Budget 2025 Expectations Highlights: What’s in store for income tax, capex and consumption? All eyes on FM Sitharaman

Punit Shah, Partner, Dhruva Advisors, said, “Budget 2025 holds immense potential to redefine housing affordability for first-time buyers. By combining targeted tax benefits, innovative financial incentives, and streamlined regulatory reforms, the government can create a robust framework that encourages homeownership. Addressing critical issues such as higher interest deductions, incentivizing states to reduce stamp duties, and promoting green housing can significantly ease the burden on new buyers. Furthermore, enhancing affordable housing definitions and reinstating deductions like Section 80EEA can broaden the scope of benefits. On the regulatory front, empowering homebuyers through the Insolvency and Bankruptcy Code (IBC) and expediting resolutions for stalled projects will be instrumental in rebuilding trust in the real estate sector. Increased allocations to the SWAMIH fund and strengthening the National Company Law Tribunal could further ensure timely project completions, reducing uncertainties.”

Rakesh Kaul, Managing Director, Livpure, said, “As the 2025 union budget announcement is near, we are optimistic that this year’s budget will address some of the major challenges and obstacles faced by MSMEs and pave the way for sustained growth and development. In today’s fast-evolving market, incentives for adopting digital technologies and automation are vital for MSMEs, such initiatives would empower us to innovate, remain competitive, and contribute significantly to the country's economic growth. Moreover, simplification of taxation and compliance processes, coupled with improved access to affordable credit coming at marginally low interest rates can significantly enhance the ease of doing business. Additionally, subsidies for sustainable and green efficient practices would empower companies like ours to grow sustainably while driving innovation. With this robust skill development programs to reduce talent gap in the manufacturing and technology sectors will affirm share to the GDP & exports while ensuring resilience against global uncertainties.”

UCO Bank recorded gross NPA improvement to 2.91 per cent as against 3.85 per cent during Q3 of previous financial year. Net NPA, meanwhile, improved to 0.63 per cent as against 0.98 per cent during the same period of previous year. Provision Coverage Ratio stood at 96.16 per cent as on December 2024.

Arjun Bajaj, Director, Videotex, said, “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. Moreover, the focus should shift from solely expanding manufacturing capabilities to fostering R&D, product innovation, and enhancing operational and production efficiencies. It is also crucial that the government refrains from increasing the import duty on open cell components to help maintain the cost of the final product.”

Routhu Nagaraju, Chief Executive Officer of Experion Developers, said, “With the Union Budget of 2025-26 approaching, real estate developers and other industry stakeholders have expressed their hopes for regulations and reforms that will help address the housing needs of the country and boost overall economic growth. In my opinion, it is time to take note of the changing needs of the society and align its policies in accordance with the same. A special tax dispensation may be considered to encourage organised development of rental housing, student housing, dormitories for industrial workers. Tax incentives will bring in much needed focus onto these segments and attract institutional capital enabling large scale development of alternate housing to address a growing need of the society.

Another important step would be to align the pricing cap of Rs 45 lakhs for affordable housing, set in 2017, with the current market reality so that the benefit of lower GST rate can be availed by those looking to buy affordable housing. Considering the average inflation over the last seven years, affordable housing definition may be amended to cover houses priced up to Rs. 80 lakhs.”

Vidip Jatia, Executive Director, Supreme Holdings & Hospitality India Ltd, said, “India’s real estate sector stands at a critical crossroads, poised for transformative growth, particularly in rapidly expanding cities like Mumbai and Pune, as well as emerging regions such as NAINA (Navi Mumbai Airport Influence Notified Area). These areas hold immense potential for sustainable urban development and offer exciting growth opportunities. With the real estate market projected to reach $1 trillion by 2030, the expectations are high for reforms and incentives that will catalyse this growth. We hope for the rationalization of GST on under-construction properties and enhanced tax benefits for homebuyers, which can significantly boost demand. Additionally, prioritizing urban infrastructure and affordable housing projects could unlock easier access to financing and attract both domestic and international investments. By focusing on such transformative areas, this budget can address the aspirations of millions of Indians while solidifying the country’s position as a global investment destination.”

