Closing Bell: Sensex, Nifty50 Extend Gains, Sectoral Performance Mixed on January 15, 2025

On Wednesday, January 15, 2025, the benchmark indices, BSE Sensex and NSE Nifty50, closed higher for the second consecutive session.

The 30-share Sensex gained 224.45 points, or 0.29%, closing at 76,724.08. During the day, the index fluctuated between a high of 76,991.05 and a low of 76,479.70. The NSE Nifty50 also ended in the green, rising by 37.15 points, or 0.16%, to close at 23,213.20. The index’s high for the day was 23,293.65, and the low was 23,146.45.

The Nifty Midcap100 index gained 0.41%, while the Nifty Smallcap100 index rose by 0.56%, indicating positive performance in the broader market.

Top Gainers and Losers

27 out of the 50 Nifty50 stocks saw positive gains, with notable performers like Trent, NTPC , Power Grid, Kotak Mahindra Bank, and Maruti Suzuki, which gained up to 4.01%. However, 23 stocks ended in the red, including Mahindra & Mahindra, Bajaj Finserv, Axis Bank, Bajaj Finance, and Shriram Finance, which saw losses of up to 2.90%.

Sectoral Performance

On Wednesday, sectoral markets showed varied results. The Nifty IT and Realty indices led the gains, rising by up to 1.39%. On the other hand, sectors like Nifty Auto, FMCG, Media, and Healthcare ended lower, with losses reaching up to 1.78%.

Oil Prices

As of January 15, 2025, at 03:24 PM, Brent Crude was trading at $80.03, up by 0.14%.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

 

Budget 2025: Key Highlights of Last Budgets Under FM Nirmala Sitharaman

As the Union Budget 2025 approaches, anticipation is building around potential tax reliefs, especially for those earning up to ₹15 lakh annually, and updates on cryptocurrency policies. This year’s Budget may include provisions aimed at supporting the middle class, youth, and farmers. A major point of interest is whether it will live up to the historic impact of the 2021 Union Budget, which is remembered for its bold and transformative approach amidst the COVID-19 pandemic.

Why the 2021 Budget Was Called ‘Once-in-a-Century’

The 2021 Union Budget, presented amidst the challenges of the COVID-19 pandemic, was hailed for its bold, far-reaching reforms. Despite the severe economic impact of lockdowns and job losses, Finance Minister Nirmala Sitharaman focused on long-term structural reforms rather than short-term populism, a decision that garnered widespread praise. The Budget’s key highlights included:

  • Healthcare Gets a Major Boost

The allocation for healthcare was increased by 137%, reaching ₹2,23,846 crore. A notable ₹35,000 crore was set aside for the nationwide COVID-19 vaccination program, emphasising the importance of immunisation in fighting the pandemic.

  • Reforms in Key Sectors
    1. Insurance FDI Reforms: The Foreign Direct Investment (FDI) limit in the insurance sector was raised from 49% to 74%, attracting global investors.
    2. Bank Recapitalisation: ₹20,000 crore was allocated to recapitalise state-run banks, addressing the rising issue of bad loans.
    3. Strategic Divestments: The government aimed to raise ₹1.75 trillion by selling stakes in public sector companies, including IDBI Bank, and surplus land of state-owned firms.
  • Impact on the Markets

The 2021 Budget triggered a historic rally in the stock markets. On February 1, 2021, the NSE Nifty 50 surged by 4.7%, and the S&P BSE Sensex climbed 5%, marking their best budget-day performance in over two decades.

  • Social Welfare Initiatives

The government launched the ‘One Nation One Ration Card’ scheme to provide subsidised food grains to rural migrants during the pandemic. This initiative allowed beneficiaries to access food grains from any part of the country.

  • A Landmark in Fiscal History

The 2021 Union Budget remains a milestone for its focus on long-term economic resilience and its approach to reviving the economy after the pandemic.

