Union Budget 2025 Expectations Updates: CII has urged that the upcoming FY26 budget may introduce additional measures to boost job creation, highlighting the need for large-scale employment opportunities to engage India's young population and foster inclusive growth.
The industry body has proposed a seven-point agenda to leverage India’s demographic advantage, which includes an integrated national employment policy, support for labor-intensive sectors, and the creation of an international mobility authority, among other measures.
With a median age of 29, India is a youthful nation and is expected to see its working-age population grow by 133 million by 2050. CII also suggested the government consider launching an internship program in rural areas to provide opportunities for college-educated youth.
Finance Minister Nirmala Sitharaman will present the Union Budget for the fiscal year 2025-26 on February 1, 2025, in the Lok Sabha. This marks her eighth consecutive budget presentation and the second full budget of the Modi government in its third term. As always, the session will commence at 11:00 am IST.
Pawan Sharma, Managing Director of Trisol RED, emphasized that granting ‘Infrastructure Status’ to the real estate sector could revolutionize the industry by providing access to affordable long-term financing and boosting investor confidence. He also suggested increasing home loan interest deductions to encourage first-time buyers and promote greater inclusivity in homeownership, driving the housing market’s growth.
Neeraj Sharma, Managing Director of Escon Infra Realtors, stated that conferring ‘Infrastructure Status’ on the real estate sector could transform its future, making long-term financing more accessible at favorable interest rates. He also emphasized the importance of implementing a single-window clearance system for project approvals, which would improve efficiency, speed up project timelines, and play a key role in boosting employment nationwide.
Chandrajit Banerjee, Director General of CII, emphasized the need for boosting productivity alongside higher employment in India. He pointed out that India's Incremental Capital Output Ratio (ICOR) currently stands at 4.1 and needs to be reduced. Banerjee suggested that the Union Budget could establish an expert committee to analyze this issue in detail and provide recommendations for improvement.
Sanchit Bhutani, Managing Director of Group 108, urges the government to grant industry status to the real estate sector in the upcoming Union Budget. He anticipates fiscal incentives to boost demand and supply, along with tax benefits for REIT investors under Section 80C. Bhutani also highlights the need for a single-window clearance system to expedite project delivery and calls for measures to cap interest rates, ensuring favorable conditions for sustained growth in the sector.
Mohit Kalia, Vice President (Sales) at Raheja Developers, emphasizes the urgent need for renewed focus on affordable housing, suggesting increased income tax rebates to incentivize purchases. He also advocates for policy support to sustain the momentum of the commercial real estate sector, aligned with the government's entrepreneurship push. Kalia recommends rationalizing interest rates to stimulate demand and introducing a single-window clearance system to expedite real estate approvals, further strengthening the sector.
CII has highlighted the need to increase women's participation in the workforce to boost India's economy. It suggests initiatives such as constructing dormitories using CSR funds, formalizing sectors like the care economy, and establishing government-supported creches in industrial areas. Additionally, the rollout of labor codes and ensuring social security for gig and platform workers will strengthen the employment sector.
To tap into global workforce opportunities, CII proposes the creation of an international mobility authority under the Ministry of External Affairs, which would facilitate collaborations for Indian youth to access overseas job markets. The authority could also partner with the Ministry of Skill Development to develop skill programs aligned with international demands, focusing on both technical expertise and cultural, foreign language training
Sanjay Sharma, Director of SKA Group, highlighted key expectations from the upcoming budget, particularly the long-awaited recognition of the real estate sector as an industry. This would not only stimulate growth but also support the "Housing for All" initiative and employment generation. He also hopes for the introduction of a single-window clearance system to simplify approvals and a stronger push for affordable housing to meet the growing demand.
CII has suggested that the upcoming FY26 budget may include additional measures to boost job creation, emphasizing the importance of large-scale employment to productively engage India's youth and drive inclusive growth in the world's most populous country.
The industry body proposed a seven-point agenda to leverage India’s demographic advantage, which includes an integrated national employment policy, support for labor-intensive sectors, and establishing an international mobility authority.
With a median age of just 29, India is a young nation and is projected to add 133 million people to its working-age population by 2050. CII recommended launching an internship program in rural government offices for college-educated youth, which could create short-term employment opportunities while bridging the gap between education and professional skills.
As Union Budget 2025 approaches, key players in the dairy and poultry sectors are hopeful for policy changes that can address challenges and promote future growth. These sectors are critical for rural income and food security, and require interventions to enhance efficiency, market access, and production risk coverage against climatic and market uncertainties.
There are expectations for financial incentives aimed at modernizing dairy and poultry infrastructure. Improvements in sewage, storage, and marketing capacities, along with cold storage and supply chains, can reduce wastage and boost farmers' earnings. Additionally, subsidies on fodder and feed costs are essential as rising input prices strain farmers.
The funding for dairy, especially in areas like artificial insemination, breed enhancement, and veterinary services, needs to be increased to improve herd health and productivity. In poultry farming, measures to prevent diseases, such as biosecurity and incentives for sustainable practices like cage-free farming, are anticipated.
Shrikant Goenka of Premier Irrigation Adritec (PIAL) believes the Union Budget 2025 has the potential to transform India's agriculture sector, making it more resilient, sustainable, and prosperous. A major focus is on water management and climate change, with calls for funding microSP, WSP, and solar pumps to aid farmers. There is also a push for greater support for organic farming and soil fertility programs.
Farmers are seeking reforms in crop insurance to broaden coverage and speed up claim settlements, as well as reduced credit costs through increased NABARD funding and interest subsidies for small farmers. Additionally, measures to enhance MSP realization via Farmer-Producer Organizations (FPOs) are expected.
According to Shrikant Goenka from Premier Irrigation Adritec, the agriculture sector, crucial to India's economy, still needs significant investment and attention, especially following the impact of COVID-19. With the Union Budget 2025 approaching, stakeholders, including farmers and policymakers, have high expectations for reforms to boost productivity, income, and sustainability. Key expectations include increased investment in agricultural infrastructure, particularly cold storage, warehousing, and supply chain management, to reduce post-harvest losses and improve market access. Subsidies for advanced technologies like drones, AI, IoT, and precision farming are also anticipated.
Middle-class taxpayers are hoping for reduced income tax rates for those earning up to ₹15 lakh annually, aiming to boost disposable income and encourage consumer spending.
Industry bodies, including the Confederation of Indian Industry (CII), have also called for tax relief, with CII Chairman Sanjiv Puri suggesting a reduction in marginal tax rates for incomes up to ₹20 lakh. He believes this would drive consumption and support economic growth.
The foundation for such reforms was laid in Budget 2024-25, when Finance Minister Nirmala Sitharaman announced a comprehensive review of the Income Tax Act.
