Budget 2025 Expectations Updates: Fashion industry seeks reduction of GST on clothing, simplified e-commerce policies

"In 2024, India’s online gaming industry has demonstrated remarkable resilience and growth, overcoming regulatory challenges and the impact of the 28% GST. Despite these hurdles, the sector has exceeded expectations, reaching $3.8 billion in revenue in FY24.

As we approach the Union Budget, we remain hopeful that the government will consider reducing the GST rate and addressing retrospective taxation issues, which would provide much-needed clarity and enable further growth and innovation. The government's focus on advancing the AVGC (Animation, Visual Effects, Gaming, and Comics) sector is promising, and we look forward to increased funding and policy support for this initiative.

With continued efforts, we envision a future where more Indian developers and gaming studios create world-class games and content, solidifying India's position as a global leader in gaming. Further emphasis on supporting startups and fostering innovation will be crucial to ensure the industry’s sustained growth and contribution to India's digital economy." -Roland Landers, CEO at All India Gaming Federation

" As we approach the new budget, I'm excited to see how the government builds on the momentum of previous years to drive growth in India's MSME sector. Sustaining this momentum is crucial, with a focus on bridging the swelling debt funding gap that persists for SMEs. Enhancing credit accessibility and simplifying IPO listing procedures will offer vital support. Furthermore, by introducing targeted interest subvention schemes, the government can significantly reduce operational costs. Together, these measures will strengthen the global competitiveness of our MSMEs, ensuring they continue to thrive and grow. To take it to the next level, I'd like to see the budget introduce innovative funding models and asset-light strategies that promote corporate governance and financial transparency. Policy incentives, including tax reliefs, sector-specific subsidies, and support for digital transformation, will be crucial in driving sustainable growth and long-term value creation. Considering the current economic landscape, I think the budget should also focus on infrastructure development, job creation, and ease of doing business. Consider the expectations of various industry sectors, such as the automotive industry, which is looking for funding and incentives for EV infrastructure, service centers, and tax credits for green technology. The real estate sector is hoping for progressive reforms that benefit homebuyers and the industry, including increased tax exemption limits on interest payments on home loans and reduced stamp duty charges As we look to the future, I'm confident that the Union Budget will empower MSMEs, bolster India's economic framework, and present high-growth opportunities for investors. With the government's focus on fiscal prudence and growth-driven policies, I'm optimistic that the budget will strike the right balance to drive India's economic trajectory forward" - Mr. Tarun Singh, Founder and Managing Director of Highbrow Securities

Maruti Suzuki India has expressed that any steps to improve overall consumption momentum in the upcoming Union Budget would greatly benefit the auto industry, which is currently experiencing sluggish growth. The country's largest carmaker projects a 3.5% growth in retail sales for the fourth quarter, after similar growth in the previous three quarters of FY25.

Rahul Bharti, Executive Director (Corporate Affairs) at Maruti Suzuki, highlighted that while most relevant activities are now under GST, a general improvement in consumption would benefit the entire industry. He emphasized that if the economy performs well and consumption increases, it would positively impact Maruti as well.

Despite a generally weak demand scenario, Bharti remained optimistic, citing a 3.5% growth in retail sales from April to December. Maruti’s rural sales saw a notable 15% growth, while urban growth was lower at around 2.5%.

The company also reported strong export performance, with 99,220 units exported in the October-December quarter—its highest ever in any quarter—and plans to expand exports of its newly launched eVITARA model to about 100 countries, including Europe and Japan.

Maruti's consolidated net profit for the December quarter grew 16% to Rs 3,727 crore, fueled by higher sales, with total revenue from operations reaching Rs 38,764 crore. The company sold 5,66,213 vehicles during the third quarter, marking a 13% increase from the same period last year.

Domestic steel manufacturers are anticipating protectionist measures in the upcoming Union Budget to shield the sector from dumping practices. Dilip Oommen, CEO of AMNS India, expects continued government focus on infrastructure development and improvements in the ease of doing business.

