As we approach Budget 2025, I see a unique confluence of opportunities ahead. Having witnessed multiple economic cycles over three decades in financial services, I can say with conviction that India’s economic stability today stands apart – marked not just by numbers but by quality and sustainability. The challenge isn’t growth itself but maximising this moment to drive transformative change.

The question before us isn’t whether we will grow, but how we can leverage this stability to unlock new avenues of economic expansion. There is a clear appetite for bold initiatives, and the Budget presents the ideal platform to translate this appetite into action. Global investors see India as a rare bright spot, but stability alone isn’t enough. India must target 8% real GDP growth and 12% nominal growth. Periods of stability are precisely when we should push forward with transformative reforms. This Budget offers that opportunity.

To drive growth, we must be willing to take risks. Unlocking domestic demand through tax relief for the middle class is one such step. Rationalising personal income tax slabs will increase disposable income and stimulate consumption across key sectors. Investments in affordable housing, healthcare, and agricultural infrastructure will strengthen rural welfare and amplify the benefits of increased consumption. Unlocking private capital through uniform tax rates on dividends, share buybacks, and long-term capital gains (LTCG) at 12.5% can streamline corporate tax structures and encourage reinvestment. This fosters efficient capital allocation, ensuring growth across industries.

Ease of doing business is another pillar of economic expansion. Streamlining regulatory processes, fast-tracking approvals, and reforming labour laws will remove barriers hindering private sector growth. A simplified and transparent regulatory environment provides businesses the certainty they need to plan, invest, and expand. Expanding liquidity in capital markets and introducing innovative financial instruments will further channel investments into high-growth sectors. Deepening capital markets by encouraging retail participation and attracting foreign investments will boost market efficiency and resilience.

Strategic investments are crucial for long-term growth and improving competitiveness. India’s infrastructure ambitions are central to this. The National Infrastructure Pipeline (NIP), with an outlay of ₹133 lakh crore by 2025, reflects India’s commitment to development. Accelerating investments in transportation, urban planning, and digital infrastructure will drive economic expansion. Scaling public-private partnerships (PPPs) will attract private capital and expedite project execution, ensuring faster returns on investments.

Empowering MSMEs and creating jobs must remain at the forefront of this strategy. MSMEs contribute over 33% to India’s GDP and employ 135 million people. Yet, access to affordable credit remains a hurdle. Expanding credit guarantee schemes and promoting fintech solutions will address this issue and drive job creation. In FY2024, credit disbursements to MSMEs grew by nearly 30% – a trend that must continue. Deepening the corporate bond market and promoting alternative financing models such as peer-to-peer lending can bridge funding gaps and ensure sustained MSME growth. Simplifying foreign investment processes, enhancing legal frameworks, and increasing FDI limits will attract long-term foreign capital. Additionally, vocational training and skill development programs aligned with emerging sectors such as AI, fintech, and green technology will prepare India’s workforce for future opportunities.

Boosting manufacturing and technology is key to positioning India as a global economic powerhouse. Expanding Production Linked Incentive (PLI) schemes, reducing logistics costs through dedicated freight corridors, and incentivising R&D in automation and technology will enhance India’s competitiveness. A focus on innovation will strengthen productivity, drive exports, and foster resilience.

A robust financial sector underpins sustained growth. The Budget must prioritise expanding credit availability, supporting NBFCs, and promoting fintech innovation to ensure financial inclusion across economic strata. Strengthening digital financial services will broaden participation in economic growth and ensure equitable access to capital. Deepening financial services creates an ecosystem that empowers both businesses and individuals.

Unleashing the animal spirits of our entrepreneurs and businesses is essential to unlocking India’s growth potential. Stability provides the platform – now we must build upon it. Private sector investment has lagged, and addressing this requires clear, long-term policy frameworks in infrastructure, manufacturing, and energy. Creating an enabling environment where businesses feel confident to take risks will accelerate investments and economic expansion.

India’s startup ecosystem continues to flourish, but sustained support is necessary. Allocating additional funding for seed capital, promoting deep-tech R&D, and streamlining regulations governing startups and venture capital will foster innovation. By nurturing startups, India can secure its place at the forefront of technological advancements.

India stands at the threshold of a transformative era. Budget 2025 must embrace the theme of “Go for Growth” by taking calculated risks, investing in the future, and unleashing private sector confidence. I often say, “A strong financial system isn’t just the lifeblood of an economy – it’s the heart that pumps growth to every sector.” By focusing on policies that stimulate private investment, create jobs, and drive sustainable growth, India can unlock its true potential.

This Budget must go beyond numbers – it must serve as a catalyst for transformative change. As we aim to become a $5 trillion economy, the Union Budget 2025 holds the key to driving inclusive development, setting new global benchmarks, and securing a prosperous future for all Indians.

(The author is the Chairman of Edelweiss Group)