With the Union Budget 2025-26 set to be unveiled on February 1 by Finance Minister Nirmala Sitharaman, various sectors of the economy have voiced their expectations, hoping for relief measures and strategic initiatives. Here’s a closer look at what different stakeholders are anticipating:
Income Tax Relief for Individuals
Taxpayers are optimistic about reforms that could ease their financial burdens. The industry is abuzz with expectations of:
- Raising the basic exemption limit under the new tax regime from ₹3 lakh to ₹5 lakh.
- Increasing the full rebate limit from ₹7 lakh to ₹10 lakh.
- A higher standard deduction for salaried individuals, particularly in light of hybrid work models.
Such changes would significantly benefit the middle class and boost disposable incomes.
Focus on Agriculture: Empowering Rural India
The agricultural sector is expected to see a budgetary boost of over 15%, the largest increase in six years. Key areas likely to benefit include:
- Policies promoting high-yield crop varieties.
- Enhanced storage and cold chain infrastructure.
- Increased production of pulses, oilseeds, and dairy products to stabilise inflation and ensure food security.
There’s also anticipation of greater support for farmer-producer organisations (FPOs) and research and development initiatives in agriculture.
Infrastructure Development: Railways in the Spotlight
A major shift is anticipated in the infrastructure sector, with railways emerging as a key focus area. The government is expected to allocate ₹2.9-3 trillion to modernise the Indian Railways network, expand routes, and introduce more high-speed trains. This investment aims to improve connectivity while fostering economic growth and job creation.
Healthcare Sector: More Tax Benefits Expected
The healthcare industry is hoping for increased tax exemptions and deductions for health insurance policies to encourage more individuals to seek coverage. Industry leaders are also advocating for incentives to boost local production of medical equipment and medicines, aiming to make healthcare more affordable and accessible.
Industry & Start-ups: Tax Reliefs and Investments
The Confederation of Indian Industry (CII) and other industry bodies are pushing for reforms that could invigorate the economy. Expectations include:
- Rationalisation of GST rates to simplify tax compliance.
- Lower corporate taxes for start-ups to encourage innovation.
- Continued focus on capital expenditure, with a proposed 25% increase in allocations, particularly in infrastructure.
These measures are anticipated to drive private sector investments and boost consumption.
Green Growth and Sustainability
Amid global discussions on sustainability, India is expected to make substantial investments in green energy. The budget could prioritise:
- Incentives for renewable energy projects, particularly solar and wind power.
- Electric vehicle infrastructure expansion to encourage EV adoption.
- Funding for waste management and sustainable urban development.
Relief Through Subsidies
To combat rising inflation and alleviate the cost burden on households, the government plans to increase subsidies on food, fertilisers, and cooking gas by 8%, amounting to ₹47.41 billion. This step will help stabilise essential goods prices and support rural and urban households alike.
Education & Skill Development
The education sector is looking for increased allocations to promote digital learning platforms and skilling initiatives for the youth. There’s a growing demand for policies that enhance employability, particularly in emerging fields like AI, data analytics, and robotics.
As Finance Minister Nirmala Sitharaman prepares to present the budget, expectations are running high. Will the government deliver on tax reforms, green growth, and infrastructure development while ensuring relief for the common man? Only time will tell. Stay tuned as the nation awaits one of the most anticipated financial events of the year.
