Budget 2025 Expectations Highlights: The industry stakeholders are waiting in anticipation as there’s a question that is looming in everyone’s mind – Will Finance Minister Nirmala Sitharaman present a Budget that stimulates consumption, revives GDP growth, and offers tax relief to the common man and salaried individuals? Every year, the middle class looks to the Finance Minister for tax reductions to ease their burden. Since the introduction of the new income tax regime by the Narendra Modi government, several adjustments have been made, including revisions in tax slabs and rates, aimed at making it more taxpayer-friendly. This year, people expect further changes in both the new and old regimes to put more money in their hands.
Finance Minister Sitharaman will present the Union Budget for 2025 on February 1, at a time when GDP growth has slowed to its lowest point in several quarters. The government is expected to focus on economic recovery. Stay with us for constant updates on expectations for the upcoming Budget 2025.
Budget 2025 Expectations Highlights: Key expectations include announcements on tax reforms, GST rates rationalisation, capex boost, and more
Budget 2025 Expectations Live Updates: How will the government balance growth and inflation in the FY25 budget?
" The government will have its task cut out setting budgetary expectations amidst concerns over lagging growth, with full-year FY25 GDP growth expected to settle at 6.4%, a four-year low. The RBI revised its inflation forecast for FY25 to 4.8% from 4.5%, reflecting challenges from mixed domestic demand, struggling urban pockets, global turmoil, INR depreciation, and weak exports. How policy balancing is approached, given the current growth-inflation dynamics, will be crucial.
A continued emphasis on fiscal prudence is expected, with the government committed to maintaining a sub-4.5% fiscal deficit target for FY26. Public capex, infrastructure development, and employment creation are likely to remain priorities, reflecting sustained improvements in spending quality. However, nominal GDP projections remain subdued. While direct tax collections may witness healthy growth, indirect tax collections could be impacted by a global tariff war. A significant overhaul of direct taxes or material relief on personal income tax is not anticipated, though boosting consumption may feature in broader reforms."
- Pradeep Gupta, Executive Director and Head of Investment at Lighthouse Canton
Budget 2025 Expectations Live Updates: How can Budget 2025 improve financial inclusion in rural areas?
"We eagerly anticipate the Union Budget 2025, hopeful that the government will continue to advance initiatives aimed at deepening financial inclusion and strengthening payments infrastructure to ensure seamless access to financial services for all Indians, especially the underbanked in rural areas.
ATMs and Financial Service Centers, as essential pillars of banking services, play a critical role in bridging the digital payment divide between urban and rural communities. We look forward to measures that incentivize investments in scalable and efficient last mile infrastructure (such as an increase in interchange rates) that strengthen public/private partnership in enabling wider access to banking and financial services. Additionally, we hope for broader policies that encourage innovation in digital payments and foster stronger collaboration between financial infrastructure companies and government programs, driving progress toward a more inclusive digital economy."
-Deepak Verma, MD and CEO, Findi
Budget 2025 Expectations Live Updates: How can Budget 2025 measures boost growth in India’s retail and D2C sectors?
"The Indian retail and D2C sectors are at a pivotal moment, driven by rapid digital transformation and evolving consumer preferences. As we approach Union Budget 2025, the apparel and retail sectors call for essential measures to drive growth and innovation within the system. As a growing brand, we believe that policies aimed at enhancing ease of doing business, including a simplified and uniform GST rate structure to enhance affordability and reduce compliance burdens along with encouraging innovation through tax benefits or grants can have a significant impact.
Enhanced support for digital infrastructure and low-cost financing options for evolving businesses are also crucial at this juncture. Expanding the Production-Linked Incentives (PLI) scheme will bolster domestic manufacturing in line with the 'Make in India' initiative, while rationalizing customs duties is necessary to create a level playing field for local products against imports. Additionally, improvements in cash flow through a proposed cash pool structure within group companies are sought. This budget represents a unique opportunity to prioritize quality and innovation in products, significantly impacting both businesses and consumers, and positioning India’s retail landscape for a prosperous future."
