Budget 2024 Expectations Highlights: Nirmala Sitharaman to present Budget on July 23, jobs in focus

"An important step towards achieving India's sustainability objectives involves establishing a tax distinction between Internal Combustion Engine (ICE) vehicles and hybrid vehicles. Lowering the cess from 15% on hybrids can accelerate adoption, paving the way for a cleaner automotive future. It's a crucial step towards transitioning to electric vehicles and green hydrogen technologies, aligning with India's sustainability goals. The GST compensation cess, a central levy, helps bridge the revenue gap for states after transitioning to GST. This allows the government to adjust cess rates without needing the GST Council's approval." - Saurabh Agarwal, Partner & Auto Tax Leader, EY India

"Indian cities are evolving at a rapid rate- mass migration, infrastructure upgrades, increase in vehicular ownership penetration, and our pursuit to build 100 smart cities by 2024 has been a game changer. Having said that, for India to truly build smart cities, it is imperative that we also embed smart vehicular management systems within the current urban architecture. With over 45cr+ vehicles (4W, 3W, 2W) on Indian roads today, we need to ensure that real estate players, auto-tech startups, OEMs, local municipalities, and government bodies, work together to offer services to make Indian roads smart and safe. All stakeholders need to work together to provide safe/legal parking spots, unclog gridlocks, combat monsoon-triggered flooding, create smart traffic management systems, build EV charging stations, ensure better driving behavior, and reduce road accidents. I look forward to seeing the government promoting policies & launching initiatives to build smart cities of the future, which are safer, smarter, and livable." - Amit Lakhotia, Founder & CEO, Park+

As India aims to solidify its position as a global digital leader, we eagerly anticipate budget policies that provide substantial support for setting up robust digital infrastructure. Key expectations include initiatives specifically targeted at businesses undergoing digital transformation, particularly in the areas of Machine Learning (ML) and Artificial Intelligence (AI). Such measures will not only drive innovation and enhance productivity within the country but also bolster India's competitiveness on the global stage. By facilitating access to advanced technology and ensuring affordability, the budget can play a pivotal role in empowering Indian businesses to excel in the digital age and contribute to the global digital economy." - Prasad Shejale, Founder and CEO LS Digital

"When the FM first addressed the Lab-Grown Diamond industry in Budget 2023, reducing custom duty on the seeds for manufacturing LGDs, it gave a renewed fervor to the sector. 2023 became the year of lab-grown with a grant to IITs to facilitate the growth of LGDs in India. Speaking statistically too, India currently has 25% of the global market share in the production of lab-grown diamonds, where market size is projected to grow by 7-9% in FY25, clocking a ,192.3 million valuation by 2033. With the numbers in favour, the lab-grown diamond industry expects sustained support from the government, especially to boost export activity. We have the potential to cater to the demand worldwide, where policies that facilitate ease of global business will become critical to the growth of the industry. As India strives to be self-reliant in the entire diamond value chain, the LGD industry is looking up to create global footprints as market leaders." - Ricky Vasandani, CEO Solitario Diamonds.

"As we look towards the Union Budget 2024, it is crucial to recognize the practical potential of AI in enhancing jobs and wages. AI, particularly generative AI (GenAI), is set to revolutionize the job market by augmenting human capabilities, driving productivity, and creating new job opportunities across various sectors. India's AI industry is poised for exponential growth, with estimates suggesting that AI could add $500 billion to the nation's GDP by 2025, as per TeamLease Digital. To harness this potential, robust regulation and ethical guidelines are imperative. Ethical guidelines and comprehensive regulatory frameworks, as underscored by recent NITI Aayog studies, are essential to ensure responsible AI deployment, safeguarding against biases, and protecting data privacy. Prioritizing reskilling and upskilling initiatives is crucial to prepare the workforce for AI-driven changes. According to a World Economic Forum report, 50% of all employees will need reskilling by 2025 due to AI advancements. In the present scenario, these key investments are essential for comprehending the vision of 'Viksit Bharat'. By establishing a strong AI ecosystem now, India can ensure inclusive growth, enhance global competitiveness, and improve the quality of life for its citizens. Such foresight in budget allocations will pave the way for a developed and prosperous nation, accomplishing the ambition of India@2047." - Lokesh Nigam, Co-founder and CEO, Konverz.ai

