Budget 2025 expectations highlights: Income tax changes, new sectoral policies

Budget 2025 expectations LIVE: Saunak Saha, partner - climate change and sustainability services, EY India said, “As India stands at a pivotal moment in its green transition, the Union Budget 2025 is an opportunity to catalyze sustainable growth through robust policy measures. We expect greater clarity on climate financing, including a defined taxonomy for sustainable investments and tax incentives such as reduced interest rates on green loans and exemptions on capital gains for eco-friendly projects. The development of a well-structured Domestic Carbon Market is also critical to achieving our decarbonization goals, as it will enable companies to trade carbon credits efficiently and support investments in emission-reducing technologies. It will also assist companies in responding to global regulations like CBAM.

Incentivizing R&D in green technology and renewable energy, alongside targeted benefits for electric vehicle adoption and infrastructure, can further bolster India’s commitment to decarbonization. Additionally, the Budget must prioritize frameworks for a just transition by supporting reskilling programs and social safety nets for workers in traditional sectors. By aligning fiscal policies with climate goals, India can not only meet its 500 GW renewable energy target but also solidify its leadership in sustainable development on the global stage.”

Budget 2025 expectations LIVE: Anil G Verma, CEO and Executive Director of Godrej & Boyce said, “As we approach the Union Budget 2025-26, I am optimistic that the government will continue its focus on boosting infrastructure development, maintaining fiscal prudence, and laying emphasis on women, youth, farmers, and the underprivileged through skilling, welfare measures and financial assistance.

The important area that needs to be addressed now, amongst others, is the continued lower than expected growth in private consumption. Private consumption drives private investment and therefore I am hopeful that the GoI will take steps that boost consumption through a slew of measures that could include reviewing of personal income tax slabs and reassessment of the interest rates to provide EMI relief to the large masses whose purchases of assets such as homes and consumer durables are through loans.

The above will not only provide tailwinds to the consumer durables industry but also have a multiplier effect on the industries that serve them, through increased capacity utilization and hence also pave the way for private investments to flow in at a faster pace.

Looking ahead, I hope that the upcoming budget continues to prioritize these areas while also introducing policies that promote innovation, production-linked incentives (PLIs), and sustainable practices. These measures are crucial for driving holistic economic growth and ensuring balanced and inclusive development for India.”

Budget 2025 expectations LIVE: Moin Ladha, Partner at Khaitan & Co said, “With the Union Budget 2025 fast approaching, the industry as a whole is hopeful for some interesting changes to the regulatory landscape, particularly changes to foreign investment policy, streamlined compliance, and key policy changes in certain sectors. One such key change that the Budget 2025 may bring with it is the introduction of 100% foreign direct investment (FDI) in the insurance sector, raising it from its present 74%. This significant shift in policy may also allow foreign insurers to operate independently in India. To diversify the capital flow of the sector, Finance Minister Nirmala Sitharaman is likely to announce allowance of multiple insurance services to be provided by a single entity.”

Budget 2025 expectations LIVE: Vivek Baj, Partner at Economic Laws Practice said, “The upcoming Union Budget 2025 has built in a lot of anticipation. It is expected that the Modi 3.0 Government will introduce policies and reforms to enhance investment in India and boost the Make in India drive. Like the earlier budgets, it is also expected that, this year, the Government will continue rationalising rates, encourage domestic production, reduce tax litigation, and provide better precision in tax laws. The trade industries across sectors are expecting a scheme for one-time settlement of Customs legacy matters pending before various judicial and quasi-judicial forums. Therefore, in all likelihood, similar to the erstwhile successful schemes viz., Sabka Vishwas Legacy Dispute Resolution Scheme (SVLDRS), Direct Tax Vivad Se Vishwas Scheme, it is expected that the Government may introduce Customs Amesty Scheme 2025 in order to provide an opportunity to the trade to end long-drawn Customs litigations.”

