Union Budget 2025 Expectations: What’s There for Defence and Tourism?

Union Budget 2025 will be an important event for fueling the country’s growth. Investors, business owners and stakeholders have many expectations from this Budget 2025. 

Domestic investors as well as foreign investors will closely monitor the Union Budget 2025 speech. The speech will be presented in Parliament on February 1, 2025 by FM Nirmala Sitharaman. 

In this Union Budget 2025, many sectors will be highlighted due to their importance for economic growth. Sectors such as Defence, Tourism, and Healthcare will remain in focus. 

Also, the stocks involved in the Defence, Tourism and Healthcare might get positively impacted after the Budget 2025 announcement.

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Union Budget 2025: Defence Budget Expectations

In Union Budget 2025 the expectations of Defense Budget allocations are high as India is advancing toward self-reliance in the defence sector. Government focusing on domestic procurement is increasing investment in research and strategic public-private partnership. 

The significant growth in defence production and exports is evident, but achieving targets will require addressing technological challenges. However, It is expected that the Union Budget 2025 announcement will have more firepower to the India’s Defense Industry’s local manufacturing.

India's defence allocation for Union Budget 2025 is likely to be in the range of 1.9 to 2% of GDP, similar to previous years. This stability will provide fiscal stability, but experts warn that it may not be enough to meet the growing external threats.

Union Budget 2025: Tourism Budget Expectations

In Union Budget 2025, the expectation of the Tourism Budget is to seek infra status and rationalisation of tax rates.

In the upcoming Union Budget 2025, experts believe that India needs to address key issues like Infrastructure status, tax rationalization. Also, the country needs to address simplifying visa processes and state level incentives to boost its hospitality sector.

This will help to attract private investment and improve return on investment. The government should focus on developing tourism destinations and making approval processes easier. Tourism has significant potential to contribute to India's GDP.

Conclusion

In the upcoming Union Budget 2025, the government is likely to make big announcements for the Defense as well as for the Tourism Sector. Investors are keeping an eye on it and trying to capture opportunities before the budget.

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