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.
The live blog session has concluded. For more news, views and updates, stay tuned with Moneycontrol.com.
Budget 2025 Expectations Live: Infrastructure status and loan deductions key to real estate sector’s revival, says Pawan Sharma
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.
Budget 2025 Expectations Live: Neeraj Sharma advocates for ‘infrastructure status’ for real estate to boost development
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.
Budget 2025 Expectations Live: CII’s Chandrajit Banerjee calls for expert committee to improve India’s productivity
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.
Budget 2025 Expectations Live: Group 108's Sanchit Bhutani advocates for industry status and policy reforms in real estate
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.
Budget 2025 Expectations Live: Raheja Developers' Mohit Kalia calls for policy support to boost affordable housing and commercial real estate
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.
Budget 2025 Expectations Live: CII proposes measures to boost female workforce participation and leverage global opportunities
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
Budget 2025 Expectations Live: Real estate sector seeks industry recognition and reforms
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.
Budget 2025 Expectations Live: CII proposes seven-point agenda to boost employment in upcoming budget
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.
Budget 2025 Expectations Live: Dairy and Poultry sectors hope for growth-oriented interventions, says Aman J Jain, Doodhvale Farms
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.
Budget 2025 Expectations Live: Agriculture sector expects focus on water management, crop insurance, and MSP reforms
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.
Budget 2025 Expectations Live: Key expectations for transforming India's agriculture sector
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.
Budget 2025 Expectations Live: Middle-class tax relief expected in upcoming budget
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.
Budget 2025 Expectations Live: Reducing customs duty on garmenting machinery
India’s garment export sector is highly dependent on imported machinery for maintaining quality standards and global competitiveness. AEPC has urged the government to reduce customs duties on garmenting machinery to zero, noting that high import duties currently make Indian garments less competitive compared to countries like Bangladesh and Vietnam.
Budget 2025 Expectations Live: Concessional tax rate for new manufacturing units; simplifying import procedures
To promote the setting up of new garment manufacturing units, AEPC has urged the extension of the concessional tax rate for these units, which would help boost investment and job creation in the sector.
AEPC has also called for simplifying the procedure for importing trims and embellishments under the Import of Goods at Concessional Rate (IGCR) scheme to make it more efficient for exporters.
Budget 2025 Expectations Live: Interest equalization and e-commerce export reforms
AEPC has also requested:
5% Interest Equalization: A 5% interest equalization rate to be announced in the Budget to ease financial burdens on exporters.
E-Commerce Export Reforms: The council calls for an increase in the cap for e-commerce export consignments to Rs 25 lakh and a 12-month period for export realization.
Budget 2025 Expectations Live: AEPC urges government for tax incentives in upcoming budget
The Apparel Export Promotion Council (AEPC) has called on the government to introduce key tax incentives to support the apparel export sector, ahead of the Union Budget scheduled for February 1, 2025.
Key Demands: Tax Incentives and Machinery Exemptions: AEPC has urged the government to:
Remove the 45-Day Payment Requirement: The council wants the removal of a provision under Section 43B (H) of the Income Tax Act, which mandates payments to MSMEs within 45 days to claim tax deductions. This provision has led to increased tax liabilities and disrupted cash flow for exporters.
Customs Duty Exemption on Garment Machinery: AEPC recommends continuing and enhancing the customs duty exemption on garment machinery imports to maintain the sector’s global competitiveness.
Budget 2025 Expectations Live: Six-point strategy to boost farm sector
Chouhan outlined the Centre's six-point strategy to boost the agricultural sector, which includes:
- Increasing production per hectare through research by the Indian Council of Agricultural Research (ICAR) and the release of new seed varieties.
- Reducing production costs.
- Promoting micro-irrigation, farm mechanization, and technology adoption.
- Encouraging the use of new agricultural methods.
Budget 2025 Expectations Live: Rural poverty decline welcomed
The minister welcomed the State Bank of India's report, which revealed that the rural poverty rate dropped below 5% for the first time in FY24, down from 7.2% in FY23, marking a positive trend for rural India.
Budget 2025 Expectations Live: Agriculture Minister reviews schemes ahead of Union Budget
Agriculture Minister Shivaraj Singh Chouhan held a virtual meeting on Saturday with state agriculture ministers to discuss various schemes and gather suggestions on ongoing programs and budget allocation for the upcoming Union Budget.
Chouhan expressed satisfaction over the agriculture and allied sector's projected growth rate of 3.5-4% for the 2024-25 fiscal year. He urged state governments to expedite their efforts to meet these targets.
Budget 2025 Expectations Live: Enhancing daily wages to support low-income households
In another key recommendation, CII proposed raising the daily wage under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) from Rs 267 to Rs 375. This recommendation, based on a 2017 expert committee's suggestion, would require an additional Rs 42,000 crore but is viewed as crucial to supporting lower-income households and fostering a virtuous growth cycle.
Budget 2025 Expectations Live: Strengthening purchasing power with income measures
Chandrajit Banerjee, Director General of CII, highlighted that inflation has eroded purchasing power, making it critical for the government to introduce measures that boost disposable incomes. The industry body also suggested reducing marginal personal income tax rates for incomes up to Rs 20 lakh, aiming to spur consumption and economic growth.
