Budget 2025 expectations highlights: What Indian industry wants from FM Nirmala Sitharaman's eighth budget

Budget 2025 expectations LIVE: Dhananjaya Bhardwaj, CEO And Founder, ParkMate said, “The announcement of a 1 lakh crore fund for private sector R&D, backed by a 50-year interest-free financing scheme, is a game-changer for us. It empowers our team to dream bigger, work on groundbreaking ideas, and develop innovative solutions that can transform parking and mobility as we know it. This isn’t just about research-it’s about creating technologies that solve today’s challenges while preparing for a smarter sustainable tomorrow. On top of this, the extension of tax benefits for startups until March 31, 2025, is a significant boost for companies like ours. It reinforces the government’s trust in startups and provides the support we need to stay focused on building advanced parking solutions that genuinely make life easier. These measures fuel our commitment to innovation and inspire us to contribute even more to the nation’s progress.”

Budget 2025 expectations LIVE: Tejas Goenka, Managing Director, Tally Solutions said, "MSMEs play a vital role in India’s economy, and the upcoming budget is an opportunity to address their challenges while enabling growth. Strengthening the Credit Guarantee Scheme to provide seamless access to affordable funding will help MSMEs reduce their dependence on costly informal sources. Additionally, incentivising investment in the MSME sector will drive more investment towards these businesses, enabling their growth.

The government should also look at expanding the Presumptive Taxation regime under Section 44AD to include service providers, freelancers, and small tech-driven businesses, to further simplify compliance and ease operational burdens. The budget should prioritize and focus on skill development, job creation, and simplified regulations to unlock the full potential of MSMEs, empowering them to drive economic growth and innovation."

Budget 2025 expectations LIVE: Tejas Goenka, Managing Director, Tally Solutions said, "India’s software products sector has immense potential to drive innovation and position the country as a global tech leader. To fully realize this potential, it’s important to recognize software products and packaged software as a distinct category and establish the right taxation framework. This will ensure a fair and supportive system that encourages sustainable growth and competitiveness. To further boost the sector, clarifying HSN or SAC codes for virtually exported software products and extending the RoDTEP scheme to cover these exports will help companies claim refunds on taxes paid, enhancing their global competitiveness.

At the same time, incentivizing research and development is critical to fostering innovation. Enhanced tax benefits for R&D will drive innovation, strengthen India’s digital ecosystem, and enable the industry to contribute significantly to the nation’s technological advancements and position the country as a global tech leader.”

Budget 2025 expectations LIVE: Ajay Lakhotia, Founder and CEO of StockGro said, "As we approach the Union Budget 2025, there is significant anticipation for tax reforms and job creation initiatives. A key expectation is raising standard deduction limit in income tax, which would provide essential relief to middle-class families and boost disposable income, encouraging greater economic participation.

Also, to foster an inclusive investment ecosystem, I hope the government evaluates increasing the long-term capital gains (LTCG) exemption limit to ₹5 lakh and reducing the Securities Transaction Tax (STT).

Additionally, expanding capital gains exemptions under Sections 54 and 54F for residential property reinvestment would truly support India’s vision of a robust financial market.

For Startups, simplifying ROC Compliance and keeping most of the sectors under Automatic FDI route will ensure brining in more capital into the ecosystem. These initiatives will not only drive innovation but also align with the improving the job market. Collectively, these efforts can help realize our vision of a 'Viksit Bharat' and promote economic progress for all."

Budget 2025 expectations LIVE: Aditya Dadia, Founder of Alwrite said, "The insurance industry in India has experienced significant growth in recent years and I am hopeful that the upcoming budget will include measures to further promote financial inclusion and security. I want to see a progressive budget and introduction of policies in the Union budget 2025-26 to promote insurance penetration across the corporate and social sectors.

In particular, I expect the government to reduce GST on insurance premiums especially health, accident and life insurance. Increasing the deduction will encourage individuals to invest in the insurance policies, thereby strengthening the industry and alleviating financial pressures on policyholders.

