'Infrastructure Investment Is Crucial': Fundamentals In Focus Ahead Of Union Budget 2025

The Union Budget for the fiscal year 2025-26 or the FY26 will come to pass to on February 1, 2025. Finance Minister Nirmala Sitharaman will be presenting her 8th budget.

This comes at a crucial juncture; the Indian economy looks for a much-needed boost. A palpable swathe of sluggishness appears to have covered the larger system, with slowing GDP numbers and high inflation.

In addition to all that, the country's equity markets have also been in tatters recently, recording major losses over the past few months.

One of the key sectors in focus is the FMCG sector. This sector has show potential to grow, and it is looking to make inroads into the rural market.

Solving the Bottlenecks

"The logistics industry is eagerly awaiting the Union Budget 2025, hoping for targeted measures to resolve critical challenges plaguing global supply chains, especially in the FMCG sector," said Jitendra Srivastava, CEO of Triton Logistics & Maritime.

Key expectations include streamlined trade facilitation, reduction in duties on essential raw materials, and incentives for adopting smart supply chain technologies. These measures will help curb rising operational costs and ensure efficient movement of goods.

Infrastructure in Focus

Strengthening international trade relations and addressing logistical bottlenecks are essential to enhance global competitiveness. The Budget’s focus on infrastructure investment is crucial, with particular attention needed for warehouses and transportation networks.

Notably, the planned increase in railway funding to approximately Rs 3 trillion for 2025-26, coupled with the expansion of high-speed freight corridors, is expected to significantly boost operational efficiency in logistics.

Sustainability remains a critical area of focus. Introducing incentives for environmentally friendly packaging and production will not only align India with global standards but also enhance the resilience and competitiveness of its supply chains.

With FMCG demand projected to grow at a CAGR of 14.9 per cent by 2025, such initiatives are imperative for meeting global and domestic supply needs while fostering long-term growth and innovation in the logistics ecosystem.

Understanding The Space Problem

"As coworking space providers look to Budget 2025, key expectations center around boosting the sector's growth in Tier 2 and Tier 3 cities." said, MyBranch Services' Kushal Bhargava.

This includes a reduction in GST for small-scale businesses, infrastructure incentives, and improved tax benefits.

These measures will make coworking spaces more affordable for startups, drive economic development, and create job opportunities.

Further, a push for single-window clearances and faster regulatory processes will streamline coworking space expansion in non-metro areas, contributing to a balanced growth across the country.