Union Budget 2025 Expectations: What the Industry Has to Say

With the Union Budget 2025 all set to be tabled in the Parliament on 1 February 2025, the industry has begun to share its expectations for growth-driven policies. Radhika Koolwal, Co-Founder of Urban Space, shared her insights on what the industry hopes to see in this year’s budget. “The home décor sector is ripe for transformation, and targeted measures can significantly bolster its growth and innovation,” Koolwal emphasized. She highlighted key areas that the government could address:

1. Support for Domestic Manufacturing: Koolwal advocated for subsidies on raw materials and machinery to reduce production costs, along with tax breaks for MSMEs and startups in the industry. “These steps will not only strengthen domestic manufacturing but also encourage new entrants and help existing players scale up,” she said.
2. Reduction in GST Rates: A lower GST rate on home furnishings and décor items could make quality products more affordable for the expanding middle class. “This move would also boost demand, fostering growth for businesses across the supply chain,” she added.
3. Incentives for Sustainability: Koolwal emphasized the need for tax benefits to encourage eco-friendly production practices and the use of sustainable materials. She noted, “Sustainability is no longer a choice but a necessity, and the government’s support can accelerate this transition for many brands.”
4. Boost to Digital Infrastructure: Investments in digital infrastructure and support for e-commerce platforms were also high on her wishlist. Koolwal explained, “Expanding digital reach will help businesses like Urban Space deliver superior customer experiences and connect with underserved markets.”
5. Focus on Housing Development: Koolwal underscored the importance of government investments in urban housing and affordable housing schemes. “Such initiatives will spur demand for home décor products and open new opportunities for the sector,” she said.
6. Enhanced Export Incentives: To elevate Indian home décor brands on the global stage, Koolwal suggested boosting export incentives. “Indian designs have immense potential to shine internationally, and stronger export support will help us compete in global markets,” she remarked.

Gaurav Dagaonkar, Co-founder and CEO, Hoopr, also echoed his views saying: “Last year’s budget introduced several encouraging measures for the startup ecosystem, such as the extension of tax benefits for startups, a focus on developing digital infrastructure, and the establishment of a Rs 1 lakh crore corpus for low-interest loans to startups. Building on this momentum, I am eagerly anticipating the upcoming Union Budget. For music-tech startups like ours, initiatives that further simplify and strengthen intellectual property regulations, provide access to affordable capital, and incentivize innovation in areas like AI and music technology will be crucial. We need a policy framework that not only supports the growth of India’s Rs 10,000 crore creator economy but also fosters responsible innovation and empowers creators to thrive. I am hopeful that the upcoming budget will continue to create a conducive environment for the music-tech sector to flourish and contribute significantly to India’s economic growth.”

Pankaj Prakash Sharma, Founder and CEO, Happa Foods, also shared his expectations: “The food processing industry in India is at a pivotal point, driven by rising consumer demand for sustainable, organic, and nutritious products. As we approach the new budget, we anticipate policies that will foster innovation, boost investment in agricultural infrastructure, and provide easier credit access for MSMEs. Enhancing export opportunities, simplifying GST structures, and supporting the farm-to-fork supply chain are critical steps. These measures can significantly enhance the industry’s growth, making it a cornerstone of India’s economic development.”