{"id":21337,"date":"2025-01-30T13:49:06","date_gmt":"2025-01-30T13:49:06","guid":{"rendered":"https:\/\/popularreads.co\/pre-budget-2025-expectations-and-industry-insights-from-the-bfsi-and-finance-sectors\/"},"modified":"2025-01-30T13:49:06","modified_gmt":"2025-01-30T13:49:06","slug":"pre-budget-2025-expectations-and-industry-insights-from-the-bfsi-and-finance-sectors","status":"publish","type":"post","link":"https:\/\/popularreads.co\/?p=21337","title":{"rendered":"Pre-Budget 2025: Expectations and Industry Insights from the BFSI and Finance Sectors"},"content":{"rendered":"<div class='booster-block booster-read-block'>\n                <div class=\"twp-read-time\">\n                \t<i class=\"booster-icon twp-clock\"><\/i> <span>Read Time:<\/span>5 Minute, 23 Second                <\/div>\n\n            <\/div><p style=\"margin:0cm 0cm 8pt;text-align:justify\"><span style=\"font-family:Calibri, sans-serif;font-size:11pt\">As the 2025 Union Budget approaches, industry leaders across the BFSI, crypto, wealth management, and microfinance sectors are voicing their expectations for policy measures that will drive economic growth, financial inclusion, and investment opportunities. With a focus on taxation reforms, capital market stability, infrastructure investments, and digital asset regulation, stakeholders are hoping for a budget that balances growth with fiscal prudence.<\/span><\/p>\n<\/p>\n<p style=\"margin:0cm 0cm 8pt;text-align:justify\"><span style=\"font-family:Calibri, sans-serif;font-size:11pt\"><span xml:lang=\"en-in\" lang=\"en-in\"><strong>Crypto Industry Seeks Taxation Reforms for Market Growth<\/strong><\/span><\/span><\/p>\n<\/p>\n<p style=\"margin:0cm 0cm 8pt;text-align:justify\"><span style=\"font-family:Calibri, sans-serif;font-size:11pt\"><span xml:lang=\"en-in\" lang=\"en-in\">The Virtual Digital Asset (VDA) sector has immense potential to contribute to India&#8217;s digital economy. <strong>Ashish Singhal, Co-founder of CoinSwitch<\/strong>, emphasized the need for taxation refinements, stating,\u00a0<\/span><i><span xml:lang=\"en-in\" lang=\"en-in\">\u201cThe upcoming Budget provides a crucial moment to refine taxation policies, fostering both growth and compliance within the sector.\u201d<\/span><\/i><\/span><\/p>\n<\/p>\n<p style=\"margin:0cm 0cm 8pt;text-align:justify\"><span style=\"font-family:Calibri, sans-serif;font-size:11pt\"><span xml:lang=\"en-in\" lang=\"en-in\">Singhal urged the government to lower the Tax Deducted at Source (TDS) on VDA transactions from the current 1% to 0.01% to ease compliance challenges while maintaining transaction transparency and revenue tracking. <strong>He recommended,<\/strong>\u00a0<\/span><i><span xml:lang=\"en-in\" lang=\"en-in\">\u201cRaising the TDS applicability threshold from INR 10,000\/50,000 to INR 5,00,000. This would protect small investors and traders from undue tax burdens, ensuring fair treatment across the board. To further support the industry\u2019s growth, we advocate for aligning the taxation of VDA income with other asset classes and removing the current discriminatory treatment. Allowing taxpayers to set off or carry forward losses, as permitted under capital gains provisions, would establish parity and create an environment for innovation.\u201d<\/span><\/i><\/span><\/p>\n<p><i><\/i><\/p>\n<p><i><\/i><\/p>\n<p style=\"margin:0cm 0cm 8pt;text-align:justify\"><span style=\"font-family:Calibri, sans-serif;font-size:11pt\"><i>\u201cWe are hopeful that the government will recognize the VDA industry\u2019s potential and take steps toward balanced and progressive policies that enable its growth.\u201d<\/i><span xml:lang=\"en-in\" lang=\"en-in\"><strong> he added.<\/strong><\/span><strong><\/strong><\/span><\/p>\n<p><strong><\/strong><\/p>\n<p><strong><\/strong><\/p>\n<p style=\"margin:0cm 0cm 8pt;text-align:justify\"><span style=\"font-family:Calibri, sans-serif;font-size:11pt\"><strong>Encouraging Long-Term Investments Through Policy Support<\/strong><\/span><strong><\/strong><\/p>\n<p><strong><\/strong><\/p>\n<p><strong><\/strong><\/p>\n<p style=\"margin:0cm 0cm 8pt;text-align:justify\"><span style=\"font-family:Calibri, sans-serif;font-size:11pt\">The personal finance sector anticipates tax incentives to encourage investor participation. <strong>Mayank Bhatnagar, Co-founder and COO of FinEdge<\/strong>, stressed the need for measures that\u00a0<\/span><i><span xml:lang=\"en-in\" lang=\"en-in\">\u201cempower investors and enhance financial planning opportunities.