By Jarvis
How will the Budget impact the markets? Here are some predictions-
The Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM-JANMAN) will likely be integrated into relevant schemes across sectors, impacting budget allocations.
1. Information Technology (IT)
Manifesto Key Priorities: Digital India, Startup India, making India a global tech hub.
Budget Allocation (2025E): ₹23,000-₹25,000 crore (increased focus on AI, semiconductors)
Schemes:
Digital India Programme: ₹4,500 crore (focus on digital literacy, e-governance,
cybersecurity)
Production Linked Incentive (PLI) Scheme for Electronics & IT Hardware: ₹7,000
crore (continued support for domestic manufacturing)
Modied Programme for Development of Semiconductors and Display
Manufacturing Ecosystem: ₹8,000 crore (increased outlay to attract more
semiconductor fabs)
IndiaAI Mission: ₹700 crore (focus on AI research and development)
National Data Governance Policy Implementation: ₹300 crore (building data infrastructure)
Key Highlights: Emphasis on building a robust semiconductor ecosystem, promoting AI, and
strengthening cybersecurity.
Challenges: Attracting global semiconductor companies, developing skilled workforce,
ensuring data security.
High Impact Stocks: TCS, Infosys, HCL Technologies, LTIMindtree (due to AI, semiconductors, and cybersecurity initiatives)
Low Impact Stocks: Wipro, Tech Mahindra (moderate impact due to competition and slower growth in IT services)
2. Banking and Financial Services
Manifesto Key Priorities: Cleaning up the banking system, lowering the cost of capital, financial inclusion.
Budget Allocation (2025E): Focus on policy and regulatory changes rather than direct allocation.
Schemes:
Recapitalization of PSBs: Contingent allocation based on performance and need.
Strengthening of NBFC Regulations: Continued focus on regulatory framework.
National Financial Information Registry: ₹200 crore (for further development and
implementation)
Key Highlights: Continued focus on strengthening the financial sector, promoting FinTech, and improving governance in PSBs.
Challenges: Addressing NPAs, managing risks in the NBFC sector, ensuring cybersecurity in financial institutions.
High Impact Stocks: HDFC Bank, ICICI Bank, SBI (focus on financial sector reforms, fintech)
Low Impact Stocks: PSU banks like Punjab National Bank, Bank of Baroda (unless recapitalization is significant)
3. Healthcare and Pharmaceuticals
Manifesto Key Priorities: Ayushman Bharat, strengthening healthcare infrastructure.
Budget Allocation (2025E): ₹95,000-₹100,000 crore (focus on PM-ABHIM, strengthening primary healthcare)
Schemes:
PM Ayushman Bharat Health Infrastructure Mission (PM-ABHIM): ₹45,000 crore (continued investment in healthcare infrastructure)
National Health Mission: ₹35,000 crore (focus on strengthening primary healthcare
and disease control programs)
Pharma Innovation Programme: ₹600 crore (promoting R&D in pharmaceuticals)
Establishment of Nursing Colleges: ₹1,600 crore (continued support for new colleges)
Sickle Cell Anaemia Elimination Mission: ₹500 crore (increased outlay for awareness and screening)
Key Highlights: Focus on preventive and curative healthcare, strengthening human resources, and promoting indigenous pharmaceutical research.
Challenges: Ensuring equitable access to healthcare, addressing shortage of healthcare professionals, managing costs.
High Impact Stocks: Sun Pharma, Dr. Reddy’s, Cipla (strong push for Ayushman Bharat, healthcare infrastructure)
Low Impact Stocks: Biocon, Laurus Labs (less focus on biotech-specific policies)
4. Fast-Moving Consumer Goods (FMCG)
Manifesto Key Priorities: Supporting rural consumption, promoting domestic manufacturing.
Budget Allocation (2025E): Primarily impacted by indirect tax policies and rural development schemes.
Key Highlights: Focus on rural consumption growth, PLI schemes for relevant sectors (food processing), and infrastructure development to improve supply chains.
Challenges: Managing inflation, ensuring product quality and safety, and addressing rural infrastructure gaps.