JSW Steel's Joint MD & CEO, Jayant Acharya, highlighted the need for a level playing field and measures against unfair trade to sustain the sector's growth momentum. Anubhav Kathuria, Managing Director of Synergy Steels, suggested the introduction of fiscal incentives and logistical support to mitigate high input costs, which have reduced margins in 2024.

Abhyuday Jindal, MD of JSL, called for an increase in the basic customs duty on stainless steel products to 15% for non-free trade agreement countries, aiming to strengthen the domestic stainless steel sector in line with India’s "Viksit Bharat@2047" vision.

Ritabrata Ghosh, VP & Sector Head at ICRA, pointed out that 2024 was a challenging year for the industry due to increased steel exports from China and other FTA countries, which targeted high-growth markets like India.

"As the Union Budget 2025 approaches, we look forward to policy measures that drive sustainability, innovation, and growth in India’s food and beverage industry. Future-ready solutions deserve recognition and support—one such area is aligning GST on products like long-life UHT milk with basic pouch milk to enhance affordability and nutrition access. UHT milk ensures a safe, long-lasting supply across urban and rural areas, reducing cold chain dependency and minimizing wastage. The benefits of quality and access are greater than that of pouch milk and should be accorded due consideration. Additionally, streamlining clearances for food processing equipment exports, simplifying raw material import regulations, and incentivizing sustainable packaging will strengthen India’s global competitiveness. A collaborative industry-government approach can build a resilient, future-ready ecosystem that ensures food safety, security, and sustainability." -Cassio Simões, Managing Director, Tetra Pak South Asia

"The shift towards supply-side reforms—through PLI schemes, corporate tax cuts, and logistics upgrade, has been the defining feature of recent budgets, laying the foundation for long-term growth. While direct demand-side interventions may be limited, targeted relief for the lower-income segments is expected. More importantly, the fiscal glide path and the RBI’s inflation credibility remain key to India’s macroeconomic standing, with S&P closely watching these markers for a potential rating upgrade. Encouraging India Inc. to re-leverage and drive fresh capex cycles will be critical in sustaining growth momentum." -Harish Krishnan, Aditya Birla Sun Life AMC

“The first salvo of the budget has already been fired. RBI has pumped in liquidity into the system. They have infused 1.5 lakh crores. These, I believe, are the monetary measures being taken. This will reduce interest rates and give leeway for increased spending for the government and borrowings for individuals and corporations. So, what is left behind during budget would be fiscal measures. So, we can expect increased government spending on infra and construction, tax incentives to manufacture so that corporate Capex increases, lower tax rates for individuals so that consumption and, therefore, demand are increased." -Ravichandran Venkatraman, a distinguished Board Member, educationist, and social enterprise leader.

“With the upcoming Union Budget, we are optimistic about policies that will drive growth and innovation in facility management—a vital component of India’s urban infrastructure. Measures promoting energy-efficient building solutions and smart technology adoption can accelerate India’s sustainability goals and enhance operational efficiency.

Incentives for skilling in green building management and smart facility technologies will bridge industry skill gaps and boost job creation. Streamlining GST for facility management services and tax benefits for eco-friendly practices will enable businesses to deliver greater value. Transitioning taxation for manpower services from billing to receipt-based systems will improve cash flow, benefiting service-oriented businesses.

A forward-thinking budget addressing these priorities can position India as a global leader in sustainable facility management solutions.”-Sanjay Dighe of Krystal Integrated Service

“The travel and tourism industry anticipates that the Union Budget will address key challenges and foster sustained growth. Rationalizing GST rates for travel agents and introducing input tax credits can reduce operational costs and enhance market competitiveness. Simplifying compliance processes can further improve administrative efficiency for businesses. Emphasizing digitization and targeted skill development programs can empower travel agents to adapt to emerging industry trends. Additionally, promoting domestic and inbound tourism through innovative awareness campaigns and eco-friendly initiatives can drive sustainable development and bolster the sector’s long-term potential” -Hussain Patel, Director TripJack

"As we approach the upcoming budget, I see it as a crucial opportunity for the government to strengthen the real estate sector's contribution to India’s economic growth. There are several key areas where policy interventions could make a significant difference.