- Mr. Saurabh Agrawal, Co-founder and CEO, Harfun
Budget 2025 Expectations Live Updates: Budget expectations by Anil G. Verma, Executive Director & Chief Executive Officer, Godrej Enterprises Group
“As we approach the Union Budget 2025-26, I am optimistic that the government will continue its focus on boosting infrastructure development, maintaining fiscal prudence, and laying emphasis on women, youth, farmers, and the underprivileged through skilling, welfare measures and financial assistance.
The important area that needs to be addressed now, amongst others, is the continued lower than expected growth in private consumption. Private consumption drives private investment and therefore I am hopeful that the GoI will take steps that boost consumption through a slew of measures that could include reviewing of personal income tax slabs and reassessment of the interest rates to provide EMI relief to the large masses whose purchases of assets such as homes and consumer durables are through loans."
Budget 2025 Expectations Live Updates: What happened at the 'Halwa Ceremony'?
Sources revealed that Finance Minister Nirmala Sitharaman took part in the ceremony, toured the Budget Press, and reviewed the preparations while conveying her best wishes to the officials involved. Sitharaman is set to present the Union Budget 2025-26, marking her eighth consecutive budget presentation. This comes amid a backdrop of GDP growth slowing to 6.4% for the financial year, compared to 8.2% recorded in the previous fiscal year.
Budget 2025 Expectations Live Updates: What is the travel industry expecting?
Jatinder Paul Singh, Co-founder and CEO of Viacation, shared expectations for the Union Budget 2025, anticipating transformative measures to boost India’s travel sector. He emphasized the need for greater infrastructure investments to improve connectivity across urban and rural destinations, along with tax reforms to accelerate growth in domestic and international tourism. Singh highlighted the importance of incentives for sustainable tourism to position India as a leader in eco-friendly travel while preserving its cultural heritage. He also stressed the need for policies promoting domestic travel, supporting travel startups, and enhancing workforce skills to improve service quality and empower tourism professionals.
Budget 2025 Expectations Live Updates: SBI report urges tax exemptions, higher healthcare budget, and GST reforms
As the Union Government prepares to present Budget 2025, a report by the State Bank of India highlights the need for significant reforms in the insurance and healthcare sectors. The report recommends exempting GST and taxes on term and health insurance premiums to make them more accessible. It also suggests increasing the healthcare budget to 5% of GDP and standardizing GST rates on medical devices within a uniform range of 5% to 12% to improve affordability and access.
Budget 2025 Expectations Live Updates: Sitharaman holds the traditional 'halwa ceremony'
Finance Minister Nirmala Sitharaman led the traditional halwa ceremony at North Block in Delhi on Friday evening, signifying the start of the printing process for the Central Government’s Budget for the financial year 2025-26. The ceremony was attended by the Budget preparation team, including secretaries from the Ministry of Finance, senior officials, and members of the printing press, as part of the annual pre-Budget ritual ahead of its presentation on February 1. In a departure from tradition, the Finance Ministry did not release any photos, videos, or official statements about the ceremony this year.
Budget 2025 Expectations Live Updates: Will there be enhanced funding for PMAY-G and PMGSY?
Allocations for rural development programs such as Pradhan Mantri Awaas Yojana-Gramin (PMAY-G) and Pradhan Mantri Gram Sadak Yojana (PMGSY) are anticipated to see significant increases. In the current fiscal year, Rs 54,500 crore has been earmarked for rural housing under PMAY-G, while Rs 16,100 crore has been set aside for rural road development under PMGSY. Experts believe that enhanced funding for these initiatives will stimulate rural demand and contribute to overall economic growth, particularly as urban consumption continues to recover at a slower pace.
Budget 2025 Expectations Live Updates: What is the healthcare sector expecting from the upcoming budget?
Cancer Treatment Access: Removal of customs duties and reduced GST (5%) on oncology radiation equipment to improve cancer treatment in underserved regions.
Health CESS Allocation: Use of funds from healthcare CESS and a proposed 35% GST on tobacco and sugar products to strengthen public health programs.
