Pre-Budget Expectation 2025: Comments by Experts

Simranjeet Singh, Director, CYK Hospitalities

 “The upcoming Union Budget 2025 is quite expected to have reforms for innovation. For start-ups and food and beverage (F&B) sectors, there is also great hope for simplified taxation, namely GST rate cuts on small eateries and essentials-those will ease financial stress. A very strong push has been made towards subsidies on packaging that preserve the environment so that food becomes scarce, aligning it to the perceptions of global sustainability. Increased budgetary support to food processing facilities might as well drive off multiple rural jobs and boost exports. Start-ups are also demanding continued tax exemptions and the removal of angel taxes so as to attract more funding. Investments into Tier 2 and Tier 3 cities will benefit from policy environments that promote digital ecosystems to stimulate innovation, especially in agri-tech, health-tech and green-tech.”

Nidhi Singh, Co-Founder, Samosa Singh

 “Being a F&B brand dedicated to prioritizing quality and innovation, we look forward to the Union Budget 2025 reforms that may vicariously fuel the growth of startups pertaining to the former. Swiftly approved policies that would potentially simplify taxation, and promote sustainable business practices can act as promoters for escalating startups like ours. F&B sector being in the focus, stimuli for local sourcing, reduced taxes on essential supplies, facilitated support for cold-chain infrastructure, can result in significantly impacting operational efficiency and product quality in the constructive manner. We hope that implementation of this budget would make provisions for a far more resilient and thriving startup ecosystem, and be the breath of prerequisite fresh air.”

Vikesh Shah, Founder, 99 Pancakes

 “At 99 Pancakes, we are committed to redefining the QSR dining experience & we are hopeful about the Union Budget 2025 to address key grown enablers for our F&B Industry. This sector has been brawling with inflating operational & input costs. With a reduction in GST on dining services along with a tax alleviation on sustainability packaging could be of crucial assistance. Scalability & Market Expansion could be the necessary impact driven from adopting advanced kitchen technologies leading to operational efficiency. Such robust measures accredit brands like ours to continue striving towards innovation, amplifying customer experience & contributing to our country’s economic momentum.”

Arun Balasubramanian, VP & MD, India & South Asia, UiPath

 “With the union budget right around the corner, we are confident that the Government of India (GOI) will continue its efforts to achieve Viksit Bharat. The IMF has recently updated its forecast for India, now projecting a growth rate of 6.5 percent for FY26, driven by robust domestic demand and an expanding young workforce.
A key area for the GOI to make significant strides is investing in AI and agentic automation to enhance productivity and efficiency, which is crucial for our economic growth. Gartner predicts that AI investments in India will reach around $7.8 billion this year which proves the catalytic nature of the technology. Moreover, providing export incentives for Global Capability Centers (GCCs) will help boost our IT sector. This support will help these centers expand their operations and increase their contributions to India’s export revenues. We also expect the GOI to increase investments in reskilling initiatives focused on AI, automation, IoT, data analytics, robotics and cloud computing. Such initiatives will be essential for India to become the world’s leader in software technology.”

Swapna Bapat, Vice President & Managing Director, India and SAARC, Palo Alto Networks

As we approach the 2025-26 Union Budget, Palo Alto Networks looks forward to continued investments in AI, cybersecurity up-skilling and innovation-led initiatives. It will be a step in the right direction of prioritizing, modernizing and securing legacy and new systems while fostering a skilled workforce capable of addressing emerging challenges in a digitally connected world. These efforts will safeguard essential services while driving the digital transformation of public infrastructure, offering citizens the safety and confidence in an ever-evolving threat landscape.
The Union Budget 2024 demonstrated a strong commitment to advancing employment, skilling, and economic growth for MSMEs and the middle class. With allocations such as ₹500 crore for the India AI Mission and ₹2 lakh crore for initiatives aimed at creating over 4 crore job opportunities, the government has laid a robust foundation for India’s digital and economic transformation.
Since then, we’ve witnessed remarkable advancements in India’s tech landscape, underscored by publishing the draft of the Digital Personal Data Protection (DPDP) Act on January 3. This step reinforces India’s capability to strengthen its digital infrastructure and safeguard its growing digital economy.

