The Pre-Budget consultations for the forthcoming Union Budget 2025-26, chaired by Union Finance Minister Smt. Nirmala Sitharaman, concluded yesterday in New Delhi. The month-long consultations, which began on December 6, 2024, witnessed the participation of over 100 invitees from nine stakeholder groups.
Participants included experts and representatives from farmer associations, trade unions, MSMEs, industry, financial sectors, infrastructure, and more. The discussions aimed to gather diverse perspectives and valuable insights to shape the Union Budget for 2025-26.
Senior government officials, including Union Minister of State for Finance Shri Pankaj Chaudhary, Finance Secretary Shri Tuhin Kanta Pandey, and Chief Economic Adviser Dr. V. Anantha Nageswaran, also attended the meetings alongside Secretaries from various ministries.
Finance Minister Sitharaman thanked the stakeholders for their input and assured them that their suggestions would be carefully evaluated during the budget preparation process.
To ensure inclusivity in policymaking, the Ministry of Finance has invited citizens to share their ideas for the Union Budget 2025-26 on the MyGov platform starting January 10, 2025. This initiative aligns with the government’s vision of fostering ‘Jan Bhagidari’ (people’s participation) in governance.
Prime Minister Narendra Modi also engaged with a group of prominent economists and thought leaders at the NITI Aayog premises last week as part of the preparations for the Union Budget 2025-26.
As per tradition, the Union Budget 2025-26 will be presented on February 1, 2025. This will be Finance Minister Nirmala Sitharaman’s eighth consecutive Budget presentation.
The spotlight will be on the key announcements and the government’s strategic economic roadmap for the remainder of the Modi 3.0 tenure.
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Amit Agarwal, CEO, Howden India stated that, “As the Union Budget 2025 approaches, we call upon the government to take bold and visionary steps to fortify India’s insurance landscape. Our armed forces stand as the ultimate protectors of our nation, braving unimaginable risks every day. It is only fitting that a centrally funded life and health insurance scheme be made mandatory for them at all levels—this is not just financial security, but a tribute to their unwavering service.
Equally crucial is the need to nurture a strong talent pipeline for the insurance industry. Establishing government-backed educational institutes and skill development centers will empower young professionals, ensuring insurance reaches the grassroots and secures every Indian’s future.
Additionally, granting a GST waiver on retail life insurance and offering greater tax incentives for corporates providing group life and health policies will be transformative. These measures will accelerate the ‘Insurance for All by 2047’ vision, paving the way for a more resilient and financially inclusive India. We look forward to a budget that prioritizes these reforms and propels the industry to unprecedented heights.”
G. Srinivasan, MD & CEO, Galaxy Health Insurance Company Limited, stated that “A large section of population is not insured at all or not adequately insured for health insurance. Sec 80 D limits need to be increased to Rs 50,000 for all and Rs 1,00,000 for senior citizens. Sec 80 D should also be allowed in the new taxation regime to increase health insurance penetration Rule 6E which currently allows unexpired premium reserve to be calculated at 50% to be changed to the 1/365 method as permitted by IRDAI in preparation of Financial Statements of insurance companies.”
Jitendra Tanwar Managing Director & CEO of Namdev Finvest Pvt Ltd, said that, With the Union Budget around the corner, the MSME sector, which forms the backbone of our economy, is looking forward to announcements that address its growing needs. Non-Banking Financial Companies (NBFCs) like Namdev Finvest play a crucial role in supporting MSMEs by providing accessible financing solutions, and we hope the government introduces measures to strengthen NBFCs.
Initiatives such as easier access to low-cost bank funding and specific advantages for lending in rural and semi-urban territories for NBFCs will enable us to serve small businesses (with tickets up to ₹10 lakh) more effectively. This, in turn, will contribute to achieving the larger goal of financial inclusion at a national level.
Including sub-₹20 lakh secured loans under SARFAESI eligibility would help NBFCs resolve delinquent cases more efficiently.
Sustainability is another key area where MSMEs can make a significant impact. We are optimistic that this year’s Budget will focus on promoting cleaner and greener energy solutions, especially in the EV and solar sectors. Targeted financing schemes for MSMEs adopting green energy solutions like solar power or incorporating EVs into their operations could accelerate the transition to sustainable practices. This would not only reduce costs for small businesses but also advance the country’s sustainability goals.
At Namdev Finvest, we remain committed to empowering MSMEs through innovative financial solutions. We believe a forward-looking Budget can create the momentum needed to strengthen this sector while fostering sustainable growth for a brighter future.”
Raj Karkara, COO, ZebPay, stated “It is pivotal for India to align its crypto policies with the global regulatory framework to fully harness the industry’s potential. We are hoping that the Union Budget 2025 will introduce progressive measures such as revisiting the 30% tax on crypto income and the 1% TDS mechanism. Simplified tax structures can encourage wider participation while boosting liquidity and trading volumes. Recognition of crypto as a formal asset class, with clear classifications is another critical step. This clarity, coupled with robust regulatory guidelines, will not only safeguard investors but also provide a stable foundation for the industry’s growth.
Additionally, we look forward to policies that incentivise innovation, such as subsidies or tax breaks for blockchain and Web3 startups. Such measures will position India as a global hub for decentralised finance, digital identity solutions, and asset tokenisation. Fostering institutional participation through clearer guidelines on custody, security, and compliance standards will enable the government to unlock significant potential in the crypto space. We believe these steps will pave the way for an inclusive, secure, and innovation-driven digital economy in India.”
