Budget 2025 Expectations: Finance Minister Nirmala Sitharaman is all set to present the Union Budget for 2025 on February 1. The halwa ceremony took place on January 24, sealing the budget documents. Various sectors are eagerly awaiting what the government has in store.
Software Industry’s Expectations- The software sector in India sees a huge opportunity to drive innovation and set up the country as a global tech leader. To support this growth, industry leaders suggest recognising software products and packaged software as a separate category and adjusting the tax system to make it fair and competitive. They also recommend expanding the RoDTEP scheme to help companies claim refunds on taxes paid for exports. Additionally, increasing incentives for Research & Development could boost innovation and strengthen India’s digital ecosystem.
Business and Governance - Experts believe the budget should focus on maintaining policy stability. Constant changes can disrupt businesses and long-term planning. Keeping most of the existing framework intact and improving internal governance could create a more business-friendly environment. This would be crucial for India’s goal of becoming a developed nation. A streamlined regulatory system and a single-window clearance would help industries maximize their potential and contribute to economic growth. Expanding the Production-Linked Incentive (PLI) scheme beyond its current 14 sectors could strengthen India’s industrial base and make it more resilient.
Agriculture: Agriculture remains an important part of India’s economy. To improve farmers' incomes, initiatives like One District, One Warehouse could reduce post-harvest losses and improve the supply chain. Reforms in GST, labor laws, and investments in green technologies could also help address climate change while fostering resilience.
Education India’s role in global workforce growth is set to rise, and STEM education will play a central role. To prepare for this, reforms to align education with Industry 4.0 are needed, with a focus on initiatives like the Rashtriya Avishkar Abhiyan (RAA).
Technology: Artificial Intelligence and Deep Tech As India aims to lead in AI and other emerging technologies, this budget is an opportunity to introduce policies that encourage responsible AI innovation. Establishing strong regulatory frameworks and promoting ethical AI deployment are key. Supporting deep-tech startups through a dedicated fund and improving upskilling efforts for talent are also crucial. This could help India remain competitive in the global innovation landscape.
Electric Vehicles (EVs): To make EVs more affordable, reducing GST on manufacturing inputs and adjusting the current 28 percent tax rate could lower production costs. Policies that promote green financing and make EV loans more accessible would further drive adoption. Boosting local manufacturing and advancing battery technologies could reduce reliance on imports. Expanding the EV charging infrastructure will make India a leader in clean mobility.
Economic Growth and Development India's GDP is expected to continue growing beyond 6 percent for the seventh consecutive year. However, to build a thriving, developed nation, there needs to be more investment in critical areas like infrastructure, climate change adaptation, and rural development. Stronger institutions, particularly in higher education, will be key to this process.
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