Union Budget Highlights from Previous Years

Union Finance Minister Nirmala Sitharaman’s approach to budget-making over the years has evolved to address the challenges and opportunities of each specific year. Here’s a look at key highlights from the last Union Budgets:

Union Budget 2024: Key Highlights from FM Sitharaman’s Speech

In 2024, Finance Minister Sitharaman focused on supporting the poor, women, youth, and farmers while driving growth, job creation, and middle-class relief. Here are the main points:

  • Revision in Tax Slabs: Changes in the new tax regime with savings for taxpayers up to ₹17,500.
  • Increased Standard Deduction: Standard deduction for the new tax regime was raised from ₹50,000 to ₹75,000.
  • Capital Gains Taxes: Raised tax on short-term capital gains from 15% to 20% and long-term capital gains from 10% to 12.5%.
  • Fiscal Deficit Target: The fiscal deficit for FY25 is projected at 4.9% of GDP.
  • Customs Duty Reductions: Duty cuts on metals like gold, silver, and lithium, as well as customs duty reductions for mobile devices and cancer medicines.
  • Job Creation & Agriculture: ₹2 lakh crore allocated for job creation, focusing on skills for youth and women’s participation, and ₹1.52 lakh crore for agriculture and allied sectors.

Budget 2023: “Amrit Kaal” Vision

  • Focus on Opportunities: The vision centred on creating opportunities for citizens, especially the youth, and promoting growth and job creation.
  • Proposed Spending: ₹45.03 lakh crore, with ₹35.02 lakh crore allocated for revenue expenditure.
  • Tax Changes: The income tax rebate limit was raised from ₹5 lakh to ₹7 lakh, providing significant relief to the middle class. The highest surcharge rate on income above ₹5 crore was reduced from 37% to 25%.
  • Retirement Benefits: Tax exemption on leave encashment for private sector employees was increased to ₹25 lakh.
  • Capital Investment: A 33% increase in capital investment outlay to ₹10 lakh crore.

Budget 2022: Green Economy & AtmaNirbhar Bharat

  • Shorter Speech: Sitharaman delivered her shortest Budget speech to date, with no changes in income tax slabs.
  • Focus on Green Economy: A major emphasis on creating a greener economy and supporting “Made-in-India” initiatives.
  • Support for AtmaNirbhar Bharat: A Productivity Linked Incentive scheme was introduced in 14 sectors to boost domestic manufacturing.
  • Cryptocurrency & Digital Initiatives: A 30% tax was imposed on income from cryptocurrency transactions, alongside a 1% TDS on transactions exceeding a specified threshold. Announced the launch of the ‘Digital Rupee’ and e-passports with embedded chips.
  • Technology Push: Spectrum auctions and the rollout of 5G mobile services were planned for 2022-23.

Budget 2021: Post-Pandemic Economic Recovery

  • Focus on Recovery: Aimed at economic recovery post-COVID-19, with substantial allocations for healthcare and infrastructure.
  • Key Announcements: Introduction of the Agriculture Infrastructure Fund (AIF) and a voluntary vehicle scrappage policy to boost the auto sector.
  • Fiscal Deficit: Targeted fiscal deficit of 6.8% of GDP.
  • Proposed Spending: ₹34.83 lakh crore to stimulate growth and recovery.

Budget 2020: Navigating the Covid-19 Pandemic

  • Pandemic Response: Focused on reviving economic growth amid the challenges posed by COVID-19.
  • Sectoral Focus: Special attention was given to healthcare, agriculture, and infrastructure development.
  • Revised Deficit: The fiscal deficit was revised to 9.5% of GDP due to the pandemic’s economic impact.
  • Proposed Spending: ₹30.42 lakh crore aimed at containing the effects of the pandemic and boosting key sectors.

Budget 2019: Vision for the Decade

  • 10-Point Vision: The Budget presented a 10-point vision for economic development, infrastructure growth, and social justice.
  • Corporate Tax Cuts: Corporation tax rates were reduced to boost growth and attract investment.
  • Welfare Schemes: Schemes like Pradhan Mantri Kisan Samman Nidhi and Pradhan Mantri Laghu Vyapari Maan-dhan were introduced to benefit farmers and small traders.
  • Proposed Spending: ₹27.86 lakh crore aimed at supporting long-term economic development.

