Budget 2025 Expectations Highlights: Income tax changes on the cards? All eyes on FM Nirmala Sitharaman's Union Budget

“As the 2025-2026 Budget approaches, we request that Finance Minister Nirmala Sitharaman extend the rule that businesses must pay MSMEs within 45 days of purchasing their products and services. In addition to addressing the delayed payments that MSMEs in the country face, this would ensure cash flow for small and medium-sized firms. We also look forward to simplifying tax processes for the sector. There should also be incentive-linked plans for MSMEs that encourage digitization to speed up small business operations. With more money available, MSMEs can invest in processes such as digitizing the HR process and incorporating cutting-edge technologies into their enterprises, benefiting both the companies and the nation,” says Dhwani Mehta, CEO, OpportuneHR.

“The Union Budget 2025 is a brilliant opportunity to prioritize eye care as a critical component of India's healthcare framework. The upcoming budget must focus on lowering taxes on medical equipment and increasing subsidies for advanced procedures for diseases like diabetic retinopathy and glaucoma. We also look forward to expanding insurance coverage for eye care under schemes like Ayushman Bharat to make costly eye care surgeries accessible to all. Additionally, we look forward to Finance Minister Nirmala Sitharaman allocating more funds for mobile eye clinics and public-private partnerships. This will also help bring state-of-the-art technology like OCT and AI-powered telemedicine to rural and underserved areas. Moreover, investing in awareness campaigns, workforce training, and R&D in affordable eye care solutions will improve people's vision and unlock significant economic potential,” says Dr. Jay Goyal, Senior Eye Surgeon and Director, Surya Eye Hospital.

“We approach this Budget with minimal expectations but hope to see measures that support ease of doing business, which is currently impacting growth. Tax clarity is essential to ensure a stable and predictable business environment, especially as global competitors, like the US, implement tax cuts, which could impact India's competitiveness. Simplifying GST compliance would ease the burden on businesses, promote efficiency, and reduce operational hurdles. Together, these measures can enhance India's appeal as a business destination and support economic growth. Considering key elections in the next two years, we anticipate this to be a rural-focused, agriculture-supportive Budget. Higher allocations for government policies, such as water and infrastructure development, are expected. There could also be minor support for exporters, but overall, expectations remain modest,” says Arpit Jain, Joint MD, Arihant Capital.

“Looking ahead to the Union Budget 2025-26, a more holistic and strategic approach is essential for the continued growth of India’s EV sector. While initiatives like the PM E-Drive are commendable, the sector now requires further support in key areas such as infrastructure development and financing solutions. The upcoming budget should prioritize creating a conducive ecosystem that not only supports the adoption of electric vehicles but also makes them a viable and accessible option for consumers. These measures will be crucial in driving the next phase of EV uptake across the country,” says Kunal Mundra, CEO & Co-founder, Electrifi Mobility.

“Budget 2025 is expected to focus on boosting investments by enhancing tax-saving opportunities. Increasing the 80C limit from ₹1.5 lakh to ₹2.5 lakh could significantly encourage investments in PPF, ELSS, and other tax-saving instruments, driving long-term financial planning. Similarly, increasing the 80CCD(1B) deduction for NPS contributions could motivate more individuals to invest in retirement-focused instruments. These changes would ease the tax burden and foster a culture of disciplined savings and investments,” says Chakravarthy V., Co-founder & Executive Director, Prime Wealth Finserv Pvt. Ltd.

“As India strides toward its ambitious goal of becoming a $7 trillion economy by 2030, the logistics sector is poised to play a pivotal role in driving this transformation. The government’s record-breaking ₹11 lakh crore infrastructure investment has laid a robust foundation with initiatives like multi-modal transport systems, dedicated freight corridors, and enhanced connectivity. The next critical step is translating these efforts into a globally competitive logistics ecosystem. This requires an intensified focus on technology integration. Advanced supply chain solutions powered by AI can boost efficiency, optimize resources, and build more resilient networks.

The logistics industry is also a lifeline for MSMEs, the backbone of India’s economy, enabling them to reach markets efficiently and scale operations domestically and globally. Additionally, the rapid rise of e-commerce and quick commerce has further underscored the need for robust, tech-enabled logistics solutions to meet consumer expectations for faster deliveries and seamless experiences. Strengthening the last-mile delivery network and adopting predictive analytics for inventory and demand planning are crucial to sustaining this growth. Green logistics practices, such as sustainable last-mile delivery systems and LNG-fuelled trucking, offer opportunities to minimize the sector’s carbon footprint. As we approach the Union Budget, it is imperative to introduce measures that incentivize innovation, promote digitalization, and strengthen the foundation of India’s commerce. These initiatives will not only position the logistics sector as a key growth driver but also establish India as a global leader in supply chain excellence,” says Ashvini Jakhar, Founder and CEO, Prozo.

