Anticipating the Union Budget 2025-26

As the Union Budget 2025-26 is set to be presented, there is a widespread anticipation for measures that will balance economic growth with fiscal prudence. The budget aims to address the expectations of taxpayers, businesses, and key industries, driving consumption and incentivizing capital expenditure.

Key Expectations and Sectoral Focus

Industry leaders are hopeful for support in critical sectors such as real estate, MSMEs, healthcare, artificial intelligence (AI), electric vehicles (EVs), and renewable energy. Continued fiscal consolidation remains a key expectation, with the government aiming to reduce the fiscal deficit from 4.9% in FY25 to 4.8% in FY26, targeting 4.5% by FY26.

Tax Reforms and Economic Growth

Taxpayers are looking forward to tax relief, with demands for changes in tax slabs, increased exemption limits, and standard deductions. Businesses expect a growth-oriented budget that maintains fiscal discipline, with a significant portion favoring a 15% increase in capital expenditure allocation to fuel economic growth.

Infrastructure and Export Competitiveness

Infrastructure development and enhancing export competitiveness are also key expectations. Investments in roads, railways, and other critical infrastructure are anticipated to be a major focus, alongside efforts to improve logistics efficiency and extend interest equalisation schemes to strengthen India's global trade standing.