Budget 2025 expectations LIVE: Dr. PR Sodani, President of IIHMR University said, “Anticipating the Indian government’s financial blueprint, the expectations hinge on recalibrating priorities, and aligning with global standards to stimulate a robust health management education system. The mushrooming demand for skill-based education, digital learning capabilities, micro credentialing, and global partnerships require dedicated funds and training for transformation in higher education sector. As a leading institute in health management education in the country, we believe injecting renewed commitment towards health management education through collaboration between industry, academia, and start-ups will drive digital innovation, leading better health outcomes. Launch of digital health incentive plan will empower adoption of Ayushman Bharat Digital Mission (ABDM), add to data security, execute electronic health record systems, and upskill technical resources. Dedicated fund to position India as a leader in high-quality health management education with targeted investments in critical and holistic health services is another expectation.”

Budget 2025 expectations LIVE: Dhiraj Singh CEO SIS ltd said, "As we anticipate the upcoming union budget, we remain optimistic that the government will prioritise job creation incentives and the effective implementation of labour law reforms. These steps are essential for creating new employment opportunities, promoting skill development, and enhancing the ease of doing business.

Simplifying and expediting labour codes will not only streamline compliance processes and reduce operational challenges but also pave the way for a more transparent and efficient framework for industries. Such reforms could give businesses the confidence to expand their workforce and invest in sustainable growth. We look forward to policies that encourage collaboration between industries and the government, with a focus on generating jobs in key sectors and unlocking the true potential of India’s talent pool.

With these initiatives, the budget can become a catalyst for economic growth and a meaningful step towards realising the nation’s vision of self-reliance.”

Budget 2025 expectations LIVE: Shereef Rehuman, MD, ICEXPO Consults pvt. Ltd said, "The pharma sector anticipates enhanced incentives for domestic API and biosimilar production to reduce import dependency. To truly elevate India's healthcare ecosystem, three critical areas demand attention.

Bolstering healthcare manufacturing and infrastructure is essential. With India poised to be a global leader in healthcare, strategic investments in domestic manufacturing will not only enhance self-reliance but also position the country as a hub for cutting-edge medical technologies and devices. Streamlining regulatory frameworks is crucial, Simplified processes can fast-track the entry of innovative pharmaceuticals and health technologies into the market, ensuring patients benefit from advancements without unnecessary delays. A forward-looking regulatory environment can spark a wave of innovation, attracting global investments and fostering growth. Healthcare must be affordable and accessible to every citizen. Strengthening public-private partnerships and leveraging technology-driven solutions can make quality healthcare a reality for all."

Budget 2025 expectations LIVE: Prashant Vashishtha, Chairman and Managing Director of Sokudo Electric India said, “At Sokudo, we’re excited about the Union Budget 2025-26 and its strong focus on growing the electric vehicle ecosystem. It’s great to see the government making EVs a priority, it shows their commitment to a cleaner, greener future, which is something we’re passionate about.

This focus on EV infrastructure isn’t just good for the industry; it’s great for people who are looking for practical and sustainable ways to get around. For us, it means we can keep improving our scooters and make them even more accessible and efficient.

It’s inspiring to see such a clear vision for sustainable mobility, and it gives us even more motivation to innovate and make EVs the first choice for everyone. This budget isn’t just about policy; it’s about real change, and we’re proud to be part of it.”

Budget 2025 expectations LIVE: Suresh Ramamoorthy, Country Head of Lingaro India said, "According to a report by HSBC Global Research, the Indian IT export/ outsourcing sector is set to reach a value of USD 210 billion in the 2024-25 financial year, which is 18% of total global IT outsourcing spending. As India emerges as a top geography for GCC’s and also as a leading hub for tech driven start-ups and innovation, the budget 2025 will be pivotal in ensuring continuous growth of the sector.

Further, targeted tax incentives for GCC’s, similar to the 15% corporate tax rate extended to new manufacturing companies, will help boost the establishment and expansion of GCCs, which play a crucial role in driving innovation and creating employment opportunities.