"India’s healthcare sector is poised for a transformative journey, with an opportunity to establish itself as a global leader in accessibility, affordability, and innovation. With a population exceeding 1.4 billion, the vision of creating a healthcare system that addresses the diverse needs of this vast demographic reflects an inspiring blend of strategic planning, investment, and forward-thinking policy initiatives. The Union Budget 2025 provides a valuable occasion to strengthen the sector and foster a resilient, equitable, and future-ready healthcare ecosystem.

At present, healthcare expenditure accounts for 2.5% of India’s GDP, highlighting an encouraging scope for expansion. Increasing this allocation can further enhance the development of healthcare infrastructure, support groundbreaking innovations, and improve affordability. Such investments will ensure that advanced and quality healthcare services are accessible to communities across both urban and rural regions, contributing to an inclusive and thriving ecosystem.

Building on this foundation, government initiatives such as the ‘Ayushman Bharat Digital Health Mission’ and the ‘National Tele Mental Health Programme’ have laid the groundwork for transformative progress. These efforts, complemented by measures like reduced customs duties on cancer treatment drugs and diagnostic equipment, reflect a proactive commitment to fostering accessibility and affordability. A critical area for growth is India’s reliance on imported medical technologies. This dependency significantly inflates healthcare costs, making advanced treatments and equipment inaccessible to many. The Union Budget 2025 offers an opportunity to amplify these advancements, nurturing innovation and inclusivity while driving impactful growth across the healthcare landscape.

The advancement of medical technology within India is another area brimming with promise. Promoting investments in research and development (R&D) and supporting domestic innovation can accelerate the creation of cost-effective, advanced medical technologies. Such initiatives align with the broader ‘Make-in-India’ vision, reinforcing India’s position as a hub for cutting-edge healthcare solutions and contributing to greater self-reliance in the sector. These efforts also complement the broader goal of fostering affordability, ensuring that cutting-edge treatments are within reach for all.

Seamlessly integrating innovation with accessibility, the evolution of India’s health insurance system presents a significant avenue for strengthening healthcare delivery. Expanding health insurance programs and fostering wider participation extend financial protection to a larger demographic, making quality healthcare services more inclusive. Such initiatives, coupled with the simplification of administrative processes, ensure that healthcare access remains smooth and uninterrupted.

Equally vital is a renewed focus on the well-being of healthcare professionals who dedicate themselves to providing care. Empowering healthcare facilities with enhanced infrastructure and resources fosters an environment that supports their critical contributions. Recognising and uplifting the role of these professionals not only strengthens the healthcare system but also inspires confidence and dignity across the sector. Through a thoughtful blend of strategic investments, innovation, and inclusivity, India’s healthcare sector stands on the brink of unparalleled progress, promising a healthier and more equitable future for all,” says Dr. Manisha Bobade, CEO, K J Somaiya Hospital & Research Centre

“I would like to emphasize on the need for increased investment in healthcare infrastructure. This could involve upgrading government hospital facilities, acquiring cutting-edge equipment and expanding specialized eye care centers. We also need to enhance funding for improving safety for medical staff, doctors and patients so that it improves overall functioning of the healthcare system. There needs to be a focus on increasing support research and innovations in the healthcare sector. As a professional dedicated to the field of ophthalmology, there is a need to drive innovations in eye care treatments, surgical procedures, and the development of new technologies. This will help improve patient outcomes as well. The government should also explore providing incentives for Public Eye Health Programs.”

“There are several healthcare institutes that partner with NGOs to improve preventive and curative care for the eye health sector. The government should thereby also look at providing incentives to such institutes and NGOs. Surgical simulators are now being used for training post-graduate medical professionals. These simulators, although very expensive are highly effective in training professionals. Thus, the government could look at subsidizing this technology for post-graduate training institutes. This will benefit future generations of doctors, especially surgeons in the long run. Currently, there are several eye-care technology and machinery being imported from other nations. The government should thereby look at waving off duties on such sight saving equipment or provide incentives to manufacture such technology in the country,” says Dr. Aditya Kelkar, Director; National Institute of Ophthalmology (NIO), Pune.

“As we look ahead to the Union Budget 2025-26, The Body Shop India remains hopeful for policies that will uplift the retail sector especially fostering Youth employment, sustainable practices and inclusivity in hiring. Private consumption is the cornerstone of retail growth and we look forward for government policies to open up the purse strings of consumers through higher tax exemptions slabs and reducing GST on essential personal care products could provide much-needed relief to the middle class. This would not only boost disposable incomes but also help consumers uplift their ability to purchase high-quality, ethical products that align with consumers’ growing preference for quality & sustainable choices.

We also urge the government to prioritize incentives for green initiatives, such as incentives to retailers for adopting sustainable packaging and energy-efficient retail operations. Furthermore, expediting the implementation of a National Retail Policy is critical. Simplifying compliance processes, improving logistics in Tier 2 and Tier 3 cities, driving ease of business & providing targeted incentives for small retailers can create a more level playing field.

