Indian Railways targets FMCG for freight diversification

“Increasing incomes, wider global exposure, and a desire for safe, amenity-rich communities are the demand-driving factors for premium homes in the NCR. Buyer sentiment will be further enhanced by supportive tax policies, streamlined stamp duties, and infrastructure development across important areas.”

“With better infrastructure and stable prices, these markets can grow faster if the budget boosts urban infrastructure spending, gives tax support to homebuyers, and encourages affordable housing.”

“Budget 2026 presents a clear opportunity to 'finetune a framework which supports transparency and compliance while fostering innovation' and needs to be reconsidered in lines of how Web3 has matured over the last couple of years globally.”

“Clear guidelines on permissible activities, compliance standards, and reporting obligations, such as the latest guidelines issued by FIU for exchanges operating in India, will strengthen investor confidence and help build a sustainable digital asset ecosystem.”

“A clear and consistent framework for digital assets would help strengthen trust among investors, institutions, and market participants, while enabling business to operate responsibly within well-defined boundaries.”

“A rationalisation of the current 1% TDS on crypto transactions could meaningfully improve liquidity and encourage stronger onshore participation, while a review of the flat 30% tax on VDA gains, aligned with other asset classes and allowing for loss set-offs, would create a more balanced and predictable investment environment.”

“This means the real impact is often seen over the next one to two years rather than immediately after the Budget. Companies that are closely involved in project execution and have strong government linkages are likely to benefit the most. Firms already sitting on healthy order books may see further additions, improving revenue visibility. Wagon manufacturers and equipment suppliers linked to freight and logistics upgrades could also gain. Overall, higher capex strengthens confidence in future order inflows and supports earnings stability for well-placed railway companies.”

“In terms of beneficiaries, rail infrastructure and EPC segments are likely to gain the most. These projects involve long pipelines and steady work orders. Rolling stock manufacturers should also see demand, but growth there may be more gradual. Overall, the Budget is expected to support steady, long-term growth for the rail sector rather than trigger an immediate spike in activity.”

“India’s rapid adoption of blockchain and VDA reflects both the scale of its digital economy and growing participation by retail users. Here, he feels the budget presents an opportunity to strengthen the VDA ecosystem, refine taxes, and support responsible market development.”

“Clear, consistent operating standards for VDA platforms, aligned with India’s AML/KYC and investor protection priorities, will encourage responsible capital investment, create skilled jobs, and build domestic capabilities.”

“The current tax framework presents challenges for retail participants as it taxes transactions without recognising losses and thus creates friction rather than fairness. 'Raising the TDS threshold to ₹5 lakh would help protect small investors from disproportionate impact.'”

“Any revisions for the sector in this Budget presents a great opportunity to benefit both investors and the government. 'We remain hopeful that the government will recognise this gap and consider reviewing the current framework soon.'”

“With electrification nearing completion, capital deployment is likely to be redirected toward easing congestion through new lines, gauge conversion, track doubling, and the expansion of Dedicated Freight Corridors and economic corridors linked to ports and mineral clusters.”

“Reducing TDS and allowing loss offsetting would 'encourage responsible participation, and support a transparent, and sustainable crypto ecosystem in India'.”

“The Budget presents a timely opportunity to accelerate India’s progress toward ‘Viksit Bharat’ while reinforcing the domestic consumption cycle. Measures that support consumer sentiment and disposable incomes can provide a meaningful boost to demand across sectors such as retail and real estate.”

“On February 1, 2025, the union budget is expected to provide measures to improve the real estate segment. The industry seeks tax deductions on home loan interest, better subsidies for buyers, and disbursements to reduce EMIs and risks. Such steps can drive growth and urban development while restoring demand in luxury segments.”

“The most direct and immediate tool the government has at its disposal is to bring back the 100% tax holiday for developers of affordable housing under Section 80-IBA. This incentive, which expired in 2021, was very effective at getting more developers on board to launch more affordable housing projects. A limited-period tax holiday for Section 80-IBA projects approved within a defined window (say, 24-36 months) would be a high-impact, fiscally defensible intervention.”

“On the demand side, enhancing homebuyer incentives will be important. An upward revision in the Section 24(b) home loan interest deduction, along with targeted benefits for first-time buyers, can improve affordability and sustain housing demand.”

“Continued focus on urban infrastructure, transport connectivity, and housing-linked development will be critical, especially as Tier II and Tier III markets emerge as the next engines of growth. Policy continuity, faster approvals, and incentives that encourage sustainable construction can significantly improve execution efficiency on the ground.”