Budget 2025 Expectation: Simplified GST, Newer MSME Policies ... - Key Demands Of Fintechs, MSMEs

As the Union Budget 2025 approaches, expectations are surging across sectors. From the fintech transformation to healthcare challenges and infrastructure aspirations, here’s a roundup of key demands from industry experts.

What is fintech asking for?

Digitalisation has helped India become a global leader in digital transactions, accounting for nearly 46% of the world’s total. Ankur Maheshwari, CFO of Freo, stressed that achieving the vision of Viksit Bharat will require scaling up the financial sector by 20 times. This calls for a robust focus on real-time innovation, enhanced data privacy policies, and resilience to global challenges.

He expects the budget to enhance collaboration amongst banks, NBFCs, fintechs, and digital infrastructure through investments in AI, blockchain, and MSME credit support. These initiatives will not only strengthen Digital India but also drive inclusive economic growth.

Sahil Lakshmanan, Chief Business Officer at CarePal Money, added that fintech’s role in healthcare financing is critical, especially for emergency medical needs. He believes a forward-looking framework boosting innovation, inclusion, and growth in the fintech sector will be a highlight of this year’s budget.

Ameet Venkeshwar, Chief Business Officer at LoanTap, echoed these sentiments, noting that fintech innovation and inclusion should remain top priorities. Referring to the significant growth in MSME credit in Q2 2025—micro and small enterprises up by 13.4%, and medium enterprises by 20.5%—he expects the government to introduce targeted incentives. “We may see new policies for MSME expansion and special incentives for NBFCs lending to small borrowers and environment-friendly assets like electric vehicles,” he added.

MSME's key focus area

The MSME sector continues to be the backbone of the economy, with promising credit growth of 13.4% in micro and small enterprises and 20.5% in medium enterprises in Q2 2025. Ameet Venkeshwar, Chief Business Officer of LoanTap, foresees government policies incentivising NBFCs to provide more credit for MSMEs, small borrowers, and eco-friendly assets like electric vehicles.

“This could be the year for introducing new investment opportunities and policies to expand MSME growth,” he remarked.

What gaps healthcare wants to bridge?

The healthcare sector has its eyes set on addressing inefficiencies in flagship schemes like Ayushman Bharat. Sahil Lakshmanan highlighted that while the scheme has benefited economically weaker sections, only 43% of empaneled hospitals are private. Delayed reimbursements and low rates discourage private participation.

With healthcare spending as a percentage of the total union budget declining from 2.3% in 2019-20 to 1.89% in 2024-25, Lakshmanan stressed the need to balance flagship schemes with investments in government-funded hospitals to ensure equitable access.

Infrastructure and urban connectivity

For the car rental industry, a simplified tax regime is the top demand. Ashok Vashist, CEO of WTiCabs, pointed out the challenges posed by multiple GST rates—5%, 12%, 18%, and 28% with cess—on car leasing. This not only increases costs but also complicates accounting.

He urged the government to introduce a uniform GST rate of 5% without ITC for car rentals and leasing. Additionally, a unified one-time state entry tax for commercial vehicles could streamline operations and boost road transportation.

Vashist also lauded recent improvements in road infrastructure, which have boosted tourism and intercity travel, but stressed the need for similar urban development initiatives. Investments in 5G rollout and digital transformation will further accelerate growth across industries.