\u201d<\/span><\/i><\/p>\n<p><i><\/i><\/p>\n<p><i><\/i><\/p>\n<p style=\"margin:0cm 0cm 8pt;text-align:justify\"><span style=\"font-family:Calibri, sans-serif;font-size:11pt\">Expanding tax incentives on investments in mutual funds and equity-linked instruments could foster long-term wealth creation. Additionally, simplifying tax laws and aligning them with global best practices could create a more investor-friendly environment.\u00a0<\/span><i><span xml:lang=\"en-in\" lang=\"en-in\">\u201cPolicies that focus on long-term capital gains tax structures and incentivize investments in asset classes like equity would be highly welcome,\u201d<\/span><\/i><span xml:lang=\"en-in\" lang=\"en-in\"> <\/span><span style=\"font-family:Calibri, sans-serif\"><span xml:lang=\"en-in\" lang=\"en-in\"><strong>Bhatnagar added.<\/strong><\/span><\/span><\/p>\n<p style=\"margin:0cm 0cm 8pt;text-align:justify\"><span style=\"font-family:Calibri, sans-serif;font-size:11pt\"><strong>Taxation Reforms to Boost Market Participation<\/strong><\/span><strong><\/strong><\/p>\n<p><strong><\/strong><\/p>\n<p><strong><\/strong><\/p>\n<p style=\"margin:0cm 0cm 8pt;text-align:justify\"><span style=\"font-family:Calibri, sans-serif;font-size:11pt\">The capital markets are hoping for relief from increased trading costs and capital flight concerns. <strong>Devam Sardana, Business Head at Lemonn,<\/strong> pointed out,\u00a0<\/span><i><span xml:lang=\"en-in\" lang=\"en-in\">\u201cIn the last budget, there was a dual impact of STT increase and LTCG increase (on listed shares) on the users with an increase in trading costs as well as impact on profitability of the users. Given that the revenue generation would have significantly increased with STT, this can potentially be used to revert the LTCG to 10% in order to ensure even higher market participation and incentivise long-term investment which is critical for the users and the capital market stability. This can also address reduction in the flight of capital from India towards global markets and potentially contribute to rupee appreciation as well.\u201d<\/span><\/i><span style=\"font-family:Calibri, sans-serif\"><span xml:lang=\"en-in\" lang=\"en-in\"><strong>\u00a0<\/strong><\/span><\/span><span xml:lang=\"en-in\" lang=\"en-in\"><strong><\/strong><\/span><\/p>\n<p><strong><\/strong><\/p>\n<p><strong><\/strong><\/p>\n<p style=\"margin:0cm 0cm 8pt;text-align:justify\"><span style=\"font-family:Calibri, sans-serif;font-size:11pt\"><strong>Wealth Management Industry Hopes for Growth-Oriented Budget<\/strong><\/span><strong><\/strong><\/p>\n<p><strong><\/strong><\/p>\n<p><strong><\/strong><\/p>\n<p style=\"margin:0cm 0cm 8pt;text-align:justify\"><span style=\"font-family:Calibri, sans-serif;font-size:11pt\"><strong>Himanshu Kohli, Co-founder of Client Associates,<\/strong> acknowledged the government&#8217;s consistent approach to economic policy.\u00a0<\/span><i><span xml:lang=\"en-in\" lang=\"en-in\">\u201cAlthough there is so much excitement surrounding the Budget, it is business as usual for the government,\u201d<\/span><\/i><span xml:lang=\"en-in\" lang=\"en-in\"> he remarked, emphasizing a focus on long-term growth and fiscal discipline.<\/span><\/p>\n<\/p>\n<p style=\"margin:0cm 0cm 8pt;text-align:justify\"><span style=\"font-family:Calibri, sans-serif;font-size:11pt\">On investment reforms, <strong>Kohli noted,<\/strong>\u00a0<\/span><i><span xml:lang=\"en-in\" lang=\"en-in\">\u201cThere is an expectation that the government will reinstate the indexation benefit for debt mutual funds. If this change happens, it will once again make debt mutual funds a more attractive investment option than fixed deposits.\u201d<\/span><\/i><\/p>\n<p><i><\/i><\/p>\n<p><i><\/i><\/p>\n<p style=\"margin:0cm 0cm 8pt;text-align:justify\"><span style=\"font-family:Calibri, sans-serif;font-size:11pt\">He also highlighted global economic factors, particularly the impact of the Trump administration&#8217;s policies.