First and foremost, revisiting GST rates, increasing tax deductions, improving land allocation, and boosting funding are essential steps. These measures would not only accelerate urbanization but also support various industries within the construction ecosystem, including elevators - a vital yet often overlooked segment that plays a key role in enhancing urban convenience.

One of my primary expectations is the introduction of financing options for individuals purchasing elevators for private residences. Currently, no such provisions exist, and a relaxation in GST rates for elevators with up to five stops could greatly benefit homeowners by making these solutions more affordable.

Additionally, I urge the government to consider tax benefits and GST concessions for elevators meant for paraplegics and elderly individuals with mobility challenges. Elevators are essential vertical mobility solutions and treating them akin to accessibility-friendly equipment - already taxed at a lower rate - would make them more accessible to those who need them the most." -Aman Moudgil, Director - Gilco Global

“With the recent introduction of the Digital Personal Data Protection (DPDP) Act rules, India has made significant strides in establishing a strong foundation for data protection and privacy. Ahead of the Union Budget 2025-26, we look forward to measures that will further strengthen the nation’s cybersecurity framework.

As the nation increases its investments in digital transformation and integration of artificial intelligence, it increases the need for proactive cybersecurity measures. Data breaches have taken over the news in the past year as critical sectors have been targeted. Adding to the threat of exploited vulnerabilities such as malicious links or confidential data being leaked, enterprises and employees alike have had to reconsider whether what meets the eye is the truth due to highly advanced deepfakes.

Investments in cutting-edge threat detection, incentivising secure digital practices, and fostering innovation in cyber resilience could greatly complement the country’s digital transformation journey. Additionally, as enterprises take on digital transformation or AI adoption, the focus on cybersecurity may fall by the wayside as there is a gap between supply and demand of skilled cybersecurity resources. Mitigating this issue requires investments in cybersecurity courses in educational institutes as well as continuous skilling opportunities for those already working. This will ensure that enterprises remains abreast with knowledge about all possible risks as well as the solutions.

With advancements in proactive cybersecurity, India can reinforce trust in its digital economy while ensuring sustainable growth in a rapidly evolving cyber landscape.” - Sunil Sharma, Vice President - Sales, Sophos India & SAARC

“As India moves towards its twin goals of a $5 trillion economy and Viksit Bharat by 2047, MSMEs and NBFCs will play a crucial role in facilitating these objectives. We expect major measures to boost financial inclusion such as the creation of an exclusive liquidity window customised for companies financing MSMEs and microfinance schemes. Apart from this, Green financing initiatives can offer NBFCs significant opportunities to fund environmentally sustainable projects. Such initiatives will enhance access to affordable funds, leading to enhanced entrepreneurial growth. We also expect provisions in the Budget to include tax reforms, such as deduction at source. NBFCs are subject to 10% TDS on interest payments, creating cash flow constraints, since the sector operates with narrower margins. These measures could boost credit availability and increase access to affordable funds, which is critical to propel economic activity and help India achieve sustainable growth.

Businesses are also increasingly emphasizing the importance of sustainable urbanization. The government’s infra push toward roads, electricity, and industrialization in Tier 2 and Tier 3 cities has significantly bridged the rural-urban divide. This facilitates access to new markets for businesses, spurring local business growth and providing better job opportunities. Consequently, the role of NBFCs in offering formal credit will become even more vital.

