The Stage is Set for Union Budget 2025

The stage is all set for the Union Budget 2025, which will be the second full Budget president under the leadership of PM Modi in his third reign. In the buildup to it, we spoke to several leaders to understand their final thoughts ahead of this landmark announcement. Here’s what they had to say.

Dr. Arvind Gupta, Head of Digital India Foundation

“This budget should set the foundation of Viksit Bharat, unleashing India’s animal spirits. Increase consumption and enhance private investment climate will be top level expectations from the budget.”

Amit Gossain, MD of Kone Elevator, India & South Asia

“As India gears up for the upcoming Union Budget, the manufacturing and real estate sectors are key in driving the nation’s economic growth. Historically, budgetary allocations towards infrastructure development and housing have significantly contributed to urbanization and industrial expansion.

In recent years, initiatives like the PM Gati Shakti plan and incentives for affordable housing have showcased the government’s commitment to creating a robust ecosystem for these sectors.
This year, we anticipate measures to further strengthen the manufacturing sector through investments in technology, skill development, and green energy transitions. Similarly, incentives for sustainable construction practices and support for mid-tier cities can stimulate real estate growth while addressing urban housing challenges. At KONE India, we remain committed to shaping the future of cities, and a forward-looking budget will reinforce India’s position as a global hub for manufacturing and real estate innovation.”

Kamal Bali, MD & President of Volvo Group in India

“To meet the compelling goal of sustained 8%+ growth, India needs to open up further with bold reforms, leave more money in the hands of the middle income group to encourage consumption, continue increased investment in infrastructure and spur private investment with schemes such as the PLI.”

Nirav Choksi, CEO and Co-Founder of CredAble

“The Economic Survey has pegged India’s FY26 GDP growth between 6.3% and 6.8%. The route to higher productivity lies in creating a win-win economic fabric for all sectors, especially the MSMEs.

We’re seeing a positive shift in India’s financial services ecosystem with bank credit to MSMEs surpassing enterprises with 13% growth. RBI’s ULI is bringing about sweeping changes in the MSME credit ecosystem. With its open architecture and plug-and-play model, ULI is improving the discoverability and deliverability of credit to underserved MSMEs.

FinTechs are also playing their part in democratising financial services by accelerating the deployment of technology-enabled financial inclusion and pay-as-you-use financing solutions. While FinTechs are redefining MSME lending with innovative underwriting approaches, products like ULI can extend their reach and cover more lending use cases and categories to remove structural barriers and improve access to working capital financing for MSMEs.”

Dr S Prakash, MS, FRCS (Glasgow), FAIS – Co-Founder and Formerly MD of Star Health Insurance, Advisory Committee Member of NABH
Lead – CII SR Working Group, Health Insurance Initiatives

“My expectations are:

Also, 80D relief for Sr. Citizen to be raised to INR 100,000 given rise in premiums and higher coverage required”

To reduce GST on Health Insurance, Term life insurance to 10%

To reduce the GST for Medical equipment, AMC services & Hospital consumables as Hospitals do not have Input tax credit

To increase import duty on unwanted luxury items and items where domestic manufacture is already there

To focus benefits for senior citizens like Income Tax relief.

Sumit Bohra, President, Insurance Brokers Association of India (IBAI)

“As we approach the Union Budget for 2025, we are looking forward to the
government to provide tax exemption on GST or moderation of GST rate across the health and term insurance premium. There should also be a separate section apart from section 80D and 80C for deduction or exemption for insurance policies that should cover health insurance, personal accident, home insurance and life
insurance. This deduction request for exemption for insurance policies should also be part of the new tax regime.”

Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd.

“As we approach the upcoming budget, the real estate sector is optimistic about reforms that can act as growth catalysts and enhance operational efficiency. Revising the current tax exemption limit on housing loans to 75 lakhs, in line with rising property prices and construction costs, could provide significant relief to homebuyers. This step would directly support millions of aspiring homeowners and boost demand across the sector. Equally transformative would-be granting industry status to real estate, a move capable of invigorating over 200 allied sectors. Such recognition would foster job creation, enable skill development, and amplify economic activity, further solidifying the sector’s position as a cornerstone of India’s economy. Similarly, the formulation of the CLSS scheme and the creation of affordable housing zones, akin to SEZs, could provide targeted incentives and address critical demand-supply gaps.”