Union Budget 2025 Expectations highlights: MSMEs seek focus on renewable energy, and CBG

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

Finance Minister Nirmala Sitharaman will present the Union Budget 2025 on February 1 at 11 am in the Lok Sabha. The session will be broadcast live on official Parliament channels, Doordarshan, and Sansad TV, with streaming available on the government's YouTube platforms.

 

Since the Narendra Modi-led government assumed office in 2014, several significant changes have been introduced in the budget process. These include merging the Rail Budget with the main Budget in 2017, moving the presentation date to February 1, and transitioning to a digital format in 2021. 

Abhinav Govil, DGM – Marketing from CEID Consultants and Engineering, said, "To make MSMEs more agile towards environmental compliance, the Budget should allocate additional funds to strengthen renewable energy investments, particularly in compressed biogas (CBG) and biomass projects, building upon the previous Rs 19,700 crore allocated for green energy and energy transition." 

 

"Introducing policies that mandate the substitution of at least 20 per cent of fossil fuels with CBG would help MSMEs reduce their dependence on imported energy while promoting domestic bioenergy production. Further, establishing policies for Municipal Solid Waste (MSW) segregation enables MSMEs to achieve environmental compliance, reduce energy costs, and help India meet its net-zero emissions target while advancing both economic and environmental sustainability," Govil said.

 

3:59 PM

Rural Fintech calls for measures to boost security & financial inclusion: Spice Money CEO

Dilip Modi, founder and CEO, Spice Money, said, "As we look forward to the Union Budget 2025-26, it is imperative to prioritise measures that strengthen the digital financial ecosystem, particularly in rural India, where initiatives like Aadhaar Enabled Payment System (AePS) and Bharat Connect have become lifelines for millions. While AePS has revolutionised cash-in cash-out (CICO) operations, ensuring transaction safety and security remains a critical focus for the fintech ecosystem."

 

"...Additionally, a reduction or waiver of GST on financial services offered at Banking Agent outlets would significantly ease the financial burden on these grassroots operators, encouraging broader participation in rural banking.... We hope this budget paves the way for robust, innovative, and inclusive financial policies that align with the aspirations of Digital India and truly reflect the transformative potential of integrating DBUs and TBCs into a unified framework."

3:01 PM

Renewable energy sector calls for tax policy reforms, green hydrogen credits: Kundan Green Energy CEO

Udit Garg, managing director and CEO, Kundan Green Energy, said, "The forthcoming Union Budget can be a key opportunity to boost India's movement towards a cleaner and greener future. To maintain this momentum, an encouraging tax policy would be the need of the hour. Increasing tax holiday under Section 80-IA of the Income Tax Act and lowering corporate tax rates for companies engaged in renewable energy to 15 per cent or lower would provide much-needed sustainability to the industry." 

 

 

"Moreover, facilitating tax credits on the production of green hydrogen and lowering GST rates for renewable energy products like solar panels and wind turbines would spur investments and innovation opportunities.... Another critical area would be strengthening the corporate bond market. Tax exemptions for investments in the power sector will diversify funding sources and ensure a constant flow of capital for renewable energy projects," Garg said.

2:57 PM

Growth, capex, and debt: Key numbers to watch in Union Budget 2025

With the Union Budget 2025 set to be presented on February 1, attention is focused on the critical financial metrics that will shape India’s economic trajectory. Key figures, ranging from the fiscal deficit to defense expenditures, will showcase Finance Minister Nirmala Sitharaman’s approach to maintaining fiscal discipline while driving growth.

Click to read more in detail

2:55 PM

Real estate industry seeks higher home loan tax breaks, lower stamp duty: Highbrow Securities MD

Tarun Singh, founder and managing director of Highbrow Securities, "As we approach the new Budget, I'm excited to see how the government builds on the momentum of previous years to drive growth in India's MSME sector. Sustaining this momentum is crucial, with a focus on bridging the swelling debt funding gap that persists for SMEs. Enhancing credit accessibility and simplifying IPO listing procedures will offer vital support." 

