Budget 2025 Expectations: FM Nirmala Sitharaman takes part in customary halwa ceremony

Sushil Suri, Chairman and Managing Director, Morepen Laboratories highlights that "We anticipate that the upcoming budget will unleash the immense potential of the Pharma sector, projected to reach $130 billion by 2030 and $440 billion by 2047. A streamlined regulatory approval process is essential to enhance investments and productivity. We urge the government to expand the scope of the Production-Linked Incentive (PLI) Scheme to make it more accessible for the medical technology sector, thereby boosting our manufacturing capabilities. A unified regulatory framework will not only ease business operations but also attract substantial investments, fostering competitiveness within the industry. Timely approvals for new drugs, coupled with a focus on R&D investments, will empower companies to innovate and contribute to our goal of becoming self-reliant (Atmanirbhar). We look forward to a budget that prioritizes these crucial aspects for the growth of our sector."

Krishan Lalit Bansal, CMD, DEE Development Engineers Limited said," The Indian economy will maintain strong growth momentum in the coming years and it is projected to attain a size of $10 trillion by FY34 and $20 trillion by FY43. This growth can only be achieved when there is strong support from the energy sector to meet the expected surge in demand since this is most crucial for an expanding economy. While the mix will change with integration of renewables, the entire energy basket – from thermal to oil and gas and nuclear – will play a key role in ensuring India’s energy security. We thus expect the FY26 budget to focus on simplifying tax structures and lowering project costs for various energy projects. Oil and gas exploration and production has been a key thrust area for the government. We expect the budget to lay a roadmap raising domestic production of crude oil and gas while incentivizing exploration for new finds. The FY25 budget had announced a renewed thrust on nuclear power generation with small modular reactors. We now expect FY26 budget to announce more measures for boosting nuclear power output with participation from the private sector.

Expect yield fluctuation of low single digit in Q4FY25 when compared to Q3FY25, says IndiGo CFO Gaurav Negi

Simarpreet Singh, Executive Director & CEO - Hartek Group said, “The Indian government has made significant strides in supporting the renewable energy sector, particularly solar power. According to MNRE data, India’s total renewable energy capacity stands at 214 GW as of December 2024, with solar energy contributing approximately 47% of this total. This progress reflects the country's strong commitment to clean energy and sustainability. To maintain and accelerate this growth, it is crucial for the upcoming budget to prioritize financial incentives for large-scale renewable energy projects and strengthen the focus on domestic solar manufacturing. Targeted measures, such as continued support for production-linked incentive (PLI) schemes and infrastructure development, will drive private sector participation, foster innovation, and enhance India’s manufacturing capabilities. These steps will ensure that India not only sustains its momentum but also strengthens its position as a global leader in the renewable energy transition.”

Anmol Jaggi, Chairman & Managing Director, Gensol Engineering Limited said, “This year’s budget presents a critical opportunity to drive a significant expansion in renewable energy (RE) capacity as we continue pursuing the 500 GW target by 2030. With an additional 300 GW of renewables to be added over the next five years, the sector requires reforms that are not only future-oriented but also address the current challenges faced by the industry.

The Ministry of New and Renewable Energy’s (MNRE) recently introduced Approved List of Models and Manufacturers (ALMM-II) framework, specifically designed for solar PV cells, is expected to take effect on June 1, 2026. However, with limited in-house cell manufacturing capacity and an ambitious annual target of approximately 35 GW, the demand-supply gap could lead to higher pricing for domestic cells and an increase in overall project costs.

Similarly, the proposed policy changes under the Draft TBCB guidelines to reduce the Power Purchase Agreement (PPA) duration from 25 to 15 years for grid-connected renewable energy projects and Energy Storage Systems (ESS) require careful consideration. These changes could directly impact project financing. Developers might hesitate to enter into new PPAs during the latter 10 years of a project’s effective operation. While shorter PPAs may offer greater flexibility, it is crucial to strike a balance with the financing stability needed by investors to ensure continued sector growth and attract investment.”

Pratik Mandvia, Solar Business Head at Mufin Green Finance said, "As the Union Budget 2025 approaches, the solar financing sector is anticipating critical policy measures that will support the growth of rooftop solar installations. With the government's goal to achieve 50,000 MW of rooftop solar capacity by 2030, there is a need for financing solutions that cater to the residential, commercial, and industrial segments. The budget could play a pivotal role in creating a framework that simplifies access to capital for solar projects and encourages financial institutions to increase their participation in solar financing.

