Bankers bat for job creation, tax incentives in budget 2025

Experts advise PLI scheme for import substitution in pockets where a manufacturing facility could be set up

- Ram Sahgal

Job creation, tax relief for small businesses, and a production-linked incentive (PLI) scheme for import substitution could be drivers for kickstarting consumption in the budget 2025, said a panel of bankers at the 17th edition of the Mint Annual BFSI Summit.

"One of the aspects that can be explored is a progressive tax code for small businesses," said V. Vaidyanathan of IDFC First Bank.

"The government can say no tax for income up to ₹1 crore for new small businesses and after that threshold have a progressive tax. That will add a feel-good factor and spur the next generation to get into business."

"Focus should be on employment, disposable income and consumption," said Pranav Chawda of JP Morgan Chase India.