Medical Education: Increased MBBS and postgraduate medical seats through government investments and alternative financing mechanisms like loans and interest subventions.
Life Sciences R&D: Allocation of at least 10% of the National Research Fund to life sciences, reinstatement of 200% weighted R&D deductions, and broader patent box benefits for international patents.
AI in Pharma: Introduction of AI research incentives for the pharmaceutical sector, leveraging AI Centers of Excellence and medical device training initiatives.
Medical Device Safety: Policy measures to prevent the reuse of single-use medical devices, enhancing patient safety and maintaining industry standards.
PLI Scheme Extension: A 2-3 year extension for the Production Linked Incentive (PLI) scheme to support local manufacturers, reduce imports, and ensure sector sustainability.
Healthcare Budget Increase: Raising healthcare allocation to 2.5-3% of GDP to bolster infrastructure, innovation, and access.
GST on Diagnostics: Implementation of 0% GST on diagnostic services and refunds for GST paid on inputs.
Budget 2025 Expectations Live Updates: Will semiconductor industry see more growth?
India's semiconductor market, currently valued at USD 41.2 billion, is poised for significant growth, with sectors like automotive, electronics, telecommunications, and renewable energy driving demand. With an anticipated CAGR of approximately 19%, there is a pressing need for strategic policy interventions to sustain this growth. The upcoming Union Budget 2025 offers a crucial opportunity to capitalise on this momentum and strengthen the sector’s long-term competitiveness.
Budget 2025 Expectations Live Updates: What about climate taxonomy?
In the July 2024 Budget, although climate change and related issues weren’t the primary focus, Finance Minister Nirmala Sitharaman made a notable and unprecedented announcement regarding the establishment of a climate taxonomy. During her seventh consecutive budget speech, Sitharaman revealed the government’s plan to create a climate finance taxonomy aimed at directing funds toward addressing climate challenges. Taxonomies are typically employed to define and classify financial instruments related to climate action, helping streamline and standardize investments that support environmental sustainability.
Budget 2025 Expectations Live Updates: 'India's Growing Wellness Industry - Projected to Reach $72 Billion' by 2025'
"The Indian wellness industry currently holds a projected value of over $72 billion for 2025. It has witnessed remarkable growth in India, with CAGR of 28% by 2025. Our organizational focus aligns with the government's emphasis on women's health and preventive healthcare, as demonstrated by previous initiatives like the National Health Mission which allocated ₹36,000 crore for women-centric healthcare programmes.
Key expectations include rationalization of GST rates for natural wellness products from the current 18% to a proposed 12% which would enhance accessibility for middle-class consumers. Additionally, increased allocation for R&D in natural sciences and preventive healthcare could accelerate innovation in plant-based wellness solutions. With one third of Indian women reportedly experiencing lifestyle-related health concerns, we anticipate policy support for natural healthcare products, particularly those focused on women's wellness, will help expand the market reach while maintaining quality and affordability."
- Prabhat Maheshwari, Co-Founder and Director, Amocare
Budget 2025 Expectations Live Updates: 'Rollback of recent capital gains tax hikes'
"As budget, set to be presented on February 1, 2025, is approaching, the stock market and investors are keenly anticipating measures that will bolster economic growth and enhance investment opportunities. AMFI has released a 15-point proposal for the Budget to be presented by Finance Minister Mrs. Nirmala Sitharaman. One of the primary expectations from the mutual fund industry is the restoration of tax benefits for debt funds. The removal of long-term indexation benefits in budget 2024 has significantly impacted debt fund investors, leading to a decline in participation. Industry leaders argue that reintroducing indexation would help neutralize inflation's impact on capital gains, making debt investments more attractive again. Also, there is a demand for rollback of recent capital gains tax hikes, which deterred retail investors from engaging with mutual funds."
