The upcoming budget needs to prioritise sustainable growth, as the current momentum is not supported by all four demand-side drivers, according to Dr. Sunil Kumar Sinha, professor of economics at the Institute of Development and Communication, Chandigarh. Sinha emphasises that boosting consumption among the bottom 50% of income households is crucial for ensuring medium to long-term economic stability.

“We need consumption of the bottom 50% of income households. That will sustain growth in the medium to long term,” Sinha said in a Pre-Budget discussion hosted by Fortune India.

Sinha believes that fiscal consolidation should also be the priority for Budget 2024.

“It doesn't mean you reduce expenditure. This is the best time to follow a counter-cyclical policy that if growth is good, taxes are good,” Sinha said.

He added that the budget should address the various bottlenecks facing the manufacturing sector, including reforms in the factor market.

When asked about the priorities for Budget 2025 during Fortune India’s pre-budget panel, all panellists agreed that growth should remain the central focus of the budget, citing weakened growth in the second quarter.

Building on Sinha’s call for factor market reforms, BJP’s national spokesperson for economic affairs Gopal Krishna Agarwal underscored the need for a conducive ecosystem to integrate Indian MSMEs into regional and global supply chains.

Congress’ communications research and monitoring in-charge Amitabh Dubey stressed higher MGNREGA wages, direct benefit transfers (DBTs), and a high-threshold inheritance tax.

Meanwhile, Cyril Shroff of Cyril Amarchand Mangaldas highlighted the urgency of prioritising COP26 commitments, noting that only six to seven years remain to meet key climate goals.

“There is a massive opportunity for investment. Corporate India is very conscious of this. The Budget should (also) fuel the energy transition ambitions. There is a big, big opportunity,” Shroff added.

The full feature roundtable discussion will appear in the January 2025 issue of Fortune India.