Budget 2025 Expectations Live: Fintech calls for strategic focus on empowering SMEs

R Doraiswamy, Managing Director of the Life Insurance Corporation of India (LIC), is expecting tax incentives for the insurance sector and subsidies for people below the poverty line to encourage insurance adoption and boost penetration in India. Read here

Many consumption stocks have experienced a decline over the past year due to weak demand, resulting in earnings growth reducing to single digits. In the aftermath of the pandemic, the government has focused on public spending and fiscal responsibility, avoiding direct interventions to stimulate consumption through tax cuts or other incentives.

The central government now faces the challenging task of balancing capital expenditure while also encouraging consumption to revive the country's sluggish growth. Read more, here

Goenka also discussed RPG’s strategy to tap into key global economic trends, particularly the shift from China to India, which is seen as an opportunity for growth. He emphasized that the group is well-positioned to capitalize on this shift, whether through joint ventures or local manufacturing initiatives.

“We are very well positioned to take advantage of this opportunity where people are moving away from China and looking at India as an option. Whether it is through joint ventures or bringing manufacturing into India, we as a group can capitalise on this great shift,” he said.

As India prepares for the Union Budget, RPG Enterprises' Vice Chairman, Anant Goenka, has advocated for tax simplification and measures to stimulate consumption. Speaking with Moneycontrol at the World Economic Forum in Davos, Goenka highlighted that such reforms could drive higher capacity utilization, attract private investment, and strengthen India’s economic growth.

Employment and skilling were highlighted as key priorities in the interim budget, with the Finance Minister unveiling several initiatives to empower youth and drive job creation. As we approach the Union Budget 2025, we anticipate an even stronger focus from the Finance Ministry on enhancing employment opportunities and fostering skilling initiatives. With over 68% of India’s population in the working-age group, the country is uniquely positioned to achieve rapid economic growth compared to other major economies. However, to fully capitalize on this demographic dividend, it is essential to generate more employment opportunities and equip our youth with the skills needed to meet evolving industry demands. - Nikhil Barshikar, Founder & CEO, Imarticus Learning

Given the success of the PLI scheme, there is an expectation of increased budget allocation for the same to boost local manufacturing of telecom equipment and networking products, to increase the independence of Indian industry, and to position India as a global manufacturing hub. We also expect certain tax concessions like tax holidays or a concessional tax rate to attract foreign investments and boost employment in India’s data center industry. We also anticipate allocation of sufficient funds towards the implementation of Telecom Cyber Security Rules and setting up of the portal will ensure greater compliance with the rules and smooth transition. With the introduction of the regulatory sandboxes under the Telecommunication Act, 2023 for testing new communications technologies, the Government is expected to allocate funds for it. Regulatory sandbox can provide a platform where telcos, gear makers, app developers, academics, scientists and regulators can work together, test and develop products. -  Tony Varghese, Partner, JSA Advocates & Solicitors

The government in FY26 Budget should announce an "effective" personal income tax cut to support consumption and demand, Barclays said.

In its FY25-26 Union Budget preview, Barclays said the key ask from the Budget, to be presented on February 1, is to support growth while adhering to fiscal consolidation path.

Barclays, India Chief Economist, Aastha Gudwani said in a quest to support consumption, the finance minister should provide an effective personal income tax rate cut by further tweaking the tax slabs. This is unlikely to have a sizable fiscal cost.

"The government must introduce targeted incentives and subsidies to promote agri-tech adoption. Establishing drone hubs can drive rural employment, skill development, and a robust agri-tech ecosystem. Investments in rural infrastructure—storage facilities, cold chains, and logistics—are essential to reduce post-harvest losses and strengthen market linkages. Additionally, the Budget should focus on enhancing market access and promoting exports to establish India as a global agricultural leader." - Dhanashree Mandhani, Founder and CEO, Salam Kisan.

"The 2025 Union budget has a unique opportunity to position farmers and farm livelihoods at the centre of a food systems transformation that plugs into national goals across sustainability, agriculture resilience, and growing the bioeconomy. Addressing the value chain right from diversifying the seed ecosystem, growing more resilient crops such as pulses and millets, and enabling FPOs to support procurement and value addition of these crops as functional ingredients can all be incentivised further under a national strategy for alternative proteins. By building on the BioE3 policy and the Bio RIDE scheme, the government should also clearly outline resource allocations for R&D in novel foods such as cultivated meat and fermentation-derived proteins. By supporting the growth of the emerging smart protein sector and holistically prioritising the production of protein-rich, nutritious food that is accessible to all, the government can bring us closer to our vision of a ‘Viksit Bharat’ by 2047." - Sneha Singh, Managing Director, Good Food Institute of India.

