Budget 2024: What do different sectors and industries expect from the Finance Minister?
Budget 2024: From agriculture, infrastructure, and healthcare to education, banking, and industry, experts are expressing their common desire for a Budget that promotes growth, supports innovation, and improves societal well-being.
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Budget 2024: On February 1, Finance Minister Niramala Sitharaman will present the last Budget of the Modi 2.0 government as India will hold the Lok Sabha election in April-May.
Various sector and industry experts are looking forward to the announcements and expect some positive changes. From agriculture, infrastructure, and healthcare to education, banking, and industry, experts are expressing their common desire for a Budget that promotes growth, supports innovation, and improves societal well-being.
ZeeBiz has curated a list of things that experts expect from Budget 2024.
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George Alexander Muthoot, MD, Muthoot Finance
Granting ‘priority sector status’ to gold loans and allowing a ‘Gold linked credit line via UPI’ can go a long way towards helping households and small business owners meet their financing needs and monetise idle gold jewellery.
"We believe giving priority sector status to eligible gold loans will benefit the bottom of the pyramid and enhance financial inclusion. Herein, gold loan NBFCs can play an important role in fulfilling the needs of small borrowers, self-employed, and microbusiness owners and helping address their financial or working capital needs," the MD adds.
Extending priority status to all micro gold loans (under Rs. 50,000) by removing the current distinction between NBFCs and banks can enable gold loan NBFCs access to increased funding.
Murthy Nagarajan, Head-Fixed Income, Tata Asset Management
This budget is expected to focus on investment and increasing the supply side of the economy. Given the initial forecast of a normal monsoon, consumer price index inflation for next year should be below the Reserve Bank of India (RBI) projection of 4.5 per cent.
This should lead the RBI to change its stance to accommodate the withdrawal of liquidity and rate cuts of at least 50 basis points. This should support GDP growth at the margin, as consumption growth has weakened due to higher inflation. Lower interest rates are expected to keep the bond market buoyant next year.
M. P. Ahammed, Chairman, Malabar Gold & Diamonds
To unlock the potential of the organised jewellery retail segment, the budget needs to propose a reduction in the import duty on gold. A higher gold import duty is detrimental to the growth of the organised jewelry retail sector, as it indirectly promotes gold smuggling and unauthorized grey market transactions. The budget also needs to propose measures to control unaccounted business practices by implementing effective tax compliance and transparency mechanisms. The interim budget should also propose measures to create a broader pathway for growth for the organised jewellery retail segment.
Marzban Irani, CIO, Fixed Income at LIC Mutual Fund Asset Management Ltd
The centre should try to adhere to the fiscal deficit target as it gives a clear signal to global investors. The G-Sec is getting listed on global indices now. The government might announce popular measures before the general election. Although the supply looks similar to last year’s, demand is also strong.
Dhiraj Relli, MD & CEO, HDFC Securities
The government is likely to stay on the fiscal course-correction glide path in the Interim Budget for FY25, shunning populist spending or incentives ahead of the summer general election. While sops for two (poor and farmers)out of four castes (as per PM Modi) have already been announced time and again, some sops for the other two (women and youth) could be announced with minimal impact on the deficit.
The FY24 fiscal deficit target may just be met despite high revenue collections due to lower nominal growth.
The capital markets may get a little excited by the vote on the account but may prefer to wait for the general election outcome and the regular Budget before getting very bullish.
Arun Shukla, President and Director, JK Lakshmi Cement
Amidst robust infrastructure development, we anticipate strong cement demand, spurred by increased budgetary support for roads, railways, and rural projects, further boosted by initiatives like PMAY. I would like to draw the government's attention to helping address rising input costs through GST rationalisation and easing import duties on key materials like coal and pet coke. Additionally, budgetary support for sustainable practices and manufacturing innovation is vital. These steps, alongside improved logistics and export policies, will stabilize costs and enhance our contribution to India's sustainable infrastructure growth, marking a significant stride in the development of the cement and infrastructure sector.
We firmly believe that with these targeted measures, the cement industry can thrive and significantly contribute to India's infrastructure development, creating new job opportunities and bolstering the nation's economy.
Jayesh Jain, Group CFO, Balancehero India
The interim budget of 2024 offers an opportunity for the government to catalyse innovation and inclusivity within the digital lending sector. We expect that the government will put a greater emphasis on creating a more stable and efficient digital infrastructure for the industry. We also propose that the government establish a Fintech Fund, more specifically for Lendtech. Companies with their own NBFCs should be given priority, and they should receive more affordable debt.
Ramani Sastri - Chairman & MD, Sterling Developers Pvt. Ltd
There is an express need for more tax sops for both homebuyers as well as investors. The government should raise the deduction limit for interest payments on home loans from the existing Rs 2 lakh a year to Rs 5 lakh, which will add momentum to housing demand, reduce GST reduction on under-construction properties, and effect adjustments in raw material pricing. For a large section of the population, affordability remains the biggest challenge and hence there should also be expansion in the definition of affordable housing as this would expand the benefits for homebuyers and hence boost the end-user demand. Any tax exemption from rental income will also encourage greater investment in residential real estate.
We are optimistic that the government will shape its policy actions to promote demand even further this year which has witnessed stellar growth recently and incentivise people to buy more properties, as the sector is the primary contributor to economic growth. The upcoming interim Union Budget will play a crucial role in defining and sustaining the real estate sector's growth in the coming days reaching newer heights.
Sonal Badhan, Economist, Bank of Baroda
We expect the government to stick to its path of fiscal consolidation, without compromising on quality of expenditure. In the wake of weaker monsoons and pressure seen in the Rabi sowing season, the focus will be on providing support to rural growth. Important schemes such as PM-KISAN, MGNAREGA, Housing for all, and free food grains, will continue
to hold significant importance. In addition, the focus on infra-spending will also remain. On the receipt front, growth is expected to stabilise, in line with nominal GDP growth. For the government to achieve fiscal consolidation, while maintaining spending momentum at the same time, we do not foresee room for any tax cuts. The borrowing program
will also remain relatively unchanged. Inflows from inclusion into the JP Morgan EM index will provide additional avenues for borrowing.
Kunal Gala, Partner, Deal Value Creation, BDO India
Expectations are high for impactful economic shifts. Key forecasts suggest a strategic cut in corporate tax rates, aiming to reduce the fiscal deficit to 5.2 per cent of GDP in FY25. There is a strong focus on greener fuels aiming to revolutionise the energy sector. Additionally, targeted support for microfinance institutions is anticipated, enhancing their reach and stability. As elections approach, the budget is expected to include prudent populist measures, striking a balance between economic strategy and voter appeal.
Neetika Suryawanshi, CFO, Pakka Limited
We anticipate a budget prioritising capital expenditure to foster essential production capacity growth across industries. Urgently needed is the stimulation of industrial growth, particularly in the packaging sector and sustainability-related industries. Government support, encompassing infrastructure development, tax incentives, and funding for research & development, is crucial. Substantial R&D investments are imperative to enhance technical skills, meet stringent quality standards, and broaden capabilities across diverse sectors. What defined India's next in terms of growth will be driven by innovation, invention specifically around sustainability.
Ajinkya Firodia, Managing Director, Kinetic Engineering Ltd
In the upcoming 2024 budget, we are looking forward to several changes in the economic landscape. We anticipate subsidies for companies undertaking substantial, long-term investments, fostering economic growth. With a significant portion of electronic key components still imported, there is a need to incentivise local manufacturing of crucial elements like battery cells and magnets for motors. Enhanced import duties for non-electronic components aim to bolster domestic manufacturing, addressing concerns about substandard imported goods tarnishing the sector’s reputation. Additionally, a reevaluation of the import structure for electric vehicles is sought, as the existing system results in cash blockage owing to disparities in Goods and Services Tax (GST) rates.
To position India as a hub for EV manufacturing and exporting, the budget is anticipated to introduce additional incentives for EV exports, capitalising on the comparative advantage of lower import duties in Europe compared to China. Thus, the 2024 budget is eagerly awaited to provide the necessary support for economic growth, innovation, and sustainability.
Joseph Pasangha, Group COO, SPARSH Hospital
The interim budget for 2024 should be a forward-thinking investment in healthcare that goes beyond conventional limits. A strategic distribution of resources, along with tax benefits and incentives for both innovation and infrastructure development, will not only enhance the quality of patient care but also strengthen the entire healthcare ecosystem. To make healthcare more reasonably affordable, the sector requires relief. We expect clear and efficient processes for selecting, implementing, and monitoring Public-Private Partnerships (PPPs). Well-defined guidelines and a cooperative approach between public and private entities can nurture successful partnerships, addressing crucial healthcare needs nationwide. A heightened emphasis on robust policy support is crucial to further cultivate medical value travel to India in the current scenario.
Anand Bang, COO – Sales & Marketing, Tata Motors Finance
As NBFCs are emerging as frontrunners in pivoting the nation's economic trajectory, the upcoming budget requires maintaining a strategic outlook for NBFCs, particularly accounting for their reach, technological advances, and capabilities in understanding the financial needs of the unbanked and underserved populations to fully tap the entrepreneurial aspirations of India Inc.
Pankaj Gupta, MD & CEO, Pramerica Life Insurance
From our perspective, we anticipate a year of ongoing change in the insurance sector, characterised by technological advancements, enhanced focus on customer experiences, and an increasing emphasis on environmental and social responsibility.
