Tue Jan 28 09:49:04 IST 2025: ## India’s Budget 2025: A Focus on Manufacturing, Tax Reform, and Digital Growth

**New Delhi, [Date]** – As India awaits the Union Budget 2025, numerous sectors are voicing their expectations for reforms and policy changes. The upcoming budget, to be presented on February 1st, is anticipated to address key challenges across various sectors and drive economic growth.

**Make in India Momentum:** Several industry leaders advocate for continued support of the “Make in India” initiative through the expansion of Production-Linked Incentive (PLI) schemes. The success of existing PLI schemes, with ₹1.46 lakh crore in investments generating ₹12.50 lakh crore in production and 9.5 lakh jobs, has underscored their effectiveness. Proposals include broadening PLI scheme eligibility to include more industries and startups.

**Taxation Overhaul:** Significant attention is focused on simplifying income tax compliance. Experts predict a continued phasing out of the old tax regime in favor of the newer, simpler system, though the old regime might remain an option for a few more years. Suggestions include adjustments to tax slabs and rates, higher deductions for health insurance and pensions, and a potential increase in the tax threshold. The high GST on online gaming and the impact of the 30% tax on crypto income are also key concerns. Furthermore, calls for the removal of GST on accounting software and a reduction in GST on hair transplant treatments are part of the ongoing discussion.

**Digital Economy and Infrastructure:** The budget is expected to address the burgeoning digital economy with a focus on aligning crypto policies with global frameworks. This includes revisiting the 30% tax on crypto income and 1% TDS, and recognizing crypto as a formal asset class. Other calls for digitalization include the improvement of the faceless tax assessment system, removal of GST on certain services and further investment in digital health solutions such as telesurgery. Investments in infrastructure are also heavily sought after, particularly in relation to transportation, addressing logistics cost issues within the edible oil sector, and expanding rural internet access. Additionally, several sectors are seeking industry status recognition to boost investment and employment.

**Other Key Expectations:** The budget is anticipated to address crucial issues in various other sectors, including:

* **Real Estate:** Reforms beyond RERA, incentivising timely project completion, and rationalizing stamp duty rates are key demands.
* **Education:** Increased public funding, enhanced digital infrastructure, and improved access to higher education are prioritized.
* **Tourism:** Support for niche tourism segments, improved regional connectivity, and GST simplification are sought.
* **MSMEs:** Improved access to capital, simplified business operations, and technology adoption are highlighted.
* **Agriculture:** Increased investment in technology, including drones and AI, and support for agricultural startups.
* **Healthcare:** Increased spending, support for digital health solutions, and relief from import duties on medical equipment.

The upcoming budget is expected to significantly impact several areas of the Indian economy. The government’s ability to balance competing demands and create a coherent and effective policy framework will be crucial in driving sustainable growth and achieving its ambitious economic goals.

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