Union Budget 2025: High hopes as dark clouds loom over economy

Union Budget 2025: High hopes as dark clouds loom over economy
Finance Minister Nirmala Sitharaman is set to present the Union Budget on February 1. While a slowdown in the ongoing financial year was anticipated, the steep downward revision in GDP growth for FY25 has surprised many.Concerns over economic growth have intensified, with India’s GDP projected to slow sharply to 6.4% in FY25, according to the government’s first advance estimates. This marks a significant drop from the 8.2% growth recorded in FY24 and represents the slowest expansion in four years.
Union Budget 2025: INDIA INC KS MAJOR REFORMS
The corporate sector is pinning its hopes on the upcoming budget. Amit Modi, director of County Group, highlighted the real estate industry’s pressing needs.
“One of the most long-standing demands is granting industry status to enable easier access to low-cost financing, which directly benefits consumers. Additionally, implementing single-window clearance is crucial for timely project completion and cost efficiency,” Modi said.
He further added, “Reintroducing GST input credits for residential real estate will stabilise costs. We also expect the home loan interest exemption to be increased to Rs 8 lakh annually to support first-time buyers, while Section 80C should either exclusively cover housing loan principal deductions or have its limit raised to Rs 5 lakh.”
Union Budget 2025: REAL ESTATE AWAITS RELIEF
The real estate sector, grappling with challenges, anticipates significant measures to aid the middle class and the industry. Sachin Gawri, founder and CEO of RISE Infraventures, addressed the sector’s expectations.
“Real estate reflects India’s economic progress, yet significant untapped potential remains. Budget 2025 should address high input costs by extending input tax credits and reducing GST on materials,” Gawri said.
He suggested revising the affordable housing definition to Rs 80 lakh, reintroducing a 100% tax holiday for such projects, and creating new land banks to boost supply.
“Combining home loan principal and interest deductions with a Rs 5 lakh cap would ease homeownership. Additionally, reducing the long-term capital gains holding period to two years, raising Section 54EC exemptions to Rs 1 crore, and expanding REIT benefits will spur investments,” he added.
STARTUPS K SUPPORT
The startup ecosystem, a critical driver of job creation, faces hurdles that need immediate attention. Sumit Singh, CEO and co-founder of DashLoc, outlined the sector’s expectations from the budget.
“As the Union Budget 2025 approaches, it is crucial for the government to focus on bolstering the startup ecosystem by reducing regulatory complexities, which often hinder growth,” Singh said.
He proposed establishing dedicated IT software parks to provide essential infrastructure and foster innovation. “Simplifying access to loans through banks and government-backed schemes will ensure startups can secure funding more efficiently, enabling them to scale and contribute significantly to the economy,” Singh added.
HEALTHCARE DEMANDS INCREASED FOCUS
Although the world has largely overcome the Covid-19 pandemic, HMPV infections have raised fresh alarms. The healthcare sector is calling for increased investments and policies to address systemic gaps.
Dr Pravin Gupta, principal director and chief of neurology at Fortis Hospital, stressed the need for a roadmap. “We expect a clear plan to increase public healthcare spending. Strategic investments coupled with supportive policies can bridge the rural-urban divide and ensure access to critical care, especially in underserved regions,” he said.
Dr Ashish Chaudhari, managing director at Aakash Healthcare, echoed similar sentiments. “Reinstating the 150% deduction under Section 35AD of the Income Tax Act for new healthcare projects and providing tax holidays for a minimum of 15 years for new projects, alongside a 10-year tax relief for existing facilities, are key demands,” Chaudhari said.
“These measures will ease the financial burden on healthcare providers and ensure cost savings are passed on to patients, making healthcare more affordable,” he added.
With stakeholders across sectors voicing their concerns and expectations, the Union Budget 2025 holds the promise of addressing critical issues and driving India’s economic recovery.Union Budget 2025Gukesh earns INR 13.6 crore from prize money alone in 2024, two times more than US President’s annual salary