Overall, the Union Budget 2025 is anticipated to introduce reforms designed to foster the growth and accessibility of India's insurance sector."

Budget 2025 expectations LIVE: Dr. Sudhir Srivastava, Founder, Chairman, and CEO, SS Innovations said, “Innovation in medical technology, especially homegrown solutions, is essential for a self-reliant India. As we pursue the vision of Atmanirbhar Bharat, it is vital to not only promote indigenous technology but also ensure it reaches the people it is intended to serve, particularly through initiatives like Ayushman Bharat. Government support for Indian innovation will help make medical technologies both affordable and accessible to the masses. One area requiring attention is the import duties on critical components for medical devices, as India currently relies heavily on foreign imports. The Government should undertake serious investments into developing and manufacturing these critical components in India, but, in the meantime, revisiting these duties and creating a favourable environment, we can strengthen domestic production, positioning India as a global leader in med-tech innovation. Institutions such as IITs and Medical Government colleges can play a pivotal role in leading the MedTech revolution in the country provided they are given a right platform and proper infrastructural support.

Additionally, government backing for emerging fields like Telesurgery and Teleproctoring is crucial. These technologies can revolutionize healthcare delivery in remote regions by enabling access to expert surgical care and medical education through digital platforms. With the right policies and investment, Telesurgery can be a game changer, allowing specialists to perform surgeries remotely in underserved areas, while Teleproctoring ensures the spread of vital knowledge and expertise across the country. Building the necessary infrastructure for these technologies will ensure that quality healthcare reaches even the most isolated communities.

We firmly believe in the government's commitment to the “Make In India” vision. The future of healthcare in India depends on establishing homegrown technology as the cornerstone of progress, ensuring that world-class treatment is accessible to all.”

Budget 2025 expectations LIVE: Shivam Agarwal, VP of Strategic Growth at Sattva Group said, "As we prepare for the upcoming union budget, it’s crucial to present strategic recommendations to bolster the Indian real estate sector. The introduction of a single window clearance system has already improved approval processes, reducing project timelines and costs. To further enhance the sector, we propose several key measures:

FDI Regulation Adjustments: Review FDI norms to attract domestic and foreign investments, enhancing developer liquidity.

Revising Input Tax Credits: Establish a favorable input tax credit regime to ease financial burdens on developers.

Streamlined GST: Adjust GST for under-construction properties to promote growth in commercial real estate.

Targeted Rental Housing Strategies: Improve rental housing availability to address urban challenges.

Public-Private Partnerships: Invest in infrastructure to enhance connectivity in tier-2 cities."

Budget 2025 expectations LIVE: Ranjit Maayengbam MD & Founder of 3C IT Solutions & Telecoms (INDIA) Limited said, "As we look ahead to 2025, the IT and telecom sectors are set to witness transformative growth powered by 5G, AI, cloud computing, and the Industrial Internet of Things (IIoT). The upcoming budget holds immense potential to accelerate this momentum by focusing on critical areas that can drive innovation and inclusivity.

One key expectation is increased funding for Digital India initiatives like BharatNet, which can ensure rural connectivity and bridge the digital divide. Incentives such as subsidies or tax benefits for telecom companies investing in 5G infrastructure and research for 6G development will also be pivotal. Similarly, promoting the establishment of green data centers and encouraging SMEs to adopt cloud solutions can boost efficiency while supporting sustainability.

Simplifying regulations, such as implementing single-window clearances for ICT projects and reducing import duties on ICT equipment, will help businesses scale faster. Streamlining GST rates for ICT services and exports will also enhance our global competitiveness.

Workforce development should remain a priority, with investments in skilling programs for AI, IoT, and cybersecurity. Partnerships between universities and industries to align curricula with market needs will prepare talent for future demands. Lastly, initiatives to encourage women to participate in the ICT workforce will bring much-needed diversity.

These steps can position India as a leader in the digital economy."

Budget 2025 expectations LIVE: Josh Foulger, President (Electronics), Zetwerk Manufacturing Businesses said, "I believe the Indian ESDM sector is poised for explosive growth, potentially mirroring the success of the Indian IT sector. While initiatives like PLI are crucial, a two-pronged approach – enhancing value addition and aggressively targeting export markets – is essential to unlock its true potential.