Furthermore, digitization continues to empower NBFCs to disburse loans in a timely, hassle-free manner, minimizing the need for physical paperwork and KYC document verification thus helping NBFCs expand their business to deeper pockets of the country and bringing more of India’s population into the formal financial system.” -Ajay Pareek, SMFG India Credit

"The jewellry and precious metals industry continues to experience strong growth, and we are hopeful that the upcoming Union Budget 2025-26 will introduce policies that will further accelerate this momentum. As a jewellry brand based in India, we are looking forward to initiatives that will continue to strengthen consumer trust and reinforce India’s competitive edge in the global jewellry market. The Indian jewellry retail market has seen impressive growth, expanding from ₹5,04,400 crore in 2019 to ₹6,40,000 crore in 2024, largely driven by rising disposable incomes and the success of hallmarking initiatives. With the festive season and favorable pricing, we expect domestic gold jewellry consumption to increase by 14–18% in value during FY25. We are enthusiastic that the upcoming budget will provide the support needed to boost consumer confidence, encourage sectoral growth, and further establish India as a global leader in the jewelry market" -Dishi Somani, Founder of Dishi S Designer Jewellery

“As the retail sector continues evolving according to changing consumer patterns and technology, the Union Budget 2025 should prioritize digital transformation, infrastructure development, and consumption facilitation. As the Indian retail environment increasingly turns to e-commerce, the sector awaits more regulatory clarity and support for online retail platforms. The industry is constantly looking for measures that would make e-commerce policies more streamlined, GST compliance easier, and offer tax incentives to small and medium retailers to adapt to digital tools, thus making them more efficient and reaching greater markets.

The retail sector heavily relies on logistics and supply chain networks, hence, it's likely to see infrastructure development investment, especially in areas such as last-mile delivery and warehousing. Measures under PM Gati Shakti are expected to further reduce transportation costs and make the supply chain more efficient, which will benefit both physical stores and online businesses.

For consumers, we anticipate an increase in tax exemptions or rebates for stimulating discretionary spending, especially on discretionary goods and services commonly used such as clothes, electronics, and home products. Such consumption spending is vital for continuing retail growth, and targeted assistance to middle-income households is expected to significantly contribute to this.

Overall, the 2025 Budget is set to ensure further strengthening of the retail sector in India through digitalization, infrastructure, and consumer expenditure, laying the foundation for a resilient and competitive ecosystem that can thrive both in the physical and digital marketplaces.” -Rajeev kr Gupta, MD, Thermocool Home Appliances

Vaibhav Kapoor, Co-founder, Pristyn Care calls for increased healthcare investment especially in Tier 2 and Tier 3 cities. He says, "With the upcoming Union Budget, there is an urgent need to prioritize accessibility, affordability, and quality in healthcare, especially in Tier 2 and Tier 3 cities. Inadequate medical infrastructure in these regions limits access to specialized treatments, making it essential to strengthen healthcare systems and ensure advanced medical facilities are available. Additionally, the recent inclusion of senior citizens in programs like Ayushman Bharat marks a positive step toward ensuring healthcare is inclusive of all age groups, but further investment is needed to ensure comprehensive coverage for all age groups.

Moreover, reforms in health insurance are critical to addressing the disconnect between the intended ease of cashless insurance and the challenges policyholders face. Streamlining insurance frameworks, coupled with public-private collaboration, can significantly enhance the healthcare landscape. Currently, only 1.96%* of the budget is allocated to healthcare, which is insufficient. To have a truly transformative impact, this allocation should increase to at least 2.5%.

This Budget offers an opportunity to reimagine healthcare delivery in India, laying the foundation for a system that is equitable, inclusive, and responsive to the needs of every citizen."

"As a company empowering individuals to start their own businesses, we urge the government to consider lowering income tax slabs helping direct sellers who are sole proprietors or small businesses. This adjustment would support the spirit of entrepreneurship and contribute to overall economic growth. Furthermore, lowering taxes would improve disposable power, allowing more number of people to invest in their health and wellbeing. We also advocate incentivizing research and innovation by providing fiscal incentives to support R&D initiatives, thereby fostering an environment for technological advancement and enhancing our nation's competitiveness in the global market." - Rajneesh Chopra, Managing Director, Amway India

"The budget should also take steps to ensure more private fundings. This will include enabling the Higher Education Financing Agency to provide loans to private universities. It should give incentives for philanthropies and private universities to create endowments.

