Parul Mittal, director at Greenlam Industries, explains the impact of Budget 2025 and outlook for the Indian home improvement industry.
The Union Budget 2025 has brought a range of policy measures that promise to shape the future of India’s housing and home improvement sector. As the industry looks ahead, the announcements in this year’s budget provide optimism and a renewed focus on infrastructure development, consumer spending, and sustainability—key factors driving growth in the home and interior industry.
Key Budget Announcements Impacting the Home Improvement Industry
Increased Disposable Income for Consumers
One of the most significant highlights of Budget 2025 is the revision in income tax slabs, exempting individuals earning up to ₹12 lakh per annum. This move enhances disposable income, encouraging consumer spending on home improvements, renovations, and interior décor. With greater financial flexibility, homeowners are likely to invest in upgrading their living spaces, increasing the demand for interior products like decorative laminates, decorative veneers, wooden flooring & doors, furniture, and modular kitchen solutions.
Boost to Housing and Real Estate
Benefits under the affordable housing segment will further drive residential demand, impacting associated industries such as home improvement, laminates, and interior design. The government’s allocation of ₹150 billion to complete stalled housing projects under the SWAMIH Fund will expedite home ownership for thousands of buyers. This means a faster turnaround in home sales and an uptick in demand for interior solutions, including eco-friendly laminates and premium finishes.
Investment in Urban Infrastructure
A landmark move in this budget is the establishment of a ₹1 trillion Urban Challenge Fund to enhance urban living standards. Infrastructure development in tier-2 and tier-3 cities is expected to create demand for high-quality interior products, as new homes and commercial spaces come up across these expanding regions. As developers focus on modern designs, demand for aesthetically appealing, durable, and sustainable surface solutions will surge.
Sustainability and Green Initiatives
The government’s focus on green development, with significant incentives for sustainable construction materials and energy-efficient buildings, aligns with the growing consumer preference for eco-friendly products. The Indian home improvement industry is witnessing a shift toward sustainable products that enable the development of green building infrastructure, with no impact on the environment. At Greenlam Industries, we are committed to developing high-performance, environment-friendly solutions that are good for the planet and good for people. These solutions exhibit special features like energy conservation, low carbon & VOC emissions, and ensure a more hygienic living with properties like anti-bacterial and anti-virus. Not just that, Greenlam is committed to the larger goal of sustainability to ensure better use of resources.
Tax Incentives for Second Homes
Another encouraging move is the exemption of national rental income taxation on a second self-occupied home. This will likely drive investment in secondary residences, boosting the demand for interior products and high-end furnishings. Many homeowners will look at enhancing the aesthetics and durability of their additional properties, leading to growth in premium laminate, veneer, and other surface solutions.
Outlook for the Home Improvement Industry
With these budgetary provisions in place, the outlook for the home improvement industry in India remains strong. Here are some key trends that will shape the sector’s future in the coming years:
Rise of Smart and Sustainable Homes
As sustainability gains prominence, homebuyers and developers alike are prioritising materials that are durable, non-toxic, and environmentally friendly. The demand for laminates with antimicrobial, heat-resistant, and abrasion-resistant qualities is expected to rise. Consumers are increasingly looking for functional, low-maintenance, and aesthetically superior solutions.
Growth of Organised and Branded Interior Solutions
The shift towards organised home improvement brands is evident as consumers seek quality assurance, consistency, and innovative designs. Greenlam Industries, for instance, has been at the forefront of delivering top-quality laminates and surfaces that meet global standards. The growing preference for branded laminates, modular furniture, and high-end finishes is a sign of an evolving market that values durability and premium aesthetics.
Expansion in Tier-2 and Tier-3 Cities
With rapid urbanisation, real estate development is extending beyond metros. The government’s focus on smart cities and urban transformation presents an excellent opportunity for home improvement brands to cater to emerging residential and commercial markets. These cities will witness a surge in demand for innovative interior solutions that blend functionality with modern aesthetics.
Digital Transformation in Home Décor
E-commerce platforms and digital visualisation tools are making it easier for consumers to explore and purchase home improvement products. Virtual showrooms, AR/VR-based design simulations, and AI-powered customisation tools are revolutionising how homeowners and architects choose materials. Greenlam Industries is leveraging these advancements to provide customers with immersive buying experiences.
The Influence of DIY and Personalisation
With more digital inspiration sources such as Pinterest, Instagram, and home décor blogs, consumers are more inclined to personalise their spaces. The DIY trend is gaining traction, with homeowners looking for easy-to-install solutions such as peel-and-stick laminates, modular cabinetry, and customisable furniture options.
Budget 2025 has set a strong foundation for growth in the Indian home improvement industry by boosting disposable incomes, revitalising real estate, and reinforcing urban infrastructure. With the evolving market trends, we are excited about the opportunities that lie ahead, and we remain committed to delivering high-quality, sustainable interior solutions that cater to India’s dynamic housing landscape.
The coming years will see an accelerated transformation in the way homes are designed and built. With government support, evolving consumer preferences, and technological advancements, the home improvement industry is poised for sustained growth and innovation.