Following the measures announced in the July budget, the first full budget of the NDA 3.0 government is expected to include additional steps to incentivise this shift.
Meetings between key stakeholders, including the Prime Minister’s Office and leading economists, have underscored the necessity of fiscal interventions to stimulate consumption. Some economists have suggested that although it might mean deviating slightly from the fiscal glide path, such measures are essential to boost demand and sustain economic momentum.
However, the government’s approach will depend on balancing economic needs with its commitment to fiscal discipline. The Prime Minister has been steadfast in ensuring that the fiscal deficit targets remain a priority, so the government’s next steps will be keenly watched.
One of the top concerns of the industry is the simplification of the Goods and Services Tax (GST) system and a reduction in compliance burdens. There is hope that the Finance Minister will prioritise these issues in the upcoming budget, signalling a strong intention to make the tax structure more efficient and business-friendly.
Consultations are also underway to support micro, small, and medium enterprises (MSMEs) and the agro-farming sectors. In this regard, the government is reportedly considering introducing new credit schemes to help these sectors thrive.
The industry has consistently called for reforms that prioritise ease of doing business. This includes the decriminalisation of various laws, which would reduce the legal burden on businesses and foster a more conducive environment for growth.
Industry leaders have highlighted that the budget is being framed against the backdrop of global uncertainties, including economic headwinds and geopolitical tensions. Domestically, there are concerns about regulatory burdens that businesses face. Therefore, there is widespread hope that the government will be mindful of these challenges and take appropriate action to address them in the budget.
In addition to these expectations, calls for major reforms in the labour market and improvements in implementing existing laws have gained traction.
The business community is urging for a more predictable and streamlined legal environment to promote investment and job creation. These measures would also contribute to strengthening India’s labour market, which is seen as crucial for sustained economic development.