The NDA 3.0 government must use its enormous political capital to implement 'politically difficult' structural reforms in the upcoming budget to promote growth and job creation, former RBI Governor D Subbarao said, as per PTI.

"This is the first full budget of the NDA-III government and it must use its enormous political capital to implement politically difficult structural reforms," Subbarao told PTI in an interview.

With the Union Budget 2025 just around the corner, market experts largely anticipate that Finance Minister Nirmala Sitharaman will avoid introducing surprises like last year’s hike in capital gains tax.

According to the latest Moneycontrol Market Poll, which gathered responses from nearly 45 participants, including broking firms, mutual funds, alternative investment funds (AIFs), portfolio management services (PMS), and independent experts, the budget is expected to focus on continuity rather than significant overhauls.

“The Union Budget 2025 presents a pivotal opportunity to accelerate India's transition to solar energy. As the demand for clean energy rises, we expect the government to introduce enhanced financing schemes, such as subsidies, low-interest loans, and tax incentives, to make solar installations more affordable for households and businesses. Expanding initiatives like the Pradhan Mantri Suryoday Yojana will further drive solar adoption and create new employment opportunities. Additionally, supporting MSMEs with tax breaks, grants, and funding for R&D will foster innovation and reduce costs in the solar sector. Finally, investing in skill development programs for women and youth will help bridge the gender gap and create a skilled workforce to meet the demands of India’s growing solar market. Together, these measures can propel India toward a sustainable, solar-powered future, driving both economic growth and environmental stewardship.” - Preeti Bajaj, MD & CEO, Luminous Power Technologies

As India’s hospitality sector grapples with rising competition from neighbouring countries and a manpower shortage, industry leaders are urging the government to address key challenges facing the industry in the upcoming Union Budget.

Hoteliers are calling for a reduction in GST, improved access to affordable credit, and recognition of smaller hotel projects for infrastructure benefits to boost competitiveness.

They say slow growth in the supply of rooms and one of the highest goods and services tax (GST) structures is making India less competitive compared to some neighbouring countries.

India is grossly under-roomed in comparison to the competing Asian destinations, said K B Kachru, President, Hotel Association of India (HAI).

Industry players are pinning hopes on significant announcements for the railway sector, particularly in freight operations and infrastructure development.

Texmaxo Managing Director Sudipta Mukherjee expressed optimism for a substantial wagon order, building on the government's 2022 announcement of approximately 1.2 lakh wagon orders over three years.

"Out of the total 3 lakh long-term wagon procurement plan to increase the total number to six lakh wagons, the government had placed nearly 1.2 lakh wagon orders in 2022, which are supposed to be fulfilled by 2025. We hope the government will repeat a similar mega order for wagons in the upcoming budget to push the railways' share in logistics to 45 per cent from the current 26-27 per cent," Mukherjee said.

The Nuts and Dry Fruits Council of India (NDFC) on Wednesday urged the government to rationalise walnut import duty on a per-kilogram basis, reduce GST to 5 per cent, and introduce a production-linked incentive scheme for the sector in its pre-budget proposals.

NDFC President Gunjan V Jain emphasised the need for protecting local farmers despite the existing 100 per cent import tariff.

"As we approach Budget 2025, we hope for a strategic focus on empowering SMEs through enhanced access to affordable credit and support for manufacturing innovation. Strengthening public-private partnerships to create value for SME businesses is vital, particularly for green and sustainable practices. Given SMEs' crucial role in employment and exports, the Budget should prioritize measures that enable them to scale operations, embrace eco-friendly solutions, and enter international markets. Robust financial and policy support will not only help SMEs thrive domestically but also position them as key players in global value chains, driving India's sustainable, export-led growth agenda." - Ankit Verma, Indian Subcontinent Head, Air8

“As India prepares for the upcoming Union Budget, we look forward to initiatives that support economic growth and accelerate infrastructure development. The shift towards urbanization and incentivized home loans is expected to enhance GDP. We encourage the government to continue investing in infrastructure and streamline the tax framework to benefit capital-intensive sectors like real estate." - Parag Munot, Managing Director, Kalpataru Ltd.

Industry body India Hydrogen Alliance has sought an additional budgetary support of USD 2.5 billion for government's National Green Hydrogen Mission (NGHM) in the upcoming Budget.

The additional funds will be essential for supporting demand side incentives, capital expenditures for building hydrogen infrastructure and hydrogen hub development, the India Hydrogen Alliance (IH2A) said in its Budget recommendation to the government.

As many as 57 per cent of individual taxpayers want taxes to be lowered in the upcoming Budget, Grant Thornton Bharat's pre-budget survey said on Wednesday.

The survey said although 72 per cent of individual taxpayers have opted for a new income tax regime, a majority (63 per cent) of taxpayers still seek an increase in incentives under the old tax regime.