Union Budget 2025: Winning & Losing Sectors Explained
![Union Budget 2025: Winning & Losing Sectors Explained](/modules/tvcmsblog/views/img/noimage.jpg)
Union Budget 2025: Sectors That Gained and Lost
The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, has brought significant changes across multiple sectors. While some industries received major boosts through policy changes and financial incentives, others faced setbacks due to budgetary constraints or tax changes.
In this article, we explore which sectors benefited, how much they gained, and which industries are at a disadvantage due to budgetary decisions.
Sectors That Gained from Union Budget 2025
1. Agriculture – ₹5 Lakh Crore Boost for Farmers
- The Prime Minister Dhan-Dhaanya Krishi Yojana was launched to benefit farmers in 100 districts.
- Key initiatives include crop diversification, enhanced irrigation, and post-harvest storage.
- 7.7 crore farmers will receive short-term loans with increased credit limits of up to ₹5 lakh.
? Impact: Farmers will have better access to credit, leading to increased agricultural productivity and improved rural incomes.
2. Insurance Sector – 100% FDI Allowed
- Foreign Direct Investment (FDI) cap raised from 74% to 100%, allowing full foreign ownership in companies investing their entire premium in India.
? Impact: Increased foreign investment will lead to greater competition, improved insurance products, and better financial security for citizens.
3. Infrastructure & Railways – ₹3 Lakh Crore Investment
- The Ministry of Railways received a 15-18% increase in budgetary support, totaling ₹2.9 to ₹3 lakh crore.
- Companies like RVNL, BEML, IRFC, and IRCON will benefit from increased spending on rail projects.
? Impact: Improved rail networks and infrastructure development will enhance connectivity and boost the construction industry.
4. Affordable Housing – 40,000 New Homes
- A second tranche of the SWAMIH Fund has been allocated to complete 40,000 pending housing projects.
- The fund will provide liquidity support to struggling residential projects.
? Impact: More affordable housing will be available for middle-class families, boosting the real estate and construction sectors.
5. FMCG & Consumer Goods – Increased Disposable Income
- The income tax slab has been raised, with no tax payable for incomes up to ₹12 lakh.
- Increased farmer incomes due to agriculture-focused schemes will lead to higher spending on consumer goods.
? Impact: Increased spending power will benefit FMCG companies like Hindustan Unilever, Nestlé, and ITC.
6. Mobile Phone Manufacturing – Lower Import Duties
- Import duties on printed circuit board assemblies, camera modules, and other components have been removed.
- The government aims to strengthen domestic production under the ‘Make in India’ initiative.
? Impact: This move will attract global smartphone manufacturers to set up plants in India, boosting employment and local production.
Sectors That Faced Setbacks in Union Budget 2025
1. Infrastructure & Capital Goods – Lower Than Expected Capex Increase
- The capital expenditure (capex) budget increased to ₹11.2 trillion, but it was seen as lower than expected.
- This impacted stocks of industrial and infrastructure firms like Larsen & Toubro, PNC Infra, and NBCC.
? Impact: Slower infrastructure growth could delay new projects and impact employment in the construction sector.
2. Insurance Companies – Tax Changes Affecting Investment in Policies
- New tax benefits introduced in the budget may reduce the attractiveness of traditional insurance products.
- Stocks of major insurance companies fell after the announcement.
? Impact: Potential loss of investments in long-term insurance plans and shift towards alternative financial products.
Conclusion: A Balanced Budget with Sector-Specific Focus
The Union Budget 2025 has provided substantial benefits to the agriculture, insurance, infrastructure, housing, and mobile manufacturing sectors. However, capital-intensive industries and insurance companies may face hurdles due to lower-than-expected investments and tax policy shifts.
For businesses and investors, understanding these budgetary changes is crucial for planning financial strategies and growth opportunities.
FAQs
Q1. Which sectors benefited the most from the Union Budget 2025?
✔ Agriculture, Insurance, Infrastructure, FMCG, Affordable Housing, and Mobile Manufacturing sectors saw major benefits.
Q2. How much did the government allocate to the railways?
✔ The railway sector received ₹2.9 to ₹3 lakh crore, marking a 15-18% increase in budgetary support.
Q3. What impact will the budget have on the insurance industry?
✔ The increase in FDI to 100% is a positive move, but tax policy changes may reduce the attractiveness of some insurance products.
Q4. Which industries faced setbacks due to the budget?
✔ Infrastructure, capital goods, and insurance companies were impacted negatively due to lower-than-expected budget allocations and tax changes.
Comments : 0