Budget 2025: Pune’s Real Estate and Key Sectors Outline Expectations

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Budget 2025: Pune’s Real Estate and Other Key Sectors Outline Expectations

With Finance Minister Nirmala Sitharaman set to present the Union Budget 2025, key industries—including real estate, non-banking financial corporations (NBFCs), and the bullion market—have outlined their expectations, urging the government to introduce policies that will stimulate investment, ease financial burdens, and drive economic growth.

Real Estate: Industry Status and Housing Benefits

The Confederation of Real Estate Developers’ Associations of India (CREDAI) Maharashtra, representing private real estate developers across the state, has reiterated its demand for ‘industry status’ for real estate. This designation would enable developers to access easier financing, attract more investment, and improve overall market stability.

Key Demands from the Real Estate Sector:

Increase in Tax Deduction for Housing Loans: Currently, homebuyers can claim a tax deduction of ₹2 lakh under Section 24(b) for housing loan interest. CREDAI Maharashtra is pushing to raise this limit to ₹5 lakh, making homeownership more affordable.

Continued Exemptions for Affordable Housing: To promote the construction of budget-friendly homes, developers seek tax benefits and incentives for projects that cater to middle and lower-income groups.

Easier Financing and Investment Incentives: With an industry status, real estate firms could gain better access to institutional funding and lower interest rates, fueling growth in urban and semi-urban developments.

According to Pramod Khairnar Patil, President, CREDAI Maharashtra, “Considering the stability of the government, we are confident that these measures, if implemented, will stimulate housing demand, encourage affordable housing, and drive overall sector growth.”

NBFCs: Tax Relief on Corporate Bonds

The non-banking financial sector (NBFCs) plays a crucial role in funding businesses and individuals, but industry leaders argue that existing taxation policies limit their growth potential. Girish Lakhotiya, founder and CEO of Pune-based NBFC Prachay Group, has emphasized the need for tax relief on corporate bond investments.

Key Proposals for the NBFC Sector:

Reduction in Taxes on Interest from Corporate Bonds: At present, interest earned from corporate bonds is subject to higher taxation, discouraging investments. A reduction to 12.5%, aligning it with capital gains tax on equity, could make these bonds more attractive.

Boosting Alternate Funding Channels: Many businesses rely on NBFCs for financing, but banking systems alone cannot meet their requirements. By easing tax burdens, the government can encourage more investments into corporate bonds, providing alternative capital sources for businesses.

Lakhotiya stated, “Reducing taxes on interest received from listed corporate bonds can channel investments directly into businesses, ensuring financial growth beyond the traditional banking sector.”

Bullion Market: Tax Reforms and Gold Monetization

The jewellery industry in India has seen rapid evolution, with increasing transparency, organized trade, and rising global credibility. Saurabh Gadgil, Chairman and Managing Director of PNG Jewellers, has outlined several expectations from Budget 2025 to further support the sector’s expansion.

Key Expectations from the Jewellery Industry:

Reduction in Import Duties: High import duties increase the cost of gold, making it expensive for both traders and consumers. Lowering these duties can help boost demand and increase exports.

Strengthening Gold Monetisation Schemes: Encouraging individuals and businesses to invest in structured gold savings and monetization plans can enhance gold circulation within India, reducing dependency on imports.

Tax Benefits for the Jewellery Sector: Streamlining tax structures, including GST on gold, could support traders and manufacturers, enabling better growth opportunities.

According to Gadgil, “India’s jewellery sector is witnessing strong growth and increasing compliance with financial regulations. With exports contributing 5% of India’s total exports, optimising gold circulation and incentivising sustainable practices can further solidify India’s leadership in the global market.”

Industry Optimism for Budget 2025

Industry leaders across real estate, NBFCs, and the bullion market remain hopeful that the government will introduce reforms that cater to sector-specific challenges while fostering overall economic growth. If implemented, these proposed changes could:

Make housing more accessible and affordable for the middle class.

Provide businesses with alternative financing options, ensuring sustainable growth.

Strengthen India’s position in the global gold and jewellery market.

As the Union Budget 2025 approaches, all eyes are on the government to see how it addresses these critical industry concerns. Will these reforms become a reality? Stay tuned for insights and analysis post-budget.