Union Budget 2025 Expectations Highlights: What are different sectors anticipating from FM Nirmala Sitharaman?

Union Budget 2025 Expectations Highlights: This Budget 2025 expectations blog is now closed. Stay tuned with Livemint to find more LIVE coverage on the Union Budget 2025-26 here.

Union Budget 2025 Expectations Live Updates: Aman Sharma, Managing Director of Aarize Group said, "With the upcoming budget 2025, the real estate sector anticipates policies that will accelerate growth across key segments. For commercial real estate (CRE), we expect incentives and simplified regulations to attract global investors and strengthen India’s economic trajectory. 

The luxury housing market, driven by evolving lifestyles and aspirations, would greatly benefit from measures like reduced stamp duties and enhanced tax reliefs. Tier-2 cities, with their growing potential, require a strategic focus on infrastructure and industrial development to unlock new opportunities for developers and investors. Aarize Group is optimistic about a progressive budget that fosters growth and innovation across the real estate sector."

Union Budget 2025 Expectations Live Updates: Kirthi Chilukuri, Founder & MD of Stonecraft Group said,

"From Budget 2025, we seek a balanced approach that benefits both developers and buyers. Recognizing real estate as an industry would unlock access to affordable funding, streamline approvals, and attract investments, driving economic growth. Easing the GST burden on developers and reviving the Credit Linked Subsidy Scheme (CLSS) for first-time homebuyers could stabilize property prices and boost the housing market. 

Revising the home loan interest deduction under Section 24(b) to ₹5 lakh and revisiting capital gains taxation would enhance liquidity across segments, benefiting all stakeholders. Prioritizing urban infrastructure investment and offering incentives for green building adoption can create sustainable, livable cities while aligning with national climate goals."

Union Budget 2025 Expectations Live Updates: Niranjan Govindekar, Partner, Corporate Tax, Tax & Regulatory Services, BDO India:

"Budget 2024 had made big changes to the capital gains tax framework, offering both challenges and benefits for investors. Some provisions need a relook. For instance, to streamline the capital gains tax structure by aligning tax rates/ period of holding across various sub-asset classes, for instance, treating international equities the same as domestic equities, debt funds the same as gold funds, and gold funds the same as gold ETFs.

The hike in short-term rates from 15 per cent to 20 per cent and in long-term rates from 10 per cent to 12.5 per cent has raised investor tax liabilities significantly. Since now the LTCG tax on securities is on par with other assets, the Securities Transaction Tax (STT) should be abolished.

Budget 2024 unexpectedly removed the indexation benefit for all long-term investments in debt funds. It is expected that all investments in debt funds made up to 31 March 2023, would qualify for the indexation benefit as per earlier provisions.

Tax implications on the buyback of shares - under the amended provisions, the entire consideration received is treated as dividends and taxed in the hands of the shareholders. It is recommended that the government amend the law to allow the cost of the acquisition of shares as a reduction and tax only the net amount as a dividend."

Union Budget 2025 Expectations Live Updates: Sofiya Syed, Direct Tax Division, Dewan P.N. Chopra & Co.

"As we approach the Union Budget 2025, capital gains tax rationalization is one of the key areas that everyone has been focusing on. Some of the key demands for the rationalization of capital gains tax include lowering tax rates on long-term capital gains, revising the thresholds for LTCG tax, enhancing indexation benefits, increasing threshold limits of deductions like 54, 54F, etc., and other similar measures. 

The government has often balanced between making changes to encourage investment and maintaining revenue targets. The FM is likely to weigh the potential revenue impact of any changes and whether it aligns with broader economic goals. Given the current economic priorities, such as boosting consumption, job creation, and handling fiscal deficits, tax rationalization could be linked with broader reforms. 

The FM's stance on capital gains tax rationalization will likely depend on a careful assessment of how much the government can afford in terms of tax cuts while still balancing its budgetary goals. While it's uncertain if the FM will concede fully to the demands of capital gains tax rationalization, the market continues to expect some changes that could benefit long-term investors."

