As the Union Budget 2025 approaches, the industry and trade sectors are keenly awaiting policies that will stimulate economic growth, enhance ease of doing business, and address prevailing challenges across various industries.
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Tuesday 28 Jan. 2025
Shri Dipen Agrawal, President of the Chamber of Associations of Maharashtra Industry & Trade (CAMIT), emphasized the need for a comprehensive roadmap to foster sustained industrial growth, particularly in regions like Vidarbha and Marathwada, which possess significant potential but require targeted policy interventions.
10 Key Expectations from the Union Budget 2025:
- Income Tax Reforms: The industry anticipates income tax cuts to stimulate economic growth. Notably, a reduction in income tax rates for individuals earning between ₹10 to ₹20 lakh annually is expected to boost consumer discretionary demand, benefiting sectors such as consumer goods and automotive industries.
- Support for MSMEs: Enhanced credit access, interest subvention, and targeted incentives for Micro, Small, and Medium Enterprises (MSMEs) are crucial. The introduction of Production-Linked Incentive (PLI) schemes for sectors like textiles, garments, handicrafts, food processing, leather, electronics, and auto components is anticipated to strengthen the MSME sector.
- Agricultural Advancements: A significant increase in the agriculture sector’s budget by over 15% is expected, focusing on high-yield seed varieties, improved storage and supply infrastructure, and enhanced production of pulses, oilseeds, vegetables, and dairy. These initiatives aim to support rural incomes and control inflation.
- Incentives for Industrially Backward Regions: Special packages, infrastructure development, and tax benefits to attract investments in regions like Vidarbha and Marathwada, ensuring balanced economic development.
- Infrastructure Development: Innovative measures to boost infrastructure are anticipated, including alternate funding sources like tax-free bonds and tax-paid bonds. This approach could lower financing costs and accelerate infrastructure projects.
- Taxation and Compliance Simplification: The industry looks forward to the rationalization of Goods and Services Tax (GST) rates and streamlined compliance procedures to reduce the administrative burden on businesses.
- Green Economy Initiatives: The introduction of a green taxonomy to channel funds towards India’s climate commitments and the establishment of a Disaster Pool to manage risks of natural disasters are expected to promote sustainability and resilience.
- Trade Facilitation & Logistics Development: Reduction in logistics costs through better infrastructure, simplified trade regulations, and digitalization of processes to enhance export competitiveness.
- Relief from Compliance Burden: Streamlining regulatory procedures, reducing the frequency of returns and audits, and ensuring a business-friendly environment to promote entrepreneurship.
- Strengthening the Manufacturing & Retail Sectors: Policies to boost domestic manufacturing, promote Make in India initiatives, and protect local traders from unfair competition.
Shri Agrawal further stated that a progressive and growth-oriented budget will not only drive economic expansion but also empower businesses to contribute more effectively to employment generation and national development.
CAMIT urges the Finance Minister to consider these expectations while formulating the budget and looks forward to measures that will strengthen India’s industry and trade ecosystem.
