Continue on TOI App

Live Now

Budget 2025 Expectations Highlights: FM Sitharaman to give income tax relief to salaried taxpayers? GDP growth, record capex in focus

Budget 2025 Expectations Live Updates: Finance Minister Nirmala Sitharaman’s Union Budget 2025 speech on February 1, 2025 is being...

The Times of India | Jan 29, 2025, 22:44:08 IST

Comments

Tired of too many ads?go ad free now

22:44 (IST), Jan, 29

Budget 2025 Expectations Live: Three critical priorities likely to dominate the agenda

“As we approach India’s 2025 Budget, three critical priorities are likely to dominate the agenda. First is an expected emphasis on infrastructure. The government is poised to significantly scale up capital expenditure on roads, railways, and digital connectivity - essential investments to drive job creation and economic efficiency. A renewed focus on the green transition is equally anticipated, with clean energy projects such as solar parks and hydrogen hubs accelerating the march towards India’s ambitious Net Zero 2070 commitments.

Second, there is growing momentum for reforms in personal income taxation - a topic that has captured social media attention. Restructuring tax slabs and offering enhanced deductions could provide much-needed relief to the middle class while boosting disposable incomes and spurring consumption. Simplifying compliance through expanded digital systems and simpler extension schemes would further reduce taxpayer burdens, promoting trust and transparency.

The third major expectation revolves around revitalizing domestic manufacturing. Extended production-linked incentives for key sectors like electronics, EVs, and semiconductors could reinforce the “Make in India” initiative, while regulatory streamlining and support for emerging industries aim to strengthen supply chains and attract global investments, positioning India as a manufacturing powerhouse.

However, these ambitions must be pursued with caution. Balancing fiscal prudence with growth will be a tightrope walk as the government sustains capital investments while staying on the path of fiscal consolidation. Global risks - geopolitical tensions, commodity price volatility, and sluggish external demand - further underscore the importance of prudent planning and effective implementation,” says Vivek Agarwal, Global Policy Expert, Country Director-India, Tony Blair Institute for Global Change.

22:20 (IST), Jan, 29

Budget 2025 income tax expectations live: Top 10 expectations of salaried taxpayers

Budget 2025 income tax expectations: What will the income tax slabs and income tax rates after Union Budget 2025? Will FM Nirmala Sitharaman raise the standard deduction further under the new income tax regime and include popular exemptions like Section 80C, HRA, Section 80D? With the new income tax regime becoming the default tax regime, tax experts believe that no major changes in the old tax regime should be expected. Any rationalisation in income tax slabs, rates and changes in basic exemption limit, rebate etc. can only be expected under the new income tax regime. With that in mind, we take a look at the top 10 income tax expectations of salaried taxpayers and common man from Budget 2025:

21:48 (IST), Jan, 29

Budget 2025 Expectations Live: Time to rationalise taxation of buy-back transactions

BCCI suggests in its pre-budget memorandum that the treatment of buybacks as dividend-cum-capital loss should not be applied to buyback out of share premium or buyback out of proceeds of another issue of shares/security i.e. where retained earnings/accumulated profits are not distributed to the shareholders.

On the same principles, even in case of buyback out of retained earnings, the buyback consideration representing cost of shares should not be treated as dividend income, it adds. Read full story here:

20:48 (IST), Jan, 29

Budget 2025 Expectations Live: Empower MSMEs and startups

"As we approach the upcoming budget, my expectations are rooted in both a professional lens and a personal hope for inclusive growth. I am keen to see policies that empower businesses in the budget—especially for MSMEs and startups—with tax incentives and easier compliance norms. These are the lifeblood of our economy and key drivers of employment and innovation.

We anticipate a strong focus on digital transformation, and innovation at the same time. With more businesses shifting their marketing strategies towards data-driven solutions, we expect to see increased investments in technology that empower brands to connect with their audiences more effectively.

From a consumer perspective, measures to boost disposable income—be it through revised tax slabs or inflation control—will enhance spending power. This, in turn, can boost overall productivity and significantly aid consumer confidence, creating a ripple effect across industries. For brands, this means greater incentive to invest in brand building and marketing, driving sustained economic activity.

Additionally, as a fitness enthusiast, I’d like to see investments in wellness infrastructure and mental health initiatives too, as they directly contribute to workforce efficiency and long-term growth. Looking forward to the balanced budget that fosters growth and resilience to benefit businesses and people alike,” says Rohit Sakunia, Founder and Director, ArtE Mediatech.

19:53 (IST), Jan, 29

Budget 2025 Expectations Live: Focus on increasing employment

"The budget should focus on increasing employment and wage bill expansion for the middle income which should include increased and focussed investments in manufacturing, infrastructure and healthcare to increase employment and more income for middle class. This is critical for driving consumption which is the bedrock of our economy,” Dipanjan Basu , Co-Founder and Partner, Fireside Ventures.

19:26 (IST), Jan, 29

Budget 2025 Expectations Live: Healthcare sector wants hike in allocation

The Indian pharmaceutical and healthcare industry has high expectations from the upcoming Union Budget 2025, according to a report by CareEdge Ratings. The sector is calling for increased government support to strengthen infrastructure and drive innovation. Read full story here:

19:07 (IST), Jan, 29

Budget 2025 Expectations Live: Measures likely to boost consumption

“We anticipate this budget will largely mirror previous ones, with few significant changes expected. The government is likely to maintain its focus on fiscal consolidation, as seen in prior budgets. 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. We expect only minor adjustments this time around, rather than any major shifts. Additionally, there may be measures aimed at boosting consumption,” says Alekh Yadav, Head of Investment Products at Sanctum Wealth.

17:22 (IST), Jan, 29

Budget 2025 Expectations Live: Healthcare Industry seeks tax cuts on insurance premiums

Budget 2025 expectations: Ahead to the Union Budget 2025, industry stakeholders are expecting reforms that will propel the healthcare sector. The industry want increased government support to address critical challenges in the sector.

