NEW DELHI: As the country steps into 2025, the aspirations of its corporate sector – India Inc – are anchored in four overarching priorities: regulatory reforms, technological leadership, fiscal prudence, and measures to boost consumption. These focus areas reflect a collective ambition to propel the nation toward sustained economic growth, global competitiveness, and a robust business ecosystem.
A major wish for 2025 is the simplification of regulations and the removal of outdated laws that stifle entrepreneurship. Nilesh Shah, managing director of Kotak AMC, underscores the need to end the “Inspector Raj” and streamline bureaucratic processes, creating a more dynamic and innovation-friendly business environment.
“India’s partnerships with the United States in areas like IT and generic medicines also play a pivotal role,” Shah said. Expanding these collaborations to other industries could further strengthen India’s position in global markets. This strategic integration is essential for Indian businesses to gain better access to international markets, increasing their competitiveness and fostering economic growth, according to Shah.
Innovation and technology remain at the heart of India Inc’s aspirations. Leaders like Saugata Gupta, MD & CEO of Marico, emphasise the importance of “innovation, affordability, and availability as key drivers of growth” in sectors like FMCG. Gupta expects rural consumption to “continue its steady growth while urban consumption revives in the coming quarters”. With a focus on diversification, he sees 2025 as a year of opportunity to “accelerate momentum and capitalise on emerging trends”.
From the FMCG sector to hospitality, leaders like Ritesh Agarwal of Oyo see artificial intelligence (AI) and machine learning as critical for creating personalised offerings and showcasing India’s technological prowess on the global stage. AI’s transformative applications extend beyond business, impacting healthcare, mobility, and scientific discovery.
Tata Sons chairman N Chandrasekaran in his year-end note to the group’s employees, highlights the AI-driven breakthroughs such as protein structure prediction, which “are poised to revolutionise drug discovery and diagnostics, as well as expand access to clinical care and environmental research”.
Fiscal discipline remains a cornerstone of India Inc’s wish list. Healthy bank and corporate balance sheets, combined with prudent economic management, are key to attracting investment and ensuring private-sector-led growth. Shah and other corporate leaders emphasise the importance of leaving a legacy of “assets, not debt,” for future generations.
According to Harsha Vardhan Agarwal, managing director of Emami, and president of Ficci, India’s economic fundamentals remain strong, with healthier bank and corporate balance sheets supporting the next phase of growth. His wish is for the government to continue its efforts on fiscal discipline, ensuring the country’s economic stability and paving the way for a future-ready India. The upcoming Union Budget in 2025 is expected to play a pivotal role in advancing these initiatives and fostering an environment conducive to growth, Agarwal said.
Chandrasekaran foresees 2025 as a transformative year for manufacturing, driven by global supply chain realignments that prioritise resilience over efficiency. This shift positions India as a critical player in global manufacturing. Tata Group’s ambitious plans include creating 500,000 manufacturing jobs over the next five years and establishing cutting-edge facilities, such as India’s first semiconductor fabrication unit in Gujarat and advanced OSAT plants in Assam. These projects are expected to generate significant indirect employment opportunities and bolster India’s position as a manufacturing hub.
Reviving consumption across urban and rural markets is another major priority. While rural demand is showing signs of recovery, urban consumption faces challenges due to inflation and stagnant wage growth. Mohit Malhotra, CEO, Dabur India, stresses the need to “boost consumer confidence, address inflation, and promote wage growth” to drive demand in urban markets.
In the retail sector, Kumar Rajagopalan of the Retailers Association of India calls for “lower taxes, skill development programmes, and policies to stimulate demand generation”. Simplified regulations and supportive measures will be critical for the sector’s sustained growth and its ability to contribute to the broader economy.
Chandrasekaran sees this period as a “new manufacturing golden age for India,” fueled by global supply chain shifts and investments in state-of-the-art facilities. Projects like semiconductor manufacturing, electronics assembly, and solar module production represent significant advancements that will position India as a leader in manufacturing and high-tech industries. The multiplier effect of these initiatives will extend far beyond job creation, empowering India’s youth to contribute to the nation’s progress.
As India Inc looks ahead, the priorities of regulatory reforms, technological advancement, fiscal discipline, and demand stimulation form a cohesive strategy to build a future-ready economy. By capitalising on its strengths and addressing existing challenges, India can continue its journey toward becoming a Viksit Bharat – a developed nation where businesses thrive, consumers prosper, and the country takes its rightful place on the global stage.
Source: The Financial Express
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