Investments in Retail skill development programs, especially in adopting digital marketing and technology are also essential to building a future-ready retail sector, capable of meeting evolving consumer expectations.

A progressive budget that addresses these priorities can stimulate private consumption, strengthen retail, and create a resilient ecosystem that balances economic growth with environmental and social responsibility,” says Shriti Malhotra, Group CEO, Quest Retail.

According to Shalya Gupta, CEO, Credifin Limited, it is imperative that Government puts in place an enabling ecosystem for EV adoption. This includes green finance initiatives and incentivising EV purchase.

Climate change is a pressing concern, and the finance sector has a role to play. We look forward to:

* Green Bond Market Expansion: Policies to promote the issuance and adoption of green bonds for funding EV infrastructure and sustainable projects.
* Carbon Credit Trading Framework: Introduction of frameworks that reward companies investing in eco-friendly initiatives.

"The Union Budget 2025 is a pivotal opportunity to redefine India’s healthcare landscape, positioning the nation as a leader in accessible and innovative care. With over 1.4 billion people, the healthcare system must rise to meet the needs of an aging and expanding population. Raising healthcare spending to 5% of GDP is imperative to address systemic shortcomings and ensure high-quality, affordable care, particularly in rural and semi-urban regions.

To bridge the rural-urban healthcare divide, a multifaceted approach is essential. Strategic investments must prioritise upgrades to district hospitals, enhancing primary care networks, and expanding secondary and tertiary facilities to foster a more inclusive healthcare system. Tax reforms, another cornerstone of this transformation, are equally critical. While essential medical services and life-saving drugs are GST-exempt, rationalising GST on high-end medical equipment and diagnostics and recalibrating customs duties on advanced technologies can reduce costs, enhance affordability, and promote domestic manufacturing under the ‘Atmanirbhar Bharat’ agenda.

Simultaneously, private-sector involvement can catalyse decentralisation and equity in healthcare delivery. Targeted tax incentives for investments in underserved regions could spur the construction of world-class facilities, while incentives for healthcare start-ups and rethinking capital gains taxes would ignite innovation. These measures can attract investments in research, technology, and care delivery, driving a paradigm shift in India’s healthcare ecosystem.

As the Budget outlines transformative strategies, it must also embrace emerging healthcare trends to address pressing challenges. Artificial Intelligence (AI) holds the potential to revolutionize diagnostics, personalised treatment, and predictive analytics, significantly enhancing patient outcomes. Investment in AI-powered healthcare solutions, such as early disease detection, automated imaging analysis, and virtual health assistants, can improve efficiency and reduce costs, making advanced care more accessible.

Cancer care represents another urgent frontier demanding prioritisation. Increased funding for oncology research, early detection programs, and affordable treatment options, along with establishing state-of-the-art cancer centres, can effectively tackle the rising cancer burden in India.

Parallelly, the growing population of senior citizens underscores the necessity of geriatric care. Developing specialised services, including long-term care facilities, home-based care, and chronic disease management programs, will ensure dignity and quality of life for our elderly.

India’s aspirations must extend beyond being the "world’s pharmacy" to becoming a global leader in healthcare innovation. Investments in medical education, skilling, and research are crucial to addressing workforce shortages and driving scientific advancements. Expanding high-end research institutes can position India as a hub for cutting-edge diagnostics and improved patient outcomes. Public-private partnerships must be leveraged to extend telemedicine services and strengthen primary healthcare access, while robust skilling initiatives prepare a workforce for modern healthcare complexities.

Equally important is embedding sustainability as a cornerstone of healthcare reforms. Climate-conscious policies, such as green hospitals and renewable energy-powered facilities, not only align with India’s climate action goals but also set a global benchmark for integrating environmental responsibility into patient care.
The Union Budget 2025 is more than an economic blueprint; it is a visionary roadmap for a healthier, more resilient, and equitable India. By seamlessly aligning tax reforms, infrastructure investments, and forward-thinking policies, India can solidify its position as a global leader in healthcare innovation and excellence,” says Azad Moopen, Founder and Chairman, Aster DM Healthcare.

"The IT sector has high pre-budget expectations centered on policies that drive innovation, growth, and job creation. Industry leaders anticipate incentives for adopting emerging technologies like AI, quantum computing, and blockchain, alongside tax relief for R&D investments. Strengthened support for skilling programs, particularly in AI and cybersecurity, is crucial to bridging talent gaps. Expanding digital infrastructure, promoting startups, and incentivizing global delivery models could position India as a tech innovation hub. The sector also seeks clarity on data privacy regulations and tax structures, ensuring ease of business and competitiveness. A tech-forward budget could catalyze the sector's role in economic growth."

"As we look to the Union Budget 2025-26, the IT industry anticipates measures to further strengthen India's digital infrastructure, particularly through tax concessions for the data centre sector. Given the critical role data centres play in enabling digital services and advancing the 'Digital India' vision, such incentives will not only attract foreign investments but also generate employment and fuel a new growth trajectory for the sector. These reforms will position India as a global leader in digital infrastructure, driving innovation and economic progress,” says Neeti Sharma, CEO, TeamLease Digital.

