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

Budget 2025 Income Tax Expectations Live: A State Bank of India analysis advocates modifications in how interest income is taxed. The study estimates that reducing the highest tax bracket from 30% to 25% for individuals earning Rs 15 lakh or more annually, whilst including health insurance relief of Rs 50,000 and National Pension System allowance of Rs 75,000 yearly, would result in revenue reduction between Rs 74,000 crore and Rs 1.1 lakh crore.

The analysis further projects that if the maximum rate drops to 25%, coupled with a 15% tax for earnings between Rs 10-15 lakh, plus the aforementioned health insurance and NPS concessions, the treasury would face a shortfall ranging from Rs 85,000 crore to Rs 1.2 lakh crore.

“As we approach the Union Budget, the technology sector is looking forward to measures that fuel innovation, promote digital transformation, and empower startups. Prioritizing investments in Artificial Intelligence (AI), cybersecurity, and other cutting-edge technologies will be crucial to strengthening India’s digital backbone. Simplified tax structures and increased incentives for R&D will further reinforce India’s position as a global technology leader. Additionally, ensuring access to affordable credit and simplifying compliance processes for startups can foster a thriving entrepreneurial ecosystem. We hope this year's budget will reflect a commitment to leveraging technology as a cornerstone for India’s economic growth and global competitiveness,” says Saily Lad- CEO & Founder of Volksara Techno Solutions.

“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.

"The industrial explosives sector is a cornerstone for India’s mining and infrastructure ambitions. As we look to the Union Budget 2025, we hope for significant investments in large-scale infrastructure projects, especially in sectors like railways, highways, and mining, which directly drive demand for industrial explosives.

The rising cost of raw materials, particularly ammonium nitrate, remains a pressing challenge. Rationalizing import duties or introducing tax incentives on key inputs would provide much-needed relief and enhance competitiveness.

In line with India’s sustainability agenda, the government should encourage innovation in eco-friendly explosives technologies through targeted R&D incentives. This will enable the sector to align with environmental goals while maintaining operational efficiency.

Reforms aimed at simplifying regulatory frameworks, particularly around licensing and safety compliance, will foster a more conducive business environment. With the right support, the industrial explosives industry is well-positioned to accelerate the country’s industrial and infrastructure growth, contributing significantly to the vision of a self-reliant India,” says Sanjay Choudhari, Chairman, SBL Energy.

"The 2025 Union Budget presents a crucial opportunity to strengthen India’s position in the global fashion industry. Reducing GST on apparel from 12% to 5% can enhance affordability, boost consumer demand, and drive overall industry growth. With the textile sector contributing 2.3% to GDP and employing over 45 million people, simplifying e-commerce regulations will enable businesses, particularly MSMEs and start-ups, to expand and compete more effectively. By implementing policies that support domestic manufacturing and streamline operations, India can take a significant step toward becoming a global hub for premium fashion,” says Sidhant Keshwani, Co-founder & CEO, Libas.