High Impact Stocks: ITC, Nestlé India, Dabur (rural consumption growth and manufacturing push)
Low Impact Stocks: Emami, Colgate-Palmolive (lower rural demand impact compared to peers)
5. Automobiles
Manifesto Key Priorities: Promoting Make in India, electric mobility.
Budget Allocation (2025E): ₹8,000-₹9,000 crore (continued support for PLI schemes and EV ecosystem)
Schemes:
Faster Adoption and Manufacturing of Electric and Hybrid Vehicles (FAME): ₹3,000 crore (continued incentives for EV adoption)
PLI Scheme for Automobiles and Auto Components: ₹4,000 crore (continued
support for domestic manufacturing)
PLI Scheme for Advanced Chemistry Cell (ACC) Battery Storage: ₹800 crore (boosting battery manufacturing)
Electric Mobility Promotion Scheme: ₹500 crore (supporting charging infrastructure and other related initiatives)
Key Highlights: Strong emphasis on electric mobility, promoting domestic manufacturing of automobiles and components, and developing a robust battery ecosystem.
Challenges: Increasing EV adoption, developing charging infrastructure, and managing the transition from traditional vehicles.
High Impact Stocks: Tata Motors, M&M, Bajaj Auto (EV incentives, PLI scheme)
Low Impact Stocks: Hero MotoCorp, TVS Motors (lower direct benefit from EV incentives compared to Tata, M&M)
6. Oil, Gas, and Energy
Manifesto Key Priorities: Energy security, promoting renewable energy.
Budget Allocation (2025E): ₹20,000-₹22,000 crore (focus on renewable energy, green hydrogen)
Schemes:
National Green Hydrogen Mission: ₹7,000 crore (increased outlay for green hydrogen production and infrastructure)
PM Surya Ghar Muft Bijli Yojana: ₹7,000 crore (promoting rooftop solar)
Green Energy Corridor: ₹700 crore (strengthening transmission infrastructure for renewable energy)
Strategic Interventions for Green Hydrogen Transition (SIGHT): ₹500 crore (supporting R&D and pilot projects)
Key Highlights: Focus on green hydrogen, renewable energy, and energy efficiency.
Challenges: Achieving green hydrogen production targets, scaling up renewable energy deployment, and managing the transition from fossil fuels.
High Impact Stocks: Reliance Industries, GAIL, ONGC (green hydrogen, renewable energy push)
Low Impact Stocks: BPCL, HPCL (energy-focused businesses may see lower budget-driven gains)
7. Metals and Mining
Manifesto Key Priorities: Increasing the contribution of the mining sector to GDP.
Budget Allocation (2025E): Focus on policy reforms and ease of doing business rather than direct allocation.
Key Highlights: Focus on promoting commercial coal mining, streamlining mining regulations, and attracting private investment in the sector.
Challenges: Environmental concerns, land acquisition issues, and ensuring sustainable mining practices.
High Impact Stocks: Tata Steel, Hindalco, JSW Steel (mining policy reforms, infrastructure boost)
Low Impact Stocks: NMDC, Coal India (regulatory challenges, ESG concerns)
8. Telecommunications
Manifesto Key Priorities: Connecting every Gram Panchayat with high-speed internet.
Budget Allocation (2025E): ₹120,000-₹130,000 crore (focus on BharatNet, 5G rollout)
Schemes:
BharatNet: ₹85,000 crore (continued investment in expanding broadband connectivity to rural areas)
5G Rollout Support: ₹30,000 crore (supporting telecom companies in deploying 5G infrastructure)
PLI Scheme for Telecom and Networking Products: ₹5,000 crore (continued support for domestic manufacturing)
Key Highlights: Focus on completing BharatNet project, supporting 5G rollout, and promoting domestic manufacturing of telecom equipment.
Challenges: Ensuring timely completion of BharatNet, addressing spectrum availability for 5G, and promoting competition in the telecom sector.
High Impact Stocks: Bharti Airtel, Reliance Jio (BharatNet, 5G rollout)
Low Impact Stocks: Vodafone Idea (debt burden and financial struggles)
9. Real Estate and Infrastructure
Manifesto Key Priorities: Housing for All.
