Mon Jan 27 19:31:47 UTC 2025: ## India Awaits Budget 2025: Hopes High for Economic Boost and Sector-Specific Reforms

**NEW DELHI** – With just a week until Finance Minister Nirmala Sitharaman presents her eighth Union Budget on February 1st, anticipation is high across India. The budget, coming amidst a backdrop of subdued economic growth, a weakening rupee, and global uncertainty, is expected to focus on revitalizing key sectors and strengthening the economy.

The Finance Ministry’s traditional “Halwa ceremony,” marking the commencement of the budget printing process, was held on Friday, though without the usual public announcement.

Experts anticipate a balanced approach, prioritizing both capital expenditure (capex) and consumption growth while aiming to maintain the fiscal deficit target of 4.5 percent. Elara Securities predicts a 14 percent increase in capex for FY26E compared to FY25E.

Several industry stakeholders have voiced their expectations:

* **Electric Vehicle (EV) sector:** Calls for including EV financing under Priority Sector Lending guidelines and tax exemptions for Non-Banking Financial Companies (NBFCs) to lower borrowing costs and boost adoption.

* **Education sector:** Requests for increased investment in education infrastructure, particularly in skill development and the integration of AI in learning. Support for hybrid learning models and increased GDP allocation to education (6%) are also key demands. Easing patent application processes and removing land ownership restrictions for educational institutions are also sought.

* **Logistics sector:** Advocates for investment in smart logistics parks and multimodal transport networks, incentivizing green logistics through electric vehicles and biofuels, and fostering an equitable environment for all stakeholders.

* **E-commerce sector:** Urges for policies that align with innovation, investing in AI and digital infrastructure, simplifying compliance for MSMEs, and boosting cross-border commerce.

* **Electronics and Smartphone manufacturing:** Seeks increased allocation for semiconductors, high-capacity batteries, and display technologies under the Production Linked Incentive (PLI) scheme, as well as focused R&D grants for AI and IoT.

* **Renewable Energy:** Calls for reducing GST on renewable equipment, expanding green credit programs, increasing R&D funding for solar technologies, and investing in transmission infrastructure.

* **Healthcare (Fertility):** Advocates for the inclusion of fertility treatments under the Ayushman Bharat scheme and tax incentives for such treatments.

* **Manufacturing:** Hopes for policy initiatives that fuel innovation, support skill development in automation and AI, and provide sustained support for R&D.

* **Finance:** Suggests boosting consumption by increasing disposable income through tax rebates and increasing tax deduction limits for housing loan interest. It also calls for increasing housing loan limits under priority sector lending and lowering the SARFAESI threshold for faster resolution of stressed accounts for NBFCs.

The Budget Session of Parliament will run from January 31st to April 4th. The upcoming budget is widely seen as crucial for sustaining economic momentum and addressing critical challenges facing various sectors of the Indian economy.

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