Budget 2025 Expectations: Will Nirmala Sitharaman offer tax cuts to salaried employees, incentives for MSMEs?

New Delhi, January 28, 2025.

As Union Finance Minister gears up for presenting Union Budget 2025 on February 1, all eyes are on what she has to offer to the salaried employees, corporates and entrepreneurs. The Budget Session 2025 will kick off on January 31 with President Droupadi Murmu addressing a joint Parliamentary session of both Lok Sabha and Rajya Sabha and will conclude on February 13.

 ‘We hope this year’s Union Budget continues the infrastructure investment momentum,’ says HIL Limited MD & CEO

Managing Director and Chief Executive Officer of HIL Limited, Akshat Seth, said that the company hopes that the government continues the momentum of infrastructure investment with this year’s Union Budget. “The Government of India’s allocation of Rs 11,11,111 crore (approximately $133 billion) for capital expenditure in the Union Budget 2024-25, representing 3.4% of the GDP, reflected a clear commitment to an investment-led growth strategy focused on creating quality infrastructure,” Seth said.

“Government support for initiatives encouraging sustainable building solutions and powering up popular schemes such as Jal Jeevan Mission & PM Avaas Yojana can help create employment, improve health & sanitation conditions while providing affordable housing and essential infrastructure to the masses,” Seth added.

Mr. Vikram Gulati, Country Head and Executive Vice President – Corporate Affairs and Governance, Toyota Kirloskar Motor Said’ “Government’s commitment towards modernising infrastructure through sustained investments has boosted economic growth and helped lower logistic costs. The Production Linked Incentive (PLI) Schemes by the Government have facilitated investments in key sectors and cutting edge technologies. This has helped enhance efficiencies and gain economies of scale thereby contributing to improving Indian industry’s global competitiveness. These measures have been accompanied by continued focus on maintaining prudent fiscal discipline.

In the upcoming budget, we hope for sustained focus on infrastructure spending and enhancing the scope of PLIs. With regards to the automotive sector, India is now on the verge of achieving the target of E20 (20% ethanol blending) in the shortest timeframe, globally. This will substitute significant fossil fuel imports with indigenous Biofuel (Ethanol) sourced from our farmers and result in lower carbon emissions. Further, the sales of electrified technologies are also increasing rapidly. Moving ahead, we request the Government for appropriate merit-based policies that support and help in popularising full range of greener technologies and alternative fuels thereby helping in faster and greater adoption of multiple sustainable mobility solutions. Further, measures to encourage the scrappage of old vehicles through the budget will also boost demand for newer generation vehicles and eliminate the polluting ones.

Siddhartha Khemka, head of research of wealth management at Motilal Oswal Financial Services, believes that Indian equities may remain under pressure till union budget announcements and the US Federal Reserve rate cut.

“Indian equities are expected to remain under pressure, ahead of Federal Reserve’s rate decision and commentary on Wednesday and the union budget announcements on Saturday,” he said

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