"The upcoming Union Budget holds immense potential to accelerate growth in the electronics and smartphone manufacturing industries. The growing aspirations of India’s youth, driven by their pursuit of innovation, entrepreneurship, and a digital-first future, underscore the urgent need for robust cybersecurity measures and cutting-edge 5G infrastructure. Prioritizing investments in 5G infrastructure and cybersecurity will further support Digital India’s growth by enabling innovation, safeguarding critical systems, and unlocking opportunities across sectors like healthcare and smart cities.”

“Expanding the PLI program further to increase the allocation for semiconductors, high-capacity batteries, and display technologies will strengthen India’s value chain, reduce imports, and enhance our global competitiveness. Focused R&D grants for emerging technologies such as AI and IoT will be a much-needed boost – a significant step towards making India a Vishwaguru in the electronics ecosystem,” says Arijeet Talapatra, CEO, itel India.

"As we approach Union Budget 2025, we look forward to continued emphasis on strengthening India’s healthcare system, with a particular focus on regions where access to primary and emergency care remains a challenge. By enhancing primary healthcare infrastructure and expanding affordable services, we can ensure better outcomes for underserved communities. Targeted investments in rural healthcare and robust public health programs will play a pivotal role.”

“We commend the government’s initiatives, such as Ayushman Bharat and the National Health Mission, which have significantly enhanced access to healthcare and reduced disparities. Building on this strong foundation, expanding these programs and incorporating mental health as a key component of primary care can further strengthen the healthcare framework. Mental well-being is integral to a healthier society, and community-led initiatives, coupled with awareness programs, can help address stigma and extend support to those in need, especially in rural areas.”

“Additionally, greater inclusion of individuals with disabilities across healthcare, education, and employment ecosystems will ensure equal opportunities for all, fostering a more equitable and prosperous society. Investing in these areas not only improves lives but also strengthens our nation’s collective progress,” says Shweta Rawat, Founder & Chairperson, The Hans Foundation.

“The Union Budget 2025 is a critical opportunity to address key challenges in India’s EV transition. To achieve the ambitious target of 30% EV penetration by 2030, it’s crucial to tackle both manufacturing and consumer-centric challenges.”

“Simplifying the GST structure with a uniform 5% tax across EVs, components, and charging infrastructure is essential to reducing costs and fostering growth. Additionally, resolving the inverted GST structure on raw materials will ease working capital pressures and encourage sustainable manufacturing. Performance-linked incentives for battery innovation and indigenous component manufacturing can further strengthen India’s Make-in-India push, positioning the country as a global leader in EV technology. On the consumer front, initiatives like reduced interest rates on EV loans and targeted subsidies can make electric vehicles more accessible, bridging the affordability gap,” says Dinkar Agrawal, Founder, CTO & COO, Oben Electric.

Ram Sellaratnam, Group CEO and Managing Director, iBUS Network says, “As India progresses towards adopting next-generation AI technologies, the digital infrastructure sector—comprising ISPs, VNOs, MNOs, data centers, and fiber players—remains critical to the nation’s development. The upcoming budget presents an opportunity to address key challenges and strengthen this sector. First, it is essential to implement enforceable Right of Way (ROW) regulations in public spaces to protect infrastructure assets, ensuring that installations are secure and accessible.”

“Additionally, strengthening compliance with the National Building Code will help ensure that all new constructions are smart buildings, enhancing safety and service delivery for citizens. Furthermore, developing comprehensive policies to safeguard the private digital data assets of individual users in India is crucial for building trust in digital platforms. Lastly, encouraging and incentivizing the development and manufacturing of digital radio intermediary systems will support local innovation and enhance communication infrastructure across the nation. These measures are vital for fostering a robust digital ecosystem that can drive economic growth and improve quality of life for all citizens.”

“We believe that the Union Budget 2025-26 can play a key role in addressing gaps in the education sector. While the FY 2024-25 allocation of ₹73,498 crore for School Education was a positive move, there are still significant gaps, especially in rural and semi-urban areas, where access to high-speed internet, digital devices, and smart classrooms is still limited. We urge the government to dedicate funds to improve infrastructure, like high-speed internet and digital tools, in schools. It is very important to invest in teacher training programs that focus on new technologies like AI, coding, and robotics. This will help educators adapt to the future needs of students. Investments in AI, STEM, and robotics labs in schools will support hands-on learning and innovation. Investing in STEM education will equip students with the skills they need for future jobs, encouraging problem-solving and creativity. This is a key step in achieving the goals of the National Education Policy (NEP) 2020, especially the inclusion of AI, coding, and robotics in the curriculum.”

