The Union Budget 2025 is set to be unveiled on February 1, and experts from various sectors are hoping for reforms that address growth, innovation, and accessibility. While each sector has unique demands, the overarching expectation is for a progressive and balanced budget that aligns with India’s long-term development goals.
Here’s what industry leaders are looking forward to:
Fintech: Supporting innovation and addressing forex challenges
An industry expert emphasised the need to nurture India’s fintech ecosystem. He called for a clear regulatory framework and the establishment of a dedicated fintech fund to accelerate innovation and skill development. He also highlighted the challenges faced by MSMEs, stressing the importance of improving access to credit for their growth.
He further pointed to the imbalance created by the 20% TCS on LRS transactions due to the surge in international credit card usage.
“Including credit cards within the TCS scope would restore fairness in the forex market and provide consumers with more affordable and convenient options,” he said.
Pharmaceutical sector: R&D and tax reforms
Another industry, called for an industry-friendly budget to strengthen India’s pharmaceutical sector.
He highlighted the importance of incentivising R&D, domestic manufacturing, and exports to enhance India’s self-reliance and global leadership.
He also urged the government to provide MSMEs in the pharma sector with better credit access, tax benefits, and reduced regulatory burdens. He stressed the need for GST rationalisation on essential medicines and investments in healthcare infrastructure to achieve universal healthcare.
Employment: Strengthening the national career service portal
An industry expert, stressed the need for employment generation and increased promotion of the National Career Service (NCS) portal.
He suggested large-scale awareness campaigns, similar to the pulse polio initiative, to connect job seekers with opportunities across startups, MSMEs, and multinational corporations.
“A centralised jobseeker database is essential to bridge the gap between talent and opportunities. Strengthening NCS will drive workforce participation and ensure employment stability,” he added.
Indirect tax and trade policy: Clarity and rationalisation
An industry expert, highlighted critical areas for tax reforms.
He called for clarity on the allowance of Input Tax Credit (ITC) for civil works and construction of immovable property, following the Supreme Court’s Safari Retreats decision.
He also urged the government to rationalise Basic Customs Duty and prepare for potential trade tensions with the U.S., emphasizing the need to protect domestic industries. In the automotive sector, he advocated for reducing GST on hybrid vehicles from 28% to 12-18% to promote cleaner mobility solutions.
He further pointed to the need for clarity on cross-border intellectual property rights (IPR) taxation. Aligning the IGST Act to treat digital IPR transfers as exports would stimulate FDI and foster innovation-driven growth.
