Liquidity is Key
One of the primary concerns for NBFCs revolves around liquidity. Access to sufficient funds is crucial for their operations, and they're looking to the government
for assistance in this area. Specifically, they are requesting mechanisms to ensure a steady flow of capital. This includes potential measures such as easier access to credit lines and government-backed guarantees to boost confidence among lenders. These steps are seen as essential for allowing NBFCs to continue lending to businesses and individuals, thereby supporting economic activity. The sector's stability is often linked directly to the broader economic health of the country, making liquidity a central theme in their budget expectations.
Boosting Economic Recovery
NBFCs play a vital role in fueling India's economic recovery. They provide crucial financial support to various sectors. As a result, the industry is keen to see budgetary policies that actively foster faster economic revival. NBFCs are advocating for stimulus measures, such as incentives for lending to key sectors. This could mean tax breaks for investments in priority areas. They are also seeking initiatives that simplify regulatory processes, enabling quicker project approvals and faster disbursement of funds. These efforts are aimed at accelerating the flow of credit to businesses, which drives investment, job creation, and overall economic expansion. The NBFCs hope to see a budget that recognizes and reinforces their role as key catalysts for economic growth, especially in the wake of potential economic challenges.
Tax Relief Demands
Tax relief is a crucial demand from NBFCs as they approach the 2026 budget. These companies are hoping for tax benefits and reduced compliance burdens. Their expectations include demands for lowered corporate tax rates to free up capital, and also seeking tax incentives for lending to small and medium enterprises (SMEs) and other crucial segments of the economy. NBFCs are also looking for simplified tax procedures and clarity on tax regulations to lower compliance costs and improve operational efficiency. Tax relief measures would improve their profitability and allow them to invest more in strengthening their lending capabilities and expansion strategies. These tax breaks would help the NBFC sector be more competitive in the market, encouraging more participation in the financial landscape and thereby boosting economic growth.