Funds have to be allocated to help universities and colleges to transform themselves to be truly multi-disciplinary. To ensure we do well in research and we have faculty members to teach this large population, much more funding needs to be channeled toward Phd scholarships"- Dr. Partha Chatterjee, Dean of Academics and Professor of Economics, Shiv Nadar University, Delhi NCR.

"As we look forward to the Union Budget 2025, it is essential for the Indian government to establish clear regulatory frameworks and streamline taxation policies related to cryptocurrencies. The existing uncertainty hinders innovation and discourages investors from engaging in this fast-growing sector.

The crypto industry has been advocating for clearer regulations, tax relief, and incentives for innovation. Creating a well-defined regulatory landscape will not only safeguard investors but also promote technological progress within the country.

Additionally, the proposed increase in tax rates on Bitcoin ETFs from 12.5% to a flat 30% raises significant concerns. Such a change could deter investment in digital assets and impede the development of the crypto ecosystem in India." - Dipankar Sarkar, Co-Founder & CTO of KiranaPro

"The Union Budget 2025-26 presents an opportunity to revolutionize India’s healthcare sector, particularly in Tier 2 and Tier 3 cities, which house over 70% of the population yet utilize only 30% of healthcare infrastructure. Cities like Coimbatore, Vadodara, Guntur, and Warangal stand to gain from targeted investments. Expanding hubs to underserved regions and establishing centers in potential Tier 2 and Tier 3 cities will address local healthcare needs and drive regional development.

The adoption of green pathways for startups in regulatory frameworks, including subsidies for product testing and broad-based institutional support for clinical trials in designated centers, will foster innovation. Incentivizing hospitals and clinics to adopt local technologies and domestically manufactured goods can further accelerate this transformation.

Incentivizing hospitals and clinics to adopt local technologies and domestically manufactured goods can further drive this transformation. Tax and interest rate reductions, along with GST cuts on locally-sourced medical devices and AI tools from 18% to 5%, will enhance affordability and accessibility. The Production-Linked Incentive (PLI) scheme and concessional loans for startups will sustain the current 20% growth rate in domestic MedTech production, further strengthening the sector." - Dr Santosh Bhargav D.B., co-founder and director-CTO of SpOvum Technologies

"Facilitating robust risk mitigation mechanisms—such as credit guarantee schemes and tailored regulatory frameworks—would enable NBFCs to operate more effectively and expand their reach. Additionally, promoting financial literacy through targeted programs would help consumers make informed credit decisions, fostering responsible borrowing habits. These measures would also encourage innovation and enhance financial security alongside promoting the goals of financial inclusion and economic resilience.

The adoption of emerging technologies like AI and Machine Learning, Blockchain and advanced cyber security solutions hold an immense potential to accelerate entrepreneurship and innovation. By strengthening the digital lending ecosystem, these technologies can enhance operational efficiency, reduce risks, and establish a solid foundation for sustained economic growth.” - Ondrej Kubik, CEO, Home Credit India

"The 2025 Union Budget presents a crucial opportunity to strengthen India’s position in the global fashion industry. Reducing GST on apparel from 12% to 5% can enhance affordability, boost consumer demand, and drive overall industry growth. With the textile sector contributing 2.3% to GDP and employing over 45 million people, simplifying e-commerce regulations will enable businesses, particularly MSMEs and start-ups, to expand and compete more effectively. By implementing policies that support domestic manufacturing and streamline operations, India can take a significant step toward becoming a global hub for premium fashion." — Sidhant Keshwani, Founder & CEO, Libas

“As the Union Budget approaches, we look forward to decisive and visionary measures that will not only accelerate the adoption of digital payments but also position India as a global benchmark for a secure, inclusive, and innovation-driven digital economy. Groundbreaking initiatives, such as linking credit cards with UPI and leveraging UPI’s extensive reach across the country, have redefined payment convenience and empowered consumers with instant access to credit across diverse customer strata.

