Budget 2025 Expectations: EdTech industry seek enhanced allocation for digital infra

Budget 2025 holds immense potential to redefine housing affordability for first-time buyers. By combining targeted tax benefits, innovative financial incentives, and streamlined regulatory reforms, the government can create a robust framework that encourages homeownership. Addressing critical issues such as higher interest deductions, incentivizing states to reduce stamp duties, and promoting green housing can significantly ease the burden on new buyers. Furthermore, enhancing affordable housing definitions and reinstating deductions like Section 80EEA can broaden the scope of benefits.

On the regulatory front, empowering homebuyers through the Insolvency and Bankruptcy Code (IBC) and expediting resolutions for stalled projects will be instrumental in rebuilding trust in the real estate sector. Increased allocations to the SWAMIH fund and strengthening the National Company Law Tribunal could further ensure timely project completions, reducing uncertainties.

Together, these measures can align with the nation’s vision of 'Housing for All,' ensuring affordability, sustainability, and confidence for first-time homebuyers.”- Punit Shah, Partner, Dhruva Advisors

As India gears up for the presentation of the Union Budget for FY26, the focus remains on striking a fine balance between fiscal consolidation and economic expansion. The government has set an ambitious target of reducing the fiscal deficit to below 4.5% of GDP by FY26, necessitating prudent fiscal management without stifling growth momentum. Against the backdrop of slower domestic economic growth (5.4% in Q2-FY25 vs. 6.8% RBI forecast), a weakening currency, and global uncertainties, this budget will be pivotal in shaping India’s economic trajectory. Read the opinion here

By 2025, AI investments are anticipated to become a significant driver of enterprise technology spending, with a projected CAGR of 25-35%, and global AI spending is expected to reach $1.5 to $2 trillion by 2030. As industries such as manufacturing, healthcare, financial services, and EdTech undergo AI-driven transformation, Union Budget 2025 presents a critical opportunity for India to strengthen its position as a global AI leader.

We hope the upcoming budget prioritizes AI-focused R&D investments, skill development programs, and tax incentives for AI adoption. These measures will not only drive innovation but also empower the Indian IT and tech ecosystem to tap into the immense potential of AI, creating a ripple effect across key sectors and contributing to India's economic growth."-Kalyan Konda, Executive Director and CEO, QualiZeal

The Union Budget 2025 presents a pivotal opportunity for the logistics and railways sectors to address key challenges and unlock growth potential. For logistics, implementing the National Logistics Policy to lower costs, investing in multimodal transport hubs, and promoting green logistics through incentives for EVs and eco-friendly technologies are crucial. Simplifying GST compliance, supporting cold chain operators, and enhancing infrastructure under initiatives like Bharatmala and Sagarmala will streamline operations.

In the railways sector, priorities include enhanced funding for dedicated freight corridors, faster development of multimodal logistics parks, and modernization of infrastructure with smart technologies like AI and IoT. Encouraging private investments in wagon leasing and freight operations will further boost capacity. Green initiatives such as rail electrification, hydrogen-powered trains, and energy-efficient terminals can align the sector with sustainability goals. Simplified policies for seamless integration with ports and industrial hubs are critical to supporting multimodal transport and driving supply chain resilience.

Together, these measures can establish a robust and integrated logistics ecosystem, positioning the railways as the backbone of India’s logistics network and a driver of economic growth.”- Rajesh M Mudaliar, Chief Business Officer, Ritco Logistics Ltd

As the government prepares for the launch of the 2025 Union Budget, the education sector eagerly anticipates policies that promise to drive growth, innovation, and inclusivity. Key expectations include the establishment of satellite campuses, streamlined partnerships with foreign universities, and innovative funding options for students aspiring to study abroad.

Furthermore, there is a growing demand for increased allocations toward STEM research and digital learning infrastructures, which are vital for preparing students for the Fourth Industrial Revolution. Public-Private Partnerships (PPP) are also seen as a promising model to enhance digital capabilities and improve student employability.

Ultimately, the upcoming budget holds the promise of not only addressing immediate educational needs but also positioning India as a global leader in higher education, thereby ensuring that our youth are equipped to thrive in an increasingly competitive world.- Poshak Agrawal, Co-founder, Athena Education (Education)

"As we approach the Union Budget, key focus areas must include steps to empower education and bridge digital gaps. A reduction in GST on education services is essential to make quality learning more affordable and accessible, especially for middle-class families. Additionally, targeted investments in rural internet infrastructure are critical to bringing underserved communities into the digital economy, enabling them to participate in new-age learning and employment opportunities." - Anthony Fernandes, Founder - Shaalaa.com

"As we approach Budget 2025, we are hopeful that the government will introduce policies that prioritize digital infrastructure, skill development, and inclusive learning. Increased allocations for technology integration in schools, tax incentives for EdTech platforms, and support for teacher training initiatives can drive innovation and accessibility. With a growing focus on future-ready skills, we anticipate measures that strengthen collaboration between industry and academia, enabling India to nurture a workforce equipped for the challenges of tomorrow. Additionally, to meet ambitious Gross Enrollment Ratio (GER) targets, policies must address outdated infrastructure, expand access to reliable internet, and equip both students and educators with modern tools and training. A comprehensive strategy that prioritizes accessibility and learning outcomes is essential to nurture a workforce ready to excel in an increasingly digital and competitive global economy." - Aarul Malaviya, Founder, Zamit

"We urge the government to consider enhanced allocations for digital infrastructure in underserved regions, enabling widespread access to high-quality education. Tax incentives for research and development in EdTech solutions and subsidies for institutions adopting digital tools would also significantly encourage sector-wide innovation.

