Budget 2025 Expectations Live: Key industry expectations, analyst projections as Budget day approaches

Vivek Baj, Partner at Economic Laws Practice said  that the upcoming Union Budget 2025 has built in a lot of anticipation. It is expected that the Modi 3.0 Government will introduce policies and reforms to enhance investment in India and boost the Make in India drive. Like the earlier budgets, it is also expected that, this year, the Government will continue rationalising rates, encourage domestic production, reduce tax litigation, and provide better precision in tax laws. The trade industries across sectors are expecting a scheme for one-time settlement of Customs legacy matters pending before various judicial and quasi-judicial forums. Therefore, in all likelihood, similar to the erstwhile successful schemes viz., Sabka Vishwas Legacy Dispute Resolution Scheme (SVLDRS), Direct Tax Vivad Se Vishwas Scheme, it is expected that the Government may introduce Customs Amesty Scheme 2025 in order to provide an opportunity to the trade to end long-drawn Customs litigations.

Dr. Vishal Arora, Chief of Business Transformation & Operational Excellence, Artemis Hospitals said, “The Union Budget 2025 offers a critical opportunity for India to address long-standing gaps in its healthcare system, which stands at the brink of transformative reforms. We appreciate and recognise the proposals aimed at enhancing hospital infrastructure, reducing the costs of cancer care, and strengthening medical education. Long-term impact is only possible if we look beyond piecemeal solutions and develop a comprehensive, future-ready health-care strategy.

Anirudh Bhuwalka, CEO of Blue Energy Motors said, “As we stand at the cusp of a transformative era in commercial transportation, the upcoming Union Budget presents a pivotal opportunity to accelerate India’s transition toward sustainable mobility. Speaking at the Bharat Mobility Summit, Prime Minister Narendra Modi highlighted the importance of green mobility as a cornerstone of India’s sustainable development journey. LNG, with its ability to drastically reduce carbon emissions, is not merely a fuel alternative but a key enabler of a cleaner, greener logistics ecosystem. Together with advancements in EV technology, LNG and EVs represent the future of commercial trucking—a future that harmonizes environmental stewardship with operational efficiency.

To realize this vision, the government must prioritize investments in LNG refuelling infrastructure, EV charging networks, and fiscal incentives to drive adoption. These steps will position India as a global leader in sustainable logistics, align with net-zero goals, and strengthen the competitiveness of India’s supply chain on the world stage.”

Ankit Anand, Founding Partner at Riceberg Ventures, said , "The upcoming budget presents an opportunity to strengthen India's position as a global leader in deeptech innovation. To realize this, the government must focus on establishing a comprehensive framework that supports research and development, infrastructure, and talent cultivation. Providing non-dilutive grants, facilitating co-investments through entities like SIDBI, and creating state-backed funds will enable startups to navigate the high costs and long gestation periods inherent to deeptech.

Equally critical is building an environment where public and private sectors can easily collaborate. By simplifying regulatory frameworks and ensuring access to secure, structured government data, we can empower startups to develop groundbreaking solutions for sectors like healthcare, agriculture, and clean energy. For instance, open data frameworks like India's UPI have already showcased how such collaborations can fuel transformative growth.

Deeptech's true potential lies in its ability to address societal challenges while driving economic competitiveness. The upcoming budget must prioritize building world-class infrastructure—such as R&D hubs—and bridging the talent gap through targeted STEM education programs. Moreover, the government must actively support commercialization efforts by becoming a primary customer for deeptech solutions, enabling startups to gain the traction needed for global scalability.

With the right policies and investments, India can lead the deeptech revolution, creating solutions that not only benefit the nation but also position us as a hub for innovation on the world stage."

Deepak Sharma, Zone President Greater India, MD & CEO, Schneider Electric India said," India's economy is projected to grow at ~6.8% in FY25, surpassing other major global economies. This is a testament to the country's resilience amidst global uncertainties. With the upcoming union budget, we expect the government to harness the potential of manufacturing, create copious employment opportunities, and expand economic activity that will give further impetus to the current growth momentum. By focusing on self-reliance and resilience in global value chains, India can accelerate its growth trajectory towards being a Global Hub for Manufacturing and Innovation, thereby propelling the nation towards becoming a $7 trillion economy by 2030. Continued emphasis on infrastructure development—including roads, railways, ports, and digital infrastructure—will be crucial to enhancing connectivity while also stimulating economic progress across the country. Additionally, we look forward to initiatives that will bolster the new energy landscape including green hydrogen, solar technologies, microgrids, and electric vehicles. We also expect the budget to introduce policies incentivizing energy-efficient practices among companies. This will not only transform India's energy landscape but also contribute significantly towards achieving the country's net-zero goals and climate targets.

Sarthak Elwadhi, Co-founder of TrucksUp  said, “As India strives to achieve the vision of a Viksit Bharat by 2047, we are optimistic for the upcoming Union Budget 2025 about continued government infrastructure investment, enhanced funding for dedicated freight corridors, and digital platforms. Allowances for the incorporation of technology such as AI through tax or subsidies for truck aggregator platforms to streamline operations. Simplifying GST compliance, FASTAG process, supporting skilling initiatives, training drivers and logistics professionals to ensure that they are industry ready. In the current scenario, the trucking industry in India suffers from low asset utilisation, supply-demand mismatches, inefficiencies in truckload allocation and underutilization of trucks.