From boosting healthcare expenditure to expanding public health initiatives, the industry has put forth several demands. Read full story here:

Tired of too many ads?go ad free now

16:04 (IST), Jan, 29

Budget 2025 Expectations Live: Modernise ports, promote shipbuilding and develop industrial clusters

“FY 2026 Budget is a key opportunity to advance India's infrastructure, energy transition, and technological innovation. We expect continued capital investment in water supply, metro systems, and climate-resilient infrastructure, along with support for Smart Cities, Transit-Oriented Development, and affordable housing.

A stronger push for renewable energy, including offshore wind, green hydrogen, and small modular reactors (SMRs), coupled with grid expansion, viability gap funding, and single-window approvals, will accelerate the energy transition. Strengthening nuclear energy through Bharat Small Reactors (BSR) and a contingency reserve for disaster management will bolster long-term energy security.

Modernising ports, promoting shipbuilding, and developing industrial clusters for semiconductors, EV batteries, and clean technologies will boost self-reliance and export competitiveness. Coastal industrialisation and inland logistics hubs will further drive efficiency and reduce costs. Smart infrastructure, digital twins, AI-driven mining, and integrated water management will be crucial for sustainability.

Skill development, gender diversity in engineering, and incentives for public-private partnerships will help bridge workforce gaps. Enhanced climate finance, including green bonds, R&D funding for energy storage, and low-interest loans for critical projects, will support India's journey towards decarbonisation, innovation, and global leadership in engineering and consultancy,” says Amit Sharma, MD & CEO, Tata Consulting Engineers.

15:44 (IST), Jan, 29

Railway Budget 2025 Live: How India’s rail network compares to China

To better understand the challenges and opportunities ahead, it’s useful to compare Indian Railways with China's railway network. Although China’s railways currently outperform India’s in several areas, including network size and high-speed rail, India’s growing infrastructure, technological innovation, and commitment to modernization hold immense potential for narrowing this gap. Read full story here:

15:11 (IST), Jan, 29

Budget 2025 Expectations Live: Enhance financial inclusion

We expect this budget to alleviate taxes, foster economic advancement, and enhance financial inclusion. Key expectations include:

1.⁠ ⁠Incentive for new businesses and smaller firms
2.⁠ ⁠Encouragement for economic growth
3.More investment and savings deductions
4.⁠ ⁠Infrastructure development and affordable housing support

The budget should strive to address the needs of various stakeholders, including taxpayers, businesses, and investors. Hope to see initiatives that promote digitalization, financial literacy, and sustainable development. We look forward to a budget that is progressive, growth-oriented, and people-friendly, says Jyoti Bhandari, Founder and CEO, Lovak Capital.

14:38 (IST), Jan, 29

Budget 2025 Expectations Live: Stimulate innovation in digital payment ecosystems

“A comprehensive economic strategy pertaining to strengthening Digital Public Infrastructure (DPI) will be key to this budget to financial inclusion and accelerate economic growth. We anticipate resource allocation dedicated towards expanding its applications beyond current applications to vital sectors like agriculture, healthcare and education. Additionally, to further enhance financial inclusion, targeted fiscal measures, such as subsidies or tax incentives, to stimulate innovation within the fintech and digital payment ecosystems is significant. This will enable all access to credit and other essential financial services, reaching even the country's most remote corners,” says Rajat Deshpande, CEO & Co-Founder of FinBox.

14:24 (IST), Jan, 29

Budget 2025 Expectations Live: Expand tax deferment on ESOPs to boost start-ups

Employee attrition in startups remains high, estimated at over 40%. ESOPs are a key tool to counter this, offering employees wealth creation opportunities. However, given that 8-9 of every 10 startups fail, many ESOPs end up worthless. Employees also face the risk of paying perquisite tax on notional profits without actual gains.

Expanding the tax deferment policy to all DPIIT-recognized startups could enable smaller startups to compete with larger businesses for talent, creating a robust ecosystem that fuels entrepreneurship and economic growth. Concerns about tax avoidance appear unfounded, as ESOPs are non-cash perquisites with limited abuse potential, explains NASSCOM. Read full story here:

14:23 (IST), Jan, 29

Budget 2025 Expectations Live: Further bolster the tech sector

“As India advances its digital journey, the upcoming budget is a critical opportunity to further bolster the tech sector. I anticipate a strong emphasis on enhancing digital infrastructure and incentivizing transformative technologies such as AI, edge computing, and cloud solutions—key drivers of scalability, security, and innovation. These advancements will empower industries to achieve faster processing, better latency, and robust cybersecurity frameworks. Continued policy support for startups and innovation, alongside workforce skilling initiatives, will accelerate entrepreneurial growth and digital readiness. At VergeCloud, we are committed to advancing edge and cloud technologies to contribute to a secure, scalable, and inclusive digital India,” says Saurabh Bhardwaj, CEO, Verge Cloud.

13:05 (IST), Jan, 29

Budget 2025 Expectations Live: Advancing healthcare sector through innovation

“As we approach the 2025 budget, we anticipate a strong focus on advancing the healthcare sector through innovation and sustainability. With a growing demand for quality care and digital solutions, we expect the budget to prioritize investments in healthtech, AI-driven healthcare technologies, and enhanced medical infrastructure. These measures will not only improve patient outcomes but also create a more efficient, accessible healthcare system,” says Saurav Kasera, Co-Founder and CEO, Clirnet and DocTube.