Budget 2025 Expectations Live: Reducing fuel excise duties to ease inflation
CII says that lowering the excise duties on fuel, which currently make up 21% of petrol and 18% of diesel prices, could significantly reduce inflationary pressures and increase disposable incomes. Despite global crude prices falling by 40% since May 2022, fuel excise duties have remained unchanged, placing a heavy burden on household budgets.
Budget 2025 Expectations Live: CII calls for economic stimulus measures to boost consumption
The Confederation of Indian Industry (CII) has urged the government to implement key measures aimed at stimulating consumption and driving economic growth. These include reducing excise duties on fuel, increasing the daily minimum wage, and boosting payouts under the PM-KISAN scheme.
(ANI)
Budget 2025 Expectations Live: Old tax regime - Higher rates, more benefits
The Old Tax Regime, while imposing higher tax rates, allows individuals to claim a range of exemptions and deductions. Here are the current income tax slabs under the Old Tax Regime (for FY 2024-25):
Income up to Rs 2,50,000: Nil
Income from Rs 2,50,001 to Rs 7,00,000: 5%
Income from Rs 7,00,001 to Rs 10,00,000: 10%
Income from Rs 10,00,001 to Rs 12,00,000: 15%
Income from Rs 12,00,001 to Rs 15,00,000: 20%
Income above Rs 15,00,000: 30%
For senior citizens (aged 60-80 years), the basic exemption limit is Rs 3,00,000, and for super senior citizens (aged 80 and above), it is Rs 5,00,000. Additionally, individuals can avail themselves of exemptions such as HRA and deductions like those under Sections 80C, 80D, and Section 24(b) for home loan interest.
Budget 2025 Expectations Live: New vs. old tax regimes
New Tax Regime: Simplicity Over Exemptions
The New Tax Regime, which was introduced in the 2020 Union Budget, offers lower tax rates but comes with limited exemptions and deductions. The current tax slabs under the New Tax Regime (for FY 2024-25) are as follows:
Income up to Rs 3,00,000: Nil
Income from Rs 3,00,001 to Rs 7,00,000: 5% (Tax rebate under Section 87A up to Rs 7 lakh)
Income from Rs 7,00,001 to Rs 10,00,000: 10%
Income from Rs 10,00,001 to Rs 12,00,000: 15%
Income from Rs 12,00,001 to Rs 15,00,000: 20%
Income above Rs 15,00,000: 30%
While the tax rates are lower, taxpayers under this regime must forgo popular exemptions like HRA, LTA, and deductions under Sections 80C, 80D, and others. However, a standard deduction of Rs 75,000 for salaried employees and Rs 25,000 for family pensioners is available.
Budget 2025 Expectations Live: Deloitte urges supply-side solutions to combat inflation, focus on rural impact
Deloitte India adds that inflation as a persistent challenge for the economy, particularly food inflation, which remains a major concern. The Economic Survey 2024 has proposed excluding food prices from India’s inflation targeting framework, noting that food inflation is primarily supply-driven. It suggests that the government address food inflation through supply-side interventions rather than relying solely on the RBI’s demand-side tools.
Looking ahead to the upcoming Union Budget, Deloitte expects a focus on long-term solutions to strengthen the agricultural value chain, incentivize production, and address structural supply-side issues that elevate delivery costs. In the near term, the government is likely to implement Direct Benefit Transfers (DBTs) and food coupons to support rural consumption, with rural inflation being a significant factor impacting rural demand.
Budget 2025 Expectations Live: Deloitte projects private consumption, investment as key drivers of growth in FY25
Deloitte India forecasts that private consumption and investment will emerge as the main growth engines for India in FY 2025, as global uncertainties weigh on net exports. With the Indian elections behind, an increase in government spending is expected to provide further economic support in the upcoming quarters.
The previous Union Budget prioritized employment generation and skill development, introducing initiatives such as Employment-Linked Incentives and internship programs. According to the Periodic Labour Survey, the Labour Force Participation Rate (LFPR) for both men and women rose to 74.7% and 25.2%, respectively, in June 2024, up from 73.5% and 23.2% in June 2023. This has contributed to a steady decline in the unemployment rate.
Deloitte expects the government to continue its focus on skill development and job creation, harnessing India's demographic dividend to boost consumption and drive economic activity on both the supply and demand fronts.
Budget 2025 Expectations Live: Middle-class tax relief - a key expectation
Middle-class taxpayers are eagerly anticipating potential income tax relief in Budget 2025, particularly for those earning up to ₹15 lakh annually. This move could boost disposable income and fuel consumer spending. Industry bodies like the CII have also called for tax cuts, with Chairman Sanjiv Puri proposing relief for incomes up to ₹20 lakh to stimulate consumption and revenue growth. The groundwork for these reforms was set in Budget 2024-25, with the Income Tax Act under review by a committee led by Chief Commissioner V.K. Gupta.
Budget 2025 Expectations Live: All eyes on Sitharaman’s eighth presentation
Finance Minister Nirmala Sitharaman is set to present the Union Budget for FY 2025-26 on February 1, marking her eighth consecutive address. With India grappling with an evolving economic landscape, this budget, scheduled for 11:00 am IST in the Lok Sabha, holds immense significance. The Modi government's second full-fledged budget of its third term is expected to bring structural reforms and growth-driven initiatives. Stay tuned for an in-depth breakdown of what's at stake!
