Sustainable Growth and Budget 2025: Opportunities for India's Economic Future
Key Ideas
- India's sustainable growth is crucial for long-term economic success, especially given the current economic challenges and global climate concerns.
- Key pre-budget tax expectations include incentivizing green financing, extending tax reliefs for long-term investments, developing the indigenous carbon market, and supporting the green hydrogen ecosystem.
- Tax incentives for investors in green securities, clarity on carbon credit taxation, and support for green hydrogen projects and sustainable mobility are essential for fostering a sustainable economy in India.
- Budget 2025 presents an opportunity for India to align its policies with global sustainability frameworks and drive economic growth through green initiatives.
Deloitte India's Riddhi Shah, Anuj Agarwal, and Viral Thakker highlight the importance of sustainable growth for India's economic future. With India poised to be the third-largest economy by 2030, sustaining growth momentum is critical, especially amidst subdued growth estimates. The Budget 2025 is seen as a vital opportunity to set a policy blueprint for the coming years. The article emphasizes the significance of integrating sustainability into India's economic aspirations, highlighting the need for policies aligned with global sustainability initiatives.
The authors suggest various pre-budget tax expectations to support sustainable growth, including incentivizing green capital through tax exemptions for investors in green securities. They also recommend extending tax reliefs for long-term investments, developing India's indigenous carbon market, and providing fiscal and policy support for the green hydrogen ecosystem. The article notes that green hydrogen could significantly reduce CO2 emissions in the power and transport sectors and stresses the importance of tax incentives for its development.
Furthermore, the article addresses the need for tax incentivization to boost sustainable mobility, particularly the adoption of electric vehicles. Policies like the Faster Adoption and Manufacturing of Electric Vehicles (FAME) program aim to stimulate the supply side, but additional tax incentives could enhance the adoption of EVs.
In conclusion, the article envisions Budget 2025 as an opportunity for India to align with global sustainability norms by introducing green initiatives and fostering a sustainable economic environment. The proposed tax measures aim to not only attract investment in green projects but also promote a shift towards a more sustainable and eco-friendly economy.
Topics
India
Green Hydrogen
Sustainability
Electric Vehicles
Budget
Economy
Green Financing
Carbon Market
Tax Expectations
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