Budget 2025 Expectations Live Updates: From tax reforms to incentivising innovation in AI, what to expect from Nirmala Sitharaman’s speech

The real estate sector looks forward to bold and progressive measures from the Union Budget 2025-26 to bolster its growth and contribute significantly to the nation’s economic progress.

Tax Incentives for Homebuyers and Investors:

Rationalization of GST rates on under-construction properties and a higher tax exemption limit for housing loans will incentivize homebuyers and ease their financial burden. Additionally, tax incentives for rental housing could attract institutional investments, benefiting urban renters.

Policy Push for Sustainable and Green Developments:

In line with the global focus on ESG (Environmental, Social, and Governance) criteria, the introduction of subsidies or incentives for green building certifications and renewable energy integration in residential and commercial projects would be a welcome move.

Single-Window Clearance Mechanism:

A simplified and time-bound clearance system will significantly enhance ease of doing business, enabling developers to complete projects on time and reduce costs.

Infrastructure-Led Development:

Budget allocations for mega infrastructure projects like new metro lines, highways, and urban transport systems will catalyze real estate demand in emerging growth corridors.

Boost for REITs and InvITs:

To deepen the investment market, reforms to make REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts) more tax-efficient and accessible to retail investors would stimulate institutional and global interest in Indian real estate.

Focused Benefits for NRI Investors:

Considering the growing interest of NRIs in Indian real estate, specific measures such as streamlined repatriation processes, reduced tax burdens on property transactions, and enhanced ease of investing in residential and commercial properties could significantly boost NRI investments.

The real estate sector has always played a pivotal role in driving India’s GDP growth and generating employment. We are optimistic that the upcoming budget will address these expectations and create a conducive ecosystem for developers, homebuyers, and investors alike.

As we approach the Union Budget 2025-26, the real estate sector remains optimistic about receiving the much-needed impetus to drive growth, affordability, and sustainability. It deserves focused attention to address its long-standing challenges and unlock its full potential. Key Expectations include:

Incentivizing Homebuyers through Tax Reforms

We urge the government to revisit the tax deduction limits under Section 80C and 24(b) of the Income Tax Act. An upward revision of the deduction limit for home loan principal repayment and interest on housing loans will significantly improve housing affordability and encourage homeownership, particularly in Tier II and Tier III cities.

Infrastructure-Led Growth

Increased investments in infrastructure development, such as highways, metro networks, and urban connectivity projects, will complement the real estate sector by enhancing the livability of emerging growth corridors.

Special Focus on Second Homes and Luxury Housing

Locations like Alibaug and Lonavala are witnessing increased demand for second homes and luxury villas. Tailored policies to incentivize investments in these high-potential segments will support the rising aspirations of affluent buyers.

The Union Budget 2025-26 has the opportunity to lay a solid foundation for a balanced and inclusive real estate sector.

With the Union Budget 2025-26 around the corner, the real estate sector is keenly anticipating measures that will bolster growth and address critical challenges. Here are a few key expectations from the government to ensure sustainable progress and greater housing accessibility:

Enhanced Tax Benefits for Homebuyers

We urge the government to consider increasing the tax exemption limit on home loan interest under Section 24(b). Enhancing these benefits will significantly improve affordability for first-time homebuyers, especially in urban and semi-urban regions, where property prices remain high.

GST Rationalization

A unified and lower GST rate for under-construction properties will provide much-needed relief to homebuyers while encouraging demand in this segment. Currently, multiple tax layers create confusion and deter potential buyers.

Support for Affordable Housing

The extension and expansion of benefits under the Pradhan Mantri Awas Yojana (PMAY) will be crucial to bridging the housing gap. The introduction of new subsidies and incentives for developers focusing on affordable housing will accelerate the mission of ‘Housing for All.’

Focus on Rental Housing

With urbanization on the rise, promoting rental housing schemes will create a more structured rental market. This move will cater to a diverse population, including millennials and migrating professionals.

Single-Window Clearance Mechanism

Simplifying project approvals through a single-window clearance system will expedite project execution, reduce costs, and enhance investor confidence. It is a much-needed reform to drive efficiency across the sector.

Increased Budget Allocation for Infrastructure Development

Investment in infrastructure projects like metro connectivity, highways, and urban transport networks directly impacts real estate demand. Enhanced connectivity to peripheries will unlock their potential as emerging growth corridors.

Industry Status for the Real Estate Sector

Granting industry status to the real estate sector will open avenues for lower borrowing costs and improved access to institutional credit. This will strengthen developers' ability to deliver quality projects on time.

The real estate sector plays a pivotal role in driving economic growth and creating employment. Progressive and pragmatic measures in this year’s budget can act as a catalyst, fostering confidence among stakeholders and contributing significantly to India’s vision of becoming a $5 trillion economy.

As the Union Budget 2025-26 approaches, the real estate and infrastructure sectors are hopeful for a budget that drives growth and addresses long-standing industry concerns. Here are critical expectations:

Tax Reforms: Increasing the tax deduction limit under Section 24(b) for home loan interest, currently capped at ₹2 lakh, would provide much-needed relief to homebuyers, especially in metro cities where property prices are high.

Affordable Housing Project: Extending the benefits of Section 80-IBA for affordable housing projects upto March 2029 would encourage more developers to venture into affordable real estate projects development and government mantra of Housing for all gets fulfilled.

GST Tax Rate reduction and Streamlining: The current GST regime remains ambiguous and poses a significant challenge for developers. Simplifying, streamlining and reducing GST Tax rates is imperative to reduce complexities and alleviate the financial burden on developers.

Demand for Industrial Status: The long-standing demand for granting industrial status to the real estate sector must be addressed. This will enable easier access to financing, reduce borrowing costs, and boost investor confidence.

Rationalization of Stamp Duty: Stamp duty rates in certain states, currently as high as 8-9%, are a major financial burden for homebuyers. Rationalizing these rates across states for homes upto Rs 1.50 crores is crucial to make property ownership more affordable and drive housing demand.

Single-Window Clearance: A streamlined project approval system particularly High rise and Environment clearance etc will reduce delays and enhance ease of doing business.

Sustainable Development Incentives: The government must prioritize green building initiatives and sustainable construction practices by offering tax benefits or subsidies to developers adopting eco-friendly technologies. This aligns with India's commitment to its net-zero goals.

Global Investment Boost: Policies that attract Foreign Direct Investment (FDI) into real estate, especially in commercial and tech-driven investment segments, can further strengthen the sector. Simplifying regulatory frameworks and providing tax incentives for global investors will help position India as an attractive destination for international capital.

Real Estate Tech Adoption Fund: Offering incentives / allocating Funds for PropTech adoption and innovation will enable the sector to become more efficient and transparent.

Increased Allocation of funds for Infra Development: Increased budgetary allocation to infrastructure development, including metro networks and multimodal corridors, will catalyze the growth of commercial real estate in urban and peripheral areas.

Support for REITs, InvITs and Fractional Ownership platform: Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) have been instrumental in bringing transparency and liquidity into the sector. Reducing the dividend distribution tax and offering further incentives for retail investors can enhance their adoption. Moreover, fractional ownership platforms are democratizing access to high-value real estate assets, and the government should encourage their growth through comprehensive and supportive policies.

The Union Budget 2025-26 presents an opportunity to address these areas and propel the sector toward sustainable growth, benefiting developers, investors, and end-users alike.

The real estate sector has always thrived by turning challenges into opportunities, meeting the aspirations of homebuyers year after year. As we gear up for the Union Budget 2025, I see a landscape filled with promise, if we make a few strategic shifts. Affordable housing continues to gain momentum, reflecting the evolving needs of our nation. While 2024 presented its challenges, I believe the upcoming budget can reignite home-buying interest by introducing crucial reforms in tax policies and enhancing subsidies for affordable housing. These steps will not only ease financial burdens but also open doors to growth and innovation. With a clear focus and collective effort, I am confident that we can propel the industry forward, paving the way to achieve the ambitious $1 trillion target by 2030 and fulfilling the housing dreams of millions of Indians.

