Union Budget 2025: Traders Fear Collapse Without Support For Diamond Industry; Demand Tax Cuts, Improved Infrastructure

Traders in Bhavnagar demand reduced GST, improved business infrastructure, and support for the diamond industry, fearing collapse if key sectors are not revived.

Bhavnagar: As the Union Budget 2025 nears, traders in Bhavnagar are eagerly waiting for policies that will benefit their businesses. However, many feel disappointed with the current tax system and the lack of support for the diamond industry. ETV Bharat spoke with the president and members of the Diamond Association, as well as traders from Bhavnagar's main market on MG Road, to understand their demands regarding the budget.

Traders' High Expectations From The Budget

Shopkeepers and traders of Bhavnagar, particularly from Vora Bazaar (MG Road), shared their concerns regarding taxation and business connectivity. Business owners expressed the need for a uniform tax slab, better infrastructure, and policies that would help revise the diamond industry and agriculture, both crucial to Bhavnagar's economy.

A businessman said, "There are so many taxes that it has become difficult for us to do business. The burden of taxation makes it tough for the business class to sustain. The government should consider halving the tax rate to ease operations."

Traders Demand Tax Reductions For Business Growth

The current tax regime remains a concern for many traders. Talking to ETV Bharat, a businessman said, "The government is doing well but the high tax rates are hurting businesses. If the GST rate is reduced from 28 per cent to 18 per cent, we hope our businesses thrive again."

Many other shopkeepers said that high taxation affects not only large industries but also small traders, making it difficult for them to sustain their businesses. They urged the government to take a balanced approach and introduce reforms that would allow businesses to flourish without excessive financial burden.

Connectivity And Diamond Industry Revival Needed

Apart from taxation, infrastructure and connectivity remain crucial concerns for traders. A footwear businessman said, "If we have better connectivity to cities like Mumbai and Delhi, it will help businesses grow. We need better transport options to expand our trade."

Another businessman voiced concerns over Bhavnagar's declining diamond industry, saying, "Except for diamonds, all other industries in Bhavnagar have shut down. If the government does not focus on reviving the diamond industry, Bhavnagar's economy will collapse within a year."

The traders emphasised that the revival of Bhavnagar's diamond industry, along with improvements in agriculture and connectivity is essential for the city's economic growth.

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