax reforms this year. In Feb, the Budget put more money in people’s hands by making salaries up to ₹12L effectively tax-free. Then, in Sept, GST reforms introduced a two-slab structure and simplified governance. Consumer sentiment has soared, with festive sales reaching ₹6L cr. Importantly, these moves are not revenue losses, as the resultant consumption and growth spurt will increase tax collections in coming years.