The construction industry is gearing up for Budget 2025 with high expectations. As one of India’s key economic drivers, the sector is eagerly anticipating reforms and policies to address pressing challenges such as high input costs, funding gaps, and sustainability demands. Industry leaders across real estate, infrastructure, construction materials, and logistics have shared their wishlists, urging the government to focus on GST rationalization, increased CAPEX, and green initiatives.This year’s budget presents an opportunity for the government to not only tackle existing bottlenecks but also to drive growth by prioritising innovation and sustainability. Here we delve into sector-specific pain points, explore industry wishlists, and present voices from the field to understand what stakeholders are looking for from Budget 2025.Real EstatePain PointsLimited access to finance and liquidityVolatility in raw material pricesLow tax deduction limits on housing loan interestComplex and delayed approval processesInadequate PMAY house value capInsufficient support for affordable housing developmentLack of incentives for green-certified buildingsDeclining real estate activity in late 2024High financial burden on homebuyers due to interest ratesLimited affordability for economically weaker sections and middle-income groupsLack of infrastructure and green building initiativesWishlistRationalise GST on under-construction propertiesGrant infrastructure status to real estateIntroduce single-window clearance for projectsImplement monetary policy measures to inject liquidityRaise PMAY house value cap to ₹50 lakh in urban areasExtend capital gains exemption timeline to 5 yearsPromote green-certified buildings and eco-friendly constructionReintroduce Credit-Linked Subsidy Scheme under PMAYRestore 100% tax holiday for developers under Section 80-IBAFocus on infrastructure and sustainable real estate practicesRevive 80-IB tax benefit for affordable housing developersIntroduce interest subsidies for affordable housing developersIndustry VoicesRedefining affordability based on regional needs and encouraging green building practices will make housing policies more inclusive and sustainable. Implementing single-window clearance will enhance efficiency and attract investments. Additionally, a reduction in repo rate and stamp duty could further drive housing demand. - Venkatesh Gopalakrishnan, Director Group Promoter’s Office, MD - Shapoorji Pallonji Real EstateReviving the 80-IB tax benefit for developers undertaking affordable housing projects is crucial. This provision will incentivise developers to launch more affordable housing projects, aligning with the government's vision of 'Housing for All.' The benefit will also ensure increased supply in this category, meeting the ever-growing demand for budget-friendly homes. - Navin Makhija – Managing Director, The Wadhwa GroupRelaxing FDI norms could open new avenues for investment. The real estate sector plays a critical role in the nation’s economic growth, and it has demonstrated remarkable resilience and growth. - Siddharth Vasudevan Moorthy, Managing Director, Vascon Engineers LtdOn the supply side, reinstating the 100 per cent tax exemption under Section 80-IBA of the Income Tax Act for affordable housing projects is crucial. This incentive, which expired in 2022, incentivised developers to prioritise affordable housing—a sector vital for meeting India's urban and rural housing requirements.- Ashish Kukreja, Founder & CEO, Homesfy.in & mymagnet.ioRationalisation of GST on under-construction properties and enhanced tax benefits for homebuyers, which can significantly boost demand. Additionally, prioritising urban infrastructure and affordable housing projects could unlock easier access to financing and attract both domestic and international investments. - Vidip Jatia, Executive Director, Supreme Holdings & Hospitality India LtdWe anticipate key reforms like raising the tax deduction limit on housing loan interest to Rs 5 lakh, granting infrastructure status to real estate, introducing single-window clearance, and targeted incentives for affordable housing to boost growth and support ‘Housing for All.’ - Jash Choraria, Vice President - Investments & Credit and Chief of Staff, Crest Ventures LimitedUnion Budget 2025 must prioritise sustainable housing with increased allocations for PMAY and infrastructure, especially in Tier II and III cities. Key expectations include raising the home loan interest rebate to Rs 5 lakh, increasing the PMAY house value cap, enhancing rental income tax exemptions, and promoting green-certified buildings. -  Pranay Kumar, Executive Director, Rudrabhishek Enterprises Limited (REPL)The real estate sector expects targeted interventions to revive growth, including infrastructure development and sustainable practices like green buildings. Reintroducing the Credit-Linked Subsidy Scheme under PMAY and restoring the 100 per cent tax holiday for developers under Section 80-IBA will address challenges in affordable housing. - Deep Vadodaria, CEO, Nila Spaces LimitedWe recommend measures to simplify the setup process for Global Capability Centres (GCCs) in India which would enhance India’s position as a global business hub and empower the flexible workspace industry to meet the evolving needs of modern businesses. Through these supportive measures, the government can create a thriving ecosystem for startups, drive economic growth, and pave the way for a brighter future for India. – Amit Ramani, Chairman and MD, Awfis Space Solutions On the supply side, reducing the GST burden on essential construction materials like cement and steel would enable developers to better manage rising costs, stabilise property prices, and encourage the launch of new projects. Offering subsidies for sustainable construction initiatives, such as green housing, could further reduce property prices over the medium to long term while fostering a more sustainable future. - Sudhir Pai, CEO, MagicbricksFormulation of the CLSS scheme and the creation of affordable housing zones, akin to SEZs, could provide targeted incentives and address critical demand-supply gaps.To further support homebuyers, waivers of stamp duty and GST for first-time homebuyers would offer much-needed financial relief. Strategic reforms, such as adjustments to GST input tax credit regulations, could reduce developers’ tax burdens, potentially stabilizing property prices and making housing more accessible. - Pradeep Aggarwal, Founder & Chairman, Signature Global (India).InfrastructurePain PointsExpected undershoot in CAPEX for FY2025Over-reliance on road and rail allocationsGaps in safety and trade connectivity infrastructureLimited policy support for export boostInadequate focus on modernizing rolling stock and urban mobilityWishlistTax incentives for infrastructure growthStreamlined regulations for project approvalsInvestment in digital infrastructureIncreased focus on urban infrastructure Continued focus on PM Gati-Shakti and Jal Jeevan MissionIncreased CAPEX for modernisation and expansionBalanced investment across multimodal transportationStrengthened Make in India initiatives for manufacturing and exportsA clear roadmap for safety and seamless trade connectivityFuture-ready policies for urban mobility developmentIndustry VoicesPartnerships that drive sustainable infrastructure projects must be explored, along with incentives for the use of eco-friendly construction materials such as steel slag and recycled plastic waste for road development. We also propose the introduction of a sustainability rating framework to assess infrastructure projects on their long-term environmental impact and viability. Such a rating system would not only ensure sustainable development but also highlight areas of improvement for project optimization. -Y. R. Nagaraja, Managing Director of Ramky Infrastructure LtdWe anticipate a strong commitment to the Make in India initiative and reflective policies within the sector, strengthening domestic manufacturing and boosting exports. We hope that the budget will provide a clear roadmap for India’s transportation future, positioning the nation as a global leader in seamless mobility. - Umesh Chowdhary, VC & MD, Titagarh Rail Systems Ltd.Given the GoI’s continued thrust on infrastructure, ICRA expects capital outlay to witness 10-12 per cent Y-o-Y growth in FY2026 BE. The Road and the Railway segments will continue to account for a bulk of the allocation. The outlay towards JJM, urban infrastructure and affordable housing, however, is expected to witness healthy YoY growth in the upcoming budget.- Ashish Modani, Senior Vice President & Group Head - Corporate Ratings, ICRA LimitedThe upcoming Union Budget 2025 offers a critical opportunity for the government to introduce policies that will accelerate the growth of startups in India. With the coworking segment achieving significant scale after a decade of steady growth, we urge the government to implement measures that simplify the business environment for startups. One key area where startups need support is in the creation of startup hubs equipped with state-of-the-art facilities. By partnering with flex space operators to design innovative coworking spaces, the government can boost flexibility, generate employment, and foster entrepreneurship. - Amit Ramani, Chairman and MD, Awfis Space Solutions Ltd.The last budget, presented