Budget 2025 Expectations: As India awaits Union Budget on Feb 1, what can you expect in this year's 'bahi khata'?
Budget Expectations: The Narendra Modi 3.0 administration is set to present its second Union Budget this week. All eyes will be on Finance Minister Nirmala Sitharaman as she reads what is set to be her eighth Budget speech in a row. Catch the latest updates on what businesses, industries and you can expect in the upcoming Union Budget.
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Budget 2025-26 Expectations: Finance Minister Nirmala Sitharaman is all set to reveal what's in store for the economy, businesses and the common man in the form of the Union Budget for 2025-26. With the Finance Minister due to announce the Union Budget for the financial year 2025-26 on Saturday, expectations are soaring once again for major reforms and tax sops. What will the Finance Minister's 'bahi khata' contain this time?
This will be the Narendra Modi 3.0 administration's second Union Budget after the 2024 general election. All eyes will be on the Finance Minister as she rises to read her Budget speech in Parliament at 11 am on Saturday. ALSO READ: Budget Special | What is ‘bahi khata’?
The Union Budget is an annual financial statement that outlines a government's planned expenses and revenue for the next financial year, which begins on the first day of April and ends on the last day of March every year. It projects Government of India's planned income (revenue) and expenses (spending) for the upcoming financial year as part of a comprehensive plan that details its financial priorities, allocations and policies.
Here's an overview of what the country can expect in the Union Budget for 2025-26.
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Will there be big ticket economic reforms in Budget 2025?
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Will the Union Budget 2025 be populist or progressive?
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Will there be changes in income tax slabs under the new or old regimes?
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Will the Finance Minister raise the capex allocation further?
To find answers to all such questions, you will have to wait till the Finance Minister rises to deliver her Budget speech in Parliament this year.
Budget Expectations | As the country awaits the Union Budget for 2025-26, take a look at what you can expect from the much-anticipated event:
Budget 2025-26 Expectations: Finance Minister Nirmala Sitharaman is all set to reveal what's in store for the economy, businesses and the common man in the form of the Union Budget for 2025-26. With the Finance Minister due to announce the Union Budget for the financial year 2025-26 on Saturday, expectations are soaring once again for major reforms and tax sops. What will the Finance Minister's 'bahi khata' contain this time?
This will be the Narendra Modi 3.0 administration's second Union Budget after the 2024 general election. All eyes will be on the Finance Minister as she rises to read her Budget speech in Parliament at 11 am on Saturday. ALSO READ: Budget Special | What is ‘bahi khata’?
The Union Budget is an annual financial statement that outlines a government's planned expenses and revenue for the next financial year, which begins on the first day of April and ends on the last day of March every year. It projects Government of India's planned income (revenue) and expenses (spending) for the upcoming financial year as part of a comprehensive plan that details its financial priorities, allocations and policies.
Here's an overview of what the country can expect in the Union Budget for 2025-26.
-
Will there be big ticket economic reforms in Budget 2025?
-
Will the Union Budget 2025 be populist or progressive?
-
Will there be changes in income tax slabs under the new or old regimes?
-
Will the Finance Minister raise the capex allocation further?
To find answers to all such questions, you will have to wait till the Finance Minister rises to deliver her Budget speech in Parliament this year.
Budget Expectations | As the country awaits the Union Budget for 2025-26, take a look at what you can expect from the much-anticipated event:
Latest Updates
Budget Expectations 2025: Capex for logistics industry likely to increase, focus on upgrading with tech
The government is expected to increase capital expenditure (capex) related to physical and digital assets, with a focus on the National Infrastructure Pipeline (NIP), and PM GatiShakti project, according to Zee Business research.
Focus will likely be placed on logistics, combined with technologies like AI, Internet of Things (IoT), and Robotics
Here are some expectations from the logistics industry:
- TDS exemptions
- Simplification of the tax structure
- Focus on creating e-commerce export hubs
Budget Expectations 2025: Indian Railways allocation likely to increase by 20%
Ahead of Budget, it is expected that the government will likely increase allocation by 15 per cent to 20 per cent to Rs 3 lakh crore, according to Zee Business research.
Here are some other focus areas of govt's for Indian Railways:
- Bullet train and Kavach-related projects
- Gati Shakti Multi-Modal Cargo Terminals
- Expansion of Dedicated Freight Corridors
- Increasing freight train speeds to 50 kmph
- Railway Station Redevelopment under Amrit Bharat
- The government may order 90 additional Vande Bharat trains
- Budget allocations may also be made for electrification and signalling of broad-gauge lines, and Level crossings and bridges
Renewable energy, smart metering, domestic manufacturing could be on government's radar: Zee Business
In the upcoming Budget, the government to focus on renewable energy, smart metering, and domestic manufacturing to boost power sector, according to Zee Business research.
Here are other key areas the government may emphasise under the power sector:
- Renewable energy storage capabilities
- Thermal power equipment and components
- Rooftop solar, large-scale solar, and wind projects
- Green hydrogen and offshore wind energy investments
Budget expectations 2025: Defence production likely to increase up to Rs 2 lakh crore
According to Zee Business research, India's defence production is expected to reach between Rs 1.9 and 2 lakh crore, with a focus on modernising defence forces and promoting local manufacturing.
Here are some highlights of expectations from the defence sector:
Modi government is likely to prioritise the expansion of the Defense Industrial Corridor and Production-Linked Incentives (PLI).
Investments are expected to increase in areas like research and development, UAVs/drones, anti-drone systems, and cyber defence.