“The drop in student enrolment by 37 lakh shows the need for more support for underprivileged students. We suggest offering more scholarships to help students from disadvantaged backgrounds access education. Providing financial support will help ensure that students from all communities have equal access to opportunities., can help increase enrolment and participation. We urge the government to support Ed-Tech companies that offer affordable, AI-based, and adaptive learning tools for underserved areas. More funding for research in AI, robotics, and IoT can help drive new ideas and innovation,” says Anurag Gupta, Co-Founder of STEMROBO Technologies.

“The coworking industry has become more relevant than ever with the demand surging significantly in recent times owing to its affordable pricing options and flexible work culture. It has emerged as a pivotal force in the modern workspace landscape, that cater to diverse business needs. Taking into consideration the popularity of hybrid working, we have a few expectations around GST and taxation from the upcoming Union Budget that can further accelerate growth of this sector. Moreover, ensuring the availability of institutional finance at competitive rates is vital for the growth of the coworking sector as it would enable coworking firms to scale efficiently and making them more attractive to businesses of all sizes. We also believe that a significant push to infrastructure and single-window clearance system will help in faster establishment of coworking spaces in non-metro cities as well.”

“Some of the measures that we look forward to include lower GST rate for small-scale coworking clients as this will significantly help the coworking industry boost their footprints by attracting small start-ups to be part of the industry as well as increase the revenue collection to the government. Input tax credit under GST is an important issue that concerns coworking sector. Hence, we expect the budget would enable coworking firms to claim input credit on work contract and construction services supplied so that it is passed on to companies who lease out space for coworking and thereby reduce their overall costs. There are few other aspects too that needs attention. Typically stamp and registration duties are high and since both the landlord as well as client agreements are subject to these charges, hence, either concession in such stamp duty rates or allowing twice the duty paid as expenditure under income tax will encourage even the small agreements to get registered. An important requirement for the coworking industry has been Lower/Concessional rate of TDS which will improve the working capital. Another measure that could be announced to intensify growth of the coworking sector is a further and continued extension of tax holiday for start-ups as they would be motivated to scale up their business and enhance investment.”

“Coworking spaces have emerged as the defining feature of India's rapidly evolving commercial real estate market, reflecting the broader shift toward work culture, flexibility, collaboration, innovation, and sustainability. Hence, the coworking sector, is expecting continued improvement in the ease of doing business and a series of both financial and non-financial incentives which will play an important role in the growth of the industry. Coworking businesses will also continue to attract investment due to the sector's scalability and growth potential. The share of coworking in the overall leasing of flex space is set to grow further and play a pivotal role in 2025 and beyond,” says Manas Mehrotra, Founder, 315Work Avenue, a coworking player.

“The Union Budget 2025 is a chance to address critical bottlenecks for NBFCs offering short-term loans to salaried employees. Reducing the SARFAESI Act threshold to ₹1 lakh will significantly enhance the recovery process for smaller-ticket loans, ensuring better cash flow for lenders and faster access to credit for borrowers. Additionally, a 10% TDS exemption on interest income will free up liquidity, enabling NBFCs to provide more affordable and seamless lending experiences. As salaried professionals increasingly rely on short-term credit for emergencies and lifestyle needs, these reforms will empower players like us to continue driving financial inclusion while maintaining sustainable growth,” says Kaushik Chatterjee, Founder & CEO, lendingplate (UCIL).

“As we approach Budget 2025, we are hopeful that the government will introduce policies that prioritize digital infrastructure, skill development, and inclusive learning. Increased allocations for technology integration in schools, tax incentives for EdTech platforms, and support for teacher training initiatives can drive innovation and accessibility. With a growing focus on future-ready skills, we anticipate measures that strengthen collaboration between industry and academia, enabling India to nurture a workforce equipped for the challenges of tomorrow. Additionally, to meet ambitious Gross Enrollment Ratio (GER) targets, policies must address outdated infrastructure, expand access to reliable internet, and equip both students and educators with modern tools and training. A comprehensive strategy that prioritizes accessibility and learning outcomes is essential to nurture a workforce ready to excel in an increasingly digital and competitive global economy,” says Aarul Malaviya, Founder, Zamit.

"As we approach the Union Budget 2025-26, there is a strong need for measures that address the evolving dynamics of India’s retail sector, which witnessed a 7% surge during the recent festive season, with food and grocery leading at 14%. Retailers are eagerly looking forward to the faster implementation of the National Retail Policy, which can provide a structured framework to support growth. Additionally, initiatives such as low-interest financing and targeted tax breaks could ease operational challenges, especially for MSMEs. Promoting technology adoption in retail is equally crucial to help traditional players compete effectively with the growing quick commerce segment. A budget with these measures can unlock significant potential, driving sustained growth and innovation in the retail ecosystem,” says Rohan Bhargava, Co-Founder of CashKaro and EarnKaro.