just six months ago, gave significant attention to public infrastructure while prioritizing sustainability as a key focus. This year, the momentum must continue, with sectors like railways, aviation, healthcare, hospitality, data centers and manufacturing taking center stage. These areas have immense potential to drive innovation, attract large-scale investments, create jobs, and transition India toward a greener model of development. As part of this transition, a wider promotion and integration of green building standards in both public and private sector construction can be an incremental yet impactful step toward embedding climate resilience into India’s urban landscape. - Arun Awasthy, President & Managing Director, Johnson Controls IndiaLast year’s allocation of INR 11.11 trillion for infrastructure demonstrated the government’s commitment to progress, but this must now evolve to push sustainability a step further and include more initiatives that prioritise the net zero vision, and one such step in the direction should be to incentivize green certifications for building project owners. Simplifying the certification processes and educating all segments of developers across the small to large paradigm about the long-term benefits of sustainable infrastructure will accelerate adoption across the sector. Furthermore, this growth must extend beyond metropolitan areas and should be complemented across all tiers including the Tier 2 and Tier 3 cities, creating opportunities for balanced and environmentally conscious development. -Mahesh Ramanujam, CEO,  Global Network for ZeroConstruction MaterialsPain Points:Rising raw material costsHigh import duties on key inputsUnderdeveloped digital infrastructure in IndiaLack of support for sustainable practicesBarriers to investment in green technologiesInadequate SME-friendly policiesWishlist:Policies supporting infrastructure and manufacturing growthIncentives for renewable energy, electric vehicles, and 5GMeasures to stabilize input pricing and ease import dutiesCapex support for expanding production capabilities in solar and automotive sectorsIncentives for sustainable practicesStrengthened policies for SME growthInvestment in green technologiesSupport for eco-friendly packaging and circular economyIndustry VoicesWe look for incentives in emerging technologies like renewable energy, electric vehicles, and 5G rollout, which will drive demand for specialised products. Measures to reduce raw material costs and ease import duties are essential for enhancing the competitiveness of domestic manufacturers. Additionally, a supportive capex framework will strengthen production capabilities, especially in the solar and automotive sectors. - Mahesh Viswanathan, Deputy CEO and CFO, Finolex CablesAs we approach Budget 2025, the SME sector in manufacturing and packaging expects transformative growth, especially in the green packaging market, projected to grow at 6.52 per cent CAGR. We hope for stronger support for eco-friendly practices, incentives for sustainability, and policies that encourage investment in green technologies. - Jay Deepak Shah, CEO & MD, Jay Wood IndustryLogistics and Supply ChainPain PointsHigh logistics costs (14% of GDP vs. global 8–10%)Inefficiencies in freight movement and empty container tripsRegulatory bottlenecks and fragmented state approvalsLack of targeted investments in digital freight corridorsSlow adoption of AI and green technologies in logisticsLack of integration into the global value chainInsufficient investment in port and transport infrastructureGaps in handling air cargo by CFS-ICDs and export incentivesRegulatory issues with GST on containerized agri productsLimited focus on EV trucks and sustainable multimodal connectivityWishlistFiscal incentives for logistics startups focused on innovationTax rebates for AI-powered and green supply chain solutionsUnified National Logistics Policy with digital investmentsStreamlined regulatory approvals for smoother freight movementIncreased support for blockchain and IoT integration in logisticsIncreased capital expenditure for physical and digital infrastructureFocus on port infrastructure development for 10,000 MTPA capacity by 2047Investment in rail corridors and EV truck adoption incentivesPolicies to leverage existing assets around ports to boost EXIM tradeContinued export promotion incentives and development of export hubsIndustry VoicesWe expect continued thrust on capital expenditure for physical and digital infrastructure and emphasis on port infrastructure development for attaining 10,000 MTPA port capacity by 2047. Continued investment to enhance transport connectivity, rail corridors, incentives for adoption of EV trucks