Digitalization has revolutionized banking, making it more convenient for customers and advancing financial inclusion, with India now accounting for nearly 46% of the world's digital transactions. While the financial services sector holds a promising outlook, achieving the vision of Viksit Bharat will require exponential growth-20 times the current scale. This ambitious goal demands a focus on real-time innovation, robust data privacy policies, and resilience against global challenges.

We anticipate the Union Budget 2025 will support these efforts by enhancing synergies among banks, NBFCs, fintechs, and digital infrastructure. Budget allocations for R&D in technologies like AI and blockchain, along with initiatives for rural outreach and MSME credit support, will be pivotal. By fostering collaboration, technological advancements, and consumer-centric policies, the financial services sector can significantly contribute to Digital India and the nation's economic growth.

"India stands at a pivotal moment in its fintech revolution, with 2025 promising to be a landmark year for innovation, inclusion, and economic growth. The Union Budget offers a unique opportunity to shape the trajectory of the fintech ecosystem, which has already positioned India as a global leader in digital payments and financial technology.

In 2024 alone, India processed over 12 billion UPI transactions monthly, a testament to the growing trust and adoption of digital financial tools across urban and rural landscapes. At PaySprint, with over 5,000 partners and a robust suite of API-driven solutions, we've witnessed firsthand how technology can empower businesses and drive financial inclusion. However, to sustain this momentum, we need supportive policies that bridge existing gaps and fuel the next wave of innovation.

One critical area for focus is enhancing the infrastructure for open banking and API-driven platforms. A recent study by BCG indicates that India's fintech sector could contribute $200 billion to GDP by 2030, but achieving this requires interoperability, seamless integrations, and policies that encourage collaboration between banks, fintechs, and regulators. The budget could incentivize these efforts by promoting API standardization and allocating funding for ecosystem-wide development.

Financial inclusion must remain at the heart of this vision. While over 80% of Indian adults now have a bank account, thanks to initiatives like Jan Dhan Yojana, only about 23% of rural users actively engage in digital transactions. Bridging this gap requires targeted investments in digital literacy programs, internet infrastructure expansion in underserved regions, and subsidies for SMEs to adopt digital payment systems. Empowering small businesses is especially critical, as they contribute nearly 30% of India's GDP and are key drivers of employment.

Additionally, the government has an opportunity to support fintech startups and RegTech innovations through tax relief and funding programs. According to NASSCOM, India is home to over 2,300 fintech startups, yet many face challenges in scaling due to high compliance costs and limited access to capital. Incentives for early-stage innovators could unleash a wave of transformative solutions in areas like fraud detection, automated compliance, and data security.

Lastly, cybersecurity and data privacy must remain a top priority. With digital payments surpassing ?20 lakh crore monthly, trust in secure platforms is non-negotiable. Budget provisions that establish national cybersecurity frameworks and offer grants for fintechs to invest in advanced data protection technologies will ensure that users can transact with confidence.

At PaySprint, we are committed to driving financial inclusion and delivering innovative solutions that simplify banking and payments for all. The 2025 Union Budget has the potential to catalyze the fintech sector's growth, ensuring that India remains at the forefront of the global digital economy. Together, with the right policies and collective effort, we can build a more inclusive, secure, and prosperous future for millions of Indians."

"The recent tax changes for debt funds have severely impacted retirees seeking safe, non-volatile investments to beat inflation on a post-tax basis. With long-term capital gains tax on pure debt funds now equivalent to fixed deposits at a marginal rate of tax, retirees are forced to consider hybrid funds with a minimum 15-20% equity component to achieve tax-efficient returns. This exposes them to unnecessary risk. To address this, I urge the government to exempt long-term capital gains tax for investors above 60-65 years at the time of redemption. This would encourage the use of pure debt funds and products, providing retirees with a stable and low-risk investment option, uncorrelated with the volatility of equity markets."

It is concerning that GDP growth has recently slowed to a 7-quarter low of 5.4% in 2QFY25. It is expected that in response, the government will give priority to policies that bolster growth, especially by providing financial assistance to those with lower incomes. Key areas of focus are likely to include investments in infrastructure development, sustainable energy initiatives, a manufacturing sector boost, and continued spending on defense and railways-all of which can play a crucial role in bolstering economic growth and increasing demand for SMEs.

