Budget 2025: Key Expectations from FM Nirmala Sitharaman

Budget 2025: Key Expectations from FM Nirmala Sitharaman

Budget 2025: Key Expectations from FM Nirmala SitharamanUnion Budget 2025: Key Expectations Across Sectors

The Union Budget 2025, which Finance Minister Nirmala Sitharaman will present on February 1, marks her eighth consecutive budget, making history. This budget is expected to drive economic growth and tackle prevailing challenges across multiple sectors.

Agriculture & Taxation
The budget will likely emphasize agricultural development by enhancing productivity and providing greater support for farmers. Proposed tax reforms may include discontinuing the old tax structure and introducing zero income tax for individuals earning under ₹10 lakh annually, though official confirmation is awaited. Balanced fiscal consolidation while maintaining economic momentum remains a key concern, particularly with inflationary pressures.

Real Estate Sector
Industry stakeholders are pushing for the real estate sector to receive ‘industry’ status, enabling easier financing and regulatory benefits. Niranjan Hiranandani, Chairman of NAREDCO, has outlined key priorities:

Affordable Housing: Increased funding to rejuvenate this sector and ensure sustainable urban expansion.
Home Loan Tax Benefits: Raising the deduction limit on home loan interest from₹2 lakh to₹5 lakh to encourage homeownership.
Infrastructure Status: Granting infrastructure recognition to housing to unlock investment opportunities.
Urban Development: strengthening energy and transport infrastructure for long-term growth.
Rental Housing: Expanding rental markets and eliminating the tax on unsold properties.
Tax Adjustments: Modifying capital gains tax and rationalizing income tax slabs to benefit taxpayers.
Slum Redevelopment: encouraging redevelopment projects, particularly in Mumbai, to increase housing supply.
Technology & Innovation
Calls for increased funding for artificial intelligence (AI) and technological advancement highlight the role of innovation in economic transformation. Suresh Khadakbhavi, CEO of Digi Yatra Foundation, stresses the need for a business-friendly environment with digital solutions such as cloud services, SaaS technologies, and integrated travel platforms to enhance the customer experience.

Travel & Tourism
The tourism industry, which contributes approximately $178 billion to GDP, is projected to reach $125 billion by FY 2027. Experts are advocating for tech-driven initiatives to enhance seamless travel experiences and align with India’s digital growth vision. Incentives for tech adoption in tourism could create a more sustainable and competitive industry while improving traveler experiences.

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FMCG Sector
India’s FMCG industry grew by 7% in 2024, with rural markets expanding 20% faster than urban areas. Projections suggest a 9.5% growth in 2025, driven by rural demand and premium product sales in urban markets. To maintain this momentum, targeted efforts in workforce upskilling, adaptive distribution strategies, and rural market penetration are crucial. The sector anticipates budgetary measures to curb inflation, simplify GST, boost rural consumption, and support R&D, e-commerce, and sustainability.

Conclusion
With key industries outlining their priorities, the Union Budget 2025 is expected to introduce reforms that stimulate economic growth, innovation, and sustainability. The government’s response will be instrumental in shaping India’s financial future and driving long-term development.

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