Tue Jan 28 22:38:55 UTC 2025: ## India Awaits Union Budget 2025: Focus on Infrastructure, Tax Reliefs, and Economic Growth

**New Delhi, January 28, 2025** – India is gearing up for the presentation of Union Budget 2025 on February 1st, with Finance Minister Nirmala Sitharaman expected to unveil a range of measures aimed at boosting economic growth and addressing key sectors. The Budget session of Parliament will begin on January 31st, with President Droupadi Murmu’s address to a joint session, and conclude on April 4th. The Economic Survey will be presented on January 31st.

This year’s budget is anticipated to prioritize continued investment in core capital expenditure, particularly in railways, roads, and defense, although a significant overall increase is unlikely. Measures to stimulate consumption are also expected, along with significant tax breaks for salaried middle-class taxpayers. These reliefs may include increased exemption and deduction limits under both the new and old income tax regimes, and potentially expanded benefits for health and life insurance premiums and voluntary NPS contributions.

Various industry sectors are expressing their hopes for the budget. The defense sector anticipates increased allocations for modernization and boosting “Aatmanirbharta” (self-reliance) in defense manufacturing. The startup ecosystem is looking for investment incentives under Section 80C, similar to the impact ELSS schemes had on mutual funds. The paint industry hopes for measures to drive growth and sustainability, including reduced import duties on raw materials and incentives for R&D and technological upgrades. The real estate sector is seeking enhanced liquidity, infrastructure funding, and clearer guidelines for REITs. The fintech sector is optimistic about continued support for digital payments and financial inclusion, particularly for MSMEs.

Economists predict a focus on reducing the fiscal deficit to around 4.3-4.4% of GDP for FY26, while maintaining or increasing capital expenditure. Further benefits for MSMEs and industry are expected through the PLI scheme. The possibility of special income tax rebates to boost consumption is also being considered. This budget is seen as crucial for India’s ambition to become a $7 trillion economy by 2030, with a strong emphasis on infrastructure development, policy consistency, and technological adoption. The budget will be closely watched by all sectors for its impact on the nation’s economic trajectory.

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