As India’s Finance Minister Nirmala Sitharaman prepares to present the budget for the eighth consecutive time, the common people are hoping for relief amid rising inflation, unemployment, and declining consumption.
With the economic slowdown, investors are increasingly concerned, and job opportunities have also declined. While inflation continues to rise, wages and salaries have not kept pace, particularly impacting middle- and lower-income families.
According to estimates by the National Statistical Office (NSO), India’s GDP growth rate for 2024-25 is expected to be 6.4%, the slowest growth since the post-pandemic recovery.
Infrastructure and Investment Demand
Economic analysts believe that increasing capital expenditure is crucial to boosting economic growth and job creation.
Professor Arun Kumar states, “One major reason for the slowdown in demand is the rising inequality. Around 94% of India’s workforce is employed in the unorganized sector, where stagnant wages and high inflation have significantly impacted economic momentum.”
Steel Industry Expectations
The Indian steel industry is urging the government to implement protectionist measures to curb steel dumping and strengthen domestic manufacturers.
Industry experts have suggested higher customs duties on non-FTA stainless steel imports, financial incentives, and logistics support to balance input costs and ensure a level playing field.
Reforms Needed for the MSME Sector
Loknath Seth, Director, Cybotix Digitals emphasized the need for easier loan access for SMEs, simplified IPO listing processes, and targeted interest subvention schemes to enhance global competitiveness.
He also highlighted the necessity of innovative funding models, an asset-light strategy, and corporate governance improvements for long-term sustainability.
Healthcare Sector Reforms
Dr. Deepak Verma, Managing Director & HOD Orthopedics, Sparsh Premier Multispecialty Hospital, Bhilai, stated, “The Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) has provided healthcare coverage to millions, but further reforms are needed for long-term healthcare support.”
He recommended expanding preventive healthcare services, outpatient treatment coverage, and wellness programs to reduce the hospitalization rate and ease the burden on healthcare infrastructure.
Capital Markets Reform Proposals
Sunil Kumar, Director, YC360 Consultancy, stressed, “Simplifying capital gains tax will encourage investment and reduce regulatory uncertainty.”
He also advocated for long-term tax holidays for Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) to ensure a steady capital flow into these sectors.
Investment in Technology and Innovation
Rohan Bhargav, Co-founder, CashKaro & EarnKaro, urged the government to increase R&D investments in emerging technologies such as AI, 5G, and semiconductors.
He emphasized the need for digital technology upskilling programs, a comprehensive data protection framework, and a simplified compliance structure to promote technological innovation.
Agriculture and Food Technology
Saral Jain, Director, Rachell Tech Labs, suggested that the government focus on tech-enabled solutions to enhance farm-to-table supply chain transparency.
He advocated for greater budget allocation towards AgriTech and FoodTech, integrating AI, IoT, and blockchain into the sector for efficiency and sustainability.
Textile Industry Expectations
Varija Bajaj, Founder of Varija Lifestyles, emphasized the need for a significant reduction in import duties on machinery and raw materials to enhance the competitiveness of India’s apparel and textile industry. She highlighted that high import costs have been a major hurdle for manufacturers, limiting their ability to adopt advanced technologies and scale production efficiently.
Bajaj believes that lowering these duties will enable domestic players to access state-of-the-art machinery at competitive prices, improve production quality, and reduce overall manufacturing costs. This, in turn, would strengthen India’s position in the global textile market, boost exports, and create more employment opportunities within the sector.
She urged the government to consider these policy changes in Union Budget 2025, aligning with India’s vision of becoming a global leader in textile and garment manufacturing.
Startup Sector Demands
Rohan Jain, Co-founder, The Wellness Company, highlighted the need for simplifying GST compliance, implementing R&D tax incentives, and enhancing access to funding to drive the next wave of startup growth.
Conclusion
With Union Budget 2025 on the horizon, industries, investors, and the general public have high expectations. Will the government focus on job creation, investment incentives, MSME reforms, and technological advancements? The answers will be revealed on February 1, 2025.
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