Furthermore, increased spending on social sectors such as healthcare and housing, along with the implementation of a direct tax code and a simplified tax structure, could increase disposable income, and encourage greater consumption, particularly among lower-income groups.

From a market perspective, it is essential to strike a balance between growth-centric spending and fiscal prudence. Markets will pay close attention to any guidance that shows GDP growth is higher than 6.5%, as this could be interpreted favorably. A growth-oriented budget is essential, but the government may tread cautiously regarding populist measures, as such steps could exacerbate the fiscal deficit, weaken the Rupee, and potentially delay economic recovery by limiting rate cuts. Any deviations from fiscal discipline or indications of lower growth expectations could lead to market sell-offs.

"The MSME sector, the backbone of India's economy, requires a strong push toward innovation and technological adoption. Simplifying interstate and export logistics compliance is critical to enabling seamless commerce. Expanding the scope of credit guarantee schemes will enhance access to funding for startups and export-focused MSMEs, fostering growth across the sector. To accelerate the adoption of EV charging infrastructure, tax benefits should be extended to hotels, malls, parking facilities, and other establishments that provide public EV charging stations.

Budget 2025 should prioritize the formalization of MSMEs by simplifying tax and compliance processes, encouraging more businesses to integrate into the formal economy. Streamlining complex filing requirements is essential to reducing operational costs and enabling MSMEs to scale effectively."

"The upcoming Union Budget presents a significant opportunity to strengthen India's financial ecosystem and drive inclusive growth. We urge the government to expand the PSL(Priority Sector Lending) definition to include emerging sectors like renewable energy, women-led enterprises, and digital infrastructure, aligning with India's evolving economic priorities. Establishing a dedicated regulatory framework for NBFC catering to PSL will further enable focused lending to underserved segments. Additionally, measures such as concessional refinancing from institutions like SIDBI and NABARD, along with credit guarantee schemes, can lower borrowing costs and mitigate risks, encouraging greater participation from banks and investors. Allowing bank loans to NBFC-PSLs to qualify as PSL will ensure consistent capital flow, empowering MSMEs and other critical sectors to scale operations and contribute to the nation's growth. By implementing these measures, the budget can pave the way for a robust financial ecosystem, fostering innovation, entrepreneurship, and equitable development across India."

1. From ICUs to OPDs: How Budget 2025 Could Impact Hospital Services Nationwide

2. Union Budget 2025: Will Healthcare Finally Get the Lion's Share?

3. Emergency Care and Beyond: What Hospitals Expect from Budget 2025

4. Prescription for Change: How Budget 2025 Could Impact Your Medical Bills

5. The Billion-Dollar Question: How Will Budget 2025 Fund India's Hospitals?

6. Boosting Public-Private Partnerships: Will Budget 2025 Give Healthcare a Financial Lifeline?

According to a recent report by Deloitte India, "Poor mental health in employees is causing Indian companies a loss of over $14 Billion (INR 1,19,000 crores) annually" - Investing in mental health is crucial for not only enhancing productivity but enhancing overall happiness across sectors. The Union Budget for 2024-25 allocated approximately ?90,659 crore to the healthcare sector, a modest increase of 2% from the previous fiscal year. However, only about 1% of this allocation is dedicated to mental health initiatives, with ?850 crore for the National Institute of Mental Health and Neurosciences (NIMHANS), ?60 crore for the Lokopriya Gopinath Bordoloi Regional Institute of Mental Health, and ?90 crore for the National Tele-Mental Health Programme (TELE Manas).

Despite these allocations, there remains a significant need for increased funding and awareness, particularly concerning postpartum depression. Approximately 22% of new mothers in India experience postpartum depression, yet many remain unaware of their condition.

By allocating more resources to mental health services and launching targeted awareness campaigns about conditions like postpartum depression, the government can directly improve national well-being. Such investments would not only enhance individual quality of life but also contribute to a more productive and prosperous society.

Furniture Industry Hopes for PLI Scheme Inclusion in Budget.Furniture industry eagerly anticipates its inclusion in the Production Linked Incentive (PLI) scheme. As Previously indicated by the finance minister for inclusion in the furniture industry, this move could modernize the sector, enhance exports, and align with the 'Make in India' initiative.