As we approach the Union Budget 2025-26, the real estate sector looks forward to policy initiatives and reforms that can drive growth, enhance affordability, and address long-standing industry challenges. The sector, a critical contributor to the nation’s GDP and a significant employment generator, requires sustained focus and support to maintain its upward trajectory.

1) Boosting Housing Affordability:

To ensure the success of initiatives like PMAY-U, it is imperative to increase budgetary allocations for affordable housing and expand credit-linked subsidies. Additionally, revising income tax deduction limits under Section 24(b) for home loan interest from ₹2 lakh to ₹5 lakh can further enhance housing affordability, encourage homeownership, and boost the flow of funds into the affordable housing sector, which has seen a slowdown in recent months.

2) Industry Status for Real Estate:

Granting industry status to the real estate sector remains a key demand. This will enable easier access to institutional funding at lower interest rates, particularly for mid-segment and affordable housing projects.

3) Rationalization of GST:

A uniform GST rate with input tax credit for residential and commercial projects can significantly reduce costs and streamline taxation. Additionally, reducing GST rates for under-construction properties can encourage buyers and increase project sales.

4) Incentivizing Sustainable Development:

The government should promote green and sustainable real estate practices through tax rebates and incentives for developers adopting eco-friendly building technologies and materials. This aligns with India’s commitment to achieving carbon neutrality.

5) Focus on Infrastructure Development:

Continued investments in urban infrastructure, including metro rail, highways, and smart cities, will boost real estate development in peripheral areas and unlock new growth corridors.

6) Ease of Doing Business:

A single-window clearance mechanism for approvals, reduced compliance burdens, and clear land title policies will streamline project execution and attract domestic and foreign investments.

7) Support for REITs and Focus on Rental Housing:

Encouraging investments in Real Estate Investment Trusts (REITs) through tax benefits and regulatory support can provide liquidity to the sector. Similarly, Rental housing can play a pivotal role in addressing urban housing shortages and supporting the mobility of the workforce. The government should introduce incentives and policy support for developing affordable rental housing complexes, ensuring access to quality housing for tenants.

We are hopeful that the Union Budget 2025-26 will introduce measures that empower the real estate sector to thrive, creating opportunities for developers, homebuyers, and allied industries. By addressing these critical areas, the government can unlock the true potential of India’s real estate sector as a pillar of economic growth and development.

The Union Budget 2025 is expected to prioritize strengthening India’s healthcare sector by making significant investments in public health infrastructure. Ensuring equitable access to quality care should remain a core focus, with affordability as a key priority to benefit all sections of society. Reducing healthcare costs while extending essential services across economic strata can lead to a more inclusive and robust healthcare system.

It is anticipated that the budget will emphasize the expansion of digital health portfolios, including telemedicine and AI-driven diagnostic solutions. These advancements can bridge care gaps in urban areas while offering low-cost, efficient healthcare solutions to underserved regions. Targeted initiatives, such as workforce training programs, are also expected to address personnel shortages and enhance the inclusivity, efficiency, and sustainability of healthcare services.

A significant expectation is the removal of GST on health insurance premiums. This step would make health insurance more affordable, enabling a larger population to access coverage and reduce out-of-pocket expenses. Additionally, increasing the coverage limit under the Ayushman Bharat scheme is anticipated to provide broader financial protection for vulnerable populations, ensuring access to advanced treatments and comprehensive care. By addressing these critical areas, the Union Budget 2025 has the potential to create a transformative impact on India’s healthcare system, paving the way for better patient outcomes and solidifying the nation’s position as a leader in global healthcare.

As the mutual fund industry is growing rapidly, fuelled by record SIP books, it is adding to the economy of the country and helping balance out the withdrawals by FIIs / FPIs from the broader markets. It is expected from the respected FM to keep the taxation constant, if not reduced, to maintain the positive support by the domestic investors. Any increase in capital gains will dampen the confidence of the investors and might impact the already negative sentiments in the markets. More incentives can be provided for more and more investors to plan their investment journey through mutual fund investments. Also, in case KYC norms can be eased, it will be a great entry point for new investors.

"In alignment with India's ambitious goal of achieving a $7 trillion economy by 2030, the upcoming Budget 2025 presents a valuable opportunity to address key challenges related to efficiency, sustainability, and global competitiveness. The logistics sector stands at a transformative crossroads, and the Union Budget 2025-26 holds the potential to shape its growth trajectory significantly.

“We encourage the government to prioritise investments in infrastructure modernisation, particularly in the creation of smart logistics parks and multimodal transport networks that embrace sustainable practices. A strong emphasis on green logistics is essential, with incentives to promote the use of electric vehicles, biofuels, and IoT-enabled transport systems. These measures will help lower logistics costs while reducing carbon emissions, paving the way for a sustainable future in the sector.”

“We also look forward to the implementation of policies that create an equitable environment for all stakeholders, from large corporations to MSMEs. Such a strategy can promote inclusive growth across the industry. As DTDC celebrates its 35th year, we remain committed to advancing this vision, driving innovation, and working alongside the government to establish India’s logistics sector as a global standard of excellence.”

“Indian markets are currently experiencing heightened volatility due to sluggish economic growth and uncertainty surrounding Trump’s policies and tariffs. With the monthly expiry of major indices today and the Union Budget scheduled for February 1st, investor sentiment is closely tied to upcoming economic measures. The interplay between global factors and domestic policies is adding to the complexity, making this a crucial period for market participants.

The India Budget 2025 is expected to be a defining economic blueprint, balancing fiscal prudence with strategic investments in infrastructure, manufacturing, and renewable energy. The ₹53 lakh crore allocation signals a shift from short-term populist measures to long-term value creation. A significant focus is expected on strengthening national security, expanding railway networks, and enhancing multimodal logistics to improve supply chain efficiency.”

“Manufacturing incentives will play a crucial role, with targeted support for high-growth sectors such as textiles, electronics, and electric vehicles, reinforcing India’s competitiveness in global markets. Renewable energy remains a key priority, with continued investments in solar and wind power to advance sustainability goals. On the taxation front, there could be incremental relief measures, particularly through potential adjustments in housing loan deductions and Section 80C limits, which may encourage greater savings and investment.

Overall, this budget underscores India’s vision for self-reliance and economic resilience. By focusing on infrastructure, manufacturing, and clean energy, the government is laying the foundation for sustained growth, ensuring that economic benefits reach both businesses and individuals while fostering long-term investment opportunities.”

“As the Union Budget 2025-26 approaches, we at General Mills are optimistic about policy measures that could further enable the integration of technology and innovation into the Agri-food industry. The Agri- food sector is undergoing rapid transformation, and strategic investments in digital infrastructure, automation, and advanced analytics are crucial to addressing evolving consumer needs and enhancing operational efficiency.

“Simplified compliance frameworks for tech-enabled solutions can empower businesses to introduce sustainable practices across the supply chain, from farm to table, while simultaneously fostering transparency and trust with consumers. Moreover, increased budgetary allocations towards research and development in agritech and foodtech can unlock new opportunities for collaboration and innovation. This would allow us to explore advancements in AI, IoT, and blockchain to build more resilient and intelligent supply chains and optimize logistics.”

“Additionally, as GCCs evolve into globally integrated innovation hubs, they play a pivotal role in driving technological advancements and intellectual property creation. To sustain and amplify this impact, the government should establish incubation hubs and incentivize start-ups. Restoring weighted deductions for R&D will boost India’s appeal as an innovation hub, encouraging GCCs to create advanced solutions and positioning India as a global R&D leader.

“Presently, several Indian states are proactively launching state level policies to attract GCC’s in tier-2 towns. We strongly feel there is need of a comprehensive federal policy in complement with state policies which will create conducive environment for GCC’s to thrive. The government must invest in advanced infrastructure, education, and training programs to prepare talent in these locations for high-demand, niche GCC roles and collaborate with stakeholders to establish institutions, labs, and training centers specializing in these areas. Industry-relevant curriculum innovation, large-scale internship programs, and incentives for GCCs to invest in skill development are critical. These efforts will ensure that India remains the preferred destination for high-value GCC operations.”