"The Indian economy is projected to grow by 7.2 percent in FY25, driven by improving rural demand and decreasing inflation. We appreciate the government's strong focus on the logistics sector with initiatives like PM Gati Shakti, Sagarmala, Bharatmala, and the National Logistics Policy. The previous budget's emphasis on infrastructure improvement and regulatory streamlining, especially the announcement of railway economic corridors under the PM Gati Shakti initiative, marked a significant leap towards multi-modal connectivity and reduced logistics costs. This aligns with our industry's expectations and will accelerate India's GDP growth. Looking ahead, we expect continued support for technology-driven solutions, skill development, and strategic incentives. The anticipated union budget will enhance multimodal connectivity and improve efficiency in the logistics industry. We also foresee comprehensive policies promoting electric vehicles, alternative fuels, and sustainable practices. These measures will boost economic growth in the logistics sector, aligning with the goal of a $5-trillion economy and a 'Viksit Bharat' by 2047. A robust Capex Budget is crucial to sustain and enhance this growth trajectory, positioning India as a logistics powerhouse." - KK Agarwal, Chairman & Managing Director, CJ Darcl Logistics Ltd.

"The new Union Budget comes with new expectations and developments in the Indian market. As the Industry have changed significantly, the stakeholders are looking forward to addressing certain bottlenecks in development. As market demand accelerates, the industry is expecting the government to establish a separate R&D fund for research apart from the PLI Scheme in the Drone segment to keep industry players future-ready. This budget not only reinforces the importance of indigenous manufacturing but also promises to boost the capabilities of the industry, paving the way for enhanced applications in logistics, surveillance, agriculture, inspection and other commercial sectors. We are optimistic that this budget will facilitate growth and position India as a global leader in UAV solutions."- Rama Krishna, Co-founder and CEO, EndureAir.

"As we approach Union Budget 2024, it is crucial to prioritize the manufacturing sector with a strong emphasis on robotics and automation. Investing in advanced manufacturing technologies can significantly enhance productivity, drive job creation, and mitigate unemployment challenges. India's economic resilience presents a prime opportunity to stimulate growth through strategic investments in automation and robotics. Encouraging the widespread adoption of these technologies will not only bolster operational efficiency but also foster the creation of high-quality jobs, cultivating a skilled workforce equipped for the future. To achieve this, the government should introduce policies that incentivize businesses to integrate automation solutions. Moreover, infrastructure development and targeted skill enhancement programs will play pivotal roles in facilitating this transition." Satish Shukla, Co-founder, Addverb.

“As we aim to achieve Net Zero emissions by 2070, we must accelerate our efforts and maintain a steadfast focus on our targets. Strategic planning is essential to meet these goals on time. The government has made significant strides in this direction, demonstrating its commitment to sustainable growth. From increasing budget allocations to supporting emerging technologies such as green hydrogen, each step drives us closer to our visionary goals. Investments are necessary to fund R&D to produce hydrogen with relatively coarse water quality, ideally close to seawater. This would allow the most efficient use of one of the most abundant natural resources i.e., water. To address carbon emissions, we must concentrate on other sectors that significantly contribute to emissions and promote sustainable development. Incentivising carbon capture and utilisation is one viable approach, as carbon capture presents a powerful solution until hydrogen costs decrease with scaling. In this Union Budget, we anticipate a strong policy framework to facilitate efficient growth and subsidies to encourage businesses to adopt emerging eco-friendly practices,” says Varun Puri, Managing Director, Green Power International.