and fiscal benefits for developing EV infrastructure will foster sustainable multimodal connectivity. - Suresh Kumar R, Managing Director, Allcargo TerminalsInfrastructure development has been a priority, but the focus now needs to shift towards efficiency-driven policies. We urge the government to introduce fiscal incentives for logistics startups innovating in route optimization, multimodal connectivity, and empty container reduction. Tax rebates for businesses adopting AI-powered supply chain solutions and green technologies, such as EVs and alternate fuels, will accelerate sustainability in Logistics. - Dhruv Taneja, Founder and CEO, MatchLog SolutionsThe surge in cargo handling by automobile manufacturers highlights the growing demand for efficient and scalable logistics solutions. Rising vehicle production and expanding market reach necessitate advanced technologies like automation, real-time tracking, and predictive analytics to streamline operations. Just-in-time manufacturing and cost-effective transport require seamless coordination and minimal handling. Innovations such as autonomous vehicles and sustainable fuel options are shaping a greener logistics future.- Arshdeep Singh Mundi, Executive Director, Jujhar GroupTechnologyPain PointsInsufficient funding for the National Supercomputing Mission (NSM)Lack of attractive incentives for startups and companies in semiconductor designGaps in domestic chip production and R&D in AI, IoT, and HPCDeficiencies in digital infrastructure for growing connected device demandsSkills gap in advanced technologiesWish ListIncreased funding for NSM to boost high-performance computing and GPU developmentEnhanced Design-Linked Incentive (DLI) scheme to support Indigenous design and innovationStronger incentives for domestic chip production and advanced research in AI, IoT, and HPCInvestment in 5G networks and data centres to support digital infrastructure growthIndustry-academia collaborations to bridge the technology skills gapIndustry VoicesAs India aims to become a global semiconductor hub, the Union Budget 2025 must strengthen the entire semiconductor value chain—design, R&D, manufacturing, and talent development. Increased funding for the National Supercomputing Mission (NSM), with over ₹5,000 crore allocated for the next five years, is crucial for high-performance computing and GPU development. The Design-Linked Incentive (DLI) should be expanded to support startups creating indigenous designs. Additionally, enhanced incentives for domestic chip production and advanced research in AI, IoT, and HPC will be vital for achieving this vision. - Pankaj Panjwani, CEO and Founder, KeenSemi Construction ERP providers and industry leaders are advocating for tax incentives and subsidies to encourage the adoption of ERP systems and other digital tools. Such measures can significantly enhance productivity, transparency, and cost efficiency in project management, enabling businesses across the sector to thrive in an increasingly competitive environment.- Janak Vakharia, CEO, Xpedeon PowerPain PointsLack of sufficient domestic manufacturing capacity to meet rising demandSlow loan evaluation and disbursal process for residential solar projectsDelays in system installation and grid connectivity due to approval bottlenecksFragmented and inefficient approval processes for solar installationsWish ListStrengthening domestic manufacturing capacity for solar energy componentsDigitization of loan evaluation and disbursal for residential solar projectsStreamlined and standardized approval processes to expedite installationsClear government support to accelerate solar sector growth and meet targetsIndustry VoicesA stronger push for renewable energy, including offshore wind, green hydrogen, and small modular reactors (SMRs), coupled with grid expansion, viability gap funding, and single-window approvals, will accelerate the energy transition. Strengthening nuclear energy through Bharat Small Reactors (BSR) and a contingency reserve for disaster management will bolster long-term energy security. - Amit Sharma, Managing Director & CEO, Tata Consulting EngineersLast year the residential solar sector witnessed unprecedented growth driven by the government’ PM Surya Ghar Muft Bijli Yojana. The focus should be on ensuring that sufficient domestic manufacturing capacity is there to fulfil upcoming demand. In addition to this, the entire process of loan evaluation and disbursal for residential solar loans should be digitised. Finally, the government should further streamline/standardize/digitize approvals to speed up system installation and grid connectivity timelines. - Saurabh Marda, Co-founder and Managing Director, Freyr Energy