Additionally, supportive policy structures that drive ease of doing business, including infrastructure development, and skill development, will all go a long way and making this sector robust and economically strong. The expansion of GCCs is poised to generate approximately 300,000 new jobs in 2025, significantly contributing to India’s economic growth and employment landscape.

Other areas like tax reforms and policy changes that work towards simplifying compliance, can help empower local players and MNC’s to deliver innovative solutions with lesser complication. Incentives for FDI in Emerging Technologies such as artificial intelligence, blockchain, and quantum computing, and tax rebates for R&D, can drastically accelerate innovation and growth of the sector while also driving tech adoption across key sectors in the country.

We also look forward to initiatives that help boost investment for areas like advanced analytics, AI, and data-driven technologies. At Lingaro, we remain committed to leveraging these developments to drive innovation and create impactful solutions in India’s dynamic market landscape."

Budget 2025 expectations LIVE: Sabyasachi Goswami, the CEO of Perfios said, "As we approach the Union Budget 2025-26, the TechFin sector is looking forward to policies and reforms that could drive further growth. The previous budget introduced significant changes, such as the abolition of the angel tax, which was a welcome move for startups and early-stage companies. However, the increase in capital gains tax rates has had a mixed impact on investments.

Given the rapid growth of India's enterprise fintech ecosystem, projected to reach USD 20 billion by the decade's end, it is crucial for the upcoming budget to foster innovation and provide a conducive environment for both Fintech and TechFin companies. Unlike traditional fintech firms that provide access to credit and other financial solutions using existing technologies, TechFin companies like Perfios are fundamentally tech-first enterprises that empower financial institutions through their advanced technological capabilities for smarter decisioning, sharper risk assessment, robust fraud prevention, seamless customer journeys, and deep analytics. So while we hope for policies that encourage digital lending, enhance financial literacy, and streamline digital KYC norms, we also ask for a strong push for advanced risk assessment, fraud detection and cybersecurity investments that would enhance trust and resilience in the financial ecosystem.

Additionally, the BFSI sector would benefit from rationalizing GST on financial services, which remains a long-standing demand, as well as incentives for digital infrastructure expansion to accelerate financial inclusion. Simplifying compliance frameworks for regulated entities and providing clearer guidelines on digital lending partnerships would also help banks and NBFCs collaborate more effectively with TechFin firms. As a strong advocate for TechFin innovation, we believe that such measures will not only support the fintech and BFSI sectors but also contribute to the broader goal of financial inclusion and economic growth, while driving deeper integration and adoption of technology to transform the sector."

Budget 2025 expectations LIVE: Subho Moulik, Founder & CEO of Appreciate said, “The recent slowdown in GDP growth has made Budget 2025 one of the most eagerly awaited in recent years. To drive economic recovery, foundational demand stimulation measures should take center stage. The government’s focus on record-high capital expenditure is expected to continue, with significant allocations likely to boost industries such as manufacturing, electronics, energy, and healthcare. Emerging sectors like quick-commerce, AI, electric vehicles, and data centers are also looking to the budget for regulatory simplification, financial incentives, and a business-friendly environment.

For the Indian middle class, the budget holds particular significance, especially because CPI inflation (at nearly 6%) has grown faster than income in the last four years. (Income in the engineering, retail, IT and financial services sectors have grown at anything between 2 and 4% CAGR between 2019 and 2023, as per FICCI, IMF and Reuters report).

Tax reliefs—long overdue—are crucial to increasing disposable income and stimulating consumption. This, in turn, is essential for healthy GDP growth, as household consumption drives 60% of India’s GDP. Coupled with targeted welfare policies and reforms, these measures should provide the much-needed push to revive domestic demand while curbing household debt. The stakes are high, and all eyes are on Budget 2025 to strike the right balance between growth-oriented investments and relief for the common citizen.”

Budget 2025 expectations LIVE: Raghvendra Nath, MD, Ladderup Wealth Management said, "As we approach the Union Budget for 2025, we anticipate a comprehensive and broad-based fiscal plan from the Modi government, marking its first full-fledged budget in this term. The government is expected to focus on continued infrastructure investment, particularly in critical areas such as housing, electricity, and employment generation.

