
As India prepares for the Union Budget 2025-26, expectations across industries range from tax reforms to policy support, aiming to fuel economic growth and innovation while adhering to fiscal prudence. Here’s a detailed look at the key demands and anticipations from industry leaders and experts.
Personal Tax Reforms to Boost Consumption

A Barclays report suggests that the government should introduce an “effective” personal income tax cut in the FY26 Budget to bolster consumption and demand. Aastha Gudwani, India’s Chief Economist at Barclays, highlights that adjusting tax slabs to lower effective rates can support economic growth without significantly straining fiscal resources. This move aligns with the government’s dual goals of fostering growth and adhering to fiscal consolidation.

Electronics Industry Eyes Self-Reliance

India’s electronics sector, projected to reach $300 billion in domestic production by 2026, has become a pivotal driver of the economy. Amit Khatri, Co-Founder of Noise, emphasises the importance of the Production-Linked Incentive (PLI) scheme, reduced import dependencies, and strategic investments in infrastructure and R&D to maintain this momentum. Local collaborations, such as those between Noise and Amber, underscore the benefits of strengthening domestic manufacturing capabilities.

Edtech Calls for Skilling and Employment Growth
With 68% of India’s population in the working-age group, the edtech industry anticipates policies fostering employment and skilling initiatives. Nikhil Barshikar, Founder & CEO of Imarticus Learning, stresses that targeted efforts are required to equip the youth with industry-relevant skills and generate jobs to capitalise on the demographic dividend.
Hospitality Sector Seeks Policy Support
The Indian hospitality sector, poised for a 10.5% CAGR over the next three years, calls for government interventions to sustain growth.
- Infrastructure Development: Sharin Joseph, Commercial Director at Conrad Bengaluru, advocates for enhanced infrastructure investments to accommodate the rising influx of domestic and international travellers.
- Tax Rationalization: Rajit Sardana, President of Hospitality at Central Park, and Ronan Fearon from JW Marriott Bengaluru Prestige Golfshire, urge rationalising GST rates for luxury segments and incentivizing eco-tourism initiatives. Simplified compliance norms and funding support for mid-sized hotels could also drive growth in underserved regions.
Telecom Sector Prioritizes Cybersecurity and Local Manufacturing
Tony Varghese, Partner at JSA Advocates & Solicitors, calls for increased budget allocations toward the Telecom Cyber Security Rules and the establishment of regulatory sandboxes under the Telecommunications Act, 2023. Enhanced support for local manufacturing, tax concessions, and investments in R&D can position India as a global telecom hub.
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Agri-Tech Advocates Innovation and Sustainability
Dhanashree Mandhani, Founder & CEO of Salam Kisan, emphasises subsidies for agri-tech adoption, infrastructure investments, and market linkages to strengthen the agricultural sector. Sneha Singh of the Good Food Institute highlights the need for resource allocation toward R&D in novel foods and protein-rich diets, aligning with sustainability and resilience goals.
Finance & Banking Sector Demands Simplified Processes
India’s financial services sector anticipates reforms to enhance global competitiveness:
- Skill Development and Digital Infrastructure: Preeti Bajaj, MD & CEO of Luminous Power Technologies, underscores investments in solar energy adoption and skill development for women and youth to propel clean energy growth.
- Dispute Resolution: Prashant Bhojwani, Partner at BDO India, recommends improving tax certainty and accelerating the resolution of pending appeals to attract foreign investment.
Railway Sector Pins Hope on Mega Wagon Orders
Sudipta Mukherjee, MD of Texmaco, urges the government to announce another mega wagon order, following the procurement of 1.2 lakh wagons in 2022. Expanding freight infrastructure is seen as pivotal to increasing the railway’s logistics share to 45%.
Sector-Specific Budget Expectations Highlights
- Capital Gains Tax: No major surprises are expected, with the focus likely on continuity and predictability.
- Skill Development: Enhanced programs for youth and women are seen as vital to bridging workforce gaps in emerging industries.
- Digital Finance: Support for fintech innovations, rural outreach, and robust data privacy frameworks remains a priority.
The Union Budget 2025-26 offers an opportunity to align India’s economic aspirations with its socio-environmental goals. By addressing industry-specific demands and fostering a conducive business environment, the government can pave the way for inclusive growth and global leadership.
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