12:32 (IST), Jan, 29

Budget 2025 Income Tax Expectations Live: Why standard deduction should be hiked under new tax regime

Budget 2025 Income Tax Expectations Live: Standard deduction is a flat deduction available on the salary income that helps reduce the taxable income of a taxpayer. With the new income tax regime being the default tax regime, and the government pushing for its adoption, taxpayers are looking to FM Sitharaman to increase the standard deduction limit further. Read full story here:

Tired of too many ads?go ad free now

12:10 (IST), Jan, 29

Budget 2025 Expectations Live: Ease Cash Flow for MSMEs

Three Budget Requests by Vinumon S, Founder and CEO, Thence to Ease Cash Flow for MSMEs

1.⁠ ⁠Reduce TDS Default Slab for MSMEs

The current 10% TDS on revenue assumes a Profit Before Tax (PBT) margin of 35% or higher (for Corporate Tax slab of 27.5%). However, many MSMEs operate on lower margins, making this TDS rate excessive. This leads to significant cash flow constraints, as refunds may take 1-1.5 years to process. To address this, I propose to reduce the default TDS slab for MSMEs to a lower rate (e.g., 4-5%) and tag only companies with income tax exceeding 10% of revenue during the last three years to be added to the 10% TDS bracket, rather than keeping it as the default rate

2.⁠ ⁠Allow GST Filing and Direct Collection from Clients

Currently, service providers bear the responsibility of filing returns and paying dues by the 20th of the next month, despite the GST liability resting with the customer. The client payments mostly get delayed due to the payment cycles and credit periods, causing undue burden on cash-constrained service providers. By permitting clients to account for GST and pay dues directly to tax authorities, MSMEs can avoid this cash flow challenge.

3.⁠ ⁠Streamline MSME Samadhan for Timely Dispute Resolution

The MSME Samadhan initiative aimed to facilitate MSMEs' recovery of dues from defaulting clients. However, recent experiences have been marred by significant delays, with cases often initiated only after a year of filing. Procedural issues and arbitration referrals further exacerbate these delays, denying MSMEs timely justice and alleviating cash flow constraints. To address this, I request establishing a framework to provide closure within six months of filing.

11:46 (IST), Jan, 29

Budget 2025 Income Tax Expectations Live: Increase standard deduction to Rs 1.20 lakh

"With the well-awaited Budget 2025, the salaried individuals would be expecting some relief to the tax costs they bear on the salary income. With the introduction of the New Tax Regime in recent years, in the 2024 budget, the Hon’ble Finance Minister (FM) announced the allowability of an increased standard deduction of INR 75,000 per annum for those who opt for New Tax Regime as against INR 50,000 per annum who opt for Old Tax Regime. Standard deduction was abolished in the Financial Year (FY) 2005-06 and Late Hon’ble FM, Arun Jaitley reintroduced standard deduction in the 2018 budget.

As per the 2018 budget speech, the Late Hon’ble FM mentioned “To provide relief to salaried taxpayers, I propose to allow a standard deduction of INR Rs 40,000/- instead of the present exemption regarding transport allowance and reimbursement of miscellaneous medical expenses....Apart from reducing paperwork and compliance, this will help middle-class employees even more in reducing their tax liability...”

While in Financial Year 2018-19, there were no two separate tax regimes, INR 40,000 was reintroduced as a standard deduction towards transport allowance and miscellaneous medical expenses. Owing to the inflation and increase in prices in both transport and medical since FY 2018-19 since the time standard deduction was reintroduced, the Hon’ble FM should look at bringing in parity for those opting for either the Old or the New Tax Regime and increase the standard deduction to a minimum of INR 1.20 lakhs a year. This would seem practical as any salaried taxpayer would be incurring INR 10,000 a month / INR 1.20 lakhs a year collectively towards transport and medical expenses,” says Santhosh Sivaraj, Partner, Global Employer Services, Tax & Regulatory Services, BDO India.

11:04 (IST), Jan, 29

Budget 2025 Expectations Live: Bring down interest rates on education loans

“Education is the cornerstone of progress, and it is imperative that our financial policies align with the aspirations of students and families seeking quality education. The current provisions under Section 80E, while beneficial in the past, must evolve to address the challenges of rising education costs and high-interest loans.

The government should explore measures to bring down interest rates on education loans to single digits, ideally below 6%, ensuring affordability for families from lower-income groups. Education loans should also receive parity with home loans, allowing deductions on interest payments for the entire loan tenure, rather than capping the benefit at eight years.

Additionally, it is critical to introduce targeted programs, such as scholarship initiatives linked to school performance or a Direct Benefit Transfer (DBT) model, to support students from economically weaker sections. Such initiatives will empower talented individuals to pursue higher education without financial constraints.

Lastly, investing in the development of world-class institutions within India will reduce the dependency on foreign universities, stemming the outflow of talent and capital, while fostering a robust education ecosystem domestically. These steps can ensure that education remains accessible, equitable, and a tool for societal upliftment,” says Vinesh Menon, Director General & CEO, ARISE.

10:08 (IST), Jan, 29

Budget 2025 Expectations Live: GST on health insurance premiums needs to be lowered

"The Union Budget 2025 must build on last year’s momentum to address the growing incidence of NCDs. Budget 2024 emphasized on cancer treatment with reduced customs duties on essential medicines. This initiative should be extended to include targeted therapy drugs as well as advanced cancer treatment equipment like Radiotherapy machines and Robotics most of which have ~37% in customs duties and are primarily technologies offered by Global medtech companies. Rationalizing the duty structure on these will help lower cancer treatment costs in the country.

While input costs to hospitals suffer full GST, healthcare services delivered by hospitals are covered in the GST negative list, resulting in input cost escalation to the extent of almost 8-10%. The Government should consider lowering the input GST applicable for hospitals to 5% for some of the key input services like lease rentals and allied charges, housekeeping, security and maintenance, transportation and manpower services, similar to the prevailing benefits in the education sector.

Further given the huge supply constraints on the number of beds that India needs in order to supports its population needs, an Infrastructure Linked Incentive similar to PLI should be considered, wherein the government can consider an Incentive of 50% on the cost of Capex incurred for infrastructure creation of any new hospital over 100 beds as an additional Investment allowance to be set off against the company’s tax payable. This can significantly facilitate faster capacity creation in the industry which will bode well for the patients and the population at large.

