Finance Minister Nirmala Sitharaman is all set to present the Union Budget 2025-26 in Parliament on 1 February 2025. This would be her eighth consecutive budget presentation. As such, it is expected that the budget will be neutral and in continuity to the previous budget – focused on increased capital spending, employment generation, controlling rural inflation, and providing tax relief to the middle class. However, let us look at the specific expectations leaders of India Inc. have from the upcoming budget.
Budget Expectations India Inc.
Dushyant Chachra, CFO, SAEL says,
“With the world uniting to embrace sustainability and innovative solutions leading the way, the transition to a greener future has never been more exciting. Budget 2025 holds immense potential to drive this positive change by introducing progressive policies and incentives that will accelerate India’s journey toward an environmentally thriving future. Increased investment in the Renewable Energy sector, along with a well-structured energy transition policy, can unlock new opportunities for lower emissions and cleaner growth. By promoting incentives for green energy, solar panels, batteries and fostering self-reliance through rooftop solar initiatives, India is poised to become a global leader in sustainable energy.”
Mr. S Sunil Kumar, Country President, Henkel Adhesive Technologies says,
“As the Union Budget 2025 approaches, there is optimism surrounding the government’s ongoing focus on strengthening India’s manufacturing sector. With the ‘Make in India’ initiative and PLI schemes gaining momentum, targeted support for advanced manufacturing technologies, R&D investments, and infrastructure development is expected to help Indian manufacturers compete globally. Furthermore, there is an expectation that the government will introduce measures to encourage energy-efficient operations. Tax benefits and subsidies for sustainable technologies like pollution control systems and water recycling solutions could drive greener practices, reducing operational costs and environmental impact while supporting India’s climate goals. Similarly, expanding regulatory support for renewable energy installations, such as solar, wind, and biomass solutions, could significantly reduce dependency on fossil fuels.
India’s journey toward becoming a global manufacturing hub will be propelled by the development of robust digital infrastructure. Incentives for the establishment of smart factories, investments in 5G connectivity, and sustained support for technology-driven MSMEs will be instrumental in advancing this vision. Innovation clusters and skill development programs for advanced digital technologies will be key in preparing the workforce for a digitally enabled future. Finally, competitive tax structures, raw material support, and strategic initiatives for the chemical sector are expected to drive its continued growth and innovation.”
Mr. Simon Wiebusch, Country Divisional Head, Crop Science Division of Bayer in India, Bangladesh and Sri Lanka says,
“Agriculture remains a cornerstone of the Indian economy, ensuring food and nutritional security for the nation. I am optimistic that this year’s budget will reinforce the government’s commitment to farmer welfare by enhancing market linkages, improving access to quality inputs, promoting digital technologies, and supporting the formation of more Farmer Producer Organizations (FPOs). The Digital Agriculture Mission, with initiatives like the Digital General Crop Estimation Survey, is a step in the right direction to modernize the sector. Additionally, incentivizing investments in research, particularly in crop productivity, resource-use efficiency, and climate-smart practices, can drive sustainable growth and increase farmer incomes.
To strengthen India’s self-sufficiency in food production, the budget must prioritize greater investments in agricultural research and innovation. Policy decisions to advance agriculture by giving access to globally available tools for Indian farmers, are key. Advancements in seed technology, and precision application techniques will be critical in reducing import dependency and ensuring long-term productivity. Encouraging R&D tailored to India’s diverse agro-climatic conditions will help farmers enhance yields, optimize input use, and mitigate risks associated with climate change.
Additionally, strengthening rural infrastructure—such as cold storage, logistics, and food processing facilities—will be key to reducing post-harvest losses and improving value realization for farmers. With the right policy framework, India can reinforce its leadership in global food supply chains while ensuring self-reliance and economic resilience in the sector.”
Mr. Abhishek Mundada, Partner, Dhruva Advisors says,
“One may note that the Government has at 26th Conference of Parties to the United Nations Framework Convention on Climate Change (‘UNFCCC’) has announced its target to achieve net zero emissions by 2070. In this context, recently the Environmental Ministry has emphasized the need for EV sales to constitute 50% of the total new car sales by the year 2030 to achieve this target. One can note that this vision as set out by the Environmental Ministry is even more than the earlier target of 30% of the new car sales by 2030 as mentioned by Government in its eMobility R&D Roadmap for India dated July 2024.
In contrast, the current EV sales merely constitute ~7.4% of the total sale of new car (Source: Report of SBI Caps on Electric Mobility dated 24 January 2025). Hence, clearly there is an uphill task to cover much larger ground in terms of EV production and sale as compared to other contemporary alternatives to achieve the aforesaid vision / targets.
To give a boost this sector, the Government of India can consider giving requisite income-tax concessions to the makers and users of EV. Under the earlier provision of Section 80EEB of the Income-tax Act,1961 (‘the Act’), tax concession of upto Rs. 1.5 lacs on interest on loan was available to Individuals buying EVs for loan on such EVs availed between 01 April 2019 to 31 March 2023. While the Government had not extended this tax concession for loan sanctions post 31 March 2023 in the Budget 2024, considering the need of an hour for encouraging EV sales at much higher scale, it is imperative for extending such tax concession atleast till 2030.
Further, from makers perspective, to encourage players for further investing in EV infrastructure building including charging infrastructure so as to make it affordable buying, the Government should consider to extend concessional tax regime of 15% for all the players in the supply chain involved in EV market.
