Budget 2025: Economy needs reforms to boost demand and growth

Over the last few years, the Indian Economy has shown commendable resilience, marking itself as one of the fastest-growing major economies around the globe. However, the growth trajectory seems under concussion, highlighting the dire need to boost demand and fasten economic expansion.

Experts believe that the Indian economy is set to grow by 6.5% to 7% in the financial year ending March 2025. However, it falls short of RBI’s forecast of 7.2%, marking a notable decline from a strong growth of 8.2% recorded in FY23-24.

Despite multiple global challenges, the Indian economy managed to stand tall in terms of consumption trends and private investments. However, there is still a need for targeted reforms to maintain this momentum and address decelerating growth.

In a broader context, health insurance, mutual funds, and taxation sectors are eyeing policy updates that could increase financial inclusion for them and park savings into productive investment options. With the upcoming Union Budget 2025, the government can think of implementing measures that not only boost demand but also are in sync with broader economic objectives. 

Here are some of the key expectations from the Finance Minister in Union Budget 2025:

1. Reduction of GST on Health Insurance Policies
2. Income-tax slab rates relief
3. Reinstatement of Indexation Benefits of Debt Mutual Funds
4. Simplification of Capital Gain tax
5. Incentives for Long-term Investments
6. Incentives for Sustainable and Green Mutual Funds

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