In the days to come, we hope the government will prioritize investments in advanced digital infrastructure, robust cybersecurity frameworks, and forward-looking regulatory enhancements. These measures are crucial to enabling alternative credit assessment models, encouraging responsible lending practices, and building consumer trust in an interconnected and fast-evolving digital world." - Ravindra Rai, Managing Director, and CEO of BOBCARD LIMITED

“The Government has been instrumental in fuelling the growth of India’s startup ecosystem through landmark initiatives like Startup India, the Fund of Funds for Startups, and platforms like the Startup Mahakumbh, which celebrate the spirit of entrepreneurship and innovation. As we approach the Union Budget 2025, we are hopeful for policies that further strengthen India’s thriving digital and entrepreneurial ecosystem. Targeted measures to simplify compliance, expand access to early-stage funding, and incentivize R&D will be crucial in sustaining the momentum of innovation across sectors. With India’s startup ecosystem maturing, initiatives that encourage private equity and venture capital investments in emerging areas such as edtech, agritech, and AI will play a pivotal role in ensuring long-term growth and global competitiveness. Additionally, creating frameworks that support skill development and digital inclusion will empower talent across the country to actively participate in this growth journey. The government’s continued focus on entrepreneurship can catalyze the next wave of transformative startups, strengthening India’s position as a global hub for innovation and economic resilience.”  -  Sanjeev Bikhchandani, Co-founder and Executive Vice Chairman, Info Edge

The agricultural sector—the backbone of the Indian economy—is looking forward to announcements related to yield improvement, climate-resilient farming and empowering FPOs or farmer producer organisations.

Deloitte, in its budget recommendations, said the government should announce crop-wise programmes for selected crop clusters with support for the use of specialised machinery, the right package of practices, availability and affordability of inputs, as well as timely crop advisory and extension services for farmers or crop-focused FPOs.

More here.

The capital outlay for defence, Prabhudas Lilladher’s Amit Anwani believes, is expected to grow by 7-8 percent in FY26, similar to previous years.

"Assuming that the budget will be around Rs 1.9 lakh crore, the allocation might increase for mobility vehicles, Navy, and perhaps remain steady for aerospace," says Anwani.

On the sector, Anwani noted that the Ministry of Defence recently announced a Rs 21,700 crore work clearance, emphasising its commitment to reform and modernisation. The focus is on capability building in areas such as robotics, AI, training, and simulation, alongside fast-tracking key projects.

Top executives of hospital majors are pushing for an Infrastructure Linked Incentive (ILI) for new hospitals, reductions in GST for essential services, and lower customs duties on advanced cancer treatment drugs and devices.

Suneeta Reddy, Managing Director of Apollo Hospitals, highlights the burden of input GST, which escalates costs by 8-10 percent. She suggests reducing GST on key input services like lease rentals, housekeeping, and man power to 5 percent.

"As we dream of Viksit Bharat in 2047, it cannot happen without Swasth Bharat. Health is a very significant area of development in India. Despite the progress achieved so far, health expenditure has been a mere 3.37% of GDP trailing the targeted 5% of GDP for universal coverage of health services. The major challenges lie in addressing infrastructural gaps, shortages of medical professionals, and ensuring services are offered at more affordable rates.

Beyond curative solutions, preventive healthcare needs to be at the fore if it is to be sustainable in the long run. The nutraceutical sector is capable of playing an extremely important role in not only bringing down healthcare costs but also impacting overall health outcomes.

However, the common man cannot reap the benefits of nutraceuticals when GST is at 18%. Reducing it to 5-10% will align it with pharmaceuticals and make such preventive solutions more accessible and affordable for consumers." - Sanjaya Mariwala, Executive Chairman and Managing Director , OmniActive Health Technologies and President of the Association of Herbal and Nutraceutical Manufacturers of India

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.