Union Budget 2025 Expectations Live Updates: Kushagra Srivastava, Founder of Chakr Innovation, a leading clean-tech company, on budget expectations for the overall renewable space

"As we approach the Union Budget, it is imperative for the government to prioritize policies that accelerate the adoption of clean technologies and renewable energy. The cleantech sector is keenly observing the potential support for industries committed to sustainability. 

Initiatives like the PM-KUSUM Scheme and the National Solar Mission have laid the foundation, but additional incentives such as tax benefits, grants, and subsidies will encourage more organizations to transition toward green solutions. 

Promoting self-reliance under Atmanirbhar Bharat while reducing dependency on external resources will further strengthen India's economic resilience. A focused approach in this direction will not only drive environmental health but also establish India as a leader in sustainability and innovation."

Union Budget 2025 Expectations Live Updates: Sudeep Bhatt, Director Strategy, Whiteland Corporation says, "The upcoming budget presents an opportunity to move the real estate sector towards growth and resilience. The industry seeks better tax benefits for homebuyers, particularly a higher deduction limit for home loan interest to boost housing demand.

Rationalization of GST rates for under-construction properties and incentives for green and sustainable real estate projects are also likely anticipated. Additionally, policies to enhance liquidity for developers, promote ease of doing business and incorporate private and foreign investments through relaxed FDI norms are crucial. This budget can catalyze the real estate sector’s potential, making it an important element for the country’s economic development and employment generation."

Union Budget 2025 Expectations Live Updates: Ashish Sharma, AVP Operations, Brahma Group, says, "As we look forward to the Union Budget 2025, the commercial real estate sector anticipates measures to drive growth and innovation, with Grade A office spaces playing a crucial role in attracting global businesses, boosting economic progress, and establishing standards for sustainability and design. 

We encourage the government to consider policies such as tax incentives for green-certified commercial projects, easier access to financing, and streamlined regulatory approvals to accelerate developments. Enhancing infra in key business districts and offering incentives for hybrid workspace solutions can further boost demand. The budget is an opportunity to address the diverse needs of luxury commercial real estate, ensuring India remains a prime destination for global corporates and high-value investments."

Union Budget 2025 Expectations Live Updates: Shivam Thakral, CEO of BuyUcoin told Livemint they hope to see big steps forward for India's Web3 industry. 

Expectations include: Lowering the current 1% TDS and 30% capital gains tax on virtual digital assets (VDAs); policies that not only get people to invest but also bring talented folks back to India; setting clear guidelines and changing tax rules. 

Union Budget 2025 Expectations Live Updates: Abhinav Jain, Co-Founder and CEO of Almond Ai is hopeful this budget emphasises policies that accelerate AI adoption across industries. 

His wishlist includes: “Incentives for businesses driving green tech; investments in digital infrastructure and smart tech; more tax breaks, funding schemes, and R&D grants specifically targeted at tech-driven startups."

Union Budget 2025 Expectations Live Updates: The hotel industry is eyeing GST rationalisation, improved infrastructure in this Budget announcement.

According to Rahul Uppal, Director of Echor Hotels, “We expect the 2025 budget to focus on rationalising GST slabs for the hospitality sector … improved infrastructure would unlock the true potential of offbeat destinations." His other expectation is for skill development initiatives in local communities to contribute to the growing tourism industry.

Finance Ministry has called a meeting of heads of Public Sector Banks (PSBs) on Wednesday to review progress of various financial inclusion schemes, including Jan Suraksha and Mudra Yojana.

The meeting, which would see participation from representatives of private sector banks, is scheduled to be chaired by Financial Services Secretary M Nagaraju.

The Union government's efforts on infrastructure development and investments in critical sectors such as railways, defence, power, and data centres are expected to drive growth momentum into the financial year (FY) 2026 and beyond, says a report by financial services firm Prabhudas Lilladher.

