Healthier balance sheets, improved consumer sentiments, more demand visibility and production linked incentive schemes have caused a surge in capex this fiscal.
Credit: iStock Images
Finance Minister Nirmala Sitharaman will present the 8th consecutive Union Budget on February 1, 2025. Reports suggest that the government is mulling over cutting income tax for those who are earning up to Rs 15 lakh a year in February's budget, in turn providing relief to the middle class.
The MSME sector has pinned high hopes on the Union Budget FY 2025-26 documents and is keeping its fingers crossed regarding their expectations from the government's most important financial document of the year.
"As we look forward to the 2025 budget, it’s a critical opportunity for the Centre to amplify the manufacturing sector's role in driving India’s economic growth.
Reforms like revisiting GST rates, enhancing tax deductions, and prioritizing funding for key areas such as elevators—an often overlooked yet vital segment in the construction ecosystem—can significantly boost urbanization and convenience.
As a company currently manufacturing overseas, we welcome the government’s focus on promoting domestic manufacturing through initiatives like the PLI scheme. However, we urge the introduction of more aggressive incentives in the upcoming budget to further enable companies to establish manufacturing facilities in India.
Enhanced support, such as simplified compliance, infrastructure development, and financial incentives, will create a conducive environment for companies like ours to contribute to India’s vision of becoming a global manufacturing hub.
I recommend the central government to introduce financing options for homeowners installing elevators, especially for private residences, and to consider GST concessions for mobility solutions catering to paraplegics and the elderly. Treating elevators as essential accessibility tools, akin to other lower-taxed equipment, would make them more affordable and accessible to those in need.
In addition, sustainability should be at the forefront, with tax incentives for energy-efficient elevators, eco-friendly manufacturing processes, and green construction materials. These measures would align the sector with global sustainability goals and also with the "Panchamrit" framework of Government of India while fostering long-term growth.
Addressing these affordability and inclusivity challenges would reflect the Centre’s commitment to sustainable development, making India’s construction and manufacturing ecosystem more resilient and inclusive for all," said Aman Moudgil, Director, Gilco Global.
Union Budget 2025 | Nirmala Sitharaman, who continues to be Finance Minister, will present her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', reports suggest there might be a tax relief for those making up to Rs 15 lakh per year. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.