Tue Jan 28 12:12:23 UTC 2025: ## Indian Industry Optimistic Ahead of 2025 Budget, Seeking Key Policy Changes

**New Delhi, [Date]** – As India prepares for the Union Budget 2025-26, a wave of optimism is sweeping through the industrial sector, with a FICCI survey revealing that 64% of respondents are positive about the nation’s growth prospects. Participants anticipate GDP growth between 6.5% and 6.9% for the upcoming fiscal year, a slight moderation from the record highs of 2023-24 but still considered healthy considering global economic headwinds.

However, this optimism is coupled with specific demands for policy adjustments across various sectors. The upcoming budget is expected to address several key areas:

**Sustainable Packaging:** The food packaging industry is calling for increased funding and incentives for eco-friendly materials and infrastructure, aiming to boost domestic production and position India as a global leader in sustainable solutions. This includes GST exemptions for environmentally sustainable alternatives.

**Infrastructure and Real Estate:** With the government historically contributing a significant portion of infrastructure investment, the sector is seeking a substantial increase in budgetary support to incentivize private sector participation. This includes addressing challenges like high capital requirements, land acquisition hurdles, and borrowing costs. The implementation of a framework for Variable Capital Companies, as proposed previously, is also anticipated.

**MSMEs:** Further incentives and subsidies are sought to bolster the MSME sector, facilitating global expansion and aligning with the “Make in India” initiative. Addressing concerns around inflation, delayed payments, and regulatory complexities is also crucial.

**Medical Technology:** The industry is pushing for government support to promote indigenous medical technology innovation, particularly in areas like telesurgery and teleproctoring, and a review of import duties on critical components to strengthen domestic production.

**Real Estate:** Tax reliefs, increased funding, and the granting of industry status to the real estate sector are among the key demands to revitalize affordable housing and stimulate demand.

**Life Insurance:** Enhancements to tax benefits for life insurance premiums, reduced GST rates, and simplified compliance procedures are expected to make life insurance more accessible and affordable.

**Auto Industry:** GST cuts and incentives for electric vehicles are central to the auto industry’s expectations, aiming to boost the sector’s growth and competitiveness.

**Cryptocurrencies:** The Bombay Chamber of Commerce and Industry is advocating for a re-evaluation of the loss-set-off rules for cryptocurrencies to attract global investment.

**NRIs/PIOs:** The restoration of the 182-day residency rule for visiting NRIs and PIOs is being urged to simplify tax regulations.

**Income Tax:** Taxpayers are anticipating adjustments to the new income tax regime to make it more appealing, including potential relief on deductions and a reduction in the highest tax bracket. A State Bank of India analysis suggests that such a reduction, coupled with healthcare and NPS allowances, could lead to a significant revenue shortfall.

**Technology Sector:** Investments in AI, cybersecurity, and simplified tax structures for startups are key expectations to foster innovation and growth.

**Cleaner Technologies:** Increased funding for R&D in cleaner technologies and mechanisms to access global funds are vital for achieving India’s net-zero emissions target.

**Industrial Explosives:** Significant investment in infrastructure projects and rationalizing import duties on raw materials are crucial for this sector.

**Fashion Industry:** A reduction in GST on apparel and simplified e-commerce regulations are sought to boost the fashion industry’s global competitiveness.

The Union Budget 2025 is poised to be a pivotal moment, shaping the trajectory of various sectors and reflecting the government’s commitment to sustainable and inclusive growth. The expectations outlined above highlight the diverse needs and aspirations of Indian industry as it looks towards the future.

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