
Finance Minister Nirmala Sitharaman will present the Union Budget 2025-26 on 1st February 2025. It will be her 8th consecutive budget presentation. In this article, we will look at sector-wise expectations from the budget 2025.
Sector-Wise Expectations from Union Budget 2025
Healthcare Sector
The healthcare sector expects a significant boost in funding, potentially increasing the allocation to 5% of GDP to address longstanding gaps. Upgrading district hospitals and improving rural healthcare infrastructure remain key priorities. Enhanced support for AI-based diagnostics could revolutionize early detection, particularly for chronic diseases like cancer. Similarly, investments in oncology research and specialized geriatric care are anticipated to address India's aging population.
Integrating mental health services into primary care could improve access and reduce stigma. Initiatives to expand telemedicine and healthcare digitization, along with public-private partnerships to establish state-of-the-art facilities, could further enhance healthcare delivery, particularly in underserved regions.
Agriculture and Rural Development
The agriculture sector is hopeful for reforms addressing crop pricing stability through advanced Minimum Support Price (MSP) mechanisms. Increased subsidies for fertilizers and expansion of irrigation projects are expected to mitigate input costs and enhance yield. Promoting agri-tech adoption, including precision farming tools and IoT-enabled solutions, could transform productivity and sustainability.
Support for organic farming and initiatives to improve post-harvest management, such as better storage and logistics, would address wastage concerns. Expansion of the Kisan Credit Card scheme to include more farmers and extending it to cover allied sectors like animal husbandry and fisheries are also anticipated.
Retail Sector Expectations
The retail sector is eyeing measures to stimulate consumption with evolving consumer behavior. Enhanced tax exemptions for individuals could boost disposable income, while reduced GST rates on essential goods may ease household budgets.
The sector also expects incentives for adopting sustainable practices, such as subsidies for eco-friendly packaging and tax benefits for energy-efficient operations. The development of a National Retail Policy could provide a cohesive framework to streamline compliance, logistics, and e-commerce integration, with a focus on improving retail penetration in Tier 2 and Tier 3 cities.
Green Energy and EV Adoption
India's push toward achieving net-zero emissions by 2070 has heightened expectations for significant investments in renewable energy. Budget 2025-26 is likely to include expanded funding for solar and wind energy projects, with a focus on scaling green hydrogen initiatives.
Simplified GST structures for electric vehicles (EVs) and tax incentives for battery manufacturing and charging infrastructure are anticipated to accelerate EV adoption. Additionally, a push for the Green Bond market and the introduction of a carbon credit trading framework could incentivize industries to transition to cleaner technologies and attract sustainable investments.
Real Estate and Housing
The real estate sector expects tax reforms for housing loans, such as raising the cap on interest deductions, to make homeownership more affordable. Incentives for affordable housing projects, including reduced GST on construction materials like cement and steel, could address cost barriers.
Streamlining approval processes for affordable housing projects and launching urban housing initiatives targeting lower- and middle-income groups are also on the agenda. Incentivizing the development of rental housing and promoting public-private partnerships for urban housing could help address supply shortages and meet the growing demand in metropolitan areas.
Read: Role of Real Sector in India's GDP
Before you go
We will have to wait a little over a week to see how many of these expectations turn into reality. But, these expectations reflect a cross-sectoral hope for progressive measures in Budget 2025-26 and it will drive sustainable growth, enhance productivity, and improve overall quality of life.