GST on health insurance premiums needs to be again lowered across the board to 5% to foster greater insurance penetration. Mandatory health insurance coverage could be implemented for companies that employ over 20 employees .

The Budget must also prioritize initiatives to boost telehealth and digital medicine to expand healthcare access and dedicate resources to preventive care, which would reduce the strain on hospitals. These measures will help pave the way for a robust and equitable healthcare system, ensuring better health for all,” says Dr. Suneeta Reddy, Managing Director, Apollo Hospitals

09:27 (IST), Jan, 29

Budget 2025 Expectations Live: Make it easy for non-residents to fulfil Indian tax obligations

Resident individuals are taxable in India on their global income, irrespective of where it was earned. In simple words, in the case of non-residents only income that accrues or arises in India (say, bank interest from a savings account in India, or rental income from a house in Mumbai), is treated as taxable in India. Thus, salary received by non-residents in a bank account overseas, for services performed outside India, is not subject to tax in India.

According to tax experts, there are several measures that can be introduced this budget to make compliance easier for the non-resident taxpayer. Read full story here:

08:38 (IST), Jan, 29

Budget 2025 Expectations Live: Nasscom calls for measures to boost deep tech and startup growth

India's leading IT industry body, Nasscom, has called for government support in the upcoming Union Budget. This includes the creation of a central deep tech fund and reforms to safe harbour rules and ESOP taxation. The IT industry is seeking these measures amid global economic headwinds and geopolitical risks. Nasscom's recommendations focus on boosting the startup ecosystem, expanding the scope of SEZ reinvestment reserves, and addressing issues under the transfer pricing regime. A key demand is extending the deferment of tax on Employee Stock Option Plans (ESOPs) to employees of all DPIIT-recognised startups. These suggestions from the IT industry body come ahead of the Union Budget for 2025-26 which will be presented on February 1, 2025. Read full story here:

08:06 (IST), Jan, 29

Budget 2025 Expectations Live: Focus will be on access to clean and green technologies

“As India launches its Carbon Credit Trading Scheme (CCTS) and embarks on its Net Zero Journey, the focus will be on access to clean and green technologies across sectors. Industries covered under CCTS are also subject to international regulations like CBAM, which attract carbon taxes on exports. One of the objectives of CCTS is to offset such taxes. Decarbonizing the sectors under CCTS would require access to clean technologies at costs that can help them stay globally competitive. The Union budget needs to prioritize establishing mechanisms to access global funds for technology innovation and promote the development of affordable and scalable clean tech solutions by domestic MSMEs. We believe that providing financial incentives to companies, such as improved Performance Linked Incentives (PLI) and promoting research and development in cleaner technologies, will be vital to meeting India’s target of achieving net-zero emissions by 2070,” says Anu Chaudhary, Partner and Global Head of ESG Consulting, Uniqus Consultech.

07:03 (IST), Jan, 29

Budget 2025 Expectations Live: Encourage savings through tax rationalisation

"With inflation showing no signs of abating within the Reserve Bank of India's target range in the near future, I believe the finance minister will implement necessary policy measures to curb price increases. This could involve reducing taxes on consumer goods such as packaged food and edible oils. This would boost household disposable income and positively impact private consumption. Furthermore, I believe the Budget should include measures to encourage savings through tax rationalisation and stimulate loan growth. A separate announcement on developing future-proof digital infrastructure for the financial sector in the era of artificial intelligence is also anticipated," says V. P. Nandakumar, MD and CEO, Manappuram Finance Ltd.

06:01 (IST), Jan, 29

Budget 2025 Expectations Live: What to expect on indirect taxes

“The Union Budget 2025 is anticipated to further establish the groundwork and provide a strategic plan for attaining the vision of a Viksit Bharat. The NDA government which assumed office in June last year, will present its Union Budget with an expected focus on measures that benefit the common man, creation of infrastructure, support employment generation and value creation. Since the implementation of GST, the Union Budget has largely been confined to amendments in the GST Act, with the crux of GST modifications and clarifications being addressed in GST Council meetings. The changes in the act flowing from the 54th and 55th GST Council meetings are expected to be included in the Union Budget,” says KPMG in India.

05:08 (IST), Jan, 29

Budget 2025 Expectations Live: Refine taxation policies for Virtual Digital Assets industry

“The Virtual Digital Asset (VDA) industry in India has immense potential to contribute to the nation’s digital economy. To fully harness this opportunity, the upcoming Budget provides a crucial moment to refine taxation policies, fostering both growth and compliance within the sector.

We propose a reduction in the Tax Deducted at Source (TDS) on VDA transactions from the current 1% to 0.01%. This adjustment would significantly ease compliance challenges and promote market transparency while ensuring the tracking and tracing of transactions and boosting tax revenues. Additionally, we recommend raising the TDS applicability threshold from INR 10,000/50,000 to INR 5,00,000. This would protect small investors and traders from undue tax burdens, ensuring fair treatment across the board.

To further support the industry’s growth, we advocate for aligning the taxation of VDA income with other asset classes and removing the current discriminatory treatment. Allowing taxpayers to set off or carry forward losses, as permitted under capital gains provisions, would establish parity and create an environment for innovation.

We are hopeful that the government will recognize the VDA industry’s potential and take steps toward balanced and progressive policies that enable its growth,” says Ashish Singhal, Co-founder, CoinSwitch.

04:52 (IST), Jan, 29

Budget 2025 Expectations Live: Expect significant investments in AI research

“The Union Budget 2025 is poised to accelerate India's position as a global AI leader. Expect significant investments in AI research, focusing on indigenous large language models and AI chip development. Comprehensive AI skilling initiatives targeting urban and tier-2/3 cities will prepare a future-ready workforce. Policies under "AI for Bharat" will likely prioritize healthcare, agriculture, and education, addressing India's unique challenges. The recently approved national AI mission, 'INDIAai,' aims to foster AI innovation and collaboration across academia, industry, and government. With evolving regulatory frameworks ensuring ethical AI use, tax incentives for AI hardware manufacturing and funding for AI startups will bolster the "Make in India" vision, propelling economic growth through technology-driven solutions,” says Bharat Chadha, Partner, Tech Consulting, Uniqus Consultech.

