Budget 2025: Asit C Mehta’s key expectations for investors in these 10 sectors

Reform hopes With India’s FY26 Union Budget set to be unveiled on February 1, critical reforms are expected across various sectors, from railways and defence to real estate and renewable energy, to boost growth and sustainability. Here’s a look at what brokerage firm Asit C Mehta predicts for key sectors in the upcoming budget: Automotive The auto industry anticipates reforms to encourage sustainable technologies, including GST reduction on EVs from 28% to 18%, incentives for hydrogen fuel research, and expanded PLI schemes for EV components and charging infrastructure. These measures aim to drive India’s green mobility push. Real Estate To address the shortage of affordable housing, the sector is pushing for increased price caps for tax benefits and a higher home loan interest deduction limit. Developers also seek a reduced corporate tax rate to encourage affordable housing projects. Renewable Energy India’s sustainability goals are likely to receive a boost with increased funding for solar, wind, and green hydrogen projects. Support for local manufacturing and emerging technologies is also expected to help achieve the 500 GW non-fossil energy target by 2030. Railways The railways sector could see a 15-20% increase in capital expenditure, crossing Rs 3 lakh crore. Key projects include track upgrades, modernized railway stations, and funding for the Mumbai-Ahmedabad bullet train. Defence The defence budget is expected to focus on modernization and self-reliance, with higher funding for domestic procurement, cyber warfare, and advanced military platforms like submarines, frigates, and aircraft. Healthcare Expectations include increased allocations for Ayushman Bharat, rural healthcare, and AI-based diagnostic innovations. GST reductions on medical equipment and raw materials for drugs are Agriculture With an anticipated Rs 1.7 lakh crore allocation, agriculture reforms are expected to expand the PM-Kisan scheme and improve irrigation and cold storage facilities. Promoting ethanol and biofuels is also a key focus area. Infrastructure Public capex is likely to stay robust with higher allocations for roads, railways, and renewable energy projects. Simplified regulations and green infrastructure initiatives will aim to attract private investments. Telecom and Digital The telecom sector seeks incentives for 5G deployment, rural connectivity, and data centers. Simplified regulatory frameworks and cybersecurity funding are also expected to feature in the budget. Education and Skills The budget is likely to expand vocational training and industry-academia partnerships to meet evolving job market demands. Policies to allow foreign universities to set up campuses in GIFT City are also anticipated. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)