With five days left until the presentation of the Budget for the 2025-26 financial year on February 1, all sectors and departments eagerly await announcements, especially regarding direct taxes. The budget will affect product prices and the service industry. The nation’s attention is on Finance Minister Nirmala Sitharaman’s upcoming address, with expectations that inflation, employment, and economic growth will be key topics.
Last year’s budget focused on public infrastructure and sustainability, and this year, the government may introduce provisions for essential sectors such as railways, aviation, healthcare, hospitality, data centers, and manufacturing.
Petrol and Diesel: In the previous year, the government allocated Rs 1.19 trillion to the Ministry of Petroleum and Natural Gas to enhance energy infrastructure, though it reduced the petroleum subsidy. This year, the Confederation of Indian Industry (CII) has urged the government to lower the excise duty on fuel. If accepted, this could reduce petrol and diesel prices, which would lower transportation and logistics costs and, consequently, product prices.
Health Sector: Significant changes are anticipated in the pharmaceutical sector. Companies like Biocon have called for a tax waiver on drugs used for treating cancer and rare diseases. If implemented, this could make treatments for serious illnesses more affordable and accessible to a larger population.
Electronics and Textile Sector: Last year, Rs 15,500 crore was allocated to boost electronics manufacturing, particularly for semiconductors and mobile phones. This year, the government may continue efforts to promote self-reliance in this sector, potentially lowering the prices of smartphones and other electronic goods. The textile and garment industry is also expected to receive financial support and tariff reductions, which could make Indian textiles more competitive globally while reducing domestic prices.
Income Tax Relief: There are expectations that the government will modify the income tax slab to provide relief to the middle class. The limit for Section 80C, which allows for tax-saving investments, may be raised from Rs 1.5 lakh to Rs 3 lakh, offering taxpayers more opportunities to save.
Railways and Infrastructure: Special attention is expected to be given to the modernization of railways. Reports suggest that the government may prioritize railway upgrades over road transport, which would benefit the logistics and manufacturing sectors, potentially improving overall infrastructure efficiency.
As the countdown to the budget continues, industries and citizens alike are watching closely for any changes that will affect both the economic landscape and daily life.