What to Expect in 2025: The Key Areas

As the Union Budget 2025 approaches, the focus will likely be on:

  • Tax Reliefs: Anticipated updates for tax slabs, with significant relief expected for middle-income groups earning up to ₹15 lakh annually.
  • Cryptocurrency Updates: Proposals for clearer regulation and possible taxation updates for cryptocurrencies.
  • Job Creation & Welfare: More focus on providing relief to youth, women, and farmers while driving employment opportunities in various sectors.

To understand more about major expectations from Union Budget 2025-26, click here.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

 

NTPC, Tata Power, and Others Surge as Renewable Energy Hits New Highs

On January 15, 2025, power stocks gained momentum, rising up to 7.1% during intraday trade. At 11:25 AM on the BSE:

Renewable Energy Capacity Hits New Highs

India’s renewable energy capacity grew significantly in 2024, increasing by 15.84% to 209.44 GW by December, compared to 180.80 GW in 2023. Key highlights include:

  • Solar Power: Added 24.54 GW, a 33.47% Y-o-Y growth, reaching 97.86 GW.
  • Wind Power: Increased by 3.42 GW, a 7.64% growth, totalling 48.16 GW.
    This growth was part of a record addition of 28.64 GW in 2024, more than double the 13.05 GW added in 2023, as reported by the Ministry of New & Renewable Energy (MNRE).

Q3 Power Sector Insights

Power utilities are expected to see moderate growth in Q3FY25. Key trends include:

  • Generation Trends: Total generation may rise 3% Y-o-Y to 429 billion units (BU).
    • Coal-based generation remains steady at 319BU.
    • Hydro generation surged 27% to 34BU.
    • Renewable generation is estimated to grow 14% Y-o-Y to 47BU.
    • Gas-based generation could fall by 20% Y-o-Y to 5.4BU.
  • Peak Demand: Likely to hold at 224GW, a 10% drop from the record 250GW seen in May 2024.

Market Dynamics and Pricing

  • Coal and Gas: Global coal prices fell due to oversupply and weak demand in China, with e-auction premiums at 65–70% in Q3FY25.
  • Trading Volume: Expected to grow 16% Y-o-Y to 30BU in Q3FY25, contributing to reduced exchange prices.
  • Day-Ahead Market Prices: Likely to average Rs 3.71 per unit in Q3FY25, a 26% Y-o-Y decline.

The robust growth in renewable energy capacity and stable performance of traditional power generation highlights the sector’s ongoing evolution.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

CCI Approves Ashoka Buildcon’s Strategic Stake Acquisitions

The Competition Commission of India (CCI) has approved Ashoka Buildcon’s (ABL) plan to acquire:

  1. 34% Stake in Ashoka Concessions (ACL): Along with convertible instruments of ACL by ABL and Viva Highways (Viva).
  2. 26% Stake in Jaora Nayagaon Toll Road Company (JN): To be acquired by Viva.

About the Companies Involved

Ashoka Buildcon Limited (ABL)

  • Core Business: Engineering, Procurement, and Construction (EPC) in sectors like roads and highways.
  • Operations: Manages road assets through various models:
    • EPC (Engineering, Procurement, and Construction)
    • BOT (Build, Operate, Transfer)
    • HAM (Hybrid Annuity Model)

Ashoka Buildcon share price is trading at ₹280.90, up ₹6.50 (2.37%) as of 12:20 PM IST on January 15, 2025, after opening at ₹276.00 and reaching a high of ₹283.90.

Ashoka Concessions Limited (ACL)

  • Role: Infrastructure arm of the Ashoka Group.
  • Focus: Specialises in operating and maintaining roads and highways across India through its subsidiaries.
  • Purpose: Formed by ABL to consolidate BOT-based road and highway projects under one entity.

Jaora Nayagaon Toll Road Company (JN)

  • Project Scope: A BOT concessionaire working on:
    • Reconstruction, strengthening, widening, and rehabilitation of State Highway-31 between 125 km and 250 km in Madhya Pradesh.
  • Contractor: Operates under a concession granted by the Madhya Pradesh Road Development Corporation.

Simplified Transaction Overview

  • ABL: Acquires a 34% stake and convertible instruments in ACL.
  • Viva: Purchases certain convertible instruments in ACL and a 26% stake in JN.

