Budget 2025: Fintech startups seek tax relief, digital infra boost

As the Union Budget 2025 approaches, startups in the financial services industry are eagerly awaiting Finance Minister Nirmala Sitharaman’s announcements, with expectations ranging from rationalising taxes to continued investment in digital financial infrastructure. Here's what industry stakeholders have to say about their budget expectations:

Raghvendra Nath, MD, Ladderup Wealth, a Mumbai-based company says as the Union Budget for 2025 approaches, the company anticipates a comprehensive fiscal plan from the Modi government, marking its first full-fledged budget in this term. "The government is expected to focus on continued infrastructure investment, particularly in critical areas such as housing, electricity, and employment generation."

The targeted fiscal deficit is projected to be around 4.5% of GDP, reflecting the government's commitment to maintaining macroeconomic stability amidst global uncertainties. "While there may be discussions around potential relief for taxpayers, we do not anticipate any major changes in the overall tax structure in this budget. Instead, the focus will likely remain on enhancing capital expenditure and stimulating consumption to revitalise the economy, ultimately balancing support for growth initiatives with fiscal responsibility and setting a positive direction for India's economy in the coming fiscal year," says Nath.

The recent slowdown in GDP growth has made Budget 2025 one of the most eagerly awaited budgets in recent years. Subho Moulik, Founder & CEO of Appreciate, a Mumbai-based global market investments company, says to drive economic recovery, foundational demand stimulation measures should take centre stage. "Tax reliefs—long overdue—are crucial to increasing disposable income and stimulating consumption. This, in turn, is essential for healthy GDP growth, as household consumption drives 60% of India’s GDP. Coupled with targeted welfare policies and reforms, these measures should provide the much-needed push to revive domestic demand while curbing household debt."

Gaurav Jalan, Co-founder and CEO of NBFC mPokket, says India's digital economy, set to hit $1 trillion by 2028, has been a catalyst for financial inclusion, empowering millions, through accessible financial solutions. "As digital lending continues to drive financial inclusion in underserved communities, the focus must shift toward creating a robust ecosystem that balances access, responsibility, and trust. This includes prioritising measures that simplify compliance, promote ethical lending practices, and encourage public-private collaboration. Strengthening digital public infrastructure like the Unified Lending Interface (ULI), incentivising financial literacy initiatives, and providing regulatory clarity will be critical to empowering individuals and businesses alike."

In the digital payments space, while India has made great strides in domestic payments, high merchant discount rates (MDR) and transaction fees remain barriers to cost-effective cross-border transactions. Anand Balaji, Co-Founder, XFlow, a Bengaluru-based financial services company, says the 2025 Union Budget presents an opportunity to strengthen the fintech ecosystem as India accelerates in building robust financial infrastructure. "By addressing key challenges, particularly around cross-border payments and access to credit, the government can help build a robust and competitive fintech sector."

He says one of the primary hurdles for businesses going global is the fragmented compliance landscape in the cross-border payments space. "Simplifying this process through a single-window clearance system would streamline the compliance process, improve cash flows and lower overall administrative costs, enabling businesses to realise international payments more efficiently."

Jyoti Bhandari, founder, Lovak Capital, an investment management firm for affluent and high-networth individuals, says she expects the budget to alleviate taxes, foster economic advancement, and enhance financial inclusion. "The budget should strive to address the needs of various stakeholders, including taxpayers, businesses, and investors. Hope to see initiatives that promote digitalisation, financial literacy, and sustainable development."

With over 12 crore digital gold investors, stakeholders say a regulatory framework is needed to ensure consumer protection, prevent fraud, and promote digital gold as a secure investment. Renisha Chainani, research head at gold and silver supplier and financial services company Augmont, says there's a need to reduce import duty on gold and silver from 6% to 3% to enhance export competitiveness, though a further cut seems unlikely. "Gold refiners are pushing for an increased duty difference between dore and refined gold (currently just 0.65%) to encourage domestic refining." The industry also advocates for a single regulator for the bullion Industry to streamline supervision and improve market transparency.