“I pray to Goddess Lakshmi to shower the poor and middle class with blessings,” Honorable PM Modi stated.
The PM said, “This is the first complete budget of my third term. I can confidently say that in 2047, when India will complete 100 years of Independence, India will fulfil its aim of Viksit Bharat and this budget will give new energy and hope to the nation.. and the 140 crore people will fulfil this vow.”
This Union Budget 2025-26 is crucial for boosting India’s slower economic growth as well as helping middle-class people and salaried taxpayers to have a sigh of relief. What will be decided in the Budget 2025 will be widely affected in the capital market. Here is what you can expect from the new Union Budget 2025 of Finance Minister Smt. Sitharaman.
Budget 2025 Expectation: For Indian Railways
- For Indian Railways, here is what people are expecting from the Financial Minister Nirmala Sitharaman in the Union Budget 2025.
- The first thing people are expecting from the 2025 budget is to get private companies involved in the railways, relieving the government to only depend on the budget for future development.
- Demand to increase the Cargo for rail, so that sectors like e-commerce, FMCG, and automobile segments, can move easily through rail transport.
- Proper rules and strategies are needed to help railways grow better, as the existing railway structure makes it difficult to make changes.
- Enhance the Production-Linked Incentive scheme to allow the manufacturing of railway parts in India, which allows to enter the global rail market and support innovation.
Budget 2025 Expectations: GST Reduction
As we are getting close to the Budget 2025, one of the crucial demands individuals are expecting from this Budget is a reduction in GST (Goods and Services Tax). Currently, the GST rates in India for most of the consumer products are 18% making it hard for consumers and businesses to choose eco-friendly options and have to go for plastic options. A reduction of GST to 5% is what people are expecting from FM, allowing businesses and consumers to choose eco-friendly options from plastic, influencing a cleaner environment.
Infrastructure Growth
Infrastructure expenditure is one of the crucial growth in the economy and development. In the newly announced Union Budget of 2025, we are expecting to see potential growth in the infrastructure sectors like Railways, roads, defense, power, and data centers. In the new budget of 2025, we are hoping to see exciting investment across all the sectors expecting to drive potential long-term growth. According to the sources, we expect an infrastructure budget of ₹13 between 15 lakh crore, approximately targeting ₹14 lakh crore, the amount needed to boost the infrastructure market.
For Education
Through the Union Budget 2025, the individuals are hoping to see a strong focus on changes in the education sector. Currently, the 18% GST on online education and skilling is quite high, especially when compared to countries like China, where the tax is only 6%. We are eager to see a reduction in the GST on education services, expanding national training platforms, better innovation, and establishing digital infrastructure providing accessibility of education to the young people in India and filling the gap between technology and education.
IT Sector & Electronics
From the upcoming Budget of 2025-26, pioneers in the Information Technology and Electronics sector are expecting to get funding to strengthen India’s Technology sector. As Finance Minister Nirmala Sitharaman will be allocating the 2025 budget on February 1, the leaders are expecting to offer investments in semiconductor manufacturing, and funding for AI artificial intelligence research and development with hopes of seeing new opportunities and educational growth in India.
Fed Rates Announcements
According to the sources, as of now, the Fed rate has been decided at the current level, however on February 1, Union Budget 2025 will be announced through which, the Fed rate will also simultaneously change. For the past many months U.S. President, Donald Trump pushed for the lowering of the Fed rate, however, the Fed Funds Rate Committee kept the Fed rate at its current state. If the Fed rate goes high, it will potentially influence the Indian stock market to be stable or move up. Individuals are expected that the Fed rate should remain low or stable which would ease concerns about interest rates and its now confirmed!
