The Income Tax Bill, 2025 is raising serious concerns about privacy and government overreach. Under this new law, tax officials will have the power to access personal emails, social media accounts, bank details, and investment portfolios—not based on solid evidence, but on mere suspicion. This means anyone could be placed under scrutiny without clear justification. While tax compliance is important, this law goes far beyond that. It risks turning India into a surveillance state, where ordinary people may feel constantly watched and vulnerable to misuse of power. Instead of ensuring transparency and fairness, such unchecked authority could lead to harassment, false accusations, and damage to reputations. Now where is the line between accountability and intrusion?
At the same time, economic struggles continue to weigh heavily on the middle class. Prices of essential services like housing, education, and healthcare are rising rapidly, but salaries are not keeping pace. Many families are forced to rely on costly private services due to the poor quality of public facilities. The government speaks of making India a developed nation, but reality suggests otherwise. Currently, India’s per capita income is only $2,700, far below the $14,000 needed to be classified as a high-income country. Even reaching the next level—upper-middle-income status, which requires a per capita income of $4,516—will take years. According to the World Bank, at the current rate of growth, it could take decades for India to reach even a quarter of the income levels of developed nations. While ambitious targets are set, there is little clarity on how they will be achieved.
Meanwhile, India’s trade policies with the US are being debated, with recent discussions on reducing tariffs raising concerns about their impact on local businesses and farmers. Tariffs help protect domestic industries by ensuring they are not crushed by competition from bigger global players. Lowering them without careful planning could make it harder for Indian businesses to survive, leading to job losses and increased economic inequality. While international trade is important, it should not come at the cost of local livelihoods.
-Team CFA