The above stated measures would encourage and push lot of potential car owners to buy EVs which would give a requisite fillip to this industry.”
Thoughts from Social Sector
Dr. Chandrakant Agarwal, President of the Thalassemia & Sickle Cell Society says,
“We are immensely thankful to Govt of India & especially Hon’ble Finance Minister for great work done for Sickle Cell disease in the previous budgets, wherein allocations have been made for its eradication by 2047, but unfortunately, the bigger evil the most lethal and dreaded disease “Thalassemia”, which is also a genetic blood disorder like sickle cell anemia fails to find any mention in the previous budgets, which is a very grave blunder, which needs to be rectified with immediate effect in the coming budget.
Both, Sickle Cell Anemia and Thalassemia are same type of disease with a little difference, thalassemia is much more severe and the methodology for eradicating them are the same and in both cases, patients survive by periodic blood transfusion for a life time, which is horror in itself and both of them can be eradicated and nations have eradicated them, by simple HbA2 blood test, which needs to be made mandatory by the Government. Sickle Cell Anemia and Thalassemia are two sides of same coin, both of them are to be taken together for eradication efforts, kindly rectify the error.
“We are very much positive towards the upcoming Budget as the govt has been considerate with its allocations for conditions such as sickle cell anaemia and unfortunately thalassemia has been left out in the previous budgets. The most noteworthy one was the allocation of significant budget towards tackling sicklecell anemia, aiming to eliminate it by 2047, with a focus on universal screening, counseling, and comprehensive management programs. However there is a greater need for Budget 2025-26 to broaden its scope. As we approach the upcoming Union Budget 2025-2026, Thalassemia & Sickle Cell Society urges Hon’ble Finance Minister Smt Nirmala Sitaraman, Finance – Govt of India to prioritize advancements in medical diagnostics, particularly for genetic blood disorders such as thalassemia and sickle cell. We expect targeted investments in affordable, accessible diagnostic services, as well as enhanced funding for research and healthcare infrastructure. The need for early detection, specialized care, and patient-centered solutions has never been more pressing. We hope the budget reflects a commitment to improving healthcare outcomes and quality of life for individuals affected by these conditions at large.
Dr Geetanjali Chopra, Founder and President, Wishes & Blessings NGO says,
As we approach the new financial year, we hope that the budget priorities stronger regulations that not only restrict corporates from taking advantage of the social sector for self-promotion or tax evasion but also strengthen the foundations of philanthropy. We want a budget that recognises community driven change is paramount, and urge for more tax exemptions on donations, making it easier for individuals or organisations to contribute more freely without facing financial barriers.”
Smita Bharti, Executive Director. Sakshi, a rights based NGO says,
As the Union Budget 2025-26 approaches, social development organizations are calling for policies that actively include marginalized social groups, particularly women, transgender individuals, and other disadvantaged communities. While the increase in the gender budget to ₹3.27 lakh crore is commendable, the decline in the proportion of allocations exclusively for women—from 37% to 34%—highlights the need for greater focus and investment in targeted initiatives.
It is imperative to prioritise investing in education, skill development and safety, especially for marginalised groups like dalit women, transgender individuals and persons with disabilities. More funding is needed for programmes and the social sector to address gender-based violence, increase healthcare access and for livelihood support, ensuring these initiatives are tailored to meet the diverse needs of excluded communities.
There is a pressing need to extend the schemes in Part A of the gender budget, which currently only benefit women, to include non-binary and transgender people. Effective strategies must also be implemented for accountability, transparency, and equitable distribution of financial resources.
The government has shown openness to tackling structural injustice. A budget that addresses the specific needs of marginalized groups can help create true equality.
Jyoti Sharma, CEO, Nasscom Foundation says,
“Technology continues to serve as a powerful catalyst in bridging digital inequality and driving India’s economic growth and development. With the upcoming Union Budget 2025, we hope to see a strong commitment to advancing technology adoption and digital transformation, creating lasting impact for communities including women, the rural population and the overall economy. Targeted investments in upskilling and reskilling programs will be critical in equipping our youth with future-ready skills and unlocking opportunities in a dynamic job market and should continue to be a priority. Also, India’s deep-tech ecosystem is on the cusp of exponential growth – especially with AIForSocialGood showing great potential. Strengthening the social innovation landscape through accelerators, incubators, and dedicated support for innovation will further pave the way for sustainable growth.”
Rati Misra, Executive Director at Milaan Foundation says,
“In the last budget, only 2.28% of last year of the total allocation of the Union Budget 2024-25, highlighting a persistent trend that is both disappointing and discouraging. This allocation falls short of addressing the critical needs of India’s younger population. With 253 million adolescents in the country, including 120 million girls, it is imperative to prioritize and strengthen their foundation to ensure a brighter future.This requires substantial and targeted financial investments across key areas such as health, education, skill development, workforce participation, infrastructure and safety. Such investments are not just expenditures but crucial enablers for unlocking the full potential of this demographic. Without these focused efforts, India risks missing the opportunity to fully harness its demographic dividend, which is expected to peak by 2041.The window of opportunity is narrow and fleeting. Time is critical, and failing to act decisively and with the right kind of investments would mean losing out on a chance that may not reappear for generations.”
