Union Budget 2024 Expectations Highlights: Union Finance Minister Nirmala Sitharaman is scheduled to present the Budget for 2024-25 in the Lok Sabha on July 23. The Budget for 2024-25 will be the first major economic document of the Modi 3.0 government, which, among other things, is expected to lay the road map for making India a developed nation by 2047.
Several experts have urged the government to provide tax relief to the common man to boost consumption and take steps to check inflation and accelerate economic growth. The last two budgets saw no significant changes in taxation policies, aside from making the new tax regime the default option and introducing the Standard Deduction feature.
On July 11, Prime Minister Narendra Modi met top economists, flagging a renewed thrust on jobs, alongside a concerted push to manufacturing and rural businesses. He also touched upon the complexities of Centre-state relations, particularly with the Centre funding many programmes or schemes, and states not assuming full accountability over implementing these on the ground, The Indian Express had reported.
Rajiv Sinha, cou-founder, Onlygood, said that the budget "should emphasize on a commitment to drive India’s sustainability journey forward." Sinha further said that the budget is expected to "highlight sustainability, carbon neutrality, recycling, environmental, social and governance (ESG) standards and a shift towards a circular economy reducing emissions."
Gaurav Malhotra, Managing Director, Hansgrohe India, urged the government for the rationalisation of GST and the reduction of home loan interest to stimulate demand and growth for the luxury real estate sector. "Additionally, we hope to see initiatives aimed at boosting local manufacturing capacity that can further strengthen the make-in-India initiative and also increase the availability of world-class products in the domestic market," Malhotra said.
The FMCG sector expects the rationalisation of GST, Mr. Praveen Jaipuriar, CEO, Continental Coffee Limited said. He said the lowering of GST "on products like packaged foods would not only make goods more affordable but also boost consumption, leading to higher sales volumes." " Additionally, the coffee manufacturing Industry expects the government to help boost consumption by adopting measures like lowering the GST on Instant Coffee, decreasing the import duty on green beans, and last but not least, adopting measures to increase green bean acreage and throughput," Jaipuriar said.
Asia Shipping India CEO and Managing Director Amit Tandon said that the "the logistics industry anticipates consistent policy, technology, and infrastructure-led reforms from the newly formed NDA government." Tandon said that for India to become a $7 trillion economy by 2030, the logistics sector is poised to be a key growth catalyst. "Key areas of focus include significant infrastructural investments in multimodal logistics parks and freight corridors, tax reforms, and financial incentives for adopting cutting-edge technology like AI and IoT," Tandon added.
Geeta Jayanth, principal of Chaman Bhartiya School, Bengaluru, said that the government must look at raising the tax exemption limit under Section 80(C) of the Income Tax Act from the current Rs 1.5 Lakhs to Rs 2 Lakhs. Jayanth said that this should be done with a focus on allowing greater tax exemption for tuition fees.
"This potentially empowers parents to seek high-quality education for their wards in institutions of repute; whilst deriving enhanced tax benefits. This move could also positively impact the Urban aspirational class of parents; and children who could get better access to world-class educational facilities and become globally competent," Jayanth added.
Restaurant owner and head chef Niharika Peri said that she hopes that the Union Budget introduces strategies to encourage eateries to manage their waste more effectively. "Incentivizing effective waste management in restaurants can lead to significant environmental and economic benefits," she said. "The government can offer partnerships and collaborations with waste management companies and build a platform for restaurants to get discounts to do better waste practices," Peri added.
Ahead of the Union Budget for FY 2024-25, Sriram Kanuri, CEO and Founder of Arteria Technologies, highlighted the expectation to see the promotion of Indian exports through new and revised policies. Kanuri said that doing so would "enhance our global presence, ensuring that products developed in India reach markets worldwide and showcase our manufacturing excellence." ""We’re thrilled to see the recent budget’s focus on the 'Make in India' initiative. It's a game-changer for turning India into a global manufacturing leader," Kanuri added.
Sunil Nyati, Managing Director, Swastika Investmart Ltd, said that in the upcoming budget, focus would continue to remain on economic reforms, with expectations of higher capital expenditure and infrastructure spending, while maintaining fiscal discipline. " This is facilitated by the government's increased fiscal space, thanks to the RBI's substantial dividend and strong GST collection numbers," Sunil said. He added that apart from this, the budget is expected to focus on green energy, defense, railways, housing, and manufacturing sectors. " Additionally, measures targeting rural areas, such as rural infrastructure development and agricultural support, will be emphasized," he added.
