Union Finance Minister Nirmala Sitharaman will deliver the 2025-26 Budget on February 1. In the lead-up to the presentation, multiple sectors have voiced their concerns and expectations.
The finance minister is scheduled to present the Budget speech in Parliament at 11 am on February 1, 2025.
RBI Monetary Policy Committee member Nagesh Kumar said that Finance Minister Nirmala Sitharaman's focus in the 2025-26 Budget should be on capital expenditure and infrastructure investment to drive economic growth and ensure its long-term sustainability.
Kumar, a renowned economist, stressed that sustaining and expanding infrastructure spending would be crucial for fostering a stronger economic growth trajectory for India.
"In light of the slight economic slowdown we observed in the second quarter, and in general, there is a pressing need to enhance growth and ensure it becomes more robust and sustainable," Kumar stated.
Boost tax deduction for home loans, enhance affordable housing: IIFL Home Finance
Abhishikta Munjal, chief risk officer, IIFL Home Finance said, "The upcoming Union Budget 2025 provides a key opportunity to address pressing issues in the home loan and affordable housing sectors. Increasing the tax deduction limit for housing loan interest under Section 24(b) from Rs 2 lakh to Rs 3–5 lakh would offer much-needed relief to middle-income homebuyers and encourage more investment in residential real estate."
Munjal added, "Additionally, boosting incentives under the Pradhan Mantri Awas Yojana 2.0 (PMAY) and reviving the Credit Linked Subsidy Scheme (CLSS) would further stimulate demand in the affordable housing segment. Simplifying access to financing for NBFCs that serve underserved communities and lowering GST on essential construction materials like cement would help reduce costs and improve affordability for both buyers and developers."
3:44 PM
India eyes 30% EV sales by 2030 with Budget 2025 supporting green mobility: Lord's Automative CEO
Veer Singh, CEO of Lord's Automative Pvt. Ltd, said, "The transition to green mobility is likely to be further expedited for India by the 2025 Budget, setting a target to achieve 30 per cent penetration of electric vehicles in the total automobile sales by 2030. Such penetration would certainly be possible in the country as India is more price-sensitive compared to other places."
Singh further said, "The budget will support the rapidly growing EV industry by being standardised rather than being subjected to monopolistic activities. There might be a good base for sustainable mobility with the budget by advocating local manufacturing, self-reliance in the EV supply chain, and measures to establish India as a global hub for EV manufacturing."
2:54 PM
MSMEs call for export incentives, tax reforms & expansion of PLI scheme: MD Wonderchef
Ravi Saxena, Wonderchef co-founder and managing director, said, "MSMEs are urging the Union Budget 2025-26 to prioritise reduction in compliance burdens, enhancing export incentives and expanding the PLI scheme to drive manufacturing growth. The industry also seeks tax reforms and better access to essential inputs like steel, aluminium and plastics. Speedier dispute resolution mechanisms are critical for improving competitiveness and unlocking Indian business potential in domestic and global markets."
He further said, "However, the declining share of consumer spending in GDP is a pressing concern that demands attention. A strong focus on boosting consumer spending can stimulate demand across industries, encouraging production, investment, and job creation."
1:37 PM
Budget 2025 has potential to champion equitable education access, says MD LEO1
Rohit Gajbhiye, founder and MD of LEO1, said, "As Budget 2025 approaches, the edu-fintech industry stands optimistic about progressive measures to enhance financial accessibility and innovation in education. Addressing affordability through interest-free or subsidised schemes, digital financial solutions, and tax incentives for education-related expenses can empower students and institutions alike."
He further said, "Policies encouraging partnerships between fintech players and educational institutions will accelerate the adoption of technology-driven financial systems, bridging funding gaps and improving cash flow management. This budget has the potential to champion equitable education access while driving innovation and collaboration in the Edu-Fintech space, contributing to India's economic and social progress."
12:46 PM
Govt should simplify tax benefits, enhance accessibility in healthcare: MD SBI General Insurance
Naveen Chandra Jha, MD and CEO, SBI General Insurance, “Health insurance has emerged as a crucial safety net for Indian families, shielding them from unexpected medical expenses. According to the IBEF report, India is the 4th largest general insurance market in Asia and the 14th largest globally. Data from IRDAI’s annual reports reveals that health insurance has grown steadily at approximately 25% annually over the past three years, highlighting its importance in protecting households."
Jha added, "Anticipated policy measures include enhancing accessibility, simplifying tax benefits, and encouraging innovation in insurance products. Initiatives such as Bima Sugam, designed to achieve the goal of ‘Insurance for All’ by 2047, are expected to receive regulatory and fiscal support to address the protection gap."
12:15 PM
Tax benefits on retirement plans and annuities can encourage more investments: NPV & Associates LLP
Akshay Jain, partner, Direct Tax, NPV & Associates LLP, said, "Introducing a separate section for allowing deduction for Term Insurance and life insurance could help to promote its adoption. Additionally, offering tax benefits for annuity and retirement plans would encourage more people to invest in these products."
He further added, "The threshold limit for deduction for health insurance under section 80D should be raised to Rs 50,000 for individuals and Rs 1,00,000 for senior citizens to provide greater financial relief. The deduction should be made available under the new tax regime as well."
11:57 AM
Govt needs to focus on tax relief and incentives in real estate sector: WSB Real Estate Partners
Kaushik Desai, managing partner, WSB Real Estate Partners, said, "While tax reliefs and other incentives are common expectations, the government is likely to maintain its focus on building robust infrastructure across the country, which would likely drive a secular, long-term growth, across various real estate asset classes."
He added, "The government should also focus on the affordable housing sector and review the existing limits. The sector has seen slow growth due to rising development cost and scarcity of urban land where affordable housing is most needed. The government should look to revive the sector with a revision in the ceiling limits along with better tax benefits and a broader scope."
 "Union Budget 2025 expectations highlights: Budget should focus on infra spending, says MPC member")