This move is expected to strengthen ABL’s infrastructure footprint and streamline its road and highway operations.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

 

FPIs Cut Stakes in Adani Group, Retail Investors Stay Firm

In the third quarter of 2024, Foreign Portfolio Investors (FPIs) sold off a portion of their stakes in several Adani group companies, contributing to a sharp decline in share prices since November’s US Department of Justice notice. However, retail investors and mutual funds largely maintained their stock positions.

FPIs Reduce Stakes in Key Adani Stocks

According to reports, FPIs reduced their holdings in 4 major Adani group stocks:

Retail Investors and Mutual Funds

While FPIs sold off their Adani holdings, retail investors increased their positions by 4-120 basis points across the Adani group stocks. Mutual funds largely held their ground, with only ACC Ltd seeing a slight decrease in their holdings.

Impact of November’s Selloff

The Adani group faced a major hit in November after reports emerged that Gautam Adani was accused of being involved in a $250 million bribery scheme tied to solar power contracts. However, the group clarified that neither Gautam Adani nor other executives were charged with violating US laws.

Recent Developments

Despite the challenges, Adani Green Energy decided to cancel its dollar bond offering. The group is also exiting its joint venture with Adani Wilmar in a strategic move to raise additional funds and manage its debt.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

 

ITR Filing Deadline: Last Day to Submit Late Returns and Penalties

The last day to file belated or revised  ITR (Income Tax Returns) for the AY 2024-25 is January 15, 2025. The  CBDT (Central Board of Direct Taxes) has extended the original deadline of December 31, 2024, by 15 days to give taxpayers extra time.

Filing a Revised ITR

Taxpayers who have already filed their ITR before the deadline can still file a revised return if needed. A revised return can be filed only if the original return was filed by the deadline (July 31, 2024) for the FY 2023-24.

Penalties for Late Filing

If you miss the July 31, 2024 deadline, you can still file a belated return, but there are penalties:

  • Income up to ₹5 lakh: Late fee of ₹1,000.
  • Income above ₹5 lakh: Late fee of ₹5,000.

Additionally, you may be charged interest under Section 234A if there is any unpaid tax, calculated at 1% per month from the original due date (July 31, 2024).

What Happens If You Miss the January 15 Deadline?

Missing the January 15, 2025, deadline means you won’t be able to file or amend your ITR for AY 2024-25. Non-compliance can lead to legal notices and further penalties for failing to file an ITR.

Consequences of Late Filing

  • Carry Forward Losses: If you file after the original deadline, you won’t be able to carry forward any tax losses to offset future taxes.
  • Legal Notices: The Income Tax Department collects income details from various sources. Failure to file may lead to penalties and legal notices.

How to File a Late Return

  • Use the Income Tax Department’s e-filing portal for quick and easy submission.
  • Double-check your income, deductions, and tax payments to avoid errors.
  • Make sure to pay any outstanding tax, interest, or penalties before submitting your return.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Income Tax Can Seize Properties Without Real Owner’s Identification, Court Rules

The Income Tax (I-T) department has been given the authority to seize properties under the Prohibition of Benami Property Transactions (PBPT) Act, 1988, even if the actual owner or financier of the property cannot be identified. This was confirmed by a recent ruling from the Adjudicating Authority, highlighting the law’s strength in combating benami transactions.

Properties Seized in Kakori Case

In a significant case, the I-T department’s Lucknow unit seized land parcels in Kakori worth over ₹3.47 crore in 2023. These properties were linked to real estate firms that allegedly used unaccounted cash for purchases—a key indicator of benami transactions.

Understanding the PBPT Act

The PBPT Act prohibits buying property in someone else’s name (benamidar) using money from an unknown source, often to hide the real owner. The Act allows the I-T department to attach such properties, even if the real owner remains untraceable or fictitious.

Court Ruling Supports Property Attachments

In the Kakori case, the Adjudicating Authority upheld the attachment of 5 properties despite the absence of a named beneficial owner. The court cited Section 2(9)(D) of the PBPT Act, which allows seizures when the source of payment is unknown or fictitious.

