Relief and Growth: What Industry Leaders Expect from Union Budget FY25

Industry leaders are urging Finance Minister Nirmala Sitharaman to focus on tax relief for lower-income groups and consider measures to stimulate economic growth. The upcoming Union Budget FY25, set to be presented on July 23, is expected to address corporate tax reform, infrastructure investment, and promoting various sectors including life sciences and MSMEs.

Industry leaders are urging Finance Minister Nirmala Sitharaman to offer tax relief for lower-income groups in the Union Budget FY25, which is set to be presented on July 23. They believe this will help stimulate consumption and boost economic growth.

The industry has also called for lowering corporate tax rates, phasing out tax exemptions, and broadening the tax base. Assocham emphasized rationalizing and simplifying the tax system to improve compliance and promote investment.

Rating agency ICRA anticipates a fiscal deficit target of 4.9-5% for FY25, while maintaining the capital expenditure target. Co-Founder and COO of Zopper Insurtech, Mayank Gupta, suggested amending the Income Tax Act to boost insurance product purchases. Other industry voices highlighted the need for ease in regulatory compliance for the NBFC sector and suggested expanding PLI schemes for job-creating sectors.

(With inputs from agencies.)