04:52 (IST), Jan, 29

Budget 2025 Expectations Live: Focus on addressing systemic challenges in warehousing and infrastructure sectors

“As the Union Budget 2025–26 approaches, the warehousing and infrastructure sectors find themselves at a pivotal crossroads. With India’s GDP growth forecasted at 6.5% for FY25, the emphasis must be on fortifying the nation’s economic backbone through the modernization of infrastructure and the establishment of efficient, future-ready supply chain systems. These sectors are indispensable to fostering sustained economic growth and enhancing India’s competitiveness on the global stage.

The government has demonstrated a commendable commitment to infrastructure development through visionary initiatives such as the Gati Shakti National Master Plan and the 'Make in India' campaign. These efforts, alongside investments in industrial corridors, multimodal logistics parks, and e-commerce export hubs, are catalyzing improvements in connectivity, manufacturing, and logistics efficiency, setting the stage for India to emerge as a global leader in these domains.

To build on this progress, the budget must focus on addressing systemic challenges and unlocking the sector's full potential. Simplifying land acquisition processes and expediting approvals for logistics and warehousing projects can significantly reduce lead times and enable the timely delivery of critical infrastructure. Incentives for green warehousing and sustainable building practices are essential to align with global environmental standards and future-proof the sector. Supporting the development of integrated industrial parks and export hubs tailored to MSMEs can play a transformative role in boosting India’s manufacturing and export capabilities.

By prioritizing sustainability, innovation, and infrastructure modernization, India is poised to secure its position as a global hub for manufacturing, logistics, and supply chain excellence, driving inclusive and long-term economic growth,” says Amrutesh Reddy, Director, NDR InvIT Managers.

04:52 (IST), Jan, 29

Budget 2025 Expectations Live: AI can address systemic challenges like teacher shortages

“Artificial Intelligence is a cornerstone of India's growth trajectory, with immense potential to transform education. By implementing personalised learning experiences and driving administrative efficiencies, AI can address systemic challenges like teacher shortages, quality of learning, and regional disparities in educational standards. As the technology evolves, its role in fostering equitable, high-quality education will expand, bridging divides and benefiting diverse groups. Strengthening public-private collaborations and leveraging digital public infrastructure are vital to achieving a 'Viksit Bharat' powered by accessible EdTech and AI-driven solutions,” says Jairaj Bhattahcarya, Co-Founder and CEO of ConveGenius.

04:52 (IST), Jan, 29

Budget 2025 Expectations Live: Strong possibility that more funds will be allocated to skilling initiatives

“With the Budget coming up, we believe there will be movement in the skill development and entrepreneurship industry. The Confederation of Indian Industry has proposed the formulation of a comprehensive National Employment Policy. This aims to consolidate various employment generating schemes across ministries and states that will enhance the focus on job creation. We feel there may be an increase in measures to boost female participation in the workforce through policy support for flexible work arrangements and incentives for organisations promoting gender diversity.

India’s employment and HRTech sectors will grow and this will be driven by emerging technologies. We feel there will be a 20% increase in the job market because of fields like AI, machine learning, and cybersecurity, alongside sector-specific hiring opportunities. Skills-based hiring is the need of the hour and this is why programs like Skill India Digital will play a crucial role in preparing the youth for the digital economy. What is also important is aligning the student’s skills with the requirements of the industry. We hope there will be a continued support for entrepreneurship, through increased investment in sectors like AI and IoT and the simplification of regulatory processes, will create a more conducive environment for startups, encouraging innovation and job creation.

There’s a strong possibility that more funds will be allocated to skilling initiatives, building on the government's previous efforts for 41 million individuals and the INR 4520 crore allocated to the Ministry of Skill Development and Entrepreneurship. We anticipate an increase in this year’s allocation to further boost skill development and job creation, with a greater focus on state-wise distribution of funds.

The key trends we see in 2025 will be AI driven recruitment and workforce planning along with AI tools streamlining hiring, reducing biases, and enhancing HR functions through predictive analytics and task automation. Skills based hiring will take the spotlight as employers will prioritize skills over traditional qualifications,” says Ankit Aggarwal, Founder and CEO of Unstop.

04:51 (IST), Jan, 29

Budget 2025 Expectations Live: Prioritize sustainability in water and sanitation sector

“We hope the upcoming Union Budget continues to prioritize sustainability and resilience in the water and sanitation sector, building on the progress made in previous allocations. It is essential to focus on ensuring the long-term functionality of water distribution and sanitation infrastructure by addressing operational and financial sustainability. With over 80% of piped water supply dependent on rapidly depleting groundwater, resource sustainability, particularly in agriculture, must be a priority to ensure drinking water security. Strengthening decentralized governance and institutional capacity specially at the local level is crucial to ensuring accountability and sustainable service delivery. Additionally, leveraging circular economy principles such as reusing treated wastewater for agriculture and non-potable uses and integrating treated sanitary waste for soil enhancement, can promote water quality and efficiency.

Climate resilience should remain central to these efforts, with targeted measures for adaptation and preparedness. Also, provisions for extending services to left-out beneficiaries and new households will be key to ensuring equity and inclusivity in water and sanitation access,” says Bishwadeep Ghose, Country Director for Water For People India.

23:00 (IST), Jan, 28

Budget 2025 Expectations Live: What India's startup industry wants

According to Ninad Karpe, Founder and Partner at 100X.VC, expectations for the Union Budget 2025 from India's startup industry are centered around several key areas aimed at fostering growth, innovation, and sustainability. Startups are anticipating expanded government-backed venture funds to improve access to capital. The abolition of Angel Tax was a good step, but much more needs to be done for simplification of taxation. There is a strong need for policies that promote startups in the new technologies like AI, IoT, and robotics. Establishment of specialized funds for sectors like deeptech will encourage advancements in high-tech fields. Startups are looking for measures that facilitate faster approvals and reduce bureaucratic hurdles, especially at the State level.