"In recent years, there has been an increased focus on healthcare, and government initiatives like Ayushman Bharat - Pradhan Mantri Jan Arogya Yojana (PM-JAY) and the National Health Mission have helped connect millions of people to essential health services and insurance. However, given the size of our country, this requires more impetus, particularly through increased public-private partnerships. In the infertility space, we hope to see a greater focus from the government. While India has the world's largest population, falling fertility rates will have an impact in the next 25-30 years. Research Report published by The Lancet suggests that India’s total fertility rate (TFR) is irreversibly plunging to 1.29, and by 2050, one in five Indians will be a senior citizen. The predictive scenario is alarming. We must not overlook the data and repeat the same oversights made by developed countries. Including fertility and IVF treatment under insurance coverage can make affordable healthcare a reality for all, bringing joy to many couples longing for parenthood. It will help build healthy families and secure the future of the nation," says Abhishek Aggarwal, Chief Business Officer, Birla Fertility and IVF

The financial technology sector expects the 2024 budget to improve the regulatory environment for startups. SaveIn founder and CEO, said, "Ensuring clarity in regulatory environments is paramount for startups, particularly within the fast-evolving FinTech sector. The continuous flux in this landscape highlights the critical importance of stable and transparent policies. The introduction of targeted provisions within budgetary frameworks could substantially enhance the viability and growth prospects of startups. From an investment standpoint, creating an enabling policy environment is essential to attract foreign capital, thereby fortifying India's startup ecosystem and reinforcing its position on the global stage. The budget is likely to address financial inclusion as a critical aspect, with the announcement of a streamlined credit platform emphasising the Reserve Bank of India's commitment to facilitating easy access to credit for small businesses and individuals.”

"We expect the government to maintain fiscal prudence by lowering the fiscal deficit target to 5% from 5.1%, as mentioned in the Interim budget. The RBI's decision to transfer a record Rs 2.11 trillion as a dividend to the government will assist the government in maintaining fiscal consolidation. We also expect the government to increase revenue expenditure through higher transfers to states for capital expenditure or by raising transfers to farmers through PM Kisan from Rs 6,000 to Rs 8,000 annually," says Himanshu Kohli, Co-founder, Client Associates, which provides financial services.

"As a country, we must become more adaptable to pre-engineered buildings and prefabricated structures, as they are more evolved versions of construction. These are sustainable solutions to the construction demands of the country. In doing so, we are committing to innovation as well as environment-friendly practices. Considerations such as a constructive regulatory framework would enhance the utilisation of PEBs within the industry, and lowering GST or incentivizing the use of Prefabricated Engineered Buildings (PEBs) in government infrastructure projects could be instrumental steps in this direction. Furthermore, subsiding and incentivising the use of PEBs and prefab structures; or introductions of new schemes like the regional-connectivity schemes - UDAN & PM Gati Shakti scheme could be instrumental in realising the true potential of the country as a developed nation," says Nikhel Bothra, director, EPACK Prefab.

Flagging the issue of "decline in real wages", the Congress on Thursday said Prime Minister Narendra Modi has been delivered a "stinging rebuke by voters" in his efforts to reach "400 paar" in the Lok Sabha but the Budget offers him the chance to achieve "Asli 400 paar" of a nationwide minimum wage of Rs 400 per day.

Congress general secretary in-charge communications Jairam Ramesh said multiple data sources, including the government's own official statistics, are unanimous in showing that workers can buy less today than they could 10 years ago.

"A combination of slow wage growth and back-breaking inflation has caused an unprecedented decline in real wages (wages adjusted for price rise)," he said in a statement. PTI

With the Union Budget announcement approaching, elderly NGOs across India are urging the government to address the pressing needs of the country's senior citizens.

Organisations like Agewell Foundation and HelpAge India have outlined comprehensive proposals to Finance Minister Nirmala Sitharaman, highlighting the urgent requirement for enhanced financial support, healthcare and social security for the elderly.

A significant demand is the revision of the central contribution to the old age pension under the National Social Assistance Program (NSAP).

The NGOs advocate increasing the pension amount from the current Rs 200-500 to at least Rs 1,000 per month for those aged over 60 years and Rs 1,500 per month for those aged over 80 years.

Combined with the state government contributions, this would set a national minimum pension of Rs 1,500 to Rs 3,000 per month, depending on the state's fiscal capacity. PTI

The objective is to share views and highlight the organization's perspective on upcoming economic measures. We expect the Union Budget 2024-25 to introduce progressive reforms to meet rising demands for residential and commercial spaces. Our top priorities include tax breaks for affordable housing projects to boost stagnant sales in the sector. Also, a revival of the Credit-Linked Subsidy Scheme will make homeownership more accessible. We also expect tax incentives and infrastructure enhancements to boost urban living standards and drive growth in emerging areas. Simultaneously, we expect the government to grant industry status to real estate, a long-standing demand that could drive fresh investment and growth.

