EV Industry’s Expectations from Budget 2024
Devndra Chawla, MD and CEO of GreenCell Mobility, said, “In anticipation for Budget 2024, we have focused on essential imperatives that are critical to the long-term development of India’s dynamic electric vehicle (EV) market. One significant recommendation is to secure permanent viability gap funding for financially pressured State Transport Units (STUs) and to develop payment security mechanism to reduce lending risks and improve credit offtake.”
We emphasise the importance of an infrastructure sector tag for financing to electric mobility projects and propose a capital expenditure subsidy for private bus operators that deploy e-buses on intercity routes. Categorising electric mobility loans as Priority Sector Lending and introducing incentives for battery recycling are critical steps towards lowering interest rates and promoting sustainability, he added.
“Standardising Green energy open access rules, toll exemptions for electric buses, optimising charging costs through regulatory measures and opening government electric bus depots to private players are important to creating a suitable ecosystem. Initiatives such as wayside charging infrastructure on national highways, specialised facilities at transport hubs and strategic highway adoption plans for pure electric bus operations will also help sustainable mobility,” Chawla said.
Budget Expectations from FinTech Sector
Rohit Arora, co-founder & CEO of Biz2Credit and Biz2X, said, “We anticipate a budget that prioritises enhancing digital lending frameworks and creating a stable policy environment, fostering a conducive environment for the growth of the fintech sector. Measures such as simplified regulatory procedures and reduced compliance burdens can empower startups and MSMEs, promoting a more agile and competitive landscape.”
Furthermore, targeted efforts to create jobs in Tier 2 and Tier 3 cities will address employment gaps and stimulate economic development across the country. Additionally, promoting Global Capability Centers (GCCs) with incentives for high-end job creation and upskilling will position India as a global leader in technology and innovation, he added.
Union Budget 2023 Expectation: Prioritize Growth Initiatives in the Services Sector
This year’s budget has the power to impact the services sector significantly, and we expect it will prioritize growth initiatives in the sector. The sector needs streamlining of regulations and reduction of compliance burden.
The GST tribunals need immediate operationalization. They are crucial to efficient resolution of backlog of GST-related disputes.
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. This would significantly enhance cash flow management for services companies and align their taxation with actual revenue received. While the GST Council typically takes decisions on such matters, we hope the central government will consider these concerns in the upcoming Union Budget.
– Sanjay Dighe, CEO & Director of Krystal Integrated Service Ltd
Budget Expectations From EdTech Sector
Monica Malhotra Kandhari, managing director of Aasoka, and Amit Kapoor, co-founder of Eupheus Learning, shared their pre-budget 2024-25 expectations:
Kandhari: “We hope that the forthcoming Union Budget under the Modi 3.0 government will provide increased funding and support innovative educational solutions. By investing in technology-driven and blended learning models, we can transform the education landscape across India. The National Education Policy 2020 emphasizes making learning interactive, engaging, and meaningful, and additional budget allocations can help bring this vision statement to life.”
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. We believe that with the right support, we can empower the next generation of students to excel in an ever-evolving world, she added.
Kapoor: “As the Modi 3.0 government prepares the new union budget, we at Eupheus Learning expect to see greater support for digital infrastructure in schools and more funding for innovative educational technologies. Additionally, GST should be applicable on both print and digital solutions so as to create efficiencies in the ecosystem. These are important for making education accessible, affordable and effective for millions of students. We believe new policies in the education system should bridge 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, he added.
Union Budget 2024 Expectations: Economic vision of new govt, political theme key aspects to watch, says Nomura
The upcoming Union budget for 2024 is anticipated to reflect the economic vision and political strategies of the new government, according to insights shared by Japanese brokerage Nomura on Thursday. Key aspects highlighted include the management of fiscal policies and expectations of subdued equity returns in the latter half of the year. Nomura has reaffirmed its year-end target of 24,860 points for the Nifty, indicating a modest 3% increase from current levels. The brokerage foresees muted returns in the equity market during the second half of the year. Looking beyond fiscal year 2026, the focus will be on the government’s commitment to reducing the fiscal deficit to 4.6%. Nomura’s India Economist Aurodeep Nandi emphasized this fiscal glide path as a crucial element to monitor. Nandi pointed out that the budget’s “political theme” will heavily depend on coalition partners, particularly from Bihar and Andhra Pradesh. The expectations revolve around how the government will address the demands of allies like Janata Dal and TDP, who hail from these states.
Budget 2024-25: Indian Steel Association Calls on FM Nirmala Sitharaman
A delegation from the Indian Steel Association, led by industrialist and MP Naveen Jindal, calls on Finance Minister Nirmala Sitharaman on Friday, ahead of the Union Budget 2024-25. Sitharaman will present the Union Budget 2024 on July 23.
Budget Expectations from Travel and Tourism Sector
Amit Jain, founder of Magicfares, shares his Budget 2024-25 expectations:
“The Indian travel and tourism sector has demonstrated remarkable resilience recently. Increasing demand for hospitality services, bustling airports, and renowned travel destinations underscores that tourism is not merely a recreational activity but a crucial driver of global economic expansion. As per recent reports, the industry is expected to contribute significantly to the global GDP and employment creation by 2030, affirming its robust trajectory. With ancillary sectors also poised for significant growth, career opportunities are set to expand manifold in the travel and tourism industry. We need a cohesive approach that would encompass the public and private sector on one hand, and the government (state and central governments, and local authorities) on the other hand, in order to continue developing world class tourism infrastructure.