Inclusion in the PLI scheme would enable the industry to invest in capital expenditure (capex) and adopt advanced manufacturing technologies and know how. This modernization could reduce production costs and boost global competitiveness which would be complementary to the introduction of BIS in Furniture fitting sector. This would be a game-changer, modernizing and making Indian furniture a global brand.

We anticipate lower Tax rates of GST and income tax to enhance household savings of the public at large to drive consumer demand and industrial growth.The sector hopes the Finance Ministry's announcement will deliver on these expectations, paving the way for growth, innovation, and increased employment opportunities.

"We anticipate that the upcoming Union Budget will prioritize infrastructure spending, which will significantly benefit our lending segments, particularly small businesses, contractors, and transporters. This focus on infrastructure is expected to lead to a surge in demand for steel, cement, and other materials, further driving demand in vehicle finance and other sectors reliant on bulk materials. This will not only boost economic activity but also create substantial employment opportunities, especially in semi-urban and rural areas. We foresee new vehicle sales growth in Q4 to be in double digits year-on-year, as we expect government spending on infrastructure to be much higher than previous quarters."

"The government has shown tremendous support and impetus towards the healthcare sector in the last few years. As the government sets its eyes on the next budget, we look forward to the possibility of an increased allocation to the tune of 2.5-3% for the healthcare sector.

This would help in addressing the country's growing healthcare needs and improve access to quality care. It will boost infrastructure development, especially in Tier 2 and 3 cities, strengthen primary care through expanded Public Health Centres, encourage public-private partnerships, and support medical education expansion to address shortages of medical professionals and nurses. The budget should also address the acute shortage of healthcare professionals through increased funding for medical education infrastructure and skill development programs.

Additionally, the budget's strategic focus should extend to creating sustainable healthcare solutions. For meaningful impact, we expect comprehensive reforms in health insurance accessibility, with the Ayushman Bharat scheme expanding beyond its current 34.2 crore beneficiaries through innovative financing models and higher amounts for complex procedures in super-speciality hospitals.

Tax incentives for private insurance adoption, particularly targeting the middle class, coupled with streamlined digital claim processes, could revolutionize healthcare financing. Substantial allocations for preventive healthcare, including a nationwide network of screening centres and wellness programs that could fundamentally shift our healthcare approach from curative to preventive will be beneficial for all.

Long-term Infrastructure like financing options at lower rates and higher payment periods along with tax breaks will help expansion and give access to the Indian population. Long-term infrastructure like financing options at lower rates and longer repayment periods, along with tax breaks, is critical for healthcare expansion and accessibility in India. Affordable credit reduces financial strain on providers, enabling investments in facilities, equipment, and training. Current loan tenures of 7-8 years are insufficient, as hospitals require significant capital for land, infrastructure, operations, and human resources, with years needed to achieve breakeven. Long-term credit (15-20 years) with lower interest rates and reduced collateral requirements is essential to address bottlenecks, revive stalled projects, and reduce NPAs in the sector. Tax reforms are equally crucial. Shifting hospitals from the GST exemption category to zero-tax would allow input credit, lowering treatment costs for patients. Additionally, tax holidays for greenfield healthcare projects, akin to those for SEZs and Tech Parks, would drive private investments. A holistic approach, including incentives for ancillary services, is vital to create a robust ecosystem. Rationalized policies and support will transform healthcare, ensuring affordable and accessible quality care nationwide.

Digital health transformation should receive significant attention, with expected investments in AI-driven diagnostics, telemedicine infrastructure, and electronic health records. These technological interventions are crucial for bridging the urban-rural healthcare divide and optimizing our limited healthcare resources.

Following the positive impact of previous customs duty exemptions on cancer medicines, we anticipate similar relief measures for a broader range of critical medical equipment and pharmaceuticals, stimulating both healthcare accessibility and domestic manufacturing capabilities.

The budget may also consider moderate investments in the AYUSH sector, focusing on research-backed integration with modern medicine where appropriate, while maintaining the primacy of evidence-based healthcare practices.

However, the success of these ambitious initiatives will hinge on robust implementation frameworks and governance mechanisms.