Even though the department initially invoked Section 2(9)(A), which applies when the owner is known, the court ruled that the error did not invalidate the attachment, referencing a 2009 Supreme Court judgment.

Key Individuals and Real Estate Firms

One of the properties was registered under Ravi Kumar, an office assistant for Excella, a real estate company. While some firms and individuals initially linked to the case were cleared due to insufficient evidence, Ravi Kumar was deemed the benamidar. Haresh Kumar Mishra was identified as an accomplice, prompting further investigations into other assets linked to Kumar.

Crackdown on High-Value Transactions

The I-T department is intensifying its efforts to uncover and seize high-value benami assets, particularly in the real estate sector. In addition to the Kakori case, land worth ₹5.68 crore in Mohanlalganj was also seized for similar violations.

Legal Precedent and Caution for Investors

This ruling sets a critical precedent, showing that the absence of an identifiable owner won’t prevent the attachment of benami properties. Investors and property buyers are advised to steer clear of such transactions to avoid legal troubles as the government continues its crackdown on illicit ownership schemes.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Waaree and Premier Energies Drive Growth Through US Exports

Indian solar module makers Waaree Energies Ltd and Premier Energies Ltd are seeing significant growth from exports, particularly to the United States. While India’s domestic solar market remains strong, higher profitability in export markets drives these companies to expand overseas.

Export Markets Drive Revenues

  • Waaree Energies: India’s largest solar module manufacturer earned 58% of its FY24 revenues from exports, with the US as its key market.
  • Premier Energies: While US exports contributed 8.77% to its FY24 revenues, the company holds a 100% share of Indian solar cell exports to the US, making it the leading exporter in this category.

Why Exports Are More Profitable

The return on capital employed (ROCE) varies significantly:

  • Manufacturing solar modules in India yields a ROCE of 22%-28%.
  • Exporting these modules to the US boosts ROCE to over 72%.

Factors contributing to this profitability include backward integration, less competition, and the strategic advantages of manufacturing closer to export markets.

Expansion Plans in the US

  • Waaree Energies: The company is testing production at its new 1.6 GW solar module plant in the US. It also plans to establish a 3.4 GW solar module and 5 GW solar cell manufacturing facility there. Waaree is optimistic about the growth potential due to cost benefits in the US market.
  • Premier Energies: In partnership with Canada’s Heliene Inc., Premier Energies plans to set up a 1.2 GW solar cell plant in the US. However, the company is cautious and monitoring how US policies, like the Inflation Reduction Act, may affect its expansion plans.

Strategic Focus on the US

The US market offers lucrative opportunities for Indian solar companies, and Waaree and Premier Energies are tailoring their strategies to maximise returns while adapting to market and policy changes.

About Waaree Energies Limited

Waaree Energies Limited, established in December 1990, is an Indian company specializing in manufacturing solar PV modules. It has a total production capacity of 12 GW and operates five manufacturing plants in India, along with a presence in international markets.

As of January 15 at 10:19 AM, Waaree Energies share price is ₹2,624.95, reflecting a gain of ₹7.85 (0.30%) for the day. The stock opened at ₹2,655.00 and has traded between a high of ₹2,684.90 and a low of ₹2,617.25. With a market capitalisation of ₹75,410 crore, the company’s 52-week high is ₹3,743.00, and its 52-week low is ₹2,300.00.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

How a One-Time Investment of ₹5 Lakh Can Create ₹1.5 Crore Retirement Corpus

Planning for retirement is essential to ensure financial stability in your later years. Investing in either a lump sum or monthly SIPs over the long term can yield substantial returns, thanks to the power of compounding. Let’s explore how a one-time investment of ₹5 lakh can grow into a ₹1.5 crore corpus over 30 years.

Why is a Retirement Corpus Important?

After retiring, you’ll need a steady fund to cover living expenses without running out of money during your lifetime. Building a retirement corpus ensures you can meet these needs comfortably.

Investment Options for Retirement Planning

You can choose from:

  • Market-linked options: Mutual funds, equities.
  • Non-market-linked options: Fixed deposits, bonds.

One-Time vs. Monthly Investments

  • One-time investment: Deposit a lump sum and let it grow over time.
  • Monthly investment: Contribute a fixed amount every month, such as through SIPs.