Army and Navy forces may focus on modernised mobility vehicles and infrastructure development.
Budget Expectations 2025: Farmers expect subsidy on crop fertilizer up to Rs 1.8 lakh crore
According to Zee Business research, the consumer durables and agriculture sectors have high expectations from the budget.
Here's a summary of expectations from these sectors:
- The consumer durables sector hopes to benefit from a boost to urban infrastructure and housing.
- A reduction in personal income tax could also be advantageous.
- The agriculture sector expects subsidies on fertilizer to range from Rs 1.7 to Rs 1.8 lakh crore.
- The sector anticipates the announcement of a production-linked incentive (PLI) scheme for active ingredients and crop protection.
- Special focus may also be given to PM Kisan Samman Nidhi and crop protection insurance.
Government should reduce GST on health insurance, customs duty on cancer treatment drugs: Apollo Hospitals' MD
The Modi government should reduce customs duties tax on medicines that are used for cancer treatment, says Suneeta Reddy, Managing Director of Apollo Hospitals.
"This initiative should be extended to include targeted therapy drugs as well as advanced cancer treatment equipment like Radiotherapy machines and Robotics most of which have 37 per cent in customs duties and are primarily technologies offered by global medical technology companies," the MD said.
Further, she urged, GST on health insurance premiums needs to be lowered across the board to 5 per cent to foster greater insurance penetration.
Budget Expectations 2025: Any relief for OMCs? IOCL, BPCL, HPCL may be compensated with Rs 35,000 crore
Oil marketing companies are expected to receive compensation for LPG under-recovery, according to Zee Business Research
Here's what the Oil refineries and marketing companies can expect:
- The government potentially providing a subsidy of up to Rs 35,000 crore to major OMCs like IOCL, BPCL, and HPCL.
- The Oilfield (Regulations and Development) Amendment Bill may also be approved in the upstream segment.
Budget 2025 Expectations LIVE: Shipping industry likely to get Rs 30,000 crore Maritime Development fund?
In the upcoming Budget, the finance ministry may establish a Maritime Development Fund (MDF) to the tune of Rs 30,000 crore, sources told Zee Business.
With a focus on the allocation of the Rs 30,000 crore fund established by the government in this budget, according to them.
Additionally, personnel involved in ship repair will continue to receive customs duty exemptions.
It is also expected that new announcements will be made to promote the Maritime Vision 2047, known as the Samudri Amrit Kal, with a focus on sustainability.
Budget 2025 Expectations: Auto makers seek support for green tech, an EV ecosystem, consumer spending boost
Many auto manufacturers want the Finance Minister to provide merit-based policies in the upcoming Budget in order to support a full range of green technologies and alternative fuels. They also seek allocations to facilitate an EV ecosystem like charging infrastructure to further accelerate sustainable mobility.
With the automobile industry showing early signs of growth slowing down, many of them have said that budgetary initiatives to boost the disposable income of consumers are necessary to support robust growth.
Budget 2025 Expectations LIVE: IT sector seeks a central deep tech fund
The country's IT sector seeks the introduction of a central deep technology fund in the upcoming Union Budget, according to Zee Business research.
Here are some of the sector's other key expectations, according to Zee Business research:
- Changes in safe harbour rules to encourage tech innovation
- Focus on utilising SEZ reinvestment reserves
- Higher allocation for upskilling
Budget 2025 Expectations LIVE: Can the manufacturing sector expect a boost?
Industry body Confederation of Indian Industry (CII) expects the government to focus on boosting the manufacturing sector in the upcoming Budget.
As the economy continues to grow, the manufacturing sector holds an important role in unlocking sustainable development and job creation.
However, the sector has been facing challenges in recent years.
Here are some of its key expectations, as listed by CII:
- Fast-tracking the implementation of the National Manufacturing Policy
- Establishment of National Investment and Manufacturing Zones (NIMZs) in various locations with top priority
- Establishment of a high-level task force on incentives to promote mass manufacturing on a huge scale to offer jobs to low-skilled workers
- Investment threshold limit to be reduced to Rs 50 crore to encourage mid-sized companies to participate; quantum of deduction should be enhanced to 25 per cent
- Investment allowance should also be eligible for relief under MAT provisions
What are the benefits of Ayushman Bharat Pradhan Mantri Jan Arogya Yojana?
Currently, the government's PM-JAY initiative provides cashless cover of up to Rs 5 lakh to each eligible family per annum for listed secondary and tertiary care conditions.
This coverage includes all expenses incurred on the following components of the treatment:
- Medical examination, treatment and consultation
- Pre-hospitalisation
- Medicine and medical consumables
- Non-intensive and intensive care services
- Diagnostic and laboratory investigations
- Medical implantation services (where necessary)
- Accommodation benefits
- Food services
- Complications arising during treatment
- Post-hospitalisation follow-up care up to 15 days
Budget 2025 Expectations LIVE Update: Healthcare space expects Ayushman Bharat PM Jan Arogya scheme benefit to increase
According to Zee Business research, the country's healthcare sector is hopeful that the current insurance coverage under the Ayushman Bharat PM Jan Arogya scheme will be doubled to Rs 10 lakh in the upcoming Budget.
Budget 2025 Expectations LIVE Update: What can the healthcare sector expect from the Finance Minister?
According to Zee Business research, crucial spaces such as pharmaceuticals and healthcare have several expectations from the upcoming Budget, including:
- A 15-year tax holiday on new projects
- A 50% incentive on infrastructure-related expenditure by hospitals of 100 beds and beyond
- Expansion in the scope of the Production-linked Incentive scheme