Union Budget 2025 Expectations

By Shailendra Singh

Updated on 31 Jan 2025, 15:41 IST

Union Finance Minister Nirmala Sitharaman is set to present the Union Budget 2025 on Feb 01. This will be the first budget of the newly elected NDA government, led by Prime Minister Narendra Modi. Expectations are high among the common man, middle class, and salaried individuals for significant income tax relief and economic reforms. Stay updated with our live coverage of the Economic Survey to understand how these expectations will shape the future of the Indian economy.

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1. Tax Reforms:

Income Tax Relief: There is anticipation of income tax cuts, particularly for individuals earning up to ₹15 lakh annually, aiming to boost disposable income and stimulate consumption.
Standard Deduction Increase: A hike in the standard deduction limit under both the old and new tax regimes is expected, potentially enhancing taxpayers' take-home pay.

2. Economic Growth and Fiscal Policy:

GDP Growth Projection: The Economic Survey projects India's GDP growth at 6.3% to 6.8% for the fiscal year 2025-26, indicating a positive outlook despite current economic challenges.
Fiscal Deficit Management: The government plans to maintain a fiscal deficit of 4.5% of GDP, focusing on fiscal consolidation while addressing economic slowdown concerns.

Also Check: 50 GK Questions on Union Budget & Economic Survey

3. Infrastructure and Manufacturing:

Capital Expenditure (Capex): An increase in capital expenditure is anticipated to stimulate economic growth, with a focus on infrastructure development.
Manufacturing Incentives: Direct subsidies and tax benefits are expected to encourage large-scale manufacturing, with an emphasis on research and development to drive innovation.

4. Agriculture and Rural Development:

Support for Rural Incomes: Enhanced government schemes aimed at boosting rural incomes are anticipated, including incentives for climate-resilient agriculture and water management.

Also Check: GDP of India

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5. Technology and Innovation:

Artificial Intelligence (AI) Initiatives: Experts suggest that the budget could provide a critical opportunity for the government to build on its progress in AI, fostering innovation and technological advancement.

6. Healthcare:

GST Reduction on Healthcare: A reduction in GST on health insurance, healthcare products, and services is expected to make essential care more affordable.

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FAQs on Union Budget 2025 Expectations

What is the date of Budget 2025?

The Union Budget for India in 2025 is expected to be presented on February 1, 2025.

What is the new tax regime in 2025?

The new tax regime in 2025 will likely offer reduced tax rates with fewer exemptions and deductions compared to the old tax regime. It is designed to simplify the tax structure

What is the date of the Union Budget in India?

The Union Budget of India is typically presented every year on February 1st. For 2025, it will be on February 1, 2025.

Which sectors will benefit from the Budget in 2025?

Sectors like infrastructure, healthcare, education, railways, and agriculture are expected to benefit from the 2025 budget. The government may focus on improving growth in these areas

Which stocks to buy before Union Budget 2025?

Investors might want to consider stocks from sectors likely to get a boost from the budget, such as infrastructure, railways, renewable energy, and defense. However, it's important to do your research or consult a financial advisor.

Which railway stock is best to buy?

The best railway stock to buy depends on factors such as financial health, growth prospects, and government initiatives. Companies like IRCTC, Indian Railway Catering and Tourism Corporation, and Indian Railways related stocks could see growth based on budget announcements.

What is the future of railway stocks?

The future of railway stocks could look positive if the government increases investment in rail infrastructure and modernization. Railway stocks may benefit from budget allocations aimed at improving the country's transport network

Which sector will be focused on in Budget 2025?

The infrastructure, healthcare, education, technology, and railway sectors are expected to be the focus in Budget 2025. There may be a special emphasis on increasing employment and improving public services.

What to expect in Budget 2025 in India?

In Budget 2025, expect policies focusing on economic growth, infrastructure development, job creation, support for SMEs, and potentially new tax reforms. The government may also introduce measures to encourage investment and boost rural development.

Is the new tax regime slab 2025-26?

Yes, the new tax regime for 2025-26 is expected to have simplified slabs with lower tax rates, though exact details will be clarified when the budget is presented.

Is income tax change for FY 2024-2025?

Changes in income tax rates or exemptions for FY 2024-2025 will be announced in the Union Budget for 2025. Expect updates to be made regarding tax brackets and possible changes to deductions.

Will the old tax regime be discontinued in 2025?

As of now, the old tax regime is still in place, and it’s uncertain if it will be discontinued in 2025. The government may offer incentives for taxpayers to shift to the new tax regime, but the old regime may still remain an option.

1. Tax Reforms:

Income Tax Relief: There is anticipation of income tax cuts, particularly for individuals earning up to ₹15 lakh annually, aiming to boost disposable income and stimulate consumption.

Standard Deduction Increase: A hike in the standard deduction limit under both the old and new tax regimes is expected, potentially enhancing taxpayers' take-home pay.

2. Economic Growth and Fiscal Policy:

GDP Growth Projection: The Economic Survey projects India's GDP growth at 6.3% to 6.8% for the fiscal year 2025-26, indicating a positive outlook despite current economic challenges.

Fiscal Deficit Management: The government plans to maintain a fiscal deficit of 4.5% of GDP, focusing on fiscal consolidation while addressing economic slowdown concerns.

3. Infrastructure and Manufacturing:

Capital Expenditure (Capex): An increase in capital expenditure is anticipated to stimulate economic growth, with a focus on infrastructure development.

Manufacturing Incentives: Direct subsidies and tax benefits are expected to encourage large-scale manufacturing, with an emphasis on research and development to drive innovation.