Union Budget 2025 expectations highlights: "Will Budget 2025 boost EV growth and manufacturing?

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

4:48 PM

Chemical sector calls for support on R&D, infrastructure, and jobs: NOCIL Ltd MD

Anand V S, managing director at NOCIL Limited, said, "As we approach the Union Budget 2024-25, 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 incentivising 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. A budget that addresses these areas can support the growth of the chemical sector and contribute to India's broader manufacturing goals," he said.

4:33 PM

Can Budget 2025 provide tax incentives and subsidies to boost India’s cold chain sector?

Swarup Bose, founder and CEO, Celcius Logistics, said, "We are optimistic that the Union Budget will prioritise the development of cold chain infrastructure and the integration of advanced technologies within the logistics sector. India’s cold chain industry, valued at approximately $35 billion, is vital for ensuring the quality of perishable goods. The sector is set to experience transformative growth, with projections indicating it will reach $50 billion by 2027."

 

"To sustain and accelerate this growth, we recommend capital support for tech adoption, tax incentives and subsidies for critical cold storage, public-private partnerships (PPPs) for agricultural cold supply chains. By addressing these areas, the government can significantly enhance the efficiency of the cold supply chain, reduce post-harvest losses, and improve food security, contributing to a more robust and sustainable logistics ecosystem in India," Bose added.

4:12 PM

Fintech sector seeks AI, R&D support, and credit growth measures: Credgenics CEO

Rishabh Goel, co-founder and CEO, Credgenics, "The Union budget is a crucial time for India’s fintech industry with immense potential to fuel innovation, enhance financial inclusion and drive economic growth. To remain globally competitive, fintech companies need support for R&D in cutting-edge technologies such as artificial intelligence, data analytics and blockchain. This support should be coupled with strong public-private partnerships to advance technology enhancement in the regulatory segment. Increased investment in R&D initiatives, nurturing a skilled talent pool, and incentivizing the adoption of AI across key sectors are paramount to achieving India's ambition of becoming a global AI leader, with the market projected to reach $17 billion by 2027.

 

 

"Credit growth can be further energised through measures that make loans more accessible and affordable for SMEs and MSMEs, strengthen the agricultural value chain, foster fintech-led innovation in credit risk management, and stimulate consumption at the grassroots level... Policies that encourage the adoption of innovative solutions in areas such as debt settlement will further strengthen the ecosystem and contribute to broader economic stability," Goel said.

2:45 PM

Will Budget 2025 boost R&D and green tech for India's manufacturing sector?

Abhishek Malik, Executive Director, Calcom Vision, said, "India's manufacturing sector is undeniably on the rise, thanks to ingenious initiatives like the Production-Linked Incentive schemes and the 'Make in India' campaign... We believe that the upcoming Union Budget presents a crucial opportunity to further accelerate this momentum. We believe that the government will consider key policy measures, such as increased incentives for R&D, stronger support for green technologies, and a concerted effort to boost domestic manufacturing. By continuing to foster a more supportive environment for innovation and domestic production, we anticipate the next phase of growth for India's manufacturing sector."

2:07 PM

GCCs urge 15% tax rate for services to boost growth and innovation: Fidelity International

Alok Loyalka, India CFO and Director - Tax, India, Fidelity International, said “With the upcoming Union Budget 2025-26, there is growing optimism within the Global Capability Centre (GCC) ecosystem about the potential for new measures that could drive India's economic growth. GCCs have long been a key driver of India's export growth, job creation, and innovation. The introduction of Section 115BAB by the government has been a significant step towards strengthening the manufacturing sector by offering a reduced tax rate of 15 per cent for newly established companies. A similar provision for the services sector will give a significant boost to India's economic growth.

 

"We recommend that the benefit of the reduced tax rate of 15 per cent (plus surcharge and cess) be extended to the services sector as well. This would create a balanced competitive environment and encourage further investment and growth within this sector. Alternatively, we propose that prioritised export sectors meeting minimum employment and investment criteria be permitted to avail the beneficial tax rate of 15 per cent. Such measures would enhance India's competitiveness on the global stage and act as a key factor for driving growth and innovation in the country," Loyalka said.

1:25 PM

Industry calls for focus on green infrastructure and innovation in Budget 2025: Johnson Controls MD

Arun Awasthy, president and managing director, Johnson Controls India, said, "As India prepares for the Union Budget 2025, we find ourselves at a decisive moment in shaping the future of our cities and economy. With nearly half of the Indian population expected to live in urban areas by 2030, the need for infrastructure that is both expansive and sustainable is more urgent than ever.This need for climate conscious infrastructure is not only critical as a response to environmental challenges but also as a deemed driver of long-term economic stability for the country."

 

"The last budget, presented just six months ago, gave significant attention to public infrastructure, while prioritizing sustainability as a key focus. This year, the momentum must continue, with sectors like railways, aviation, healthcare, hospitality, data centres and manufacturing taking centre stage. These areas have immense potential to drive innovation, attract large-scale investments, create jobs, and transition India toward a greener model of development. As part of this transition, a wider promotion and integration of green building standards in both public and private sector construction can be an incremental yet impactful step toward embedding climate resilience into India’s urban landscape."

12:38 PM

Can Budget 2025 balance fiscal discipline with public capex and growth?"

Pradeep Gupta, Executive Director and India Head of Investment at Lighthouse Canton, said, "The government will have its task cut out setting budgetary expectations amidst ongoing concerns towards lagging growth with full-year FY25 GDP growth expected to settle around 6.4 per cent, a four-year low. The RBI revised its inflation forecast for FY25 to 4.8 per cent from the earlier estimate of 4.5 per cent. Add to it, a mixed domestic demand scenario with struggling urban pockets, global turmoil, INR depreciation, weak exports, etc. It will be interesting to see how policy balancing is approached given the current growth inflation dynamics."

 

"To start with, we expect a continued emphasis on fiscal prudence with the government committed to maintaining a sub 4.5 per cent fiscal deficit target for FY26. We also expect continued momentum in areas of focus like public capex, infrastructure, and employment creation thus reflecting upon sustained improvement in quality of spending by the government."

12:08 PM

Bioenergy sector expects measures to boost sustainability, tackle pollution: Green Power International

Varun Puri, Managing Director, Green Power International Pvt. Ltd, said, "We are hopeful that the upcoming Union Budget will include impactful measures to address the dual challenges of rising air pollution and sustainable energy transition. Bioenergy, as a clean and renewable source, holds immense potential in tackling these issues while supporting India’s energy security goals.

 

"We look forward to policy initiatives that incentivise 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."

11:09 AM

Logistics sector demands TDS exemptions, EV incentives, cleaner tech focus: Forvis Mazars

Rohit Chaturvedi, Partner at Forvis Mazars, said, "The transport and logistics industry needs continued support from the government. To support the transport and logistics industry, TDS exemptions should be reconsidered given the low-margin nature of the business (3-4 per cent) and long payment cycles. While exemptions exist for owners with fewer than 10 vehicles, customers still deduct TDS fearing non-compliance." 

 

"Faster depreciation for EV trucks is essential to encourage adoption, alongside fiscal benefits to develop EV fast-charging infrastructure on highways to address range anxiety and save drivers' time. A comprehensive fiscal policy, in collaboration with the Ministry of Transport, is needed to promote LNG trucks, ensuring cleaner logistics and lower costs. Additionally, the GST process must be more transparent and faceless for efficiency," Chaturvedi said.