At Zetwerk, we are committed to supporting both Indian Value Chains (IVCs) and Global Value Chains (GVCs) by identifying and capitalizing on value addition opportunities within India and strategically expanding into the US and European markets. This export-driven strategy, coupled with the significant growth potential within the domestic market, particularly in areas like IT hardware, consumer durables, and smart home devices, can propel the Indian ESDM sector to $500 billion annual revenue.

We applaud MEITY's efforts in creating an enabling environment for this transformation and believe that a strong focus on innovation and collaboration will be key to realizing this ambitious vision."

Budget 2025 expectations LIVE: Amit Modi, Director of County Group, said, "One of the most long-standing demands the sector emphasises upon is the need to grant industry status to enable easier access to low-cost financing, which benefits consumers directly. Additionally, implementing single-window clearance is crucial for timely project completion and cost efficiency." "Furthermore, reintroducing GST input credits for residential real estate will stabilise costs. We also expect to increase the home loan interest exemption to ₹8 lakhs annually to support first-time buyers, while Section 80C should exclusively cover housing loan principal deductions or raise its limit to ₹5 lakh."

Budget 2025 expectations LIVE: Uddhav Poddar, CMD of Bhumika Group says, “The foremost expectation is raising the Section 80C deduction limit for home loan repayments. We’ve also been waiting for real estate to be recognised as an official industry – this could really unlock the sector’s full potential and help it grow even more. On the commercial side, we believe the sector could use more support, especially with the government’s push for entrepreneurship. Lowering interest rates and creating a smoother approval process would also go a long way in making the whole ecosystem stronger.”

Budget 2025 expectations LIVE: Sandeep Chhillar, Founder and Chairman, Landmark Group said, "Supported by strong performance and sustained growth, the real estate sector is at a crucial point in its growth trajectory. The sector is pinning high hopes at the upcoming budget announcements to look into its long pending demands of industry status and single window clearance. Government must consider introducing policies and reforms, to further amplify foreign and domestic investment into the sector as it will further strengthen market sentiments. Additionally, we expect the government to consider a revision in taxation policies to offer greater benefits to first-time homebuyers as it could be a pivotal move fostering homeownership and driving broader economic growth."

Budget 2025 expectations LIVE: Mohit Kalia, Vice President (Sales), Raheja Developers, said, “Affordable housing is in urgent need of renewed attention. Incentivising purchases through measures such as increased income tax rebates would be a welcome step. The commercial real estate sector, aligned with the government’s push for entrepreneurship, also requires policy-level support to sustain its momentum. Rationalising interest rates to fuel demand and introducing a single-window clearance system to expedite approvals would further strengthen the real estate ecosystem.”

Budget 2025 expectations LIVE: Yogesh Mudras, Managing Director of Informa Markets in India, said, “India's jewellery industry, a cherished symbol of our cultural heritage, is poised to achieve a remarkable valuation of USD 21.54 billion, between 2023 and 2027. As we approach Budget 2025-26, the industry looks forward to impactful measures that enhance affordability, encourage compliance, and drive sustainable growth. To stimulate demand, we urge the government to introduce tax relief measures that boost disposable income and consumption. A reduction in GST from 3% to 1% would significantly ease the financial burden on businesses and consumers alike, particularly in rural regions. Moreover, a concessional GST rate for lab-grown diamonds would emphasise their sustainable and cost-efficient attributes, fostering innovation and aligning with global trends. Additionally, we anticipate proactive steps to curb unaccounted transactions in the retail jewellery sector, ensuring a more transparent and equitable business environment. Such initiatives would not only strengthen the industry's foundation but also propel it toward a vibrant and prosperous future. Informa Markets remains committed to supporting this dynamic sector by organising world-class trade events and fairs that showcase India’s unparalleled expertise in jewellery, gems, and pearls to a global audience. As stakeholders in this vibrant industry, we are optimistic about a budget that prioritises innovation, sustainability, and growth, driving India’s Gems and Jewellery sector to new heights."