"The FY25-26 budget offers a crucial opportunity to drive India's economic growth by emphasizing capital investment and boosting efficiency in the logistics sector. As India strives to become a $7 trillion economy by 2030, we urge the government to focus on infrastructure development, policy consistency, and technology adoption aligned with the National Logistics Policy and PM Gati Shakti. It is, therefore, imperative that the Logistics and Freight Forwarding Industry is granted industry status, giving this vital sector its rightful place in the financial and economic structure of the Indian ecosystem.

“Key expectations from the upcoming Budget include increased investments in port modernization, multi-modal logistics parks, and seamless connectivity across transport networks. Expedited initiatives like the Sagarmala Project and Dedicated Freight Corridors (DFCs) are critical to reducing logistics costs and transit times. Simplifying the GST structure for logistics services, particularly reducing the GST burden on origin and allied charges for exports from India, and supporting skill development programs will further enhance operational efficiency and workforce readiness.”

“Additionally, providing incentives for the export of services through amendments to the Foreign Trade Policy, similar to those available for the export of goods, would strengthen India's position in global trade.

“Policies promoting green shipping, energy-efficient technologies, and renewable energy adoption are essential for fostering sustainability. Financial incentives for digitalization and the integration of advanced technologies such as AI, IoT, and Blockchain will accelerate the modernization of the sector, ensuring resilience and global competitiveness.”

“As we approach the Union Budget 2025, we are optimistic about the government’s ongoing efforts to strengthen the manufacturing sector through initiatives like 'Make in India.' Manufacturing, while showing signs of recovery driven by rising rural demand, continues to face challenges such as global economic uncertainties, high real interest rates, and the persistent semiconductor shortage. Overcoming these challenges will be crucial to driving sustainable growth and unleashing the true potential of the manufacturing sector.

We hope the government will further expand and enhance the Production-Linked Incentive (PLI) scheme, which has been instrumental in boosting local manufacturing. Expanding incentives for MSMEs and Startups in the electronics sector could significantly encourage innovation and growth. Additionally, measures to support domestic semiconductor manufacturing, including increased funding for the India Semiconductor Mission, are critical to addressing global supply chain disruptions.”

“Investment in infrastructure, particularly in electronics manufacturing clusters, is equally essential for ensuring efficient production and supply chain management. Enhanced infrastructure, along with tax incentives for research, development, and skill development, will foster innovation and position India as a leader on the global stage.

We urge policymakers to focus on reforms that make it easier to do business and create a more supportive environment for domestic production. Strategies around import tariffs, fair taxation, and smooth technology transfer can lay the foundation for a robust ecosystem that nurtures local manufacturing. We are particularly hopeful for initiatives that encourage the production of high-quality electronics within the country, helping India move closer to self-reliance and take its rightful place as a global leader in manufacturing.”

“One of the key objectives of urban development plans must be to address air pollution. To address this issue, large investments are necessary; after all, what does a Viksit Bharat look like if its citizens are compelled to breathe poisonous air all the time?

The problem of waste management is equally urgent, since cities are becoming more and more like enormous landfills. In order to revitalize metropolitan areas and protect public health, adequate and targeted investment is essential.”

“Additionally, the PMAY programme can reimagine urban housing by prioritizing green infrastructure, mixed-use complexes, and intentional densification. By giving priority to these factors in the upcoming budget, urban communities may become more vibrant, inclusive, and sustainable, meeting housing demands and improving people's quality of life.

Policies promoting green shipping, energy-efficient technologies, and renewable energy adoption are essential for fostering sustainability. Financial incentives for digitalization and the integration of advanced technologies such as AI, IoT, and Blockchain will accelerate the modernization of the sector, ensuring resilience and global competitiveness.”

The economy will not go into a recession even if there's no govt in India, Chidambaram said in a press conference. We will continue to grow at 4-5% because there are farmers, workers, and small industries that produce food grains and other things and services.

The real question is how much more than 4-5 per cent the government can grow the economy.

This government’s policies added about 1.5-2 per cent to the inherent growth rate, but that's not sufficient.

We are indeed the fastest-growing economy in the world, but please remember growing at 2.7 per cent last year, the US added $787 billion to its GDP in that one year. Meanwhile, China grew last year at 4.91 per cent, and it added $895 billion to its GDP.

We are growing at a faster rate but we add only $256 billion to our GDP. So, we actually need to see the addition to the GDP and not compare the growth rates.

In 2024, India’s online gaming industry has demonstrated remarkable resilience and growth, overcoming regulatory challenges and the impact of the 28% GST. Despite these hurdles, the sector has exceeded expectations, reaching $3.8 billion in revenue in FY24.

As we approach the Union Budget, we remain hopeful that the government will consider reducing the GST rate and addressing retrospective taxation issues, which would provide much-needed clarity and enable further growth and innovation. The government's focus on advancing the AVGC (Animation, Visual Effects, Gaming, and Comics) sector is promising, and we look forward to increased funding and policy support for this initiative.

With continued efforts, we envision a future where more Indian developers and gaming studios create world-class games and content, solidifying India's position as a global leader in gaming. Further emphasis on supporting startups and fostering innovation will be crucial to ensure the industry’s sustained growth and contribution to India's digital economy.”

The Union Budget 2025 presents a massive opportunity for India to urge its industries towards sustainable growth. 

"One of my key expectations is the introduction of incentives for renewable energy expansion, particularly in solar and wind energy, along with enhanced support for green hydrogen initiatives. Additionally, there is hope for increased allocation toward climate-resilient agriculture and water management, which is crucial for addressing the vulnerabilities faced by rural India due to changing climatic conditions. I also expect the government to take the next step in implementing the climate finance taxonomy announced last year.

On the other hand, my hope is that the budget will intensify its focus on climate education as that is the oft-neglected key component for the other initiatives to fructify. My hope is also that the Union Budget will support the growth of SMEs and startups, including catering to the mandatory sustainability related attributes and documentation required for their inclusion in global trade". 

"As the 2025 union budget announcement is near, we are optimistic that this year’s budget will address some of the major challenges and obstacles faced by MSMEs and pave the way for sustained growth and development. In today’s fast-evolving market, incentives for adopting digital technologies and automation are vital for MSMEs, such initiatives would empower us to innovate, remain competitive, and contribute significantly to the country's economic growth. Moreover, simplification of taxation and compliance processes, coupled with improved access to affordable credit coming at marginally low interest rates can significantly enhance the ease of doing business. Additionally, subsidies for sustainable and green efficient practices would empower companies like ours to grow sustainably while driving innovation. With this robust skill development programs to reduce talent gap in the manufacturing and technology sectors will affirm share to the GDP & exports while ensuring resilience against global uncertainties."

"The 2024-25 budget marked a landmark moment for the sports sector, with a record allocation of INR 3,442 crore from the government, underscoring their continued commitment to promoting sports in the country. The government has made significant strides in supporting grassroots development programs over the past decade. Looking ahead, the upcoming budget could further strengthen this momentum by fostering pathways for public-private partnerships in sports, helping bridge gaps within the current sporting ecosystem. This will also be a crucial step toward realizing the PM’s vision of transforming India into a sporting superpower by 2050," Dream Sports Foundation spokesperson said.

The Finance Bill 2025 should focus on strengthening India’s capital markets by introducing tax-deductible bonds specifically for infrastructure projects, incentivizing retail participation while addressing long-term financing needs. Simplifying the capital gains tax regime across asset classes, including unlisted securities, would encourage broader investment and reduce legal ambiguities. Additionally, allowing for extended tax holidays on Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) could attract domestic and global institutional investors, ensuring steady capital inflows. Clear regulatory frameworks for innovations like green bonds and ESG-focused funds should also be prioritized, enhancing India’s appeal as a sustainable investment destination.

