Finance Minister Nirmala Sitharaman is scheduled to introduce the Union Budget for the next fiscal year on February 1, 2025. In an effort to help the middle class and increase consumption, the Narendra Modi administration is reportedly considering lowering income taxes for those making up to Rs 15 lakhs annually and expanding the tax relief band. Not only individuals, but also stakeholders in the retail, AI, EV, and infrastructure sectors are anticipating specific changes and innovation in their respective sectors as anticipations for the next budget start to materialize.
Umesh Revankar, Executive Vice Chairman, Shriram Finance Limited
Umesh Revankar, Executive Vice Chairman, Shriram Finance Limited stated, "We anticipate that the upcoming Union Budget will prioritize infrastructure spending, which will significantly benefit our lending segments, particularly small businesses, contractors, and transporters. This focus on infrastructure is expected to lead to a surge in demand for steel, cement, and other materials, further driving demand in vehicle finance and other sectors reliant on bulk materials.”
Sharing his insights about the possible growth of the infra sector in India, Revankar opined, "This will not only boost economic activity but also create substantial employment opportunities, especially in semi-urban and rural areas. We foresee new vehicle sales growth in Q4 to be in double digits year-on-year, as we expect government spending on infrastructure to be much higher than previous quarters."
Girish Hirde, Global Delivery Head at InfoVision
Girish Hirde, Global Delivery Head at InfoVision highlighted “As we approach Union Budget 2025, InfoVision anticipates a forward-looking agenda that addresses the transformative potential of AI and other cutting-edge technologies. We expect robust provisions to maintain India's global competitiveness in the rapidly evolving tech landscape. Key areas we hope to see addressed include investments in AI infrastructure, establishment of clear ethical guidelines for AI development, and tax incentives for companies investing in AI and emerging tech training programs.
“Furthermore, we look forward to support for telecom advancements, particularly in 5G and 6G infrastructure, which are crucial for enabling AI and IoT applications at scale. We also anticipate increased allocation for cybersecurity to strengthen India's digital defenses, enhanced funding for AI and deep-tech startups, and incentives for AI integration across sectors like healthcare, agriculture, and manufacturing. By focusing on these areas, Budget 2025 can lay the foundation for India to lead in the AI era, creating sustainable job opportunities and driving optimal growth in the digital,” he adds.
Dinkar Agrawal, Founder, CTO & COO, Oben Electric
The Union Budget 2025 is a critical opportunity to address key challenges in India’s EV transition. To achieve the ambitious target of 30% EV penetration by 2030, it’s crucial to tackle both manufacturing and consumer-centric challenges. “Simplifying the GST structure with a uniform 5% tax across EVs, components, and charging infrastructure is essential to reducing costs and fostering growth. Additionally, resolving the inverted GST structure on raw materials will ease working capital pressures and encourage sustainable manufacturing. Performance-linked incentives for battery innovation and indigenous component manufacturing can further strengthen India’s Make-in-India push, positioning the country as a global leader in EV technology. On the consumer front, initiatives like reduced interest rates on EV loans and targeted subsidies can make electric vehicles more accessible, bridging the affordability gap.” highlights Mr. Dinkar Agrawal, Founder, CTO & COO, Oben Electric