\u00a0<\/span><i><span xml:lang=\"en-in\" lang=\"en-in\">\u201cOil prices are expected to decrease due to increased domestic production, benefiting India. However, strong U.S. economic growth policies may lead to currency volatility, with the rupee likely to weaken,\u201d<\/span><\/i><span xml:lang=\"en-in\" lang=\"en-in\"> <\/span><span style=\"font-family:Calibri, sans-serif\"><span xml:lang=\"en-in\" lang=\"en-in\"><strong>he explained.<\/strong><\/span><\/span><span xml:lang=\"en-in\" lang=\"en-in\"><strong><\/strong><\/span><\/p>\n<p><strong><\/strong><\/p>\n<p><strong><\/strong><\/p>\n<p style=\"margin:0cm 0cm 8pt;text-align:justify\"><span style=\"font-family:Calibri, sans-serif;font-size:11pt\"><strong>Balancing Growth and Fiscal Prudence Amid Economic Pressures<\/strong><\/span><strong><\/strong><\/p>\n<p><strong><\/strong><\/p>\n<p><strong><\/strong><\/p>\n<p style=\"margin:0cm 0cm 8pt;text-align:justify\"><span style=\"font-family:Calibri, sans-serif;font-size:11pt\">With revised growth forecasts and urban demand weakening, <strong>Satish Chandra Aluri of Lemonn Markets Desk<\/strong> highlighted the critical juncture at which this budget arrives.\u00a0<\/span><i><span xml:lang=\"en-in\" lang=\"en-in\">\u201cThe 2025 budget arrives at a critical juncture, with growth forecasts revised to four-year lows, urban demand weakening, and the INR under pressure post-Trump\u2019s surprise victory. As this will be Prime Minister Narendra Modi\u2019s first full budget in his third term, it must balance growth revival with fiscal discipline.\u201d<\/span><\/i><span xml:lang=\"en-in\" lang=\"en-in\"> he noted.<\/span><\/p>\n<\/p>\n<p style=\"margin:0cm 0cm 8pt;text-align:justify\"><span style=\"font-family:Calibri, sans-serif;font-size:11pt\"><i>\u201cKey expectations include renewed focus on infrastructure spending, export promotion via tariff rationalization and MSME support, and targeted tax reforms to boost middle-class consumption. Defence spending is likely to rise in absolute terms, with emphasis on modernization and indigenization. Priority sectors like green energy, semiconductors, and EVs may see enhanced PLI allocations of \u20b930,000\u201340,000 crore in the coming months.\u201d<\/i><span xml:lang=\"en-in\" lang=\"en-in\"><strong>He added.\u00a0<\/strong><\/span><\/span><\/p>\n<p><strong><\/strong><\/p>\n<p><strong><\/strong><\/p>\n<p style=\"margin:0cm 0cm 8pt;text-align:justify\"><span style=\"font-family:Calibri, sans-serif;font-size:11pt\"><strong>Microfinance Sector Calls for Liquidity Support<\/strong><\/span><strong><\/strong><\/p>\n<p><strong><\/strong><\/p>\n<p><strong><\/strong><\/p>\n<p style=\"margin:0cm 0cm 8pt;text-align:justify\"><span style=\"font-family:Calibri, sans-serif;font-size:11pt\"><strong>Dr. Alok Misra, CEO &amp; Director of the Microfinance Industry Network (MFIN),<\/strong> underscored the importance of financial inclusion.\u00a0<\/span><i><span xml:lang=\"en-in\" lang=\"en-in\">\u201cThe sector contributes 2.03% to India&#8217;s GVA and serves 8 crore low-income clients. We are not just talking about financial services \u2013 we are discussing the backbone of grassroots economic empowerment.\u201d<\/span><\/i><\/p>\n<p><i><\/i><\/p>\n<p><i><\/i><\/p>\n<p style=\"margin:0cm 0cm 8pt;text-align:justify\"><span style=\"font-family:Calibri, sans-serif;font-size:11pt\">With liquidity constraints challenging the sector, Misra called for a dedicated refinance facility and the reinstatement of the Credit Guarantee Scheme introduced in 2021.\u00a0<\/span><i><span xml:lang=\"en-in\" lang=\"en-in\">\u201cBoth these measures will help lower the cost of funds and ensure uninterrupted credit flow to the underserved,\u201d<\/span><\/i><span xml:lang=\"en-in\" lang=\"en-in\"> <\/span><span style=\"font-family:Calibri, sans-serif\"><span xml:lang=\"en-in\" lang=\"en-in\"><strong>he added.