Aftab Chaz, Associate Director and Business Head at Elephant.in says, "The Union Budget 2025 presents a significant opportunity for growth in India’s insurance sector through targeted reforms. Easing procedural hurdles for Foreign Direct Investment (FDI) beyond the current 74% cap could attract more capital, allowing insurers to underwrite larger risks, expand into underserved areas, and invest in technology.

Taxation reforms are equally critical. Raising the Section 80D deduction limit for health insurance premiums from ₹25,000 to ₹50,000 and reducing GST on premiums from 18% to 5% would make insurance more accessible and affordable. Additionally, incentivising technology adoption, such as AI and blockchain, can enhance efficiency and customer experience.

The inclusion of the insurance sector in the national priority list would enable concessional funding and encourage innovation, particularly in micro-insurance and rural outreach. As climate change exacerbates natural disasters, tax incentives for catastrophe insurance are also vital to safeguard vulnerable communities and businesses. The 2025 Budget can catalyse the government’s vision of “Insurance for All” by 2047. With appropriate reforms in FDI, taxation, technology, and disaster preparedness, the sector can grow sustainably while enhancing India’s economic resilience." 

Two days before the presentation of the Union Budget for the next financial year 2025-26, the government on Wednesday approved the introduction of a new credit guarantee scheme for the micro, small and medium enterprises (MSMEs) that was announced in the FY25 Budget. The scheme, which is called Mutual Credit Guarantee Scheme for MSMEs (MCGS-MSME), will extend credit guarantee coverage to lending institutions for credit facilities of up to Rs 100 crore to eligible MSMEs, for the procurement of equipment and machinery, a statement by the Ministry of Finance said. (Read More)

Despite multiple challenges and uncertainties, India’s Gross Development Product (GDP) growth rate has rebounded, largely driven by the services sector, which accounts for approximately 55 percent of the current GDP, according to the Ministry of Statistics and Programme Implementation. This growth is particularly notable in the IT sector, which contributes about 56 percent of India’s total services exports on the national landscape, as per a report by the Global Trade Research Initiative (GTRI). (Read More)

The Union Budget is a key financial document for the government’s finances, comprising an estimated amount of income and spending for the following fiscal year.

As the country anticipates the upcoming Union Budget for FY 2025, the search ‘budget 2025 date’ is now trending on Google Search Trends, January 27, 2025.

Finance Minister Nirmala Sitharaman will present the Modi 3.0’s first Union Budget on the first day of next month, February 1, 2025, at 11 am.

The military’s financial planners are awaiting the Union Budget with bated breath. Since September, their various arms, services, directorates and departments have been finalising their financial wish lists for the year ahead. Soon they will know how much of that will be made available. All that is presently clear is that the military is not among the government’s top priorities. In the current year’s budget, Finance Minister Nirmala Sitharaman allocated less than 13 per cent of government expenditure to defence, continuing a multi-year trend of falling allocations. (Read More)

Although the Union budget is not the best place to look for trade-related announcements, it has become one of the several platforms that communicates India’s policy engagement with the global economy. In the upcoming budget, we expect to hear announcements relating to reducing the trade deficit, stemming the rupee’s depreciation and promoting exports — all in the same breath. Why are periodic policy announcements in the budget even required when continuity and certainty would do the trick for our external objectives? Are frequent changes in the customs duty structure the right instrument to support the laudable Make in India initiative? (Read More)

“Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.” These words of Albert Einstein apply not just to investments but to economic growth as well. A six per cent real growth for 20 years should conservatively increase India’s GDP per capita to $10,000 from $2,650 by 2045. A majority of Indians should live to see that day given that 63 per cent of the population is below 50 years of age. Even a 5.5 per cent real growth rate will take us there, but in 22 years. Whether it happens by 2045 or 2047 makes little difference in a nation’s journey. The key is to get there. The key is to grow for extended periods with low risk. (Assumptions in both cases of this exercise: 5 per cent India inflation, 2 per cent US inflation, 3 per cent INR depreciation and 1 per cent population growth, all per annum). (Read More)

Sudhir Srivastava, founder, chairman, and CEO, of medical technology firm SS Innovations is hopeful of a self-reliant India, especially with the innovation in medical technology. But homegrown solutions hold the key to that, he says.

"As we pursue the vision of Atmanirbhar Bharat, it is vital to not only promote indigenous technology but also ensure it reaches the people it is intended to serve, particularly through initiatives like Ayushman Bharat. Government support for Indian innovation will help make medical technologies both affordable and accessible to the masses," Srivastava adds.

One area requiring attention is the import duties on critical components for medical devices, as India currently relies heavily on foreign imports.

He says the government should undertake serious investments into developing and manufacturing these critical components in India, but, in the meantime, revisiting these duties and creating a favourable environment, can strengthen domestic production, positioning India as a global leader in med-tech.

Institutions such as IITs and medical government colleges can play a pivotal role in leading the MedTech revolution in the country provided they are given the right platform and proper infrastructural support.

Additionally, government backing for emerging fields like telesurgery and teleproctoring is crucial, he adds.

These technologies can impact healthcare delivery in remote regions by enabling access to expert surgical care and medical education through digital platforms.

Building the necessary infrastructure for these technologies will ensure that quality healthcare reaches even the most isolated communities, he says.

"Over the past few budgets, tax rates for various investment instruments and income streams have been gradually streamlined, reducing exceptions and differential treatments. This has brought several options, such as Fixed Deposits, Debt Mutual Funds and Bonds, onto a level playing field by taxing them similarly. This alignment eliminates arbitrage opportunities between instruments and fosters a more balanced investment landscape. Looking ahead to Budget 2025, we anticipate further progress in this direction, and possibly a complete revision in the structure of personal income tax. We may see a much simpler unified approach to taxation, spanning all asset classes in the coming years"

The taxpayers across all economic strata, including the middle class and the corporates, are looking forward to tax reforms in the upcoming Budget announcement by Sitharaman. These include revised income tax slabs, lower GST rates, and various capex allocation announcements. 

Teamlease Regtech CEO and co-founder Rishi Agrawal said that this year "calls for decisive govt action to implement digital initiatives that enhance ease of compliance". "The upcoming budget will be pivotal for driving India Inc.’s growth and global competitiveness. While the introduction of PAN 2.0 as a unified business identifier was transformative, the union and state governments must urgently consolidate the 23 different corporate identities into a single identity," Agrawal said.

Recruiterflow co-founder Amritanshu Anand said with the Union Budget, they look forward to "initiatives that will solidify India's position as a global technology hub and empower bootstrapped startups to scale sustainably". "Incentivizing innovation in AI and automation within the recruitment sector, along with measures to support remote-first operations and world-class SaaS development, will drive global competitiveness. Moreover, skill development in recruitment technology is vital to ensure India's workforce remains at the forefront of global markets," Anand said.

Maxiom Wealth founder and CEO Ram Medury said that renewable energy is likely to take center stage in the upcoming Union Budget, "building on the success of the PM Surya Ghar Muft Bijli Yojana, which has already seen 1.28 crore registrations". "Amidst a tepid global growth projection of 3.3% by the IMF, India’s GDP is expected to stabilize at 6.7% over the next two years, per the World Bank. Yet, challenges loom large. Trump’s new presidency has ushered in a slew of changes. There must be a weight of expectations on India to do something interesting, especially because PM Modi did promise emphatic changes in the run up to the elections," Medury said.

"India’s trade deficit, an alarming $21.94 billion in December 2024, highlights vulnerabilities in competitiveness. The upcoming budget could shift the tide, with anticipated direct tax cuts to fuel consumer spending and incentives to bolster local manufacturing," Medury added.

Provost of Anant National University, Dr Anunaya Chaubey, said that they expect the budget to advance support for education, employment, and skills through supportive schemes. "We hope the Union Budget 2025 builds on earlier provisions, particularly the financial support for loans of up to ₹10 lakh for higher education in domestic institutions, making it more accessible to students," Chaubey said.