“As India strives to become a worldwide leader in the digital economy, the 2025 Budget must include cybersecurity as an essential factor. Strategic investments in advanced security infrastructure, as well as incentives for research and development in digital security solutions, are critical for promoting innovation and retaining India's economic advantage. Furthermore, extensive budgetary resources for national digital literacy initiatives will equip citizens with the skills they need to traverse the internet realm safely, decreasing fraud vulnerabilities. Overall, the future of India's digital security lies in meaningful public-private partnerships. By fostering collaborations, the government can leverage industry and policy to create a robust and secure digital ecosystem that protects our citizens while strengthening India's position as a trusted digital economy leader.” - Pawan Yadav, Product Manager, Jukshio Technologies

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.

"India’s IT sector is evolving rapidly, but gaps remain in fully realizing the Government’s ‘Digital India’ vision. The upcoming Union Budget should prioritize digitalization and technology advancement to drive innovation across industries like Telecommunications, Financial Services, Healthcare, and Education.

Key focus areas include addressing the alarming rise in financial crimes, fraud, and complex cyberattacks by building a skilled cybersecurity and fraud detection talent pool. The Government should also incentivize the adoption of cutting-edge technologies like AI, Cloud, Blockchain, 5G, and IoT to enhance fraud prevention capabilities, foster innovation, and create significant employment opportunities. These efforts will accelerate India’s journey toward a secure and digitally empowered economy." - Jaepy Kurian, Senior Vice President & India Delivery Head, Orion Innovation.

“The travel and tourism industry anticipates that the Union Budget will address key challenges and foster sustained growth. Rationalizing GST rates for travel agents and introducing input tax credits can reduce operational costs and enhance market competitiveness. Simplifying compliance processes can further improve administrative efficiency for businesses. Emphasizing digitization and targeted skill development programs can empower travel agents to adapt to emerging industry trends. Additionally, promoting domestic and inbound tourism through innovative awareness campaigns and eco-friendly initiatives can drive sustainable development and bolster the sector’s long-term potential” - Hussain Patel, Director TripJack.

An imported need for increased allocation toward research and development, a cornerstone of innovation in the sector is needed, says Shaunak Amin, Managing Director, Alembic Pharmaceuticals Limited.

"Encouraging public-private partnerships and investing in shared research infrastructure can provide the much-needed impetus for cutting-edge drug development and clinical research. Investments in the upgradation of National Institutes of Pharmaceutical Education and Research (NIPERs) to global standards will further establish India as a leader in pharmaceutical innovation.

Policy rationalization in areas such as export incentives and streamlined customs processes will be vital to maintain India’s dominance in the global supply chain, which currently accounts for 20% of the global pharma market, including a 40% share in the U.S. generic drug demand. Addressing affordability and accessibility through measures such as rationalizing taxes on life-saving drugs and medical equipment will also play a critical role in improving domestic healthcare outcomes." - Shaunak Amin, Managing Director, Alembic Pharmaceuticals Limited.

Ahead of the Union Budget, MakeMyTrip co-founder and Group CEO Rajesh Magow on Monday said the hospitality sector's long-pending demand for an "industry” status and continued focus on infrastructure development to ensure last-mile connectivity are crucial to realising its full potential.

"The hope is that it should be growth-oriented budget, which effectively should set the tone for pretty much every sector, including travel and tourism sector for us as well. “And within that, you know, the long pending demand of the hospitality sector, on getting the industry status continues to remain, and I think, and it's an important one, for the overall industry," Magow said in an interview with PTI.

