Budget 2025 Highlights (Expectations)

The Union Budget 2025 (Budget 2025 Highlights), presented by Finance Minister Nirmala Sitharaman (Budget 2025 date) on February 1, 2025, has been eagerly anticipated by citizens and industry stakeholders alike. This budget, themed around ‘Amrit Kaal’ and ‘Viksit Bharat,’ aims to foster growth and development across various sectors to make India a developed nation. Let’s delve into the key highlights and expectations from this budget. You can visit to know what reality is (Indian Budget 2025: A Comprehensive Overview).

Tax Reforms: Budget 2025 Highlights

One of the major expectations from Budget 2025 (Budget 2025 Highlights) was around tax reforms. The government has made conscious efforts over the past few years to make the income slabs and corresponding tax rates more lucrative for taxpayers opting for the new tax regime. In Budget 2023 and the interim Budget of 2024, the tax slabs were altered, and this trend is expected to continue. The new tax regime has seen a significant uptake, with 72% of taxpayers opting for it compared to 28% who chose the old tax regime.

GST Rate Rationalisation: (Budget 2025 Highlights)

Industry stakeholders and experts have been looking forward to measures around GST rate rationalization. The aim is to simplify the tax structure and reduce the burden on taxpayers. This move is expected to boost consumption and help maintain fiscal consolidation.

Infrastructure Development: (Budget 2025 Highlights)

A significant focus of Budget 2025 (Budget 2025 Highlights) is on infrastructure development. The government plans to front-load capital expenditure (capex) with a sharp focus on infrastructure, healthcare, and the electric vehicle (EV) sector. This investment is expected to generate employment opportunities and boost consumption.

Healthcare Sector: (Budget 2025 Highlights)

The healthcare sector is set to receive a boost with increased spending on both physical and digital infrastructure. The budget aims to establish a sustainable and resilient framework for the future, aligning fiscal policies with long-term health objectives.

Education Sector:

The education sector is also a priority, with a renewed emphasis on higher education. The budget proposes greater fiscal allocation towards innovation-driven research, skill-based learning, and global partnerships to enhance the competitiveness of Indian universities on a global scale.

Aviation Industry:

The Indian aviation industry is expected to benefit from budget support for initiatives like the UDAN scheme, airport expansion, sustainable fuel technology, and the Maintenance, Repair, and Operations (MRO) segment. These measures aim to improve connectivity and sustainability in the sector.

Homeowners and Real Estate:

The budget proposes incentives for homeowners, including an increase in the deduction limit on home loan interest under Section 24(b) from ₹2 lakhs to ₹3 lakhs. This move is expected to promote homeownership and real estate development.

Corporate Tax Adjustments: (Budget 2025 Highlights)

To support the ‘Make in India’ initiative, the budget includes adjustments to corporate tax rates. The concessional tax rate of 15% under Section 115BAB for new manufacturing units is extended to attract more investments in manufacturing and drive economic growth.

Research and Development (R&D):

The budget introduces new production-linked incentives for R&D activities. These incentives include additional deductions for specified R&D expenditures based on criteria such as increased turnover, employment generation, or capital investment.

Probable effect on the share market

The Union Budget 2025 has generated significant buzz in the stock market, with investors keenly watching for measures that could impact market sentiment. Key expectations include potential tax reforms, such as adjustments to capital gains tax and Securities Transaction Tax (STT), which could influence investor behavior. Additionally, increased allocations to infrastructure, healthcare, and technology sectors are anticipated to drive economic growth and boost related stocks. The budget’s focus on fiscal consolidation and measures to enhance consumption is also expected to play a crucial role in shaping market trends. Overall, the market is optimistic about the budget’s potential to create a conducive environment for investment and growth.

Conclusion:

Budget 2025 (Budget 2025 Highlights) is a comprehensive plan aimed at fostering economic growth, improving infrastructure, and enhancing the quality of life for citizens. With a focus on tax reforms, infrastructure development, healthcare, education, and the aviation industry, the budget sets the stage for a prosperous future. As the government continues to implement these measures, the hope is that they will lead to a more robust and resilient economy.