"Another key focus should be increasing access to quality education and technology, especially in rural and underserved areas. Investments in expanding connectivity, modernising classrooms and creating accessible online learning platforms are essential to bridging the digital divide and making education more accessible to all," Chaubey added.

Amocare Director and co-founder Prabhat Maheshwari said that key expectations from the budget include rationalization of GST rates for natural wellness products from the current 18% to a proposed 12% "which would enhance accessibility for middle-class consumers". "The Indian wellness industry currently holds a projected value of over $72 billion for 2025. It has witnessed remarkable growth in India, with CAGR of 28 per cent by 2025. Our organizational focus aligns with the government's emphasis on women's health and preventive healthcare, as demonstrated by previous initiatives like the National Health Mission which allocated Rs 36,000 crore for women-centric healthcare programmes," Maheshwari said.

"Additionally, increased allocation for R&D in natural sciences and preventive healthcare could accelerate innovation in plant-based wellness solutions. With one third of Indian women reportedly experiencing lifestyle-related health concerns, we anticipate policy support for natural healthcare products, particularly those focused on women's wellness, will help expand the market reach while maintaining quality and affordability," Maheshwari added.

Managing Director and Chief Executive Officer of HIL Limited, Akshat Seth, said that the company hopes that the government continues the momentum of infrastructure investment with this year's Union Budget. "The Government of India’s allocation of Rs 11,11,111 crore (approximately $133 billion) for capital expenditure in the Union Budget 2024-25, representing 3.4% of the GDP, reflected a clear commitment to an investment-led growth strategy focused on creating quality infrastructure," Seth said.

"Government support for initiatives encouraging sustainable building solutions and powering up popular schemes such as Jal Jeevan Mission & PM Avaas Yojana can help create employment, improve health & sanitation conditions while providing affordable housing and essential infrastructure to the masses," Seth added.

The business community expects simplification of regulations, lesser penal provisions, single window clearances and digitalization of compliances from the Union Budget, says Core Integra Managing Director Mahesh Krishnamoorthy. "This will not only enable ease of complying but bring higher transparency and better governance," he said.

Krishnamoorthy said that one of the key expectations is the implementation of the new labour codes which will bring about a significant transformation in the manner in which labour law compliances are done today. "Not only will it consolidate and simplify the regulations but ensure better adherence. It would also pave way for integrated platforms for digital submissions," he said.

Speaking about the the home decor industry, Ashnam Homes founder Manoj Kumar Sharma said that it is essential to expand and simplify Production Linked Incentive (PLI) schemes, reduce GST rates on home decor items, and introduce special credit schemes for startups.

"These measures will not only encourage domestic production, enhance competitiveness, and support small and medium-sized businesses, but also pave the way for a potential surge in consumer demand. Additionally, implementing subsidies for advanced manufacturing technologies and increasing export incentives will facilitate technology adoption and encourage startups to explore global markets," Sharma said.

The current three-year tax holiday is a "significant issue that needs to be urgently addressed", says Arthan and Climate Asia Founder Satyam Vyas , while adding that it often fails to "accommodate the longer growth cycles of many startups". Vyas also recommends establishing a 30-day deadline for GST refunds with penalties for delays, offering government tax advisory services to support startups, increasing R&D deductions to 200% for high-impact sectors, providing up to 10% tax rebates for sustainable startups, and lowering TDS rates to enhance cash flow for new ventures.

Nutrify Today Founder Amit Srivastava said that it is imperative to introduce PLI and RLI schemes to upgrade industry infrastructure and compete internationally. "With the PLI scheme for the nutraceutical sector under evaluation by MoFPI, the upcoming budget presents a pivotal opportunity to allocate funds and catalyze this transformation," Srivastava said.

The upcoming Union Budget holds immense potential to accelerate growth in the electronics and smartphone manufacturing industries, said Arijeet Talapatra, CEO, itel India. "The growing aspirations of India’s youth, driven by their pursuit of innovation, entrepreneurship, and a digital-first future, underscore the urgent need for robust cybersecurity measures and cutting-edge 5G infrastructure. Prioritizing investments in 5G infrastructure and cybersecurity will further support Digital India’s growth by enabling innovation, safeguarding critical systems, and unlocking opportunities across sectors like healthcare and smart cities," Talapatra said.

"Expanding the PLI program further to increase the allocation for semiconductors, high-capacity batteries, and display technologies will strengthen India’s value chain, reduce imports, and enhance our global competitiveness. Focused R&D grants for emerging technologies such as AI and IoT will be a much-needed boost – a significant step towards making India a Vishwaguru in the electronics ecosystem," he added.

Ambrane India Managing Director Ashok Rajpal said that the upcoming budget could strengthen initiatives like the Production Linked Incentive (PLI) scheme and skill development programs. "These steps will accelerate India’s technological evolution, generate employment, and boost exports, propelling the country closer to its goal of becoming a global electronics manufacturing hub," Rajpal said.

While saying that India was poised for an electronics revolution, Rajpal added that the government’s efforts to equip the workforce with advanced skills and promote domestic production are critical. "As we approach Union Budget 2025, we are optimistic about continued government focus on electronics and semiconductor sectors. Previous budgets have shown strong commitment to semiconductor development through increased funding for the Ministry of Electronics and Information Technology (MeitY), highlighting India’s push for self-reliance and global competitiveness," Rajpal said.

An NGO involved in advocating for the rights and welfare of the elderly population has submitted a set of recommendations to Union Finance Minister Nirmala Sitharaman, news agency PTI reported. The Agewell Foundation, in their letter to Sitharaman, said that by the year 2050, nearly 20 per cent of India's population - 32 crore people - would be above the age of 60.

"This demographic shift demands immediate and robust policy reforms in health care, financial security, and social support systems to ensure dignity and wellbeing in old age," PTI quoted the letter as saying. The NGO has suggested the inclusion of medical consultation and pathological tests under the current healthcare policies for the people above 60. While calling for income tax deduction to these people, the NGO also urged the government to provide financial assistance for senior citizens who undertake pilgrimages.

Founder and CEO of Workruit, Manikanth Challa, said that one of the expectations from the Union Budget could be "a stronger focus on integrating AI-driven tools and platforms into career-building programs", which could build on the momentum of last year’s initiatives, such as the Digital India program and increased allocations to skilling under PMKVY.

"From Workruit’s perspective, we hope to see a dedicated budget for developing AI-based career guidance platforms and resume-building tools that empower job seekers to align their profiles with market demands and employer expectations. Subsidies or grants for startups working on ATS-compliant resume builders and personalized job search tools would be a step in the right direction," Challa said.

On the upcoming Union Budget, Sustain Labs Paris CEO Dr Miniya Chatterji said one of her key expectations "is the introduction of incentives for renewable energy expansion, particularly in solar and wind energy, along with enhanced support for green hydrogen initiatives." "Additionally, there is hope for increased allocation toward climate-resilient agriculture and water management, which is crucial for addressing the vulnerabilities faced by rural India due to changing climatic conditions. I also expect the government to take the next step in implementing the climate finance taxonomy announced last year," she said.

Chatterjee added that her hope is that the budget will intensify its focus on climate educatio, which is "the oft-neglected key component for the other initiatives to fructify".

The government is likely to maintain focus on fiscal consolidation for the upcoming Union Budget, the Head of Investment Products at Sanctum Wealth, Alekh Yadav, said. " We anticipate this budget will largely mirror previous ones, with few significant changes expected," Yadav said. "While capital expenditure will remain a priority, we foresee limited potential for substantial growth in this area. The government has also emphasized tax rationalisation, with notable changes to capital gains tax last year," Yadav added.

Ahead of the Union Budget 2025, Executive Director of Mohan Babu University, Vinay Maheshwari, said that its focus shoul d be on "fostering research and innovation, enhancing graduate employability, and bridging the gap between academia and industry". Maheshwari also stressed on the "critical opportunity" to address the "pressing needs of the higher education sector". "Increasing the allocation for higher education is essential to upgrade infrastructure, promote research and development in emerging areas like artificial intelligence," Maheshwari said. "Additionally, corporate social responsibility (CSR) contributions should be encouraged further in the higher education sector, ensuring increased funding for academic excellence and skill development programs," Maheshwari added.

