Union Budget 2025: What Industry Experts are Expecting

The union budget 2025-26 is upon us, and numerous experts have given their take on what they think it can be and their inputs regarding what would be good for the economy in the short and long run.

"As we approach the Union Budget 2025-26, there is great anticipation for policies that can shape a forward-looking roadmap for India's economic growth. This Budget has the potential to catalyze infrastructure development, support the transition to sustainable energy solutions, and enhance the competitiveness of domestic manufacturing under initiatives like 'Make in India.' The electrical and electronics sector plays a critical role in driving safety, efficiency, and sustainability across residential, commercial, and industrial applications. Measures that simplify tariff structures, expand the scope of Production Linked Incentive (PLI) schemes, and encourage investment in energy-efficient infrastructure will be instrumental in strengthening India's position as a global manufacturing hub. We are optimistic that the Budget will prioritize these areas, creating a robust foundation for innovation, economic growth, and environmental sustainability. Such initiatives will pave the way for a more resilient and self-reliant India, benefiting industries and consumers alike."

– Rajesh Jain, CFO at RR Kabel

“The upcoming Union Budget, for the year 2025–26 presents a chance to align priorities with the evolving pharmaceutical landscape in India. We are eager to see how the budget aims to boost the industry through policy adjustments that play a vital role in fostering sustainable growth and ensuring widespread availability of essential medications nationwide. Moreover, it is crucial for the government to prioritize boosting investments in research and development (R&D). With strategies and initiatives in place India has the potential to solidify its position as a hub, for innovative products and environmentally friendly pharmaceutical production.”

-Nirav Mehta, Managing Director & CEO, CORONA Remedies

“Reducing logistics costs by simplifying regulations and making compliances easier, remains a key lever for India to become even more competitive globally. The push for infrastructure development across modes is also critical for the economy as well as to support growth expectations. This year, we see more push from the government to set up e-commerce export hubs that aim to support MSMEs as well. We look forward to collaborating further with the government to simplify tax structures and customs procedures for exporters. Sustainability is an emerging focus area for all businesses, especially in international trade, and we hope that we can collaborate on these aspects as well.”

-R.S Subramanian, SVP South Asia, DHL Express

“As we approach the Union Budget, we remain optimistic about its potential to drive growth across key sectors, including infrastructure, energy, and construction. The government’s continued focus on energy and infrastructure is expected to provide a strong boost to the EPC industry. Investments in green energy initiatives will further enhance India’s competitiveness globally by moving towards net zero carbon emissions. At KPIL, we are aligned with these national priorities and committed to contributing meaningfully by delivering innovative, sustainable, and high-quality solutions across our projects. With a positive outlook for the year, we look forward to working collaboratively with all stakeholders to achieve India’s long-term ‘Viksit Bharat 2047’ development goals."

-Amit Uplenchwar, Director, KPIL

“Investments in the logistics sector can support India’s trade goals, enhance economic efficiency and encourage MSMEs to scale up.

To further strengthen India’s position in global markets, achieve the objective of the National Logistics policy, and reach the export target of US$2 trillion by 2030, the thrust should be to simplify export compliance procedures and reduce regulatory costs for logistics players.

We hope to see measures to expedite e-commerce clearances and simplify cross-border online transactions. There needs to be increased budget allocation for the healthcare sector, which relies heavily on a robust and integrated logistics network. This will ensure efficient delivery of medical supplies and increase the sector’s overall effectiveness to cater to pharmaceutical and patient requirements.

In the earlier budgets, the government announced programs and initiatives to support MSMEs, and we expect that to continue. We hope MSMEs, especially in the tier 2-3 cities, are further empowered with capital and technology adoption for them to compete in global markets.”

-Gregory Goba Ble, Head of UPS India and Director of MOVIN Express

 Tata Consulting Engineers (TCE) views the FY 2026 Budget as a key opportunity to advance India's infrastructure, energy transition, and technological innovation. We expect continued capital investment in water supply, metro systems, and climate-resilient infrastructure, along with support for Smart Cities, Transit-Oriented Development, and affordable housing.

A stronger push for renewable energy, including offshore wind, green hydrogen, and small modular reactors (SMRs), coupled with grid expansion, viability gap funding, and single-window approvals, will accelerate the energy transition. Strengthening nuclear energy through Bharat Small Reactors (BSR) and a contingency reserve for disaster management will bolster long-term energy security.

Modernising ports, promoting shipbuilding, and developing industrial clusters for semiconductors, EV batteries, and clean technologies will boost self-reliance and export competitiveness. Coastal industrialisation and inland logistics hubs will further drive efficiency and reduce costs. Smart infrastructure, digital twins, AI-driven mining, and integrated water management will be crucial for sustainability.