Budget Allocation (2025E): ₹85,000-₹90,000 crore (focus on PMAY, urban development)
Schemes:
PM Awas Yojana (Urban): ₹30,000 crore (continued support for affordable housing)
PM Awas Yojana (Rural): ₹55,000 crore (continued support for rural housing)
Urban Infrastructure Development Fund: ₹5,000 crore (supporting urban infrastructure projects)
Key Highlights: Continued focus on affordable housing, urban development, and infrastructure creation.
Challenges: Meeting housing demand, ensuring quality of construction, and addressing infrastructure gaps in urban areas.
High Impact Stocks: DLF, Godrej Properties, L&T (PMAY, urban development, infra push)
Low Impact Stocks: Prestige Estates, Oberoi Realty (less direct rural/affordable housing impact)
10. Consumer Durables
Manifesto Key Priorities: Promoting domestic manufacturing, boosting consumption.
Budget Allocation (2025E): Primarily impacted by indirect tax policies and PLI schemes.
Key Highlights: PLI schemes for relevant sectors (white goods), focus on increasing rural consumption, and infrastructure development to improve supply chains.
Challenges: Managing inflation, ensuring product quality and affordability, and addressing rural infrastructure gaps.
High Impact Stocks: Titan, Havells India, Voltas (PLI scheme, rural demand growth)
Low Impact Stocks: Blue Star, Crompton Greaves (less focus on air conditioning & electricals)
11. Chemicals
Manifesto Key Priorities: Promoting Make in India in the chemical sector.
Budget Allocation (2025E): ₹300-₹400 crore (focus on PLI schemes, R&D)
Schemes:
PLI Scheme for Specialty Chemicals: ₹200 crore (supporting domestic manufacturing of specialty chemicals)
Chemical Sector R&D: ₹100 crore (promoting research and development in the chemical sector)
Key Highlights: Focus on promoting domestic manufacturing of chemicals, reducing import dependence, and fostering innovation in the sector.
Challenges: Environmental concerns, ensuring compliance with safety regulations, and developing a skilled workforce.
High Impact Stocks: Deepak Nitrite, Aarti Industries, PI Industries (PLI for specialty chemicals, domestic production push)
Low Impact Stocks: Gujarat Alkalies, Tata Chemicals (lower direct impact from budget schemes)
12. Capital Goods
Manifesto Key Priorities: Promoting Make in India in the capital goods sector.
Budget Allocation (2025E): ₹300-₹400 crore (focus on PLI schemes, technology upgradation)
Schemes:
PLI Scheme for Capital Goods: ₹200 crore (supporting domestic manufacturing of capital goods)
Technology Upgradation Fund for Capital Goods Sector: ₹100 crore (promoting technology upgradation and innovation)
Key Highlights: Focus on promoting domestic manufacturing of capital goods, reducing import dependence, and enhancing competitiveness of the sector.
Challenges: Developing advanced technologies, ensuring quality and reliability of capital goods, and addressing skill gaps.
High Impact Stocks: L&T, Siemens, ABB India (infra push, Make in India)
Low Impact Stocks: Thermax, BHEL (selective impact based on policy implementation)
13. Power and Utilities
Manifesto Key Priorities: Ensuring energy security, promoting renewable energy.
Budget Allocation (2025E): ₹21,000-₹23,000 crore (focus on grid modernization, renewable energy integration)
Schemes:
Reform Linked Distribution Scheme: ₹10,000 crore (supporting DISCOMs in improving efficiency and financial viability)
Renewable Energy Integration Scheme: ₹5,000 crore (supporting grid modernization and integration of renewable energy)
Viability Gap Funding for Battery Energy Storage Systems: ₹1,000 crore (continued support for energy storage projects)
Scheme for Promoting Energy Efficiency: ₹500 crore (promoting energy efficiency measures in various sectors)
Key Highlights: Focus on improving efficiency of the power sector, promoting renewable energy integration, and supporting energy storage projects.
Challenges: Addressing financial stress of DISCOMs, ensuring grid stability with increasing renewable energy penetration, and promoting energy eciency.