Looking at the economy more holistically, the enduring commitment to the 'Make in India' initiative of the government will help increase capital expenditure and also help improve long-term productivity. Capex as a part of total spending has risen from 12 per cent in FY20 to 22 per cent in FY24. With private capex recovery still in the incipient stage, the government is likely to persist in its focus on capex. We are expecting a year-on-year growth of 20-25 per cent in FY25. The government is also giving due cognizance to fiscal consolidation, aiming for a fiscal deficit target of 4.5 per cent in FY26.
Sachin Kothari, Director, Augmont Gold For All
As 2024 is going to be an interim budget, the government is likely to continue with manufacturing incentives, upgrade infrastructure-related capex in the country, and promote Make in India, electric vehicles, and power generation. We anticipate and hope that the government will lower tariffs on gold imports, rationalise pricing, and thereby contribute to the formation of a level playing field between the regular and grey markets.
Rakesh Goyal, Managing Director, Probus Insurance broker
The insurance industry advocates for a reduction in the GST on insurance products, a move that would significantly benefit consumers across the nation. The current 18 per cent GST rate is deemed excessively high, and anticipation exists for a revision. Moreover, there's a call for greater flexibility for deductions from health insurance for personal use, family needs, and senior care. Additionally, there is a business plea for distinct deductions within Section 80C of the Income Tax Act, particularly for insurance, a measure that holds promising potential for long-term business growth. These proposed adjustments collectively aim to create a more favourable environment for both insurers and policyholders.
Sanjay Borkar, CEO & Co-Founder, FarmERP
In anticipation of the upcoming budget, we are hopeful for policies that not only streamline regulatory processes but also encourage cross-border collaborations, fostering a global, collaborative approach. The key to advancing our agricultural sector lies in government initiatives that incentivise cutting-edge technologies, encompassing sustainable and precision farming, AI-driven analytics, and smart irrigation systems. By nurturing innovation, sustainability, and digitalisation, the budget has the potential to propel agriculture into a future marked by resilience and efficiency.
A favourable budget should allocate resources for agricultural technology R&D, focusing on solutions to address evolving agribusiness needs. Incentives for organic farming and a comprehensive approach to ensuring food supply accessibility and affordability are vital for a sustainable global food future.
Hrishikesh RajPathak, Co-Founder & CTO, nRoad
We need to introduce a clear regulatory framework with guidelines on issues like data privacy, ethical AI, and sustainable practices which will be critical for enhanced trust by users and encourage the responsible use of data, crucial for the success of AI. Also, we need to see more enthusiastic adoption of such technologies into governance and key public sector services like transportation, smart cities, and also in critical areas like defence. Lastly, incentives for skills development in this area are critical to keep the Indian workforce ready for existing and future needs which can also help boost employment to a great extent.
Anshuman Magazine, Chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE
Recognising the evolving landscape of the real estate sector, our forward-looking recommendations for the interim budget 2024 focus on pivotal changes to the taxation framework and policy reforms to propel sustainable growth. We advocate the urgency to raise the interest deduction limit under Section 24B on housing loans to a minimum of Rs 5 lakh per annum, considering the limit has not been indexed to inflation for a long time.
We urge the extension of the 100 per cent tax holiday for developers engaged in affordable housing projects, recognising their inherent low margins. Extension of the PMAY(Urban) scheme must be considered aligning it with the government's vision to construct affordable houses. We urge the government to increase the outlay on the scheme and extend the scheme by a few years to further embolden the affordable housing sector. Additionally, the government can also introduce tax incentives under Section 80C for investors in real estate investment trusts (REITs).
This would enable REITs to emerge as an attractive tax-saving instrument, further encouraging prospective investors. Our forward-looking proposals aim to create an environment that fosters sustainable growth, encourages investment, and addresses the evolving needs of the real estate sector in India.
Shantonu Ghosh, Partner, Vector Consulting Group
India faces a shortage of 33 million skilled labourers in the building and construction sector, which is pushing to cross the $1 trillion mark by 2030. The traditional ‘guru-chela’ method of skill upgradation is too slow, and this is where the government needs to step in and set up training facilities for faster and larger skill learning. Private sector in real estate should also collaborate to make this initiative viable and sustainable in the long run. We need to create such large institutions that become the cornerstone of training and skilling for the real estate sector. The real estate sector needs it, and by extension, the country needs it to solve the unemployment paradox.'
Rajat Deshpande, CEO and Co-founder, FinBox
We anticipate the upcoming budget to catalyze transformative changes in the financial landscape and look forward to robust support for digital infrastructure, emphasizing ONDC and OCEN. Incentives for Fintechs driving financial access, MSME support, and government backing for innovation through incubators and tax benefits are crucial. To propel India's USD 5 Tn economy goal from the upcoming budget, we expect measures facilitating small and medium businesses' credit access via scalable frameworks like OCEN. Continued support and tax benefits for FinTechs will democratize formal credit access. As a part of IndiaStack, UPI, JAM, and KYC, we hope for a consistent KYC framework for efficiency and regulatory collaboration fostering trust.
On a global scale, policies and infrastructure incentives for Fintechs in GIFT City are anticipated. Acknowledging the interim budget's populist nature, I seek stability amid potential changes. Balancing inflation concerns, we look forward to schemes boosting credit access for MSMEs, farmers, and agriculture.
Arjun Bajaj, Director, Videotex
The television manufacturing sector has yet to receive any advantages from PLI schemes or similar incentives. Additionally, the Indian industry sees considerable export potential, particularly in the Middle East and neighbouring countries. Government support in this regard could propel industry growth, create more job opportunities, and contribute positively to the economy.
Furthermore, TVs larger than 32 inches are currently classified under the luxury segment, attracting a GST of 28 per cent. However, in the present scenario, TVs are no longer just luxury items; they have become essential household components. Reducing the GST on these larger TVs could lower prices, potentially boosting sales and fostering growth in the television industry.
Vishnu Manchu, Pro-Chancellor, Mohan Babu University and CEO, Sree Vidyanikethan Educational Trust
Anticipating the Union Budget 2024, we are optimistic about a transformative fiscal policy addressing key nation-building pillars, aligning with the objectives outlined in the National Education Policy (NEP). We expect the government to bring about a crucial shift from subject-based to skill-based learning, placing a particular emphasis on mathematics, computer science, and data science. Additionally, creating a robust research ecosystem is equally vital, necessitating provisions for funding research students to catalyse path-breaking innovation.
Recognizing the gender gap in educational attainments, we call for additional funding and schemes to ensure gender parity in education, contributing to the inclusive vision of 'Amritkaal.' To bolster tertiary education enrollment, we anticipate allocating funds for attractive loan schemes and scholarships, aligning with the NEP's emphasis on accessible and quality higher education.
Addressing the shortage of qualified teachers is a priority, requiring investments in teacher training programs and incentives for educator retention. The proposed 'National Research Foundation (NRF)' under the NEP offers opportunities for meaningful industry-academia collaboration. The budget could incentivize this, fostering data sharing and technical support for researchers to drive innovation and bridge the gap between academic research and industry needs.
Our expectations extend towards initiatives fostering innovation, skill education, job creation, and social welfare, recognizing their interconnected role in shaping a resilient and prosperous nation. A well-crafted education budget can act as a catalyst for empowering future generations, fostering research and development, and bridging socio-economic gaps. Our sincere hope is that the Union Budget 2024 reflects a steadfast commitment to nurturing a knowledge-driven society, laying the groundwork for a brighter and more equitable future for all citizens.
Ankit Maini, Managing Director, Veira Group
In the pre-budget expectations, encouraging Indian players to explore export opportunities and reducing import duties on open-cell components linked to technology transfer agreements will propel the success of the 'Made in India' initiative. This holistic approach fosters a competitive local industry and contributes substantially to the country's overall economic growth.
Yogesh Agarwal, Founder and CEO, Onsurity
In anticipation of the upcoming union Budget, I recommend the government consider a strategic move to elevate insurance accessibility. Offering GST credit to small and medium-sized businesses that prioritise employee insurance and wellness costs could be a transformative step.
Furthermore, the creation of a health savings account and offering tax benefits on OPD healthcare expenses, up to a reasonable cap, for senior citizens would be a progressive measure.
In light of escalating medical inflation, the government must assess its impact on low-income households grappling with substantial out-of-pocket expenses. A thorough review and potential interventions in this regard would be pivotal in ensuring the affordability of healthcare services for all segments of the population.
Aneel Gambhir, Chief Financial Officer, DTDC Express
We urge the government to address the logistics sector’s unique needs by enhancing the strategic allocations toward infrastructure development, tax reforms, and other governance policies. Besides this, the importance of digitally advanced processes through cutting-edge technologies including artificial intelligence, machine learning, IoT, and big data is also required.
Additionally, the inclusion of diesel under the GST ambit is a critical move that we hope the government will consider in this budget. Last but not least, facilitating a strong policy framework is essential to reduce expenditure, and improve transportation, and warehouse facilities to continue the growth achieved by the logistics industry. Further, strengthening the National Logistics Policy (NLP) can bring a massive change and streamline operations for the industry in the future.