The Indian life sciences sector has immense potential and has been drawing global players to not only leverage our strength in contract manufacturing but establishing global capability centres (GCCs). Being home to about one-third of the life sciences GCCs, Bangalore tops the chart, closely followed by Hyderabad. This is a significant move as it accelerates innovation in life sciences and shifts the focus to a more integrated approach. To maintain and amplify this momentum, it is essential to ensure a steady inflow of investments, particularly foreign direct investment (FDI) which brings capital, expertise, and advanced technologies. We are optimistic that the upcoming budget announcement will prioritize the life sciences sector, enhancing investment flows and fueling innovation and success in India.

We are optimistic and expect the upcoming budget to bring in massive transformations. We urge the Finance Minister to implement tax reliefs in terms of reduction in GST rate along with an input tax credit on under-construction properties. Besides, anticipation is high that home mortgage rates will drop considerably to pave the way for renewed growth. Granting industry status to the sector would be another significant step that would catalyse growth and contribute to the nation's economy. Also, we expect the government to continue focusing on more infrastructure development in highways, metro lines, planned satellite cities, etc as it will help drive housing demand across the country.

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 -

- Introduce a robust incentivization scheme to promote climate-conscious behavior among the masses. This could be a game-changer, potentially significantly altering consumption patterns. For instance, 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 powerful motivator.

- The lack of talent in the renewable industry is a pressing issue, with coal still being chosen for employment reasons despite its lack of economic or reliability merits over 24-hour round-the-clock hybrid renewables with storage. To address this, the government should urgently launch a ₹1,000 crore 'Renewable Workforce Training Program'. This program is not just a solution, but a necessity, aiming to train and support 100,000 workers in coal factories with skills that can make them employable across the renewable value chain, especially during plant construction.

- Allocate ₹500 crore for a "Storage Innovation Fund" to support startups and research institutions developing next-generation storage technologies that will benefit the renewable and EV industries.

- 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 at various substations to ensure a must-run status for green plants and stabilize the grid.

The Indian real estate sector has shown great resilience on the back of a global economic slowdown and rising input costs, helping maintain the demand and supply scenario, said Angad Bedi, MD, BCD Group. However, he said, the sector needs to be rewarded for its contribution to economic growth, employment creation and creating a world class infrastructure through downward tax revisions, and revising the GST input tax credit rules in order to reduce property prices and accelerate demand across all asset classes.

Furthermore, the industry’s long-standing demand for according the industry status to the sector needs to be looked at on priority in order to achieve the government’s ambition of housing for all and becoming a $5 trillion economy by 2025, he said.

Additionally, the government should look at strengthening the regulations around the sector including RERA, single window clearances for all approvals and swifter resolution of stuck projects to accelerate the sector’s growth, Bedi said.

"These initiatives along with greater public and private investments in infrastructure, attracting higher foreign direct investment and promoting emerging sectors of real estate such as student and senior living will significantly contribute to the expansion of the sector. We are hopeful of the finance minister addressing the needs of this fast-growing industry and recognise its pivotal role in India’s growth saga," he said.

The forthcoming Union Budget due in July 2024 could continue the roadmap laid out in the previous Budgets barring a small course correction. It could largely retain the revenue and expenses projections made in the interim Budget (except for the windfall dividend from RBI).

This additional receipt from the RBI could be used to:

i) cut the fiscal deficit target to 5.0% for FY25 from 5.1% in the interim Budget thus reinforcing the inclination to stick to fiscal consolidation;

ii) make higher transfers to states for capex spend

iii) increase transfer under PM KISAN from Rs.6000 p.a. to Rs.7500 p.a.

iv) provide incentive to income tax payers to shift to the new tax regime by providing higher standard and other deductions/higher exemption limit/changes in tax slabs.

As a result of massive infrastructure development and connectivity across India, tier 2 markets and peripheries of metro/tier 1 cities have witnessed strong demand for residential spaces.