Incentives for banks and financial institutions to provide low-interest loans, as well as risk-mitigation mechanisms, would be crucial to scale up rooftop solar adoption. Further, tax exemptions, subsidies, and rebates on solar installations will help reduce upfront costs for consumers and businesses, driving demand in both urban and semi-urban areas.

The anticipated focus on enhancing the solar financing ecosystem will support India's renewable energy goals, particularly the target of 500 GW of non-fossil fuel-based energy by 2030. By creating an enabling environment for solar financing, the government can foster greater adoption of solar energy, contributing to India’s energy security and environmental sustainability."

Zaiba Sarang, Co-founder, iThink Logistics said that the courier aggregator industry, a backbone of India’s thriving e-commerce sector, is looking to the 2025 Budget with high expectations to supercharge its growth trajectory. Increased infrastructure investment—particularly in port connectivity and transportation networks—could be a game-changer, slashing logistics costs and enabling seamless supply chain operations, even in Tier II and III cities where e-commerce is expanding rapidly.

Compliance simplification is a vital need for logistics players. A unified GST slab structure would reduce the compliance burden and operational costs, allowing businesses to focus on scaling their services. Enhanced customs processes and an efficient GST Network would further eliminate trade bottlenecks, unlocking the potential of cross-border commerce, a burgeoning opportunity in the globalized market.

The future lies in skilled manpower and sustainability. Targeted budget allocations for workforce skill development can empower companies to handle rising consumer demand with agility and expertise. Meanwhile, dedicated funds for green logistics—such as electric fleets and sustainable packaging—would future-proof the sector while aligning with India's climate goals.

With these bold reforms, Budget 2025 could not only elevate the e-commerce logistics ecosystem but also position India as a global leader in efficient, sustainable, and innovative supply chain solutions. This is the moment to redefine logistics for the next decade and beyond!

Saket Chirania, Co-Founder of Agrizy, said that the upcoming Union Budget 2025 to drive transformative growth in our sector. We urge the government to prioritize policies that enhance the competitiveness of food processors, especially Micro, Small and Medium Enterprises (MSMEs), which are vital for innovation and job creation.

Increased financial incentives and subsidies for sustainable processing technologies will empower businesses to meet both domestic and international quality standards. Additionally, we advocate for dedicated funding for research and development initiatives that promote food safety and product innovation, ensuring that Indian products can compete on a global scale.

Investing in skill development programs tailored to the food processing workforce is essential for building a knowledgeable and capable talent pool.

Overall, we believe that a forward-thinking budget can unlock the full potential of India’s food processing sector, driving economic growth, enhancing food security, and positioning India as a global leader in processed foods. Together, let us create a thriving ecosystem that benefits farmers, processors, and consumers alike.

Chemical industry players are pinning hopes on the upcoming Budget to deliver much-needed policy support. Key expectations include the introduction of a Production-Linked Incentive (PLI) scheme to bolster domestic manufacturing and revisions in customs duties on chemical imports, particularly from China, to curb competition and strengthen local production.

More here.

CropLife India on Friday urged the government to reduce goods and services tax (GST) on agrochemicals to 12 per cent and maintain a uniform 10 per cent basic customs duty for technical raw materials and formulations.

"We request the government to create an ecosystem around a science-based, progressive, and predictive regulatory framework that will allow the sector to become globally competitive," the industry body said in a statement.

“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).

The Budget for the financial year 2025-26 is expected to allocate Rs 1.7 lakh crore towards fertiliser subsidies, a marginal increase from the Rs 1.64 lakh crore budgeted in FY25, sources said.

The second Budget of Modi 3.0 is likely to promote organic alternatives through increased allocation for market development assistance (MDA) scheme, the sources said.

Exclusive report here.