Madhusudan Ekambaram, Co-Founder & CEO, KreditBee
As we look ahead to the upcoming budget announcement, there are two critical areas that warrant attention for the continued growth and resilience of the financial sector. Firstly, we urge the government to consider easing rules towards reverse flipping foreign holdco entities, fostering a more conducive environment for international investments. Secondly, addressing the challenges faced by NBFCs due to increased Risk-Weighted Assets (RWA) is paramount. This has inadvertently elevated the cost of borrowing from banks, impacting the crucial role NBFCs play in extending credit to various sectors of the economy. Streamlining RWA norms will not only ensure a more efficient lending ecosystem but also contribute significantly to the overall economic stability, fostering a more conducive environment for listing in Indian Markets.
Satishwar B, MD & CEO, Aegon Life Insurance
Changing tax sections 80C and 80D to provide separate tax breaks for the life-threatening risk part of life and health insurance payments, as well as for fixed-term insurance plans, could help close the gap in death risk coverage and enhance social security. Permitting individuals to deduct the entire amount paid for life insurance premiums from their taxable income, as stated in Section 56, without any decrease due to claims made under other sections such as 80C, will encourage more people to buy insurance. This means they get the full tax benefit for their insurance premiums, making insurance more financially appealing. Also, lowering the GST on term life insurance and applying a 'Zero rating' for certain essential policies like the Pradhanmantri Jeevan Jyoti Bima Yojana, smaller insurance policies covering up to Rs 2 lakh, and annuity products for National Pension Scheme subscribers. By effectively removing the tax without sacrificing tax benefits for businesses, this policy aims to enhance financial security for more citizens.
Tarun Chugh, MD & CEO, Bajaj Allianz Life
The industry is hopeful that the interim budget will introduce much-needed reforms to incentivize the purchase of insurance and enhance the industry’s efforts to increase insurance penetration within the country. With a significant number of people heading towards retirement age in the next decade, incentivizing the purchase of products in the pension category becomes crucial in this interim budget. It is recommended that life insurance annuity or pension products be aligned with the National Pension Scheme (NPS). We also advocate for an additional deduction of Rs 50,000 or more. Additionally, similar initiatives will be required across our product categories, including pension products, ULIPs, and even traditional plans. I believe customers will benefit from them and will have more reasons to invest in the industry for their long-term financial goals, thereby fuelling India’s development.
Ramit Sethi, Co-founder, Seclude Hotels Home Style
India in 2024 is poised for a resurgence in domestic and inbound tourism, with the potential to become the ultimate choice for global travellers. To effectively compete at this level, the government must pivot its focus to forge new categories which are in line with evolving trends and guest’s expectations. Regular tourist circuits offer the expected and there is untapped potential to attract inbound and domestic tourists by promoting experiential hospitality. The discerning traveller of today is shunning the mundane, opting for heritage stays, homestays, villas, wellness tours, and nature retreats. To put India on the global map, an increase in budgetary allocations on schemes like Swadesh Darshan 2.0, PRASHAD, 'Adopt a Heritage,' and CSSS will boost prospects. Expanding overseas marketing, travel trade, and robust tourism infrastructure is not just a smart move, but a strategic welcome. There has been a steady rationalisation of GST rates which were earlier 28 per cent to 18 per cent on hotel tariffs above Rs 7,500 in 2019; however, the room tariff ceiling should be increased to at least Rs 10,000 to make us more competitive with other foreign destinations competing for market share. The Tourism industry suffers first due to Landslides, traffic jams, foggy conditions, pandemics, and “rallies blocking highways”. There is no relief package available to hoteliers that can help tide tough times. The hospitality industry is going to contribute a whopping USD 69 Billion to India's GDP by 2047 as per Invest India. Our words to the Finance Minister are “Give us support and we will give you Gold Standard Hospitality in the true spirit of Athithi Devo Bhavah".
Davinder Juj, General Manager, Eros Hotel, New Delhi
In anticipation of the upcoming Union Budget 2024, the hospitality sector in India stands at a crucial juncture, showcasing significant growth prospects. According to a recent report by the Hotel Association of India, the sector is poised to contribute a substantial $1,504 billion to the country's GDP by 2047, marking a noteworthy increase from $65 billion in 2022. To ensure the continued development of the hospitality industry, several key expectations deserve attention. These include allocating funds for essential infrastructure development, revisiting the current tax structure to stimulate demand, increasing budgetary support for tourism promotion, enhancing digital infrastructure, and encouraging sustainability initiatives. We also anticipate that the government in upcoming budet earmark resources for skill development and establishing robust training infrastructure, the government can empower the workforce, stimulate job creation, and fortify the foundation of a skilled talent pool within the hospitality sector. This strategic focus on human capital development will not only support the industry's expansion but also positively impact India's economic landscape by fostering innovation, excellence, and long-term sustainability.
Mahesh Krishnamoorthy, Managing Director, Core Integra
Being the election year, the salaried class would have high expectations from the Budget. A few ask could include raising the basic exemption slab to at least Rs 5 lakh and simplifying the tax rates to 10 per cent, 20 per cent, and a maximum of 30 per cent along with eliminating the surcharge and cess. Income Tax Returns could be simplified for Employees who have not other source of income other than salary, the submission by the Employer along with TDS as applicable must be considered as auto filing of returns.
Jayanth Jain, CEO, GM Modular
As we approach the announcement of the Budget 2024-25, we expect that the government will further prioritise infrastructure development and promote measures that boost regional manufacturing under the Make-in-Indian theme. Furthermore, we anticipate efforts to promote digitalisation for inclusive growth. Our expectations from the forthcoming budget 2024-25 revolve around creating advancement in the technological landscape and stimulating innovation in the electrical industry. This will provide opportunities for companies like us to extend our product offerings and enter new segments and geographies. We also hope to see more incentives for R&D in the sector, as well as initiatives to address any industry-specific difficulties, such as supply chain interruptions or rising raw material costs. In general, we believe that a budget focused on these areas will benefit not only the electrical industry but will also contribute to the country's general economic growth.
Ajay Nemani, Founder, FF21
As we approach the Budget 2024-25, expectations across the board are at an all-time high. Coliving business is no different. The housing option is positioned to address the increasing need for flexible and hassle-free accommodation solutions with their innovative strategy and focus on communal living. The industry and other stakeholders have long desired that the government grant coliving/student housing sector industry status. This will aid in the formalisation of the industry and its participants, allowing for easier access to finances and other benefits. Furthermore, industry status would provide the sector a larger voice in policy choices, ensuring that coliving housing providers' demands and concerns are effectively handled.
The application of GST laws has been inconsistent due to a lack of precise definition, affecting tax compliance. Housing, an essential necessity, expects the government to review tax slabs and maintain the lowest effective rate for end customers. Because the coliving industry fills a need for long-term accommodation/housing, it would be beneficial if the government could consider classifying these as residential services so that applicable utility rates are in line with residential units rather than current commercial slabs.
Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services.
There is a high level of uncertainty about the possible proposals in the interim budget. The finance minister had gone on record stating that “there won’t be any spectacular announcements” in the interim budget. So it is most likely to be a vote on account plus some possible relief in income tax for the lower income tax slabs. Major public capex is unlikely since the FM has to achieve the fiscal deficit target of 5.9 percent for FY24 targeted in the 2023 budget. Also, the massive public expenditure done through the budget provision last year has helped in triggering growth in the Indian economy. Therefore, the government’s priority would be to achieve fiscal discipline.
Mohit Ralhan, Chief Executive Officer, TIW Capital
India’s growth outlook remains robust despite a highly uncertain global macroeconomic environment. The interim budget will be focused on sustaining the growth momentum without compromising on the glide towards a 4.5 per cent fiscal deficit to GDP by FY 2026 from the budgeted 5.9 per cent in this fiscal.
One area of opportunity could be to incentivize global manufacturers to set up shops in India as they look to reduce dependence on China. To achieve this, the finance minister could broaden the scope of PLI scheme beneficiaries. This will not only boost our exports, which are under pressure due to a slowdown in major economies but also lead to employment generation in non-metros.
Over the last 5 years, the government has prioritised spending on infrastructure. This is likely to continue. While roads and railways will continue to be big beneficiaries, allocation towards power might increase this year. Achieving energy security in a highly uncertain geopolitical environment will gain precedence.
The startup ecosystem has been facing a funding crunch for some time. To ameliorate this, the government could increase the allocation to Fund of funds and the Start-up India Seed Fund. Incentivizes could be announced for ventures in tie-ups with academia such as in the AI space. Measures could be announced to reduce the compliance burden on funds and angel investors. The finance minister could also offer some clarity on ESOP taxation.
Niraj Kumar, Chief Investment Officer, Future Generali India Life Insurance Company Ltd
With Budget 2023 being characterized as a Pro growth and Capex oriented budget, we reckon Budget 2024 to be another elixir to sustain the current pace of economic growth. The government will adeptly do a fine balancing act of sticking to the fiscal prudence path, while focusing on pro-growth measures. With the backdrop of India’s goldilocks economic landscape viz. receding inflation, resilient GDP growth, contained CAD, the Interim Budget 2024 is likely to leverage on the same and try to pump prime the economy. The focus will continue to be on structural growth enablers such as continuing focus on infrastructure, additional sectors under PLI (production-linked incentive) scheme for manufacturing push and sustained push towards green energy transition. The budgeted capex orientation is likely to stay although the growth is likely to moderate from its peak 35per cent growth seen in the recent past. Besides with the impending pivot of Monetary policy towards the rate cut cycle, the fiscal pro-growth measures
would get the requisite support and manifest in the growth numbers. Importantly as it’s a Pre-election Interim Budget, the focal point would continue to be upliftment and growth of the bottom of the pyramid by way of announcing some welfare measures on rural / Agri schemes. Overall, we expect the budget to give the requisite structural push for economic growth.