<\/strong><\/span><\/span><span xml:lang=\"en-in\" lang=\"en-in\"><strong><\/strong><\/span><\/p>\n<p><strong><\/strong><\/p>\n<p><strong><\/strong><\/p>\n<p style=\"margin:0cm 0cm 8pt;text-align:justify\"><span style=\"font-family:Calibri, sans-serif;font-size:11pt\"><strong>MSME Sector Seeks Enhanced Credit Accessibility<\/strong><\/span><strong><\/strong><\/p>\n<p><strong><\/strong><\/p>\n<p><strong><\/strong><\/p>\n<p style=\"margin:0cm 0cm 8pt;text-align:justify\"><span style=\"font-family:Calibri, sans-serif;font-size:11pt\"><strong>Tarun Singh, Founder &amp; MD of Highbrow Securities<\/strong>, stressed the importance of sustaining growth momentum for MSMEs. He Stated,\u00a0<\/span><i><span xml:lang=\"en-in\" lang=\"en-in\">\u201c\u2018I&#8217;m excited to see how the government builds on the momentum of previous years to drive growth in India&#8217;s MSME sector. Sustaining this momentum is crucial, with a focus on bridging the swelling debt funding gap that persists for SMEs. Enhancing credit accessibility and simplifying IPO listing procedures will offer vital support.\u201d<\/span><\/i><\/p>\n<p><i><\/i><\/p>\n<p><i><\/i><\/p>\n<p style=\"margin:0cm 0cm 8pt;text-align:justify\"><span style=\"font-family:Calibri, sans-serif;font-size:11pt\">To reduce operational costs, Singh recommended targeted interest subvention schemes, along with policy incentives such as tax reliefs, sector-specific subsidies, and digital transformation support.\u00a0<\/span><i><span xml:lang=\"en-in\" lang=\"en-in\">\u201cWith the government\u2019s focus on fiscal prudence and growth-driven policies, I\u2019m optimistic that the budget will strike the right balance to drive India\u2019s economic trajectory forward,\u201d<\/span><\/i><span xml:lang=\"en-in\" lang=\"en-in\"> he concluded.<\/span><\/p>\n<\/p>\n<p style=\"margin:0cm 0cm 8pt;text-align:justify\"><span style=\"font-family:Calibri, sans-serif;font-size:11pt\"><strong>A Roadmap for Growth and Stability<\/strong><\/span><strong><\/strong><\/p>\n<p><strong><\/strong><\/p>\n<p><strong><\/strong><\/p>\n<p style=\"margin:0cm 0cm 8pt;text-align:justify\"><span style=\"font-family:Calibri, sans-serif;font-size:11pt\">As the finance and BFSI sectors eagerly await the 2025 Union Budget, industry leaders are aligned in their call for policy measures that promote long-term investment, financial stability, and economic resilience. Whether through taxation reforms, credit accessibility, or investment incentives, the government\u2019s approach in this budget will play a crucial role in shaping India&#8217;s financial future.<\/span><\/p>\n        <div class=\"booster-block booster-reactions-block\">\n            <div class=\"twp-reactions-icons\">\n                \n                <div class=\"twp-reacts-wrap\">\n                    <a react-data=\"be-react-1\" post-id=\"21337\" class=\"be-face-icons un-reacted\" href=\"javascript:void(0)\">\n                        <img decoding=\"async\" src=\"https:\/\/popularreads.co\/wp-content\/plugins\/booster-extension\/\/assets\/icon\/happy.svg\" alt=\"Happy\">\n                    <\/a>\n                    <div class=\"twp-reaction-title\">\n                        Happy                    <\/div>\n                    <div class=\"twp-count-percent\">\n                                                    <span style=\"display: none;\" 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With a focus on taxation reforms, capital market stability, infrastructure investments, and digital asset regulation, stakeholders are hoping for a budget [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":21338,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[66],"tags":[],"class_list":["post-21337","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-agency-news"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Pre-Budget 2025: Expectations and Industry Insights from the BFSI and Finance Sectors<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/popularreads.co\/?p=21337\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Pre-Budget 2025: Expectations and Industry Insights from the BFSI and Finance Sectors\" \/>\n<meta property=\"og:description\" content=\"As the 2025 Union Budget approaches, industry leaders across the BFSI, crypto, wealth management, and microfinance sectors are voicing their expectations for policy measures that will drive economic growth, financial inclusion, and investment opportunities. 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