The anxiety level among people from all segments of the sectors is at an all-time high because the Union Budget 2025 is approaching. Nirmala Sitharaman will present it on February 1, 2025, during her eighth year in office-also the Modi government's third tenure's second comprehensive financial roadmap. This budget will aim to strengthen economic growth, structural reforms, and the dreams of millions of Indians while building development across all the critical sectors. Here's a detailed analysis of what every sector is waiting for in this upcoming budget and what stocks to track.

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Agriculture: India's Backbone Industry

The farm sector hopes for sector-specific reforms to tackle the vagaries of weather and financial security for the farmers. Major expectations include the easing of norms on loan repayment, which would enable farmers to repay interest at the end of the tenure rather than at periodic intervals. This will ease liquidity constraints during cultivation cycles. Enhancements in the Kisan Credit Card scheme in the form of increasing interest subvention and crop security measures are also expected.

Besides, scrapping GST on essential agricultural inputs such as seeds, manure, and pesticides may bring forth cost savings for farmers. Hoped-for reforms on the other front could be doubling the annual financial support under the PM Kisan Samman Nidhi scheme to ₹12,000 from ₹6,000 earlier, combating inflation and further improving farmer welfare. Expanding the coverage of MSP beyond the 22 crops currently covered is under discussion.

Listed Stocks to Watch: UPL Limited, Coromandel International, Godrej Agrovet

Automobile: Accelerating Towards Sustainable Mobility

The automobile industry is eagerly awaiting reforms that will spur growth and sustainability. A simplified GST classification for vehicles and auto components will ease compliance and improve operational efficiency. There is also a strong push to reduce the GST on hybrid vehicles, currently taxed at 28%. Lowering this rate would make hybrids more affordable, serving as a bridge between internal combustion engine (ICE) vehicles and electric vehicles (EVs).

Stocks to watch: Tata Motors, Mahindra & Mahindra, Bajaj Auto, TVS Motor Company

Real Estate: Building Dreams for Millions

Budget 2025 will be transformative, and the real estate sector hopes for the same. A boost in the tax exemption limit on housing loan interest from ₹2 lakhs to ₹3 lakh will reduce the financial burden of homebuyers and increase the demand for housing. The industry status will help developers access institutional funding at cheaper costs.

The rules of input tax credit under GST will also be amended to reduce the tax burden on developers and stabilize the prices of properties. This will make housing more affordable for more people and promote growth throughout the industry.

Stocks to Watch: DLF Limited, Godrej Properties, Sobha Limited

Electronics: A Push for Domestic Production

The Indian government's highly anticipated ₹25,000 crore Production-Linked Incentive (PLI) scheme could go a long way in revolutionizing the electronics industry. The proposal is to develop domestic manufacturing in electronic components, such as PCBs, batteries, displays, and camera modules, as against imports. With an estimate of over ₹40,000 crore, it is in line with the 'Make in India' dream and is expected to produce components valued at $50-60 billion during its time.This investment will position India as a global leader in the electronics manufacturing ecosystem and will further propel economic growth.

Listed Stocks to Watch: Dixon Technologies, Bharat Electronics Limited (BEL), Tata Elxsi

Pharmaceuticals: On the Road to Becoming a Global Pharma Hub

A wishlist for the pharmaceutical sector would be the establishment of single regulatory authorities for pharmaceuticals and medical devices. This may simplify licensing and compliance, making it less cumbersome and thus encouraging investment. Policy for refurbished medical devices can be introduced to increase access to healthcare in underprivileged communities.

More, there's also much-hoped-for increased financial incentives on R&D as well as an expedited system for patent filings and approval with the inducted Patent Term Extension (PTE) and Data Exclusivity (DE). These new changes can ensure that India cements its place as one of the hubs of the global pharmaceutical world.

Listed Stocks to Watch: Sun Pharma, Dr. Reddy's Laboratories, Cipla, Lupin

Education: Preparing for a Better Tomorrow

The education sector is pushing for a significant hike in funding up to 6% of the GDP. The investment in digital education, especially with regard to embedding AI and machine learning, will better equip students to face the emerging job markets of the future. Increased support for STEM programs and teacher training is also on the agenda.

The demands include the reduction of GST on educational services and implementation of reforms under the National Education Policy (NEP) 2020, which will help make education more accessible, inclusive, and globally competitive.

Listed Stocks to Watch: Navneet Education, Career Point, NIIT Limited

Also Read- What Will Budget 2025 Bring for India? | Union Budget 2025 Expectations  | Budget 2025 Expected Changes

Conclusion

This could be the foundation for transformative growth across critical sectors, both at the immediate challenges and long-term goals. From agriculture reforms to give a boost to farmer welfare to investments in EV and electronics manufacturing, real estate and pharmaceutical reforms, and education and crypto regulations, it may be an inflection point in India's economic trajectory as presented in Union Budget 2025.

Investors and other stakeholders will eagerly look at the execution of such reforms, thereby providing opportunities for almost all the sectors and listed equities. Innovations, inclusivity, and a robust economy are built, as India is marching towards a developed country status by 2047.