According to Rajat Agrawal, CEO, Barista Coffee, the restaurant industry, which has been long waiting at the doors without much being granted to the kitty, would expect the following as part of this budget:

● A single-window policy for faster restaurant openings, uniform licensing across states, and seamless renewals;
● Availability of input tax credit on Opex and capital spending will assist in passing on GST benefits to customers, and reducing operational expenses will encourage the opening of new restaurants, thereby creating more jobs and revenue;
● Easy permissions & licensing for 24*7 operating formats;
● Incentives based on business scale and workforce deployed;
● Relaxed lending policy for retailers to have credit availability basis scale and without collateral.

"As we approach Union Budget 2025, we are optimistic about continued government focus on electronics and semiconductor sectors. Previous budgets have shown strong commitment to semiconductor development through increased funding for the Ministry of Electronics and Information Technology (MeitY), highlighting India’s push for self-reliance and global competitiveness. The mobile accessory manufacturing sector, heavily reliant on semiconductors, stands to benefit greatly from enhanced domestic production. By reducing dependency on imports, a robust semiconductor ecosystem can streamline supply chains, lower costs, and foster innovation in products like power banks, chargers, and cables.

“We anticipate that the upcoming budget will strengthen initiatives like the Production Linked Incentive (PLI) scheme and skill development programs. These steps will accelerate India’s technological evolution, generate employment, and boost exports, propelling the country closer to its goal of becoming a global electronics manufacturing hub. India is poised for an electronics revolution, and the government’s efforts to equip the workforce with advanced skills and promote domestic production are critical,” says Ashok Rajpal, Managing Director, Ambrane India.

“As we approach the 2025 Union Budget, we are optimistic about continued government investment in infrastructure, multimodal logistics hubs, and digital platforms. The priorities of the Amrit Kaal plan are vital for creating an efficient logistics ecosystem that reduces costs, enhances supply chain efficiency, and drives India’s global competitiveness. We also hope to see greater focus on streamlining trade processes and promoting green logistics to accelerate sustainable growth.” Kami Viswanathan, President, FedEx, Middle East, India Subcontinent, and Africa (MEISA).

“Union Budget 2025 holds the potential to accelerate India’s drone sector toward global leadership. With the market poised to generate significant economic value and employment opportunities, strategic government support can further enhance growth. Building on the ₹57 crore allocated under the PLI scheme in 2024, increasing this to ₹100-120 crore will boost indigenous production and innovation, particularly in defense, surveillance, and logistics.

Logistics drones play a critical role in ensuring rapid payload delivery and precise logistical support in routine and hostile environments, revolutionizing supply chains across healthcare, disaster relief, and defense. Armed UAVs, or attack drones, ensure precision strikes on high-value targets, reducing collateral damage, minimizing personnel risks, and maintaining operational secrecy.

To foster advanced drone technologies, a dedicated ₹300 crore R&D fund is recommended to focus on AI-enabled and dual-use drones, driving breakthroughs in autonomous navigation GPS denied and operational efficiency. Simplifying regulations, especially for BVLOS (Beyond Visual Line of Sight) operations, will further enable widespread adoption across industries.

For self-reliance and global competitiveness, introducing tax incentives and custom duty waivers on critical components is essential. Additionally, a proposed ₹2,000-3,000 crore allocation for defense procurement will facilitate large-scale drone deployment for border surveillance, logistics, and national security.

These measures, along with a focus on innovation, manufacturing, and streamlined regulations, can position India as a global drone hub by 2030, creating a robust ecosystem for economic growth and international expansion,” says Arpan Ghosh, Founder & Director at Gamma Rotors Pvt. Ltd.

Paroma Chatterjee, CEO, Revolut India said, "As we eagerly await the upcoming budget, our industry has a few key expectations that can propel India's financial sector to new heights. To begin with, we urge the government to dedicate investment towards building the next generation of digital public infrastructure. This includes investing in the expansion of the RBI's Unified Lending Interface to streamline credit access, and its Innovation Hub, for areas like AI, machine learning, and blockchain. By doing so, the fintech industry can unlock innovative solutions, foster growth in the space, and further strengthen the way the industry functions. Investments in creating cross-sectoral sandboxes by the RBI can act as a common experimentation ground for products, enabling fintech companies to test and refine solutions that cut across regulatory spaces, such as digital identity, cybersecurity, and data analytics.

As Indians increase investing in stock markets abroad, reviewing LRS limits would be welcome. Unblocking certain limits for prepaid issuers to invest in stock markets and mutual funds can provide more platform alternatives to consumers. Furthermore, prioritising the adoption of digital solutions can help attain the objectives outlined in the National Strategy for Financial Inclusion (2019-24). Other focus areas can include digital literacy, financial literacy, and last-mile financial service delivery. By supporting initiatives that enhance digital financial literacy, we can create a more inclusive and digitally empowered financial ecosystem.

By addressing these key areas, the government can create a conducive environment for the fintech industry to thrive, driving innovation, financial inclusion, and economic growth."

