The much awaited Union Budget 2025 is expected to be presented by Finance Minister Nirmala Sitharaman on February 1st. With this, it has sparked a significant anticipation across industries. Also to note, this marks her eighth budget presentation and the second full-fledged budget for the Modi 3.0 government.
Now let’s delve into expectations of various sectors from this year's budget:
Web3 Sector
If we speak of the Web3 industry, the players in this space are calling for changes to the high taxation policies on cryptocurrencies. For instance, Shivam Thakral, CEO of BuyUcoin, expects a reduction of 1 percent TDS and 30 percent capital gains tax on virtual digital assets (VDAs). Furthermore, the sector is also seeking for clear regulatory guidelines and tax reforms so as to steer the much needed innovation and encourage investments.
Textile Industry
Looking at it from the textile sector, the players hope for facilitating measures which will support MSMEs, job creation, skill development, and also tax rationalization on inputs. For instance, Shamsher Dewan of ICRA has suggested favorable financing terms for investments in value-added products to drive competitiveness.
Real Estate
Not so far, the real estate industry is also looking out for policies that can address affordable housing challenges, coupled with tax holidays for developers, increased home loan interest deduction limits, and a deeper focus on infrastructure development and urban land reforms. Adding to this, the are also expecting a single-window clearance system and incentives that can attract investments are also on the wishlist.
Finance Sector
Another important sector, i.e., the finance industry expects the expansion of tax incentives on mutual funds and equity-linked instruments, coupled with simplification of tax laws, and reforms in long-term capital gains tax structures. This would be to boost wealth creation and at the same time enhance financial planning opportunities.
The Union Budget 2025 will offer a unique opportunity for the government to address sectoral challenges to boost economic growth by fostering targeted reforms and policies. Most of the industries are optimistic about favorable announcements that could shape India’s economic future for better.
Human Resources and AI
When we look at the HR and AI sectors, they are also emphasizing the need for funding AI research, reskilling initiatives, and devise ethical guidelines for AI applications. Lokesh Nigam, CEO of Konverz.ai, greatly believes these steps can prepare the workforce for the future and position India as a global leader in AI innovation.
Retail Fashion
Another sector that is expecting a positive outcome from Budget 2025 is the retail fashion industry who are seeking simplified compliance processes, incentives for sustainable initiatives, and tax reliefs to drive domestic production and exports. Additionally, enhancing further support for MSMEs and startups is also on their agenda.
Healthcare
In the realm of healthcare, Rajat Goel, CEO of Eye-Q Superspeciality Hospitals has highlighted the dire need to reduce GST and import duties on critical medical equipment to lower treatment costs. Furthermore the industry also expects increased budgetary allocations to expand healthcare infrastructure and promote public awareness.
FMCG
If we speak of the FMCG sector, the players are advocating tax benefits to increase disposable income and stimulate consumer spending, as it still remains muted due to slow urban consumption and weak rural growth.
Tax Reforms
Speaking of the tax reforms, Ernst & Young India has suggested raising the personal tax exemption limit from INR 3 lakhs to INR 5 lakhs. Furthermore, they have also advised on the need to reduce tax rates under the new tax regime while simplifying the income tax filing process by revising the IT Act, 1961, is also anticipated.
Economic Growth and Fiscal Responsibility
From the government’s outlook, it is expected to focus on stimulating fiscal consolidation, increased public expenditure, incentivizing private sector investments, and introducing targeted tax reforms that can help in driving economic growth while keeping the fiscal deficit in check.
Access to Budget Documents and Live Broadcast
It is important to note that the budget will be presented in a paperless format and will be accessible through the Union Budget Mobile App and the official portal https://www.indiabudget.gov.in. Furthermore, the speech will be broadcasted live on Doordarshan, Sansad TV, and their YouTube channels.
To conclude, the Union Budget 2025 will offer a unique opportunity for the government to address sectoral challenges to boost economic growth by fostering targeted reforms and policies. Most of the industries are optimistic about favorable announcements that could shape India’s economic future for better.
