Budget 2025 Expectations Updates: Less than a week to go; check key expectations from upcoming Budget

Vinay Maheshwari, Executive Director of Mohan Babu University, stressed that India's ambition to become a global knowledge hub hinges on addressing critical needs in the higher education sector through the upcoming Union Budget 2025-26. He emphasized the importance of fostering research and innovation, enhancing graduate employability, and bridging the gap between academia and industry. Maheshwari called for an increased allocation to higher education to improve infrastructure and promote research in emerging fields such as artificial intelligence.

K B Kachru, President of the Hotel Association of India, called for essential reforms to enhance India's hospitality sector. He stressed the importance of improving infrastructure, simplifying tax structures, streamlining visa processes, and offering state incentives to attract investments. Kachru also emphasized the need to promote India more effectively as a tourist destination, suggesting policy changes to make the sector more competitive, including easier hotel licensing and offering industry status for hospitality to improve investment returns.

Ahead of the Union Budget, K B Kachru, President of the Hotel Association of India, outlined several reforms needed to unlock the full potential of India’s hospitality industry. These reforms include granting infrastructure status to the sector, rationalizing tax rates, easing visa processes, and offering additional incentives from state governments to attract investments.

Kapil Chopra, Founder of DIVIANA, has emphasized the potential of extending the Government of India’s Production Linked Incentive (PLI) scheme to the luxury furniture industry. He believes that this move could drive innovation, attract investments, and create export opportunities, while also providing employment for thousands of skilled artisans, especially those preserving traditional craftsmanship. Chopra pointed out that projects like Tamil Nadu’s Thoothukudi International Furniture Park have already demonstrated the success of specialized manufacturing clusters. He argues that expanding such initiatives nationwide could position Indian luxury furniture as a global leader in design and quality.

India’s leading IT industry association, NASSCOM, has called for reforms in the Union Budget 2025-26 to support the country’s IT and startup ecosystems. Key recommendations include adjustments to safe harbour rules, expanding the scope for SEZ reinvestment reserves, and the creation of a central deeptech fund. NASSCOM also advocates for a grant framework to nurture deeptech innovations, and an extension of the Employee Stock Option Plan (ESOP) tax deferment to all DPIIT-recognized startups. Additionally, the body seeks measures to promote long-term investment in deeptech and make safe harbour rules more accessible to global capability centres.

The industry body hopes these changes will help address the challenges posed by global economic uncertainties and foster growth in India's rapidly evolving tech sector.

Ricky Vasandani, CEO of Solitario, spoke about India’s growing focus on sustainable luxury and the importance of supporting eco-conscious businesses in the upcoming budget. Vasandani highlighted opportunities for innovation, particularly in sectors like lab-grown diamonds, which are gaining popularity due to their sustainability. He called for policies that simplify regulations and foster an environment where luxury brands can thrive. This would not only enhance India’s role in environmentally responsible luxury but also encourage a new wave of conscious consumerism.

As India gears up for the 2025 Union Budget, leaders from the luxury sector are expressing anticipation for policies that promote innovation, sustainability, and global competitiveness. Industry experts are calling for strategic measures to elevate India’s position as a leader in eco-friendly luxury manufacturing and design.

Sports industry experts underscore the need for higher budgetary allocation in Budget 2025 to prepare India for hosting the 2036 Olympics.

Dr. Vipul Lunawat, Founder Director of the Institute of Sports Science and Technology (ISST), Pune, highlighted the government’s record allocation of Rs 3,442 crore to sports in the 2024 Union Budget, up from Rs 3,396 crore the previous year.

He expects this year’s allocation to rise further to Rs 3,600–3,800 crore, ensuring sustainable sports development and strengthening India’s position as an elite sporting nation. Read here.

Barclays predicts tweaks in tax slabs to spur consumption and significant customs duty announcements in response to Trump-era tariffs.

Nomura expects a balanced approach to growth and fiscal prudence, which could lower fiscal risks and provide room for the RBI to cut rates in February.

PSU and capex-themed stocks, including railway, defence, and capital goods, are likely to remain in focus ahead of the budget.