While stating that the re-election of the BJP-led NDA government reignites "reignites our collective aspiration for a progressive and enhanced education culture and infrastructure", Ujjwal Singh, Founding CEO, Infinity Learn by Sri Chaitanya, urged the government to collaborate with stakeholders to tackle prevailing challenges in the sector. "Central to this endeavor is bridging the digital divide, a crucial initiative that requires fortifying the technological infrastructure of schools nationwide," Singh said. "By prioritizing these efforts, we can pave the way for a more inclusive and advanced educational system that empowers all learners," he added.
On the forthcoming Union Budget, Eupheus Learning co-founder Amit Kapoor said that the organisation expects to see greater support for digital infrastructure in schools and increased funding for innovative educational technologies. He further said that GST should be applicable on both print and digital solutions to facilitate efficiency in the ecosystem. "These are important for making education accessible, affordable and effective for millions of students,"
Kapoor said. He added that new policies in the education system should be aimed towards bridging the gap between in-class and at-home learning, providing every child with quality resources. "Using tools like STEM/STEAM kits and reading programs will enhance learning. Promoting activities like storytelling, Olympiads, and coding competitions will encourage creativity and critical thinking, empowering generations to be future ready," Kapoor said.
Speaking of the expectations from the Union Budget for 2024-25, Aasoka Managing Director, Monica Malhotra Kandhari, said she expects increased funding and support for innovative educational solutions. "By investing in technology-driven and blended learning models, we can transform the education landscape across India, Kandhari said.
"In a country with over 1.5 million schools and more than 250 million students, it is crucial to provide robust academic support and necessary resources. Enhanced funding can facilitate the integration of digital tools in classrooms, assist teachers in creating comprehensive lesson plans, and ensure that students from all backgrounds have access to quality education," the Aasoka MD added.
The budget this year has the power to significantly impact the service sector, with growth initiatives in priority, says Sanjay Dighe, CEO, Krystal Integrated Service Ltd. "There is clarity required on tax exemptions for services provided to government entities, particularly in healthcare sector. At a practical level, the point of taxation for manpower and security services needs to be changed from a billing system to a receipt-based system," Dighe said. He highlighted the need to streamline regulations and reduce compliance burden.
Shlok Srivastav, Co-founder & COO, Appreciate, says: "The idea of ‘Viksit Bharat’ necessitates greater financial inclusion across all economic segments — and such deep financial access and education require robust digitalisation. The interim budget boded well on both these fronts, with greater projected spending (by 1.3%) in the finance sector as well as in the IT and telecom sector (by 0.3%). So cautious optimism is warranted for participants in these sectors.... As for the tax breaks several parties are keen to see: over the last four years, government capex has grown at a CAGR of around 29%, while revenue expenditure has only grown at a CAGR of around 10%. If this much-needed capex growth is to be sustained without further slowing down revenue spending, then raising tax and non-tax revenues is likely to be a priority. So, this is going to be a delicate balancing act."
Arvinder Singh Nanda, Senior Vice President, of Master Capital Services Ltd, says: "The fiscal deficit target for FY25 is likely to stay at 5.1% of GDP as per the interim budget. Emphasis will be on job creation through capital expenditure, targeted social spending, and the 'Viksit Bharat' initiative. The budget may also outline a roadmap for fiscal consolidation beyond FY26. While no reduction in personal income tax rates is expected, there could be tax relief for middle-income taxpayers. Key sectors to watch include agriculture, start-ups, housing, railways, defence, electronics, and renewables. Changes in short-term capital gains tax rates are anticipated, but significant hikes in long-term capital gains tax rates are not expected."
Ms. Garima Mitra, Co-Founder, Treelife says: "As the Full Union Budget 2024 approaches, we are hoping for policy reforms that would significantly elevate GIFT City's stature as a global financial center. Currently, any foreign remittances by Indians under the LRS route attract a TCS of 20%. Reducing the TCS rate for remittances to GIFT IFSC will make GIFT IFSC the default choice for global investment. Additionally, we anticipate the introduction of tax neutrality and regulatory relaxations for startups looking to relocate their holding company back to India in GIFT IFSC. Such reverse flips trigger adverse tax consequences for the startups and the investors, resulting in dry tax outflow, which acts as a hindrance for startups looking to move base to India”.
Anshuman Das, CEO & Founder, LONGHOUSE Consulting says: "In the upcoming budget, we anticipate measures to be taken for the startup industry to catalyse growth and innovation in this vital sector. We expect the government to address the current funding crunch, wherein incentivising domestic institutional investors to become significant Limited Partners (LPs) in local VC funds could be a game-changer. This would not only reduce fund-raising timelines but also inject much-needed capital into the ecosystem. We are looking forward to tax incentives that encourage investment in startups showing clear paths to profitability. A proposal to exempt the first 20% of profit on sale or transfer of holdings from the tax could significantly boost investor confidence. The budget should also focus on democratising access to resources, ensuring that innovation opportunities are available to a broader talent pool."