Dr Anand Achari, the principal of VES College of Architecture, said, "one important focus is enhancing digital infrastructure, particularly in rural areas where over 60% of the population still lacks reliable internet access. This gap is limiting the reach and potential of online education, and without addressing it, we risk leaving a significant portion of the population behind."

"In addition, strengthening skill-based training programs and encouraging closer collaboration between educational institutions and industries is vital to ensure that our curricula are aligned with the needs of today’s job market," he said

"We are also hopeful that the budget will include policies to encourage international collaborations, which will enhance the global competitiveness of Indian education and attract more international students," he added.

Workruit founder and CEO Manikanth Challa suggested incorporating AI into career-building platforms and programmes, building on previous initiatives under Digital India and PMKVY.

"Building on the momentum of last year’s initiatives, such as the Digital India program and increased allocations to skilling under PMKVY, we expect a stronger focus on integrating AI-driven tools and platforms into career-building programs," he said.

"Subsidies or grants for startups working on ATS-compliant resume builders and personalized job search tools would be a step in the right direction," he added.

He said that incorporating AI in recruitment technology could help streamline hiring processes.

He also pushed for making digital skilling programs more inclusive for women, rural youth and gig workers.

"Creating tax incentives for companies investing in AI for career-building and launching a central portal for skill certification and job matching could bridge critical gaps between education and employment," he said.

Hoping that the Union Budget will create a level-playing field for Micro Small and Medium Enterprises (MSMEs) in electronics manufacturing sector against foreign brands, Imran Kagalwala, the co founder of UNIX India, said focus should be put "on labour-skilling initiatives to address the talent gap in the manufacturing and technology sectors."

"(The Budget) should also prioritize boosting R&D and innovation through targeted incentives, especially for businesses not benefiting from PLI schemes," he added.

"Policies promoting production incentives will foster growth and enhance the global competitiveness of Indian businesses," he said.

Rajesh Gupta, the founder and director of Recyclekaro, said, "We hope to see strong policy support and tax incentives that encourage innovation in clean energy solutions like solar, wind, and energy storage, while also prioritizing the growth of domestic manufacturing for green technologies. Simplifying regulations, alongside increased funding for renewable energy R&D and grid integration, can help India maintain its position as a global leader in sustainable energy."

"Policies that promote the development of advanced battery manufacturing, establish robust recycling networks, and support circular economy initiatives are crucial for a self-sufficient and sustainable electric vehicle ecosystem. Strengthening research and encouraging collaboration between public and private sectors in the battery supply chain will not only reduce our reliance on imports but also pave the way for India to become a global leader in clean innovation," he added

During a meeting with the Union Rural Development Minister Shivraj Singh Chouhan on January 3, rural development ministers from over a dozen states reportedly sought to increase the financial aid provided under the Pradhan Mantri Awaas Yojana-Gramin (PMAY-G).

The states include Andhra Pradesh, Assam, Bihar, Gujarat, Haryana, Jharkhand, Madhya Pradesh, Manipur, Nagaland, Punjab, Tamil Nadu and Tripura.

The ministers sought to increase the financial aid to Rs 2-2.25 lakh per unit.

The aid has not been revised since the introduction of the scheme in 2016, when the government fixed it at Rs 1.20 lakh for plain areas and Rs 1.30 lakh for hilly areas.

FY 2024-25 target and budget: On February 1, 2024, Finance Minister Nirmala Sitharaman announced that 2 crore houses will be built under the scheme in the next five years.

In July, 2024, Rs 54,500 crore was allocated for FY 2024-25.

Shalya Gupta, the CEO of Credifin Limited, said that in order to aid the growth of the EV sector, the Budget should include green finance initiatives and the government should take measures to incentivise EV purchases.

She suggested Green Finance Initiatives like Green Bond Market Expansion and Carbon Credit Trading Framework.

Green Bond Market Expansion are "policies to promote the issuance and adoption of green bonds for funding EV infrastructure and sustainable projects," he said.

He said Carbon Credit Trading Frameworks are "frameworks that reward companies investing in eco-friendly initiatives."

With regard to the hurdles faced during EV purchases, he said "the initial cost of EVs remains a barrier for many consumers."

To incentivise purchases, he suggested enhancing subsidies, providing tax benefits, make investments on charging infrastructure and fast-charging stations, reduction of GST on batteries, and provide affordable charging facilities.

"Climate change is a pressing concern, and the finance sector has a role to play," he said.

The last two budgets expected the nominal GDP to grow by 10.5 per cent.

In FY 2023-24, the GDP grew by 9.6 per cent, and in FY 2024-25, 9.7 per cent.

Siddhartha Khemka, head of research of wealth management at Motilal Oswal Financial Services, believes that Indian equities may remain under pressure till union budget announcements and the US Federal Reserve rate cut.

"Indian equities are expected to remain under pressure, ahead of Federal Reserve's rate decision and commentary on Wednesday and the union budget announcements on Saturday," he said. --Reuters

Vishal Puri, Co-Founder of Spalba, said, "The upcoming budget must prioritize simplifying GST compliance to streamline operations and foster business growth across the sector. Additionally, the introduction of mandatory sustainability practices, including energy-efficient construction and waste management, will not only help the industry become greener but also more competitive."

"India must also prioritize the development of digital infrastructure to bridge existing gaps and drive growth. Digital twin technology, which creates virtual replicas of physical assets, offers a transformative opportunity for the hospitality and tourism industry," he added.

Joseph Sudheer Thumma, Global Chief Executive Officer & Managing Director of Magellanic Cloud said, "In an era of rapid Gen AI, and cloud computing, we expect the government’s upcoming budget to prioritize policies that foster innovation and address the evolving needs of the tech sector."

"This includes continued support for R&D in cutting-edge technologies, initiatives to bridge the digital divide and enhance digital literacy, and a focus on developing a robust infrastructure to safeguard our digital assets. We believe these measures will be crucial for India to maintain its competitive edge in the global technology landscape," she added.

The upcoming Budget 2025-26 comes in the backdrop of a discernible slowdown in growth, compounded by continuing sluggishness in consumption indicators and middling private investments. North Block officials engaged in the Budget-making exercise are learnt to be weighing the option of tweaks in income tax rates at lower income levels, a proposal that was considered in the July Budget but failed to pass muster, alongside a bevy of incentives for micro, small and medium enterprises (MSMEs).

The support for the MSME sector is being seen as crucial, given its outsized influence in large-scale employment and in India’s labour-intensive exports, people in the know said. Read More

Dr Sabine Kapasi, Co-Founder and MD at Enira Consulting Pvt Ltd, said, “A key area of focus should be the enhancement of digital health infrastructure, especially in underserved regions. Investments in telemedicine hubs and improved internet connectivity can make medical expertise more accessible to remote communities. Supporting digital platforms and applications will further bridge gaps between patients and healthcare providers, ensuring timely and efficient care delivery."

"Recent health challenges underscore the need for robust healthcare infrastructure and emergency preparedness. The outbreak of Human Metapneumovirus (HMPV) in China has led to a rampant increase in healthcare system use. Such outbreaks highlight the importance of being prepared for any type of healthcare emergency. Lessons learned from the COVID-19 pandemic further emphasize the necessity of strengthening healthcare infrastructure to respond effectively to health emergencies," she added.

"The 2025 Budget has the potential to lay the groundwork for a healthcare system that is equitable, innovative, and aligned with global sustainability goals," Kapasi said.

Shrirang Deshpande, Strategic Program Head of Vertiv India said, “The adoption of technologies like artificial intelligence (Al), cloud computing, and 5G, as well as exponential data consumption, are driving India's booming digital economy. We anticipate measures supporting the rise of data centers as the Union Budget draws near, such as incentives for integrating green energy, simplified regulations for expanding infrastructure as well as initiatives to improve connectivity in tier-2 and tier-3 cities, generating employment opportunities."

