Finance Minister Nirmala Sitharaman on Saturday said that the changes and measures proposed in the Union Budget 2025 were a response to the needs of Indian citizens and had nothing to do with US President Donald Trump’s tariff threats.
While presenting the budget in Lok Sabha on Saturday, Sitharaman announced that there will be no income tax payable on income of up to Rs 12 lakh. The new income tax regime is structured to be more simplified and beneficial to the middle class, the finance minister noted.
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When asked if the income tax rejig and changes in customs duty were proposed as a consequence of Trump’s tariff threats, Sitharaman said, “We responded to the voice of the people and therefore we have given this (income tax relief).”
A week after assuming the presidency,
Trump reiterated his tariff threat to Brics nations, which comprises Brazil, Russia, India, China and South Africa along with other newly appointed countries.
“The idea that the BRICS countries are trying to move away from the dollar, while we stand by and watch, is OVER,” Trump wrote on Truth Social on Thursday. “We are going to require a commitment from these seemingly hostile countries that they will neither create a new BRICS currency nor back any other currency to replace the mighty US dollar or, they will face 100% tariffs, and should expect to say goodbye to selling into the wonderful US economy,” he added.
As she presented the budget, Sitharaman announced the scrapping of import taxes on electronic components to give a boost to domestic production. This means that India will no longer charge tariffs on components like camera modules and circuit boards.
The government also reduced import taxes on components like open cells, used in manufacturing flat panel displays, and glass sheets to 5 per cent. Previously, some of these items were subject to duties as high as 15 per cent.
Speaking to reporters at the post-budget press conference, Sitharaman said, “Tariffs are being brought down and are simplified now. The basket which consisted of different tariffs is now reduced. That is all about India’s tariff picture.”
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On Trump tariff pressure, Sitharaman says ‘Income tax rebates not offered with that in mind’
