Lagatar24 Desk
New Delhi: Akshat Shrivastava, founder of Wisdom Hatch, has outlined six transformative strategies for the Union Budget 2025, focusing on addressing supply-side constraints, enhancing spending power, and encouraging economic growth. His proposals aim to tackle pressing economic challenges and position India as a global growth leader.
Six Power Moves for Budget 2025
1. Address Supply-Side Constraints
Shrivastava emphasizes the need to enhance domestic supply to meet India’s massive demand. He suggests bolstering the tourism sector by standardizing AirBnBs, capping taxi and airfare rates, and offering long-term visas for foreign visitors, drawing inspiration from Dubai’s successful model.
2. Cut Personal Income Taxes
With India having one of the highest personal income tax rates globally, Shrivastava advocates for tax cuts to boost spending power. “Reducing taxes will leave more money in people’s hands, reviving growth in an economy where 60% relies on domestic consumption,” he said.
3. Optimize Government Expenditure
Highlighting inefficiencies in government spending, he proposes reducing revenue expenditure, such as salaries, by at least 50% and slowing down new government recruitments. Shrivastava cites Argentina’s recent economic turnaround as an example.
4. Shift Focus from Agriculture
Shrivastava calls for a gradual reallocation of resources from agriculture to high-value industries. While acknowledging agriculture’s importance, he recommends scaling the sector and up-skilling workers for opportunities in other industries.
5. Support Small Businesses
He suggests linking tax breaks to job creation, offering incentives based on the number of employees hired. Shrivastava also advocates simplifying compliance processes, making it easier for small businesses to access credit and manage taxes.
6. Eliminate or Reduce Capital Gains Tax
Shrivastava urges the elimination of capital gains tax to promote investments. He cites countries like the UAE and Singapore, where zero capital gains taxes attract wealth creation. “Investors should not be taxed twice on their risk capital,” he said.
