Sat Feb 01 10:51:35 IST 2025: ## Union Budget 2025: Expectations High for Growth and Inclusivity

**New Delhi, February 1, 2025** – Finance Minister Nirmala Sitharaman presented her record eighth consecutive Union Budget today, outlining the government’s fiscal policies for the upcoming year. The budget comes amidst a backdrop of moderating economic growth and high expectations from various sectors and demographics.

The life sciences sector is seeking significant government support to reach its ambitious USD 130 billion target by 2030. Key demands include a renewed 200% tax deduction for R&D spending on novel drugs and expanded Production Linked Incentive (PLI) schemes to boost Active Pharmaceutical Ingredient (API) manufacturing and medical device production. Experts also highlighted the need for investment in AI for drug discovery.

The budget is expected to address concerns across the spectrum, with the middle class hoping for income tax relief, particularly in the ₹7-10 lakh annual income bracket. Farmers anticipate measures to control inflation and ease the cost of living, while youth are seeking job creation initiatives. The government has indicated a focus on women, farmers, and the common man.

Minister Rajnath Singh stated that the budget will cater to every section of society, while the IMC Chamber of Commerce and Industry highlighted expectations for targeted support for farmers, youth, women, and salaried employees.

Environmental concerns are also on the agenda, with calls for greater clarity on climate financing, including tax incentives for green projects and the development of a domestic carbon market.

The budget is also expected to include measures to support crucial sectors such as real estate, MSMEs, healthcare, AI, electric vehicles (EVs), and renewable energy. Proposals include simplifying the tax regime, expanding PLI schemes, and prioritizing investments in smart city initiatives and infrastructure projects like railways.

The government is projected to maintain fiscal prudence, with estimates suggesting a fiscal deficit of around 4.5% of GDP. The budget will be closely scrutinized for its impact on India’s economic growth and its ability to address the concerns of its diverse population. Early market reactions were positive, with benchmark indices opening higher. Finance Minister Sitharaman arrived at Parliament wearing a Madhubani art saree, paying tribute to Padma awardee Dulari Devi.

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