Budget 2025 expectations LIVE: Muskan Jain, Brand Manager at MARS Cosmetics said, “The beauty and personal care industry in India is set for remarkable growth, with an estimated market size of $30 billion by 2027 and a compound annual growth rate (CAGR) of 10%. As a leading brand in this sector, we are optimistic that the Union Budget 2025 will address the key challenges in the industry. With high import duties on raw materials impacting cost structures, we hope the government will consider lowering these charges to make high-quality cosmetics more affordable. Additionally, providing incentives for domestic production will not only support the Make in India initiative but also help drive job creation, enhance local innovation, and encourage the development of homegrown beauty solutions. Streamlining regulatory processes and increasing access to financing for emerging beauty brands would also empower more businesses to expand and compete globally. By implementing these measures, the government can help establish India as a dominant force in the global beauty market, strengthen local manufacturing, and enable brands like ours to meet growing consumer demand while creating a sustainable and competitive ecosystem for the entire beauty industry.”

Budget 2025 expectations LIVE: Mihir Jain, Sales and Marketing Director, Insight Cosmetics said, “With market predictions indicating a value of $34 billion by 2028, India's beauty and personal care sector is expected to grow at a strong compound annual growth rate (CAGR) of 10-11%. As key players in the industry, we are hopeful that the Union Budget 2025 will introduce measures that support innovation, particularly in cruelty-free, vegan, and toxic-free beauty products. The beauty sector is set for significant growth, and we believe that policies promoting ethical beauty practices will help propel the industry forward. By prioritizing cruelty-free and toxic-free beauty products, the government can play a crucial role in making India a global leader in ethical beauty. We are confident that these initiatives will create fresh opportunities for brands, inspire greater consumer trust, and enhance India’s reputation as a hub for high-quality, ethically produced beauty products.”

Budget 2025 expectations LIVE: Vikas kakkar, CEO and Founder of Amara.ai said, "As Budget 2025 approaches, the technology and HR sectors anticipate policies that will further accelerate innovation, strengthen businesses, and drive economic growth. Artificial intelligence (AI) and HR technology, being integral to India’s digital transformation, require focused attention to unlock their full potential.

Firstly, there is a need to incentivize research and development (R&D) in AI and emerging technologies. Tax benefits or grants for companies investing in AI innovation can position India as a global leader in this space. Encouraging advancements in automation and AI-powered tools will also attract significant international investments, boosting the economy.

Another critical area is skilling and upskilling the workforce in AI, data science, and machine learning. Allocating resources for targeted training programs will equip professionals with the skills needed to adapt to technological advancements. Such initiatives will bridge the talent gap and enhance employability, particularly in rapidly evolving industries.

Support for startups and MSMEs is equally important. Simplified access to credit, tax reliefs, and funding support will empower smaller enterprises, which are the backbone of innovation and job creation in India. Measures to encourage HR technology adoption in these businesses—such as tax rebates or subsidies for deploying employee engagement and management tools—could drive productivity and inclusivity.

Lastly, policy interventions aimed at fostering collaboration between the public and private sectors can promote sustainable growth and create opportunities for innovation.

Budget 2025 holds immense potential to strengthen India’s position as a global tech and HR hub. With the right focus on AI innovation, workforce development, and SME empowerment, the government can catalyze progress and ensure inclusive economic growth, benefiting businesses and employees alike."

Budget 2025 expectations LIVE: Naresh Kumar, COO, Lauritz Knudsen Electrical and Automation said, “As India prepares for the Union Budget 2025, I am optimistic that the fine print shall strengthen business growth, promote innovation, and reignite the capex cycle. Sustained investments in infrastructure are imperative for India’s economic growth. With capital spending on infrastructure now at 3.4% of GDP, we anticipate continued prioritization of physical, digital, and social infrastructure as the nation works towards the vision of a Viksit Bharat by 2047.

Key initiatives such as the National Infrastructure Pipeline and Gati Shakti Master Plan, especially towards smart cities, road transport and railways, can unlock opportunities for long-term sustainable growth.

