Finance minister Nirmala Sitharaman is set to present the eighth Union Budget 2025 on Saturday. As India moves toward a $5 trillion economy, the Budget presents a vital opportunity to drive industry growth, enhance infrastructure, and promote inclusivity, particularly for women in business and leadership.
The Economic Survey 2024-25, presented in Parliament on Friday, projects India’s economy to grow between 6.3% and 6.8% in FY26.
Meanwhile, the outlook for core inflation remains stable, aided by lower global energy and commodity prices, although global political and economic uncertainties still pose challenges.
Additionally, Prime Minister Narendra Modi, in his pre-Budget session address, invoked the blessings of goddess Lakashmi for the poor and the middle class hinting at some income tax relief.
“I pray that Goddess Lakshmi showers the poor, middle class with blessings. It is a matter of great pride that India completed 75 years as a democratic nation. India has established itself well on the global pedestal…This is the first complete budget of my third term. I can confidently say that in 2047, when India will complete 100 years of Independence, India will fulfil its aim of Viksit Bharat and this budget will give new energy and hope to the nation.,” PM Modi said.
Here are key expectations from the Budget:
- The country has seen significant growth in women-led enterprises, but challenges like access to capital, skill development, and policy support persist. The budget is expected to introduce measures such as low-interest credit lines, dedicated venture capital funds for women-led startups, and increased government procurement from women-owned businesses. These steps will enhance women’s economic participation, drive innovation, and create jobs.
- India’s manufacturing sector requires robust support for digitalization and sustainability. Encouraging smart manufacturing, AI-driven automation, and clean energy initiatives will boost efficiency and global competitiveness. Prioritizing tax benefits for companies adopting green technologies and carbon-neutral strategies will help align with India’s net-zero goals.
- MEIL has been a key driver of India’s infrastructure and manufacturing growth, contributing significantly to the energy, water, and transportation sectors. The budget is expected to focus on boosting investments in large-scale infrastructure projects, simplifying approval processes, and promoting public-private partnerships (PPPs). Strengthening the infrastructure sector will improve logistics, enhance industrial productivity, and attract global investments.
- The MSME sector seeks research grants, easier access to low-cost financing, relaxed incentive criteria, and extended timelines for domestic value addition. These initiatives aim to develop homegrown leaders capable of positioning India’s manufacturing ecosystem in the global supply chain.
- The Production-Linked Incentive (PLI) Scheme has significantly boosted growth across multiple sectors. With the upcoming budget, it’s essential to expand this support to sub-assembly and component manufacturing. Lowering customs duties on essential raw materials would be a strong first step in this direction.
- A skilled workforce is crucial for long-term growth. The budget is expected to increase funding for technical and vocational training, especially for women, in fast-growing sectors like renewable energy, aerospace, and digital technology. Encouraging industry-academia collaborations will help bridge the skill gap and equip young talent for future job markets.
- Another anticipated aspect of the budget is tax relief for individuals and businesses. Taxpayers are hoping for changes in tax slabs under the new tax regime, with expectations of higher exemption limits and standard deductions.
- The healthcare sector is calling for an increase in spending to 2.5% of GDP, a reduction in GST on health insurance premiums, incentives for digital health innovations such as telesurgery and electronic health records, and lower import duties on medical equipment.
- Travel and tourism industry experts have outlined their key expectations, focusing on tax reforms, improved funding, infrastructure development, and more.
- Infrastructure development and export competitiveness remain key priorities. The budget is expected to emphasize sustained investments in roads, railways, and other essential infrastructure.