Union Budget Expectations 2025

Union Budget Speech Timing

Traditionally, the Finance Minister delivers the Budget speech at 11:00 am in Parliament on 1 February. While the convention remains, no official communication has emanated from the ministry.

A Budget Milestone for Sitharaman

In Modi 3.0, Sitharaman delivers her second full Budget and marks her eighth, including six-yearly and two interim Budgets under the NDA.

Stock Markets in Action on Budget Day

The Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) will be open for live trading on Budget Day on 1 February 2025, which falls on a Saturday. This is to comply with the common procedure for the Union Budget, even though Indian exchanges are not usually open on weekends. An official circular from the respective exchanges confirms the live trading session on Budget Day.

Union Budget 2025 Expectations

Union Budget 2025-26 is being watched for hopes of resolving many industry expectations: increased disposable income, improved growth for all major areas, and opportunities for ease of doing business.

Consumer and Retail Sector

1. Income Tax Reforms Increase Disposition: The reforms will likely hit the aim to raise discretionary spending through changes in income tax laws.

1. Reducing GST: Experts believe that a decrease in GST would relieve the financial burden on the consumer and retail consumption would be stimulated.

1. Extended Market: A proper infrastructure that supports Retail Market Growth will be highly funded and unlimited tax holidays.

1. Ease of Business: Simplify business for increased business effectiveness.

1. Manufacturing Sector: Being a dominant area in the future with respect to the budget plan, the targeted sector will drive $2 trillion of exports through manufacturing by 2030. 

1. Foreign Investment: Streamline compliance procedures for investing overseas.

1. Sector-Specific Incentives: Sector-specific intervention measures will come in high-value hardware manufacturing sectors, such as electronics and precision machinery, or in labor-intensive areas like textiles, footwear, and food processing.

1. Technology Adoption: Specific Industry 4.0 Security: Empowerment of national artificial intelligence and digital twins, among others, for their utility in manufacturing, as well as additive manufacturing or 3D printing.

Wealth Management

1. Tax Breaks: Raise the dispensable income by enhancing the exemption limit under the income tax, from Rs.3 lakh to Rs.5 lakh, as recommended by the chamber EY India.

1. Simplify Capital Gain Taxes: Streamlining of the tax structure of all asset classes, as raised by Deloitte in its proposal.

1. Infrastructure Investments: Budget continues to emphasize infrastructure, following the allocation of Rs.11.1 lakh crore in its predecessors.

Healthcare and Medical Devices

Cut in Customs Duty: Reduction of heavy customs in Healthcare and Medical Devices to improve insurance penetration.

Conclusion

The upcoming Union Budget 2025, scheduled to be announced on 1 February 2025, is expected to provide clarity on key economic policies. While the common man has significant expectations, this budget is anticipated to align with existing tax regulations, focusing on continuity rather than introducing substantial changes or reforms.