Mr. Prashant Sharma, President, NAREDCO Maharashtra underscores the need for enhanced tax incentives for homebuyers, advocating for increased limits on deductions under Section 80C and Section 24(b) to boost housing demand.
He also calls for a single window clearance system to streamline project approvals and incentives for affordable housing, including extending benefits under the PMAY and redefining affordable housing to include properties up to Rs. 1 crore in metro cities. Addressing liquidity issues by ensuring easier access to financing and expanding the SWAMIH stress fund is also crucial.
Simplifying land acquisition and promoting rental housing policies are essential for urban development. Mr. Sharma believes these measures will revitalize the sector and contribute significantly to economic growth.
Mr. Navkaran Singh Bagga CEO & Founder, AKVO atmospheric water system India, says: "Anticipate Budget 2024 to prioritize sustainable development and innovative technologies. It’s crucial that the government increases funding for green initiatives, particularly in water sustainability, to address the pressing issue of water scarcity. Incentives for renewable energy integration within the water sector could drive substantial progress. This budget should reflect a commitment to building a greener, more sustainable future for India.”
Gaurav Malhotra, Managing Director, hansgrohe India, says: "Ahead of the interim budget, we are optimistic about the positive measures that will bolster the luxury real estate sector and enhance the overall market dynamics. This aligns with the growing aspirations towards a luxury lifestyle, where consumers seek high-quality, sophisticated home interior solutions. We urge the government to put a rationalization on GST and reduce home loan interest to stimulate demand and growth for the luxury real estate sector. Additionally, we hope to see initiatives aimed at boosting local manufacturing capacity that can further strengthen the make-in-India initiative and also increase the availability of world-class products in the domestic market."
Dr Pruthvinath Kancherla, Co-Founder Affordplan, says: "The disparity in access to quality healthcare between Tier I cities and Tier II & Tier III cities remains a significant challenge. The upcoming budget of 2024 should be poised to eliminate such inequalities. Increased healthcare spending will support infrastructure development, enabling the establishment of new medical facilities and upgrading existing ones. This is expected to improve access to quality healthcare, particularly in rural and underserved areas. Additionally, the emphasis on digital health initiatives through the National Data Governance Policy will enhance the efficiency and accessibility of healthcare services."
Vandana Tandan, Head of Markets-India and Bangladesh, SIG Group says: “There is tremendous excitement and expectation surrounding the forthcoming Budget 2024. The packaging sector is growing at a CAGR of 11.06%, we expect greater emphasis to be given to align with global standards. At the same time, we also urge the policymakers to rationalize taxation across various milk processing and packaging. While fresh and pasteurized milk in the country is exempted from GST, UHT milk & value-added products, filled in our aseptic packages, attract a 5% GST, making it more expensive. Some relaxation in the GST levied can make the products more affordable, thereby benefiting both producers and consumers alike.”
The Goods and Services Tax (GST) was brought in to simplify the tax regime in India, and with the Union Budget 2024 set to be presented on July 23, it is expected that certain amendments will be made to the law, as recommended by the GST Council. Recommendations for trade facilitation, such as an amnesty scheme for the settlement of disputes for specified periods and a reduction in the amount of pre-deposit for appeals, were made before the Council at a recent meeting.
Customs is another area that generally sees amendments in every Union Budget. There is also an expectation that a new central excise law will be introduced to replace the 1944 law.
Read Saloni Roy's full article here.
Logistics industry experts are expecting steps that will further improve ease of doing business in the country, incentives and benefits for green initiatives in the sector, among others.
"There is significant scope to improve the ease of doing business by streamlining regulations and adopting digital processes. Simplifying and ensuring consistency in GST administration, greater clarity and standardisation in interpretation of customs procedures, and TDS regulations are crucial steps in this direction," said R S Subramanian, Senior Vice President & Managing Director, DHL Express India, reported PTI.
Former finance minister Yashwant Sinha on Thursday said the Union Budget should focus on taming inflation and accelerating economic growth.
Finance Minister Nirmala Sitharaman will present the Union Budget for 2024-25 in the Lok Sabha on July 23.
Talking to PTI Videos, Sinha emphasised that GDP should grow at 8 per cent to eradicate poverty in the country.
"Budget should talk about addressing the issues of inflation and accelerating growth," said Sinha who was finance minister in the Vajpayee government.
Sinha also questioned the Modi government's claim of bringing 25 crore people out of poverty in the last 10 years by saying, "The question is that if there are only 5 crore poor why are we giving free food to 82 crore people and this is a major contradiction." He further said the Budget should focus on reducing government spending which in turn will reduce the Centre's market borrowings.
