Union Budget 2025 Wishlist: Key Reforms Sought by Insurance, Plastics, and EV Sectors Amid Rising Economic Expectations
As the Union Budget 2025 approaches, the insurance sector, MSMEs, and sustainable energy advocates have presented a strong case for transformative reforms.
Industry experts are eager for measures to address challenges like health insurance penetration, taxation burdens, and energy innovation.
Health Insurance Sector’s Plea for Reforms
The insurance industry is urging the government to reduce GST on health insurance premiums and introduce higher tax exemptions to make healthcare accessible and affordable.
Additionally, leaders propose the establishment of a dedicated health regulator to manage escalating medical costs.
Ridhima Kansal, Director of Rosemoore, highlights the need for tax adjustments to aid MSME retailers. She advocates for streamlined GST structures, reduced compliance burdens, and initiatives like tax rebates for small retailers embracing digital platforms.
Kansal also suggests creating a fund for low-interest loans to boost working capital and drive growth in the MSME sector.
Calls for Bold Measures Amid Economic Slowdown
The Congress party has expressed concerns over a downward revision in GDP growth estimates, which it interprets as a sign of economic deceleration.
AICC General Secretary Jairam Ramesh emphasizes the need for urgent interventions, including income support for the poor, higher MGNREGA wages, and increased MSPs.
Ramesh also calls for simplifying the “comically complex” GST system and providing tax relief to the middle class.
Aditya Sesh of Basiz Fund Services anticipates modest changes in tax exemptions, including a possible increase in the minimum tax slab under the new regime.
Real Estate Sector’s Wishlist
Ashish Kukreja of Homesfy emphasizes the importance of supporting India’s real estate sector.
He proposes raising the tax exemption limit on housing loans from ₹2 lakh to ₹5 lakh and reinstating the Credit Linked Subsidy Scheme (CLSS) for first-time homebuyers.
Kukreja also suggests reinstating the 100% tax exemption for affordable housing projects to stimulate demand and promote sustainable growth.
Green Hydrogen: A Path to Sustainability
Sandeep Agarwal of Greenzo Energy underscores the importance of government initiatives to make green hydrogen economically viable.
He recommends subsidies, tax incentives, and mandating a 20% substitution of fossil fuel imports with green hydrogen. Agarwal advocates for revising the Production Linked Incentive (PLI) scheme to simplify compliance and prioritize production.
He further calls for removing import duties on equipment related to green hydrogen, investing ₹1,000 crore in testing and certification labs, and introducing subsidies for solar-powered hydrogen production.
Economic Context and Upcoming Budget Presentation
India’s electricity generation growth slowed in 2024, reflecting broader economic challenges. Data from Grid-India shows an annual increase of just 5.8%, with growth declining sharply in the second half of the year.
This slowdown aligns with the country’s slowest economic growth in nearly two years, as recorded in the September quarter.
Finance Minister Nirmala Sitharaman is expected to present the Union Budget 2025 on February 1, marking her eighth consecutive budget presentation and the second full budget under Modi 3.0. However, an official announcement is still awaited.
Sectoral Consultations and Stakeholder Engagement
The Finance Ministry concluded month-long consultations with industry stakeholders on January 6, 2025. Over 100 representatives from sectors including agriculture, trade, education, health, MSMEs, and energy participated in these discussions.
“The consultations started on December 6, 2024, and included input from diverse stakeholder groups,” noted a Finance Ministry statement.
These inputs are expected to shape the final budget, reflecting the needs of key voter demographics while balancing fiscal prudence.
Union Budget 2025 holds the potential to address critical challenges across sectors, from health insurance and MSME growth to real estate and sustainable energy.
With stakeholders voicing their priorities, Finance Minister Sitharaman’s announcements will be closely watched as they shape the country’s economic trajectory.
