At the pre-Budget consultation with Finance Minister Nirmala Sitharaman, IVCA emphasized the need to build on the positive policy momentum from the previous Union Budget to further strengthen the Indian alternate capital ecosystem. Additionally, unlocking pools of domestic capital remains critical. By implementing these measures and modernizing regulatory frameworks, India can pave the way for a robust and globally competitive alternative investment landscape. We remain optimistic about the government’s continued support in the upcoming Union Budget.Rampraveen Swaminathan, MD & CEO, Mahindra Logistics Ltd.
The upcoming budget presents a pivotal opportunity to strengthen India’s logistics and supply chain sector, a backbone of economic growth and a key enabler of trade and commerce. By prioritising infrastructure investments across highways, expressways, multi-modal transport networks, and logistics parks, the government can catalyse sectoral transformation. Accelerating automation, digitisation, and green logistics adoption—backed by advanced EV infrastructure—will foster efficiency and sustainability. To drive India’s logistics sector toward global competitiveness, we urge the government to prioritise incentives that enhance global connectivity and enable seamless integration with international markets. Additionally, enforcement of targeted incentives for the warehousing sector will not only boost infrastructure development but also position India as a strategic hub for global trade. A forward-thinking budget that addresses these priorities will elevate India’s global competitiveness and position the nation as a leader in logistics innovation and manufacturing excellence.
Siddarth Pai, Founding Partner and CFO, 3one4 Capital & Co-Chair, Regulatory Affairs Committee, IVCA
2024 witnessed quarter on quarter capital formation via AIFs dip to single digits, compared to double digit growth in 2023. AIFs play a crucial role in terms of capital formation in India and investments in the Indian economy. The last budget saw the rationalisation of tax rates between listed and unlisted entities, a longstanding ask of Indian AIFs and startups. The need of the hour is clarity and parity: tax clarity on numerous operations of AIFs, such as the characterisation of their gains, tax treatment at the end of a fund’s life, how dematerisaliton of Units will play out with the tax code; Parity between foreign and domestic funds in terms of taxation is also required.
Ashish Kukreja, Founder & CEO, Homesfy.in & mymagnet.io
The arrival of the Union Budget 2025 marks a crucial juncture for the real estate sector, poised at the intersection of challenges and opportunities. Industry stakeholders are pushing for bold and transformative actions to tackle high costs, improve affordability, and sustain the sector’s growth trajectory. One key proposal is to raise the tax exemption limit on housing loans under Section 24(b) of the Income Tax Act from Rs 2 lakh to Rs 5 lakh. This adjustment alone could offer substantial financial relief to homebuyers, stimulating demand, especially within the middle-income bracket. Furthermore, reintroducing the Credit Linked Subsidy Scheme (CLSS) for first-time homebuyers could play a pivotal role in advancing the “Housing for All” initiative, facilitating increased homeownership for millions. On the supply side, reinstating the 100% tax exemption under Section 80-IBA of the Income Tax Act for affordable housing projects is crucial.
Pearl Agarwal, Founder and Managing Partner, Eximius Ventures
One of the most critical expectations from this budget is stabilising the rupee amid a strengthening dollar and global economic headwinds. Over the last six months, India’s markets have witnessed significant outflows, driven by weak earnings and foreign institutional investors reallocating capital to developed economies like the US. To address this, reducing capital gains tax, both long-term and short-term, could play a pivotal role in reviving domestic investor confidence, attracting much-needed liquidity, and bolstering market stability. This move would not only support companies in scaling up as India transitions into an export hub, but also ensure a stronger rupee, making India a more attractive destination for foreign investors.
Nikhil Kurhe, Co-founder & CEO, Finarkein Analytics
As we approach this year’s Union Budget, it’s crucial to recognise the transformative potential of India’s Digital Public Infrastructure (DPI) in fostering financial inclusion and economic growth. Initiatives like the Account Aggregator framework, Ayushman Bharat Digital Health Mission, and ONDC-FS are foundational to creating an interconnected and inclusive digital economy.
To drive widespread adoption and innovation around these digital public goods, the Budget can allocate targeted funding for capacity building, awareness campaigns, and incentives for early adopters. Establishing a dedicated innovation fund for DPI-focused startups can catalyse solutions tailored to underserved segments, including MSMEs and rural India.
Samudragupta Talukdar, Founder and COO, Relata
On the money side, there’s been some interesting movement in property taxes. Cities are getting better at collecting them, with a 31% jump in 2022-23. But, here’s the thing—we’re still behind global standards, collecting only about 0.2% of GDP in property taxes. The main hurdles here are the outdated property records and some administrative headaches. Investment options are getting more interesting too. SEBI has introduced something called small and medium REITs, making it possible for more people to invest in high-value properties with Rs 10 lakh minimum investment. This reflects a positive response from investors seeking diversified real estate investment opportunities.
In India, affordable housing is making real progress. The government’s PMAY-U scheme has already given the green light to build around 12 million houses, with about half already completed. These efforts are actually changing real lives. Families who never thought they could own a home are finally getting their keys. I feel it’s about giving millions of hardworking Indians the dignity of homeownership and a chance at a better future. The government’s “Housing for All” mission is turning from a slogan into reality, one family at a time.”
Narain Karthikeyan, Founder, DriveX
With the Union Budget on the horizon, we look forward to forward-thinking policies that promote affordability, business-friendly environment, and sustainable mobility. To begin with, we’re seeing rural demand pick up for auto, while urban demand is slowing. A friendlier tax regime to boost disposable income in urban areas would be a good start. To make affordable mobility a reality for middle- and lower-income groups, targeted initiatives like interest subsidies on refurbished vehicle loans, and lowering GST on refurbished vehicles would be highly beneficial while reinforcing the circular economy.
Additionally, easing compliance norms and offering financial support for automotive and tech startups will encourage innovation and growth. Creating favourable policies like PLI schemes for businesses operating in unorganised sectors is one direction. Providing incentives for startups expanding into Tier 2 and Tier 3 cities, along with subsidies for rural mobility solutions, can also drive economic inclusivity.
Suresh Kumar R, Managing Director, Allcargo Terminals Limited
Integrating India further into the global value chain and building a globally competitive and robust logistics ecosystem are key to drive sustained economic growth and realising the vision of Atmanirbhar Bharat. We expect continued thrust on capital expenditure for physical and digital infrastructure and emphasis on port infrastructure development for attaining 10,000 MTPA port capacity by 2047. Continued investment to enhance transport connectivity, rail corridors, incentives for adoption of EV trucks and fiscal benefits for developing EV infrastructure will foster sustainable multimodal connectivity. To enhance EXIM trade, we expect the budget to outline policies to leverage existing assets and infra -structure in and around ports. For instance, opening up handling of air cargo by CFS-ICDs exempting any service, such as storage handling of containerised Agri products from the purview of GST. Continuing export promotion incentives and facilitating the development of export hubs will further strengthen Indian manufacturing to be globally competitive and attract investments which will boost Indian exports.”
