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Anticipation is building as the finance ministry gears up to announce the upcoming fiscal year’s budget, with widespread speculation about its potential impact on citizens, businesses, and the economy at large. Many expect significant measures aimed at boosting economic recovery, including incentives for small businesses and startups, alongside ambitious reforms in infrastructure and industrial growth. With rising inflation and inequality posing serious challenges, the government is also likely to unveil expanded social welfare programs, focusing on healthcare, education, and affordable housing.

“As we look forward to the Union Budget 2025, the commercial real estate sector anticipates measures to drive growth and innovation, with Grade A office spaces playing a crucial role in attracting global businesses, boosting economic progress, and establishing standards for sustainability and design. Therefore, we encourage the government to consider policies such as tax incentives for green-certified commercial projects, easier access to financing, and streamlined regulatory approvals to accelerate developments. Additionally, enhancing infrastructure in key business districts and offering incentives for hybrid workspace solutions can further boost demand. Moreover, the upcoming budget is an opportunity to address the diverse needs of luxury commercial real estate, ensuring India remains a prime destination for global corporates and high-value investments.”

Ashish Sharma, AVP Operations, Brahma Group

There is considerable talk about the inclusion of environmental initiatives, such as subsidies for renewable energy and revised carbon tax policies, signaling a commitment to sustainability and climate goals. However, striking a balance between fiscal prudence and economic stimulation remains a delicate task. Economists caution against aggressive spending that could fuel inflation, while austerity measures might stifle much-needed growth.

“2024 witnessed quarter on quarter capital formation via AIFs dip to single digits, compared to double digit growth in 2023. AIFs play a crucial role in terms of capital formation in India and investments in the Indian economy. The last budget saw the rationalization of tax rates between listed and unlisted entities, a longstanding ask of Indian AIFs and startups. The need of the hour is clarity and parity: tax clarity on numerous operations of AIFs, such as the characterization of their gains, tax treatment at the end of a fund’s life, how demataterizaliton of Units will play out with the atx code; Parity between foreign and domestic funds in terms of taxation is also required. Both of these will be crucial to attract foreign investors to AIFs; if they see Foreign Funds enjoying better tax treatment in India, they would prefer these foreign vehicles instead of Indian AIFs. This parity will also attract investors and fund managers to GIFT IFSC as it seeks to establish itself firmly amongsgt international financial centres. As the uncertainty around the elections of 2024 has abated, Budget 2025 must deliver on the twin asks of clarity and aprity to allow AIFs to garner capital and kick start a new investment cycle.”

Siddarth Pai, Founding Partner and CFO, 3one4 Capital & Co-Chair, Regulatory Affairs Committee, IVCA

Public sentiment reflects a mix of hope and apprehension, with many citizens calling for inclusive policies and transparency in how resources are allocated. Businesses, particularly those in struggling sectors, are eager for relief measures that can help them navigate the current economic uncertainty. As the date for the budget announcement approaches, all eyes are on the finance minister to deliver a vision that addresses immediate challenges while paving the way for sustainable and equitable growth.