Budget 2025 Expectations: Sectorwise Insights & Market Trends

Explore key industry insights to identify emerging trends and market movements.

The exponential growth of the Indian economy can be sustained through even sectorwise progress. The Union Budget 2025 formulates policies targeting each sector. These policies and procedures aim to enhance or maintain their performance.

This budgetary procedure often gives investors and traders insights into various industries, resulting in prudent investment decisions. This blog explores the sectorwise Union Budget 2025 expectations to equip readers with early trends and anticipations.

Pharmaceutical

India’s pharmaceutical sector is significant on a worldwide scale, sending goods to over 200 nations .

The pharma companies are looking forward to the Budget 2025 for a significant push to the sector. The healthcare sector and public policy experts have long anticipated that government spending will reach 2.5%-3% of GDP. Following are the most talked about Union Budget 2025 expectations.

Budget 2025 Expectations: Sectorwise Insights & Market Trends
  • Experts and analysts believe that the Government might increase research and development allocation in the pharma sector to promote competitiveness and boost novel research.
  • The government may look at creating a uniform regulatory body for pharmaceuticals and medical devices, promoting ease of business.
  • Experts agree that the pharma industry should be improved to enhance medical tourism which is anticipated to reach USD 13billion by 2026.
  • The Union Budget 2025 might address the 50-month-long patent approval process and bring it down to meet the international norm of 30 months.
  • The Budget 2025 is anticipated to target universal healthcare through social schemes. An extra 1.2 trillion in healthcare infrastructure over the upcoming five years, according to a study by the NITI Aayog is necessary to achieve universal healthcare.
  • Experts have voiced the need to dedicate greater attention to preventive healthcare.
  • PLI schemes can be used to increase domestic production of usually imported products like API (Active Pharmaceutical Ingredients).

FMCG

The fast-moving consumer goods sector has been under stress due to falling demands, caused by decreasing disposable income and the purchasing power of consumers. Listed below are the Union Budget 2025 expectations for the FMCG sector.

The Union Budget 2025 formulates policies targeting each sector. These policies and procedures aim to enhance or maintain their performance.
  • According to experts, lowering income tax will boost disposable income and raise demand for FMCG. A 6% rise in consumer spending on FMCG and other needs may result from a 5-7% increase in middle-class people’s disposable income, which would have a 0.7% impact on GDP growth.
  • Pre-budget projections suggest that GST and other taxes will be lowered, resulting in a boost to demand. When income stays the same, goods will become more inexpensive due to reductions in these charges.
  • The FMCG sector has expressed concern against raising the National Calamity Contingent Duty (NCCD) or excise taxes on cigarettes and tobacco products, citing damage to cigarette manufacturers.
  • Union Budget expectations claim that initiatives and increased funding to schemes like MANREGA can be used to increase job opportunities. It will boost disposable income and demand for FMCG.
  • PLI schemes might be strengthened to promote ‘Make in India’.
  • ‘Shrinkflation’ is caused by reducing product quantity due to an increase in input costs. The Budget 2025 might target rising input prices.
  • Lowering the cost of financing and digital support to MSMEs is also expected in the Union Budget 2025.

Real estate and housing

Amidst the Budget 2025 expectations, real estate industry experts and stakeholders have been raising concerns regarding the rising prices of land, inputs and housing. Listed below are the most anticipated union budget 2025 expectations.

  • Experts have voiced the need for a combined deduction of ₹5 lakhs for both home loan interest and principal. Currently, Section 80C allows for a tax deduction for the principal repayment of house loans. On the other hand, Section 24(b) enables a tax deduction for interest component payments up to INR 2 lakh.
  • Budget 2025 expectations have called for raising the affordable housing price ceiling for metro areas from ₹45 lahks to ₹70 lakhs and for smaller cities to ₹50 lahks to keep up with growing expenses.
  • Budget 2025 may simplify and consolidate GST rates to lessen complexity and the financial strain on developers.
  • Stamp duty rates are presently as high as 8–9% in some areas, which puts a heavy financial strain on Indian homeowners. To increase housing demand and make property ownership more accessible, these prices must be rationalised in all states, especially for residences up to ₹1.50 crore.
  • It is anticipated that a single window clearance system will significantly cut down on project development delays by giving developers access to a single platform for obtaining all necessary no-objection certifications, approvals, and permissions.
  • Experts recommend making investments easier, lowering taxes on real estate transactions, and streamlining repatriation procedures to motivate NRIs to engage in Indian real estate.
  • The government may use legislative assistance and incentives to encourage the construction of campuses with reasonably priced rental accommodation.

Agriculture

11% of the world’s agricultural output comes from India. However, it only accounts for a small portion of the total food product exports, between 2-3%, and much less in the processed food category, between 1-2%. Listed below are the Budget 2025 expectations.

The Budget 2025 might target agri-tech for faster adoption of technology in this industry. It will enable private companies to swiftly validate and develop innovative solutions for farmers.
  • An all-inclusive yield enhancement program might be implemented. For instance, input availability, technically advanced machinery and quality packaging might be targeted to improve yield.
  • The Budget 2025 might target agri-tech for faster adoption of technology in this industry. It will enable private companies to swiftly validate and develop innovative solutions for farmers.

EV and green sector

By 2033, the global market for electronic vehicles is projected to grow to a value of USD 2,108.80 billion. The Union Budget 2025 is expected to create provisions necessary for the growth of this sector that can enable the country to achieve its net zero emission targets. Listed below are the Budget 2025 expectations.

  • The EV industry anticipates that the FAME and PM E-DRIVE programs will be maintained and implemented effectively. The goal of these plans is to promote electronic mobility.
  • The industry anticipates that the budget will significantly contribute to the development and construction of charging stations.
  • Currently, EVs are subject to a 5% GST charge, while inputs used in EV manufacture are subject to a 28% tax. With a constant 5% tax on EVs, components, and charging infrastructure, Budget 2025 may simplify the GST system. Additionally, the sector expects the GST on batteries to drop from 18% to 5%.
  • EV manufacturers suggest reducing interest rates on EV loans and implementing green financing can have a big influence on accelerating adoption.

Conclusion

The Budget 2025 expectations have been significantly positive. Sectorwise formulation of budget policies will help soothe industrial disparities and promote expansions of sluggish industries. It will also help sustain the growing and futuristic industries like EVs. The Union Budget 2025 can inject the Indian economy with the necessary adrenaline to chase faster growth. Industry experts have voiced the need to aid Indian industries with a competitive advantage, resulting in better performance in international markets.

DISCLAIMER: This article is not meant to be giving financial advice. Please seek a registered financial advisor for any investments.

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