Budget 2025 Expectations: Real estate sector aims for raising tax exemption limit on home loan interest

As the budget approaches, emphasizing data security and emerging technologies is critical for India's tech evolution. With rapid advancements in digital infrastructure, robust cybersecurity is more important than ever. I advocate for policies that strengthen data protection, foster R&D in cybersecurity and blockchain, and promote streamlined, user-centric eKYC solutions. These initiatives will enhance digital user experience and trust, driving significant investment and fostering a secure environment for startups. Furthermore, clear regulatory frameworks and skill development programs focused on data security are essential to prepare our workforce for emerging digital threats. This budget can position India as a global leader in data security, showcasing a visionary approach to secure technological growth.” said Naman Mishra Founder Sedax

Routhu Nagaraju, Chief Executive Officer of Experion Developers said, “With the Union Budget of 2025-26 approaching, real estate developers and other industry stakeholders have expressed their hopes for regulations and reforms that will help address the housing needs of the country and boost overall economic growth. In my opinion, it is time to take note of the changing needs of the society and align its policies in accordance with the same. A special tax dispensation may be considered to encourage organised development of rental housing, student housing, dormitories for industrial workers. Tax incentives will bring in much needed focus onto these segments and attract institutional capital enabling large scale development of alternate housing to address a growing need of the society.

Another important step would be to align the pricing cap of Rs. 45 lakhs for affordable housing, set in 2017, with the current market reality so that the benefit of lower GST rate can be availed by those looking to buy affordable housing. Considering the average inflation over the last seven years, affordable housing definition may be amended to cover houses priced up to Rs. 80 lakhs.

The forthcoming budget is seen as a pathway to sustainable growth. We look forward to the budget proposals with optimism”.

Deepak Ravindran, Co-founder & CEO of KiranaPro, said, “As we approach the Union Budget 2025, we at KiranaPro are anticipating policy measures that will further bolster the quick commerce sector, particularly benefiting kirana stores and small retailers. The rapid expansion of quick commerce, projected to grow by over 75% year-on-year in 2025, underscores the need for supportive regulations that ensure a level playing field for all market participants.

The integration of advanced technologies, such as AI and machine learning, is revolutionizing inventory management, personalized customer experiences, and efficient delivery models. By adopting these technologies, kirana stores can enhance their competitiveness in an evolving retail landscape. We hope the upcoming budget will introduce incentives and support mechanisms to facilitate the digital transformation of these traditional retailers.

Furthermore, as quick commerce extends its reach beyond tier-1 cities into tier-2 and tier-3 regions, it is crucial to address the unique challenges faced by small retailers in these areas. Tailored policy interventions can empower these businesses to effectively integrate into the digital economy, thereby promoting inclusive growth across the nation.

KiranaPro remains committed to collaborating with policymakers, industry stakeholders, and the retail community to drive sustainable growth and innovation in the sector. We believe that with the right policy framework, India's retail ecosystem can achieve new heights, benefiting consumers and businesses alike.”

Railway stocks surged on Thursday amid reports that the Union Budget 2025-26, scheduled for February 1, could see a significant 15-18 percent hike in budgetary allocation for the Ministry of Railways.

The anticipated increase has boosted investor sentiment, reversing the downward trend seen in recent months.

Details here.

FHRAI urges the government to grant infrastructure status to hotel and convention center projects costing ₹10 crore and above in Budget 2025-26.

FHRAI calls for simplifying licensing and approval processes through a single-window clearance system to encourage investment in the hospitality sector.

India’s 2025 budget is expected to focus strongly on climate action. The government aims to meet its climate goals while supporting development. Increased funding for climate resilience and green infrastructure is likely, said Manoj Bansal, Partner, Grant Thornton Bharat.

Policies for clean energy and green technologies are important priorities. The budget may also include support for domestic carbon markets, set to launch next year. This budget could boost innovation, create green jobs, and help India move toward a low-carbon future while meeting global climate commitments, he added.

Subsidies and tax benefits for domestic manufacturing would encourage local production and reduce dependency on imports.

Increased budget allocation for menstrual health awareness campaigns is crucial for breaking taboos and fostering education around menstruation.

Special incentives for startups and MSMEs in this sector would drive innovation and scale-up efforts to reach marginalized groups, said Vikas Bagaria, founder and CEO, Pee Safe.

