"As India prepares for the Union Budget 2025, we find ourselves at a decisive moment in shaping the future of our cities and economy. With nearly half of the Indian population expected to live in urban areas by 2030, the need for infrastructure that is both expansive and sustainable is more urgent than ever.This need for climate conscious infrastructure is not only critical as a response to environmental challenges but also as a deemed driver of long-term economic stability for the country.

The last budget, presented just six months ago, gave significant attention to public infrastructure, while prioritizing sustainability as a key focus. This year, the momentum must continue, with sectors like railways, aviation, healthcare, hospitality, data centers and manufacturing taking center stage. These areas have immense potential to drive innovation, attract large-scale investments, create jobs, and transition India toward a greener model of development. As part of this transition, a wider promotion and integration of green building standards in both public and private sector construction can be an incremental yet impactful step toward embedding climate resilience into India's urban landscape.

Public private partnerships too have been a central focus of the government. While the previous budget expanded the scope of large-scale PPP led projects, this year's focus must include extending these opportunities to develop new urban centers, particularly in Tier 2 and Tier 3 cities. A collaborative model involving state governments, the central government, and private players could further support development that caters to region-specific needs, while also simplifying local regulations and streamlining project implementation. This approach will not only support the development of emerging cities but also ensure sustainability becomes the foundation of India's growth story.

Moreover, as we focus on rapid infrastructure and sectoral development, we must prioritize skill development to build a robust human capital base capable of supporting the scale of growth we are striving for. A dedicated effort toward upskilling and reskilling, particularly in green-tech and building decarbonisation will ensure that India's workforce is ready to meet the demands of evolving industries, fostering inclusive growth and enhancing employability in emerging sectors.

As a developing nation, India has a unique opportunity to embed climate resilience into our infrastructure and policies. This will allow us to balance economic growth with environmental responsibility, positioning India as a global leader in sustainable development. These efforts will not only address immediate goals but also move us closer to the vision of a Viksit Bharat by 2047."

"With the upcoming Union Budget marking the end of a quarter-century of growth and laying the foundation for India's next phase of development, infrastructure must be a central focus. As one of the world's fastest urbanizing nations, India faces the urgent challenge of building infrastructure that can effectively accommodate this population shift. However, this development cannot be limited to concrete structures, but it must include a sustainable foundation that enables the adoption of greener public and private infrastructure.

Last year's allocation of INR 11.11 trillion for infrastructure demonstrated the government's commitment to progress, but this must now evolve to push sustainability a step further and include more initiatives that prioritise the net zero vision, and one such step in the direction should be to incentivize green certifications for building project owners. Simplifying the certification processes and educating all segments of developers across the small to large paradigm about the long-term benefits of sustainable infrastructure will accelerate adoption across the sector. Furthermore this growth must extend beyond metropolitan areas, and should be complemented across all tiers including the Tier 2 and Tier 3 cities, creating opportunities for balanced and environmentally conscious development. Finally, technology should remain core to all our priority areas of growth, the budget must incorporate allocations for widespread adoption of new age smart and green technologies which could further support India's 2070 net zero vision and its transition toward its long-term vision of becoming Viksit Bharat."

"We anticipate that Budget for FY 2025-26 will be pivotal in accelerating India's journey towards self-reliance in the defence and aerospace sectors, both of which are on the brink of significant growth. The government's emphasis on Atmanirbhar Bharat and Make in India is likely to be bolstered by strategic budgetary allocations that promote innovation, support MSMEs, and streamline defence procurement processes. A particular focus on emerging areas such as unmanned aerial systems (UAS), advanced materials, cyber defence, and space technology could unlock substantial opportunities for private capital engagement.

The burgeoning space tech industry, driven by advancements in satellite development, launch capabilities, and space exploration, offers significant potential for innovation and investment.

