Reforms expected from FM Nirmala Sitharaman

Expectations from Union Budget 2025-26

Shefali Mundra, Tax expert- ClearTax
As the Union Budget approaches, there’s growing anticipation that Finance Minister Nirmala Sitharaman will enact reforms to benefit the vast and diverse populace of taxpayers in India. The current tax system includes a wide array of sections, deductions, and exemptions, which poses significant challenges for taxpayers.
This forthcoming budget is anticipated to roll out several key reforms designed to streamline the tax experience in India. Expected changes include establishing a straightforward residence rule that distinguishes between residents and non-residents more clearly, implementing a unified tax structure that levels the playing field for domestic and international companies alike, and clarifying the tax timeline by consolidating the financial and assessment years into a single, understandable term. Moreover, the budget seeks to simplify the overall tax structure to make it more transparent and less cumbersome, facilitating easier compliance for both individuals and enterprises. These reforms are expected to significantly ease the tax filing process, making it more straightforward than ever before.

Gregory Goba Ble, Head of UPS India & Director, MOVIN Express
Investments in the logistics sector can support India’s trade goals, enhance economic efficiency and encourage MSMEs to scale-up. To further strengthen India’s position in global markets, achieve the objective of National Logistics policy, and reach the export target of US$2 trillion by 2030, the thrust should be to simplify export compliance procedures and reduce regulatory cost for logistics players. We hope to see measures to expedite e-commerce clearances and simplify cross-border online transactions. There needs to be increased budget allocation for the healthcare sector, which relies heavily on a robust and integrated logistics network. This will ensure efficient delivery of medical supplies and increase the sector’s overall effectiveness to cater to pharmaceutical and patient requirements. In the earlier budgets, the Government has announced programs and initiatives to support MSMEs and we expect that to continue. We hope MSMEs, especially in the tier 2-3 cities, are further empowered with capital and technology adoption for them to compete in global markets.

Budget Expectation Quote by Amar Nagaram, Founder and CEO, VIRGIO
As the Union Budget FY25-26 approaches, we at Virgio are eager to see a focus on innovation, sustainability, and inclusive growth, which are essential for shaping the future of India’s entrepreneurial ecosystem. We remain optimistic that the government will continue fostering an environment where businesses like ours can significantly contribute to the nation’s economic and environmental goals.
For D2C start-ups, we hope for initiatives that enhance access to affordable logistics, robust digital infrastructure, and streamlined cross-border trade, enabling international scalability. Expanding tax incentives, simplifying compliance frameworks, and introducing funding schemes to drive innovation in technology and sustainability would be invaluable. Targeted measures to improve credit accessibility, encourage digitization, and reduce the overall cost of operations would be transformative. Encouraging collaborations between MSMEs and larger corporations can further catalyze long-term economic growth.
On the sustainability front, we look forward to policies that incentivize the adoption of green technologies, promote renewable energy investments, and support circular economy initiatives. Such measures will not only help industries align with India’s ambitious climate goals but also ensure a future that is environmentally conscious and economically resilient.