Budget expectations highlights: Budget should focus on boosting consumption, say industry insiders

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

Finance Minister Nirmala Sitharaman is set to present the Union Budget 2025 in Parliament on February 1, with her address scheduled to begin at 11 am in the Lok Sabha.

 

The Budget will be broadcast live on Parliament's official channels, Doordarshan, and Sansad TV, and will also be available for streaming on the government's YouTube channels.

 

Since assuming office in 2014, the Narendra Modi government has introduced significant changes to traditional budgetary practices. These include merging the Rail Budget with the main Budget in 2017, moving the presentation date to February 1, and adopting a digital format in 2021. 

 

Dharminder Nagar, MD, Paras Health, said, "Healthcare accessibility and infrastructure in the upcoming budget should be prioritized. Strengthening tertiary healthcare systems and increasing investment to achieve equitable healthcare distribution, particularly in tier 2 and tier 3 cities, remains critical. Establishing a dedicated Healthcare Capex Fund with flexible repayment terms and reducing customs duties on life-saving diagnostic equipment would significantly alleviate existing challenges."  

 

"We also see immense potential in digital health transformation and expect increased allocations for AI-driven diagnostics, telemedicine, and electronic health records, especially to bridge healthcare gaps in rural areas. Public-private collaborations will play a pivotal role in achieving this vision. Finally, tax incentives to encourage private health insurance adoption among the middle class will ensure broader healthcare access and financial protection for families," he added.

 

4:40 PM

Investments in AI, STEM, and robotics labs in schools will support hands-on learning: STEMROBO Technologies

"We believe that the Union Budget 2025-26 can play a key role in addressing gaps in the education sector. While the FY 2024-25 allocation of Rs 73,498 crore for School Education was a positive move, there are still significant gaps, especially in rural and semi-urban areas, where access to high-speed internet, digital devices, and smart classrooms is still limited. We urge the government to dedicate funds to improve infrastructure, like high-speed internet and digital tools, in schools. It is very important to invest in teacher training programs that focus on new technologies like AI, coding, and robotics. This will help educators adapt to the future needs of students. Investments in AI, STEM, and robotics labs in schools will support hands-on learning and innovation," Anurag Gupta, co-founder of STEMROBO Technologies, said.

4:00 PM

Encouragement to private sector spending can boost consumption: Puneet Singhania, Director, Master Trust Group

"The fiscal deficit target for 2026 is set at an expected rate at 4.5 per cent of GDP; this represents a baseline reduction for FY25 when the deficit was registered at 4.8 per cent. Such contraction in the fiscal deficit may go a long way in exuding confidence in the capital markets. A steady trajectory of fiscal consolidation aligned with medium-term government plans provides a focused approach to development among such sectors as further erosion of the fiscal deficit may affect capital expenditure and social sector investment, thus anchoring perceptions of the market follows the medium-term fiscal plan and allows a focus on social investments and capex as the fiscal deficit gets narrowed.

In the realm of defence, we foresee budgetary allocation towards capital expenditure to hover around 7 to 8 per cent in FY26; shall this be given effect, it would amount to approximately Rs 1.9 trillion. The modernization of the defence forces, the strengthening of naval assets, and the promotion of domestic manufacturing formed around-dwellers into a true path towards the realization of an Aatmanirbhar Bharat and a successful 'Make in India'.

In 2025 mainly from the increased levels of government spending along with higher demand emanating from all quarters of the economy the consumption levels in the country are estimated to have been made out on the rise. Tax incentives and measures meant to encourage private sector spending, such as factory development incentives in affordable housing zones, would inject further muscle into the consumption sector," Puneet Singhania, Director, Master Trust Group, said.

 

3:00 PM

Targeted initiatives for skill development should bolster growth: NTT Data Payment Services

The Union Budget 2025 should allocate more funds to incentivize the use of low value BHIM UPI-based payments and Rupay debit card. Bank and payment service provider, and NPCI typically incur a cost of nearly 0.25% of transaction value for processing a UPI P2M transaction. As UPI continues to rise exponentially, it is important for the payment ecosystem to invest in emerging technologies such as Artificial Intelligence (AI), face recognition payments, and blockchain. These technologies will make the digital infrastructure more robust, ensuring the safety of digital payments. To address the rising concerns of digital fraud, it is essential to create stringent mechanisms to mitigate these risks, says Rahul Jain, CFO, NTT Data Payment Services India.

2:09 PM

Incentives for setting up bioenergy plants will be helpful: Green Power International

"We look forward to policy initiatives that incentivize the setup of bioenergy plants, offer subsidies for advanced energy equipment, and provide financial support for importing cutting-edge clean energy technologies. Simplifying regulatory processes and offering tax benefits for the adoption of sustainable energy solutions will further encourage industries to transition to greener alternatives. Such measures will not only combat pollution but also foster innovation, create jobs, and contribute to a healthier and more sustainable future for India," Varun Puri, Managing Director, Green Power International, said. 