 

"Furthermore, by introducing targeted interest subvention schemes, the government can significantly reduce operational costs. Together, these measures will strengthen the global competitiveness of our MSMEs, ensuring they continue to thrive and grow... The real estate sector is hoping for progressive reforms that benefit homebuyers and the industry, including increased tax exemption limits on interest payments on home loans and reduced stamp duty charges," Singh added.

2:53 PM

Can Budget 2025 meet real estate demands for GST cuts and housing incentives?

Sher Singh Rathore, founder of Bric-X Infra, said, “As India continues facing urbanisation and increased demand for housing, the real estate sector awaits more incentives from the 2025 Union Budget to fuel growth. Affordable housing, infrastructure development, and sustainability remain key expectations. The industry will benefit from the continuance of tax advantages for low-cost house developers, and there could also be additional funding for schemes like Pradhan Mantri Awas Yojana, and PMAY, which would remain a core initiative to fill up the country's housing deficit."

 

"We expect the government to introduce measures to make home loans more accessible, especially to middle-income and first-time homebuyers as interest rates are stabilising and inflationary pressures are expected to ease. The sector expects direct support through rebates under income tax or reduced GST rates on residential properties further nudging home ownership," Rathore said.

2:19 PM

Union Budget 2025 to empower consumption; drive infra, jobs and skilling: Atul Sobti

Atul Sobti, Director General at SCOPE, said, "The Union Budget 2025 is expected to be a ‘wholesome Budget’ paving way for transformational decisions facilitating infrastructure investment and empowering consumption, giving impetus to industrial growth, skilling and employment creation."

 

Atul Sobti, Director General at SCOPE, said

2:13 PM

EdTech seeks AI funding for personalised learning, assessments: Cognio Labs founder

Ashutosh Upadhyay, founder at Cognio Labs, said, "The education sector is ripe for AI-driven transformation, with global EdTech AI solutions expected to reach $80 billion by 2030. We anticipate budget allocations for developing personalised learning platforms powered by adaptive AI algorithms." 

 

"Key focus areas should include funding for AI-enabled student assessment tools, virtual learning environments, and automated content generation systems. The government should introduce incentives for educational institutions implementing AI-based administrative systems and learning analytics platforms. These measures will democratise quality education while creating a future-ready workforce equipped with digital skills," Upadhyay said.

2:11 PM

NBFCs seek long-term funding, tax-free bonds for infra growth: Rupee112 founder

Vikkas Goyal, founder at Rupee112, said, "As the Union Budget approaches, we anticipate policy measures that recognise the pivotal role of NBFCs in driving infrastructure growth. Infrastructure financing has been a core area where NBFCs can make significant contributions, given our flexibility in underwriting and customised solutions. To this end, we expect the government to announce long-term funding mechanisms or partial credit enhancement programmes, tailored specifically for NBFCs." 

 

Goyal added, "Measures to reduce the cost of borrowing, such as extending the benefit of tax-free infrastructure bonds to NBFCs, can further boost our ability to channel credit into critical sectors like transportation, energy, and urban development. We also urge the government to streamline regulatory guidelines to reduce compliance costs and encourage public-private partnerships.This year’s Budget should emphasise enhancing credit flows while reducing operational barriers, enabling NBFCs to contribute meaningfully to India’s vision to become a fast growing economy."

2:10 PM

Fintech industry hopes Budget 2025 boosts digital infra, eases lending rules: BharatLoan founder

Amit Bansal, founder at BharatLoan, said, "We look forward to the upcoming Union Budget with anticipation for policies that will further enhance financial inclusion. With the growing demand for easy access to loans, especially in underserved markets, we are hopeful the government will focus on improving digital infrastructure and regulatory support. Measures that simplify the lending process, reduce operational costs and foster innovation will empower platforms like ours to reach more customers. We are optimistic that this budget will strengthen the fintech ecosystem, enabling affordable credit solutions for the broader population."