Extensions of the PLI scheme for solar energy, increased allocation for rooftop solar (PM Suryaghar Yojana), transmission grid infrastructure modernization, and smart metering infrastructure development, can accelerate the energy transition. Continued investment in power transmission infrastructure can augment this journey. Announcements to bolster energy storage solutions such as pumped hydro storage projects and battery energy storage systems, are key to India’s decarbonization. Following the increased investment in the National Green Hydrogen Mission, I anticipate continued financial incentives for pilot projects. With the budget's emphasis on digital infrastructure, we also see potential growth in data centres, implying increased power demand and investment opportunities. MSMEs remain the backbone of India’s economy, and targeted interventions are necessary to empower them. A Digital Acceleration Fund to support the adoption of AI, IoT, and cloud technologies would enable MSMEs to thrive in the digital economy. Initiatives like Skill 2.0 and Skill Credits could also address the growing skill gap and improve workforce readiness in emerging technologies. Expanding road networks, developing multi-modal logistics parks, and strengthening digital infrastructure shall enhance logistical efficiency and economic activity. In the context of global trade, achieving India’s ambitious export target of $2 trillion by 2030 shall require pivotal policy measures to enhance the competitiveness of Indian products. Financial support for solarizing and incentives for the domestic manufacturing of solar panels, cells, and batteries align with the “Make in India” vision and accelerate the energy transition. As the country advances its renewable energy goals, strong policy support is essential to achieve the 500 GW renewable energy target by 2030.

Investment in EV infrastructure, a robust FAME III initiative, and incentives for renewable energy integration, smart grids, and DISCOM modernization shall play a crucial role. Further, encouraging the development of green hydrogen infrastructure and supporting domestic oil and gas exploration shall bolster energy security while promoting sustainability.

Innovation is the bedrock of industrial progress, and the introduction of additional production-linked incentives (PLIs) for research and development (R&D) activities, tied to criteria such as employment generation, turnover, and capital investment, would significantly bolster the manufacturing sector.

In the context of global trade, achieving India’s ambitious export target of $2 trillion by 2030 shall require pivotal policy measures to enhance the competitiveness of Indian products.

Substantial investments in R&D institutions are essential to reduce reliance on foreign technologies and strengthen local capabilities.

Agriculture, employing 45% of India’s workforce requires focused attention. Enhancing irrigation coverage, digitizing agricultural processes, and promoting the adoption of advanced technologies are critical to mitigating climate impacts and ensuring resilience in this vital sector.

Today India’s per capita consumption of power is about a third of the global average, signalling the exponential headroom of growth that awaits, as demographic dividends start to bear fruit. At Lauritz Knudsen Electrical and Automation, we remain committed to matching every stride of the government’s march towards ‘Viksit Bharat’, especially as our INR 850 crore capital outlay takes shape. This capex shall augment our portfolio of energy management and automation solutions, those when deployed, will unlock growth powered by technology across different facets of the Indian economy.”

Budget 2025 expectations LIVE: Suresh Bansal, Founder & CEO of DCGpac said, "As we look forward to Budget 2025, the e-commerce industry stands at a pivotal juncture, demanding key reforms to enable sustainable growth. Simplifying the GST structure across states and reducing TDS on e-commerce sellers will significantly ease compliance burdens and improve cash flows, especially for MSMEs. Additionally, tax holidays for startups will encourage innovation and boost entrepreneurial activity.

Infrastructure development remains critical for e-commerce expansion, particularly in Tier II and Tier III cities. Investments in last-mile connectivity, smart warehousing zones, and subsidies for green logistics, including EV adoption, will accelerate delivery efficiencies while promoting sustainability.

We also need streamlined cross-border trade policies to simplify customs processes and promote exports, along with initiatives to encourage digital payments by reducing MDR rates. Supporting AI and automation technologies in e-commerce operations can drive efficiency, enhance consumer experiences, and improve supply chains.

