The Income Tax Department of India has successfully leveraged artificial intelligence (AI) tools over the past four years, resulting in significant improvements in taxpayer compliance and revenue generation. The Central Board of Direct Taxes (CBDT) Chairman, Ravi Agarwal, stated that these advancements have encouraged over one crore taxpayers to voluntarily update their returns, contributing an additional ₹11,000 crore to the government's tax revenues.

Key highlights of the developments in the Income Tax Department include:

• Revenue Generation: The AI initiatives have led to the identification of ₹29,000 crore in previously undisclosed foreign assets and ₹1,000 crore in foreign income related to virtual digital assets (VDAs).

• AI Tool Functionality: The AI technology used by the department is divided into two primary components: the AI tool itself and the database it analyzes. Different AI tools are employed throughout various stages of taxpayer processing, particularly in the Centralized Processing Centre located in Bengaluru.

• Taxpayer Analysis Process:

  • The AI system analyzes the Annual Information Statements (AIS) generated for approximately 40 crore unique taxpayers, where only around 9 crore individuals file tax returns.
  • The first step of AI analysis assesses whether unfiled taxpayers (around 31 crore) should be submitting returns.
  • The second part evaluates the accuracy of the tax returns filed.
  • The system also identifies habitual defaulters through pattern recognition.

• NUDGE System Implementation: The Income Tax Department employs a strategy named NUDGE (Non-intrusive Usage of Data to Guide and Enable) to contact taxpayers. Through targeted letters, the department encourages individuals either to revise their returns or confirm them as necessary.

• Return Filing Changes: The department recently updated its regulations to allow taxpayers to correct their returns within four years of filing, an extension from the previous two-year limit. This adjustment aims to give taxpayers a fair chance to rectify any discrepancies flagged by the department.

• Political Donations Campaign: In a collaborative effort, the department also conducted a targeted campaign from January to March, nudging taxpayers who claimed deductions under Section 80GGC of the Income Tax Act for political donations. Communication went out via SMS and email, with safeguards in place to exclude genuine donors verified through records filed by political parties with the Election Commission.

• Impact of the Political Donations Campaign: As a result of the nudge campaign, 6.25 lakh taxpayers were contacted, leading to 35,260 taxpayers amending their returns and additional tax revenues of ₹404.2 crore. The outreach focused on claims made for the financial years 2022-23, 2023-24, and 2024-25.

Overall, these initiatives reflect the Income Tax Department's progressive approach toward increasing compliance and improving tax administration through the integration of technology and taxpayer engagement strategies.

Important Points:

• The Income Tax Department has encouraged over 1 crore updates leading to ₹11,000 crore in additional tax revenue.
• Disclosure of ₹29,000 crore in foreign assets and ₹1,000 crore in income from VDAs.
• The AI analysis incorporates taxpayer data from 40 crore AIS, with only 9 crore filing returns.
• The NUDGE system helps guide taxpayers to revise or confirm returns.
• Rules changed to permit return updates up to four years post-filing.
• A targeted nudging campaign for political donations involved 6.25 lakh taxpayers, leading to an additional ₹404.2 crore in tax.
• Campaign measures were taken to ensure genuine donators were not targeted for amendments.

The Union Minister of State for Tribal Affairs, Shri Durgadas Uikey, recently provided a written response in the Rajya Sabha regarding the "DhartiAabaTribePreneurs 2025" initiative. This initiative is a significant component of the Janjatiya Gaurav Varsh program, which celebrates the 150th birth anniversary of Bhagwan Birsa Munda, an esteemed tribal freedom fighter. The event took place from April 3 to April 5, 2025, at Bharat Mandapam, New Delhi, as part of the Startup Mahakumbh 2025.

Key Highlights:

• Event Significance:

  • The "DhartiAabaTribePreneurs 2025" serves as a transformative platform aimed at enhancing the entrepreneurial capabilities of Scheduled Tribe (ST) individuals.
  • It showcases India's most promising tribal startups, facilitating interaction with industry leaders, venture capitalists, and impact investors.

• Objectives and Opportunities:

  • The initiative aims to provide ST entrepreneurs with the chance to exhibit their innovations and engage in networking with top-tier investors.
  • It includes technical sessions featuring prominent unicorn founders and leaders from the startup ecosystem.
  • The focus of the program is on promoting innovation, inclusivity, and market expansion for tribal-led enterprises on both national and global platforms.

