While the Union Budget 2025-2026 is expected to focus on tax reforms, increase private investments and growth, and reduce the fiscal gap, there is also budding anticipation for targeted incentives and meaningful reforms to create a more equitable and sustainable future for the country.

India’s demographic trends should be adequately leveraged to support inclusive growth and social progress. Furthermore, the Budget can offer the opportunity to drive India’s energy transition. Here are some expectations that we hope to see reflected in the upcoming budget:

Advancing Healthcare Reforms and Investments The government’s recent support for the healthcare sector has been commendable, and an increased allocation of 2.5-3% of GDP could address the nation’s growing healthcare needs. Priorities include improving access to quality care, enhancing infrastructure in Tier 2 and 3 cities, and strengthening primary care through expanded Public Health Centres.

Promoting Sustainability and Renewable Energy Substantial resources must be allocated to promoting renewable energy, minimising waste, and incorporating green technologies. To meet the 2030 target of 500 GW renewable energy capacity, greater budgetary support for offshore wind, green hydrogen, and solarising MSMEs is essential, along with incentives for domestic manufacturing of solar panels, batteries, and storage solutions. A unified energy transition policy is central to decarbonise industries, promote green hydrogen infrastructure, and achieve a balanced energy mix, ensuring a sustainable and self-reliant energy future. Government initiatives such as the National Green Hydrogen Mission and solar energy expansion underscore a strong commitment to creating a cleaner, greener industrial ecosystem.

Strengthening Infrastructure for Youth India’s enormous young population have the potential to drive economic growth, but this hinges on addressing critical needs in health, education, and skill development. Enhanced investment in programs such as Rashtriya Kishor Swasthya Karyakram (RKSK) and Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana (PM-JAY) is needed to expand their reach and impact. With rising demand for quality education, stakeholders are looking for increased funding for under-resourced schools and colleges. Upgrading infrastructure, such as classrooms equipped with smart boards, high-speed internet, and innovative learning tools, can transform educational experiences, and foster interactive learning environments.

Expanding Digital Education and Teacher Training Investing in digital education is key to creating a robust ecosystem that supports online learning and fosters innovative teaching methods. Equipping educators with skills through structured training programs, which includes workshops, online courses, and peer mentoring, will ensure they are prepared to address diverse learning needs.

Boosting Research and Innovation in Education Dedicated funding for research and innovation in education will empower institutions to address unique challenges within the system. Such initiatives can drive transformative progress, preparing students and educators for future demands.

Focus on employment and skilling ecosystem  The upcoming Budget should also prioritise support for startups and MSMEs to drive job creation, streamline compliance through digital solutions, and encourage hybrid work models. Providing incentives for talent acquisition, reskilling programs, and health programs will help build a more resilient and productive workforce. Strengthening infrastructure and streamlining regulations can make India a hub for global talent and business, creating a brighter and more inclusive jobs landscape.

Last year’s Budget saw youth empowerment through skill development and rural and urban development take centre stage. By continuing to focus and top up these priorities, Budget 2025 can enable sustainable and inclusive growth, positioning India as a leader in global social progress.