How Do Investments Grow Over Time?

Here’s an example:

  • SIP: Investing ₹10,000 monthly for 25 years at a 12% annual return grows into ₹1.89 crore.
  • Lump Sum: A ₹2.5 lakh one-time investment for 25 years at the same return grows into ₹42.5 lakh.

Stretching Investment Duration

Increasing the investment duration to 30 years amplifies growth due to compounding:

  • SIP grows to ₹3.53 crore.
  • Lump sum grows to ₹74.9 lakh.

How ₹5 Lakh Can Grow into ₹1.5 Crore

Investing ₹5 lakh in mutual funds at a 12% annual return:

  • 10 years: Corpus grows to ₹15.5 lakh.
  • 20 years: Corpus grows to ₹48.2 lakh.
  • 30 years: Corpus grows to ₹1.5 crore.

Starting Early Benefits

If you invest ₹5 lakh at age 25, you’ll reach a ₹1.5 crore corpus by 55. Extending the investment to 60 years of age increases the corpus to ₹2.64 crore.

Compounding accelerates growth as returns are reinvested, making time your greatest ally in wealth creation. 

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.

Budget 2025: Pharma and Healthcare Sector Seek Tax Relief and Increased Spending

The Indian pharmaceutical and healthcare industries are optimistic about Finance Minister Nirmala Sitharaman’s upcoming Union Budget 2025. Their wish list includes increased healthcare spending, tax cuts for research and development (R&D), and support for infrastructure growth to drive innovation and accessibility.

Boosting Research and Development

Industry leaders are urging the government to prioritise R&D support, emphasising its role in strengthening India’s position as a global healthcare leader.

  • Pharma Industry’s Demand

Sudarshan Jain, Secretary General of the Indian Pharmaceutical Alliance, suggests allocating at least 10% of the National Research Fund to life sciences and reinstating 200% weighted tax deductions for R&D expenses.

  • Diagnostics Sector’s Appeal

Ameera Shah, Chairperson of Metropolis Healthcare, stresses the need for incentives in diagnostic technology to enhance India’s role in healthcare innovation.

Call for Higher Healthcare Spending

Healthcare players are advocating for a larger budget allocation to improve infrastructure and expand access to quality care.

  • Budget Allocation Goals

Himanshu Baid, Managing Director of Poly Medicure, recommends increasing the healthcare budget to 2.5-3% of GDP.

  • GST Simplification

Baid also proposes standardising GST at 12% across all medical devices to streamline the tax structure and boost ease of business.

  • Export Incentives

Enhancing export incentives under the RoDTEP scheme from the current 0.6-0.9% to 2-2.5% could improve the global competitiveness of Indian-made medical devices.

Infrastructure and Tax Relief for Hospitals

Hospital leaders are seeking government support to reduce costs and accelerate infrastructure development.

  • Infrastructure Incentives

Suneeta Reddy, Managing Director of Apollo Hospitals, suggests introducing an Infrastructure Linked Incentive (ILI) scheme for hospitals. She proposes a 50% incentive on the capital expenditure of hospitals with over 100 beds to offset taxes and promote capacity building.

  • GST Reductions

Reddy also calls for reducing GST on key input services like lease rentals, housekeeping, and manpower to 5%, which could lower operational costs by 8-10%.

  • Customs Duty Reforms

Lowering customs duties on advanced cancer treatment drugs and devices is also a priority.

Encouraging Preventive Healthcare

Diagnostics companies emphasise the importance of fostering a culture of preventive care.

  • Higher Tax Exemptions

Increasing tax exemptions for preventive health check-ups from ₹5,000 to ₹10,000 and extending benefits to cover multiple family members could promote early diagnosis and regular health monitoring.

Conclusion

The pharmaceutical and healthcare industries are hopeful that Budget 2025 will address these critical demands, ensuring a stronger, more innovative healthcare system in India. Enhanced R&D support, higher healthcare spending, and infrastructure incentives are seen as essential steps toward making quality healthcare accessible to all.

To know more about major expectations from Union Budget 2025-26, click here.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.