Additionally, partnerships between the private sector and government could expedite the integration of cutting-edge technologies like AI, AR/VR, and adaptive learning platforms into mainstream education. A focus on teacher training and content localization would further ensure that digital tools are both impactful and inclusive." -  Vinay Singh, Executive Director and CEO of Q&I and Thomson Digital

Ahead of the upcoming Budget, Rizwan Soomar, Chief Executive Officer and Managing Director, DP World North Africa and India Subcontinent told moneycontrol.com his expectations. He said, “Investments in logistics infrastructure has a direct impact on growth of trade. Further, increase in capex outlay focused on a multimodal transport ecosystem, modernising physical, digital, and social infrastructure, will help in enhancing India's connectivity to emerging and mature markets. Railways are the backbone of India's logistics ecosystem. Look forward to the dedicated rail freight corridors operationalised to scale movement to/from ports and to connect production/consumption centres in India even more effectively. The Budget could also consider introducing new export incentives and strengthening the implementation of existing schemes which will reduce export costs and enhance global competitiveness of India's goods.”

S.K Narvar, Group Chairman, Trident Realty - "As we approach the upcoming budget, our expectations are high for continued growth in the luxury housing sector. The demand for premium residences remains robust, driven by evolving lifestyles and a desire for quality living. We also anticipate significant investments in infrastructure development, particularly in Tier 2 cities, which will enhance connectivity and livability. This is crucial for unlocking the full potential of these emerging markets. A supportive budget can catalyze this growth, fostering an environment where luxury housing thrives and infrastructure projects flourish. Together, these elements will not only elevate the real estate landscape but also contribute to the overall economic development of our nation."

The government, in the ensuing Budget session of Parliament, is likely to introduce a new income tax bill which seeks to simplify the current I-T law, make it comprehensible and reduce the number of pages by about 60 per cent.

Finance Minister Nirmala Sitharaman in her July Budget had announced a comprehensive review of the six-decade old Income Tax Act, 1961, within six months.

Fertiliser stocks have sprung back into action in the run up to the Union Budget 2025, with the market once again speculating on the quantum of subsidies for the sector.

If the government unveils higher spending on rural infrastructure, subsidies, or agricultural reforms in the upcoming Budget, it could boost demand for fertilisers and potentially drive up their stock prices further.

More here.

India's space sector wants the government to spend more on space-based services, slash taxes to spur growth of start-ups and introduce a production-linked incentive scheme for them in the Union Budget.

The Indian space economy is valued at 8.4 billion dollars and the private sector has just about started making a mark by building satellites and launch systems eyeing a manifold increase over the next decade.

“As we anticipate the upcoming union budget, we remain optimistic that the government will prioritise job creation incentives and the effective implementation of labour law reforms. These steps are essential for creating new employment opportunities, promoting skill development, and enhancing the ease of doing business."

The Congress alleged that the Modi government's "retrograde policies" have broken the confidence of investors in India and converted "ease of doing business to unease in doing business".

The upcoming budget must eliminate "raid raj and tax terrorism" to fix this, the opposition party said.

We urge the government to consider making GST on education services ‘zero rated supply’ i.e. the educational institutions be eligible to claim refund of GST paid on input and input services.

Currently, while education services are exempt from GST, institutions face GST on input services such as technology and infrastructure, which they cannot claim credit for. This leads to increased operational costs, forcing educational institutions to pass on these costs to students, making education more expensive. A 0% GST on education services will enable institutions to claim input tax credit, offering financial relief and making education more affordable for students across India. - Naveen Goyal, Founder & CEO at Meritto

The Budget should raise the income tax exemption threshold to Rs 5.7 lakh to match inflation, simplify the TDS system, and equalise tax treatment for bank deposits and equities, think tank GTRI said.

The threshold for an individual's income tax liability has remained unchanged at Rs 2.5 lakh since 2014. Adjusted for an annual inflation rate of 5.7 per cent, Rs 2.5 lakh in 2014 is equivalent to just Rs 1.4 lakh today.

The telecom services industry has batted for the abolition of levies and extension of carry forward of business losses to 16 years in its Budget wishlist, and argued that large traffic generators (LTG) should contribute to USO Fund/Digital Bharat Nidhi Fund.

It has pitched for a cut in licence fee, and suggested that the definition of gross revenue (GR) be made more precise by stipulating that the revenue from activities that requires no licence, would not be a part of it.

India confronts hostile neighbours which makes the current defence spending of 1.9 percent of GDP inadequate. It needs to rise up to 3 percent of GDP and composition of spending has to pivot from salaries and pensions eating up more than half the share to prioritising the modernisation drive by upgrading armaments (Read More)

In her July Budget, Finance Minister Nirmala Sitharaman announced a comprehensive review of the six-decade-old Income Tax Act of 1961, with a deadline of six months. A source told PTI, "The new Income Tax law will be introduced in the Budget session of Parliament. It will be a completely new law, not just an amendment to the existing Act. The draft law is currently being reviewed by the law ministry and is expected to be presented in Parliament during the second half of the Budget session."

A report by Business Standard reveals that the Income Tax Department has received over 6,500 suggestions from stakeholders to simplify the Act. The overhaul, spearheaded by a committee under the Central Board of Direct Taxes (CBDT), aims to remove outdated provisions and reduce compliance burdens. The revised law may feature fewer chapters and sections, significantly cutting down from the current 298 sections and 23 chapters.

The Budget Session of Parliament will run from January 31 to April 4. In addition to the Finance Bill, a bill proposing a new Direct Tax law, modeled after the Direct Tax Code to simplify compliance, is set to be discussed. Many expect Finance Minister Nirmala Sitharaman to announce the Direct Tax Code as a replacement for the existing Income Tax Act. As the Budget Day approaches, here are the latest updates on Union Budget 2025.