High Impact Stocks: NTPC, Tata Power, Adani Power (grid modernization, renewable energy integration)
Low Impact Stocks: CESC, JSW Energy (lower allocation towards traditional power sources)
14. Retail
Manifesto Key Priorities: National Policy for Retail Trade.
Budget Allocation (2025E): Primarily impacted by policy and regulatory changes rather than direct allocation.
Key Highlights: Focus on implementing the National Policy for Retail Trade, promoting e-commerce, and improving infrastructure for the retail sector.
Challenges: Addressing concerns of small retailers, ensuring fair competition, and developing a skilled workforce.
High Impact Stocks: Avenue Supermarts (DMart), Trent (retail policy support)
Low Impact Stocks: Future Retail (weaker financials, debt burden)
15. Media and Entertainment
Manifesto Key Priorities: Promoting Indian culture and values.
Budget Allocation (2025E): ₹4,500-₹5,000 crore (focus on content creation, digitization)
Schemes:
Content Creation and Promotion Scheme: ₹2,000 crore (supporting creation of high-quality content in various formats)
Digitization of Media and Entertainment Sector: ₹1,000 crore (supporting digitization of archives, promoting online platforms)
Film Promotion and Development Scheme: ₹500 crore (supporting film production, promoting Indian cinema globally)
AVGC Promotion Task Force: ₹1,000 crore (continued support for the animation, visual effects, gaming, and comics sector)
Key Highlights: Focus on promoting Indian culture and values through media and entertainment, supporting content creation, and fostering digitization.
Challenges: Ensuring freedom of expression, addressing piracy and copyright infringement, and promoting regional content.
High Impact Stocks: Zee Entertainment, Sun TV, Saregama India (digitization, content push)
Low Impact Stocks: PVR INOX (limited budget support for entertainment infrastructure)
16. Transportation and Logistics
Manifesto Key Priorities: Bharatmala, Sagarmala, developing inland waterways.
Budget Allocation (2025E): ₹280,000-₹300,000 crore (focus on PM GatiShakti, road and rail infrastructure)
Schemes:
PM GatiShakti National Master Plan Implementation: ₹10,000 crore (supporting multi-modal connectivity projects)
National Highways Development Project: ₹150,000 crore (continued investment in expanding the national highway network)
Indian Railways Capital Outlay: ₹100,000 crore (continued investment in railway
infrastructure, including dedicated freight corridors and station redevelopment)
National Ropeways Development Programme (Parvatmala): ₹1,000 crore (continued
support for ropeway projects)
Key Highlights: Focus on PM GatiShakti for integrated infrastructure development,
expanding road and rail networks, and promoting sustainable transportation solutions.
Challenges: Land acquisition issues, ensuring timely completion of projects, and promoting private sector participation.
High Impact Stocks: Container Corp, Gateway Distriparks, Blue Dart (GatiShakti, rail infra boost)
Low Impact Stocks: Mahindra Logistics (lower direct budget impact)
17. Agriculture and Agro-based Industries
Manifesto Key Priorities: Doubling farmers’ income, promoting organic farming.
Budget Allocation (2025E): ₹135,000-₹140,000 crore (focus on PM-KISAN, agricultural infrastructure)
Schemes:
PM-KISAN: ₹60,000 crore (continued direct income support to farmers)
Agriculture Infrastructure Fund: ₹7,000 crore (continued support for agricultural infrastructure projects)
National Mission on Natural Farming: ₹500 crore (promoting sustainable agriculture practices)
PM Matsya Sampada Yojana: ₹3,000 crore (supporting the fisheries sector)
Agriculture Accelerator Fund: ₹1,000 crore (continued support for agri-startups)
Key Highlights: Continued focus on farmer welfare, promoting sustainable agriculture, and investing in agricultural infrastructure.
Challenges: Addressing climate change impacts on agriculture, ensuring market access for farmers, and promoting value addition in agriculture.
High Impact Stocks: UPL, PI Industries, Godrej Agrovet (PM-KISAN, agri-infra support)
Low Impact Stocks: Bayer CropScience (global agrochemical player, lower direct impact)
18. Textiles and Apparel
Manifesto Key Priorities: Making India a global textile hub.
