Union Budget 2025: hopes high across Indian industries

The upcoming Union Budget 2025 is highly anticipated by various sectors in India. Stakeholders have expressed optimism and laid out their expectations for governmental support in the fintech, e-commerce, IT, and data analytics industries.

Manish Kumar Goyal, the Managing Director at Ikeda, sees the budget as a pivotal juncture for the fintech ecosystem. He notes that start-ups, particularly Non-Banking Financial Companies (NBFCs), need legislative support to overcome current credit bottlenecks, which are vital for fostering financial inclusion. Goyal advocates for relaxed credit standards, diverse funding options, and tax incentives that can encourage innovation and growth within the sector. He highlights the importance of research and development tax credits and establishing innovation hubs, especially in Tier 2 and Tier 3 cities, which could invigorate entrepreneurship and create new opportunities.

Furthermore, initiatives like Skill 2.0 programmes and skill credits are seen as potential game-changers for Micro, Small, and Medium Enterprises (MSMEs), promoting a competitive and enhanced workforce. Goyal anticipates policies that bolster expansion facilitate transactions, and position India as a global hub for innovation.

Siva Balakrishnan, founder and CEO of Vserve, conveys optimism about the Indian economy during the 2025 financial year, buoyed by growing private expenditure and investments. He emphasises the growth potential within the e-commerce sector, supported by favourable consumer trends and infrastructural advancements. The budget's anticipated focus on skill development and job creation is expected to be beneficial, correlating with a rising Labour Force Participation Rate (LFPR) and decreasing unemployment rates.

Balakrishnan stresses that a skilled and employed populace equals increased discretionary income, which feeds the demand for online services and purchases. He also points out the need to stabilise rural purchasing power through measures like Direct Benefit Transfers (DBTs) and agricultural supply chain reforms, which could significantly bolster rural demand.

Piyush Goel, founder and CEO of Beyond Key, underscores the rapid growth of the Indian IT industry and the need for continued support to sustain and promote this trend. He eyes increased budgetary allocations for Research and Development (R&D) in cutting-edge fields like Artificial Intelligence (AI), Machine Learning (ML), and quantum computing, which could cement India's standing as a leader in technology.

Goel expresses the demand for tax incentives for IT start-ups and MSMEs to facilitate scaling, attract investment, and create job opportunities. Additionally, government policies prioritising investment in emerging sectors such as cybersecurity, e-commerce, and AI are keenly awaited. This support would enable transformative advancements in AI-driven solutions across sectors such as government and healthcare, fostering robust economic growth.

In data analytics, Anirudh Varshney, founder and CEO of Trailytics, notes data's crucial role in the burgeoning e-commerce and quick commerce sectors. He advocates for government incentives to support advanced analytics, such as AI and predictive modelling, which are essential for customer insights and supply chain efficiency.

Varshney envisions investments in digital infrastructures, such as 5G and IoT integration, which are critical for real-time data management in quick commerce operations. Tax benefits for analytics and tech start-ups, alongside workforce upskilling initiatives, could significantly bolster the sector's capabilities, ultimately benefiting consumers and enterprises alike.

As the Union Budget 2025 approaches, stakeholders are unified in their call for supportive measures to drive growth, innovation, and competitiveness across various sectors in India's rapidly evolving economic landscape.