Pre-budget discussions should emphasize - Simplified compliance and regulatory frameworks to ease operational challenges for startups; Further tax incentives for early-stage startups and investors to stimulate funding flows; Sustained government support for generative AI and deeptech ventures, which have shown significant growth.

The Indian startup ecosystem in 2025 requires:

- Wider access to capital, including incentives for private and public investments.
- Simplified regulations and a startup-friendly taxation regime.
- Focused skilling and reskilling programs to address talent needs in advanced technologies.
- Government-backed funds targeting critical sectors like deeptech and clean energy.
- Single Point of contact for all issues – regulatory, compliance and taxation for startups.
- Consistency in IPO regulations to foster a smoother path to public listings.

22:17 (IST), Jan, 28

Budget 2025 Expectations Live: Tata Technologies calls for focus on upskilling and innovation

Finance minister Nirmala Sitharaman will table the Union Budget 2025 on February 1. Ahead of the budget, Tata Technologies emphasized the need for increased funding for upskilling initiatives aligned with Industry 4.0 to prepare a future-ready workforce. In a statement, CEO and MD Warren Harris highlighted that achieving India's $5 trillion economy vision requires innovation-driven policies, investments in emerging technologies, and the development of products “in India, for India and the world.”

Harris also stressed the importance of key growth drivers like smart manufacturing, AI, digital transformation, and software-defined vehicles (SDVs), urging government support through incentives for R&D, skill development, and infrastructure enhancement. Read full story here:

21:25 (IST), Jan, 28

Budget 2025 Expectations Live: Need to improve the Faceless Appeals Scheme

The government has taken several steps to ease litigation. Budget 2024, announced an increase in the threshold limits for filing of appeals by the Income-tax (I-T) department, plan for increasing the strength of Appellate Commissioners to reduce the backlog of appeals, and introduction of Vivad Se Vishwas Scheme to settle pending appeals. But a lot more could be done, especially to improve the Faceless Appeals Scheme and suggestions are pouring in from various trade associations and tax experts.

According to Ravikant Kamath, partner at EY-India and chairman of the direct taxation committee at BCCI several measures could be introduced to address the issues. “To begin with, the clearance of pendency should be undertaken on First-In-First-Out (FIFO) basis so that oldest matters are disposed first.” Read full story here:

19:59 (IST), Jan, 28

Budget 2025 Expectations Live: Logistics sector stands at a transformative crossroads

"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,” says Subhasish Chakraborty, Founder, Chairman, and Managing Director of DTDC Express.

19:39 (IST), Jan, 28

Budget 2025 Expectations Live: Tech industry pushes for deeptech funding

As the Union Budget 2025 approaches, the tech industry is voicing its demands for significant changes to support innovation and growth. The National Association of Software and Service Companies (Nasscom), India's apex IT industry body, has put forth a wishlist that includes the creation of a central deeptech fund and tweaks to the safe harbour rules' threshold. Read full story here:

18:59 (IST), Jan, 28

Budget 2025 Expectations Live: Position India as a global hub for the ‘creative industries’

“As we approach the Union Budget 2025, there is a unique opportunity for India to position itself as a global hub for the ‘creative industries’. With a prior budgetary allocation of Rs 400 Cr to set up a National Center of Excellence, The Indian Institute of Creative Technologies on the lines of IITs and IIMs, India has shown its commitment to building world class talent for this sector in India, for India and for the world. We hope to see this sector being addressed from a long term perspective with further allocations to enable India’s movement from primarily a back end service provider to the world to actually leading through IP’s, global products and investing in innovation in new age technologies like Gen AI, AR/VR/XR, Quantum amongst others that will drive the future of the world in this sector. Content Creators and Influencers are amongst the fastest value creators especially amongst the Gen Z’s who are the future drivers of our economy both as consumers and producers. While we have served the world through our capabilities in animation and VFX and video gaming, the need is to build the world’s largest pool of interdisciplinary talent to IP led products particular in video gaming and esports, which is an established $200Bn global industry, much larger than films, music and other forms of media and entertainment put together, and growing rapidly. To evolve this into a mainstream cultural and economic force the government must prioritize extending incentives for IP creation, reducing TDS rates on digital platforms, introducing tax benefits for esports and video gaming companies.

Content creation is another area where India holds immense potential. Policies that provide grants and subsidies for creators, along with infrastructure support for production and distribution, can amplify India’s voice in the global content economy. Unlocking the potential of Bharat by strengthening digital infrastructure in Tier 2 and Tier 3 cities, supported by initiatives like BharatNet, will empower creators from across the country to showcase their talent on the global stage.

Moreover, fostering a culture of innovation through public-private partnerships, skill development programs in game design and development, and promoting exports of video gaming IP can solidify India’s position as a leader in this space.

This budget has the opportunity to unlock the full potential of India’s creative industries including video gaming and esports (which now also has an Esports Olympics) and showcase a roadmap and commitment towards the same to attract long term global capital into this sector driving economic growth, creating jobs, and establishing India as a global leader in digital entertainment,” says Rajan Navani, Chairman of CII India @100 Council & Co-Chairman of CII National Committee on Media & Entertainment. Founder & CEO, Jetsynthesys.

17:51 (IST), Jan, 28

Budget 2025 Expectations Live: Private equity sector awaits progressive reforms

As the Union Budget 2025 draws closer, the PE community looks forward to reforms that could further simplify regulatory processes, enhance investor confidence, and align India’s investment climate with global standards. Read to know key areas where progressive changes are anticipated.

17:15 (IST), Jan, 28

Budget 2025 Expectations Live: Industry displays optimism regarding India’s growth prospects

The Federation of Indian Chambers of Commerce and Industry (FICCI) conducted a quick survey to gauge the sentiment of industry members before the Union Budget 2025-26.

