As Finance Minister Nirmala Sitharaman prepares to present the Union Budget on Saturday, key sectors—including real estate, non-banking financial corporations (NBFCs), and the bullion market—are voicing their expectations for policies that will drive growth and investment.
Real Estate Sector’s Key Demands
The Confederation of Real Estate Developers’ Associations of India (CREDAI) Maharashtra has reiterated its demand for industry status to enable easier access to funding and attract greater investment. Additionally, the real estate sector is pushing for an increase in the tax deduction limit on housing loan interest under Section 24(b) from ₹2 lakh to ₹5 lakh, which could make homeownership more affordable. Exemptions on affordable housing also remain a top priority.
"Given the stability of the government, we are confident that these measures, if implemented, will stimulate housing demand, encourage affordable housing, and drive overall sector growth," said Pramod Khairnar Patil, President of CREDAI Maharashtra.
NBFCs Seek Tax Relief on Corporate Bond Investments
Pune-based NBFC Prachay Group is advocating for tax relief on corporate bond investments to enhance funding for businesses.
"Reducing taxes on interest earned from listed corporate bonds can directly channel investments into businesses. Indian enterprises have immense growth potential, but banking systems alone may not meet their financing needs. To encourage investments, the taxation rate on interest earnings should be reduced to 12.5%, aligning it with the capital gains tax on equity," said Girish Lakhotiya, Founder and CEO of Prachay Group.
Jewellery Industry Eyes Policy Reforms
With India’s jewellery sector undergoing significant transformation, industry leaders are seeking tax reforms and import duty reductions to sustain growth.
"India’s jewellery industry is experiencing strong growth, improved transparency, and a shift toward organized trade. The Budget 2025 presents an opportunity to accelerate this momentum through tax reforms and policies benefiting consumers, thereby boosting demand," said Saurabh Gadgil, Chairman and Managing Director of PNG Jewellers.
He also called for reduced import duties and enhanced gold monetisation schemes to improve efficiency and stimulate demand. "With exports contributing 5% to India’s total exports, optimising gold circulation and incentivising sustainable practices can reinforce India’s position as a global leader," he added.
Optimism Ahead of Budget 2025
Industry leaders remain hopeful that the upcoming budget will address these pressing concerns, fostering growth across the real estate, financial, and jewellery sectors. With expectations high, all eyes are on the government’s next move to stimulate economic expansion.