by Ankita Lodh on 30 January 2025, 3 minutes min read
The Hon’ble Finance Minister, Smt. Nirmala Sitharaman, shall present the Union Budget for fiscal year 2025-26 on February 1, marking her eighth consecutive budget presentation. As India prepares for the Union Budget presentation, expectations are building across various sectors.
This budget is particularly significant as it follows the recent general elections and aims to set a strategic economic agenda. Let’s take a quick look at what we can expect from the Union Budget 2025.
As the date approaches, several expectations and discussions are emerging around key areas of focus.
There is a strong expectation that the budget will allocate substantial funds for infrastructure development. We may expect the Union Budget 2025 to prioritise education through the Right to Education (RTI) Act and allocate more funds for the construction of school infrastructure, particularly at grassroots levels.
The government is likely to emphasise job generation, particularly in sectors that have been significantly impacted by recent economic challenges.
With the increasing importance of technology in various industries, there is speculation that the budget may include provisions to promote AI initiatives. This could involve funding for research and development as well as incentives for businesses to adopt AI solutions.
A primary expectation is the improvement of the tax framework concerning dividends. Currently, investors face taxation on dividends, which disproportionately affects those in higher tax brackets. A reduction in this tax or the introduction of a separate, lower rate would provide substantial relief. Additionally, simplifying capital gains tax and offering incentives for small investors could encourage broader participation in the market.
The budget is expected to reflect a commitment to fiscal discipline while balancing the need for growth-orientated spending. Analysts are keenly observing how the government plans to manage its fiscal deficit in light of increased expenditure demands.
The pharmaceutical sector has outlined clear expectations for the Union Budget 2025, with a strong emphasis on environmental sustainability. The sector’s visioA aligns with India’s broader environmental commitments while aiming to establish the nation as a pioneer in sustainable pharmaceutical manufacturing.
The steel sector has presented specific recommendations, including a proposal from Mr. Abhyuday Jindal, Managing Director of JSL, for an elevation in basic customs duty to 15% for nations outside free trade agreements. Industry leadership, including Mr. Dilip Oommen of AMNS India and Mr. Jayant Acharya of JSW Steel, advocates for protective measures against dumping while maintaining developmental focus.
The travel and tourism sector anticipates crucial reforms in the Union Budget 2025, focusing on GST rationalisation and input tax credits to boost competitiveness. The industry seeks support for digital transformation, skill development, and sustainable tourism practices, alongside promotional initiatives to enhance both domestic and international tourism growth.
Industry experts anticipate substantial investments in AI-powered urban solutions. The focus is expected to be on implementing intelligent traffic management systems, advanced surveillance networks, and data analytics platforms that can enhance public safety and urban efficiency.
With diverse sectors eagerly awaiting announcements that could reshape their futures, all eyes will be on Finance Minister Nirmala Sitharaman as she presents this crucial budget on February 1, 2025.
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