**Tax Benefits and Strategic Interventions in Budget to Propel SME Growth**
New Delhi, Jan 29 (PTI) – Experts believe that tax incentives for adopting emerging technologies such as AI, the establishment of dedicated manufacturing zones, and the expansion of credit guarantee schemes in the upcoming Budget will significantly enhance the growth of small and medium enterprises (SMEs). They highlighted that AI-driven credit assessments and risk profiling could streamline loan approvals and broaden credit access for SMEs.
Nitin Jain, Co-Founder and Chief Business Officer of Business Group, emphasized the necessity for enterprises to integrate AI, automation, and digital tools to boost productivity and competitiveness. “The government should implement tax benefits and subsidies to facilitate this transition,” Jain stated, noting that creating dedicated manufacturing zones equipped with modern infrastructure, efficient supply chains, and shared resources would allow SMEs to scale effectively. He pointed out that SMEs, which account for 30-35% of GDP and employ over 110 million individuals, require strong policy support to enhance manufacturing capabilities and secure affordable credit. The forthcoming budget offers a prime opportunity for strategic interventions to drive this transformation.
“Investing in digital upskilling, financial literacy, and AI-focused training programs will equip SMEs for the changing industrial landscape, ensuring a sustainable talent pipeline,” Jain added.
Dinesh Yadav, Founder and Managing Director of Fine Acers, expressed optimism for the real estate and hospitality sectors in Budget 2025, anticipating policy reforms that could significantly influence future investment landscapes. “Streamlining licensing and compliance processes will be crucial in attracting substantial investments,” Yadav remarked. He noted that the sector currently faces challenges due to complex licensing requirements, multiple approvals, and high taxes, which deter hospitality investments, especially for capital-intensive projects with lengthy gestation periods. “Implementing single-window clearances would simplify business operations, reduce costs, and minimize delays,” Yadav concluded.