1:19 PM

Insurance sector seeks tax incentives for term policies, retirement products: Axis Max Life Insurance CEO

Prashant Tripathy, managing director and CEO, Axis Max Life Insurance Ltd, said, "As the Union Budget 2025 approaches, we anticipate progressive policy measures that will strengthen India's financial ecosystem and accelerate the journey toward Viksit Bharat by 2047. We urge the introduction of a distinct tax deduction for life insurance, especially term insurance, under Section 80C of the Income Tax Act. Additionally, extending this benefit under the New Tax Regime would broaden financial protection and social security for a larger population segment."

 

"To encourage long-term retirement planning, we recommend aligning the tax treatment of life insurance pension products with the National Pension System (NPS). Allowing deductions of Rs 50,000 and 10 per cent/14 per cent of basic salary under Section 80CCD would be a step toward strengthening retirement security and promoting wider financial inclusion," Tripathy said.

1:16 PM

Education sector seeks teacher empowerment, tech integration in Budget 2025: Teach For India CEO

Shaheen Mistri, founder and CEO of Teach For India, said, "Delivering quality education in India demands a comprehensive approach prioritising leadership at every stage, from policy formulation to classroom instruction. The upcoming Union Budget can play a pivotal role by investing in teacher empowerment through robust professional development programmes."  

 

"Furthermore, the Budget can strategically integrate technology into the education system, leveraging its potential while mitigating the risks associated with social media and AI. Finally, reforming assessment practices to accurately measure students' progress in developing leadership qualities, collaborative skills, and 21st-century competencies is crucial for ensuring that our education system effectively prepares students to thrive in the dynamic and interconnected world of the 21st century."

1:14 PM

Industry seeks push for job creation, female workforce support: Unstop CEO

Ankit Aggarwal, founder and CEO of Unstop, said, "With the Budget coming up, we believe there will be movement in the skill development and entrepreneurship industry. The Confederation of Indian Industry has proposed the formulation of a comprehensive National Employment Policy. This aims to consolidate various employment generating schemes across ministries and states that will enhance the focus on job creation. We feel there may be an increase in measures to boost female participation in the workforce through policy support for flexible work arrangements and incentives for organisations promoting gender diversity."

 

"We hope there will be a continued support for entrepreneurship, through increased investment in sectors like AI and IoT and the simplification of regulatory processes, will create a more conducive environment for startups, encouraging innovation and job creation."

1:01 PM

India’s beauty industry eyes Budget 2025 for policies supporting ethical innovation

Mihir Jain, sales and marketing director, Insight Cosmetics, said, "With market predictions indicating a value of $34 billion by 2028, India's beauty and personal care sector is expected to grow at a strong compound annual growth rate (CAGR) of 10-11 per cent. As key players in the industry, we are hopeful that the Union Budget 2025 will introduce measures that support innovation, particularly in cruelty-free, vegan, and toxic-free beauty products. The beauty sector is set for significant growth, and we believe that policies promoting ethical beauty practices will help propel the industry forward." 

 

Jain said, "By prioritising cruelty-free and toxic-free beauty products, the government can play a crucial role in making India a global leader in ethical beauty. We are confident that these initiatives will create fresh opportunities for brands, inspire greater consumer trust, and enhance India’s reputation as a hub for high-quality, ethically produced beauty products."

12:19 PM

Will Budget 2025 support green logistics and modern infrastructure development?

Subhasish Chakraborty, founder, chairman, and managing director of DTDC Express Ltd, said, "The logistics sector stands at a transformative crossroads, and the Union Budget 2025-26 holds the potential to shape its growth trajectory significantly. We encourage the government to prioritise investments in infrastructure modernisation, particularly in the creation of smart logistics parks and multimodal transport networks that embrace sustainable practices." 

 

Chakraborty added, "A strong emphasis on green logistics is essential, with incentives to promote the use of electric vehicles, biofuels, and IoT-enabled transport systems. These measures will help lower logistics costs while reducing carbon emissions, paving the way for a sustainable future in the sector."