Vineet Dhawan, CEO, Digital Convergence Technologies (DCT)

“The technology sector is optimistic about policies that will catalyze innovation, support growth, and strengthen India’s position as a global tech hub. The rapid adoption of cloud migration, cybersecurity, and OTT video management solutions like our own dcafe’ underscores the need for a robust digital infrastructure backed by forward-looking reforms.

We hope for enhanced incentives to accelerate digital transformation for businesses, support for Global Capability Centers (GCCs) to drive employment and innovation, and clear guidelines to strengthen data security frameworks. Simplified taxation structures for IT exports and R&D investments will further encourage companies to innovate and expand.

Additionally, a focus on skilling programs aligned with emerging technologies is critical to ensuring India remains future-ready. A collaborative approach between the government and industry will not only drive economic growth but also empower businesses to deliver secure, scalable, and innovative solutions on a global scale.

At DCT, we are committed to harnessing the potential of these advancements and look forward to a budget that aligns with India’s aspirations for a digitally empowered future.”

Mr. Shachindra Nath, Founder and Managing Director, UGRO Capital

“The upcoming Union Budget presents a significant opportunity to strengthen India’s financial ecosystem and drive inclusive growth. We urge the government to expand the PSL(Priority Sector Lending) definition to include emerging sectors like renewable energy, women-led enterprises, and digital infrastructure, aligning with India’s evolving economic priorities. Establishing a dedicated regulatory framework for NBFC catering to PSL will further enable focused lending to underserved segments. Additionally, measures such as concessional refinancing from institutions like SIDBI and NABARD, along with credit guarantee schemes, can lower borrowing costs and mitigate risks, encouraging greater participation from banks and investors. Allowing bank loans to NBFC-PSLs to qualify as PSL will ensure consistent capital flow, empowering MSMEs and other critical sectors to scale operations and contribute to the nation’s growth. By implementing these measures, the budget can pave the way for a robust financial ecosystem, fostering innovation, entrepreneurship, and equitable development across India.”

Dr Alok Khullar Group CEO of RJ Corp Healthcare

“ India’s healthcare system even though evolved is facing increasing costs, uneven access and increasing demands because of a significant ageing population as well a significant increase in lifestyle diseases. We suggest that the government take steps towards treating healthcare like an industry with benefits like those given to the IT sector through Special Economic Zones. In addition we suggest to reconsider the GST on medicines, room rent & medical devices to reduce cost for patients.

Access to preferential capital at lower interest rates, investments by the Govt in training & upskilling of medical & nursing professionals, encouraging manufacturing of medical devices and consumables through “Make in India” will give a much needed boost to the sector in enhancing levels of care and managing costs. Public Private Partnerships at a larger scale will help deliver better healthcare to tier 3 and tier 4 cities.

Mr Vishal Goel, Managing Director, RX Propellant

 “Budget 2025 offers a critical opportunity to position India as a global leader in life sciences, especially given geopolitical shifts and the need to compete with established players like China. To achieve this, the budget must prioritize strategic investments and targeted support. This includes significantly increasing government funding for research and development through measures like extending tax benefits to CROs and R&D firms through modification of 115BAB, reintroducing weighted R&D deductions under 35(2AB), and implementing a 200% deduction on R&D expenditures, alongside streamlined tax appeal processes. Furthermore, investing in shared, high-quality infrastructure within established research ecosystems, elevating NIPERs to IIT standards, and providing direct funding for promising drug candidates are crucial for fostering innovation. Increasing healthcare spending to align with global averages and rationalizing customs duties on essential therapies and equipment will further enhance access and affordability.
While Promotion of Research and Innovation in the Pharmaceutical and Medical Technology Sector (PRIP) scheme which encourages established pharma companies to engage in collaborative research with the NIPERs and avail their research infrastructure is a good start, mere financial support and institutional collaboration through NIPERS may not be enough. Other incentives such as creating an ecosystem for protecting and monetizing Intellectual Property rights (IPR), partnerships with internationally recognized facilities for clinical trials, are also essential to attract large pharmaceuticals and medical technology companies. These measures, coupled with regulatory streamlining and robust implementation of the National Pharmaceuticals Policy, 2023, are essential for strengthening India’s innovation ecosystem, solidifying its role as the ‘pharmacy of the world,’ and achieving the goal of a $130 billion pharma market by 2030.”