Skill development, gender diversity in engineering, and incentives for public-private partnerships will help bridge workforce gaps. Enhanced climate finance, including green bonds, R&D funding for energy storage, and low-interest loans for critical projects, will support India's journey towards decarbonisation, innovation, and global leadership in engineering and consultancy.

-Amit Sharma, Managing Director & CEO, Tata Consulting Engineers

A strong focus on aligning policies to improve the manufacturing capability while also taking care of the existing challenges to catalyze growth in this sector - like correcting the inverted duty structures in automotive, tax benefits for EV investments, more allocation in PLI schemes for automotive, more investments in charging infrastructure. In addition to promoting domestic manufacturing this will also aid FDI inflow. To accelerate India’s journey towards becoming a global hub for automotive technology, we must have a conducive policy environment while addressing pressing sustainability challenges and elevating road safety standards. We are eager to support the Indian government in this shared vision for mobility. Together, we can create a safer, more efficient, and environmentally responsible future of mobility.”

-Prashanth Doreswamy, President and CEO, Continental India

“As we stand at the cusp of a transformative era in commercial transportation, the upcoming Union Budget presents a pivotal opportunity to accelerate India’s transition toward sustainable mobility. Speaking at the Bharat Mobility Summit, Prime Minister Narendra Modi highlighted the importance of green mobility as a cornerstone of India’s sustainable development journey. LNG, with its ability to drastically reduce carbon emissions, is not merely a fuel alternative but a key enabler of a cleaner, greener logistics ecosystem. Together with advancements in EV technology, LNG and EVs represent the future of commercial trucking—a future that harmonizes environmental stewardship with operational efficiency.

To realize this vision, the government must prioritize investments in LNG refuelling infrastructure, EV charging networks, and fiscal incentives to drive adoption. These steps will position India as a global leader in sustainable logistics, align with net-zero goals, and strengthen the competitiveness of India’s supply chain on the world stage.”

- Anirudh Bhuwalka, CEO of Blue Energy Motors

“The Union Budget 2025 presents a significant opportunity to accelerate India’s renewable energy ambitions and achieve the target of 500 GW by 2030. This requires a strong focus on domestic manufacturing, innovation, and advanced technologies like Battery Energy Storage Systems (BESS).

Goldi Solar urges the government to continue devising policies that enhance global competitiveness, foster self-sufficient local manufacturing, and support the expansion of infrastructure needed for manufacturing excellence. Key measures such as reducing GST on renewable equipment, expanding initiatives like the ‘Green Credit Program,’ and increasing R&D funding for solar technologies are crucial to making clean energy more accessible and affordable.

Further, investments in transmission infrastructure and strengthening public-private partnerships will further ensure grid stability and efficiency. Goldi Solar remains committed to driving this vision through innovation and manufacturing excellence, contributing to India’s clean energy future.”

-Capt. Ishver Dholakiya, Managing Director and Founder, Goldi Solar

India is currently at the cusp of becoming a major global semiconductor hub. As we anticipate the 2025 Union Budget, I must say that it is also going to be a key inflection point for the industry at large. To take a significant step forward, it is imperative for India’s semiconductor value chain to: Make strategic investments in domestic manufacturing capabilities, expand R&D funding, and drive sustainable innovation across.

India must also develop a resilient supply chain as well as a skilled workforce. It is very crucial for the industry, and to make this happen, there must be collaborations with premier universities and institutions like IITs and NITs to create specialized curricula tailored to semiconductor technologies. This will address the industry's rising demand for talent.

-Ajit Manocha, President & CEO, SEMI

“The sugar industry is optimistic that Budget 2025 will address key challenges and pave the way for sustainable growth. A critical area of focus is the long-overdue revision of the Minimum Selling Price (MSP) for sugar, which has remained stagnant at Rs 31 per kg since 2019. Rising production costs and the increasing Fair and Remunerative Price (FRP) for sugarcane necessitate a revision to Rs 39.14 per kg. Such a move will not only stabilize the financial health of sugar mills but also ensure fair and consistent returns for farmers, creating a balanced and resilient ecosystem.

Equally important is advancing India’s ethanol blending goals as the country approaches the E20 target by 2025. Achieving this milestone requires a robust roadmap, including continued policy support, technological innovation, and infrastructure expansion. Meeting the 20% blending target by 2025 will require approximately 1,016 crore liters of ethanol, rising to 1,350 crore liters when accounting for other uses.

-Tarun Sawhney, Vice Chairman and Managing Director, TEIL