Union Budget 2025 updates: Medtech industry calls for standard GST rate

Budget 2025: Catch all the latest developments related to Union Budget 2025 here

3:22 PM

WATCH: Key expectations of the middle class

3:05 PM

Budget 2025: Gaming industry pushes for tax clarity, infrastructure investment for growth

The gaming industry is urging the implementation of a consistent and forward-looking regulatory framework to streamline taxation, with a focus on GST and TDS structures. This would promote compliance and foster greater investment in the sector.

 

Kunal Patni, executive director and country head, Natural8 India, said, "For skill-based games, clear distinctions from games of chance are crucial, along with measures to support fair recognition and regulatory backing. Investments in digital infrastructure and cybersecurity are necessary to sustain growth while protecting players."

1:13 PM

Retail industry urges GST cuts on apparel to improve affordability for consumers

Ahead of the Union Budget 2025, the retail and fashion industry is calling for a reduction in GST rates on fashion and apparel. This move aims to improve affordability for consumers, particularly in the ethnic and fusion wear segments, which serve a broad audience.

 

Vikram Kankaria, co-founder and chief executive officer (CEO), Fashor, said that as the Indian apparel market is set to grow at a CAGR exceeding 10 per cent and is projected to hit $100 billion by 2030, it is crucial to offer the necessary fiscal and policy backing to maintain this growth trajectory.

 

"Currently, GST rates at 12 per cent or 18 per cent on apparel over Rs 1,000 act as a constraint for many brands, particularly those targetting Tier-II and Tier-III markets, where price sensitivity is high. A reduction in GST could accelerate demand and unlock significant growth potential across these regions."

 

He added that the Budget could explore increasing production linked incentives (PLI) for the apparel and textile industries, with a focus on promoting sustainability in manufacturing. "Globally, consumers are gravitating toward eco-conscious fashion, and providing support for green manufacturing practices would enable Indian brands to compete on an international scale," he added.

12:39 PM

Healthcare sector calls for AI-focused policies, preventive care funding in Budget 2025

The healthcare sector is optimistic that the upcoming 2025 Budget will introduce initiatives and policies aimed at fostering the growth of AI technology in India, with a well-defined strategy to establish the country as a global leader in AI-driven healthcare services.

 

Masaharu Morita, founder and program director at NURA, said, "With the help of government’s industry friendly policies, AI-enabled healthcare companies can channelise more investments in the healthcare sector, particularly in the adoption of AI and advanced technologies. Higher budgetary allocation for healthcare in the upcoming budget particularly in promoting R&D and integration of AI solutions in diagnostics, telemedicine, and personalised healthcare would be very beneficial for the sector as a whole."

 

He further said that to tackle emerging healthcare challenges, the Budget should prioritise investments in preventive care, improving care coordination, and bridging healthcare gaps, with a focus on leveraging technologies such as AI and blockchain.

12:16 PM

Commerce ministry to seek extension of interest equalisation scheme for exports

The commerce ministry is expected to request an extension of the interest equalisation scheme for pre- and post-shipment rupee export credit for an additional five years in the upcoming Budget. The scheme, which expired on December 31, 2024, aims to support the country's export growth.

 

This initiative allows exporters from specific sectors, as well as all MSME manufacturers, to access rupee export credit at competitive rates amid global economic challenges. Under the scheme, exporters benefit from subsidies on pre- and post-shipment rupee export credit.

The scheme was launched on April 1, 2015, with an initial validity period of five years, concluding on March 31, 2020. It has since been extended, including a one-year extension due to the Covid-19 pandemic, along with additional fund allocations.

11:15 AM

Insurance sector seeks Act amendments, tax exemptions, FDI boost in Budget

The insurance sector is expecting changes to the Insurance Act, along with additional tax exemptions for protection and health insurance products, and adjustments to the new tax regime in this year’s Union Budget. These measures are expected to enhance affordability and boost sector growth and penetration. The industry also seeks capital infusion for state-owned general insurers to strengthen their solvency.

 

Industry insiders suggest that amendments to the Insurance Act will introduce significant reforms, including opening the agency channel for insurers and revising capital requirements. Additionally, there is hope for an increase in the foreign direct investment (FDI) cap from 74 per cent to 100 per cent.