Industry leaders anticipate major growth measures in upcoming Budget 2025
The industry is hopeful that the government will announce a slew of measures to boost consumption by ensuring more money in the hands of people, boosting capital expenditure
With Finance Minister Nirmala Sitharaman preparing to present the first full Budget of the Modi 3.0 government, industry players from various fields have put forth their demands for raising income tax limits, taking measures for more job creation, and further improving doing business to propel growth.
Hope for Consumption Boost
The industry is hopeful that the government will announce a slew of measures to boost consumption by ensuring more money in the hands of people, boosting capital expenditure, giving relief to the housing sector and technological innovations.
Anticipated Regulatory Changes
Moin Ladha, Partner at Khaitan & Co, opined that with the Union Budget 2025 fast approaching, the industry as a whole is confident of some interesting changes to the regulatory landscape, particularly changes to foreign investment policy, streamlined compliance, and key policy changes in certain sectors.
Potential FDI Increase in Insurance
One such key change that the Budget 2025 may bring is the introduction of 100 per cent foreign direct investment (FDI) in the insurance sector, raising it from the current 74 per cent, Ladha said. Raoul Kapoor, Co-CEO of Andromeda Sales and Distribution, said the upcoming budget carries high expectations, particularly for the middle-income group, which has been grappling with rising household expenses and inflation.
Need for Home Loan Tax Relief
"One area in dire need of attention is the tax deduction limit on home loan interest payments, which has remained unchanged since 2014. The limit was last increased from Rs 1.5 lakh to Rs 2 lakh, but in the decade since, real estate prices have escalated significantly due to rising demand, land costs, and construction expenses," Kapoor said.
Focus on Cybersecurity Investments
Sitharaman will present the Budget on February 1 in the Lok Sabha. The Union Budget for 2025-26 arrives amidst global economic uncertainties and moderating domestic growth. Against this backdrop, economists shared their expectations that could shape the government's policy in the upcoming budget.
Strengthening Cybersecurity Framework
Sunil Sapra, Founder and Chief Growth Officer of Eventus Security, anticipates a continued focus on strengthening India's cybersecurity framework. As cyber threats evolve, it is imperative for the government to prioritise investments in cybersecurity infrastructure and initiatives that enhance national resilience against emerging cyberattacks, Sapra said.
Empowering Women in Finance
Abhishek Dev, Co-founder and CEO of Epsilon Money, said the budget 2025 presents a critical opportunity to tackle urgent fiscal priorities while fostering inclusive and sustained economic growth. Noting that India lags behind global leaders like China in battery production, Ayush Lohia, CEO of LOHIA, said the 2025 budget could incentivise local manufacturing through favourable policies to attract investments in battery production facilities and provide tax incentives and subsidies to reduce dependency on imports.
Boosting Drone Adoption in Logistics
Ankit Kumar, CEO of Skye Air, was of the opinion that a key focus should be boosting the adoption of drones in the logistics sector, particularly in quick-commerce and e-commerce. Vinumon S, Founder and CEO of Thence, pitched for streamlining MSME (micro, small and medium enterprises) Samadhaan - a delayed payment monitoring system - for timely dispute resolution.
Modernizing School Infrastructure
Jasmeet Singh Chhabra, co-founder of Crimson Schools, said the school education sector is witnessing a growing need for modern infrastructure, which can be addressed through supportive policies and regulatory measures. Nishant Rathi, Founder and Director of NeoSOFT, emphasised the vital need for a strong digital infrastructure and pointed out that investments in data centres, 5G, and high-speed internet are necessary to support remote work, digital enterprises, and e-governance.
(Except for the headline, nothing has been changed by All India News Network in the PTI copy.)
