The Union Budget, set to be presented on February 1, may focus on creating new employment opportunities. Industry experts suggest that the government should invest in and encourage infrastructure, hospitality, the startup ecosystem, edtech, and the MSME sector to promote employment and skill development. Finance Minister Nirmala Sitharaman will present the Union Budget 2025 in the Lok Sabha on February 1.

Expectations of the Hospitality Sector

Manbir Chaudhary, CMD of Noormahal Group, said, “The hospitality sector plays an important role in creating jobs and supporting the economy. The Union Budget 2025 can help this industry grow and support India’s goal of becoming a developed country by 2047.”

He said the main demand is to give the hospitality sector “industry status,” which will make it easier to get funding. He also suggested allocating funds to improve infrastructure, which will help promote tourism in tier-2 and tier-3 cities.

Gaurav Gaggar, founder of T9L Cube, said the main concern is startups. Removing the angel tax was a big step, but more such steps are needed. He suggested simplifying rules for foreign investments, improving access to credit, and focusing on research and development to boost innovation.

What Startups Can Expect

Aman Dhall, angel investor and founder of Comscredible, said Finance Minister Nirmala Sitharaman should support ‘Startup India’ by offering tax benefits and simplifying processes.

He said, “We expect changes to tax exemptions under Section 80-AIAC in the 2025–26 budget. Right now, only 1% of the 1.6 lakh recognized startups benefit from it. Because of this, ‘Startup India’ is just a label and doesn’t offer real benefits.”

Focus on New Skills Like AI

Naman Jain, Vice-President of Silverline Prestige School, said the government should invest in skills for new areas like data science, renewable energy, and artificial intelligence (AI). He said this will help with economic growth, as unemployment is high because many workers lack skills.

Prioritize Skill Development

Gagan Arora, founder and CEO of Vertex Global Services, referred to a McKinsey study showing that India needs better employment numbers to achieve GDP growth of 7–8% every year. He suggested that the government should focus on creating more jobs and improving skills to help India become the third-largest economy by 2030.