We hope to see government support policies being introduced here to give truck aggregator platforms a recognition that works as a great support system to reform logistics efficiency and enabling single fleet owners to make their operations profitable and adopt sustainable practices.

Aligned with the National Logistics Policy (NLP), implementing the plan is crucial to form an efficient logistics ecosystem that reduces cost, enhancing infrastructure, and drives India’s economic progress.”

Experts believe that the Budget should focus on simplifying income tax structures to increase disposable incomes, while also improving rural infrastructure and expanding direct benefit transfer programs.

These measures could help revive consumer spending and provide much-needed relief to the FMCG sector.

This month, shares of major FMCG players, including HUL, Britannia, Godrej Consumer, Marico, Dabur India, Nestle India, and Colgate Palmolive, have seen gains between 1-7 percent.

However, all of these stocks have experienced declines of up to 18 percent over the last six months.

FMCG stocks are gaining momentum as anticipation builds ahead of the Budget.

Investors are hopeful that the Finance Minister will announce measures to boost demand and consumption growth in the sector.

The mass-market segment, especially in urban areas, has faced challenges in recent months due to high inflation, which has negatively impacted consumption and slowed sales growth for consumer goods companies.

Key banking stocks, including HDFC Bank, ICICI Bank, Axis Bank, SBI, Bank of Baroda, PNB, Canara Bank, Indian Bank, and Bank of Maharashtra, have dropped by as much as 13% since October 2024.

Despite these challenges, banking stocks have displayed resilience compared to several large-cap names.

Prominent companies like Asian Paints, Bajaj Auto, Eicher Motors, SBI Life, and Nestle India have seen steeper declines, ranging from 20-30% during the same period.

Ahead of the Budget, most banking stocks have experienced declines, impacted by slow credit and deposit growth, rising slippages in the unsecured retail segment, and margin compression due to increasing funding costs.

The lack of a significant trigger, such as the divestment of state-run banks, has also dampened investor sentiment, especially since the asset quality-led re-rating has already played out.

The banking sector is grappling with tight macroeconomic conditions, constrained liquidity, and sluggish credit growth, as highlighted during Q3 management conference calls.

These challenges have heightened anticipation for the 2025 Union Budget, with hopes pinned on measures to stimulate credit expansion and improve liquidity to drive future growth.

Jatia noted that the Budget could play a pivotal role in restoring consumer confidence, potentially through policies that increase disposable income or incentivise spending.

With discretionary spending being a key driver of economic activity, such steps could provide much-needed relief to businesses in retail and hospitality.

The upcoming Union Budget presents a significant opportunity for the government to bolster customer confidence and revive discretionary spending, both of which are crucial for overall economic growth, according to Amit Jatia, Chairperson of Westlife Foodworld.

Commenting on the current economic landscape, Jatia noted that sectors such as retail and dining out have been facing subdued consumer demand for some time. "We expect some targeted policy interventions that can accelerate recovery," he said, highlighting the importance of measures to support these key sectors.

The industry body has also stressed the need for the creation of a central deeptech fund aimed at nurturing India’s growing deeptech startup ecosystem.

The fund would offer financial support to innovative startups in areas such as artificial intelligence, quantum computing, and biotechnology, areas where India has the potential to emerge as a global leader.

Additionally, Nasscom has called for an expansion in the scope for the utilization of Special Economic Zone (SEZ) reinvestment reserves, which could provide businesses with more flexibility to reinvest profits in innovation and infrastructure.

India's apex IT industry body, Nasscom, has outlined its key expectations for the upcoming Union Budget, urging the government to introduce reforms that can bolster the country's tech and startup ecosystem.

Among the key proposals is a call for revisions to the safe harbour rules, which would provide greater clarity and benefits for companies operating in the technology and IT sectors.

With the upcoming budget, taxpayers and financial experts alike are hoping for measures that not only address these gaps but also streamline processes, incentivise compliance, and promote financial inclusivity for all categories of taxpayers.

Furthermore, approximately 60 percent of taxpayers rely on Section 80C of the Income Tax Act for their savings.

However, the deduction limit of Rs 1.5 lakh, which has been in place since 2014, fails to meet contemporary financial needs.

As inflation erodes the value of money, this cap no longer offers sufficient incentives to encourage saving, making it one of the key areas in need of reform.

The income tax system, particularly the top tax slab for incomes above Rs 10 lakh, has remained unchanged since 2012.

Adjusting for inflation, this threshold should stand at Rs 21.3 lakh today, underscoring a growing disconnect between current tax policies and the economic landscape.

This highlights the urgent need for a review of tax brackets to reflect the changing financial environment.

As Budget 2025 approaches, India's personal finance ecosystem stands on the cusp of transformation.

With over 7.5 crore individual taxpayers contributing significantly to government revenue, the need for reforms to encourage greater compliance and adjust tax policies to current realities has never been more urgent.

As the budget draws near, there is growing anticipation within India's personal finance ecosystem for potential reforms.

Despite India having over 7.5 crore individual taxpayers, with income tax contributing significantly to government revenue, many taxpayers feel neglected.

Reforms to incentivise compliance have become overdue for nearly all categories of taxpayers, making it a key area of focus for the upcoming budget.