Budget session 2025: What India expects to see from FM Nirmala Sitharaman on February 1

The Union Budget 2025, set to be presented by Finance Minister Nirmala Sitharaman at 11 AM on February 1, 2025, is highly anticipated across various sectors. This will be her eighth consecutive budget presentation, making her the first finance minister in India’s history to achieve this milestone. The previous record was held by Morarji Desai, who had presented six consecutive budgets.

Key Expectations from Budget 2025
One of the major areas of focus for this year’s budget is expected to be the agriculture sector. Additionally, some tax reforms might be introduced, such as the possible phasing out of the old tax regime and an exemption from income tax for individuals earning up to ₹10 lakh per year. However, there is no official confirmation of these changes yet.

Another key challenge for the government is balancing fiscal consolidation and economic growth, especially with concerns over rising inflation. Policymakers will likely aim to support economic expansion while keeping fiscal deficits under control.

In the real estate sector, industry leaders are hoping for the long-pending demand of granting ‘industry’ status. This would help attract more investments and bring in regulatory benefits. The technology sector, particularly Artificial Intelligence (AI), is also looking for budgetary support to boost research and adoption of AI-driven solutions.

Travel & Tourism Sector’s Expectations
Suresh Khadakbhavi, CEO of Digi Yatra Foundation, highlighted the crucial role of travel and tourism in India’s economy, contributing around $178 billion to GDP. With the travel industry expected to reach $125 billion by FY 2027 and international tourist arrivals rising, there is an opportunity to push for policies that enhance innovation and ease of doing business.

Technology is driving growth in the tourism sector, with cloud solutions, SaaS technologies, and digital platforms improving traveler experiences. India has more than 1,500 travel-tech startups offering solutions to travel service providers. Initiatives like Digi Yatra, which use technology to create a seamless airport experience, align well with the government's vision of a tech-driven economy. Khadakbhavi emphasized the need for incentives and policies to promote privacy-preserving and decentralized ecosystems in this space.

To further boost the industry, the budget could introduce reforms such as:

Granting infrastructure status to smaller projects
Simplifying the licensing process for tourism-related businesses
Rationalizing GST structures to reduce operational burdens
These measures would encourage more investments, support entrepreneurs, and strengthen India’s position as a global tourism leader.

With expectations high across multiple industries, all eyes will be on Finance Minister Nirmala Sitharaman’s Budget 2025 speech to see how the government addresses these key concerns.