Budget 2025 Expectations from the Manufacturing Sector: As Union Finance Minister Nirmala Sitharaman prepares to present Budget 2025 on February 1, the manufacturing sector is looking forward to measures that promote sustainable production and automation. Industry experts emphasize the need to prioritize small and medium enterprises (SMEs) over larger corporations by expanding incentives, simplifying regulations, and enhancing funding opportunities.

Key Insights from Industry Leaders:

Paritosh Ladhani, JMD, SLMG Beverages, stated, “As we approach Budget 2025, it is essential to balance fiscal discipline with growth-focused reforms. Strengthening support for key initiatives like Make-in-India, Ease of Doing Business, and the Production-Linked Incentive (PLI) scheme is crucial, particularly for sectors such as manufacturing, food & beverages, and hospitality. These steps can drive India’s next phase of economic growth by leveraging its demographic advantage and increasing power consumption. Additionally, tax reforms, GST simplification, and safeguarding domestic industries should be key priorities to ensure long-term, sustainable economic development.”

Vyom Agarwal, President of ACE-Action Construction Equipment Ltd, stated, “As we look forward to Union Budget 2025, we expect it to build upon the momentum of previous budgets, with a strong emphasis on boosting infrastructure and manufacturing. Ensuring easy access to credit and implementing a uniform GST structure for MSMEs will be key to fostering employment and economic growth. The government’s continued investment in defence, aligned with the ‘Make in India’ initiative, will further enhance self-reliance.

Additionally, a stronger push for green hydrogen, with increased funding and financial incentives, will help position India as a global leader in clean energy. We also hope for a more strategic approach to fair trade policies, including robust anti-dumping measures to safeguard domestic industries. These initiatives will strengthen India’s competitiveness in global markets, contributing significantly to the ‘Viksit Bharat’ vision and long-term economic prosperity.”

Rakshit Mathur, CEO of MIC Electronics Limited (MICEL), stated, “The Union Budget 2025 comes at a crucial time for key sectors such as railways, power electronics, medical electronics, and LED displays & lighting. As the world moves towards sustainable and energy-efficient solutions, the government must introduce incentives to strengthen domestic manufacturing and encourage R&D in these specialized fields.

Simplifying compliance regulations and providing support to small and medium enterprises (SMEs) will help them compete on a global scale. Key policies such as increased allocation for the Production-Linked Incentive (PLI) scheme, reduction in import duties on essential raw materials, and investment in skill development programs will be essential in establishing India as a global hub for these industries.”

Mr. Santosh Agarwal, CFO & Executive Director, Alphacorp, stated: “The year 2024 has witnessed a significant shift towards luxury living, with real estate projects redefining upscale residences. The rising demand for luxury and ultra-luxury homes highlights a growing preference for properties that offer both elegance and long-term investment potential.

The upcoming Union Budget presents a crucial opportunity to accelerate this growth. We expect policy measures that enhance affordability, introduce tax incentives, and boost infrastructure development, enabling us to cater to the aspirations of high-net-worth individuals. These strategic interventions will not only strengthen the luxury housing market but also contribute to the overall expansion and resilience of the real estate sector in the coming year.”

Mr. Gaurav K Singh, Founder and Chairman- Womeki Group said, “The Indian real estate sector is a vital contributor to the GDP. The upcoming budget will focus on various measures to boost growth, affordability, and sustainability. The industry is expecting policies promoting affordable housing, rationalisation of GST, and incentives to promote green real estate. For Delhi NCR, infrastructure development and smart city initiatives remain key. Better road networks, metro expansion, and seamless connectivity to Delhi and surrounding areas will further enhance the region’s position as a top real estate investment destination. The growing commercial and luxury residential segments highlight the need for reforms which enable ease of doing businesses and streamlined approvals. The real estate market will reach new heights if the upcoming budget addresses these areas, attracting domestic and international investors. With supportive policies, Delhi NCR is poised to remain at the forefront of India’s real estate growth.”

Mr. Manik Malik, CFO, BPTP said, “As the Union Budget 2025 – 26 approaches, the real estate sector eagerly awaits impactful measures to drive growth and sustainability. With rising housing demand across different locations, tax reliefs for homebuyers and incentives for the housing sector are crucial. Policies promoting sustainable development, infrastructure enhancement will not only help in economic growth but also boost housing demand.Additionally, more real estate investments, particularly in the housing sectors, can be stimulated by extending the benefits of capital gains and allowing for greater flexibility in reinvestment standards. In addition to accelerating sector growth, a forward-thinking policy framework with these measures will support infrastructure development and job creation, both of which are essential for India’s economic future.

Mr. Viren Mehta, Director, ElitePro Infra says, “The real estate industry is gearing up for the upcoming budget for new opportunities and growth potentials. The upcoming budget is a que for the industry to revive housing demand conditions. For homebuyers, tax reliefs and simplified tax systems can be helpful especially for first time homebuyers. Key priorities of the upcoming budget include increasing the income tax deduction limit for home loan interest under Section 24(B), incentives for green building projects, and rationalisation of GST rates for under – construction properties. Boosting the affordable housing segment via enhanced tax sops and rental housing schemes are crucial to address urban housing affordability. Additionally, focus on infrastructure development, implementation of digital land records, and incentives for REITs and InvIts can attract better investment. There should also be relaxed FDI norms to encourage global investments. With targeted initiatives, the budget can not only revive housing demand, but also strengthen its role as a significant contributor to economic growth.

Yashank Wason, Managing Director, Royal Green Realty said, “The impending budget offers a critical chance to support the real estate industry, especially in Tier-II cities, which are becoming economic development engines. In order to draw investments and spur urbanization in cities like Indore, Bahadurgarh, Sonipat and others, we want policies that support different housing segment, infrastructure growth, and improved connectivity. We anticipate policies like higher tax deductions on home loan interest and streamlined GST rates across segments to improve housing affordability. Simplified single-window clearance procedures are necessary to cut down on project delays and related expenses. By meeting these goals, the budget may enable Tier-II cities to become independent centers of growth, making a substantial contribution to India’s urban transformation and generating strong prospects for the real estate industry.”

The collective expectation from the industry is a balanced approach in the Union Budget 2025, with a focus on long-term economic growth, global competitiveness, and addressing the needs of both large industries and SMEs. By promoting key sectors like manufacturing, infrastructure, clean energy, and real estate, the government can position India for sustainable growth, employment generation, and enhanced global stature. The initiatives in this budget will play a pivotal role in shaping India’s economic future and realizing the vision of a “Viksit Bharat.”