In line with the government's indigenization drive, we foresee a projected growth of 15-20% in the defence sector, propelled by supportive budgetary measures, incentives for private sector involvement, and a robust push for indigenous manufacturing. The government's planned introduction of a new scheme focused on R&D in deep-tech technologies, such as AI, robotics, and advanced weapon systems, is expected to further catalyze innovation and development within the sector. Initiatives targeting the modernization of India's armed forces, along with anticipated attention on Defence Industrial Corridors and production-linked incentives (PLIs), are set to provide crucial momentum for the sector's expansion.

At IDBI Capital Markets & Securities (ICMS), we remain dedicated to fostering this growth by enabling strategic investments that empower startups, MSMEs, and large enterprises within the defence and aerospace ecosystem. This commitment drives innovation and long-term value creation. A supportive Budget will likely attract greater private sector participation, with an emphasis on technological advancements, ultimately steering us towards strategic autonomy in defence capabilities. We look forward to significant budgetary support aimed at modernizing India's armed forces."

1. Higher tax exemption limits under Section 80C: The current limit of ?1.5 lakh under Section 80C is too narrow, given the variety of eligible investments like EPF, PPF, ELSS, insurance premiums, and home loan principal repayment. Raising this limit to ?2.5 lakh would provide much-needed relief to taxpayers and encourage long-term savings.

2. Increase in the standard deduction for salaried individuals: With rising inflation, the standard deduction of ?50,000 feels inadequate. Increasing it to ?75,000 or ?1 lakh would help salaried individuals manage their disposable income better and boost consumption.

3. Tax parity between mutual funds and ULIPs: Currently, ULIPs enjoy tax-free maturity benefits under Section 10(10D), unlike mutual funds. The government should aim to create a level playing field for all investment products, promoting fair competition and informed investment decisions. Also, switching between schemes in a ULIP levies no tax while in Mutual Funds, it does which needs to be addressed.

4. Incentives for long-term equity investment: Reintroducing the long-term capital gains (LTCG) tax exemption for equity investments held for more than three years or increasing the threshold limit (currently ?1 lakh) could motivate retail investors to stay invested in equity markets longer, promoting financial discipline.

5. Reduction in GST on financial products and services: Financial services like mutual fund management fees, insurance premiums, and brokerage charges currently attract 18% GST. A reduction in GST rates for such essential services to 12% or lower could encourage broader participation in organized financial markets which still remains pathetically low.

6. Greater focus on retirement savings: The government should consider:

o Introducing higher tax benefits for NPS contributions, especially for Tier-II accounts.

o Creating a special tax-saving category for retirees who are heavily dependent on fixed-income investments.

7. Enhancements in Sovereign Gold Bond (SGB) schemes: As physical gold remains culturally significant, promoting SGBs with higher interest rates or additional tax benefits for longer-term holdings could encourage financial gold ownership over physical gold.

8. Tax-free income on green investments: To align with India's sustainability goals, introduce tax-free bonds for green infrastructure projects or offer tax deductions for investing in environmentally friendly funds.

A smart budget lays the foundation for smarter financial decisions-here's hoping the government crafts a budget that respects our money's hard work!

The upcoming budget carries high expectations, particularly for the middle-income group, which has been grappling with rising household expenses and inflation. Over the years, there have been limited tax benefits for this segment, despite the increasing financial burden.

One area in dire need of attention is the tax deduction limit on home loan interest payments, which has remained unchanged since 2014. The limit was last increased from ?1.5 lakh to ?2 lakh, but in the decade since, real estate prices have escalated significantly due to rising demand, land costs, and construction expenses. During the same period, the average home loan ticket size has more than doubled, resulting in higher EMIs and larger interest components.

For many homebuyers, especially in metropolitan areas, the interest portion of their loan repayments far exceeds the current deduction limit. Enhancing the limit to at least ?5 lakh would provide much-needed relief and encourage homeownership.

Additionally, owning a home is a basic necessity and a lifelong dream for most people. The government should consider allowing a standalone deduction for home loan principal repayment, separate from Section 80C, which is overcrowded with various other investment and saving avenues. Currently, this limits taxpayers' ability to fully benefit from the principal repayment deduction.