Budget Allocation (2025E): ₹4,500-₹5,000 crore (focus on PLI scheme, PM MITRA)
Schemes:
PLI Scheme for Textiles: ₹2,000 crore (continued support for domestic manufacturing of textiles)
PM Mega Integrated Textile Region and Apparel (PM MITRA) Parks: ₹1,500 crore (continued support for creating world-class textile parks)
Amended Technology Upgradation Fund Scheme (ATUFS): ₹700 crore (supporting technology upgradation in the textile industry)
Key Highlights: Focus on promoting domestic textile manufacturing, creating textile parks, and supporting technology upgradation.
Challenges: Competing with other textile producing nations, ensuring sustainable textile practices, and addressing skill gaps in the sector.
High Impact Stocks: Vardhman Textiles, Welspun India (PLI, PM MITRA schemes)
Low Impact Stocks: Raymond, Page Industries (premium segment focus, lesser policy boost)
19. Aviation
Manifesto Key Priorities: Improving air connectivity, developing regional airports.
Budget Allocation (2025E): ₹2,500-₹3,000 crore (focus on UDAN, airport infrastructure)
Schemes:
Regional Connectivity Scheme (UDAN): ₹1,000 crore (continued support for regional air connectivity)
Airport Infrastructure Development: ₹1,000 crore (supporting development of new airports and upgradation of existing ones)
PLI Scheme for Drones and Drone Components: ₹500 crore (continued support for the drone industry)
Key Highlights: Focus on improving regional air connectivity, developing airport infrastructure, and supporting the drone industry.
Challenges: Ensuring financial viability of regional airlines, addressing land acquisition issues for airport development, and promoting drone usage in various sectors.
High Impact Stocks: InterGlobe Aviation (IndiGo), GMR Airports (UDAN, infra push)
Low Impact Stocks: SpiceJet, Jet Airways (financial constraints)
20. Hospitality and Tourism
Manifesto Key Priorities: Promoting tourism, developing tourist destinations.
Budget Allocation (2025E): ₹2,500-₹3,000 crore (focus on destination development, promoting domestic tourism)
Schemes:
Swadesh Darshan 2.0: ₹1,000 crore (continued support for developing theme-based tourist circuits)
Development of Iconic Tourist Destinations: ₹500 crore (continued support for developing iconic tourist sites)
Promotion of Domestic Tourism: ₹500 crore (promoting domestic tourism through campaigns and initiatives)
Champion Services Sector Scheme for Tourism: ₹500 crore (supporting skill development and infrastructure development in the tourism sector)
Key Highlights: Focus on developing tourist destinations, promoting domestic tourism, and
enhancing the tourism infrastructure.
Challenges: Ensuring sustainable tourism practices, addressing infrastructure gaps in tourist destinations, and promoting India as a global tourist destination.
High Impact Stocks: Indian Hotels, Lemon Tree Hotels, Chalet Hotels (tourism infra boost)
Low Impact Stocks: Mahindra Holidays (selective impact, seasonal business)
21. Defence and Aerospace
Manifesto Key Priorities: Strengthening the armed forces, promoting self-reliance in defense.
Budget Allocation (2025E): ₹180,000-₹190,000 crore (focus on capital outlay, Atmanirbharta in defense)
Schemes:
Capital Outlay on Defence Services: ₹175,000 crore (continued investment in modernizing the armed forces and acquiring new equipment)
Atmanirbharta in Defence Scheme: ₹10,000 crore (promoting indigenous manufacturing of defense equipment)
Defence R&D: ₹5,000 crore (continued support for research and development in the defense sector)
Key Highlights: Focus on modernizing the armed forces, promoting indigenous defense manufacturing, and investing in defense research and development.
Challenges: Reducing import dependence in defense, developing advanced defense technologies, and ensuring timely delivery of defense projects.
High Impact Stocks: Hindustan Aeronautics, Bharat Electronics, Bharat Dynamics (Make in India, capital outlay on defense)
Low Impact Stocks: Astra Microwave, MTAR Technologies (selective impact from defense R&D funding)
22. Renewable Energy
Manifesto Key Priorities: Promoting renewable energy, achieving energy security.
