Budget 2025 will focus on infrastructure, clean energy, financial stability, and job creation. Discover our expertly curated Top Movers to Pick for the Pre-Budget Rally—explore the free spreadsheet for all insights!
What to expect from Budget 2025?
The Union Budget 2025 is expected to focus on infrastructure modernization, clean energy, employment generation, and consumer demand growth. A significant portion of the budget is likely to be allocated to Indian Railways, continuing the trend of record-high capital expenditure seen in previous years. This investment will drive high-speed rail projects, station redevelopment, and the expansion of Vande Bharat trains, reinforcing the government’s push for connectivity and economic growth.
The energy sector is also expected to receive substantial support, particularly for clean and renewable energy initiatives. Experts predict increased financial backing for institutions promoting green energy, along with incentives for battery storage systems and small-scale nuclear reactors. This aligns with India’s long-term goal of energy transition and sustainability.
With the “Four Balance Sheet” challenge posing financial risks to banks, NBFCs, infrastructure companies, and real estate firms, the government may introduce measures to improve credit availability and strengthen financial stability. Economic policy reforms targeting these sectors could help boost investor confidence and economic resilience.
Additionally, employment generation is likely to be a key focus. With growing concerns about youth unemployment, both at the national level and in states like Jharkhand, the government may introduce job-creating initiatives, skill development programs, and incentives for entrepreneurship. Policies supporting MSMEs and startups could play a crucial role in this regard.
The consumer durable industry is anticipating policies that will drive demand in both rural and urban markets. While rural demand is showing signs of recovery, the government may introduce schemes to further boost spending and industrial growth, ensuring sustained economic expansion.
Top Sectors To Watch For Budget 2025
1. Railways
The railway sector is expected to receive a major boost in Budget 2025, with an estimated ₹50,000 crore allocation for new railway tracks, marking a 50% increase from the previous year. This investment aims to modernize infrastructure, enhance safety, and expand railway networks to underserved regions. With a strong focus on semi-high-speed trains like Vande Bharat, the government is also positioning railways as a sustainable transport alternative, reducing greenhouse gas emissions. The emphasis on railways over highways in infrastructure spending signals a strategic shift towards long-term efficiency, improved logistics, and economic growth through enhanced connectivity.
2. Infrastructure and Real Estate
Infrastructure development is crucial to India’s long-term growth, aligning with the Viksit Bharat @ 2047 vision. Budget 2025 is likely to continue the trend of increased capital expenditure, funding roads, bridges, ports, and airports. Real estate, a key driver of economic activity, may benefit from tax reforms, reduced GST on construction materials, and streamlined approvals for affordable housing projects. Public-private partnerships could be encouraged to meet urban housing demand, while incentives for rental housing and middle-income housing schemes may be introduced. These measures will support urbanization, job creation, and economic expansion.
3. Automobile (EVs)
The EV sector is expected to receive policy support to accelerate India’s transition to sustainable mobility. Budget 2025 may introduce incentives for battery manufacturing, EV infrastructure, and tax benefits for buyers. Schemes like FAME India and the PLI initiative have already spurred growth, but further support, such as a carbon credit trading framework, could drive deeper adoption. The push for Green Bonds may attract sustainable investments, making EV production and adoption more affordable. With rising concerns over pollution and fuel dependency, government backing could make EVs a mainstream transport solution, reducing India’s carbon footprint.
4. Healthcare and Insurance
Budget 2025 is expected to significantly increase healthcare spending, potentially raising it to 5% of GDP. This would help bridge rural healthcare infrastructure gaps, modernize district hospitals, and expand AI-based diagnostics for early disease detection. Mental health initiatives and telemedicine expansion are likely priorities, improving accessibility to quality care. The insurance sector may benefit from tax exemptions on premiums, encouraging greater policy adoption. As India aims to become the sixth-largest insurance market by 2032, technological advancements and deeper penetration into underserved regions will be key to driving long-term growth in health and general insurance.
Top Movers To Pick In This Correction
1. Maruti Suzuki India Ltd. (Maruti)
Maruti Suzuki India Ltd., established in 1981, is the leading passenger vehicle manufacturer in India. Initially a joint venture between the Government of India and Suzuki Motor Corporation (SMC) of Japan, it became an SMC subsidiary in 2002. The company dominates the Indian automobile market, producing a diverse range of vehicles, including hatchbacks, sedans, and SUVs. It also manufactures and sells auto components and spare parts. With SMC holding a 56.28% stake, Maruti Suzuki is the largest subsidiary of Suzuki in terms of production and sales, consistently driving innovation and affordability in India’s automobile industry.
2. AIA Engineering Ltd. (AIAENG)
AIA Engineering Ltd. specializes in manufacturing high-chrome grinding media, liners, and diaphragms, collectively known as mill internals. These components are crucial in crushing and grinding operations across cement, power utility, mining, and aggregate industries. The company is a global leader in this segment, providing cost-efficient solutions that improve energy consumption and productivity for industrial grinding applications. Its expertise in metallurgy and engineering innovation allows it to cater to diverse industries worldwide, ensuring durability and performance in heavy-duty manufacturing and mineral processing sectors.