Lastly, policies to protect small sellers and gig workers, alongside government-sponsored skill development programs, will ensure inclusive growth, creating employment opportunities and fostering a fair, thriving ecosystem. We are optimistic that these measures will position India as a global leader in e-commerce innovation and sustainability."

Budget 2025 expectations LIVE: Amit Shukla, General Manager - Head of Indian operations at Alma Medical Private Limited said, “The aesthetics industry in India is growing fast, thanks to various government initiatives, and the right steps can help it grow even more. For the 2025 Union Budget, we hope to see measures that will further boost the sector and make advanced treatments accessible to more people. Supporting research and development should be a priority. Setting up research hubs or providing funding for innovation can help create safer and more affordable treatments tailored to Indian consumers. While the Make in India initiative has encouraged local production, reducing import duties on raw materials unavailable domestically could lower manufacturing costs and improve quality. Simplifying rules for adopting new technologies is also important. Faster approvals and clearer guidelines would allow clinics to integrate advanced solutions efficiently, ensuring patients benefit from the latest developments. We also recommend offering tax benefits to businesses in this sector, particularly those expanding to smaller cities. This could help bridge the gap in access to advanced procedures for people outside metropolitan areas. Similarly, lowering GST on equipment used in aesthetic treatments would reduce costs, making these procedures more affordable for both providers and consumers. Another critical area is training. Aesthetic procedures require skilled professionals who can operate modern equipment and deliver safe, reliable results. Government programs to train and certify professionals in this field would help meet the growing demand. By taking these steps, the government can help the aesthetics industry grow stronger, improve accessibility, and position India as a global leader in advanced treatments.”

Budget 2025 expectations LIVE: Ritwik Khare, Founder and CEO of ELIVAAS said, “As the Union Budget is on its way, the hospitality industry is looking for an effort to support recovery and growth. One of the industry's primary expectations is comprehensive tax coverage. A 100% tax coverage across different segments could alleviate financial pressures. It can also ensure that important things like food services, accommodation, and travel are adequately supported. Adjusting the taxation rates can make tourism more attractive and will encourage both domestic and international visitors. India's robust USD 24 billion hospitality sector, fueled by increasing disposable income and the government's commitment to tourism infrastructure development, is poised for significant growth. The country’s success in hosting global events like the G20 and the ICC Cricket World Cup has attracted global brands and investors so far, positioning India as a key destination for hospitality development. Hospitality players are ready to open a record number of properties across the country, with emerging destinations like Ayodhya and Lakshadweep set to become popular hotspots this year. Therefore, the hospitality industry also seeks investments in tourism infrastructure and sustainability initiatives, which would not only create new employment opportunities but also increase productivity. The hospitality industry wants to be rescued from high operating costs and provided with an encouraging environment for any business venture, like holiday homes and villas. There is a good future in building well-educated and skilled manpower for the industry through education and training systems in hospitality services. The hospitality community now needs clear policy and fiscal measures that will help it get ready for the new year. Therefore, we expect a balanced budget that is going to promote real estate investment and employment generation in the hospitality sector. This will set us up for a resilient and thriving industry.”

Budget 2025 expectations LIVE: Praveen Singh, CEO of Aasoka (MBD Group) said, "As we approach the Union Budget 2025-2026, there is hope for a significant boost in budgetary allocation for education and skill development, ideally reaching 6% of GDP to align with the ambitions of NEP 2020. Such investment will be crucial for enhancing public-private partnerships, expanding skilling initiatives, and creating sustainable employment opportunities that contribute to individual empowerment and national economic growth. With the ambitious GER targets in higher education, leveraging technology and online learning is essential to provide millions of students with access to quality education. This can only be achieved if policies prioritize both accessibility and the consistent improvement of learning outcomes.

Many educational institutions continue to face challenges due to outdated infrastructure and limited technological resources, such as insufficient computer labs and unreliable internet access. Addressing these gaps, along with equipping both students and faculty with the right tools and training, is vital to preparing future generations for a tech-driven job market. A clear policy roadmap is needed to ensure that critical learning skills are delivered effectively from primary to higher education, empowering students to thrive in a rapidly evolving world."

