The Union Budget 2025, to be presented by Finance Minister Nirmala Sitharaman on February 1, 2025, is eagerly awaited, especially by India's 63 million micro, small, and medium enterprises (MSMEs). The MSME sector, a critical contributor to the economy, is expecting supportive measures aimed at GST compliance, e-commerce exports, sustainability, and global competitiveness.

Key Expectations for MSMEs

1. GST Simplification and E-commerce Exports
   MSMEs anticipate streamlined GST processes to ease compliance and reduce costs. Exempting TCS obligations for zero-rated exports via e-commerce platforms is another demand to facilitate global trade and ease working capital constraints.
   
   

2. Incentives for Sustainability and Innovation
   MSMEs hope for production-linked incentives (PLIs) for green technology and R&D. Policies promoting digital transformation and adoption of IoT, AI, and quantum computing are expected to enhance competitiveness in global markets.
   
   

3. Credit and Financing Support
   Easier access to affordable credit remains a top priority. Expanding priority sector lending to include emerging technologies and green projects could provide much-needed financial relief.
   
   

4. Infrastructure and Policy Reforms
   Improving digital infrastructure, offering tax breaks, and aligning legal policies for startups and MSMEs are anticipated to reduce operational bottlenecks and boost efficiency.
   
   

Broader Economic Expectations

1. Tax Reforms
   The middle class anticipates relief in tax slabs, with expectations of raising the basic exemption limit under the new regime from ₹3 lakh to ₹5 lakh and increasing the Section 80C deduction cap to ₹2 lakh.
   
   

2. Real Estate and Employment
   Experts suggest increasing home loan interest deduction limits to ₹5 lakh and granting infrastructure status to the real estate sector for better financing. Employment-centric measures, such as funding vocational training in AI and robotics and supporting startups, are expected to boost job creation.
   
   

3. Sector-Specific Support
   The government may introduce incentives for EV infrastructure, subsidies for raw materials in manufacturing, and increased healthcare funding for telemedicine and rural facilities.
   
   

FAQs

1. When will the Union Budget 2025 be presented?
The Union Budget 2025 will be presented on February 1, 2025, by Finance Minister Nirmala Sitharaman.

2. What are the key expectations for MSMEs in the 2025 Budget?
Key expectations include GST simplification, support for e-commerce exports, incentives for sustainability, and easier access to credit.

3. How will the Budget address tax reforms?
It is expected to increase the basic exemption limit, revise Section 80C deduction limits, and provide relief for home loan interest deductions.

4. What are the broader economic priorities of the Budget?
The Budget is expected to focus on economic growth, job creation, infrastructure development, and advancing the vision of ‘Viksit Bharat’ by 2047. With a focus on economic growth and structural reforms, the 2025 Budget aims to balance fiscal prudence with transformative policies to fuel India’s development journey.

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