Dr Ajai Chowdhry, Founder HCL, Chairman EPIC Foundation & MGB, National Quantum Mission of India

 “We must prioritize the startup ecosystem in the forthcoming budget. The startup scene in India is currently the third biggest in the world, and the country is also one of the fastest-growing tech hubs. The government has played and continues to play a crucial role in creating an enabling environment for the start up ecosystem to thrive. The removal of the angel tax was a welcome move by the Government and was celebrated by the startup community. However there is more that needs to be addressed. One example is the present tax system, which hinders the use of employee stock option plans (ESOPs), which are crucial for startups to recruit and retain talent. Whatever the situation may be, employees are still obligated to pay taxes when they exercise their options. It would be more equitable to tax ESOPs only when the shares are sold, in line with the employee’s financial means to pay the tax. With the right policies and continued entrepreneurial spirit start-ups can play pivot in creating a Product Nation and ensure Strategic Autonomy.”

Ashok Chandak, President of IESA

IESA Recommendations for India’s Union Budget 2025-26: Electronics and Semiconductor Sector

To support India’s ambition of becoming a global hub for electronics and semiconductor design and manufacturing, the following proposals are suggested:

1. Semiconductors manufacturing: Expansion of the PLI Scheme

Enhanced Allocation: Extend the Production-Linked Incentive (PLI) scheme beyond the current allocation of ₹76,000 crore (~$10 billion) with an additional provision of $20 billion over the next five years.
Rationale:
India’s semiconductor sector is at a pivotal growth stage, driven by government initiatives, strategic collaborations, and a robust domestic market.
Indian companies and IESA (India Electronics and Semiconductor Association) members, have committed to projects worth over $20 billion.
The Semicon India Program and ISM have delivered significant contributions to GDP growth, job creation, foreign investments, industrial self-reliance, and bolstering India’s position in the global semiconductor market.
Proposal: Allocate $20 billion in the upcoming budget to propel the next phase of growth, innovations, and Atmanirbhar Bharat with Global Impact.

 2. Enhancing Electronics Value Addition

Current State:
India’s electronics manufacturing can reach $500 billion by 2030-32 from 150 Bn$ of this year.
Current local value addition stands at less than 18%. Increasing this to 40% will create extensive job opportunities and retain significant economic value domestically.
Proposal:
Introduce additional PLI outlays linked to local value addition – strictly. PLI to be paid for minimum 25% in 2025-26 and 30 % by 2027.
Focus particularly on the mobile phone segment, which represents the largest opportunity. Enforce stricter value addition norms as a prerequisite for availing PLI benefits.
Provide 5 Bn$ of Incentives for electronics components industry for Companies and JV’s having Majority holding/Stake of Indian corporates/ entrepreneurs.

 3. Product Creation and R&D

Long-Term Sustainability: For the electronics and semiconductor industry to thrive sustainably, fostering product creation and intellectual property (IPR) development through dedicated R&D is critical.
Proposal:
Allocate ₹10,000 crore for targeted R&D initiatives in ESDM sector on PPP model, separate from generic funding and not just the funding to academic institutes but to boost Industry collaborated R&D.
Consolidate multiple schemes under a unified Product Creation Initiative to high priority products of India needs with global potential to maximize impact.

4. Export Incentives

Boosting Global Competitiveness: To position India as a leading exporter of electronics and semiconductors, targeted export incentives are necessary.
Proposal:
Introduce 2% Additional Incentives and tax benefits for exports of semiconductor and electronics products that meet value addition norms , particularly in high-demand categories.
Simplify export procedures and provide logistical support for global market access.
Establish dedicated trade agreements to secure markets for Indian electronics and semiconductor products, ensuring steady growth in export revenue.

Sanjay Choudhari, Chairman, SBL Energy

 “The industrial explosives sector is a cornerstone for India’s mining and infrastructure ambitions. As we look to the Union Budget 2025, we hope for significant investments in large-scale infrastructure projects, especially in sectors like railways, highways, and mining, which directly drive demand for industrial explosives.