Budget 2025 expectations LIVE: Aarul Malaviya, Founder of Zamit said, "The Union Budget’s allocation for school education plays a pivotal role in shaping the future of our nation. A well-planned budget can address systemic challenges and lay the groundwork for a more equitable and dynamic education system. Prioritizing investments in digital infrastructure is crucial, especially as technology becomes an integral part of the learning process. Ensuring that schools across urban and rural areas have access to high-speed internet, modern devices, and interactive platforms can bridge the digital divide and create equal learning opportunities for all students. Equally important is the allocation for teacher training and development. Teachers are the cornerstone of quality education, and equipping them with modern pedagogical tools, digital literacy, and innovative teaching techniques can significantly elevate the learning experience. Empowered teachers are better positioned to inspire students and adapt to the evolving educational landscape. Investments in personalized learning tools, including adaptive learning technologies and AI-driven platforms, can further enhance education quality by addressing the unique needs of each student. These tools provide tailored learning experiences, enabling students to progress at their own pace while mastering critical skills.

By integrating technology and fostering innovation, we can bridge gaps in accessibility, improve learning outcomes, and prepare young minds for the demands of a dynamic, knowledge-driven economy. Thoughtful budgetary allocations will ensure that education becomes a transformative force, empowering students to thrive in an increasingly competitive and interconnected world."

Budget 2025 expectations LIVE: Tejas Patil, Founder, Arbour Investments said, "as we approach the Union Budget 2025, the real estate sector, currently contributing approximately 7.3% to India's GDP and projected to reach 13% by 2025, anticipates reforms to address persistent challenges and unlock its full potential. This sector is also a significant employment generator, supporting over 50 million jobs, underscoring the need for focused policy attention.

A critical expectation is the granting of 'Industry' status to real estate, which can streamline access to institutional finance, potentially reducing borrowing costs and enhancing transparency. Furthermore, increasing the tax exemption limit for housing loans from ₹2 lakh to ₹3 lakh could spur demand for residential properties, making homeownership more affordable for the middle-income segment.

Amendments to GST regulations, such as allowing input tax credit on under-construction properties, can reduce costs for developers and end-users. Additionally, reducing the GST rate on cement from the current 28% to 18% would lower construction costs, thereby promoting growth in the housing sector.

Infrastructure development should remain a priority, with increased budgetary allocations for urban renewal projects and connectivity initiatives. The previous year's capital expenditure saw a significant increase, and a similar push this year could accelerate growth, particularly in tier 2 and 3 cities.

Lastly, fostering private investments through Alternative Investment Funds (AIFs) and offering tax incentives to institutional investors will ensure liquidity and enable ambitious projects.

We hope the upcoming budget takes these transformative steps, empowering real estate to remain a cornerstone of India’s growth story."

Budget 2025 expectations LIVE: Sher Singh Rathore, founder of BRIC-X INFRA Pvt. Ltd said, “As India continues facing urbanization and increased demand for housing, the real estate sector awaits more incentives from the 2025 Union Budget to fuel growth. Affordable housing, infrastructure development, and sustainability remain key expectations. The industry will benefit from the continuance of tax advantages for low-cost house developers, and there could also be additional funding for schemes like Pradhan Mantri Awas Yojana, and PMAY, which would remain a core initiative to fill up the country's housing deficit.

We expect the government to introduce measures to make home loans more accessible, especially to middle-income and first-time homebuyers as interest rates are stabilizing and inflationary pressures are expected to ease. The sector expects direct support through rebates under income tax or reduced GST rates on residential properties further nudging home ownership.

Other critical expectation areas include encouraging eco-friendly and sustainable building practices. The Budget is expected to outline tax incentives to developers, incorporating eco-friendly technologies such as energy-efficient designs and materials. Simplifying regulating processes alongside incentives to redevelop old, underutilized properties would spur city regeneration and renewal.

We expect the 2025 Budget to continue with the initiatives from the previous year and to further continue creating an environment geared towards affordable housing and sustainable development as well as modernization in India’s real estate.”