Akash Sinha, CEO & Co-Founder, Cashfree Payments
In the Union budget 2024-25, the government should further push for initiatives that will focus on boosting adoption of digital payments in tier 2 and beyond regions. Policies should incentivise creation of a fertile environment for fintech startups to innovate and build products and solutions that will be more inclusive, adaptable for both consumers and businesses. I also expect the introduction of regulatory frameworks that will help curb digital fraud and build a safer and more secure digital payment environment, reinforcing the trust of users in digital transactions. There is a call for the implementation of a standardized KYC framework across all financial services, aiming to enhance efficiency and promote financial inclusion, in a secure way. Overall, the budget should also announce some provisions to ease financial burden on fintechs and provide tax saving benefits to startups in the sector.
Dr. Alok Misra, CEO & Director, Microfinance Industry Network (MFIN)
RBI regulated microfinance institutions as of date provide collateral free doorstep credit to 71 million low-income women clients. The contribution of microfinance to inclusive growth story of India requires some critical policy support.
First, MFIN has been advocating for a dedicated funding support for microfinance institutions with special focus on small and medium sized institutions. Secondly, though the loans are unsecured, there is no suitable guaranteed mechanism available for the sector. A sector suited guarantee scheme will go a long way in boosting the credit rating of microfinance institutions as well as their ability to expand to difficult areas.
Nikhil Aggarwal, Founder & CEO, GRIP Invest
The GoI has focussed heavily on infrastructure building, both digital and physical as a way to enable faster, sustainable and more equitable growth of the economy. We expect the same focus to remain on all assets like roads, airports, ports and railways.
The government is also successfully capturing the growing desire to manufacture in India, both for the growing domestic demand but also as a diversification from China. This is also important to create more employment opportunities. We expect the budget to provide incentives for further establishment of manufacturing facilities esp by global companies. Given India's commitment to its Climate goals as well as reducing the dependence on importing petroleum, we expect further incentives for the growth of the EV industry and ancillary industries around battery manufacturing. Access to capital, both for the government and private sector, will be critical for achievement of these goals. We hope the budget provides more opportunities for capital to become available not just to the largest corporates but also SMEs who have to play a critical role for a balanced growth of the country.
Sujatha Kshirsagar, President, Career Launcher
Investing in the future, we anticipate on dedicating 6 per cent of the country's GDP to education, a commitment to nurture minds and empower generations. Production Linked Incentive (PLI) schemes and introduce tax benefits for domestically produced courses. This strategic approach aims to bolster digitization efforts, catalyze skill-building initiatives, and nurture the growth of the Educational services ecosystem. In alignment with India's ambitious goal of achieving a $5 trillion economy by 2025, we advocate for a targeted budgetary emphasis on expediting the development of cloud University initiatives. By prioritizing this investment, we can propel Indian Higher education onto the global stage, positioning our academic institutions as key players in the international education landscape. Additionally, prioritizing the professional development of teachers, particularly in digital-first teaching methodologies, is essential for staying competitive in the academic landscape and improving overall education quality.
Aarul Malaviya, Founder, Zamit
The EdTech sector in India has experienced significant growth and transformation in recent years. Fueled by technological advancements, increasing internet penetration, and a growing demand for flexible and online learning solutions, EdTech has become a prominent player in the education landscape. The industry is predicted to grow in size and reach USD 4bn by 2025, and the sudden development and fast rise in consumption and popularity are credited to the pandemic. While the Government’s National Education Policy (NEP), launched with an aim to develop 21st-century skills in the students of India, and the foundation of National Educational Technology Forum (NETF) boosted tech-enabled learning solutions, a lot is yet to be desired in terms of support. The EdTech sector has specific expectations from the government ahead of the budget (24-25), seeking support and reforms to further enhance the growth and impact of digital education. Key pre-budget expectations also include increased investment in digital infrastructure, incentivizing technology adoption in schools and colleges, promoting skill development initiatives, and providing tax incentives to EdTech companies. These measures would foster innovation, accessibility, and affordability in the education technology space, aligning with the evolving needs of modern learners and educators.
Aryaman Vir, CEO of WiseX
As the interim budget nears, we at WiseX are closely watching for the expected rise in the 80C tax deduction limit to Rs 2.5 lakh, which could greatly benefit taxpayers. Our focus on alternative investment and real estate has us keenly aware of the need for reform in long-term capital gains taxation. With the current 20per cent tax rate after indexation on real estate for holdings beyond 24 months, we're advocating for more favorable policies to encourage investment in this crucial sector.
We're also optimistic about the proposed enhancements in financing, which are vital for real estate sector growth. The government's initiative to create AI centers of excellence signifies a dedication to technological advancement, with effects that will extend throughout the economy and invigorate the real estate market. Supporting incubators and accelerators for startups is not merely about fostering innovation; it's about preserving consumer confidence in the rapidly expanding domains of AI and ML, which is paramount for a trust-based relationship with technology.
Sameer Singh Jaini, Founder and CEO, The Digital Fifth
We are expecting the expansion of the Digital Public Infrastructure playing a pivotal role in accelerating the digital transformation of the financial services sector, especially in the hitherto uncharted realm of secured loans. Furthermore, we keenly await the rollout strategy for the Entity DigiLocker, a feature introduced in the previous year's budget. This initiative is poised to empower MSMEs and corporates by facilitating the seamless sharing of their financial data with banks, ultimately streamlining access to credit. The concept of the Digital Banking Unit (DBU) may be extended beyond physical branches and align with a target percentage of business conducted through digital channels.
Given the current challenges related to funding constraints and licensing issues, we are seeking additional support for Fintech companies, which have made a significant impact on the nation's Digital Agenda. This support may manifest as grants, license issuance, or the relaxation of stringent criteria for collaboration with Public Sector Undertakings (PSUs).
Kresha Gupta, Founder, Chanakya Funds
In shaping the Indian Budget 2024, a pivotal focus must be on unleashing the true potential of MSMEs, hailed as the growth engines of our ecosystem. These small enterprises, operating on tight budgets, require strategic relief beyond subsidies. The government's emphasis should be on providing comprehensive compliance relief, recognizing that this will empower the SME industry more effectively.
The challenges faced by MSMEs extend to the complex landscape of debt fund raising, export participation, etc. Diverse lenders demand different registrations, creating a maze of compliance requirements. Whether it's the MSME certificate, Udyog Aadhar certificate, Shop and Establishment certificate, Industry specific certificate, or GST certificate, each adds to the time and financial burden on these small companies. Simultaneously, stringent eligibility criteria in government tenders further restrict their participation and hinder their growth potential.
A transformative approach in the 2024 budget involves introducing schemes that streamline and reduce these compliances. Rather than a one-size-fits-all solution, a strategy that allows MSMEs to have an option to choose registrations based on their specific needs will be more impactful. Enabling easier access to government procurement opportunities, simplifying tendering processes, will catalyze growth.
Additionally, addressing the complexities of export-import formalities will further encourage small businesses to engage in international trade.
In essence, the budget should not just be about subsidies but rather about empowering MSMEs through targeted plans that minimize compliance hurdles, allowing these businesses to concentrate on their core operations and fueling a new era of inclusive economic prosperity.
Dinesh Kumar Poobalan, CEO & CTO, Greatify
The Indian Edtech market has seen steady growth in recent years due to technological advancements, increased demand for skills in a competitive job market and improved accessibility of education. The sector is projected to continue growing in 2024. Various reforms and policies have been implemented every year, favouring the education system. However, we expect more robust system to be developed, investing in professional development and training opportunities to help us effectively implement blended learning methods in the classroom and utilize technology-enabled infrastructure. We also expect a decrease in Goods and Services Tax on resources for offline and online education providers.
The education system also needs to be modernized to attract more international students. This will require substantial investments in the education system, particularly emphasizing higher education. As per the data, higher education investment will also help improve the gross enrolment ratio (GER), which is set to reach 50 per cent by 2035. We also feel that since many graduates are struggling with placements, earmarking funds for new initiatives that help re-invent the education sector in the 21st century through the integration of learning and working will yield a significant return on investment for learners, employers and society as a whole. These initiatives are expected to enhance the quality of education in India and contribute to developing a better-educated workforce.
Shachindra Nath, Founder & Managing Director, U GRO Capital
A need for policy support, like enhancing credit guarantee schemes, providing liquidity support, and revisiting the RBI's lending architecture, is required. The government must move beyond rhetoric and actively implement measures to strengthen MSMEs. The credit gap, especially in the universe of enterprises with turnovers ranging from 15 lakhs to 15 crores, stands at a staggering 85,00,000 crores. For sustainable growth, a continuous injection of liquidity is imperative. While regulatory narratives have emphasized co-lending and banks refrain from lending directly to NBFCs, it's crucial to acknowledge that smaller and medium-sized NBFCs play a significant role in credit dissemination, particularly to the underserved.
Emphasizing the formalization of MSMEs post-demonetization, GST, and digitization, the challenge now lies in ensuring access to credit for these entities. The government's role in providing sovereign guarantees for deserving NBFCs, unlocking private equity support, and fostering a robust credit ecosystem is pivotal. As we delve into the budget discussions, let's move beyond aspirations and translate them into tangible policies that fortify the backbone of our economy – the MSMEs.