3. AstraZeneca Pharma India Ltd. (ASTRAZEN)
AstraZeneca Pharma India Ltd. operates in the pharmaceutical industry, focusing on manufacturing, marketing, and distributing a wide range of medicines. A subsidiary of AstraZeneca Plc, the company specializes in therapeutic areas such as cardiovascular, oncology, respiratory, and metabolic diseases. It leverages advanced research and development to introduce innovative healthcare solutions, addressing critical medical needs. With a strong presence in India, AstraZeneca Pharma India plays a crucial role in delivering high-quality medicines and improving patient outcomes through continuous advancements in drug discovery and medical technology.
4. Redington Ltd. (REDINGTON)
Founded in 1993, Redington Ltd. is a premier distributor of IT and mobility products, offering supply chain management solutions across India, the Middle East, Turkey, and Africa. The company partners with top technology brands to distribute computing devices, networking products, software, and accessories. Redington also provides logistics, after-sales support, and cloud-based solutions to enterprises. Its extensive distribution network and efficient supply chain management have helped it become a key player in the digital transformation of emerging markets, catering to both consumer and business needs.
5. DCM Shriram Ltd. (DCMSHRIRAM)
DCM Shriram Ltd. is a diversified conglomerate engaged in manufacturing fertilizers, chemicals, cement, and other industrial products. With major manufacturing facilities in Kota (Rajasthan) and Bharuch (Gujarat), the company produces chloro-vinyl products, chlor-alkali chemicals, and fertilizers essential for agriculture and industrial applications. It also has a presence in sugar production, textiles, and rural retail businesses. DCM Shriram focuses on sustainability, efficiency, and rural development, playing a vital role in India’s industrial and agricultural growth while ensuring responsible business practices and energy-efficient manufacturing operations.
Check Out: Top Movers To Pick | Pre-Budget Rally (Spread Sheet)
What Do The Fundamentals Say About These Firms?
1. Maruti Suzuki India Ltd. (Maruti)
Maruti Suzuki has demonstrated strong financial growth over the past four years, with revenue nearly doubling from ₹75,660 Cr. in FY20 to ₹1,41,858 Cr. in FY24. Operating profit and net profit have also more than doubled, supported by an increase in operating profit margins from 10% to 13%. The company has maintained a healthy balance sheet, significantly reducing borrowings while growing reserves and fixed assets. Positive cash flow, improving from a deficit of ₹165 Cr. in FY20 to ₹874 Cr. in FY24, reflects operational efficiency and financial discipline. Maruti Suzuki remains a fundamentally strong and resilient company.
2. AIA Engineering Ltd. (AIAENG)
AIA Engineering has shown remarkable financial performance, with revenue and net profit more than doubling between FY20 and FY24. Operating profit margins have improved significantly from 23% to 28%, indicating better cost management and efficiency. The company has strengthened its working capital cycle, reducing debtor days from 84 to 66, ensuring quicker cash recoveries. A rising Return on Capital Employed (ROCE) from 19% to 23% underscores the company’s ability to generate higher returns on investments. With a solid balance sheet and improved profitability, AIA Engineering remains a strong player in its industry, demonstrating consistent and sustainable growth.
3. AstraZeneca Pharma India Ltd. (ASTRAZEN)
AstraZeneca Pharma India has shown steady revenue growth from ₹832 Cr. in FY20 to ₹1,296 Cr. in FY24, with net profit more than doubling in the same period. Operating margins have improved slightly from 15% to 16%, reflecting better cost efficiencies. A key highlight is the company’s healthy balance sheet, with borrowings nearly halving from ₹12 Cr. to ₹5 Cr., accompanied by consistent growth in reserves and fixed assets. This financial stability, coupled with a strong pipeline of pharmaceutical products, positions AstraZeneca Pharma as a robust and well-managed company in India’s growing healthcare industry.
4. Redington Ltd. (REDINGTON)
Redington Ltd. has maintained steady revenue growth, reaching ₹89,346 Cr. in FY24 from ₹51,465 Cr. in FY20. Despite stable operating margins at 2%, operating profit has doubled, and net profit has more than doubled, showcasing operational efficiency. The company has significantly reduced its debt from ₹2,775 Cr. to ₹1,724 Cr., while maintaining steady growth in reserves and fixed assets. Its strong supply chain management and strategic positioning in IT and mobility distribution ensure continued stability. With improving financial metrics and controlled debt levels, Redington remains a solid performer with a well-managed balance sheet.
5. DCM Shriram Ltd. (DCMSHRIRAM)
DCM Shriram has maintained steady revenue growth, increasing from ₹7,767 Cr. in FY20 to ₹10,922 Cr. in FY24. While operating profit has remained relatively constant, net profit has increased to ₹911 Cr. The company has improved its operational efficiency, reducing debtor days from 51 to 22 and enhancing its cash conversion cycle from 170 days to 124. This indicates better cash flow management and asset utilization. With a stable balance sheet, growing reserves, and maintained borrowings, DCM Shriram remains financially healthy. The company’s focus on operational efficiency and improving asset quality supports its long-term sustainability.
Disclaimer: This is not a buy/sell recommendation. Views expressed in this article are solely for analytical purposes. Please consult a SEBI Registered Investment Advisor before investing. Participating in the stock market includes several market risks. Please read all related documents carefully.