Advertisment

Pre-budget 2025: Mixed GST Expectations, Industry Hopes, and the Push for Sustainability!

From differing Tax demands to supporting digital infrastructure and sustainability initiatives, the 2025 Union Budget holds significant potential to shape India’s economic trajectory. Let's see what expectations experts from various industries have on this budget!

author-image
Hitanshu Bhatt
New Update
Budget 2025 expectations

As India approaches the Union Budget 2025, businesses across industries are looking for key reforms that could drive growth, enhance sustainability, and streamline taxation. From GST rate revisions to climate policies, industry leaders are hoping for a budget that balances economic growth with long-term resilience.  

GST: Stability or Change?

One of the most anticipated aspects of this year’s budget is potential changes in GST rates, especially for the retail and food service sectors. Satyen Momaya, CEO of Celio India, emphasises the importance of maintaining the current GST slabs for apparel priced above ₹1,000. “Stability in GST rates would help manage pricing and inflationary pressures, giving businesses a clear roadmap while ensuring predictable costs for consumers,” he says.  

Budget 2025 GST Rates

The food and beverage industry, on the other hand, is pushing for relief. Vikesh Shah, Founder of 99 Pancakes, believes a reduction in GST on dining services and tax relief on sustainable packaging could be game-changers. “With rising operational costs, measures like these would ease financial strain and encourage sustainability in packaging,” he explains. Simranjeet Singh, Director at CYK Hospitalities, echoes similar sentiments, advocating for GST rate cuts on small eateries and subsidies on eco-friendly packaging.  

Meanwhile, in the beauty and skincare industry, Shrishti Yadav and Shubham Godara, Co-founders of SCINQ Neurocosmetics, highlight the challenges of multiple tax slabs. “A streamlined GST structure would simplify operations and reduce costs, benefiting both businesses and consumers,” they say. On the counterpart, Vinesh Gupta, General Manager, The Den Hotel, Bengaluru feels the current GST slabs are fine, but the hospitality sector is expecting a simplification of input tax. “We expect the government to simplify the Input Tax Credit (ITC). Right now, ITC is a complicated affair for businesses, and if it is rationalised more readily, it would be great,” adds Vinesh.

Balancing Regional Growth and Fiscal Pressures

regional policies budget 2025

With alliance states like Bihar and Andhra Pradesh facing fiscal pressures, the government must strike a delicate balance between regional support and economic stability. According to Celio India, one way to address regional disparities is to boost consumer demand through lower individual income taxes and interest rates. Additionally, implementing a National Retail Policy could provide a unified framework for businesses across states, promoting equitable growth.  

Startups and MSMEs: The Backbone of India’s Economy

budget policies for startups

The startup ecosystem is closely watching the budget, particularly in areas of funding and taxation. Ankur Mittal, Co-founder of Inflection Point Ventures, points out that increased loan support for MSMEs could provide much-needed relief for startups struggling with credit access. “Startups with disrupted working capital cycles need better adherence to payment protection rules, and the budget must address this,” he says.  

Rohit Mahajan, Co-Founder of plutosONE, highlights the importance of fintech-bank partnerships in ensuring access to digital payment solutions. “With over 600 million smartphone users in India, fintech innovation is crucial. The government must provide incentives for digital transactions and ensure cybersecurity measures to support the country’s growing digital economy,” he suggests.  

The Green Push: Climate Policies and Sustainable Luxury

Budget Climate Policies

Sustainability is no longer just an option—it’s a necessity. With the rising climatic concerns and increasing impact on the environment, India aims to become a net zero-emission nation by 2070. In accordance with the same, businesses are expecting some policies from the government that help them take an active part in this run. Ricky Vasandani, Co-founder and CEO of Solitario, sees the budget as an opportunity to encourage eco-conscious consumption, particularly in luxury sectors like lab-grown diamonds, which the company works on. “India can lead the way in sustainable luxury with policies that support innovation in this space,” he notes.  

In retail, Celio India's Satyen Momaya believes incentives for renewable energy use, grants for energy-efficient technologies, and infrastructure development aligned with climate goals could accelerate green transformation. A budget that supports greener logistics and energy-efficient retail spaces would not only boost sustainability but also enhance long-term profitability for businesses. “Furthermore, sustainability-focused taxation, including a rationalised ‘sin tax’ structure, could play a role in promoting environmentally responsible consumption habits without disproportionately affecting affordability," believes Dheeraj Arora, MD & CEO, HRIPL. 

A Budget of Growth, Innovation, and Responsibility

budget 2025 expectations

We have technically entered an era of AI, and with the increasing participation of various countries in the race, India needs to step up their game. According to Bruce Keith, CEO of InvestorAI, the last few years have seen a stampede to buy up the processing power and take controlling positions by Big Tech in the US, but this week’s DeepSeek announcement has altered the landscape and re-opened the race. “AI is already embedded in our daily lives, and data centres will require continued infrastructure investment. The government should encourage AI application development in SMEs through R&D tax breaks,” he says.  

From simplifying taxation to supporting digital infrastructure and sustainability initiatives, the 2025 Union Budget holds significant potential to shape India’s economic trajectory. Industry leaders are hopeful that this year’s budget will not only address short-term fiscal challenges but also lay the groundwork for a more sustainable, inclusive, and innovation-driven future.

Don't forget to watch the Union Budget on 1st February 2025 and stay in sync with us for more updates on it!

Union Budget in India Budget 2025 Union Budget 2025 Budget 2025 updates Union budget expectations GST after budget Budget Announcments 2025 Union Budget 2025 Budget Budget 2025 Date Union Budget Date