• Partnerships for Impact:

  • The Ministry of Tribal Affairs has collaborated with several prestigious institutions including IIM Calcutta, IIT Delhi, IIM Kashipur, IIT Bhilai, IIT Guwahati, IFCI Venture Capital Funds Limited, and META.
  • This collaboration is designed to ensure a sustained impact on tribal startups by leveraging the expertise and resources of these organizations.

• Venture Capital Fund:

  • A noteworthy outcome from this initiative is the establishment of a dedicated Venture Capital Fund for Scheduled Tribes.
  • The fund has an initial corpus of ₹50 crore, aiming to foster entrepreneurship and stimulate innovation among tribal communities.

Conclusion: The "DhartiAabaTribePreneurs 2025" initiative represents a strategic response to boost tribal entrepreneurship in India. By providing a comprehensive platform for exposure, mentorship, and investment, it supports the overall economic empowerment of ST communities while commemorating the legacy of Bhagwan Birsa Munda.

Important Bullet Points:

• "DhartiAabaTribePreneurs 2025" is part of the Janjatiya Gaurav Varsh, marking Bhagwan Birsa Munda’s 150th birth anniversary.
• The event was held from April 3-5, 2025, at Bharat Mandapam, New Delhi.
• It aims to enhance entrepreneurship among Scheduled Tribe (ST) individuals and promote economic growth.
• Opportunities include showcasing innovations, networking, and engaging with industry leaders.
• The initiative emphasizes innovation, inclusivity, and market expansion for tribal businesses.
• Collaborated with premier institutions like IIMs and IITs for impactful support.
• A Venture Capital Fund for Scheduled Tribes with an initial corpus of ₹50 crore has been established to foster entrepreneurship.

Summary of Recent Developments Regarding Rare Earth Minerals in India

The Indian government's efforts to explore, develop, and regulate rare earth minerals (REMs) are underway, largely spearheaded by the Atomic Minerals Directorate for Exploration and Research (AMD) and the Ministry of Mines. The comprehensive strategies and amendments to laws signal a significant focus on securing domestic and international supply chains for these critical minerals. Below are the key highlights:

• Current Resources:

  • AMD estimates approximately 7.23 million tonnes (Mt) of Rare Earth Elements Oxide (REO) present in monazite along the coasts and riverine areas of several states, including Andhra Pradesh and Odisha.
  • Furthermore, 1.29 Mt of in-situ REO resources have been identified in hard rocks in Gujarat and Rajasthan.
  • The Geological Survey of India (GSI) has also identified 482.6 Mt of REE ore resources across 34 exploration projects.

• Import and Export Data:

  • Over the last decade, India has not imported any rare earth minerals but has exported 18 tonnes.

• International Relations:

  • To mitigate the impact of foreign export restrictions on rare earth magnets, the Ministry of External Affairs is engaging with global stakeholders. India is also forming bilateral agreements with countries rich in mineral resources such as Australia, Argentina, and others for cooperation in mining and management of REEs.

• Khanij Bidesh India Limited (KABIL):

  • A joint venture established to secure overseas mineral assets, KABIL has signed exploration agreements with Argentina for lithium blocks and is engaging with Australia’s Critical Mineral Office.

• MMDR Amendment Act 2023:

  • An amendment to the Mines and Minerals (Development and Regulation) Act of 1957 came into effect on August 17, 2023, which:
    • Excludes six minerals (e.g., lithium and titanium) from the previous list.
    • Creates a new list of 24 critical minerals specified for government auction.
    • Empowers the Central Government for exclusive auctions and introduces exploration licenses for 29 minerals.

• Exploration Initiatives:

  • The GSI has initiated 195 mineral exploration projects for FY 2024-25, with plans for 227 projects in FY 2025-26.
  • The National Mineral Exploration Trust (NMET) has funded many of these projects, showcasing a dedicated commitment to enhancing India's critical minerals framework.

• Parliamentary Measures:

  • The central government has launched three major tranches of minerals for auctioning purposes, including offshore blocks in November 2024.
  • Custom duties on 25 minerals have been eliminated, while reduced duties were set for two others in the Union Budget 2024-25, exemplifying a supportive financial environment for the sector.

