Budget 2025 Expectations: Income Tax Relief, Tax Regime Simplification... What Does India Want? FICCI Survey

Ahead of the much-anticipated Union Budget 2025, which will be presented by Finance Minister Nirmala Sitharaman on February 1, industrial bodies are optimistic about the country’s economic growth. The survey, conducted by the Federation of Indian Chambers of Commerce and Industry (FICCI) to check the  sentiment among business firms, found that several participants are confident about India’s growth prospects and called for a review of the direct tax structure. 

Budget 2025 Expectations: What FICCI Survey Says

Around 60% of respondents forecast a GDP growth between 6.5% and 6.9% for the next fiscal year. Nearly 47% of participants have a positive outlook on the government's target of achieving a 4.9% fiscal deficit for the current fiscal year.

FICCI’s Pre-Budget 2025-26 Survey was conducted between late December 2024 and mid-January 2025. It gathered responses from more than 150 companies across various sectors, offering a comprehensive view of India Inc’s sentiment amid slowing economic growth.

Key Findings From The FICCI Pre-Budget 2025-26 Survey

The survey underscored  several critical areas for the upcoming Union Budget, with a strong emphasis on nurturing  balanced economic growth and addressing immediate challenges. A primary concern among respondents was weak demand in the economy. Many called for a review of the direct tax structure, including revisiting tax slabs and rates, to increase disposable income and stimulate consumption. There were also suggestions to simplify the tax system, address customs duty issues, and rationalize TDS provisions. Additionally, 54% of participants supported the introduction of a customs amnesty scheme to resolve disputes.

The survey also underscored the need for sustained public capital expenditure. A significant 68% of respondents advocated for a 15% increase in capital investment for FY 2025-26 to maintain the growth momentum. Last year’s Union Budget outlined the next generation of reforms, and industry players expect further updates on these initiatives. There was a strong focus on infrastructure, manufacturing (especially Industry 4.0), and agriculture/rural development. Nearly 40% of respondents stressed on the need to support MSMEs, given their pivotal role in job creation. They called for targeted measures, such as improved credit access, technology adoption, and sustainability initiatives, to support this sector.

Increasing export efficiency was another key focus, with participants urging the government to enhance logistics efficiency and continue interest equalisation schemes to strengthen India’s global trade position. Respondents also stressed the importance of aligning macroeconomic policies to build resilience against global challenges, such as geopolitical risks, inflation, and supply chain disruptions.

With the Union Budget 2025-26 being the first full budget of the new government, it presents a significant opportunity to further strengthen India’s position in the global economy, reinforcing its credentials as a leading investment destination - FICCI said.