"Targeted policies could streamline processes for data centre vendors, enabling them to invest in advanced technologies and infrastructure. By this, India will be able to handle the growing needs for data both domestically and internationally and positioned to spearhead the global data revolution by meeting the vital demands of this industry, solidifying its standing as a digital powerhouse and potential location for investments in top-notch data infrastructure," he added.

Vimal Kumar, Managing Director, Best Agrolife Ltd said, “The 18 per cent GST on agrochemicals makes quality crop protection expensive for farmers. Reducing it to 5 per cent would make these products more accessible, boosting productivity and profitability. Additionally, India’s reliance on imports highlights the need for Production-Linked Incentive (PLI) benefits to encourage local manufacturing."

He added, "The increasing pest resistance demands innovative solutions but at the same time the rising raw material costs are a major challenge for industry. To support this, the government could reintroduce the 200 per cent income tax deduction on investments in R&D and registration studies. The PLI scheme and research-linked incentives would create an ecosystem that drives innovation and develops solutions tailored to India’s agricultural needs. The government can promote public-private partnerships to develop new crop protection molecules in India."

N.P Ramesh, COO and Co-Founder of Orb Energy said, "The upcoming Union Budget is an opportunity to remove financial barriers and encourage adoption. One key step would be restoring 100 per cent accelerated depreciation for solar investments—a policy that once made solar a more viable choice but was later reduced to 40 per cent. Bringing it back would help businesses recover costs faster and drive wider adoption."

He added, "In the residential sector, the subsidy provided on systems could be replaced by income tax incentives which would remove the administrative burden of managing the subsidy mechanism.  This could also get more people filing taxes. Equally important is strengthening domestic solar manufacturing. Providing better infra support and tax breaks would be better than production-linked incentives."

Dr. Eilia Jafar said, ''In 2025, we expect the government to focus its budget on supporting vulnerable communities in the face of climate change. This includes investing in infrastructure that can withstand natural disasters, enhancing early warning systems, and building resilience in areas most at risk."

"We also anticipate increased efforts to ensure inclusivity in this transition. The budget should prioritize programs that bring renewable energy solutions, like solar power and electric vehicles (EVs), to underserved populations. Making EVs affordable and accessible, especially in rural and low-income areas, will play a critical role in reducing emissions and ensuring the benefits of clean technology are widely shared," she added.

Shashank Noronha, Founder of TABBSZ, said, 'As an entrepreneur committed to sustainability and innovation, I hope the upcoming budget prioritizes policies that empower MSMEs and startups driving meaningful change."

"By introducing tax incentives for eco-friendly products, simplifying regulatory processes, and investing in waste management, skill development, and infrastructure, the government can create a strong foundation for sustainable businesses to grow and succeed," he added.

Former Tech Mahindra CEO CP Gurnani highlighted that India's technology exports are approximately $250 billion and enhanced government support in skilling and upskilling initiatives is needed to be successful.

"India's exports are approximately USD 250 billion in the technology sector. And for us to be successful, I think we need to allocate a lot more to skilling and upskilling. We need to involve the academia. We need to involve the schools...we would need the government's support there," he said.

He also highlighted the need for a more distributed and cost-effective computing infrastructure. (PTI)

Ujjwal Singh, Founding CEO of Infinity Learn by Sri Chaitanya, said, “The Union Budget 2025 should place a strong emphasis on the growth and sustainability of the K-12 edtech sector, particularly in driving measurable learning outcomes."

"As we see a shift towards AI implementation in education, it is crucial that the budget supports the integration of intelligent systems to enhance personalized learning experiences to ensure ‘Baccha Seekha Ki Nahi’. The rapid growth of the test preparation sector also demands attention, with a need for investments that ensure accessible, quality education across all regions," he added.

Jaskiran Arora, Dean of Education Quality, BML Munjal University, said, "As we look ahead to Budget 2025, the higher education sector has clear expectations aimed at global competitiveness and innovation. There is a strong call to allocate 6 per cent of GDP to education, enabling significant growth. To foster development, enhancing foreign investments and enabling foreign currency loans for educational institutions is crucial, particularly to upgrade infrastructure and adopt cutting-edge technology solutions.

"The Budget should also focus on expediting clearances for foreign grants and donations, streamlining regulatory processes, and creating an environment conducive to global partnerships and digital learning capabilities to shape the future of India’s higher education system," he added.

With Finance Minister Nirmala Sitharaman all set to present the Union Budget for the FY 2025-26 on February 1, Kerala is hoping to bring an end to the long-pending financial issues it had with the Centre. State Finance Minister K N Balagopal said that the state is awaiting the union budget with huge hopes.

Balagopal said Kerala has demanded a special package for the state and also another relief package for the Wayanad landslide victim rehabilitation and for the Vizhinjam International Port. "We have given our demands in detail in the pre-budget meeting held at Jaisalmer last month. There have been several financial cuts to Kerala, and we have demanded to solve these issues," he said.

The finance minister hoped that the union budget would consider the special financial condition the country is going through and would bring in measures to improve the situation. "The reports from Niti Ayog and RBI show that we are not achieving the projected financial growth. So the central government should implement projects that would bring money to the hands of the people. I am hopeful that the Union finance ministry will take appropriate measures," Balagopal added. (PTI)

Ankit Anand, Founding Partner at Riceberg Ventures, said, "The upcoming budget presents an opportunity to strengthen India's position as a global leader in deep tech innovation. To realize this, the government must focus on establishing a comprehensive framework that supports research and development, infrastructure, and talent cultivation. Providing non-dilutive grants, facilitating co-investments through entities like SIDBI, and creating state-backed funds will enable startups to navigate the high costs and long gestation periods inherent to deep tech."

"By simplifying regulatory frameworks and ensuring access to secure, structured government data, we can empower startups to develop groundbreaking solutions for sectors like healthcare, agriculture, and clean energy," he added.

Sunil Sharma, Vice President (Sales) of Sophos said, “With the recent introduction of the Digital Personal Data Protection (DPDP) Act rules, India has made significant strides in establishing a strong foundation for data protection and privacy. Ahead of the Union Budget 2025-26, we look forward to measures that will further strengthen the nation’s cybersecurity framework."

"Additionally, as enterprises take on digital transformation or AI adoption, the focus on cybersecurity may fall by the wayside as there is a gap between supply and demand of skilled cybersecurity resources. Mitigating this issue requires investments in cybersecurity courses in educational institutes as well as continuous skilling opportunities for those already working," Sharma said.

Akshali Shah, Executive Director of Parag Milk Foods Ltd. said, "As we approach the budget, we anticipate initiatives aimed at enhancing dairy production through increased investment in advanced infrastructure, technological innovation, and access to affordable financing for farmers."

She added, "Another important aspect of the budget should focus on encouraging correct labeling standards and promoting consumer awareness about quality dairy products which are crucial to building trust and ensuring long-term growth. Policy support for sustainable dairy practices, modernized supply chains, and skill development for farmers will empower the industry to meet growing demand while aligning with global quality standards." 

In a statement, Jindal Stainless Managing Director Abhyuday Jindal said, "We recommend reducing import duties to zero on critical raw materials unavailable in India, such as molybdenum ore, and continuing with zero duties on pure nickel, ferro-nickel, stainless steel scrap, and mild steel scrap." In a bid to give a boost to the demand of stainless steel, Jindal said that the government should continue to prioritise infrastructure spending, with a strong focus on developing mobility infrastructure like inland waterways, rail infrastructure, and coastal shipping.

"To safeguard the domestic industry from the distortion caused by low-priced imports, we urge the government to raise the basic customs duty on stainless steel products to 15 per cent for all non-free trade agreement countries. These steps will further strengthen the domestic stainless steel sector and position it as a vital driver of India's Viksit Bharat@2047 vision," Jindal added. (PTI)

Ms Meenakshi Menon, Founder of GenS Life said, “One of the most difficult challenges was entering a largely unexplored industry as there were no benchmarks or proven case studies to follow."