• National Critical Mineral Mission (NCMM):

  • Launched on January 29, 2025, with a budget of INR 16,300 crore over seven years, the NCMM’s aim is to secure sustainable supplies of critical minerals, with substantial allocations for processing parks and recycling initiatives.

• Research and Development:

  • Emphasis on innovation and collaboration with R&D institutions, start-ups, and MSMEs to foster advancements in the exploration and exploitation of critical minerals.

• Future Focus:

  • The Indian government will continue to engage with countries like Japan regarding rare earth mineral exports and to ensure a resilient supply chain amidst global disruptions.

This comprehensive support reflects India's strategic intent to bolster its position in the global minerals sector, ensuring supply security for emerging technologies and industries reliant on critical minerals.

Important Points:

• AMD's resource estimates: 7.23 Mt of REO and 1.29 Mt in hard rocks.
• Exports of rare earth minerals: 18 tonnes; no imports recorded.
• MMDR Amendment Act 2023 introduced significant regulatory reforms.
• NCMM allocated INR 16,300 crore for mineral sustainability initiatives.
• KABIL is actively acquiring overseas lithium assets.
• Strategic bilateral agreements with mineral-rich countries foster international cooperation.

The impending Free Trade Agreement (FTA) between the United Kingdom and India is expected to enhance bilateral economic engagement significantly, particularly in the realm of Global Capability Centres (GCCs). This summary outlines the potential benefits and developments surrounding the FTA, along with relevant data and government initiatives.

Key Highlights:

• Global Capability Centres in India:

  • India has established over 1,500 GCCs, which employ approximately 1.9 million people.
  • These centres are integral to the global operations of multinational corporations focusing on innovation and digital transformation.

• Strategic Role of the FTA:

  • The FTA is seen as a catalyst to strengthen collaboration in sectors like research and development, analytics, and cybersecurity.
  • Key provisions could include easing regulatory barriers, enhancing professional mobility, and harmonizing digital governance standards.

• High-Level Engagement:

  • UK Foreign Secretary David Lammy and Business and Trade Secretary Jonathan Reynolds made recent visits to India to reinforce commitment towards the partnership.
  • Prime Ministers Keir Starmer and Narendra Modi had a productive discussion at the G-20 Summit in Brazil in 2024, further indicating the positive trajectory of UK-India relations.

• Economic Opportunities:

  • The FTA offers the UK access to one of the fastest-growing digital economies, which is significant post-Brexit.
  • India stands to benefit from increased UK investments, aligning with its ambitions for a robust digital economy and becoming a global hub for high-value services.

• Integration of Services and Technology:

  • The UK India Business Council (UKIBC) emphasizes the growing importance of services, skills, and technology in trade, advocating for the role of GCCs at this intersection.
  • The FTA could foster easier cross-border collaboration, create robust intellectual property frameworks, and implement smart mobility solutions for talent.

Addressing Challenges:

• Business Challenges:

  • The FTA aims to tackle issues such as double taxation, data localization mandates, and discrepancies in standards, which currently hinder the growth of GCCs.

• Policy Initiatives:

  • India’s Ministry of Electronics and Information Technology (MeitY) is spearheading efforts to establish a dedicated national GCC policy by 2025, involving stakeholder consultation with entities like NASSCOM and KPMG.
  • State initiatives, notably in Uttar Pradesh, are promoting GCCs beyond the National Capital Region, providing incentives and showcasing infrastructure potential.

• Consultative Efforts:

  • UKIBC conducted closed-door meetings with industry leaders to explore the role of GCCs in driving economic growth and discussed governance best practices.
  • The consultations examined whether multiple state-level policies cause fragmentation and competitiveness issues.

Implications for Economic Diplomacy:

• International Collaboration:

  • The discourse emphasized how the UK-India FTA can enhance the global value chain for Indian GCCs, particularly focusing on talent diversity and professional mobility.

• Overall Vision:

  • The evolving partnership is positioned as a foundation for a resilient knowledge-based economic corridor between the UK and India, which is anticipated to drive innovation and sustain economic growth.

The dialogue encapsulates a proactive approach to leveraging the economic capabilities of both nations, facilitating a strategic alliance that aligns with their respective developmental goals.