According to the report, the foundations for a gradual economic recovery appear to be taking shape due to the government stepping up efforts to accelerate capital expenditure (capex) spending.

Indian Biogas Association (IBA) has urged the finance ministry to create blanket corporate tax holidays for compressed biogas (CBG) production in the forthcoming General Budget to attract investment in the sector to promote this renewable energy source.

Earlier this month, in a letter to Finance Minister Nirmala Sitharaman, IBA said that this will act as an incentive for businesses, which are willing to invest in and scale up CBG production, contributing to cleaner energy generation.

"It is proposed that the government create blanket corporate tax holidays for CBG production. In particular, a complete tax waiver should be introduced for CBG producers, which provides tax relief in the initial years of operation," the industry body said.

To reduce litigation, Finance Minister Nirmala Sitharaman in the upcoming Budget may announce an Amnesty Scheme for customs to foster ease of doing business.

"The main asks of the industry would certainly be aligned with the objectives of the government and one objective of the government has been litigation reduction. On that front, having an amnesty scheme for customs especially covering pre-GST legacy taxes like additional duty, special additional duty has been one of the asks of the industry," Price Waterhouse & Co LLP managing director Anurag Sehgal said.

According to EY India, a one-time dispute/litigation resolution/settlement scheme should be introduced under the Customs Law to settle and resolve pending disputes.

"An amnesty scheme, along the lines of Sab ka Vishwas, will be a welcome decision. The industry has been waiting for such a scheme for years to address pending litigation matters under customs,” Deloitte India partner Mahesh Jaising said.

Industry body CII has put forward a 10-point specific suggestion before the central government ahead of Budget 2025, to increase Ease of Doing Business in India.

First, the industry body suggested that all regulatory approvals - central, state and local levels - must mandatorily be provided only through the National Single Window System (NSWS), which they believe will help bring about transparency and speed in the processes.

In the first stage, CII suggested that it should be completed for all central ministries within the next six months, followed by bringing on the platform, states, in a phased manner. A dedicated central budget could be allocated for the purpose, especially from the point of view of incentivizing states to shift completely to the portal. -- ANI

Union Budget 2025 Expectations Live Updates: YR Nagaraja, MD of Ramky Infrastructure expects a 30 per cent increase in infrastructure spending to ₹18 lakh crore in the coming Budget.

“We urge the government to continue focusing on the Atal Mission for Rejuvenation and Urban Transformation (AMRUT); partnerships that drive sustainable infrastructure projects must be explored; incentives for eco-friendly construction materials; introduction of a sustainability rating framework; and continued focus on holistic urban development schemes” are among his other anticipated moves.

Union Budget 2024 Expectations Live Updates: Sumit Gupta, co-founder of CoinDCX believes that the current taxation framework is unintentionally pushing users and trading volumes to offshore platforms. 

“Reducing TDS to 0.01 per cent and ensuring uniform compliance for all platforms, including offshore entities,” is on his list of expectations. He is also looking forward to comprehensive regulations, including a licensing framework.

Union Budget 2025 Expectations Live Updates: Andre Eckholt, MD of Hettich India is anticipating the Production Linked Incentive (PLI) scheme for the furniture sector in this Budget announcement. 

He feels this could “modernise the sector, enhance exports, and align with the ‘Make in India' initiative”, adding that the PLI scheme would allow the industry to invest capex, reduce production costs and boost global competitiveness.

Other expectations include lower tax rates for GST and income tax to drive consumer demand.

Union Budget 2025 Expectations Live Updates: Gracy Chen, CEO at Bitget feels that India’s stance on crypto regulation is being followed by nations worldwide, adding that a “balanced approach” in the 2025 budget could provide immense potential for innovation and financial inclusion for crypto. 

Among the expectations are cut in likely tax on digital assets; regulatory clarity; and collaboration between policymakers and industry leaders.