Budget 2025 Expectations: As the Union Budget 2025 approaches, industry leaders await the new schemes and more budget allocation for their respective sectors. Union Finance Minister Nirmala Sitharaman is set to present the first Union Budget of the Modi 3.0 government, mainly at the end of July. Anticipated to build upon the interim budget earlier presented in February 2024, preparations have included multiple pre-budget consultations with industry representatives throughout June.
Here are some of the key expectations that different industries are looking forward to in the upcoming budget.
MSME
The MSME sector’s leaders anticipate that the current government will prioritise policies that support the masses. “The upcoming Budget, in my view, will likely focus on continued support for infrastructure projects and the agricultural sector,” said Ratish Pandey, Founder and Business Coach at Ethique Advisory.
He added, “With inflation under control, the Reserve Bank might adjust fiscal policy and interest rates. However, funding challenges remain prevalent in the start-up sector. The MSME sector, which contributes a healthy 30 per cent to the national GDP, continues to face significant headwinds, especially in retail. In my daily interactions with MSME entrepreneurs, I observe two primary challenges: cash flow and ease of doing business.”
Pandey further elaborates that the forthcoming Union Budget should incorporate measures to promote enhanced IT infrastructure for MSMEs, such as providing one-time deductions for IT hardware and software investments. This initiative would empower MSMEs to leverage modern technological tools like CRM, AI, and efficient supply chain systems.
“On the ease of doing business front, improvements to GSTN systems, integration of e-invoicing and e-way bills, as well as the provision of softer loans or fiscal reliefs under income tax for investments in building plants and machinery, should be considered. Lastly, greater clarity on the policy regarding 45-day credit payouts to registered MSMEs would be a welcome step,” he said.
Healthcare
Healthcare sector stakeholders suggest increasing healthcare spending in the upcoming budget. Dr Sabine Kapasi, Co-Founder and MD at Enira Consulting, said, “As preparations for the 2024-25 budget unfold, healthcare sector stakeholders are calling for significant reforms. They suggest increasing healthcare spending to 3 per cent of GDP, improving infrastructure in rural and underserved areas, and strengthening preventive healthcare.”
“Addressing the shortage of healthcare workers through better training and working conditions is also essential,” she added.
She emphasised that critical priorities are expanding health insurance coverage, integrating advanced technologies like telemedicine and digital health records, and adhering to the India Digital Personal Data Protection Act of 2023. The interim budget’s emphasis on emerging technologies like AI and machine learning underscores the sector’s drive towards modernisation.
“In terms of tax policy, it is important to incentivise local manufacturing and R&D activities. Providing clarity on GST for business expenses and aligning rates for pharmaceutical ingredients are crucial for operational efficiency. Simplifying regulations and offering incentives for innovation and skill development can strengthen India’s healthcare capabilities and competitiveness,” Kapasi said.
The Union Budget 2024-25 presents a pivotal opportunity to fulfil these aspirations and bolster India’s healthcare system. Through investments in infrastructure, technology, human resources, and robust regulatory frameworks, the government can enhance public health outcomes and foster the advancement of the pharmaceutical industry, she opined.
Also Read: Budget 2024: Salaried Class Calls For Tax Adjustments, HRA Relief, EV Incentives
Green Energy
India is on a mission to be zero by 2070, and this will be achieved with additional support and funding in the upcoming budget.
“The sector must see an exponential increase in investments. I hope the forthcoming Union Budget will facilitate the ecosystem for this. With a robust investment inflow enabled by policy stimulus, the sector can add 50-60 GW annually from the present 10 GWs to 15 GWs. Higher loan capital is vital for this. With financial infrastructure and a streamlining of land acquisition, I am confident of incremental market depth and scope, which has a direct bearing on the sector. Besides this, an often overlooked area that we should consider is dedicated transmission corridors along the lines of the Green Energy Corridor (GEC) for renewable power evacuation. This will go a long way in addressing power evacuation issues faced by hydropower developers, especially in the northeast,” said Udit Garg, CEO and Director of Kundan Green Energy.