- Achin Goel, Vice President at Bonanza
Budget 2025 Expectations Live Updates: 'Steps to boost disposable income will encourage consumer spending'
"As an entrepreneur committed to sustainability and innovation, I hope the upcoming budget prioritizes policies that empower MSMEs and startups driving meaningful change. By introducing tax incentives for eco-friendly products, simplifying regulatory processes, and investing in waste management, skill development, and infrastructure, the government can create a strong foundation for sustainable businesses to grow and succeed. These measures will not only accelerate India’s transition to a greener economy but also generate green jobs and advance the 'Make in India' and 'Swachh Bharat' missions. Additionally, steps to boost disposable income will encourage conscious consumer spending, fostering a marketplace that is both resilient and responsible. We are fully committed to contributing to this shared vision and playing an active role in building a cleaner, more sustainable future for India."
- Shashank Noronha, Founder of TABBSZ
Budget 2025 Expectations Live Updates: Expectations from civil aviation sector
"I believe the upcoming budget presents crucial opportunities to strengthen India's aviation sector. To start with, the government should focus on developing infrastructure in tier-2 and tier-3 cities. While our major airports are impressive, we need similar advancements in smaller cities to fully unlock the potential of the UDAN scheme. This will improve connectivity and generate significant job opportunities. Regarding technology and self-reliance, we require targeted budget allocations for the development of indigenous aviation technologies. The achievements of HAL and ISRO's programs highlight our capabilities, but we need increased investment in research and development, especially in areas like sustainable aviation fuels, Unmanned Aerial Vehicles, and electric aircraft technology. Institutions must also engage and collaborate in these efforts, merging academic research with industry demands. The education ministry must provide latest and modern aviation facilities and training. This involves establishing specialized institutions with advanced infrastructure, focusing specifically on drone manufacturing, testing, and technological development. By creating collaborative platforms between academic institutions, research centers, and private aerospace industries, India can develop a comprehensive skill development pipeline."
- Dr. Anand Jacob Verghese, Chairman - Hindustan Group of Institutions
Budget 2025 Expectations Live Updates: ‘Budget should focus on measures fostering growth, innovation and sustainability’
Shamsher Dewan, Senior Vice President and Group Head, Corporate Ratings, ICRA Limited, said, “Following two strong years of growth, FY2025 has been a period of consolidation for the domestic automotive industry with demand sentiments for most of the segments remaining steady and the pace of electrification continuing to rise. ICRA expects the Union Budget 2025-26 to focus on measures fostering growth, innovation and sustainability. Thrust on infrastructure spending, rural output and job creation shall continue to be key focus areas. This apart, proposals around skill development, rationalisation of tax rates and policy measures promoting the ecosystem of alternative fuels, vehicle scrappage, and parts localisation shall aid the broader automotive sector"
Budget 2025 Expectations Live Updates: Expectations from urban infrastructure sector
Ashish Suman, Partner, JSA Advocates & Solicitors, said, “PPP investments in urban infrastructure peaked at Rs 8,353 crore in 2012 but plummeted to just Rs 467 crore by 2018. It is expected that the government announces more innovative PPP models for boosting private sector participation in this sector. This budget may consider better utilisation of the Urban Infrastructure Development Fund (UDIF) which was established for Priority Sector Lending to Public Agencies to create urban infrastructure in Tier 2 and Tier 3 cities. Urban infrastructure projects by ULBs in India often face funding challenges, impacting the financial viability. The upcoming budget may consider strengthening the municipal bonds market or empowering SEBI to incentivize pension and insurance funds and considering higher interest rates to attract retail investors. It is expected that the Budget may also provide for dedicated financial outlay for projects specifically for tier 2 cities with focus on urban housing, water and sanitation. To align with India’s sustainable development goals, it is expected that the Budget will provide tax incentives for developers adopting green building technologies as well as providing skilling incentives for workers employed in green building construction.”
Budget 2025 Expectations Live Updates: ‘Push must be made to encourage Jewellery manufacturing in India’
Colin Shah, MD, Kama Jewelry, said, “The gems and jewelry industry is one of the key contributors to the economy and a huge employment creator in the country. However, over the past two years, the industry has been facing numerous challenges and needs urgent government intervention. A push must be made to encourage Jewellery manufacturing in India.