Shailendra Singh, MD & CEO, BoB Financial
India is experiencing a significant surge in the utilization of credit cards, particularly with a five-fold rise in demand for travel financing. In light of this, the government should look at exempting international spending of up to Rs 7 lakh from the existing 20 per cent Tax Collected at Source (TCS) in the upcoming FY25 budget. This proposed measure aims to boost cross-border commerce, ease transactional complexities for consumers, and stimulate the tourism and hospitality sectors. By fostering a conducive environment for global transactions, we aim not only to enhance the cardholder experience but also to contribute to the overall economic growth.
In addition, we urge the government to continue its commendable efforts in strengthening the digital infrastructure while prioritising security of the consumers. Initiatives like UPI integration strongly reflects regulator’s commitment to innovative solutions, furthering financial inclusion and paving the way for a digitally empowered future.
CA Sandeep Agrawal, Director and co-founder, Teamlease Regtech
As a tax expert, I would emphasize the importance of stability in the tax regime during this interim period. While the full Budget for the fiscal year FY 24-25 will be presented after the elections, expectations from the government may revolve around maintaining continuity and possibly addressing any pressing tax-related issues. It's crucial for businesses and taxpayers to remain vigilant and adaptable, considering the evolving economic and political landscape. Additionally, I am hopeful for progress on the long-awaited Direct Tax Code, which could bring significant reforms and simplify the taxation system when eventually implemented.
Gaurav Goel, Co-founder and CEO, Toprankers
As we sail into this year, our focus remains on bridging the social gap, providing quality education and enhancing the learning outcomes of students. With the upcoming union budget 2024, we eagerly anticipate allocations that boost the educational infrastructure, including cutting-edge technologies, enhanced accessibility across diverse regions and a conducive regulatory environment for education technology players. These initiatives will play a key role in accomplishing the objectives of NEP 2020 and moving our nation towards a competitive global standing. I am confident that this budget will serve as a driving force, steering India towards a future where education becomes the cornerstone of progress and prosperity for all.
Vinay Singh, Executive Director and CEO of Q&I, Thomson Digital
As we approach the upcoming budget, I strongly recommend the government prioritize funds for revolutionizing education through e-learning initiatives. It's not only essential to provide schools with technological infrastructure but also crucial to equip educators with the necessary skills. I advocate for dedicated funds for comprehensive teacher training programs, emphasizing the integration of technology into teaching methods.
By allocating funds for teacher training and emphasizing the importance of education, the government sets the stage for a future-ready generation. Our investment in education is more than just a financial commitment; it's an investment in the nation's prosperity and global competitiveness. Together, let's ensure that every child, regardless of background or location, receives quality education, fostering a future that's empowered, innovative, and resilient.
Amit Kapoor, Co-founder and CEO, Eupheus learning
The transformative NEP 2020 and an elaborate NCF 2023 have mandated holistic and experiential learning for school students. It also involves intervention at the infrastructure level, digitalization being the key. This will involve even higher level of engagement of schools with the EdTech companies. As we await the upcoming budget, a thoughtful GST policy, coupled with incentives will empower EdTech companies like ours to innovate and create tools and techniques for schools to implement these key mandates.
Manav Subodh, Managing Director, 1M1B
As we anticipate India's 2024 budget, it's crucial to recognize the transformative potential of digital and immersive technologies. In a landscape increasingly shaped by AI, it's imperative to harness its power as an equalizing force; one that can democratize skills and knowledge across different social strata - making quality skilling accessible to all. To realize this vision, I hope that the 2024 budget prioritizes the establishment of AI hubs and centers of excellence, even in Tier 2-3 cities. These platforms will foster innovation and make AI skilling accessible to the youth of our country. Furthermore, the emergence of Augmented and Virtual Reality infrastructure in schools can revolutionize traditional learning environments. By integrating virtual science labs in every school, we can offer immersive and interactive educational experiences that can prepare our students for a future where STEM proficiency is paramount. These can also be used to create job simulations and shop floor experiences and make our young workforce future-ready. The 2024 budget should emphasize robust investments in digital infrastructure to unlock the untapped potential of our nation's greatest asset – its youth.
Venkatesh Raman Prasad, Partner, JSA Advocates & Solicitors
With the upcoming general elections, the expectation of the automotive sector from the upcoming interim Budget 2024, would be of policy continuity and market stability. Considering that the EV sector has shown robust year on year growth of around 50 per cent, the sector would expect the extension of FAME II Scheme as the scheme expires on March 31, 2024. The sector would also look forward to an additional budgetary outlay for the scheme (from the present outlay of Rs 10,000 crore). Given the tailwinds in the EV segment, a rapid pan India expansion of charging infrastructure is the need of the hour. Additionally, the EV sector would welcome further clarity in relation to the government’s policy on battery swapping.
Saloni Verma, Co-Founder and chairperson, Sunshine Corporate Creches
Anticipation for the Union Budget 2024 includes hopes for increased allocation to education, prioritizing technology integration, and enhancing infrastructure. Stakeholders expect measures to address skill development, promote research, and reduce the digital divide. Calls for incentivizing innovation, boosting online learning resources, and ensuring affordable education resonate. Transparent policies and sustainable funding are key expectations.
Pratham Barot, CEO & Co-Founder, Zell Education
We anticipate that the upcoming interim budget will have policies that will catalyze transformative growth in the education sector. It is imperative to recognise that digital education plays a critical role in determining the course of our country and wish to see more strategic initiatives and funding dedicated to this area. Proactively encouraging technological integration, industry-academia engagement, and skill development that will not only empower students but also make a substantial contribution to India's economic recovery. In order to move our country closer to a future powered by knowledge, we expect the interim budget to reflect on the government's commitment to creating a dynamic and globally competitive educational landscape.
Rohit Gupta, Co-founder, College Vidya
In the eagerly awaited interim Union Budget, there's a lot of buzz and hope surrounding support for online education startups. Many are anticipating strategic measures from the government, like financial incentives for tech advancements, research grants, and tax benefits. It's seen as a move to push the creation and widespread adoption of cutting-edge educational technologies, essentially fostering innovation in the online education sector. Moreover, this budget might include initiatives to bridge the digital divide like providing affordable internet access to remote areas can be a game changer for the whole education system. We also expect the government to launch a new campaign for online education, similar to Mutual fund. These steps will not only boost online education startups but also make quality education more accessible across the country. In conclusion, we look forward to a budget that acknowledges the pivotal role of online education in shaping the future of learning. We expect the government to foster an environment where online education startups can thrive, contributing significantly to the education landscape of the nation and boosting the literacy rate
P. Venkatesh, Director, Thought Leadership, Maveric Systems Limited
In anticipation of Budget 2024 being a Vote on Account, we expect a continuation of fiscal prudence and a commitment to addressing the people's needs. It is crucial to ensure that allocations for key employment generation schemes, such as MGNREGA, PMGKRA, and NRLM, mirror the levels of the preceding fiscal year, emphasising stability and sustained support for crucial programs.
The budget should maintain a focus on schemes like — Production Linked Incentive (PLI) scheme that provides incentives to companies to encourage manufacturing activities based on their production performance; high-risk, high reward that supports startups with potential for high impact but also high risk; PRISM (Promotion of Innovation in Small & Medium Enterprises) aimed at fostering innovation in small and medium enterprises; and, Biotechnology Ignition Grant focused on supporting early-stage startups in the biotechnology sector. In line with our expectations, the budget should prioritise subsidies for the poor, encompassing essentials like food, fertiliser, and petroleum. This commitment to supporting the under-served is integral to ensuring social welfare and stability. Additionally, the budget should concentrate on sustainable income growth in rural households, reinforcing the government's commitment to inclusive growth. By aligning with these principles, Budget 2024 can play a pivotal role in fostering economic development and promoting an inclusive and resilient society.
Rohit Sethi, Director, ESS Global
In the upcoming interim budget the maximum loan amount available for studying abroad may be raised by the government. This might be especially useful for programmes that have high tuition costs or are located in costly locations. To help students afford education loans, the government may provide subsidized interest rates.The government's priorities and the overall situation of the budget will be major factors in deciding whether or not education loans alter”
Samuel Joy, CEO, Huntr
Skill development initiatives like those from Skill India/National Skills Development Mission of India have been commendable in enhancing vocational training and certification programs. Training is undeniably the cornerstone of job opportunities. However, to truly unlock global opportunities and overcome language barriers, I urge the Indian Government to place additional emphasis on English language proficiency in their 2024 budget. This will not only enhance individual competencies but also propel India's workforce onto the global stage, connecting them with a myriad of international prospects.
Gaurav Batra, Founder and CEO, Infinite Group
In this year's budget, we anticipate an increase in funding for education in India. This boost is crucial not only for enhancing higher education within the country but also for fostering educational partnerships with nations like Australia. Lately, there have been developments in foreign educational institutions establishing their branches in India. In light of this, it's essential for the Indian government to allocate more funds to improve the quality of higher education. We hope that the government will unveil new policies to facilitate educational trade, benefiting both students and institutions. Additionally, we expect measures such as reduced taxes on educational expenses and student loans, making it easier for students to pursue higher education, especially abroad
Dr. Prof Anand Achari, Principal, Vivekanand Education Society’s College of Architecture
The Government of India has embarked on several initiatives and reforms to implement the National Education Policy (NEP) 2020. As these efforts persist, additional support is anticipated in the upcoming budget. Incorporating the Indian Knowledge System (IKS) into the curriculum necessitates the development or upgrading of curricula, training or orientation for faculty, and the empanelment of artists and artisans-in-residence in Higher Education Institutions.