Conclusion:

The UK-India FTA stands as a promising initiative that capitalizes on changing global economic dynamics, reinforced through collaboration in technology and services through GCCs. Both nations are poised to strengthen their economic ties through this comprehensive framework, heralding potential growth opportunities.

Important Sentences:

• India has established over 1,500 GCCs, employing 1.9 million people.
• The FTA is anticipated to enhance collaboration in research, analytics, and cyber solutions.
• UK Prime Ministers discussed boosting bilateral relations at the G-20 Summit.
• The FTA could alleviate business challenges like double taxation and data localization.
• India’s MeitY is developing a national GCC policy for sustainable growth.
• UKIBC is advocating for enhanced governance best practices for GCC development.
• The partnership aims to create a knowledge-based economic corridor between the two nations.

The article discusses a transformative movement among India's senior citizens, referred to as the "second-innings generation," who are actively defying traditional notions of aging. It highlights the demographic changes in India, the rising life expectancy, and the increasing economic and social engagement of seniors.

Key Insights:

• Demographic Shift:

  • By 2050, the population aged 60 and above is projected to reach 319 million, comprising 20% of India’s total population (UNFPA India Ageing Report, 2023).
  • Life expectancy has increased significantly from 63 years in 2000 to over 70.9 years in 2024.

• Changing Lifestyle Patterns:

  • A 2022 NASSCOM study indicates a 50% rise in digital adoption among seniors in five years.
  • More than 30% of Indians aged 60 to 69 remain economically active, taking on new jobs or ventures post-retirement.

• Economic Implications:

  • The top decile of Indians, largely seniors, controls over 70% of national wealth, indicating their substantial purchasing power.
  • The “longevity economy,” focused on the economic activities driven by those over 50, is emerging as a significant growth opportunity in India.

• Rethinking Aging:

  • The article emphasizes that aging should not be viewed as a decline but as an opportunity for continued engagement and contribution to society.
  • It highlights individual stories, such as that of Roshini Devi Sangwan, showcasing seniors reclaiming agency and purpose.

• Shift in Family Structures:

  • With about 70% of urban families becoming nuclear and high rates of emigration, seniors increasingly live independently.
  • This change presents both challenges and opportunities for autonomous aging, requiring support systems.

• Challenges Faced by Seniors:

  • Current urban planning and healthcare delivery often overlook the needs of older adults, with a significant disconnect in healthcare service provision.
  • There is a dire shortage of geriatric specialists (fewer than 1,000 currently) to cater to the elderly population.

• Policy Recommendations:

  • The National Policy on Senior Citizens needs updating to align with contemporary realities, shifting towards longer, active lifespans.
  • Labour policy must reconsider fixed retirement ages and offer flexible work arrangements to fully utilize senior talent.
  • Urban planning should incorporate age-friendly designs, improving accessibility and promoting intergenerational interaction.

• Global Insights:

  • Examples from South Korea and Singapore illustrate successful senior participation policies and healthcare delivery models that can be adapted to Indian contexts.

• Cultural and Economic Opportunity:

  • Recognizing the potential of active seniors is not merely a responsibility but a cultural opportunity that requires a paradigm shift in societal attitudes.
  • The response to this demographic transition can position India to leverage its "wisdom dividend," transitioning from a youth-driven economy to one that values contributions from its elderly population.

The article concludes by urging coordinated action among government, private sector, and civil society to create an ecosystem that allows older adults not just to survive, but to thrive, suggesting that aging is more about evolution than decline.

Important Sentences:

• The population aged 60-plus is projected to reach 319 million by 2050.
• Life expectancy rose from 63 in 2000 to over 70.9 in 2024.
• A 2022 NASSCOM study reported a 50% increase in digital adoption among seniors.
• Over 30% of Indians aged 60 to 69 remain economically engaged post-retirement.
• The top decile of seniors controls over 70% of India’s wealth.
• Urban Indian families have shifted towards a nuclear structure, with 70% now nuclear.
• Fewer than 1,000 certified geriatricians are available for India’s ageing population.
• The National Policy on Senior Citizens requires significant updates to address current demographic realities.
• Successful international models can provide insights for India’s ageing population challenges.