The targeted fiscal deficit is projected to be around 4.5% of GDP, reflecting the government's commitment to maintaining macroeconomic stability amidst global uncertainties.

While there may be discussions around potential relief for taxpayers, we do not anticipate any major changes in the overall tax structure in this budget. Instead, the focus will likely remain on enhancing capital expenditure and stimulating consumption to revitalize the economy, ultimately balancing support for growth initiatives with fiscal responsibility and setting a positive direction for India's economy in the coming fiscal year."

Budget 2025 expectations LIVE: Ankush Kaul, President - Sales, Marketing & CRM - Central Park said, “The real estate sector eagerly anticipates the upcoming Union Budget 2025, which is expected to focus on measures that will revitalize the market and drive long-term growth. Key initiatives, such as a reduction in home loan interest rates and increased tax deductions on loan repayments, will stimulate demand across all segments and provide a significant boost to the luxury housing market. Additionally, targeted incentives for high-end residential development—such as streamlined approvals for large-scale projects and support for green building practices and smart infrastructure—are crucial.

Investments in infrastructure and urban development to expand premium living zones will enhance the desirability and accessibility of luxury properties. By recognizing real estate as a key driver of economic growth and employment, a forward-thinking budget can position India as a global hub for high-end residential and commercial spaces. These measures will not only fuel economic growth but also strengthen India's reputation as a luxury real estate destination"

Budget 2025 expectations LIVE: Aditya Chamaria, Managing Director of Damodar Ropeways Infra Limited said, "India's tourism sector, a significant part of the country's economy, is anticipating several positive measures in the 2025 budget. Specifically, there are expectations for solid policies aimed at improving and expanding ropeway infrastructure. This would not only attract tourists but also enhance connectivity in difficult terrains and contribute to local employment generation.

To promote ropeway projects, the government is expected to provide tax exemptions, easy loan schemes, and encouragement for public-private partnerships (PPP model). Special funding is needed to expand the ropeway network in tourism hotspots like the Himalayan region, Uttarakhand, Himachal Pradesh, and the North-East."

Budget 2025 expectations LIVE: Girish Kr. Sachdev, Member- Board of Management, DPS Indirapuram said, "As the nation looks forward to the Union Budget 2025, the education sector holds high hopes for substantial reforms and increased investment. Education is the cornerstone of a progressive and equitable society, and we expect the government to allocate greater resources to strengthen the infrastructure of schools, especially in rural and semi-urban areas.

The integration of technology in education needs more focus, with dedicated funds for digital infrastructure, online learning tools, and teacher training programs. This will not only bridge the digital divide but also ensure that students across the country have access to quality education.

Additionally, we hope to see policies that promote vocational training, skill development, and research to make the younger generation industry-ready. Increasing the budget allocation for scholarships and financial aid will be instrumental in empowering students from economically weaker sections.

Teachers, being the backbone of education, require greater attention through initiatives aimed at their capacity building and well-being. Tax benefits for educational institutions and parents alike could further ease the financial burden and incentivize quality education.

We firmly believe that a progressive budget focusing on these aspects will pave the way for a stronger, more educated, and future-ready India."

Budget 2025 expectations LIVE: Saransh Trehan, Managing Director of Trehan Group said, "We are hopeful that the upcoming budget will introduce progressive measures to further strengthen the real estate sector, which is a key contributor to economic growth. Steps like reducing GST on under-construction properties, enhancing tax incentives for homebuyers, and increasing allocation for affordable housing schemes will stimulate demand and investment.

Special focus on infrastructure development, streamlined approval processes, and support for green construction practices will benefit developers and buyers alike. Additionally, initiatives to promote rental housing and revive allied sectors like construction materials and interior design will ensure holistic growth. A balanced and growth-oriented budget can unlock the sector's true potential."