The government's efforts in implementing skill development programs have set the stage for positive change. However, there is a need to strengthen industry-academia collaboration for better alignment of academic curricula with the evolving job market. Moreover, prioritizing financial support for Academic-Industry Collaboration is crucial, as it serves to forge robust connections between educational institutions and industries. This strategic emphasis ensures that academic curricula stay abreast of the ever-evolving demands of the industry, thereby nurturing a workforce equipped with agility, adaptability, and preparedness for future challenges. Additionally, it's important to extend support to COA-approved Institutes with larger research grants akin to those provided to AICTE. This will foster innovation and excellence in education.
As we navigate the complexities of our changing educational landscape, let's consider this budget as an opportunity for a positive shift in the education sector – one that emphasizes not only skill development but also the holistic growth of individuals prepared for the contemporary workforce. In addition to supporting infrastructure grants, the incorporation of technology-based learning can contribute to a more balanced and future-ready education system.
Pradeep Misra, CMD, REPL
India's need for rapid growth in 2023 and beyond will be mostly fueled by considerable advancements in several important areas, with the expansion of infrastructure serving as a vital catalyst. Eight of India's most important infrastructure industries have already seen double-digit YoY growth. In recent years, the taxpayers base and its compliances have improved significantly, which provides strong growth kitty at the disposal of the present government. This ultimately gives a cushion to the government for massive infrastructure spending. Due to this, it seems the Indian economy is entering into a very fast growth zone. India is anticipated to undertake a massive investment push between the fiscal years 2024 and 2030 to transform its infrastructure landscape. It will also be the start of an ambitious vision of "Viksit Bharat@2047". The implications of this spike in infrastructure investment will increase India's gross domestic product and catapult the nation into the middle class, given that the infrastructure sector has greatly benefited the Indian economy due to its diversity and cross-industry flow. We expect that sectors like roads, power and ports will continue to be major contributors to this transformation.
The blueprint for Viksit Bharat@2047 extends beyond mere economic growth, encompassing social progress, environmental sustainability, and good governance. Viksit Bharat@2047 stands as a testament to India's commitment to creating a future that is economically robust, socially equitable, environmentally sustainable, and governed with transparency.
Amit Parsuramka, CEO, Bonito Designs
The Indian interior design landscape, as a whole, has witnessed significant growth along with the ever-growing demand for real estate in the country. In the upcoming interim Union Budget, we are optimistic that the budget will have a positive impact on the Home Interior and Real Estate market. We hope to see supportive policies that encourage affordable housing initiatives and low home loan rates. Modifying quality standards for affordable housing paves the way for homeowners to innovate their homes with practices like adopting eco-friendly materials. As stakeholders in the home interior market, we look forward to a budget that not only navigates the challenges of the current economic landscape but also paves the way for a resilient and thriving future for the sector.
Sandeep Jain, Jt. Managing Director, Akums Drugs & Pharmaceuticals
As we await the unveiling of the 2024 budget, the Indian pharmaceutical industry seeks a roadmap that not only acknowledges its pivotal role in healthcare but also pushes it towards sustainable growth and innovation. A significant boost in healthcare spending tops our list of priorities. Increased allocations are crucial not only to strengthen our healthcare infrastructure but also to ensure quality healthcare services reach every corner of our diverse nation. Recognizing the pharmaceutical industry's substantial contribution to India's exports, we look forward to initiatives that streamline and speed-up export processes. Simplifying international market access will empower pharmaceutical companies to play a more substantial role globally, thereby contributing significantly to the nation's economic growth.
Research and innovation form the core of our industry's growth. We commend the government's initiatives, including the launch of a new policy on R&D and innovation in the pharmaceutical and MedTech sector last year. The approved scheme with a capital outlay of Rs 5,000 crore is a significant step toward boosting R&D in the pharma and medtech sector. Allocating increased funds and incentives to encourage research and innovation through centres of excellence will further catalyse advancements in pharmaceuticals.
Regulatory reforms are important for a dynamic and responsive pharmaceutical sector. Anticipating reforms that simplify regulatory compliance without compromising safety and quality standards is crucial. Such measures will expedite the time-to-market for new drugs and therapies, contributing to a more agile and efficient industry. As we shift from a cost-based to a value and innovation-based industry, we urge the government to position India as a high-volume, high-value player in the global pharma market. Schemes promoting industry-academia linkages, collaboration between the private sector and state-run institutes, and addressing the manufacturing of active pharmaceutical ingredients (APIs) are crucial for achieving self-sufficiency and global competitiveness. Addressing the complexities of the Goods and Services Tax (GST) framework is equally vital. The Finance Bill should articulate a reform agenda - the GST rates for API and finished formulations should be the same.
Manufacture of rare diseases should be encouraged in order to achieve the government's mission to eradicate sickle cell and other rare diseases as per policies framed by the government in 2021.
Sameer Aggarwal, CEO and Founder, Revfin
As we anticipate Budget 2024, India's electric vehicle (EV) sector beckons a strategic shift towards holistic growth aligned with the net-zero aspirations of Bharat. Beyond the $2.6 billion 2023 funding boost and the pivotal role of subsidies, the focus now extends to making EV lending a linchpin in our financial landscape. Budget 2024 must prioritize streamlined regulatory processes, ensuring seamless, affordable access to finance, thereby catalyzing industry growth and contributing to our net-zero goals.
The 'Make in India' initiative should further be underscored, emphasizing an ecosystem where quality, innovation, and cost-effectiveness prevail. Comprehensive policies are imperative, intensifying R&D investments, expanding charging infrastructure, and nurturing indigenous battery manufacturing. Recognizing the pivotal role of auxiliary sectors like charging solutions and battery technology, collaborative initiatives involving government, industry, and FinTech entities are crucial for affordability, innovation, and establishing India as a global hub for sustainable mobility.
In Budget 2024, intertwining financial support with regulatory facilitation presents a unique opportunity to propel India towards a greener, sustainable future, fostering economic growth and technological advancement in the EV sector.
Pushpender Singh, MD, JMS Group
The preceding Union budget has been a promising one in terms of increased focus on long-term investments, marked by a substantial increase in capital expenditure and a dedicated focus on propelling technological advancements across various sectors, including 5G labs, agricultural tech, AI, infrastructure and real estate. In the forthcoming 2024 budget, we anticipate that the Prime Minister's vision of 'Housing for All' will continue to be prioritized in order to continue providing the supply-side stimulus and boost end-user demand. The government is expected to set up a tax relief plan to make housing affordable enough to increase the demand. We hope that the government will also increase the maximum limit of deduction from Rs. 2 lakh on housing loan interest rates under Section 24 of the Income Tax Act up to at least Rs 5 lakh. A steady and predictable fiscal environment is crucial at this juncture to build on the existing consumer confidence within the real estate sector and therefore, we expect that the interim budget for 2024 maintains the existing tax regime in order to prevent short-term turbulence in the overall housing market.
Prateek Maheshwari, Co-Chair, India Edtech Consortium (IEC) and Co Founder, Physics Wallah
In view of the upcoming interim Union Budget, we would like to appeal to the government to increase the education sector’s budget, and reduce the GST slab from 18% to 5% on educational products and services. Our aim is to establish a strong foundation for the country’s children, particularly those from economically disadvantaged backgrounds. Additionally, given the evolving world and our shifting approach to education, driving a change to ensure affordable and quality education at scale needs more collaboration for public and private sectors. For this, reducing the GST on educational services would also remove financial strain on parents, promoting affordability. Apart from this, focusing on collectively enhancing youth skills to increase employability and reduce skilling gaps is imperative for the Indian economy’s growth.
Aman Moudgil, Director & CEO, Gilco Global
The upcoming budget is seen as an opportunity to fortify the real estate industry’s pivotal role in India’s economic development. The housing sector is poised in anticipation of the proposals, including revisiting GST rates, tax deductions, land allocation, and fund boosts. Consequently, urbanization shall take even more pace, giving a boost to the various sectors that are part of the value chain in the construction eco-system, including elevators, a sector that has never been in the limelight but addresses one of the most significant issues in urban convenience. With large-scale developments already coming under financing, no such provision exists when someone has to buy a lift for their private residences/ end use. As large-scale development is undertaken with commercial objectives and hence taxes under current structures are necessary, some relaxation in GST rates should be provided for end users who are buying lifts for their private residences (up to 6 stops). Also, some tax benefits and GST relaxation should be revised for provisioning elevators in buildings for paraplegics or elderly with compromised mobility and dependent on vertical mobility solutions for movement within the building, as is the case with accessible friendly equipment, which is currently taxed under a lower tax structure, thereby making such necessary equipment more affordable for them.