Budget Allocation (2025E): ₹33,000-₹35,000 crore (focus on solar, wind, green hydrogen)
Schemes:
Solar Power (Grid and Off-Grid): ₹18,000 crore (continued support for solar power deployment)
Wind Power (Grid and Off-Grid): ₹5,000 crore (continued support for wind power deployment)
National Green Hydrogen Mission (integrated): ₹8,000 crore (continued support for green hydrogen production and infrastructure)
Other Renewable Energy Sources: ₹2,000 crore (supporting biomass, small hydro, and other renewable energy sources)
Key Highlights: Focus on scaling up solar and wind power deployment, promoting green hydrogen, and supporting other renewable energy sources.
Challenges: Achieving renewable energy targets, ensuring grid stability with increasing renewable energy penetration, and reducing costs of renewable energy.
High Impact Stocks: Adani Green, Tata Power, ReNew Power (green hydrogen, solar, energy transition focus)
Low Impact Stocks: Suzlon Energy (debt issues, execution challenges)
23. Education and Training
Manifesto Key Priorities: Improving quality of education, skill development.
Budget Allocation (2025E): ₹125,000-₹130,000 crore (focus on school education, higher education, skill development)
Schemes:
Samagra Shiksha Abhiyan: ₹40,000 crore (supporting school education and literacy)
Higher Education Financing Agency (HEFA): ₹20,000 crore (supporting infrastructure development in higher education institutions)
Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 4.0: ₹10,000 crore (continued support for skill development)
National Digital Library for Children and Adolescents: ₹500 crore (continued support for the digital library)
Key Highlights: Focus on improving quality of education at all levels, promoting skill development, and leveraging technology in education.
Challenges: Addressing learning losses due to the pandemic, ensuring equitable access to quality education, and bridging the skill gap.
High Impact Stocks: NIIT, Aptech, CL Educate (corporate training, skill development, digital learning focus)
Low Impact Stocks: Zee Learn, Career Point (higher K-12 exposure, slower scalability in government-driven skill programs)
24. E-commerce
Manifesto Key Priorities: Promoting digital economy.
Budget Allocation (2025E): Primarily impacted by policy and regulatory changes rather than direct allocation.
Key Highlights: Focus on creating a level playing eld for e-commerce players, promoting digital payments, and addressing consumer protection concerns.
Challenges: Regulating the e-commerce sector, ensuring fair competition, and addressing data privacy concerns.
High Impact Stocks: Info Edge, IndiaMART, FSN E-Commerce (digital economy growth, MSME digitization, policy support)
Low Impact Stocks: Zomato, Paytm (regulatory scrutiny, compliance costs, competition challenges)
25. FinTech
Manifesto Key Priorities: Promoting digital economy, financial inclusion.
Budget Allocation (2025E): Primarily impacted by policy and regulatory changes rather than direct allocation.
Key Highlights: Focus on promoting FinTech innovation, regulating the FinTech sector, and ensuring cybersecurity in FinTech.
Challenges: Balancing innovation with regulation, addressing data security concerns, and ensuring consumer protection in FinTech.
High Impact Stocks: CDSL, CAMS, PB Fintech (financial inclusion, digital financial services, mutual fund digitization)
Low Impact Stocks: Muthoot Finance, Paytm (regulatory uncertainties, digital lending risks, increased competition)
Macro Risks and Mitigation
Fiscal and Monetary Risks: Inflation, rising interest rates, fiscal deficit.
Geopolitical and Global Economic Risks: Global economic slowdown, geopolitical tensions, supply chain disruptions.
Mitigation: Prudent fiscal management, monetary policy adjustments, diversification of supply chains, strengthening domestic manufacturing.
This detailed prediction provides a comprehensive overview of potential budget allocations and schemes for 2025. It is crucial to remember that these are projections based on past trends and the actual budget may differ based on evolving economic and political priorities. Regularly monitoring government publications and announcements will be essential for staying updated on the final budget details.
About Author: Jarvis is an AI-based Market Intelligence Platform that empowers global asset managers, brokerage houses, institutional research firms, wealth management platforms, and asset management companies with data-driven investment strategies. By leveraging cutting-edge AI and analytics, Jarvis delivers actionable market intelligence.
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