However, if increasing the deduction limits is not feasible due to the government's focus on promoting the new tax regime, we believe an alternative solution could be making income up to ?10 lakh tax-free. This would address the financial strain on the middle class and fulfill their long-standing expectations.

"The Budget 2025 is a critical moment for India to reclaim its leadership in the global tech ecosystem. India ranks #1 in the number of crypto holders and #3 in tech unicorns globally. Yet, we seem to have missed the Web3 tsunami, which doubled its market cap in 2024 and saw DeFi TVL surge by 2000% year-on-year. Ambiguity in crypto compliance and a regressive tax regime have hindered innovation, pushing startups and talent overseas.

The RBI's stance reflects a lack of understanding of decentralization's intrinsic nature-it cannot be banned, only regulated. Meanwhile, nations like the U.S., Singapore, Russia, South Korea, and the UAE are embracing progressive policies to foster crypto innovation. The approval of Bitcoin and Ethereum ETFs in the U.S. in 2024 underlines the importance of forward-looking regulations.

In a country with thousands of tech startups, a thriving ecosystem, and globally leading talent, the crypto industry expects balanced taxation, clear compliance frameworks, and innovation-friendly policies. These are crucial to ensuring India remains in the forefront. The finance ministry and the RBI must mitigate risks without stifling growth. A progressive approach will unlock massive economic potential, create jobs, and solidify India's position as a global leader in Web3 innovation."

"As India prepares for the Union Budget 2025, we find ourselves at a decisive moment in shaping the future of our cities and economy. With nearly half of the Indian population expected to live in urban areas by 2030, the need for infrastructure that is both expansive and sustainable is more urgent than ever.This need for climate conscious infrastructure is not only critical as a response to environmental challenges but also as a deemed driver of long-term economic stability for the country.

The last budget, presented just six months ago, gave significant attention to public infrastructure, while prioritizing sustainability as a key focus. This year, the momentum must continue, with sectors like railways, aviation, healthcare, hospitality, data centers and manufacturing taking center stage. These areas have immense potential to drive innovation, attract large-scale investments, create jobs, and transition India toward a greener model of development. As part of this transition, a wider promotion and integration of green building standards in both public and private sector construction can be an incremental yet impactful step toward embedding climate resilience into India's urban landscape.

Public private partnerships too have been a central focus of the government. While the previous budget expanded the scope of large-scale PPP led projects, this year's focus must include extending these opportunities to develop new urban centers, particularly in Tier 2 and Tier 3 cities. A collaborative model involving state governments, the central government, and private players could further support development that caters to region-specific needs, while also simplifying local regulations and streamlining project implementation. This approach will not only support the development of emerging cities but also ensure sustainability becomes the foundation of India's growth story.

Moreover, as we focus on rapid infrastructure and sectoral development, we must prioritize skill development to build a robust human capital base capable of supporting the scale of growth we are striving for. A dedicated effort toward upskilling and reskilling, particularly in green-tech and building decarbonisation will ensure that India's workforce is ready to meet the demands of evolving industries, fostering inclusive growth and enhancing employability in emerging sectors.

As a developing nation, India has a unique opportunity to embed climate resilience into our infrastructure and policies. This will allow us to balance economic growth with environmental responsibility, positioning India as a global leader in sustainable development. These efforts will not only address immediate goals but also move us closer to the vision of a Viksit Bharat by 2047."

Digitalization has revolutionized banking, making it more convenient for customers and advancing financial inclusion, with India now accounting for nearly 46% of the world's digital transactions. While the financial services sector holds a promising outlook, achieving the vision of Viksit Bharat will require exponential growth-20 times the current scale. This ambitious goal demands a focus on real-time innovation, robust data privacy policies, and resilience against global challenges.

We anticipate the Union Budget 2025 will support these efforts by enhancing synergies among banks, NBFCs, fintechs, and digital infrastructure. Budget allocations for R&D in technologies like AI and blockchain, along with initiatives for rural outreach and MSME credit support, will be pivotal. By fostering collaboration, technological advancements, and consumer-centric policies, the financial services sector can significantly contribute to Digital India and the nation's economic growth.