“Enhanced budgetary allocations are necessary to achieve the 2030 target of 500 GW renewable energy capacity and net-zero carbon emissions by 2070. This includes prioritizing emerging sectors like green hydrogen with targeted incentives, supporting MSMEs and domestic manufacturers to boost sustainability, and increasing R&D investments in green hydrogen, battery energy storage systems (BESS), and other sustainable solutions. Allocating more funds for rooftop solar, offshore wind projects, and BESS will accelerate the green transition and create sustainable job opportunities.

Reducing GST on hydrogen and renewable energy equipment is crucial to enhancing affordability. Accelerating the FAME III programme will strengthen the green transportation network. Additionally, introducing targeted training programmes and capability-building initiatives will address the talent gap in green energy sectors. Providing interest support for green projects and deposits, along with driving digital transformation in renewable energy, will further improve efficiency and foster innovation,” says Subburathinam P, Chief Operating Officer, TeamLease Services.

“As the country prepares for the Union Budget 2025, the real estate sector is hopeful for progressive reforms that could benefit homebuyers and the industry. This year, the demands go beyond the usual expectation of single-window clearance and industry status, which could unlock financial advantages and streamline project approvals. The government should raise the deduction limit for interest payment on home loans from the existing Rs 2 lakh a year to Rs 5 lakh, which will add momentum to the housing sector. For a large section of the population, affordability remains the biggest challenge and hence there should also be expansion in the definition of affordable housing as this would expand the benefits for homebuyers and hence boost the end-user demand.

There is a strong case for interest subsidy for first-time homebuyers as this will boost sales in the real estate sector. We also urge the government to implement tax reliefs in terms of reduction in GST rate along with an input tax credit on under-construction properties. We would also like to see announcements to enhance ease of doing business for the developers to create an overall positive climate for real estate investment. These initiatives would not only drive growth in the real estate sector but also stimulate demand around 250 ancillary industries, thereby boosting job creation across these sectors. We also hope that the government will continue to focus on more infrastructure development as it will help drive housing demand across the country. Overall, the real estate sector plays a pivotal role in the economy, contributing significantly to employment and GDP. Hence, the upcoming budget should introduce measures that will bolster this economic context. With NITI Aayog projecting the sector’s market size to hit $1 trillion by 2030, it is imperative for the government to address these key issues, thereby creating a more efficient and investor-friendly environment,” says Ramani Sastri - Chairman & MD, Sterling Developers Pvt. Ltd.

“As the Union Budget approaches, we anticipate policy measures that recognize the pivotal role of NBFCs in driving infrastructure growth. Infrastructure financing has been a core area where NBFCs can make significant contributions, given our flexibility in underwriting and customized solutions.

To this end, we expect the government to announce long-term funding mechanisms or partial credit enhancement programs, tailored specifically for NBFCs. Measures to reduce the cost of borrowing, such as extending the benefit of tax-free infrastructure bonds to NBFCs, can further boost our ability to channel credit into critical sectors like transportation, energy, and urban development. We also urge the government to streamline regulatory guidelines to reduce compliance costs and encourage public-private partnerships.

This year’s Budget should emphasize enhancing credit flows while reducing operational barriers, enabling NBFCs to contribute meaningfully to India’s vision to become a fast growing economy,” says Vikkas Goyal, Founder, Rupee112.

“As we approach the Union Budget 2025, we expect a lot of transformational initiatives that could positively change India's travel sector. Greater investments in infrastructure would make traveling so much easier, and with it, India's connectivity to the urban as well as the rural destinations will also be greatly enhanced. Reforms in taxation targeted for the travel and tourism industry would fasten growth with increased domestic as well as international tourism. Incentives for sustainable tourism are also vital, as it would make India the first country to lead eco-friendly travel while retaining our rich cultural heritage. Policies that promote travel within the country will also help local economies and inculcate a sense of community and exploration in citizens.

“The travel sector requires support for start-ups, as innovative businesses lead to new trends and enhance the travel experience as a whole. The concentration of the tourism human resource upon the skill enhancement and training of these employees can also develop empowerment along with the deliverance of high-quality services. This would develop a stronger stand of India among the globe's travel destinations. Until now, we await the extent of the budget, which outlines and develops sustainability infrastructure along with policy lines related to economic growth to suffice for all constituents in the tourism chain,” says Jatinder Paul Singh, Co-founder and CEO, Viacation.

“As we approach the Union Budget 2025-2026, there is hope for a significant boost in budgetary allocation for education and skill development, ideally reaching 6% of GDP to align with the ambitions of NEP 2020. Such investment will be crucial for enhancing public-private partnerships, expanding skilling initiatives, and creating sustainable employment opportunities that contribute to individual empowerment and national economic growth. With the ambitious GER targets in higher education, leveraging technology and online learning is essential to provide millions of students with access to quality education. This can only be achieved if policies prioritize both accessibility and the consistent improvement of learning outcomes.