Sinha said that the opposition parties are continuously raising issues related to unemployment. PTI
"There has been a consistent big push by the government of India to achieve the Net Zero target by 2070, growing 24-hour renewable energy in India and promoting climate consciousness among the masses. But a little bit more is needed, especially on - introducing a 'Climate-Conscious Consumption' tax rebate, offering up to ₹25,000 annual tax deduction for individuals adopting certified energy-efficient appliances and renewable energy solutions, could be a game-changer, potentially significantly altering consumption patterns. The government should urgently launch a ₹1,000 crore 'Renewable Workforce Training Program' to train and support 100,000 workers in coal factories with skills that can make them employable across the renewable value chain. Allocate ₹500 crore for a 'Storage Innovation Fund' to support startups and research institutions developing next-generation storage technologies. Implement a 5-year tax holiday for new manufacturing units in the advanced chemistry cell (ACC) battery sector to boost the domestic battery industry. Increase investment in grid infrastructure and build storage capacity at the grid's end to ensure a must-run status for green plants and stabilize the grid." - Tanya Singhal, Founder, Mynzo Carbon & SolarArise
"Initiatives like NEP are a step in the right direction but need to be complimented with increased private sector participation to both increase the capital allocation to the sector without over burdening the government coffers as well as to increase competitiveness to enable best global standards at most affordable price. Providing impetus through tax alignments and easing the investment avenues in the sector will be the key pointers to look out for in this budget." - Jasmeet Singh Chhabra, Co-founder, JV Ventures
“Given the significant forward and backward linkages that the real estate sector has with the economy, growth of the sector is extremely important from overall growth of the economy perspective. Key expectations from the Budget are that there should be a further impetus to the residential segment through the reintroduction of tax holidays for affordable housing with a tweak that the eligibility for affordable housing should be based on the size of the flat rather than value, the revival of the credit linked subsidy scheme which had expired in 2022 which shall enable EWS, LIG and MIG sections of society purchase houses or undertake modifications, need for increasing the interest tax deduction from Rs 2 lakh to at least 5 lakh and last but least tax incentive for rental housing which would enable meet the government’s objective of housing for all. To bring liquidity and diversified investors such as Exchange Traded Funds in the REIT market, the period of holding for long-term capital gains tax treatment for REIT units must be brought on par with listed equity shares.” - Gaurav Karnik, Partner and Real Estate National Leader, EY India
"As we approach the Union Budget 2024, the IT sector anticipates the upcoming announcements. As the world rapidly progresses towards digitalization, we believe this sector has become key for India's economic prosperity. We expect further reductions in corporate tax rates and incentive schemes to promote IT services to make Indian IT companies more competitive globally. Simplified regulatory framework and compliance in both direct & indirect taxes. Also, increased allocation for skill development programs to address the talent gap in emerging technologies. There are also expectations on enhancements and tax reliefs, including a notable proposal to increase the 80C deduction under the old tax regime and increasing the deduction limit under Section 24 for interest repayments on home loans. From an investor perspective, we expect stable tax policies, simplified regulations, and clear FDI policies to enhance ease of doing business. Overall, investors desire clarity, stability, and growth-oriented policies to create a conducive environment for long-term investment" - Srinivas Dhulipala, Head Finance, Colruyt Group India
"The new government recognizing the hospitality sector as a formal industry is essential, considering its significant contributions to national GDP and employment. One key expectation is simplifying taxation with a uniform tax rate and reducing property taxes that will strengthen operational foundations and encourage strategic investments in infrastructure development." Mr. Nair, further added, "It becomes equally important to also streamline regulatory processes. By making it easier to navigate compliance requirements, the sector will reduce its external expenses, thereby lowering costs and speeding up expansion efforts. We also hope to see resources allocated towards training programs that enhance the skills of those entering the hospitality workforce. This will not only strengthen our industry but also ensure its long-term sustainability." - Aji Nair, Chief Advisor and Consultant at Mirah Hospitality
"We anticipate the upcoming budget to prioritize renewable energy investments and sustainable infrastructure, urging policymakers to bolster incentives for clean energy adoption, streamline regulatory processes, and enhance R&D funding in green technologies. This will accelerate India's transition to a greener economy. The government subsidies on electric vehicles under schemes like FAME-II led to a 48% increase in EV adoption in 2023, reflecting momentum expected to continue in the upcoming fiscal budget. It's imperative that FAME should be continued to further stimulate this growth. Additionally, central authorities should provide subsidies, foster partnerships, standardize regulations, and rationalize GST to enhance EV charging infrastructure. Stringent measures to meet NCAP (National Clean Air Programme) emission targets and initiatives like PAYD insurance plans for EVs are anticipated. The Startup20 Engagement Group and initiatives like FFS and CGSS demonstrate the government's commitment to supporting startups, ensuring a conducive environment for venture capital and global collaboration in technology and finance." - Nimish Trivedi, Founder & CEO, Evera