"India stands at a pivotal moment in its fintech revolution, with 2025 promising to be a landmark year for innovation, inclusion, and economic growth. The Union Budget offers a unique opportunity to shape the trajectory of the fintech ecosystem, which has already positioned India as a global leader in digital payments and financial technology.

In 2024 alone, India processed over 12 billion UPI transactions monthly, a testament to the growing trust and adoption of digital financial tools across urban and rural landscapes. At PaySprint, with over 5,000 partners and a robust suite of API-driven solutions, we've witnessed firsthand how technology can empower businesses and drive financial inclusion. However, to sustain this momentum, we need supportive policies that bridge existing gaps and fuel the next wave of innovation.

One critical area for focus is enhancing the infrastructure for open banking and API-driven platforms. A recent study by BCG indicates that India's fintech sector could contribute $200 billion to GDP by 2030, but achieving this requires interoperability, seamless integrations, and policies that encourage collaboration between banks, fintechs, and regulators. The budget could incentivize these efforts by promoting API standardization and allocating funding for ecosystem-wide development.

Financial inclusion must remain at the heart of this vision. While over 80% of Indian adults now have a bank account, thanks to initiatives like Jan Dhan Yojana, only about 23% of rural users actively engage in digital transactions. Bridging this gap requires targeted investments in digital literacy programs, internet infrastructure expansion in underserved regions, and subsidies for SMEs to adopt digital payment systems. Empowering small businesses is especially critical, as they contribute nearly 30% of India's GDP and are key drivers of employment.

Additionally, the government has an opportunity to support fintech startups and RegTech innovations through tax relief and funding programs. According to NASSCOM, India is home to over 2,300 fintech startups, yet many face challenges in scaling due to high compliance costs and limited access to capital. Incentives for early-stage innovators could unleash a wave of transformative solutions in areas like fraud detection, automated compliance, and data security.

Lastly, cybersecurity and data privacy must remain a top priority. With digital payments surpassing ?20 lakh crore monthly, trust in secure platforms is non-negotiable. Budget provisions that establish national cybersecurity frameworks and offer grants for fintechs to invest in advanced data protection technologies will ensure that users can transact with confidence.

At PaySprint, we are committed to driving financial inclusion and delivering innovative solutions that simplify banking and payments for all. The 2025 Union Budget has the potential to catalyze the fintech sector's growth, ensuring that India remains at the forefront of the global digital economy. Together, with the right policies and collective effort, we can build a more inclusive, secure, and prosperous future for millions of Indians."

"The recent tax changes for debt funds have severely impacted retirees seeking safe, non-volatile investments to beat inflation on a post-tax basis. With long-term capital gains tax on pure debt funds now equivalent to fixed deposits at a marginal rate of tax, retirees are forced to consider hybrid funds with a minimum 15-20% equity component to achieve tax-efficient returns. This exposes them to unnecessary risk. To address this, I urge the government to exempt long-term capital gains tax for investors above 60-65 years at the time of redemption. This would encourage the use of pure debt funds and products, providing retirees with a stable and low-risk investment option, uncorrelated with the volatility of equity markets."

It is concerning that GDP growth has recently slowed to a 7-quarter low of 5.4% in 2QFY25. It is expected that in response, the government will give priority to policies that bolster growth, especially by providing financial assistance to those with lower incomes. Key areas of focus are likely to include investments in infrastructure development, sustainable energy initiatives, a manufacturing sector boost, and continued spending on defense and railways-all of which can play a crucial role in bolstering economic growth and increasing demand for SMEs.

Furthermore, increased spending on social sectors such as healthcare and housing, along with the implementation of a direct tax code and a simplified tax structure, could increase disposable income, and encourage greater consumption, particularly among lower-income groups.