2:03 PM

Incentives for funding advanced recycling technologies will bolster industry growth: revalyu Resources

"Policies that incentivize investment in advanced recycling technologies,  offering tax incentives for sustainable manufacturing facilities, will significantly bolster industry growth. Government of India has mandated for 30% recycled content in rigid packaging from 1st April 2025. Strict implementation of this policy shall not only encourage recycling but place India as an important supplier for food grade recycled packaging. We urge the government to introduce comprehensive guidelines for Extended Producer Responsibility (EPR) that prioritize high-quality recycling methods like chemical recycling," said Makarand Kulkarni, CEO, revalyu Resources.

1:21 PM

Support for export promotion would unlock new business opportunities: Videotex

"The television manufacturing industry has long advocated for the implementation of the PLI scheme and the development of a local ecosystem for critical components such as displays and semiconductors. Additionally, the current 28% GST on 40 inch and larger TVs, which are classified as luxury goods, should be re-evaluated, as these products have become essential. Removing this tax could stimulate sales and benefit the industry. Support for export promotion would unlock new business opportunities," says Arjun Bajaj, director, Videotex. 

12:58 PM

Gradual transition to natural farming must be supported through financial assistance: CEF Group

"Budget 2025 presents a significant opportunity to champion policies that promote sustainable practices, particularly natural farming. By offering incentives, certification subsidies, and improved market access for organic growers, we can drive a meaningful shift toward healthier and more environmentally conscious farming methods. A gradual transition from chemical-based conventional farming to natural farming is essential, and this shift must be supported through comprehensive policies and financial assistance," Maninder Singh Nayyar, CEO and Founder, CEF Group, said.

12:17 PM

Centre must prioritize investments in EV charging networks, says CEO of Blue Energy Motors

"LNG, with its ability to drastically reduce carbon emissions, is not merely a fuel alternative but a key enabler of a cleaner, greener logistics ecosystem. Together with advancements in EV technology, LNG and EVs represent the future of commercial trucking—a future that harmonizes environmental stewardship with operational efficiency. To realize this vision, the government must prioritize investments in LNG refuelling infrastructure, EV charging networks, and fiscal incentives to drive adoption, Anirudh Bhuwalka, CEO of Blue Energy Motors, said. 

12:07 PM

Reducing GST on apparel can enhance affordability: Libas

"The 2025 Union Budget presents a crucial opportunity to strengthen India’s position in the global fashion industry. Reducing GST on apparel from 12% to 5% can enhance affordability, boost consumer demand, and drive overall industry growth. With the textile sector contributing 2.3% to GDP and employing over 45 million people, simplifying e-commerce regulations will enable businesses, particularly MSMEs and start-ups, to expand and compete more effectively," says Sidhant Keshwani, founder and CEO of Libas. 

11:59 AM

Budget needs to promote development of clean tech solutions by domestic MSME: Uniqus Consultech

“As India launches its Carbon Credit Trading Scheme (CCTS) and embarks on its Net Zero Journey, the focus will be on access to clean and green technologies across sectors. Industries covered under CCTS are also subject to international regulations like CBAM, which attract carbon taxes on exports. One of the objectives of CCTS is to offset such taxes. Decarbonizing the sectors under CCTS would require access to clean technologies at costs that can help them stay globally competitive. The Union budget needs to prioritize establishing mechanisms to access global funds for technology innovation and promote the development of affordable and scalable clean tech solutions by domestic MSMEs. We believe that providing financial incentives to companies, such as improved Performance Linked Incentives (PLI) and promoting research and development in cleaner technologies, will be vital to meeting India’s target of achieving net-zero emissions by 2070,” Anu Chaudhary, Partner and Global Head of ESG Consulting, Uniqus Consultech.

11:51 AM

Addressing inverted duty structures will enhance competitiveness: NOCIL Limited

"We request the government to continue its focus on investment in infrastructure, which is expected to have a multiplier effect on the economy. For the chemical industry, addressing inverted duty structures will enhance competitiveness, while incentivizing investment in R&D is essential for the development of sustainable practices and eco-friendly products. Expanding Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs) could attract significant investments and create job opportunities. Furthermore, focusing on skill development will be crucial to preparing the workforce for future challenges," says Anand VS, managing director at NOCIL Limited.

11:01 AM

Tax rebates on bank deposits will boost entire credit ecosystem: Rajiv Sabharwal, MD & CEO of Tata Capital

“As we approach the Union Budget 2025, there is a significant opportunity for the government to boost consumption in the economy by increasing disposable income in the hands of people. Moreover, offering tax rebates on retail savings account and bank deposits will aid in improving the ability of banks to mobilise deposits and thereby boost the entire credit ecosystem. An increase in the tax deduction limit for housing loan interest will stimulate loan uptake and encourage the housing sector," Rajiv Sabharwal, MD & CEO of Tata Capital, said.