Budget 2025 expectations LIVE: Vikas Garg, Joint Managing Director of Ganga Realty said, "With the upcoming budget, we anticipate policies that will bolster the real estate sector, including the growing luxury housing segment and its allied industries. Rationalizing GST, offering enhanced tax benefits for homebuyers, and incentivizing affordable and mid-segment housing can boost demand across all categories.

The luxury housing market, driven by evolving buyer preferences, would benefit from targeted initiatives such as reduced stamp duties and easier financing options. Additionally, supporting allied sectors like building materials, interiors, and technology integration will create a ripple effect across the economy. We are optimistic the budget will address these aspects to accelerate the sector's growth trajectory."

Budget 2025 expectations LIVE: Subhasish Chakraborty, Founder, Chairman, and Managing Director of DTDC Express Ltd said, "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."

Budget 2025 expectations LIVE: Deepak Kapoor, Director, Gulshan Group said, "Even though the real estate sector has performed well in the last few years, a large percentage of the population is not yet close to owning a home. As a result, the sector has tremendous future potential, which is dependent on the government and apart from continuing its thrust on economic and infrastructural development also needs new initiatives. To begin with, we would urge the government to combine home loan principal and interest deductions and raise the limit to 5 lakh. Additionally, reducing the holding period for long-term capital gains exemption to two years and enhancing the Section 54EC exemption to ₹1 crore would be great moves. Expanding REIT’s migration benefits would also encourage growth and investment in the sector. Other initiatives we hope for are making more land banks available for real estate development and a reduction in GST on input materials."

Budget 2025 expectations LIVE: Avneet Singh Marwah, CEO, of SPPL said, "As a key player in India's TV manufacturing sector, we are eagerly awaiting the Union Budget 2025 and its potential to boost domestic manufacturing. We believe expanding the Production Linked Incentive (PLI) scheme for consumer electronics will enhance the competitiveness of Indian manufacturers globally, driving production capacity, innovation, and job creation.

We also hope the government will rationalize import duties on key components like display panels and semiconductors, reducing input costs and fostering more affordable, high-quality products. Indian TV market is degrowing by 13 percent year on year. Any increase in custom duty will hamper more

We expect the Budget to focus on improving the ease of doing business, access to credit, and promoting green manufacturing practices, all of which would support India’s goal of becoming a global electronics hub.

With the right policy measures, including PLI expansion and custom duty adjustments, we are confident India’s TV manufacturing sector will thrive and contribute significantly to the global electronics market."

Budget 2025 expectations LIVE: Vimal Kumar, Managing Director of Best Agrolife Ltd said, “India is on its way to becoming a global leader in agriculture, with the Ministry of Agriculture projecting a record-breaking Kharif food grain production of 1647.05 LMT for 2024-25—a remarkable increase from the previous year. This achievement owes much to the unwavering support of the Indian agrochemical industry. However, the challenges persist and to sustain this momentum and bolster India’s leadership in the agriculture and agrochemical sector we need robust government policies. The 18% GST on agrochemicals makes quality crop protection expensive for farmers. Reducing it to 5% 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.

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% 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. These partnerships can help share the high discovery costs and boost domestic innovation. With institutional support, they can create a strong R&D ecosystem, reduce import dependence, and make India a leader in the global agrochemical market.”

Budget 2025 expectations LIVE: Rahul Jain, CFO of NTT DATA Payment Services India said, “The Union Budget 2025 should allocate more funds to incentivize the use of low value BHIM UPI-based payments and Rupay debit card. Bank and payment service provider, and NPCI typically incur a cost of nearly 0.25% of transaction value for processing a UPI P2M transaction. As UPI continues to rise exponentially, it is important for the payment ecosystem to invest in emerging technologies such as Artificial Intelligence (AI), face recognition payments, and blockchain. These technologies will make the digital infrastructure more robust, ensuring the safety of digital payments. To address the rising concerns of digital fraud, it is essential to create stringent mechanisms to mitigate these risks. Strong government support for the digital payment ecosystem, along with streamlined policies, can foster financial inclusion, innovation, and growth in the fintech sector. Additionally, targeted initiatives for employment generation and skill development will further bolster this growth. By focusing on these areas, the Union Budget 2025 can play a pivotal role in enhancing the digital payment landscape and ensuring a secure, inclusive, and innovative financial ecosystem.”