According to the survey results, about 64 per cent participants expressed optimism regarding India’s growth prospects ahead of the Union Budget. Nearly 60 per cent of participants projected a GDP growth rate between 6.5 and 6.9 per cent for 2025-26. Though the numbers mark a moderation from the high growth of over 8.0 per cent witnessed in 2023-24 – it is sync with persistent headwinds on account of external factors.

15:47 (IST), Jan, 28

Budget 2025 Expectations Live: Need greater allocation of funds towards sustainable packaging

“As we approach the upcoming budget, we are optimistic about a greater allocation of funds towards sustainable packaging and manufacturing. The food packaging industry in India is at a pivotal point where innovation, sustainability, and scalability need to align. We hope to see incentives or subsidies for eco-friendly materials and infrastructure that drive compostable and biodegradable solutions.

The focus should be on fostering circular economy initiatives and strengthening supply chains for sustainable raw materials. Policy frameworks encouraging R&D in alternative packaging and tax benefits for manufacturers who adopt eco-friendly practices would propel the industry forward.

For 2025, the industry’s key requirements lie in capacity building, technological advancements, and stronger public-private collaborations. With the global shift towards sustainable consumption, we expect budgetary measures that not only boost domestic production but also position India as a leader in sustainable food packaging solutions.

We also look forward to a provision that would allow GST-free products for environmentally sustainable alternatives, providing an economically viable solution to society while supporting the growth of innovative, eco-friendly products,” says Jagdeep Hira, India Business Head at Pakka Limited.

15:15 (IST), Jan, 28

Budget 2025 Expectations Live: Priorities for infrastructure and real estate sectors

Despite the real estate sector being largely fuelled by private investments, from residential developments to industrial and commercial spaces, the infrastructure domain remains predominantly reliant on government capital expenditure. This is highlighted by the fact that from 2019 to 2023, the government's share of investment in infrastructure was a substantial 78%, in contrast to the private sector's 22%.

The modest private sector investment can be attributed to substantial capital requirements, slow land acquisition processes, and extended periods before realizing returns. Borrowing norms for traditional debt and high-interest rates further compound the challenge of meeting funding needs. To mitigate these issues, the previous budget introduced viability gap funding, although a mere Rs. 500 crores were earmarked for this purpose. For the fiscal year 2025-26, there is an expectation for a considerable increase in budgetary support to incentivize private sector engagement. Additionally, the government may introduce a framework for Variable Capital Companies as proposed in the previous budget. Read full story here:

14:36 (IST), Jan, 28

Budget 2025 Expectations Live: Strengthen the MSME ecosystem

“The Union Budget 2024-25 presented several forward-looking measures that strengthen the MSME sector and fit well into the vision of Make in India. We expect further incentives and subsidies to push payment and lending solutions, create new markets, and remove trade barriers for the forthcoming budget. This will enable MSMEs to expand globally while contributing to making India economically self-reliant and inclusive. The sector is on its way to transforming at an estimated growth rate of 6.3 crores to 7.5 crores with a CAGR of 2.5 percent. Digital adoption, sustainability, and policy reforms drive resilience and innovation. Platforms such as ONDC, which democratizes e-commerce, best represent this momentum. Since its launch in 2021, ONDC has enabled over 150 million transactions and connected over 7 lakh sellers, buyers, and service providers, creating a vibrant marketplace for small businesses to compete on a level playing field.

Although such developments continue to be made, with inflation projected to reach 5.7 percent in Q3 FY 2024-25, operational costs remain a concern. Delayed payments and inflationary pressures, as well as regulatory intricacies, also keep burdening MSMEs. Challenges like these are expected to be addressed by the budgetary steps taken to strengthen the MSME ecosystem and speed up the targets of Make in India and financial inclusion for growth in this significant sector,” says Kunal Jhunjhunwala, Founder of Airpay.

14:07 (IST), Jan, 28

Budget 2025 Expectations Live: Innovation in medical technology essential for a self-reliant India

“Innovation in medical technology, especially homegrown solutions, is essential for a self-reliant India. 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. One area requiring attention is the import duties on critical components for medical devices, as India currently relies heavily on foreign imports. 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, we can strengthen domestic production, positioning India as a global leader in med-tech innovation. 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 a right platform and proper infrastructural support.

Additionally, government backing for emerging fields like Telesurgery and Teleproctoring is crucial. These technologies can revolutionize healthcare delivery in remote regions by enabling access to expert surgical care and medical education through digital platforms. With the right policies and investment, Telesurgery can be a game changer, allowing specialists to perform surgeries remotely in underserved areas, while Teleproctoring ensures the spread of vital knowledge and expertise across the country. Building the necessary infrastructure for these technologies will ensure that quality healthcare reaches even the most isolated communities.

We firmly believe in the government's commitment to the “Make In India” vision. The future of healthcare in India depends on establishing homegrown technology as the cornerstone of progress, ensuring that world-class treatment is accessible to all,” says Sudhir Srivastava, Founder, Chairman, and CEO, SS Innovations.

13:37 (IST), Jan, 28

Budget 2025 Expectations Live: Real estate sector wants tax reliefs, industry status

With the Union Budget on the horizon, real estate industry leaders have presented their proposals, emphasising affordable housing revival, regulatory improvements, and demand stimulation. Primary requests encompass tax benefits, additional funding allocation, and the recognition of real estate with industry status. Read full story here:

13:01 (IST), Jan, 28

Budget 2025 Expectations Live: What Union Budget can do for life insurance sector

"With an aim to achieve ‘Insurance for all’ by 2045, the upcoming 2025 Union Budget holds significant promise for the life insurance sector. Few key expectations of Nitin Mehta, Chief Distribution Officer - Partnership Distribution and Head of Marketing at Bharti AXA Life Insurance revolve around:

1. Enhanced Tax Benefits: Separate Tax Benefits for Life Insurance Premiums: Currently, life insurance premiums fall under Section 80C of the Income Tax Act, which has a combined limit. There can be separate tax benefits / deduction limit specifically for life insurance premiums. This will incentivize long-term savings and encourage individuals to secure their future.

