India Budget 2025: This budget includes significant adjustments to the tax slabs as well as modifications to the personal income tax structures and the expansion of the upper limit of exemptions.
Budget Expectations 2025: On February 1, Finance Minister Nirmala Sitharaman will unveil the first comprehensive budget of the Modi administration’s third term. The middle class and industry have high expectations for this budget given the downturn in the nation’s economic growth and the drop in demand and consumption. Under such circumstances, small-case managers think that significant announcements regarding tax reforms through tax modifications and incentives can be made in this budget. They also think that the government can borrow more money from the market in the upcoming fiscal year.
There could be significant changes to the tax slab.
The Managers Budget 2025-26 Survey Report, published by Smallcase, outlines expectations for the overall budget. Big announcements on tax reforms through tax changes and incentives can be made in this budget, according to a survey conducted by the Smallcase platform with 100 managers. Smallcase managers think that significant changes in the tax slabs can be observed in this budget, along with adjustments to the personal income tax structures and an increase in the upper limit of exemptions. Smallcase managers believe that these announcements will boost consumption in addition to improving disposable income.
Budget cuts will be made to subsidies!
According to the study, the government would prioritize infrastructure and long-term growth through capital expenditure-driven investments and drastically reduce politically motivated subsidies. According to Smallcase Managers, this budget may see a significant rise in funding for the defense and infrastructure sectors in order to boost economic and geopolitical power. A lot of attention may be paid to renewable energy. Apart from this, the budget will place a lot of emphasis on the transportation, logistics, health, and education sectors. Focusing on innovation and investing in digital assets and infrastructure will help us compete more effectively in the global market.
The budget shapes economic development.
Vasant Kamath, the founder and CEO of Smallcase, commented on the survey, saying, “The Union Budget is a significant event that influences India’s economic progress for years to come. The aspirations of industry stakeholders are reflected in our managers poll, which emphasizes a strong emphasis on stability, digital transformation, and reforms that increase growth. Aside from this, some Smallcase managers think that because to shifting governmental regulations and worldwide trends, the budget might concentrate on e-commerce, aerospace and defense, electronics manufacturing, and green energy. Many think that after the current correction, investors will once more be drawn to capital expenditure-driven industries like infrastructure, defense, railroads, and power. It is evident that semiconductors and electronics production are becoming increasingly important.