The rising cost of raw materials, particularly ammonium nitrate, remains a pressing challenge. Rationalizing import duties or introducing tax incentives on key inputs would provide much-needed relief and enhance competitiveness.

In line with India’s sustainability agenda, the government should encourage innovation in eco-friendly explosives technologies through targeted R&D incentives. This will enable the sector to align with environmental goals while maintaining operational efficiency.

Reforms aimed at simplifying regulatory frameworks, particularly around licensing and safety compliance, will foster a more conducive business environment. With the right support, the industrial explosives industry is well-positioned to accelerate the country’s industrial and infrastructure growth, contributing significantly to the vision of a self-reliant India.”

 Mr. Pranay Kumar, Executive Director, Rudrabhishek Enterprises Limited (REPL)

“The Union Budget 2025 must prioritize sustainable and inclusive housing to address India’s growing urban and rural needs. Increased allocations for PMAY and infrastructure projects, particularly in Tier II and III cities, are essential to support affordable and mid-income housing.

The industry wants the home loan interest tax rebate to increase from ₹2 lakhs to ₹5 lakhs, the house value cap for PMAY benefits to rise to ₹50 lakh in urban areas from ₹35 lakhs, and rental income tax exemptions to be enhanced to ₹3 lakhs for properties priced up to ₹50 lakhs. Extending the timeline for capital gains exemption from 3 years to 5 years is also considered critical for driving investments.

Vikram Vuppala Founder and CEO, NephroPlus

The budget should also focus on green-certified buildings and eco-friendly construction by allocating funds for green financing schemes and energy-efficient housing. These measures will strengthen the real estate sector, ensure affordable housing access, and support India’s goal of becoming a developed nation by 2047.”

“As the government prepares for the 2025 Budget, we hope for a significant increase in funding to expand dialysis services under the PMNDP, addressing the urgent need for dialysis care across the country. Only 15% of patients who require dialysis get access currently. With Lakhs of new patients requiring regular dialysis, increasing dialysis care outlay and thereby increasing access to life sustaining care is crucial.

Additionally, to position India as a global leader in healthcare in line with Vishwaguru philosophy, we urge the government to introduce tax incentives for healthcare services exports and provide robust support for R&D in innovative healthcare services. This will not only benefit millions of patients but also boost India’s stature in the global healthcare ecosystem”

Dr. Dhruv Galgotia, CEO, Galgotias University

“Education is that crucial fulcrum which will further our Prime Minister’s vision of Viksit Bharat 2047. Some of the anticipated policies include education for girls and women, equal access and opportunities, and the discussion around technological interventions. Current data indicates women participation in India Inc at 36 percent.

A major anticipation is nourishment for entrepreneurs, and ways to leverage Artifical Intelligence. In the education domain, countries such as Singapore and US have already commenced their AI journeys. Budget discussions could be an avenue to discuss policies on how to improve investments in the sector. Additionally, initiatives such as facilitation of global learning experiences, integration of sports, other co-curricular activities, and overall development of students should also be looked into.”

Mridul Dhanuka, Director, Orchid Pharma 

“As the pharma sector gears up for the upcoming budget, there are key areas where government support can drive growth and global competitiveness.

Firstly, an expansion of the PLI scheme to include investments in APIs reliant on imported starting materials and critical raw materials would significantly enhance India’s self-reliance in this critical sector.

Secondly, incentivizing R&D through success-based fee support can promote research into cost-efficient processes, green manufacturing, and innovative drug development, which are essential for long-term sustainability.

Simplifying compliance through a single-window reporting mechanism would streamline operations for manufacturers, further enhancing ease of doing business.

Investment in pharma parks with centralized utilities like power, water, steam, and ETP services can substantially reduce project costs, as these account for up to 60% of setup investments.

Tax reforms, including lower corporate income tax rates, would make Indian manufacturers more competitive globally and encourage further investments.

Lastly, greater export support, particularly for MSMEs entering regulated markets, can be a game-changer. Reimbursement of USFDA and other regulatory inspection fees, conditional on successful inspections and achieving export thresholds, would encourage more players to establish world-class facilities, boosting exports and strengthening India’s presence in global markets.”

Dr Geetanjali Chopra, Founder and President, Wishes & Blessings NGO

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

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.

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