Budget 2024 Highlights: Govt brought down inflation from double digits to 4%, says President Murmu

"For an industry that contributes 7–8 % to the country’s GDP and begets employment only second to agriculture, real estate is a relatively less appreciated and recognised industry. The government must provide momentum and succour to further stimulate the buying thereby encouraging the buyers. Further through the new budget, government has to undertake cogent steps to not just boost demand but also address regulatory obstacles. A single window clearance, tax reliefs and GST rationalisation are some of the unequivocal measures that need to be initiated apart from granting real estate the industry status it has long deserved," says Vipin Suree, Founder and MD, Space Creattors.

"However, I, on behalf of CICU expect that budget of MSMEs should be made three times so that these industries can take benefit of many schemes which remain unutilised for want of funds. Income tax on new public limited firms these days is 15% of the total income while in case of partnership firms existing earlier it is 30%. In India majority of the firms are in partnership. Freight subsidy is a must for the landlocked states like Punjab and in its absence we are getting out of competition," said Upkar Singh, President of Chamber of Industrial and Commercial Undertakings (CICU). 

"In addition to this petrol, diesel and electricity should be brought under GST. AITF strongly advocates 'One Nation One Tax' slogan. The slogan of the GST is one nation one tax but there are multiple slabs of GST on all products. Further the income Tax exemption limit should be 10 Lakhs," says Badish Jindal, National Convenor of All Industries and Trade Federation (AITF).

"Presently there is no social security of entrepreneurs. Even after paying huge direct taxes and GST there is no pension or other benefits given to entrepreneurs. More than 1 crore MSMEs were hit by the impact of COVID, Many of the MSME’s were forced to close down their works but government didn’t compensated to such MSMEs," says Badish Jindal, National Convenor of All Industries and Trade Federation (AITF).

"We firmly believe that the government's proactive initiatives related to Digitalisation and Make in India initiatives will provide the much needed impetus in the right direction for boosting employment and creating global competitiveness for Indian players. We have seen that consumers are increasingly inclined towards products manufactured locally and brands are going all out to fulfill their demands. We look forward to a budget that will create a stable and growth oriented tax environment, which will help in ease of doing business, and will lead to increased economic activity and demand generation," said Pradeep Bakshi, MD & CEO, Voltas Limited.

'Growth must only be talked about with inflation. This is not a budget. It is only a vote on account to allow the government to function until the new government is formed after the 18th Lok Sabha,' says Congress MP Karti Chidambaram in response to the Presidential address in the Parliament earlier today.

"My Government is working towards making India a major space power of the world. This is a mode to make human life better. This is also an effort to increase India's share in the space economy. Important decisions have been taken for the expansion of India's space program. Several new space startups have been formed. The day is not far when India's Gaganyaan will go into the space," President Draupadi Murmu said in the Parliament.

"In the past years, the world witnessed two major wars and faced a pandemic like Corona. Despite such global crises, my government kept inflation under control in the country and did not let the burden on common Indians increase," President Murmu said in her address at the Parliament.

In her joint address to both houses of the Parliament, President Droupadi Murmu lauds defence production crossing the Rs 1 lakh crore mark.

On the first day of Budget session, President Droupadi Murmu is addressing parliamentarians from both Houses. She highlighted key achievements of the government.

Budget 2024 Live Updates: The expectations from FY2024-25 budget from an Indirect Tax standpoint is around improving the global trade ecosystem, simplification and streamlining of compliance framework, policy measures to cultivate local competencies and exports as well as focus on simplification and certainty in tax policy.

Read details here.

"This time, Finance Minister of the country, Nirmala Sitharaman will present the budget with 'disha-nirdeshak baatein'. I am of the firm belief that the country is going ahead by crossing new heights of progress every day. All-round and inclusive development is taking place. This journey will continue with the blessings of people..."

Policy and regulatory think tank Broadband India Forum (BIF) believes that the government should facilitate affordable broadband through Satcom and budgetary support for the growth of Public Wi-Fi, and reduction in statutory fees and levies and exemption of GST on service revenues.

Broadband service provider Netplus believes that the forthcoming budget should prioritise strategic allocations in the sector with an aim to bridge the digital gap, thus securing a more inclusive digital future.

“Recent figures underscore the escalating demand for robust digital infrastructure, with a notable surge in internet usage across sectors. The pandemic-induced shift towards remote work, online education, and telemedicine has emphasized the need for expanded broadband accessibility. Investing in broadband expansion is not just a technological imperative; it’s an economic necessity. Studies indicate that for every 10% increase in broadband penetration, there is a potential GDP growth of 1–1.5%. However, challenges persist, such as the digital divide, where underserved communities face limited access,” said Gurdeep Singh, Chairman and founder of Netplus.

Transportation and e-commerce giant FedEx is expecting digitisation of the sector to accelerate speed and ease of doing business and initiatives that will sustainably boost manufacturing and trade. The company also advocates for a strategic allocation towards infrastructure development for more efficient multimodal logistics.

