New Delhi, The Union Budget for FY25 should focus on providing relief to taxpayers, especially in lower income brackets, to boost consumption, industry players have suggested.
Finance Minister Nirmala Sitharaman is scheduled to present the full budget for fiscal year 2024-25 on July 23, which will be the first major policy document of the new government.
The industry also urged the finance minister to reduce corporate tax, phase out tax exemptions and broaden the tax base to boost economic growth.
"Rationalize and simplify the tax system to improve compliance and promote investment. Consider measures such as reducing corporate tax rates, phasing out tax exemptions and broadening the tax base to make the tax regime more efficient and equitable," Assocham said .
Ratings agency ICRA said the government is likely to set a fiscal deficit target of 4.9-5 per cent for FY25, up from 5.1 per cent estimated in the February 1 interim budget, without commit to the capital expenditure target of Rs 11.1 lakh crore.
"While favorable developments on the revenue front augur positively for fiscal dynamics in FY2025, ICRA believes that fiscal consolidation will become quite challenging beyond the current fiscal year," the rating agency said.
Mayank Gupta, co-founder and chief operating officer of Zopper Insurtech, said the budget is expected to focus on policies to promote economic growth and provide relief, especially to lower-income groups, to spur consumption.
"From an insurance point of view, we suggest amending section 80C of the Income Tax Act to allow a higher limit on insurance premium payments, thereby encouraging more people to purchase insurance products. Furthermore, we also There should be a margin of deduction for term life insurance under the new tax regime," he said.
Anish Mashruwala, partner at JSA Advocates and Solicitors, said the NBFC sector expects some ease of doing business considering the multitude of regulatory compliances.
"Of course there is a need to strike a balance in terms of oversight and hopefully this is something that the government will skillfully consider," Mashruwala said.
Rumki Majumdar, an economist at Deloitte India, suggested that the government should expand the reach of PLI schemes, especially in sectors that can create more jobs, such as textiles, handicrafts and leather.
Plans should continue in sectors that have been successful, such as electronics, automobiles and semiconductors, Majumdar added.
On the Finance Minister's expectations, Vishal Goel, Managing Director, RX Propellant, said the life sciences sector has immense potential and has been attracting global players not only to leverage the strength of contract manufacturing but also to establish global capability centers (GCC).
"We are optimistic that the upcoming budget announcement will prioritize the life sciences sector, improving investment flows and driving innovation and success in India," Goel said.
Pankaj Sharma, CEO of Religare Finvest, expects measures to reduce the cost of financing through interest rate subsidies, facilitate access to credit, especially for new credit entrepreneurs, through policy measures and comprehensive tax reliefs for the MSME sector.
"Investment in digital infrastructure and skill development is crucial to equip MSMEs with the latest technology and boost productivity," Sharma said.
Assocham has also suggested structural reforms in the agricultural sector to improve productivity, market access and income opportunities for farmers.
He also suggested promoting contract farming, investing in agricultural infrastructure, facilitating value chain integration and encouraging diversification into high-value crops.
Finance Minister Nirmala Sitharaman is scheduled to present the full budget for fiscal year 2024-25 on July 23, which will be the first major policy document of the new government.
The industry also urged the finance minister to reduce corporate tax, phase out tax exemptions and broaden the tax base to boost economic growth.
"Rationalize and simplify the tax system to improve compliance and promote investment. Consider measures such as reducing corporate tax rates, phasing out tax exemptions and broadening the tax base to make the tax regime more efficient and equitable," Assocham said .
Ratings agency ICRA said the government is likely to set a fiscal deficit target of 4.9-5 per cent for FY25, up from 5.1 per cent estimated in the February 1 interim budget, without commit to the capital expenditure target of Rs 11.1 lakh crore.
"While favorable developments on the revenue front augur positively for fiscal dynamics in FY2025, ICRA believes that fiscal consolidation will become quite challenging beyond the current fiscal year," the rating agency said.
Mayank Gupta, co-founder and chief operating officer of Zopper Insurtech, said the budget is expected to focus on policies to promote economic growth and provide relief, especially to lower-income groups, to spur consumption.
"From an insurance point of view, we suggest amending section 80C of the Income Tax Act to allow a higher limit on insurance premium payments, thereby encouraging more people to purchase insurance products. Furthermore, we also There should be a margin of deduction for term life insurance under the new tax regime," he said.
Anish Mashruwala, partner at JSA Advocates and Solicitors, said the NBFC sector expects some ease of doing business considering the multitude of regulatory compliances.
"Of course there is a need to strike a balance in terms of oversight and hopefully this is something that the government will skillfully consider," Mashruwala said.
Rumki Majumdar, an economist at Deloitte India, suggested that the government should expand the reach of PLI schemes, especially in sectors that can create more jobs, such as textiles, handicrafts and leather.
Plans should continue in sectors that have been successful, such as electronics, automobiles and semiconductors, Majumdar added.
On the Finance Minister's expectations, Vishal Goel, Managing Director, RX Propellant, said the life sciences sector has immense potential and has been attracting global players not only to leverage the strength of contract manufacturing but also to establish global capability centers (GCC).
"We are optimistic that the upcoming budget announcement will prioritize the life sciences sector, improving investment flows and driving innovation and success in India," Goel said.
Pankaj Sharma, CEO of Religare Finvest, expects measures to reduce the cost of financing through interest rate subsidies, facilitate access to credit, especially for new credit entrepreneurs, through policy measures and comprehensive tax reliefs for the MSME sector.
"Investment in digital infrastructure and skill development is crucial to equip MSMEs with the latest technology and boost productivity," Sharma said.
Assocham has also suggested structural reforms in the agricultural sector to improve productivity, market access and income opportunities for farmers.
He also suggested promoting contract farming, investing in agricultural infrastructure, facilitating value chain integration and encouraging diversification into high-value crops.
