Budget 2025 Expectations Live: Auto EV sector stands at a transformative juncture
“With the rapid growth in vehicle ownership, increased focus on electric vehicles (EVs), and the rising demand for organized servicing solutions, the sector stands at a transformative juncture.
We expect that the budget places a strong emphasis on funding for infrastructure that supports the EV ecosystem, like tax credits for green technology adoption and subsidies for establishing EV service centers. In order to satisfy future industry expectations, measures that support technicians’ upskilling in handling next-generation vehicles—both electric and autonomous—will also be essential.
Another area that requires assistance is the strengthening of digital and technological integration in the automotive service industry. Efficiency and customer happiness will increase if startups and companies investing in AI-driven diagnostics, predictive maintenance, and customer-centric solutions are given incentives.
The automotive service sector may increase its contribution to job creation, environmental sustainability, and the expansion of India’s automotive industry with focused government interventions,” says Himanshu Arora, CEO and Co-Founder, GoMechanic.
Budget 2025 Expectations Live: Drive innovation in the fintech lending space
“The upcoming Union Budget presents an exciting opportunity to drive innovation in the fintech lending space while empowering MSMEs to thrive. We anticipate policy measures that bolster digital infrastructure, ease access to credit, and encourage sustainable financial practices. The integration of embedded finance can play a transformative role in boosting responsible consumption by seamlessly embedding financial services into everyday transactions. With the rise of trends like green fintech, AI-driven decision-making, and blockchain-based platforms for carbon credit trading, the industry is poised to revolutionize the way financial services are delivered. Government initiatives fostering fiscal prudence, skill development, and MSME growth will lay a strong foundation for inclusive economic progress and cement India’s leadership in the global fintech ecosystem,” says Jitin Bhasin, CEO and Founder, SaveIN.
Budget 2025 Expectations Live: Empower education and bridge digital gaps
“As we approach the Union Budget, key focus areas must include steps to empower education and bridge digital gaps. A reduction in GST on education services is essential to make quality learning more affordable and accessible, especially for middle-class families. Additionally, targeted investments in rural internet infrastructure are critical to bringing underserved communities into the digital economy, enabling them to participate in new-age learning and employment opportunities.
To address India’s growing skills gap, the government should provide incentives for vocational training platforms to foster job-ready talent across sectors. Skilling initiatives, particularly in areas like digital literacy, green energy, and logistics, will drive employability and long-term economic growth.
A future-ready economy requires a workforce equipped with both education and skills. By focusing on reducing education costs, expanding connectivity, and supporting skill-building platforms, the Budget can ensure that India’s youth are prepared for emerging opportunities in a rapidly evolving job market,” says Anthony Fernandes, Founder – Shaalaa.com
Budget 2025 Expectations Live: Rationalize stamp duty rates, especially in Tier-II and Tier-III cities
“Over the past few years, the prices of land and construction materials have risen sharply, not only in metropolitan cities but across the country. This, coupled with sustained demand, has significantly driven up property prices, making homeownership increasingly challenging for many. As a result, the real estate sector, particularly the housing segment, requires robust government support to make home buying more affordable for aspiring buyers. Government intervention through targeted incentives could help alleviate the financial burden on homebuyers. One crucial area to address in the upcoming budget is the enhancement of the income tax deduction limit on home loan interest under Section 24(b), which has remained unchanged for over a decade. Increasing this limit would provide much-needed relief, particularly for buyers in high-cost urban markets. Another key measure is the extension and expansion of the Credit Linked Subsidy Scheme (CLSS). The government should consider raising the property price threshold for affordable housing eligibility, enabling more middle-income families to benefit from this scheme. Such an adjustment would not only boost demand but also encourage developers to focus on affordable housing projects, a segment currently experiencing a downturn in supply. Additionally, rationalizing stamp duty rates, especially in Tier-II and Tier-III cities, could significantly stimulate housing demand among mid-income and low-income groups. High stamp duty rates often act as a barrier for homebuyers, and reducing them could make homeownership more accessible in these emerging markets,” says Udit Jain, Director, One Group.
Budget 2025 Expectations Live: GST system still faces challenges
“As India moves closer to becoming the world’s fourth-largest economy by 2025, refining indirect tax regulations is crucial to easing compliance costs for businesses.
Since the introduction of GST in 2017, India has seen significant improvements in tax administration, reflected in soaring tax revenues. However, the system still faces challenges that need to be addressed in the Union Budget 2025. Simplifying GST rates by consolidating the tax brackets and establishing a unified authority to handle cross-jurisdictional issues would reduce inefficiencies and ease the compliance burden. Additionally, making the GST Appellate Tribunal operational and ensuring timely processing of refund claims would significantly improve the tax experience for businesses. Expanding the input tax credit to cover more expenses would provide further relief and incentivize growth.
The Budget 2025 presents an opportunity to create a tax system that is simpler, more efficient, and conducive to business growth. By addressing these challenges, India can continue on its path toward a “Good and Simple Tax” framework,” says Kulraj Ashpnani, Partner, Dhruva advisors.
Budget 2025 Expectations Live: Focus on bullet trains?
Railway Budget 2025: While a separate Railway Budget is no longer presented by the government, Finance Minister Nirmala Sitharaman’s Union Budget 2025 speech is likely to see mention of big ticket Indian Railways projects for the next few years. This could include modern trains, focus on bullet train project, station redevelopment projects and freight terminals and corridors.
Budget 2025 Expectations Live: Rationalise Income Tax slabs under the new regime
“It is a fact that today under the new tax regime, Income Tax has become simpler. Further an exemption of Rs.7 Lakhs means that taxpayers have to pay NIL tax on the same level of Income where they were earlier paying tax. Hence, the Government should consider and make the new regime as the only regime as the Income Tax Act goes for a comprehensive review on 1st Feb 2025. However, they must also consider easing out the tax rate in the new regime considering the Cost of Inflation of approx. 6% pa and the impact on the present value of money. It is thus expected that the basis exemption/ rebate be extended to Rs.9 Lakhs for putting in more money in the hands of the middle class. Further, for the established taxpayers with an income of over Rs.15 Lakhs, transition to the new scheme would involve a financial hit. It is expected that the Government would also compensate them. Hence there may be a new slab in the new regime of say Rs.15 Lakhs – Rs.18 Lakhs with a tax rate of 25%. This would mean more disposable income in the hands of people and a push to consumption which would consequently push the GDP of the Country,” says Vivek Jalan – Partner Tax Connect Advisory Services LLP.
Budget 2025 Expectations Live: Real estate sector can serve as catalyst for GDP growth
“As the Union Budget for 2025 approaches, the government, with its view to push growth, is anticipated to introduce a slew of reforms which may boost economic activity and bring efficiency to different sectors, including real estate. The real estate sector, being one of the largest contributors to the GDP, could serve as a catalyst in augmenting growth. Since the tax deduction on housing loans has remained stagnant at ₹2 lakh per annum, it is imperative for the government to increase the threshold to ₹5 lakh. This will propel the demand for housing further,” says Akash Khurana, President and CEO, Krisumi Corporation.
Finance Minister Nirmala Sitharaman will present the second comprehensive budget of the Narendra Modi 3.0 government following their victory in the Lok Sabha elections 2024, during the Parliament’s Budget session. The Budget 2025 address will outline the government’s reform agenda for the fiscal year 2025-26, with a crucial focus on maintaining fiscal discipline whilst ensuring continued economic expansion.