2. GST Reforms:

Reduced GST Rates: The current GST rate on life insurance premiums is 18%. Any reduction in this rate will significantly lower the cost of insurance, thereby making life insurance more affordable and accessible for buyers

Simplified GST Compliance: Streamlining GST compliance procedures will help to reduce administrative burdens on insurance companies. This can allow them to focus on product innovation and customer service.

12:32 (IST), Jan, 28

Budget 2025 Income Tax Expectations Live: Top 7 expectations of taxpayers from FM Sitharaman

Budget 2025 income tax expectations: For the initial few years there was not much uptake of the new income tax regime amongst the taxpayers. This resulted in another amendment of making the new income tax regime as the ‘default’ tax regime effective from the Financial Year (FY) 2023-24. While it is well known that new income tax regime is simplified tax regime without tax exemptions and deductions but still to make the rest of the 28% filing tax returns under old income tax regime adopt new income tax regime, the expectations are…read full story here:

12:09 (IST), Jan, 28

Budget 2025 Expectations Live: Auto industry urges GST cuts, EV incentives

With the Union Budget 2025 set to be presented on February 1, the Indian automotive sector is eagerly anticipating key policy measures that could shape its future growth. Industry leaders have voiced their expectations, highlighting the need for policy support in areas such as electrification, battery manufacturing, infrastructure, and affordability. Here’s a look at what the auto inc expects from the upcoming budget. Read full story here:

11:39 (IST), Jan, 28

Budget 2025 Expectations Live: Time to rethink set-off of losses for crypto currencies?

Bombay Chamber of Commerce and Industry in its pre-budget memorandum states that, “The government has at-least acknowledged cryptocurrencies in India by defining them as VDAs. However, a complicated tax framework has dampened the spirit of overseas investment by global exchanges in India which hampers the economic growth of India. One of the most scaling platforms of cryptocurrency exchange (Polygon, an Ethereum), has shifted most of its operations from India to other countries due to the policy uncertainty constituting the Indian crypto business transactions. Furthermore, crypto exchanges are shifting their base from India to overseas which makes investments more difficult for Indian investors due to FEMA regulations attracted in cross-border transactions.” Read full story here:

11:12 (IST), Jan, 28

Budget 2025 Expectations Live: Restore 182 days residency rule for visiting NRIs and PIOs

The Indian diaspora is the largest overseas diaspora in the world. As of May 21, 2024, there are 35.4 million non-resident Indians (NRIs) and People of Indian Origins (PIOs) living outside of India, largely in UAE and the US.

The Finance Act, 2020 made far reaching changes in determining tax residency for NRIs/PIOs who come on a visit to India. The change according to tax experts has made it complex for these individuals, nor is it fruitful for the revenue.

BCCI in its pre-budget memorandum points out that prior to an amendment by the Finance Act, 2020, Explanation 1(b) to section.6(1) of the I-T Act, provided for extended residency rule for non-resident Indians (NRIs) and Persons of Indian origin (PIOs) who being outside India come on a visit to India. Read full story here:

10:11 (IST), Jan, 28

Budget 2025 Income Tax Expectations Live: Need for some deduction-related relief in new regime

The new Income-Tax (I-T) regime, which was introduced from financial year 2020-21 for individual taxpayers, is now the default regime, unless the taxpayer opts otherwise. While the new regime has its benefits, an individual cannot claim various deductions and exemptions. From the perspective of the salaried employee, the various tax benefits that are denied are: House Rent Allowance, Leave Travel Allowance, deductions under various sections of Chapter VI-A, which include investments say to EPF which otherwise would have meant a deduction claim under section 80C. There are two deductions that tax experts state should ideally be allowed in the new regime also. Read full story here:

5 More Updates

See More Updates

Budget 2025 by Finance Minister Nirmala Sitharaman will be her record eighth budget. Last week the halwa ceremony was held in the North Block after which the officials involved in the Budget making process have gone into a quarantine to avoid any leak of Budget related information. FM Sitharaman will present Union Budget 2025 on Saturday as part of the Parliament’s Budget session which begins on January 31, 2025.

Trending

Comments (24)

Rawna KMost Interacted

488 days ago

I have no hope on FM or this Govt.. have fooled middle class for 10 years...Read More

1 Reply

Reply

Popular from Business

Oman FTA benefits kick in from today

Photostories

Why more young adults are developing heart disease: The hidden impact of sitting, stress and urban pollution

Thought of the day, inspired by the Bhagavad Gita: "The strongest people are not ruled by emotions"

Meet 5 of the world’s most colourful dog breeds

Cotton vs mulmul: Key differences and which one to choose this summer

These 5 simple exercises can help women build muscle and boost fitness without a gym

QUICK LINKS

IPL 2026 Schedule WB Class 12 Result IPL Match Results NBA News IPL Purple Cap IPL Orange Cap IPL Live Score IPL 2026 International Sports News IPL 2026 Points Table

Business

About us Terms of use Privacy policy Cookie policy

Your Privacy is Important to us

Opt out of the sale or sharing of personal information

Budget 2025 Expectations Highlights: FM Sitharaman to give income tax relief to salaried taxpayers? GDP growth, record capex in focus

The Indian pharmaceutical and healthcare industry has high expectations from the upcoming Union Budget 2025, according to a report by CareEdge Ratings. The sector is calling for increased government support to strengthen infrastructure and drive innovation. Read full story here:

As the Union Budget 2025 draws closer, the PE community looks forward to reforms that could further simplify regulatory processes, enhance investor confidence, and align India’s investment climate with global standards. Read to know key areas where progressive changes are anticipated.

Comments (24)

Popular from Business

Photostories

TOP TRENDS