“We urge a consistent budgetary emphasis on expanding airport infrastructure for cargo, strengthening regional airports and developing dedicated transshipment hubs to optimise belly and freight capacities. We underscore the importance of digitally advancing customs clearance processes through cutting-edge technologies such as artificial intelligence, machine learning, blockchain, and big data. This approach promises improved risk management, compliance, efficiency, and analytics,” said Kami Viswanathan of FedEx Express.

Finance Minister Nirmala Sitharaman is all set to present her sixth union budget on February 1. With the presentation of this budget, Sitharaman will surpass the record of her predecessors like Arun Jaitley, P Chidambaram, Yashwant Sinha and Manmohan Singh, who had presented five budgets in a row.

The 2023 budget set out to achieve two main goals: Incentivising the private sector to create fresh jobs and push growth. And second, increasing the capital expenditure as well as disinvesting the government’s stake in the PSUs.

As per the Mahindra group company, the interim budget 2024-25 should focus on domestic manufacturing, growth in fulfilment logistics, and multi-modal transportation adoption in the industry.

“The upcoming interim budget offers a unique opportunity to balance economic growth priorities and fiscal consolidation. Prioritising capital expenditure in key infrastructure projects, alongside financial incentives like PLI, tax benefits, and subsidies, can drive innovation in logistics. Building a ‘One India’ logistics ecosystem and integrating initiatives like the National Logistics Policy and Sagarmala Project are crucial to enhancing India’s global Logistics Performance Index ranking.”

Influencer Marketing Platforms are demanding acknowledgement for the role in the digital era and a clear established guidelines regarding practises.

'As we approach the forthcoming Union Budget 2024, it is critical to acknowledge the instrumental role of influencers in driving digital growth, especially in tier-II and Tier-III markets. We anticipate relaxations for micro-influencers, which can potentially lead to unprecedented growth in this industry. Furthermore, the establishment of clear guidelines and regulations specific to influencer marketing practices could provide stability and help instill a sense of professionalism within the industry,' said Sumit Gupta, Founder of Viral Pitch.

India’s real estate industry, like other sectors, is eagerly anticipating the 2024-25 budget announcements which will be instrumental for sustaining the growth momentum. The industry had been long calling for a relook at the definition of “affordable housing”, the term last defined in 2017.

“A major focal point for the Government continues to be affordable housing. We suggest an increase in the cap for interest rate deduction under section 24(b) from Rs. 2 lakh to Rs. 5 lakh per annum. Additionally, there's a call to redefine the definition of affordable housing, proposing an increase in the cap from Rs. 45 lakh to Rs. 1 crore, particularly in metro cities. This change is expected to significantly boost both affordable and mid-segment housing,” said Sandeep Runwal, President of NAREDCO Maharashtra.

Pune's top real estate developers want the union government to re-define "affordable housing" in the interim budget. The current definition, made in the year 2017, is obsolete as per them due to rising property inflation.

"Among other things, I would like the government to re-define affordable housing. The current definition of affordable housing is the one which was made in the year 2017. Due to the inflation there has been a significant rise in real estate prices in the past seven years. As per the National Housing Bank (NHB) data, there has been an increase of 24 per cent in housing rates since June 2018 in India. This makes the current cap of Rs 45 lacs for affordable housing extremely unfeasible for the real estate sector. This should be raised," said Ranjit Naiknavare, President of CREDAI Pune Metro, an apex body for real estate developers.

Indian benchmark indices plunged nearly 1% at the end of Tuesday's session after opening with minor cuts. BSE Sensex tanked 801.67 points, or 1.11 per cent at 71, 139.90 and Nifty 50 ended at 215.50 points, or 0.99 per cent lower at 21, 522.10.

Indian Rupee closed 2 paise stronger vs Monday close at Rs 83.13 against the American currency. The dollar index, which measures the global currency against its six peers, traded 0.06 points, or 0.06 per cent higher at 103.35.

India's interim budget to be tabled on February 1, 2024, and US Federal Reserve’s rate decision are going to be key triggers for Indian indices this week. Read details.

India's first full-time woman Finance Minister, Nirmala Sitharaman, is all set to equal the record of Morarji Desai by presenting her sixth budget on February 1, 2024. Sitharaman will surpass the records of her predecessors like Manmohan Singh, Arun Jaitley, P Chidambaram, and Yashwant Sinha.

Read details here.

"45 leaders from 30 parties, including the ruling BJP, attended the meeting...The meeting was held in a conducive atmosphere. This is a short session and the last one of the 17th Lok Sabha...We have requested the MPs to not come with placards," Parliamentary Affairs Minister Pralhad Joshi said to media after the conclusion of the meet.

Union Budget 2024 Live Updates: With a sharp increase of 33–37 per cent each year, India has seen a rising trend in the capital expenditure (capex) over last three budgets. While presenting the capex budget of Rs 10 lakh crores last year, Finance Minister Nirmala Sitharaman said, “Investments in infrastructure and productive capacity have a large multiplier impact on growth and employment.”

In subsequent GDP growth readings, analysts have cited the government’s capex push as one of the main drivers of the country’s economic growth.

Read this for details.

The Indian economy is expected to reach the $5 trillion mark to become the third-largest economy in the next three years, the Finance Ministry said in a report titled The Indian Economy - A review. The report is prepared by the office of Chief Economic Adviser. Read details here.