The Union Budget 2025 presents a crucial opportunity to address longstanding challenges and catalyze growth in the real estate sector. Raising the tax exemption limit on home loan interest, which has remained stagnant for years, is essential to easing the financial burden on homebuyers and enhancing housing affordability, said Dhruv Agarwala, Group CEO, Housing.com

Realtors' apex body CREDAI has suggested that the government in the upcoming Budget should fix income tax on affordable housing projects at only 15 per cent, saying this would help enhance supply of low-cost homes that have maximum demand.

The Confederation of Real Estate Developers' Associations of India (CREDAI), which represents more than 13,000 developers, has made many suggestions for the upcoming Union Budget to address critical challenges faced by the sector.

Insurers are seeking tax benefits for buyers and incentives for selling policies in their wishlist for the upcoming Union Budget as the country is projected to emerge as the G20's fastest-growing insurance market.

In 2023-24, the country's insurance penetration was at 3.7 per cent compared to 4 per cent in 2022-23, according to Insurance Regulatory and Development Authority of India (Irdai).

The insurance penetration for the life insurance industry marginally declined to 2.8 per cent during 2023-24 from 3 per cent in the preceding year. The penetration with respect to the non-life insurance industry remained the same at 1 per cent during 2023-24 as in 2022-23.

The government should target a capital spending of Rs 11 lakh crore in the Budget for the next fiscal while giving inflation-adjusted relief on personal income tax to boost consumer spending, rating agency ICRA said on Wednesday.

ICRA Chief Economist Aditi Nayar said last year's record budgeted capital expenditure of Rs 11.11 lakh crore is likely to fall short by about Rs 1.4 lakh crore and the next year's target should be fixed at the last year's level with a focus on keeping borrowing within reasonable limits.

Vidita Kochar, Co Founder, Jewelbox said the gems and jewellery sector looks forward to policies that foster growth and innovation.

Extending the Production-Linked Incentive (PLI) scheme to our sector can drive exports and domestic value addition, creating jobs and attracting investments.

Reducing import duties on advanced machinery will enable access to cutting-edge technology, while export subsidies and dedicated zones can strengthen our global competitiveness. Additionally, incentives for research and green practices are critical to ensuring sustainable growth in this evolving industry.

Jairaj Bhattacharya, Co-Founder and CEO of ConveGenius, emphasized the potential of AI in addressing systemic challenges within the education sector, in a News18 report.

“AI can bridge regional disparities, tackle teacher shortages, and enhance the quality of learning by personalizing education and driving administrative efficiencies," Bhattacharya noted.

He urged the government to prioritize public-private collaborations and leverage digital public infrastructure to create accessible AI-driven solutions that promote equitable, high-quality education.

• The year 2024 witnessed remarkable growth in crypto assets, highlighted by Bitcoin crossing the $100,000 mark and a surge in institutional investments.
• Amid this growth, Indian investors showed increased interest in meme coins. According to a report by CoinSwitch, Dogecoin emerged as the most invested coin, while Shiba Inu topped the list as the most traded coin.

Although crypto taxation laws were introduced earlier, the government has yet to address the legality of these assets, a long-standing demand of the crypto industry. “India’s stance on crypto regulation is being closely watched by nations globally. It plays a crucial role in the growth of the global crypto ecosystem and India’s ambition to become a financial and business hub. A balanced approach in the 2025 Budget could unlock significant potential for innovation and financial inclusion in crypto,” said Gracy Chen, CEO of Bitget.

Industry experts consider the introduction of crypto taxation laws in 2023 a positive move, highlighting India’s readiness to embrace a progressive stance. However, they assert that it is now essential for the government to treat the crypto industry on equal footing with other sectors.

The crypto industry has high expectations from the upcoming Union Budget 2025, including the introduction of a well-defined regulatory framework, a reduction in capital gains and transaction taxes, and equal treatment of capital gains from crypto assets with other income sources.

Will individual taxpayers receive any relief? Will Modi 3.0 unveil new welfare schemes? The suspense will end on February 1 when Finance Minister Nirmala Sitharaman presents the Union Budget 2025 in Parliament at 11 a.m. Stay tuned for updates on sectoral wishlists, key agendas, major data points, and more.