Anshu Sarin, CEO, 91Springboard, said, “The future of India’s flex space industry lies in a synergistic partnership between the government and the private sector. The government can play a pivotal role by introducing policy frameworks that encourage innovation—such as tax incentives, streamlined regulatory approvals, and interest subvention schemes to ease capital access for operators. Integrating flex spaces into urban development projects, like smart cities, IT parks, and transport hubs, will further bolster growth and establish them as a vital component of India’s economic infrastructure. At the same time, the private sector must rise to the challenge by delivering world-class, technology-driven workspace solutions that cater to the evolving needs of businesses and professionals. Investments in sustainable practices, digital infrastructure like 5G, and enhanced customer experiences will ensure long-term viability and competitiveness. When the public and private sectors collaborate with a shared vision, we can create an ecosystem that not only supports India’s economic ambitions but also redefines how businesses operate in the modern era.”

Parthh K Mehta, CMD, Paradigm Realty, said, “We are hopeful of the upcoming budget including provisions that will benefit the domestic luxury real estate sector. Primary among these is increasing the tax benefit on home loan interest, which will encourage more buyers to invest in residential real estate. Reducing the input costs for essential construction materials, such as steel, cement and fuel, is essential – lowering the GST for these items will be a much-needed shot in the arm for the real estate sector. A single-window clearance system will eliminate the hassle of securing multiple permissions and approvals, facilitate timely achievement of important project milestones, and encourage new investments in the industry by promoting ease of doing business.”

Dhiraj Singh, CEO, SIS Ltd, said, “As we anticipate the upcoming union budget, we remain optimistic that the government will prioritise job creation incentives and the effective implementation of labour law reforms. These steps are essential for creating new employment opportunities, promoting skill development, and enhancing the ease of doing business. Simplifying and expediting labour codes will not only streamline compliance processes and reduce operational challenges but also pave the way for a more transparent and efficient framework for industries. Such reforms could give businesses the confidence to expand their workforce and invest in sustainable growth. We look forward to policies that encourage collaboration between industries and the government, with a focus on generating jobs in key sectors and unlocking the true potential of India’s talent pool. With these initiatives, the budget can become a catalyst for economic growth and a meaningful step towards realising the nation’s vision of self-reliance.”

Dhaval Barot, Managing Director of Bharat Realty Venture Pvt Ltd, said, “The real estate sector has much to look forward to in FY 2025-2026. The industry expects that the government will fulfill much-needed demands for the betterment of the sector. Hopefully, the Union Budget will finally grant industry status to the real estate sector, benefiting from streamlined regulation and access to institutional funding. It would also increase investor confidence, helping sell luxury homes. The appetite for home buyers is growing, and decreasing interest rates on home loans can encourage and nurture this hunger. The sector remains confident in the performance of the market, providing that the Union Budget 2025 benefits both real estate companies and buyers.”

Manish Chowdhury, Head of Research, StoxBox, said, “From the capital market perspective, we believe that policy continuity along with fiscal prudence in the upcoming Union Budget will be key triggers, especially considering the recent slowdown in the Indian economy and corporate earnings. A 10-12% growth in capex, a fiscal deficit target of around 4.5% for FY26, and measures aimed at reviving the private sector capex would set a positive tone for markets. We expect the finance minister to simplify tax structures and raise tax exemption limits to boost consumption in the economy, especially the urban side which has recently shown signs of a slowdown. Though we do not expect the government to foot a steep subsidy bill, we anticipate target measures for the agriculture sector aimed at boosting productivity. We do not anticipate any changes to the STCG, LTCG, and STT which again should be taken in a positive stride by market participants.”

Akshali Shah, Executive Director of Parag Milk Foods Ltd, said, “As we approach the budget, we anticipate initiatives aimed at enhancing dairy production through increased investment in advanced infrastructure, technological innovation, and access to affordable financing for farmers. While the FMCG sector has faced challenges due to muted consumption growth in recent quarters, India’s dairy market has demonstrated notable resilience.

The dairy industry has continued to grow, driven by the rising demand for health focused, protein-rich diets and value-added products. Another important aspect of the budget should focus on encouraging correct labeling standards and promoting consumer awareness about quality dairy products which are crucial to building trust and ensuring long-term growth. Policy support for sustainable dairy practices, modernized supply chains, and skill development for farmers will empower the industry to meet growing demand while aligning with global quality standards.”