“The Union Budget 2025 is poised to accelerate India's position as a global AI leader. Expect significant investments in AI research, focusing on indigenous large language models and AI chip development. Comprehensive AI skilling initiatives targeting urban and tier-2/3 cities will prepare a future-ready workforce. Policies under "AI for Bharat" will likely prioritize healthcare, agriculture, and education, addressing India's unique challenges. The recently approved national AI mission, 'INDIAai,' aims to foster AI innovation and collaboration across academia, industry, and government. With evolving regulatory frameworks ensuring ethical AI use, tax incentives for AI hardware manufacturing and funding for AI startups will bolster the "Make in India" vision, propelling economic growth through technology-driven solutions.” - Bharat Chadha, Partner, Tech Consulting, Uniqus Consultech.

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.

"With inflation showing no signs of abating within the Reserve Bank of India's target range in the near future, I believe the finance minister will implement necessary policy measures to curb price increases. This could involve reducing taxes on consumer goods such as packaged food and edible oils. This would boost household disposable income and positively impact private consumption. Furthermore, I believe the Budget should include measures to encourage savings through tax rationalisation and stimulate loan growth. A separate announcement on developing future-proof digital infrastructure for the financial sector in the era of artificial intelligence is also anticipated,"  - V. P. Nandakumar, MD & CEO at Manappuram Finance Limited.

Stating that the upcoming Union Budget presents an opportunity to address some pressing needs of the automotive sector, Skoda Auto Volkswagen India MD & CEO Piyush Arora said, "A long-term vision for favourable tax structure catering to different automotive technologies would certainly benefit the industry." The product development cycles are quite lengthy and require substantial investment which needs to be considered, he said, adding, "simplifying the GST structure for the different classes of vehicles and components is another ask".

"FY 2025-26 is likely to play a pivotal role in realizing India’s aspirations. With young India becoming highly mobile, entrepreneurial, and increasingly tech-savvy, the upcoming Union Budget is expected to address their needs by fostering supportive policies and a conducive business environment. Over the last decade, India has demonstrated remarkable progress in physical infrastructure and Digital Public Infrastructure (DPI), and this momentum is bound to accelerate with focus on last-mile connectivity and infrastructure development in tier-II and III cities as well beyond. A budget emphasizing infrastructure, sustainable mobility, and industrial competitiveness will not only propel the automotive and allied sectors but also significantly contribute to India’s growth story." -  Dr. Raghupati Singhania, Chairman & Managing Director, JK Tyre & Industries Ltd.

“We hope the upcoming Union Budget 2025 will continue its  focus on the modernization of rolling stock, urban mobility, and infrastructure enhancements. India's metro systems, now among the largest globally, have significantly transformed urban life and mobility. Equally crucial is the continued development of safety, infra, and rolling stock to improve trade connectivity and drive economic growth. We anticipate a strong commitment to the "Make in India" initiative and reflective policies within the sector, strengthening domestic manufacturing and boosting exports. We hope that the budget would provide a clear roadmap for India’s transportation future, positioning the nation as a global leader in seamless mobility.” - Umesh Chowdhary, VC & MD, Titagarh Rail Systems Ltd.

Automobile industry wants the government to provide merit-based policies to support a full range of green technologies and alternative fuels besides allocations to facilitate electric vehicle ecosystem like charging infrastructure to further accelerate sustainable mobility.

Mercedes-Benz India MD and CEO Santosh Iyer said the company hopes for forward looking measures from the budget that fosters sustainable economic growth and enhances India's global competitiveness.

"Continued push for BEV adoption by pursuing the existing incentives, infrastructure development and R&D initiatives will be crucial in accelerating India's transition to green mobility, positioning us as a key player in the global BEV value chain," he added.

India's apex IT industry body Nasscom has batted for tweaks in safe harbour rules and widening the scope for utilisation of SEZ reinvestment reserves in its Budget wishlist, while advocating for creation of a central deeptech fund to bolster startup ecosystem in India.

Creation of a grant framework for the deeptech ecosystem, and making the deferment of the time of payment of tax on Employee Stock Option Plan available to employees of all DPIIT-recognized startups also tops the Budget expectations of the industry.