Dr. Somdutta Singh, Founder & CEO, Assiduus Global Inc
A well-structured budget that aims to enhance business and foster innovation, allocating funds for research and development, along with the integration of cutting-edge technologies such as artificial intelligence and data analysis, will enable businesses to stay attuned to consumer demands. Additionally, collaborative efforts involving government bodies, business leaders, and educational institutions can establish a shared working network that supports the inception of new businesses. Moreover, policymakers should prioritize attention to small retailers in tier 2 and tier 3 cities. These cities have stores with the potential to thrive and compete with more established businesses. The budget should earmark funds for enhancing skills and adopting technology. By investing in education and skills development, the government can uplift local businesses, enabling them not only to withstand market challenges but also to excel in the demanding retail landscape.
I am anticipating that this budget might endorse the implementation of the 'Open Network for Digital Commerce' (ONDC) initiative. This initiative can empower MSMEs to access various e-commerce platforms without encountering entry barriers, benefiting from standardized data and processes. The adoption of e-commerce by MSMEs will facilitate their entry into both domestic and international markets, contributing to economic growth. Allocating budgetary resources to enable MSMEs to integrate e-commerce platforms into their business strategies will foster sustainable development. Additionally, ONDC will play a pivotal role in shaping the MSME ecosystem, aiding suppliers in reaching a broader customer base and leveraging diverse logistics for accelerated growth.
Dr Christopher Abraham, CEO & Head, SP Jain School of Global Management
Looking ahead to the 2024 budget, we envision a transformative path for higher education in India. We expect an increase in the maximum loan amount that can be obtained for studying abroad, particularly for programs with steep tuition fees. To make education loans more accessible for students, we urge the government to explore the possibility of subsidized interest rates. The government's priorities and the overall budgetary situation will play a crucial role in determining any changes to education loans. Additionally, strategic investments in skill development, infrastructure, and research will be essential in cultivating a future-ready workforce and promoting innovation. Our strong stance is for prioritizing higher education and acknowledging the continuous requirement for investments in enhancing the gross enrollment ratio. The budget presents a chance to elevate India's higher education sphere to unprecedented levels, and we eagerly anticipate policies that align with this vision of advancement and distinction.
Harsimarbir Singh- Co-founder, Pristyn Care
Look forward to this year's budget, given how the government has prioritized promoting startups landscape in the country. The government should focus on introducing a new and simplified tax and regulatory framework along with ease of funds and regulatory relaxations to boost entrepreneurship in the nation. To incentivise the healthcare startup sector and generate employment, the government should extend the scope of Production Linked Incentive (PLI) scheme.
Harkunwar Singh, Co-founder & CEO, Novatr
Despite the National Policy on Education of 1968 calling for a 6 per cent national income allocation to education, current spending remains far short. While the previous Union Budget signalled a commitment to digital education and AI integration, the stark reality is that only 8 per cent of rural students access online learning. This digital divide underscores the urgent need for a significant increase in education funding. We expect the budget 2024 to bridge this gap through concrete investments in infrastructure, digital literacy & technical education programs, and robust internet connectivity in rural areas.
The pandemic showed us how quickly the education landscape can shift. It underscored the importance of ongoing professional development for teachers in embracing digital tools and pedagogies. We, at Novatr, hope that the Budget 2024 prioritises investments in training programs and resources to equip educators for evolving learning environments, ensuring they're not only prepared for future challenges but also empowered to leverage technology for better learning outcomes. Furthermore, incentivizing corporations to encourage their employees to be part of the education ecosystem through tax benefits remains essential. Encouraging industry leaders to become educators can significantly bolster this vital workforce and accelerate the digital education revolution.
Sachin Jain, Country Manager, ETS India and South Asia
As we look ahead to the upcoming budget for 2024, ETS urges policymakers to allocate resources that accelerate global mobility of India’s young talent. This includes inclusion of language skills and internationally recognized work skill certifications in Indian classrooms. Skills development enterprises, both public and private, must leverage globally benchmarked and recognised skills framework and certifications as these are valued by employers internationally.” Policy makers should also look at comprehensive merit scholarship program for deserving Indian students for postgraduate and research studies in foreign universities with an aim to drive research and innovation in India post completion of their studies. We also urge policymakers to advance public private partnership models that accentuate the “Study In India” initiative, which aims to reinforce India’s position as a Vishwa-Guru to the world.
Manisha Zaveri, Joint Managing Director, Career Mosaic
We are anticipating the upcoming budget's potential to unlock new opportunities for international student mobility, we are optimistic about the potential of initiatives fostering collaboration between Indian and international universities, creating avenues for cross-cultural learning and research opportunities. A budget that prioritizes global education will not only empower the vibrant minds of young Indians but also solidify India's standing in STEM fields.
With the Indian study abroad sector poised for a post-pandemic resurgence, the upcoming budget holds immense significance. We expect the government to recognize and harness this potential by implementing measures to make international education more accessible and affordable. This could involve targeted scholarship schemes for Tier 2 and Tier 3 city students, tax benefits for families supporting overseas education, and streamlined visa processes. A supportive budget addressing these aspects will not only enable students to pursue their international education dreams but also contribute significantly to India's long-term economic and intellectual growth.
Saurabh Arora, CEO, University Living
In anticipation of the upcoming budget, we want to draw the government’s attention to essential measures that can profoundly impact Indian students pursuing education abroad. We feel an increase in the fund allocation especially to the higher education sector will be welcomed by the expanding student community in India. Foremost, we believe lower interest rates on education loans will be a crucial step in alleviating financial burdens for students and their families, enhancing access to education in a destination of one’s choice. Further, there is a critical need for an increase in grants and scholarships for Indian students, providing essential financial support to deserving students. Scholarships play a transformative role, offering support and opportunities for talented students facing financial constraints, to successfully pursue their academic journey. Additionally, a reduction or waiver in Tax Collected at Source (TCS) while remitting money for overseas education and ancillary activities will be a welcome sign. Lowering or waiving off TCS while remitting funds overseas for education will ease the burden on families and encourage more students to explore educational opportunities at a destination of their choice. Lastly, exploring student concessions on air travel is imperative to make global education economically viable for a broader demographic of students, fostering cultural exchange and elevating India's representation on the global academic stage. In summary, we hope these comprehensive budgetary considerations aim to create a more supportive environment for Indian students undertaking international education, fostering academic growth, and contributing to India's global educational standing.
Aishwarya Rao, Vivekalaya Group of Institutions
I emphasize the pivotal role this budget plays in shaping the trajectory of our institutions. The transformative shifts in education, driven by technology and skill-based approaches, necessitate strategic allocations for infrastructure, innovation, and digital advancements. Over the years, the government has been increasing the money allocated for education, showing their commitment to improving learning environments. We hope this trend continues.
In this upcoming budget, we're especially hoping for more help with technology in education, lower taxes for schools, and easier access to affordable student loans. It's also important that the budget supports international collaborations in education and pays attention to the health and overall development of students. The decisions in Union Budget 2024 will significantly impact the future of education in our schools, making it more accessible, innovative, and better for the students.
Gaurav Aggarwal, CEO and Founder, CarLelo (a Capri Loans Venture)
We are expecting some key developments from the budget like a reduction in the GST rate that will support home-grown players in investing in newer technologies for enhanced mobility offerings on a global scale. Then, re-evaluation of the import structure for electric vehicles is also sought to address disparities in GST rates, providing a much-needed boost to the start-up community through government loans and investments. As an online new car market player, we are closely monitoring these developments, recognizing their potential impact on the electric vehicle market. Our commitment is to adapt our platform to the evolving landscape, ensuring that our customers have access to the latest and most sustainable automobile options. We look forward to the Union Budget introducing measures that not only support the growth of the electric vehicle industry but also contribute to a more sustainable and eco-friendly future.
Hari Kiran, Co-Founder and COO, eBikeGo
Thе 2024 budget has thе ability to build on the momеntum of previous government initiatives that have aidеd in thе uptake of electric vehicles include thе FAME II and PLAY schemes, by adding furthеr incentives—possibly in the form of lowеr taxes—and creating a climate that encourages manufacturers and customers to use electric vehicles. With a closе watch on insights into thе GST scеnario, particularly for еntry-lеvеl two-whееlеrs, thе anticipation is еqually palpablе.
Similar changes are anticipated in the 2024 budget, building on the reduction in customs tax on еlеctric vеhiclе parts from thе prеvious budgеt, which will support local production. Proposals for an industry-widе 5 per cent GST on all еlеctric vеhiclе sparе parts arе in linе with thе 5 per cent GST on vehicles and aim to create a morе еquitablе tax structurе.
Thе 2024 budgеt holds immense potential for thе electric vehicle sector in India. As we gear up for thе nеxt fiscal year, wе remain hopeful that thе budget will chart a coursе toward a morе sustainablе and environmentally friendly futurе.
Shubham Vishvakarma, Co-Founder and Chief of Process Engineering, Metastable Materials
As we anticipate the 2024 budget announcement, we hope for a forward-looking budget that reflects India’s commitment to sustainability and technology advancement. A large volume of India's end-of-life Lithium-ion batteries is exported globally for recycling or just processed as an intermediate black mass and then exported. Hence, massive R&D investments are required, particularly to create strong competencies and lab testing facilities for the proper end-of-life Lithium-ion battery recycling. This not only contributes to responsible environmentalism but also nurtures a talented pool of individuals.
Another area, where we are hopeful for is the Production-Linked Incentive (PLI) and its extension to battery recycling. This would also be a strategic approach as by expanding the range of the scheme beyond just the Advanced Chemistry Cell manufacturing, we open up the opportunity to capture the entire value chain. This extension will incentivize the setting up of homegrown recycling firms instead of shipping away the dead batteries.