From a market perspective, it is essential to strike a balance between growth-centric spending and fiscal prudence. Markets will pay close attention to any guidance that shows GDP growth is higher than 6.5%, as this could be interpreted favorably. A growth-oriented budget is essential, but the government may tread cautiously regarding populist measures, as such steps could exacerbate the fiscal deficit, weaken the Rupee, and potentially delay economic recovery by limiting rate cuts. Any deviations from fiscal discipline or indications of lower growth expectations could lead to market sell-offs.

"The MSME sector, the backbone of India's economy, requires a strong push toward innovation and technological adoption. Simplifying interstate and export logistics compliance is critical to enabling seamless commerce. Expanding the scope of credit guarantee schemes will enhance access to funding for startups and export-focused MSMEs, fostering growth across the sector. To accelerate the adoption of EV charging infrastructure, tax benefits should be extended to hotels, malls, parking facilities, and other establishments that provide public EV charging stations.

Budget 2025 should prioritize the formalization of MSMEs by simplifying tax and compliance processes, encouraging more businesses to integrate into the formal economy. Streamlining complex filing requirements is essential to reducing operational costs and enabling MSMEs to scale effectively."

"The upcoming Union Budget presents a significant opportunity to strengthen India's financial ecosystem and drive inclusive growth. We urge the government to expand the PSL(Priority Sector Lending) definition to include emerging sectors like renewable energy, women-led enterprises, and digital infrastructure, aligning with India's evolving economic priorities. Establishing a dedicated regulatory framework for NBFC catering to PSL will further enable focused lending to underserved segments. Additionally, measures such as concessional refinancing from institutions like SIDBI and NABARD, along with credit guarantee schemes, can lower borrowing costs and mitigate risks, encouraging greater participation from banks and investors. Allowing bank loans to NBFC-PSLs to qualify as PSL will ensure consistent capital flow, empowering MSMEs and other critical sectors to scale operations and contribute to the nation's growth. By implementing these measures, the budget can pave the way for a robust financial ecosystem, fostering innovation, entrepreneurship, and equitable development across India."

1. From ICUs to OPDs: How Budget 2025 Could Impact Hospital Services Nationwide

2. Union Budget 2025: Will Healthcare Finally Get the Lion's Share?

3. Emergency Care and Beyond: What Hospitals Expect from Budget 2025

4. Prescription for Change: How Budget 2025 Could Impact Your Medical Bills

5. The Billion-Dollar Question: How Will Budget 2025 Fund India's Hospitals?

6. Boosting Public-Private Partnerships: Will Budget 2025 Give Healthcare a Financial Lifeline?

According to a recent report by Deloitte India, "Poor mental health in employees is causing Indian companies a loss of over $14 Billion (INR 1,19,000 crores) annually" - Investing in mental health is crucial for not only enhancing productivity but enhancing overall happiness across sectors. The Union Budget for 2024-25 allocated approximately ?90,659 crore to the healthcare sector, a modest increase of 2% from the previous fiscal year. However, only about 1% of this allocation is dedicated to mental health initiatives, with ?850 crore for the National Institute of Mental Health and Neurosciences (NIMHANS), ?60 crore for the Lokopriya Gopinath Bordoloi Regional Institute of Mental Health, and ?90 crore for the National Tele-Mental Health Programme (TELE Manas).

Despite these allocations, there remains a significant need for increased funding and awareness, particularly concerning postpartum depression. Approximately 22% of new mothers in India experience postpartum depression, yet many remain unaware of their condition.

By allocating more resources to mental health services and launching targeted awareness campaigns about conditions like postpartum depression, the government can directly improve national well-being. Such investments would not only enhance individual quality of life but also contribute to a more productive and prosperous society.

Furniture Industry Hopes for PLI Scheme Inclusion in Budget.Furniture industry eagerly anticipates its inclusion in the Production Linked Incentive (PLI) scheme. As Previously indicated by the finance minister for inclusion in the furniture industry, this move could modernize the sector, enhance exports, and align with the 'Make in India' initiative.

