Budget 2025 Expectations: Steel industry bats for tax benefits and subsidies

As India gears up for the upcoming Union Budget, key players in the social sector are anticipating critical shifts in policies to drive inclusive development, tackle social inequalities, and strengthen support for vulnerable communities.

The Budget would be presented on Saturday by Finance Minister Nirmala Sitharaman.

Several experts and social organizations have shared their expectations, emphasizing the need for targeted investments, policy innovations, and a focus on women’s empowerment, elderly care, and social entrepreneurship.

Neera Nundy, co-founder of DASRA, highlighted the growing role of philanthropy in complementing government efforts, especially in areas like sustainable cities and women’s leadership.

She noted that while private giving grew by 10 per cent in financial year 2022-2023, much of India’s philanthropic potential remains untapped.

Nundy advocated for aligning private resources with national priorities, calling for favourable policies and tax incentives in the upcoming Union Budget to unlock greater domestic capital.

“We remain optimistic about favourable policies and enhanced tax incentives in the upcoming Union Budget to unlock greater domestic capital from families, individuals, and corporates,” she said.

Jammu and Kashmir Pradesh Congress Committee (JKPCC) president Tariq Hameed Karra on Thursday alleged that the Uniform Civil Code (UCC) and Waqf (Amendment) Bill are part of schemes to spread hatred and divide people of the country.

He also doubted that the forthcoming Union budget would provide any sort of relief to the people faced with growing unemployment and uncontrolled inflation over the past 10 years of the BJP-led government coming to power at the Centre.

Kerala Finance Minister K N Balagopal on Thursday expressed hope that the Union Budget, to be presented by Finance Minister Nirmala Sitharaman on February 1, would include a special package for the state and measures to boost economic growth.

"We have requested a Rs 24,000 crore package from the Centre, and we hope to receive at least a part of it this time," he told reporters here.

Balagopal said that, according to the RBI's State of State Finances report, the country is falling short of its projected financial growth, necessitating increased capital investment and greater borrowing flexibility for states to stimulate economic growth.

Sanitaryware players expect the government to focus on rationalising GST rates on sanitaryware products to make them more accessible and encourage sustainable construction practices through policy measures in the Union budget for the next fiscal.

The Union Government is set to present the FY 2025-26 budget on February 1. The industry is of the view that such measures will not only benefit the sector but also align with India’s environmental goals.

“The upcoming Union Budget presents an opportunity to strengthen these sectors through thoughtful reforms and investments.

“By addressing accessibility, sustainability, and infrastructure needs, we can collectively enhance living standards and contribute to India’s long-term economic progress the board”, Priya Rustogi, Leader India & Subcon, Lixil Water Technology (LWT) IMEA said.

An increase in tax exemptions for insurance premiums will incentivise citizens to invest in insurance policies, providing a much-needed boost to the general insurance sector, writes Alok Kumar Agarwal, MD & CEO, Zurich Kotak General Insurance Company (India). Read more

The FY26 Budget may project a 20 per cent increase in capex spending to drive economic activity, leave more disposable income in the hands of people and target a fiscal deficit of 4.4 per cent of GDP for the fiscal ending March 2026, a EY report said on Thursday.

EY India Chief Policy Advisor DK Srivastava said amid continuing global uncertainties, India may have to rely largely on domestic demand drivers to support the growth momentum.

"The FY26 budget should therefore restore the momentum of growth in GoI's capital expenditure. This may be supplemented by some rate rationalisation and income tax deductions aimed at increasing personal disposable incomes, particularly in the hands of lower income and lower middle-income groups," he said. The upcoming budget must balance fiscal prudence with growth-oriented measures.

Real estate developers have their own wish lists for Union finance minister Nirmala Sitharaman ahead of the upcoming budget. From demand for industry status for the sector to a special push for affordable housing, the list is not short.

Here are five key things the real estate sector hopes to see when Sitharaman presents the budget on February 1. Click to read

From enhancing incentives for equipment manufacturing to reintroducing a 15 percent corporate tax concession for new production units, the power sector is hoping the upcoming FY26 Union budget will be aligned towards accelerating green energy projects in India. Read more

From enhancing incentives for equipment manufacturing to reintroducing a 15 percent corporate tax concession for new production units, the power sector is hoping the upcoming FY26 union budget will be aligned towards accelerating green energy projects in India.

Industry stakeholders are hoping the budget would address some of their challenges, like transmission expansion, manufacturing bottlenecks including dumping by China, and taxation.

Details here.

"The education sector is ripe for AI-driven transformation, with global EdTech AI solutions expected to reach $80 billion by 2030. We anticipate budget allocations for developing personalized learning platforms powered by adaptive AI algorithms. Key focus areas should include funding for AI-enabled student assessment tools, virtual learning environments, and automated content generation systems. The government should introduce incentives for educational institutions implementing AI-based administrative systems and learning analytics platforms. These measures will democratize quality education while creating a future-ready workforce equipped with digital skills." -Ashutosh Upadhyay, Founder, Cognio Labs

“The Union Budget 2024 introduced significant measures like reduced TDS rates, laying a strong foundation for SMEs and the e-commerce sector. As we look ahead to the Union Budget 2025, we hope for further reforms that simplify taxes and regulations, ease compliance, and strengthen digital infrastructure. Specifically, relaxing the requirement for a Physical Place of Business (PPOB) in every state by enabling a Virtual Place of Business will greatly enhance the ease of doing business for online sellers. Additionally, facilitating the paperless movement of goods for B2C shipments will streamline operations and support the growth of small businesses in India, fostering innovation and inclusive growth in India's digital economy.” - Dhiresh Bansal, Chief Financial Officer at Meesho