She added, "Another challenge was building communication for the caregivers/children of 60+. They must understand that being 60+ is not the end of life, instead, it’s the start of a new chapter and 60+ individuals can have his/her own choices and can live their life with full freedom. We wanted to design an experience that was not just easy and accessible, but also compelling enough to drive repeated use. This required us to look at the design and functionality used within the app to foster a sense of familiarity and comfort for our users."

Puneet Gupta, Vice President and Managing Director of NetApp India/SAARC said,“As India moves closer to becoming a global technology hub, the upcoming Union Budget presents a unique opportunity to accelerate our digital transformation journey."

Madhu Krishnamani, Founder & Managing Director of Botanic Healthcare, said the budget will create the framework needed to support the growth of the nutraceutical and botanical industries.

"We are optimistic that the 2025 budget will provide the necessary framework to support the growth of the nutraceutical and botanical industries, especially in areas like sleep health, weight loss, and other wellness solutions. The government should prioritize funding for research into botanical herbs that have yet to reach their full potential," he said.

“Investing in innovation and promoting these plant-based solutions will not only meet consumer demand but also help build a more sustainable and health-conscious future.” he added.

Despite multiple challenges and uncertainties, India’s Gross Development Product (GDP) growth rate has rebounded, largely driven by the services sector, which accounts for approximately 55 percent of the current GDP, according to the Ministry of Statistics and Programme Implementation.

This growth is particularly notable in the IT sector, which contributes about 56 percent of India’s total services exports on the national landscape, as per a report by the Global Trade Research Initiative (GTRI).

Present landscape and the role of IT

As reported by World Bank, the US$3.5 trillion Indian economy enters 2025 with immense potential in areas such as healthcare and insurance, infrastructure, Electric Vehicles (EVs), Fast-moving Consumer Goods (FMCG) and renewable energy. It is expected to be another exciting year for the technology sector, which will continue to play a pivotal role in the previously mentioned (but not limited to) areas. Read More

Kuldip Raina, Director of Shalimar Paints said that as India’s GDP grows and smart cities emerge, the paint industry is optimistic that Budget 2025 will drive market expansion, with key measures such as reduced import duties, incentives for rural penetration, support for R&D and sustainable solutions, and export growth initiatives, all contributing to sustained demand in both decorative and industrial paints while aligning with the nation's economic and environmental goals.

"As we approach Budget 2025, the paint industry is optimistic about government measures that will drive growth and sustainability. With India’s GDP poised for significant expansion and the development of smart cities, the growth in real estate is expected to further fuel demand in decorative and industrial paints. Despite this growth, India’s per capita paint consumption remains lower as compared to developed nations, reflecting the immense potential for market expansion. New renovating trends, including shorter repainting cycles, are driving demand in the decorative paints segment, reflecting evolving consumer preferences and driving sustained market growth," he said.

"Additionally, government schemes such as PMAY (Grameen) and increased spending on infrastructure projects will boost industrial paint demand, driven by economic growth and growing disposable incomes. Reducing import duties is crucial for sustained growth, given the industry's reliance on imported resins and chemicals," he added.

Ahead of the Union Budget, Tata Technologies on Monday called for increased allocation toward upskilling initiatives aligned with Industry 4.0 to create a future-ready workforce.

In order to achieve India's ambitious goals outlined in the roadmap for a $5 trillion economy, the budget should prioritise innovation-driven policies, investments in emerging technologies, and the development of products in India, for India and the world, Tata Technologies CEO & MD Warren Harris said in a statement.

Key growth drivers such as smart manufacturing, AI, digital transformation, and software-defined vehicles (SDVs) require strong government backing through incentives for R&D, skill development, and infrastructure enhancement, he noted.

Outlining the company's expectations from the budget, Harris said,"We recommend increased allocation toward upskilling initiatives aligned with Industry 4.0, creating a future-ready workforce capable of excelling in advanced technologies like AI, IoT, and cybersecurity." India's focus on sustainability and green mobility can benefit from policies encouraging the adoption and manufacturing of electric vehicles (EVs) and clean energy solutions, he added. (PTI)

Muskan Kakkar, the COO and co-Founder of GoMechanic, has anticipated the budget to focus on the EV sector.

"We expect that the budget places a strong emphasis on funding for infrastructure that supports the EV ecosystem, like tax credits for green technology adoption and subsidies for establishing EV service centers," she said.

"In order to satisfy future industry expectations, measures that support technicians' upskilling in handling next-generation vehicles—both electric and autonomous—will also be essential," she added.

Easing credit access, subsidies and incentives for MSMEs are reportedly being discussed in the government ahead of the Union Budget 2025.

This is in light of the growth in the MSME sector in India, with the exports rising from Rs 3.965 lakh crore in FY2020-21 to 12.39 lakh crore in FY2024-25, as per PIB report.

“There is a concern about the high tax incidence at lower income levels and that has come up during internal discussions for the Budget. Estimates have been drawn about the marginal income tax rates and some relief is being considered for those earning less and senior citizens,” a person familiar with the matter told The Indian Express.

Read here

Jitin Bhasin, the CEO and Founder of SaveIN, expects that the government will introduce policies to bolster digital economy which would in turn help build sustainable financial practices.

"We anticipate policy measures that bolster digital infrastructure, ease access to credit, and encourage sustainable financial practices," he told The Indian Express.

"The integration of embedded finance can play a transformative role in boosting responsible consumption by seamlessly embedding financial services into everyday transactions," he added.

The salaried class can expect some good news from the Union Budget 2025-26 to be presented on February 1 with the Union Finance Minister Nirmala Sitharaman expected to announce significant relief for this section.

According to sources, the government is considering hiking income tax slabs and enhancing the standard deduction to address the concerns of middle-class taxpayers amid rising inflation.

The current tax structure, with a basic exemption limit of Rs3,00,000 under the new tax regime, has drawn criticism for being outdated in the face of escalating living costs.

Experts anticipate an increase in this threshold to provide much-needed relief to small taxpayers, reducing their compliance burden and lowering mandatory tax filing obligations. --ANI

As the Union government gears for the Union Budget 2025-26, players in electric Vehicles (EVs) have urged Finance Minister Nirmala Sitharaman to introduce transformative reforms that enhance affordability, infrastructure, and innovation in the sector to tackle both manufacturing and consumer-centric challenges.

Anshul Gupta, Managing Director of OPG Mobility, said, "We urge the government to extend robust financial support through subsidies, tax rebates, and investments in public charging infrastructure. Empowering tier 2 and tier 3 cities with affordable mobility solutions, such as electric two-wheelers and three-wheelers, can significantly accelerate EV adoption across diverse demographics."

Here are some of the schemes introduced by the central government for the EV sector:

- Faster Adoption and Manufacturing of (Hybrid and Electric Vehicles in India (FAME India) Schemes,

- Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India (PLI-Auto),

- LI Scheme for Advanced Chemistry Cell (ACC),

- PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme --ANI

The Congress leadership has demanded that a hike in wages be introduced under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).

The opposition party demanded that MGNREGA wages be increased with the goal of hitting Rs 400 per day as a national minimum wage.

In a statement, Congress general secretary in-charge communications Jairam Ramesh said MGNREGA wages cannot be set by the arbitrary whims of the government, demanding the wages be increased to Rs 400.

He also put forward the demand that the number of workdays under MGNREGA must be increased from 100 to 150 days.

The highest wage is currently is provided by Haryana (Rs 374 a day), while the lowest are in Arunachal Pradesh and Nagaland (Rs 234).

In FY2024-25, Rs 86,000 crore was allotted for the scheme.

(With PTI inputs)

With bigger players exploiting Quality Control Orders and tariff barriers, MSMEs have begun pushing back on protectionist measures, especially in the steel industry following demands for 25 duty hike.

The Engineering Export Promotion Council (EEPC) highlighted that domestic steel prices are much higher than imports.

Chemicals, solar, copper and textiles industries were similarly affected, according to reports. MSMEs that use these capital goods are burdened with high costs.