Inclusion in the PLI scheme would enable the industry to invest in capital expenditure (capex) and adopt advanced manufacturing technologies and know how. This modernization could reduce production costs and boost global competitiveness which would be complementary to the introduction of BIS in Furniture fitting sector. This would be a game-changer, modernizing and making Indian furniture a global brand.

We anticipate lower Tax rates of GST and income tax to enhance household savings of the public at large to drive consumer demand and industrial growth.The sector hopes the Finance Ministry's announcement will deliver on these expectations, paving the way for growth, innovation, and increased employment opportunities.

"We anticipate that the upcoming Union Budget will prioritize infrastructure spending, which will significantly benefit our lending segments, particularly small businesses, contractors, and transporters. This focus on infrastructure is expected to lead to a surge in demand for steel, cement, and other materials, further driving demand in vehicle finance and other sectors reliant on bulk materials. This will not only boost economic activity but also create substantial employment opportunities, especially in semi-urban and rural areas. We foresee new vehicle sales growth in Q4 to be in double digits year-on-year, as we expect government spending on infrastructure to be much higher than previous quarters."

"The government has shown tremendous support and impetus towards the healthcare sector in the last few years. As the government sets its eyes on the next budget, we look forward to the possibility of an increased allocation to the tune of 2.5-3% for the healthcare sector.

This would help in addressing the country's growing healthcare needs and improve access to quality care. It will boost infrastructure development, especially in Tier 2 and 3 cities, strengthen primary care through expanded Public Health Centres, encourage public-private partnerships, and support medical education expansion to address shortages of medical professionals and nurses. The budget should also address the acute shortage of healthcare professionals through increased funding for medical education infrastructure and skill development programs.

Additionally, the budget's strategic focus should extend to creating sustainable healthcare solutions. For meaningful impact, we expect comprehensive reforms in health insurance accessibility, with the Ayushman Bharat scheme expanding beyond its current 34.2 crore beneficiaries through innovative financing models and higher amounts for complex procedures in super-speciality hospitals.

Tax incentives for private insurance adoption, particularly targeting the middle class, coupled with streamlined digital claim processes, could revolutionize healthcare financing. Substantial allocations for preventive healthcare, including a nationwide network of screening centres and wellness programs that could fundamentally shift our healthcare approach from curative to preventive will be beneficial for all.

Long-term Infrastructure like financing options at lower rates and higher payment periods along with tax breaks will help expansion and give access to the Indian population. Long-term infrastructure like financing options at lower rates and longer repayment periods, along with tax breaks, is critical for healthcare expansion and accessibility in India. Affordable credit reduces financial strain on providers, enabling investments in facilities, equipment, and training. Current loan tenures of 7-8 years are insufficient, as hospitals require significant capital for land, infrastructure, operations, and human resources, with years needed to achieve breakeven. Long-term credit (15-20 years) with lower interest rates and reduced collateral requirements is essential to address bottlenecks, revive stalled projects, and reduce NPAs in the sector. Tax reforms are equally crucial. Shifting hospitals from the GST exemption category to zero-tax would allow input credit, lowering treatment costs for patients. Additionally, tax holidays for greenfield healthcare projects, akin to those for SEZs and Tech Parks, would drive private investments. A holistic approach, including incentives for ancillary services, is vital to create a robust ecosystem. Rationalized policies and support will transform healthcare, ensuring affordable and accessible quality care nationwide.

Digital health transformation should receive significant attention, with expected investments in AI-driven diagnostics, telemedicine infrastructure, and electronic health records. These technological interventions are crucial for bridging the urban-rural healthcare divide and optimizing our limited healthcare resources.

Following the positive impact of previous customs duty exemptions on cancer medicines, we anticipate similar relief measures for a broader range of critical medical equipment and pharmaceuticals, stimulating both healthcare accessibility and domestic manufacturing capabilities.

The budget may also consider moderate investments in the AYUSH sector, focusing on research-backed integration with modern medicine where appropriate, while maintaining the primacy of evidence-based healthcare practices.

However, the success of these ambitious initiatives will hinge on robust implementation frameworks and governance mechanisms.