“As the Union Budget 2025 approaches, the healthcare sector anticipates several key measures to address its growing challenges and capitalise on emerging opportunities. A primary expectation is reduction in GST on health insurance, healthcare products and services. This would make essential care more affordable. Additionally, there is a push for the integration of AI-driven technologies, which could enhance diagnostic accuracy, optimise treatment plans, and increase sector productivity. Lastly, healthcare funding should increase to 2.5% of GDP to support infrastructure and accessibility of healthcare services for all.” - Khushboo Aggarwal, Founder, Zyla Health

“The upcoming Union Budget 2025-26 holds immense potential to strengthen the pharmaceutical sector and position India as a global pharmaceutical leader. By increasing public healthcare spending, fostering innovation through public-private partnerships, and investing in advanced research and development, the government can accelerate the delivery of cutting-edge therapies. These initiatives will enhance internal capabilities, drive drug discovery, and improve the accessibility of innovative medicines. Additionally, a robust allocation towards healthcare infrastructure, particularly in Tier 2 and Tier 3 cities, will ensure that quality care reaches underserved regions. We are optimistic that this budget will build upon the government’s ongoing commitment to fostering a healthier India while ensuring equitable access to healthcare for all.” - Dr Ruchi Sogarwal, Director, Corporate Affairs – Takeda Biopharmaceuticals India Pvt Ltd.

"As the Union Budget 2025 approaches, Indian MSMEs are anticipating reforms and incentives to bolster their growth and global competitiveness. Key expectations include increased access to affordable credit through enhanced schemes and reduced compliance burdens to streamline operations. MSMEs are seeking further digitization support to integrate technology and e-commerce, along with tax relief measures such as increased turnover limits for GST exemptions. Strengthened export incentives and skill development programs are also to help MSMEs penetrate international markets and address workforce challenges. With focused measures, the budget is expected to create a conducive ecosystem for MSMEs to thrive and sustain their role in India's economic trajectory." - Saahil Goel, MD & CEO, Shiprocket

“From the Union budget, we are expecting the government to focus on infrastructure development and smart city initiatives, given that the pace of investment in AI-driven technologies is accelerating globally in security, surveillance, and efficiency. India is in an excellent position to take the lead in these areas, as AI will radically transform the key sectors, such as traffic management and public safety, through embracing smart technologies. Additionally, improved real-time data analysis, optimized management of traffic flow, and proper prediction of security threats would enhance the overall road safety & security framework of the nation." - Kapil Bardeja, Co Founder & CEO, Vehant Technologies

"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."  - Dipankar Sarkar, Co-Founder & CTO of KiranaPro

" 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.

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

“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

With the Union Budget 2025 just around the corner, we anticipate a higher budget allocation towards school infrastructure development, especially at the grassroots level, and an emphasis on education via the Right to Education (RTI) Act. In the Union Budget 2024, the allocation for Samagra Shiksha Abhiyan (SSA) was ₹37,500 crores, and the Department of School Education was allocated ₹73,008 crores.  These investments have already begun to enhance the quality of education by offering students supportive learning environments, access to modern educational tools and an overall push to improve the basic infrastructure. By further expanding the budget allocation in 2025, we can enhance school infrastructure and physical education, ensuring that all students have access to a quality learning environment. Additionally, we can expedite technology integration and digital education, bridging the digital divide and ensuring that all students, irrespective of their socio-economic background, have equal opportunities to thrive. " - Chaitanya Dev Singh, National President, Round Table India

"The path to global leadership must be paved with sustainable practices. As we scale our operations, integrating green manufacturing technologies isn't just an environmental choice – it's a strategic imperative that will define our industry's future competitiveness. By incentivizing eco-friendly production methods, we can position India as a pioneer in sustainable pharmaceutical manufacturing while meeting our environmental commitments.” - Priyanka Chigurupati, Executive Director, Granules India

"The Union Budget 2025 is a big moment for the Indian stock market, and investors have high hopes for some much-needed changes. One of the key expectations is a better tax structure for dividends. Right now, investors have to pay tax on the dividends they receive, which hits those in higher tax brackets even harder. It would be a huge relief if the government lowers this tax or introduces a separate, lower rate. Simplifying capital gains tax and offering incentives for small investors could also encourage more people to participate in the market. On top of that, promoting financial education and investor-friendly policies would help create a stronger investment environment. With the right steps, this budget can bring stability and growth to the market." - Mahek Tomer, Founder & CEO, India's Future Investors

"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.

Rajamani Krishnamurti, President of Indian Stainless Steel Development Association, said the industry expects tax benefits and subsidies for adopting green steel technologies to align with the country's carbon reduction goals and foster innovation in sustainable manufacturing.

It also expects the government to retain export duties on chrome ore to secure domestic supply and prevent resource depletion.

JSL MD Abhyuday Jindal said, "We urge the government to raise the basic customs duty on stainless steel products to 15 per cent for all non-free trade agreement countries.

"These steps will further strengthen the domestic stainless steel sector and position it as a vital driver of India's Viksit Bharat@2047 vision," he added.

Domestic steel makers said they are expecting protectionist measures in the upcoming Budget to safeguard the sector from dumping.

AMNS India CEO Dilip Oommen said he expects the government to continue its focus on infrastructure development while enhancing the ease of doing business.

JSW Steel Joint MD & CEO Jayant Acharya said a level-playing field and measures against unfair trade will be essential for maintaining growth momentum of the Indian steel industry, reported PTI.

Centre should provide substantial financial backing for infrastructure, employment generation, and emerging technologies like Artificial Intelligence (AI) in the upcoming Union Budget, says Lok Sabha MP Shrikant Shinde.