Union Budget Preview 2025-26 - Key Insights & Sectoral Expectations by Asit C. Mehta Investment Intermediates Ltd
Strategic Priorities:
Economic Revitalization:
Projected GDP growth of 6.4% for FY25.
Tax reforms to boost consumption, including realigning income tax slabs and increasing disposable income.
Continued focus on infrastructure, renewable energy, and technological advancements.
Employment and Skilling:
To address the challenge of employment generation, the government’s approach will include:
Expansion of programs like PMKVY- Pradhan Mantri Kaushal Vikas Yojana and targeted incentives for startups and MSMEs.
Efforts to align skill development with industry needs, particularly in textiles, tourism, and advanced technologies.
Agriculture & Rural Development:
Agriculture and rural development will continue to receive focused attention with measures to:
Enhanced allocations for PM-Kisan, irrigation, and storage infrastructure.
Promotion of sustainable farming and digital agriculture practices.
Sectoral Expectations:
Automotive: GST reduction on EVs, expansion of PLI schemes, and incentives for vehicle scrapping.
Healthcare: Increased funding for Ayushman Bharat, tax relief on medical equipment, and R&D in AI-driven healthcare solutions.
Real Estate: Higher tax benefits for affordable housing, including increased home loan deductions.
Renewable Energy: Support for solar, wind, and green hydrogen projects, along with carbon market development.
Telecom & Digital Infrastructure: Incentives for 5G rollout, rural connectivity, and cybersecurity initiatives.
Infrastructure & Railways: Substantial budgetary increases for roads, railways, and smart urban development.
Taxation Reforms:
The middle class anticipates relief through:
Relief for middle-class taxpayers with higher exemption limits and standard deductions.
Simplified tax processes for MSMEs and startups to drive innovation and growth.
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