Budget 2025 expectations LIVE: Sandeep Chhillar, Founder and Chairman, Landmark Group said, "Supported by strong performance and sustained growth, the real estate sector is at a crucial point in its growth trajectory. The sector is pinning high hopes at the upcoming budget announcements to look into its long pending demands of industry status and single window clearance. Government must consider introducing policies and reforms, to further amplify foreign and domestic investment into the sector as it will further strengthen market sentiments. Additionally, we expect the government to consider a revision in taxation policies to offer greater benefits to first-time homebuyers as it could be a pivotal move fostering homeownership and driving broader economic growth."

Budget 2025 expectations LIVE: Anshu Sarin, CEO of 91Springboard said, “The future of India’s flex space industry lies in a synergistic partnership between the government and the private sector. The government can play a pivotal role by introducing policy frameworks that encourage innovation—such as tax incentives, streamlined regulatory approvals, and interest subvention schemes to ease capital access for operators. Integrating flex spaces into urban development projects, like smart cities, IT parks, and transport hubs, will further bolster growth and establish them as a vital component of India’s economic infrastructure. At the same time, the private sector must rise to the challenge by delivering world-class, technology-driven workspace solutions that cater to the evolving needs of businesses and professionals. Investments in sustainable practices, digital infrastructure like 5G, and enhanced customer experiences will ensure long-term viability and competitiveness. When the public and private sectors collaborate with a shared vision, we can create an ecosystem that not only supports India’s economic ambitions but also redefines how businesses operate in the modern era.”

Budget 2025 expectations LIVE: Sandeep Agarwal, India MD & Global CTO of Visionet said, “At Visionet, we believe that the Union budget for 2025-26 has to be oriented more towards the urban infrastructure and metro programs since these will be critical to the development of smart cities, facilitating connectivity and improving urban transport. At the same time, in case the ministry of finance sets aside resources for industry-academia research partnerships, that will enable game-changing developments across various fields such as medicine, education and production, thus placing India among the leaders in the global technology ecosystem. Equally important, is the government’s effort in providing manufacturing incentives to the economy with special focus on the MSME sector which would help build the country’s manufacturing capacities and foster more competitiveness in the environment. On the social front, the increase of preventive healthcare and reduction of import tariffs on advanced medical devices in particular, will not only enhance the public health status but also ensure that high quality treatment becomes affordable and accessible to many.

In addition, as an AI-driven company, we share confidence regarding the government’s initiatives aimed at AI-first leadership since those comprise support provision for Centers of Excellence, access to data, and AI upskilling programs. As AI is set to become the biggest driver of growth globally, these measures will put India in the forefront of AI research and applications. Such a target is also important with respect to skill development, more so for drivers such as IoT, blockchain and quantum computing. It is equally imperative to bolster initiatives like the Pradhan Mantri Kaushal Vikas Yojana 4.0 to keep Indians competitive in the growing digital economy. The importance of cybersecurity cannot be overemphasized. With 93% of Indian executives expecting a hike in the budgets for cybersecurity next year, we call upon the government to hasten the adoption of policies such as the National Data Governance Framework.

Another crucial component of this year’s budget will be the simplification of tax structures. For tech companies, especially those operating on tight profit margins and complex international structures, a streamlined tax filing process will be a game-changer. Clearer tax policies that support business growth and ease the compliance burden will be essential for the continued success of India’s digital economy.

Further, we believe that the sustained focus on sustainability is really important. While India continues to roll out new technology programs such as the Green Credit scheme, we are looking for more resources and tax breaks that would encourage tech firms to go green.

As a nation, the Indian technology community stands at a critical juncture since we are poised to become a leader in the technology world and the support of the government through this budget can alter that trajectory significantly. We have a positive outlook on policies that fully take advantage of the capabilities we possess while taking us toward the technologies that would define the future.”