Expectations from Budget 2025: Addressing Key Industry Concerns
As the 2024-25 Union Budget approaches, industry leaders and stakeholders have high expectations from Union Finance Minister Nirmala Sitharaman. The Micro, Small, and Medium Enterprises (MSME) sector, in particular, is hopeful that the budget will address long-standing issues such as income tax reforms and industrial land availability. Surveys conducted by the Mahratta Chamber of Commerce Industries and Agriculture (MCCIA) indicate optimism within the MSME sector, with many units projecting double-digit growth. However, several bottlenecks remain, which industry representatives hope will be resolved in the upcoming budget.
MSME Sector’s Call for a Special Booster Package
Sandeep Belsare, President of the Pimpri Chinchwad Small Scale Industries Association, emphasized the need for a special booster package for the MSME sector. According to Belsare, “The sector is now going through a plateau, and this package would help kickstart growth.” Given the pivotal role MSMEs play in employment generation and economic expansion, such measures could provide a much-needed stimulus.
Demand for Higher Income Tax Slabs and Credit Expansion
Another key demand from industry leaders is the revision of income tax slabs to enhance savings and disposable income. By increasing the tax exemption limits, businesses believe consumer spending will rise, subsequently fueling economic growth.
The credit outlay for MSMEs has witnessed a positive trajectory as businesses regain momentum. However, industry players continue to express concerns over bureaucratic hurdles that hinder seamless access to financial resources. Addressing these bottlenecks in the budget could significantly improve the ease of doing business.
Availability of Industrial Land: A Crucial Challenge
A persistent challenge faced by startups and manufacturing units is the limited availability of industrial land at economical rates. Abhay Bhor, President of the Federation of Small Scale Industries Association, highlighted the urgent need for policies that facilitate land acquisition for micro and small enterprises. “Since the last five years, a large number of micro units have shut down. The finance minister should introduce measures to revive these units, as they serve as vital employment generators,” Bhor stated.
Luxury Car and Technology Sectors Seek Growth-Oriented Policies
Beyond MSMEs, major industry players from the automobile and technology sectors have voiced their expectations from Budget 2025. Luxury car manufacturer Mercedes-Benz is advocating for enhanced infrastructure development and incentives for research and development (R&D). Managing Director and CEO Santosh Iyer emphasized the importance of reducing trade barriers and streamlining regulatory frameworks to strengthen India’s position in global markets.
Similarly, Tata Technologies CEO and MD Warren Harris called for policies that prioritize innovation and invest in emerging technologies. “Key growth drivers such as smart manufacturing, AI, digital transformation, and software-defined vehicles (SDVs) require strong government backing through incentives for R&D, skill development, and infrastructure enhancement,” he said. Harris also recommended increased budget allocations toward upskilling initiatives aligned with Industry 4.0, ensuring a future-ready workforce equipped with expertise in AI, IoT, and cybersecurity.
Conclusion
The upcoming Union Budget 2025 holds significant potential to address crucial concerns across various sectors. By introducing targeted measures such as income tax reforms, special booster packages for MSMEs, improved access to industrial land, and increased incentives for R&D and innovation, the government can facilitate sustained economic growth and global competitiveness.
Disclaimer
This article is for informational purposes only and does not constitute financial or investment advice. Stakeholders and industry representatives should consult relevant authorities for specific policy details and implications.
