Union Budget 2025 expectations updates: Geospatial sector seeks funding for satellite tech

Union Budget 2025 highlights: Catch all the latest developments related to Union Budget 2025 here

Union Finance Minister Nirmala Sitharaman is set to present the 2025-26 Budget on February 1. Ahead of the Budget presentation, various sectors have raised their concerns and expectations. 

India's steel ministry has asked for  $1.74 billion from the budget to offer mills incentives to produce low-carbon steel, two government sources with direct knowledge of the matter told Reuters.

  Finance Minister Nirmala Sitharaman will present the federal budget for the 2025-26 fiscal year on Feb 1. India, the world's biggest steel producer after China, has been working on a green steel policy aimed at decarbonising production of the alloy, part of a wider push towards cutting greenhouse gas emissions under a 2070 net-zero target set by Prime Minister Narendra Modi.

 

The steel ministry plans to offer incentives to reduce emissions, boost research and development and increase raw material efficiency, as well as encourage banks to offer lower interest rates on renewable energy loans.

  Ahead of the Union Budget, the commerce department is talking to the finance ministry on continuing two major export-boosting schemes — Remission of Duties and Taxes on Exported Products (Rodtep) for export-oriented units and special economic zones (SEZs), and the Interest Equalisation Scheme (IES). Both expired on December 31.

 

In the case of Rodtep for SEZs, export-oriented units (EoUs), and Advance Authorisation (AA), the scheme has been extended till January 29 after an intervention from the Prime Minister’s Office (PMO) last week. On the other hand, the IES has not been renewed although the commerce department is seeking a slightly modified version of the scheme to cover at least micro, small, and medium enterprises (MSMEs).

5:48 PM

'Budget must also address the imperative of equitable tax distribution'

''The upcoming Union Budget 2025 presents a significant opportunity for the government to advance its dual objectives of enhancing disposable income and stimulating economic consumption. Measures such as revising personal income tax slabs or increasing exemption limits could provide essential relief to middle-income households, which form the cornerstone of India’s economic framework. Simultaneously, introducing targeted tax incentives for investments in

transformative sectors like green energy, skilling initiatives, and AI-driven startups would not only encourage individual engagement in these high-potential areas but

also align with the nation’s broader strategic priorities for sustainable growth. While the perennial call for tax simplification persists, this budget must also address the imperative of equitable tax distribution. By implementing policies that enhance compliance through greater transparency and streamlined filing processes,

policymakers can expand the tax base while fostering trust among taxpayers.'' said Dr. Suresh Ramanathan, Dean, Great Lakes Institute of Management,

Chennai.

5:40 PM

'There is a critical opportunity to drive job creation'

''As India approaches its upcoming budget, there is a critical opportunity to drive job creation and provide relief to the middle class by fostering a supportive environment for startups and entrepreneurship. The Startup India initiative has already recognized over 1.17 lakh startups, creating more than 15.53 lakh direct jobs by December 2023, and this momentum can be amplified by streamlining regulations, enhancing tax incentives, and improving access to finance. Addressing skill gaps in emerging sectors such as AI, IoT, and green technology through initiatives like the Pradhan Mantri Kaushal Vikas Yojana, which trained over 1.10 crore candidates between 2016 and 2020, is essential to equip the workforce for evolving demands. At the same time, inflation at around 5.5% annually necessitates revisiting tax policies to offer greater deductions on essentials or direct support for startup employees to alleviate middle-class pressures. A comprehensive strategy integrating policy reforms, financial incentives, and skill development will not only strengthen India’s entrepreneurial ecosystem but also address economic challenges faced by the middle class, fostering sustainable growth and inclusive prosperity.'' said Prof. Swapnil Sahoo, Assistant Professor-Strategy and Entrepreneurship, Great Lakes Institute of Management, Gurgaon.

5:27 PM

Union Budget: Priority can be given to research in higher education sector, says Shoolini University

''In the upcoming Union Budget, priority can be given to research and intellectual property in the higher education sector. These two categories should be included as part of Corporate CSR fund deployment to accelerate India’s research journey. Education and research capital expenditure could be classified under priority lending, with a focus on 25-year long-term financing for universities as national assets and subsidized lending rates. These initiatives could accelerate private investment in the sector. Allowing education to operate under a for-profit model can  enhance capital infusion into the sector and make it globally competitive. Additionally, collateral-free education loans for students could enable higher enrollment numbers in a young nation like ours, which currently struggles with sub-

30% levels.'' said Vishal Anand, Founder & Pro Chancellor, Shoolini University.

3:10 PM

Policies should ensure equitable access to quality higher education across all strata: Woxsen University

"As we approach Budget 2025, the education sector eagerly anticipates a renewed emphasis on higher education after the government's commendable steps last year. The need of the hour is greater fiscal allocation towards innovation-driven research, skill-based learning, and global partnerships to enhance the competitiveness of Indian universities on a global scale. While primary and secondary education have rightfully received significant focus in the past, it's imperative now to strengthen higher education to meet the demands of a rapidly evolving global economy.  We hope the government will prioritize policies that foster industry-academia collaboration, promote technological adoption, and ensure equitable access to quality higher education for students across all strata," Praveen K Pula, President and Chancellor, Woxsen University, said.