The Finance Minister must consider amending the current SEZ Act in order to integrate SEZs into the domestic market appropriately. The upcoming budget should also look at allowing ‘reverse job-work’, allowing SEZs to utilise their capacities more effectively. Hence, when exports are consistently declining, this can prove to be a timely remedy to address the issue. The budget should also consider extending tax exemptions and simplifying the tax structure for SEZ businesses. It should also consider streamlining customs processes for SEZ units, which will make it easier for them to export their goods. The budget should also consider establishing a framework and accordingly adjusting policies to monitor the performance of SEZs.”
Budget 2025 Expectations Live Updates: Expectations from startup ecosystem
Amit Sharma, General Partner, Cactus Partners, said, “Startup ecosystem expects further reforms in Union Budget 2025 to boost India’s technology prowess and value creation. The abolition of the 'angel tax' in 2024 was a significant milestone, simplifying investments and fostering innovation. In the upcoming budget, we hope that the government simplifies compliance and regulatory framework for both startups and venture capital funds including rationalizing GST on fund management fees. Providing tax breaks and incentives to fund managers will strengthen them and provide critical support to the businesses. This will also encourage greater participation, especially from domestic investors, who remain underrepresented currently. Improved frameworks to provide access to Indian institutional capital, such as insurance companies and banks will help significantly and reduce dependence on international capital, which is the primary source of capital for Indian funds.”
Budget 2025 Expectations Live Updates: ‘Budget expected to foster supportive policies, conducive business environment’
Dr Raghupati Singhania, Chairman & Managing Director, JK Tyre & Industries Ltd, said, “FY 2025-26 is likely to play a pivotal role in realizing India’s aspirations. With young India becoming highly mobile, entrepreneurial, and increasingly tech-savvy, the upcoming Union Budget is expected to address their needs by fostering supportive policies and a conducive business environment. Over the last decade, India has demonstrated remarkable progress in physical infrastructure and Digital Public Infrastructure (DPI), and this momentum is bound to accelerate with focus on last-mile connectivity and infrastructure development in tier-II and III cities as well beyond. A budget emphasizing infrastructure, sustainable mobility, and industrial competitiveness will not only propel the automotive and allied sectors but also significantly contribute to India’s growth story.”
Budget 2025 Expectations Live Updates: Halwa ceremony to be held today
The Halwa ceremony, which marks the final stage of the Budget presentation process, will be held today evening at Central Secretariat's North Block. As per convention, Finance Minister Nirmala Sitharaman will lead the ceremony, and Minister of State Pankaj Chaudhary and secretaries will be in attendance along with the officers and staff involved in the budget preparation and compilation process.
Budget 2025 Expectations Live Updates: Reshuffle in the Finance Ministry
The Finance Ministry announced a major reshuffle ahead of the Union Budget presentation date. According to this, senior IAS officer Arunish Chawla was transferred from his role as Revenue Secretary to lead the Department of Investment and Public Asset Management (DIPAM). Tuhin Kanta Pandey, meanwhile, who was the DIPAM secretary and finance secretary, replaced Arunish Chawla as the new revenue secretary.
Budget 2025 Expectations Live Updates: Parliamentary Affairs Minister announces Budget presentation date
On January 17, in a post on X (formerly Twitter), Parliamentary Affairs Minister Kiren Rijiju said that Finance Minister Nirmala Sitharaman will table her eighth Budget on February 1. He further added that President Droupadi Murmu, on the recommendation of the Government of India, has approved summoning both Houses of Parliament for the Budget Session 2025 from 31st January, 2025 to 4th April 2025.
Budget 2025 Expectations Live Updates: Welcome to this live blog!
Good Morning! With Finance Minister Nirmala Sitharaman all set to present the Union Budget 2025 on February 1, we, at FinancialExpress.com, are bringing to you all the updates around the Budget preparation and expectations from across industries. With this live blog, we will keep you updated on key expectations, Parliament’s Budget Session dates, major events leading to the presentation date, to statements by the government and key stakeholders. Stay tuned.