We also recommend that the recycling of Lithium-ion batteries be incorporated into the Carbon Credit Trading Scheme. This inclusion, in particular for negative-value battery chemistries feasibility will provide substantial support to India’s position in the carbon credit markets and also demonstrates our continued dedication to sustainable solutions.
Durgadutt Nedungadi, Senior VP, Netradyne
As India eagerly awaits the Union Budget for 2024, we at Netradyne are optimistic about the potential it holds for advancing the landscape of road safety in India. In recent years, India has witnessed a significant surge in road accidents, emphasizing the need for innovative solutions to enhance road safety. We anticipate the budget will introduce measures to promote and incentivize the evolving space of ‘road safety solution providers’. We look forward to the Union Budget 2024 as an opportunity for the government to reinforce its dedication to technological progress and road safety.
Chetan Maini, Co-founder and Chairman, SUN Mobility
The government has been working on a slew of positive steps in the direction of transition to clean mobility and achieving net-zero goals. Earlier this year, the government implemented superior safety standards, and most recently, there have been conversations related to deferring the standardization of batteries. These steps would not only pave the way for a conducive environment for the battery swapping players but will create an atmosphere of innovation and product development, creating safer and more sustainable mobility options for end consumers.
In the upcoming Budget, the industry in unison is looking for a level playing field for all technologies. This would mean removing the existing discrepancies in GST and subsidies for swappable batteries. Battery swapping is indispensable to accelerate the adoption of electric mobility and achieve the 2030 targets of EV penetration. I’m keen to see the release of a comprehensive Battery Swapping Policy in Budget 2024.
Nimish Trivedi, CEO & Co-Founder, Evera
The budget 2024 should continue the existing concessional rate of import duties on lithium-ion cells, to reduce the capex cost of purchasing an EV. Aligning with the government's Rs 18,000 crore production-linked incentive scheme for advanced chemistry cells, targeting a 50GWh capacity. Compounding on this, the second phase of the FAME policy, enabled an EV subsidy of 15 per cent of its cost. The cost of EV made at par with ICE, rising consumer sustainability conscience, and an increasingly interconnected EV ecosystem, will continue to gain momentum in the interim budget 2024.
Major automotive players are strategically investing in India's electric vehicle market, with plans for production, substantial investments, and collaborations to establish a robust electric mobility ecosystem. This shall incentivize foreign OEM players to produce in the Indian market, positively raising competition for local manufacturers. The 2024 budget presents a strategic opportunity to pave the way for stakeholders to execute decade end targets of 30 per cent decarbonized mobility in the entire nation.
Sanjay Gupta, Chairperson, IESA
We have high hopes from the upcoming budget. This year should mark the next phase of growth for the semiconductor industry in India, focusing on unleashing the untapped potential of Indian entrepreneurs who are keen to pursue semiconductors and embedded ESDM sector. They face four major entry barriers: high employee cost, high EDA cost, high fabrication cost, and high validation cost. These barriers hinder the exploration of the true potential of entrepreneurs in the semiconductor design space. Although the design-linked incentives launched last year were a welcome step, there is a need for a massive focus on providing risk capital to the deserving startups, either through VC partnerships or direct government support. This will accelerate the semiconductor startup journey from India and enable them to compete globally and make a name for themselves and the country in the semiconductor design fab lab space.
Ranjita Ravi, Co-Founder, Orxa Energies
We hope that the upcoming union budget addresses the disparity among EV types through technology-agnostic incentives and subsidies. Extending subsidies to child parts and sub-assemblies - and not just at the point of sale - will significantly reduce the BOM costs for these vehicles. Further, creating a cost-competitive environment for EVs through rationalised GST rates across all components, including spare parts (which are currently subject to higher levies), is crucial. This approach will also stimulate indigenous production of these vital components and discourage OEMs from exploiting loopholes to import these parts.
Nikhil Agarwal, President, CJ Darcl Logistics Ltd
In anticipation of the imminent Union Budget, we acknowledge the government's steadfast dedication to the logistics sector, gleaned from insights of the preceding fiscal year. The antecedent budget's focus on infrastructure augmentation and regulatory simplification, particularly in the realms of thoroughfares and storage facilities, laid a resilient groundwork for industry expansion. Peering into the future, we anticipate sustained backing in technology-driven solutions, prowess amplification, and incentivization frameworks.
Envisaging a foresighted budget, we picture all-encompassing policies around adoption of EV’s, alternate fuels and other sustainable practices linked strategic incentivization. Furthermore, we eagerly await an elaboration on initiatives akin to the National Logistics Policy, holding the potential to act as a linchpin in rationalizing supply chains, nurturing ingenuity, amplifying interconnectivity, and embracing sustainability. These measures will fortify the trajectory for robust economic expansion in the logistics domain. As a pivotal entity in the sector, we keenly anticipate a budget harmonizing with global trends, positioning India as a logistics juggernaut.
Himanshu Arora, CEO and Co founder, GoMechanic
With Budget 2024's focus on enhancing infrastructure, we feel encouraged about our alignment with these developments. Our team has been steadily preparing for the rise of EVs, equipping our mechanics with the necessary skills in a measured and thoughtful manner. This budget's emphasis on improved EV charging networks and maintenance facilities mirrors our commitment to evolving alongside the industry. At GoMechanic, it's about quietly but confidently adapting to offer superior EV services, contributing to an eco-friendly automotive future in a responsible way.
Sumit Mani, Managing Director, Westway Electronics Ltd
In light of fostering affordability and supporting the common man's access to essential electronic goods, we propose pivotal changes to the upcoming budget's tax structure for televisions. Presently, LED TVs above 32" are subjected to a hefty 28 per cent GST. To alleviate this burden on consumers, we strongly advocate reducing the GST on all LED TVs above 32" to 18 per cent. Additionally, open cells, crucial components for television manufacturing, currently face a 5 per cent duty under IGCR imports. Recognizing the absence of domestic production, we recommend a significant reduction to 0 per cent to encourage a more conducive environment for TV manufacturing within the country. These strategic adjustments not only align with the government's commitment to 'Make in India' but also prioritize the affordability of common man products, ensuring that essential electronics are more accessible to a broader spectrum of the population.
Adelia Castelino, Co-Founder & Managing Director, In-Solutions Global Ltd
As we approach the Union Budget, it's crucial for policymakers to recognize the transformative potential of Central Bank Digital Currencies (CBDCs). Integrating CBDC into our financial infrastructure will enhance transparency, foster financial inclusion, and bolster economic resilience. A forward-thinking budget should prioritize research, collaboration, and innovation in this domain to ensure India's leadership in the global fintech landscape.
Atul Monga, CEO and Co-Founder, Basic Home loan
As of 2024, the Indian real estate sector has specific expectations from the Interim Budget, particularly concerning home loans and affordable housing. The industry is advocating for a significant increase in the tax deduction for home loan interest under Section 24 of the Income Tax Act. Currently capped at Rs 2 lakh, there is a push to raise this limit to at least Rs 5 lakh. This adjustment is expected to revitalize the market, especially in the budget homes segment.
Furthermore, there is an urge from the government to reevaluate the qualifying criteria for affordable housing. The current price limit of up to Rs 45 lakh for affordable housing is seen as unrealistic for major cities. For instance, the metro city's budget can be increased to around Rs 70-75 lakh. Adjusting these limits would make more homes accessible to a broader range of buyers, enabling them to benefit from government subsidies and reduced GST rates.
There is also high expectation for the implementation of the interest subvention scheme for urban housing. This scheme introduced in October, pending cabinet approval, aims to provide significant interest subsidies on housing loans, potentially extending the cap to Rs 50 lakh under the Pradhan Mantri Awas Yojana. This scheme aims to provide an annual interest subsidy ranging from 3 per cent to 6.5 per cent on loans up to Rs 9 lakh. This move is expected to boost the demand for home loans significantly, aiding a vast segment of urban homebuyers, particularly those in lower-income groups, and revitalizing the housing market.
These expectations highlight the sector's focus on making housing more accessible and affordable, particularly in light of the economic challenges posed by the pandemic and subsequent market shifts.
Nehal Gupta, MD, Accelerated Money for U (AMU)
We are optimistic that the interim budget will be pretty positive for the auto financing sector, especially for EVs. With our government’s continuous drive to phase out conventional fuels like petrol and diesel and promote sustainable mobility, there is a high chance of getting an extension on the FAME-II subsidy for EV manufacturers. In this regard, we feel EV financing providers and fintech companies could benefit significantly, given the sector’s key role in supporting the masses to switch to electric vehicles. In fact, we firmly believe that now is the right time to grant Priority Sector Lending status to electric auto financing to help the nation meet its target of 30 per cent electric vehicle penetration by 2030. Several financial institutions, including the Small Industries Development Bank of India (SIDBI) and IREDA, extend subsidized financing schemes for energy efficiency and renewable energy projects, benefitting MSMEs, fleet owners, EV leasing companies, and aggregators. These institutions could further benefit from the Priority Sector Lending status, which will potentially increase their access to credit and enable them to stimulate rapid growth in the electric automobile sector that is not limited to only the established companies or segments of the industry. Moreover, supporting the EV financing sector aligns with the government’s interest. This is why we anticipate that the upcoming budget will roll out policies and announcements in favour of EV financing companies, helping the industry players to provide access to more affordable and consumer-centric financing options.
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