“The upcoming Union Budget presents a significant opportunity to strengthen India’s financial ecosystem and drive inclusive growth. We urge the government to expand the PSL(Priority Sector Lending) definition to include emerging sectors like renewable energy, women-led enterprises, and digital infrastructure, aligning with India’s evolving economic priorities. Establishing a dedicated regulatory framework for NBFC catering to PSL will further enable focused lending to underserved segments. Additionally, measures such as concessional refinancing from institutions like SIDBI and NABARD, along with credit guarantee schemes, can lower borrowing costs and mitigate risks, encouraging greater participation from banks and investors. Allowing bank loans to NBFC-PSLs to qualify as PSL will ensure consistent capital flow, empowering MSMEs and other critical sectors to scale operations and contribute to the nation’s growth. By implementing these measures, the budget can pave the way for a robust financial ecosystem, fostering innovation, entrepreneurship, and equitable development across India.” – Shachindra Nath, Founder and Managing Director, UGRO Capital.

According to analysts, the government's capex push had a direct bearing on the sales of commercial vehicles and ancillary industries. In the last Budget, the capex allocation was Rs 11.11 trillion, which was very heartening for the industry. But, during the year, the pace of national highway construction slackening and the central government focussing on election-related activities had an adverse impact on the industry, according to market experts.

Full report here.

Brokers and AMCs are seeking tax relief for their customers specifically through the lowering of Securities Transaction Tax (STT), Long-Term Capital Gains (LTCG) tax, and Short-Term Capital Gains (STCG) tax.

The deepest impact seems to be from the doubling of STT, which was announced in the previous Budget. The rates on STT on sale of an option in securities was increased from 0.0625 percent to 0.1 percent of the option premium. Meanwhile, STT on sale of a futures contract was increased from 0.0125 percent to 0.02 per cent of the price at which such futures are traded.

Sunil Sapra, Founder and Chief Growth Officer of Eventus Security, anticipates a continued focus on strengthening India's cybersecurity framework.

As cyber threats evolve, it is imperative for the government to prioritise investments in cybersecurity infrastructure and initiatives that enhance national resilience against emerging cyberattacks, Sapra said.

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.

Industry experts expect a cut in the GST rate on health insurance premiums in the Union Budget 2025 and to increase insurance penetration and ensure financial security for dependents a mandatory basic term life insurance.

According to a Reuters report, India plans to increase spending for the agriculture sector by about 15% to around $20 billion, marking the biggest increase in six years, as it tries to boost rural incomes and curb inflation.

The additional cash would be directed to developing high-yielding seed varieties, increasing storage and supply infrastructure, and boosting production of pulse crops, oilseeds, vegetables, and dairy products, the report added.

"We are hopeful that the upcoming Union Budget will encompass pertinent steps by the finance minister to revise the consumption cycle in order to spur growth. On the back of these factors, we remain optimistic about a gradual recovery in the new fiscal that will enable us to capitalise on the increased spending by advertisers," Zee's Punit Goenka said during a Q3 earnings call.

More here.

Industry players from various fields have put forth their demands for raising income tax limits, taking measures for more job creation, and further improving doing business to propel growth.

The industry is hopeful that the government will announce a slew of measures to boost consumption by ensuring more money in the hands of people, boosting capital expenditure, giving relief to the housing sector and technological innovations.

Raoul Kapoor, Co-CEO of Andromeda Sales and Distribution, said the upcoming budget carries high expectations, particularly for the middle-income group, which has been grappling with rising household expenses and inflation. Over the years, there have been limited tax benefits for this segment, despite the increasing financial burden.

Moin Ladha, Partner at Khaitan & Co, opined that with the Union Budget 2025 fast approaching, the industry as a whole is confident of some interesting changes to the regulatory landscape, particularly changes to foreign investment policy, streamlined compliance, and key policy changes in certain sectors.

The traditional Halwa ceremony, marking the final phase of preparations for the 2025-26 Union Budget, will take place at North Block today at 5pm.

This “lock-in” has been a longstanding tradition since 1980, with the printing of the Union Budget documents taking place in the basement of North Block.

As per tradition, Finance Minister Nirmala Sitharaman will lead the ceremony, with Minister of State Pankaj Chaudhary and various secretaries in attendance. The officers and staff who played a key role in the budget preparation and compilation process will also be present to celebrate the occasion.

The Halwa ceremony signifies the commencement of the budget 'lock-in' period at the finance ministry. During this time, all officials and staff directly involved in the budget preparation are required to stay within the ministry premises until the budget is tabled in Parliament.