Many educational institutions continue to face challenges due to outdated infrastructure and limited technological resources, such as insufficient computer labs and unreliable internet access. Addressing these gaps, along with equipping both students and faculty with the right tools and training, is vital to preparing future generations for a tech-driven job market. A clear policy roadmap is needed to ensure that critical learning skills are delivered effectively from primary to higher education, empowering students to thrive in a rapidly evolving world,” says Praveen Singh, CEO, Aasoka (MBD Group).

“Considering the financial inclusion role of fintechs, the government could look at incentivising the segment by enabling priority sector lending status, which could eventually lead to lower interest rates and higher funds. We should also look for interchange pricing for UPI transactions beyond a higher threshold, based on annual revenues of the merchants, to ensure fintechs can avail higher liquidity to invest in product development and technology upgrades. Thirdly, riding on the success of technology hubs, the government could look at incentivising public-private partnerships and new investments into setting up of fintech hubs,” says Rajesh Londhe, Co-founder and Head of Payments, Phi Commerce.

“With the success of last year’s initiatives in the semiconductor and manufacturing sectors, we expect the upcoming Union Budget to further accelerate growth and innovation. The Indian government allocated ₹6,903 crore to the semiconductor industry in the 2024–25 Union Budget, reflecting a 52% increase from the previous year. This significant rise demonstrates the government’s commitment to reducing India’s reliance on imported semiconductors, creating high-tech jobs, and enhancing global competitiveness.

We anticipate a continued focus on strengthening the semiconductor and display manufacturing sectors. This includes expanding the establishment of semiconductor fabs, modernizing infrastructure, and bolstering India’s position in global supply chains. Additionally, tax reductions on electronic components and raw materials, along with exemptions on critical minerals such as lithium, copper, and rare earth elements, are expected to further boost India’s competitiveness in the global market.

The government’s emphasis on advancing technology, creating high-tech jobs, and solidifying India’s role in global supply chains will be pivotal in establishing the country as a global hub for semiconductor manufacturing. These efforts are expected to provide sustained economic benefits and position India as a leader in the rapidly evolving tech industry,” says Avneet Singh Marwah, CEO of Super Plastronics Pvt Ltd.

“Currently, 0.5% TCS is levied on foreign exchange transactions exceeding Rs 7 lakhs applicable if the education loan is availed from a commercial bank or section 80E recognised entity. Our recommendation is that the taxation rate must be rationalised to establish uniformity in the industry. A consistent TCS rate of 0.5% should be applied to forex availed if education loans availed from any NBFC or bank. This will create fairness and bring clarity for all stakeholders,” says
Pavan Kavad, Managing Director, Prithvi Exchange.

“India's startup sector is one of the world's largest sectors, projected to witness $15 billion of funding in 2025. In my view, budget 2025 needs to capture some key points so that rapid startup and startup funding momentum continues. First, tax breaks on early-stage investments and Angel Tax-related exemptions need to be allocated for further capital inflows towards startup companies. The current tax regime makes disinvestment in innovation rather unattractive and necessitates some restructuring.

Bringing down capital gains taxes for venture capital and private equity players would push India as a significant market destination for such investors into sectors like financial services and healthcare, among others. We request the government to make provisions under which FinTech start-ups will be able to access more credit through guarantees and less complicated collateral requirements, and investments in digital infrastructure should reach Tier 2 and Tier 3 cities first, as they are the next phase in FinTech progress.

Lastly, the regulatory sandboxes, especially in the Fintech space, need to see their capabilities and coverage expand, so that emerging technologies can be accelerated for testing and launching various financial services. Speedier approval processes will create a more dynamic FinTech ecosystem. The 2025 budget should focus on making India a stronger economy, for which start-ups and PE/ VC environment comprise a significant pillar for growth. The government should focus on strengthening the funding ecosystem, so that start-ups get an involuntary boost and there is cumulative growth in the industry,” says Sahil Anand, Founder and Managing Partner of Cedar-IBSi Capital.

Budget 2025 housing sector expectations: "We are expecting the government to prioritize housing affordability in the upcoming Budget, helping more Indians realize their dream of homeownership,” says Atul Monga - CEO& Co-Founder, BASIC Home Loan.

“One key reform should focus on enhancing tax benefits for home loan EMI payers. This could include raising the current Section 80C cap of ₹1.5 lakh for principal repayment and increasing the ₹2 lakh rebate on interest under Section 24(b); to reflect the rising property prices and inflation. GST adjustments on construction materials like cement, currently taxed at 28%, could reduce costs significantly, directly benefiting homebuyers.

Additionally, green housing projects remain an untapped opportunity, constituting less than 10% of the market. A focused push, with subsidies and tax incentives, could propel their adoption and create a more sustainable housing ecosystem.

These interventions, coupled with robust initiatives under schemes like PMAY, could help bridge the current housing deficit, which stands at 11.2 million units in urban areas. It’s time for bold, data-backed reforms to create a more accessible and future-ready housing market."