Rama Krishna Sangem
As the finance ministry concluded nine rounds of pre-budget consultations with various stakeholders on Monday, steps to boost consumption and employment growth, tax concessions—from individuals to MSMEs—and wide-ranging reforms have formed the broad theme of the suggestions, said a Business Standard story.
The Union Budget for FY2025-26 assumes significance as it comes on the back of lower-than-expected growth numbers in the second quarter and geopolitical uncertainty. Stakeholders ranging from economists and business owners to traders and farmers expect the upcoming budget to address concerns around investment, inflation, infrastructure, as well as measures to improve ease of doing business for various sectors.
Economists have called for a manufacturing policy to boost growth and employment, as well as supply-side measures such as cold chain storage at the local level to tackle food inflation in the FY26 Budget.
Over 100 experts consulted
Pre-budget consultations with Finance Minister Nirmala Sitharaman and top finance ministry officials have seen participation from more than 100 experts from various sectors.
Industrialists and economists alike have advocated increased capex spending and tax exemptions to spur demand and increase the purchasing power of the people. Both stakeholder groups, in separate discussions, have suggested ways to improve skilling initiatives, such as setting up universities at the district level and for MSMEs with integrated townships.
The Confederation of Indian Industry, for instance, has proposed tax exemptions for individuals earning up to Rs 20 lakh annually and a reduction in excise duties on petrol and diesel to alleviate the financial burden on consumers and businesses.
The finance ministry’s discussions with the trade sector have also been crucial in the run-up to the Budget FY2026, amid the Donald Trump regime taking over in the United States (US). Exporters have urged the finance ministry to approve a US-focused marketing scheme worth Rs 750 crore to generate additional exports of around $25 billion in America over the next three years.
The exporters have called for the continuation of the export-boosting scheme—interest equalisation, which is operational till December 31—additional funds for marketing and trade promotion of certain export items, income tax relief for MSME manufacturing units, among others.[i]