Not just price of new launch projects but also prices in secondary market have seen a steep rise in the last few years. Going forward, several cities will witness availability of high-paying jobs which in turn may force job-seekers to move back to their hometown.

"As we approach the Union Budget 2024-2025, there is a palpable sense of anticipation within the cybersecurity sector. The government has consistently demonstrated its commitment to this critical industry through strategic investments and supportive policies. Reflecting on the past years, it's clear that our digital defenses have been significantly strengthened.

I am optimistic that this year’s budget will further amplify this focus, with substantial allocations to enhance our cybersecurity infrastructure.

As the founder of Zeron, I believe this continued prioritization of cyber resilience and innovation is crucial for defending against evolving threats and driving economic growth. This budget will not be merely a financial planning; it'll be a bold declaration of India's intent to become a global cybersecurity leader." 

"As we approach the upcoming budget, it is crucial to prioritize the growth of digital payments through enhanced security measures and the establishment of a fraud data consortium. With the rapid expansion of digital payments, substantial resources must be allocated to fortify security infrastructure, ensuring that consumers and businesses can engage in transactions with confidence. The creation of a fraud data consortium would enable financial institutions and payment service providers to share information about fraudulent activities, fostering a collaborative effort to combat fraud."

It is crucial for the government to prioritize ESG and sustainability initiatives to drive long-term economic growth and environmental resilience.

Enhanced incentives for green technologies, stricter regulations on carbon emissions, and increased funding for sustainable infrastructure projects are essential.

Our energy sector and transport sector would need to decarbonise which eventually would help other sectors as well on their decarbonisation agenda.

These measures will not only help India meet its climate commitments but also position the nation as a leader in sustainable development.

I am expecting the budget to be in sync with the people aspirations from the Government’s unprecedented third term win. The focus, I believe, will be on strengthening the existing policy framework, focus on ease of business and put in the building blocks for a “Vikasit Bharat” by 2047.

Liquidity is a challenge faced by the NBFC segment since public deposits and ECBs have been restricted and there is an appeal to the Government to ensure that systems are put in place for creating a refinancing body for the segment, so that the goal of financial inclusion of all can be met. The Government should also incentivise the NBFC segment for investment in tech, focus on serving the underserved communities and meet the final goal of easier access to credit by all.

In the eMobility space, we hope that Government enlarges the scope of Faster Adoption and Manufacturing of Electric Vehicles (FAME 2), to include smaller players too in the segment. eRickshaws and eLoaders have transformed the Informal Public Transportation Systems in the rural and urban spaces.

Today, we are witnessing a massive growth in the number of e-rickshaws, but not all of these are registered, especially those used for intra-business purposes. The Government should make EV registration and insurance a mandatory requirement. Lowering the registration cost as a policy will promote more people opting for registration.

The Govt needs to focus on creating policies that are the same across the country and promote a strong regulatory framework that ensures that the E-Mobility sector continues to grow and contribute significantly to the sustainability goals as well.

With the Government being sworn in for a straight third time, we expect a continuity of policy. We expect a renewed focus on infrastructure development, manufacturing and job-creation.

India aspires to be an export hub with the stated target of exports of Goods and Services worth $2 Trillion by 2030. This can be made possible by reducing the tariffs on imports of raw materials and ensuring that the right building blocks are in place, especially for the manufacturing sector. In addition, putting stringent anti-dumping measures will ensure that the domestic manufacturers have a level playing field.

We believe that the Budget will ensure that the Government’s commitment to the manufacturing sector as a whole and Chemicals sector in particular moves seamlessly.

Today Chemicals contribute around 7% to the GDP and India is the 6th largest producer of chemicals in the world. The Chemical sector is estimated to grow to $300 Bn by 2025 and $1 Tn by 2040.

We hope that the budget focuses on bringing PLI in the chemical & petrochemical sector so as to propel growth, for both existing and greenfield facilities. In addition, development of quality infrastructure and chemical hubs with centralized waste and effluent treatment systems will bring India at par with the other manufacturing hubs. This will ensure that the sector continues to be an important participant in the India growth story.