3:00 PM

Increased support needed for upskilling, reskilling programs: Pradyumn Sharma, CEO of Pragati Software

"The IT sector expects policy measures that enhance India’s position as a global technology leader. As a key contributor to GDP and employment, this budget can fuel innovation, foster talent, and further develop the digital ecosystem. A priority is increased support for upskilling and reskilling programs. Funding for industry-relevant training, in partnership with initiatives like Skill India and Digital India, will help bridge the talent gap and improve India’s global competitiveness. Tax reforms encouraging R&D investment in emerging technologies would stimulate innovation and position Indian companies as global tech leaders," Pradyumn Sharma, CEO of Pragati Software, said.

2:35 PM

Centre must look at tax breaks, grants for regional OTT platforms: Kaushik Das, CEO of AAO NXT

"As we approach the Union Budget 2025, I am hopeful that the government will continue to recognize the growing influence of the OTT industry in driving India’s digital transformation. The Indian OTT market is expected to surpass $13 billion in value by 2026, with regional content playing a key role in that growth," Kaushik Das, founder and CEO of AAO NXT, said. "I am optimistic that the government will introduce measures that further support the digital content creation ecosystem, particularly through incentives for regional and independent content creators. This could include tax breaks or grants for regional OTT platforms producing high-quality, original content, which would not only support the creative economy but also drive job creation in media, technology, and distribution," he added.

 

2:31 PM

Reduction in GST could accelerate demand for fashion, retail: CEO, Fashor

"With the Indian apparel market poised to grow at a CAGR of over 10% and expected to reach $100 billion by 2030, it is imperative to provide the right fiscal and policy support to sustain this momentum,"  Vikram Kankaria, Co-Founder & CEO, Fashor, stated. "Key areas of focus should include reducing GST rates on fashion and apparel to enhance affordability for consumers, especially in the ethnic and fusion wear segments that cater to a wide demographic. Currently, GST rates at 12% or 18% on apparel over Rs1,000 act as a constraint for many brands, particularly those targeting Tier 2 and Tier 3 markets, where price sensitivity is high. A reduction in GST could accelerate demand and unlock significant growth potential across these regions."

1:54 PM

Tax deduction limit on housing loan interest payments should be increased: Crest Ventures Ltd

"The government has already demonstrated its commitment to infrastructure and housing, and I firmly believe that this year’s budget can take decisive steps to address some of the most pressing challenges in our sector. One of the most impactful measures would be an increase in the tax deduction limit on housing loan interest payments. The current cap of Rs 2 lakh has not been revised for several years, despite rising property prices and interest rates. A higher limit—say Rs 5 lakh—would not only provide significant relief to homebuyers but also stimulate demand, particularly in the mid- and upper-income housing segments. This step would make homeownership more accessible and could drive momentum in the residential market," Jash Choraria, vice-president - investments and credit and chief of staff, Crest Ventures Limited, said.

1:37 PM

API standardization should be promoted by Budget: CEO, PaySprint

"The Union Budget offers a unique opportunity to shape the trajectory of the fintech ecosystem, which has already positioned India as a global leader in digital payments and financial technology," S Anand, Founder and CEO of PaySprint, a fintech venture, stated. "One critical area for focus is enhancing the infrastructure for open banking and API-driven platforms. A recent study by BCG indicates that India’s fintech sector could contribute $200 billion to GDP by 2030, but achieving this requires interoperability, seamless integrations, and policies that encourage collaboration between banks, fintechs, and regulators. The budget could incentivize these efforts by promoting API standardization and allocating funding for ecosystem-wide development."

1:09 PM

Focus on digital infra, funding for satellite tech are key demands of geospatial sector: Airace

"The geospatial sector, projected to reach Rs 25,000 crore by 2025, is vital for innovation and infrastructure development. We look forward to budgetary measures that focus on technology adoption, innovation, and ecosystem building," Swayambhu Mohanty, co-founder of Airace, said. Funding for geospatial and satellite technologies to drive R&D in GNSS, AI, and IoT and streamlined regulatory frameworks are some of the expectations that the sector has from the budget, he added.

12:20 PM

Govt shoud allow GST credit for hotel construction, rationalise GST rates: Group CEO, MakeMyTrip

“The travel and tourism sector is a vital pillar of India’s economy, contributing over 9% to employment and supporting 40 million jobs – a figure set to exceed 62 million in the next decade," Rajesh Magow, co-founder and group CEO, MakeMyTrip, said. "Ahead of the Union Budget, we urge the government to bolster this growth with targeted measures. This includes granting the long-requested industry status, which will further encourage investment and development in the hospitality sector. Additionally, allowing GST credit for hotel construction and rationalizing GST rates will help reduce the overall cost of accommodation. These measures will further stimulate domestic tourism and positively impact inbound tourism. The industry would be delighted if the Honourable Finance Minister allocates resources for an international campaign under the Incredible India initiative," he added.

12:14 PM

Targeted incentives for corporate entities can boost country’s economic resilience: MD, Lockton India

“The Union Budget 2025 offers a significant opportunity to accelerate the adoption of health insurance and enhance financial security across India. By introducing additional sops and tax incentives for individuals and corporate entities, the budget can boost health insurance penetration, aligning with the national vision of achieving universal insurance coverage by 2047. This would ensure greater financial protection for all. Targeted incentives for corporate entities to provide enhanced employee benefits, such as comprehensive health insurance plans, can further strengthen the country’s economic resilience,"  Mukul Bhatia, managing director and head of corporate solutions, Lockton India, said.

11:57 AM

When is the Union Budget 2025 Speech?

The finance minister is expected to give her Budget speech in Parliament at 11 am on February 1, 2025.