As the nation awaits the grand reveal of the Union Budget 2025, Prime Minister Narendra Modi has already sought divine intervention, invoking Goddess Lakshmi to bless the poor and middle class. But will the finance minister be the real medium of prosperity? Investors and taxpayers alike hope this year's budget is not just a fiscal document but a holy grail of financial relief, economic acceleration, and tax rationalisation.
Here's the final list of expectations from investors and taxpayers—before the Finance Minister either grants their wishes or politely ignores them.
Investors' wishlist: May the markets be ever in your favour
1. Tax relief on capital gains - Let compounding breathe!
Investors are tired of short-term capital gains (STCG) tax rates acting like a toll booth at every profitable exit. They're hoping for a cut, if not outright elimination, to incentivise long-term wealth creation. Rationalising capital gains tax across asset classes would be the cherry on top, making investing easier without a calculator-induced headache.
2. More stability, less surprise for foreign investors
Given India's relatively low foreign direct investment (FDI) to GDP ratio, the answer is simple: policies that don't change every budget cycle. Investors prefer predictability over shock therapy. A clear roadmap on foreign capital participation could prevent the seesaw movements in FDI flows.
3. A green and ESG-powered economy
With sustainability becoming a global buzzword, investors are hoping for a push toward green bonds and ESG-focused funds with clearer regulatory frameworks. If we must save the planet, we should at least get tax breaks.
4. Infrastructure and capex: Keep the growth engine running
The market loves capital expenditure, and expectations are high for at least a 12.5 per cent boost in public capex for FY26. Railways, highways, ports—keep building, and the markets will keep cheering. After all, what's a bull run without a strong economic foundation?
5. Sops for sector-specific growth
- Electric vehicles (EVs) - Give tax breaks, financial incentives, and a serious boost to EV infrastructure. Investors don't want to park money in a sector that runs out of charge.
- Manufacturing and agriculture - Policies that drive rural income and manufacturing competitiveness will go a long way in maintaining economic momentum.
- Logistics and Tax Efficiency - Smoothening out bottlenecks in ports, warehouses, and taxation structures will fuel India's transition to a manufacturing powerhouse.
6. Market reforms and financial deepening
Retail participation in Indian equities has surged in recent years. To keep the momentum going, the government should introduce policies that encourage more Indians to invest rather than hoard gold under their mattresses.
Taxpayers' wishlist: Will the burden lighten?
1. Raise the income tax exemption limits - Rs 5 lakh or Rs 10 lakh, we dare you!
Middle-class taxpayers dream of a day when the exemption limit moves from the existing Rs 2.5 lakhs (under the old regime) to Rs 5 lakh or even Rs 10 lakh. If not, reduce the highest tax rate from 30 per cent to 25 per cent. Let citizens save, spend, and contribute to the economy without feeling overtaxed.
2. Deductions: Give us more, we'll save more
- Home loans - Increasing deductions on home loan interest would be a double win: housing sector growth and happier homeowners.
- Health and life insurance - Given rising medical costs, enhanced tax breaks on insurance premiums are the need of the hour.
- National Pension System (NPS) - If you want us to retire rich, at least let us save more with higher tax benefits.
3. GST rationalisation - Less confusion, more consumption
Every year, taxpayers dream of a simpler GST regime with uniform slabs. Less complexity, more compliance—it's a win-win for all.
4. Women and small taxpayers - Special considerations, please!
- Tax exemptions for women professionals - A progressive move to encourage workforce participation and financial independence.
- Small taxpayer relief - Lowering compliance burdens and tax rates for individuals earning below Rs 10 lakh would ensure they don't need a CA to file returns.
5. Real estate - Make buying a home easier
The real estate sector hopes for an 'Infrastructure Status' to ease financing and boost affordable housing projects. If homes become cheaper and investments grow, that's a double blessing!
6. Simplification of tax filing - A true miracle
The government promises easier tax filing, but it still feels like deciphering ancient Sanskrit texts. A genuinely simpler system would be a gift that keeps on giving.
The final thought: Divine intervention or just another budget?
As the Finance Minister takes the stage, investors and taxpayers will wait with bated breath, hoping that Budget 2025 isn't just an exercise in fiscal fine print but a game-changer in wealth creation and economic growth. With the Prime Minister already invoking Goddess Lakshmi, the only question is—will the blessings reach the common investor and taxpayer, or will they get lost in the bureaucratic maze?
Fingers crossed, calculators ready!
Other stories in our Budget 2025 series:
Numbers that rhyme: How poetry shaped India's budget speeches
The Budgets that changed India - but no one talks about them
Budget 2025: Less tax for more laughs, daydreams and last-minute tasks
The 1973 Black Budget: India's bold economic leap
1991: The Budget that changed India forever
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