Recognising tourism as a sustainable engine for economic growth and development, it is imperative to accord industry status to the travel and tourism sector, which will help in the regularization of policies and processes and better access to finance. We envision a strategic redistribution of tourism across diverse geographies, fostering inclusivity and exploration beyond traditional hotspots. The government’s continued efforts to enhance infrastructure, including new airports and expanded transportation networks, alongside developing religious circuits and lesser-known attractions, are pivotal for national growth and future-proofing the tourism sector. Improved accessibility can significantly boost tourism, benefiting local economies. We also believe that the standardisation of tax collected at source (TCS) at five per cent on foreign travel packages should be considered, against the current five per cent and 20 per cent slabs. This is hampering our business as customers prefer to use alternate channels that are outside the domestic tax net.
The government should bring in changes such as reduction in income tax and related exemptions which could also benefit the sector to a great extent by creating a favorable environment for people to spend their disposable income on travel. We also expect rationalisation of GST rates to make hotel stays more affordable for tourists. The budget should modify the Leave Travel Allowance (LTA) rules to include the amount spent on hotel stays to be considered as LTA expense. Further, corporates should be offered with incentives for organizing meetings and conferences in India through partial or full tax exemptions on the expenses incurred, thereby boosting domestic travel and tourism. Incentives for hotels, resorts, and travel agencies are also needed to promote local destinations. We are also hoping for budgetary allocations for global marketing campaigns to promote tourism in the country. Overall, the industry looks forward to ease of doing business to ensure that the travel and tourism sector continues to be the one of the foremost employers in the country. As the sector contributes significantly to the influx of the forex, we expect the government to implement strategic initiatives that will position India as a global travel hub.”
Budget Expectations from Education, Skilling Sector
Rohin Kapoor, partner of education and skilling- management consulting at BDO India, shares his pre-budget expectations from Budget 2024-25:
Education Sector:
-Expenditure on the education sector could be increased to at least 5% of India’s GDP.
-Rolling out a fair & transparent central government driven regulatory framework for attracting foreign investment in K12 sector, similar to efforts in higher education.
-Reforming & reorganising NTA in the best interests of the students & to avoid future controversies.
-Announcement of investment in digital infrastructure to curb malpractices in competitive examinations.
-Reintroduction of Higher Education Commission of India (HECI) Bill to form one single regulator for higher education in the country.
-Increased investment & intent in transforming teaching as a career of choice for the next generation.
-Higher allocation to ‘train the teachers’ initiatives.
Vocational Education & Skill Development Sector:
-Higher budgetary allocation for building greenfield training facilities to meet future skilling requirements and further improvement of existing facilities.
-Announcement for conducting skilling census to identify level of skills possessed & mapping it with the current/future demands of the industry. This will help us in identifying areas for future investments by government/corporates.
-Job guaranteed linked skilling programmes are more likely to deliver better results.
– Steps to increase participation of industry in the sector to increase employability.
Budget 2024 Expectations from Healthcare Sector
Azad Moopen, founder and chairman of Aster DM Healthcare, said, “India has been progressing steadily in increasing investment in public health infrastructure, and we hope to see a significant increase in the healthcare sector’s budget allocation to at least 5 per cent of the GDP. This is crucial to address the existing gaps and enhance the overall quality of healthcare delivery in India.”
While the last budget announced the establishment of nursing colleges alongside medical colleges, there is an urgent need for comprehensive reform of medical education to ensure that the medical professionals of tomorrow are aligned with contemporary healthcare needs. This necessitates the development of medical colleges, nursing colleges, and paramedical colleges in all 500 district hospitals across the country, he added.
“However, we urge continued support in fostering a robust ecosystem for private sector participation in healthcare, which plays a pivotal role in supplementing the Government’s efforts. Additionally, initiatives aimed at enhancing medical education and skill development are essential to empower healthcare professionals and improve service delivery,” Moopen said.
The pandemic has accelerated the rapid growth of the healthcare sector, creating a need for extensive learning and development for future specialists. Significant financial investments are necessary to incorporate advanced technology, implement realistic strategies, and foster methodologies driven by research and innovation. Additionally, skilled personnel will be essential for developing the brightest minds in the field. An excellent starting point would be a substantial budget to establish Central Medical Research and Innovation Institutes in every state. This initiative would address issues such as accessibility, equity, and healthcare costs. The creation of a Central Digital Health and AI University would further aid in utilizing technological innovation in healthcare. Moreover, a dedicated university for NRI students should also be established, he said.
We were also hoping for concessions for NRIs residing abroad like reduction on TDS for those who have a source of income in India and are required to pay taxes in the country they reside in, he said.
“Overall, the Budget 2024 sets a positive trajectory for the healthcare sector, and we look forward to collaborating with the Government in realising our shared vision of a healthier and more resilient India,” Moopen said.
Union Budget 2024-25: Expectations from Insurance Industry
Rakesh Goyal, managing director of Probusinsurance.com, said, “The Union Finance Budget is around the corner, and like every time, the insurance industry has certain expectations from the government and the finance minister. These are not new topics or new prospects, but the ones that are in long-standing demand from the industry.”
The first and foremost is the reduction in the Goods and Services Tax (GST) on insurance premiums. Currently, GST on insurance premiums is 18 percent, which is considered high and a deterrent for potential policy buyers. If there is a reduction in GST, it will help the industry in a big way. Secondly, the policyholders should receive higher tax benefits for their medical insurance. We should raise the limit to Rs 50,000 for self, spouse, and children, and Rs 1 lakh for senior citizens. Finally, increase the limits for the Income Tax Act 80C. Right now, Indians get a tax exemption of Rs 1.5 lakh every year, but it’s crowded with various financial products. We would expect the limit to increase or to establish a separate exemption limit specifically for life insurance premiums. This move would help increase countrywide insurance penetration, he added.
Budget 2024 Likely To Push Manufacturing, Automobile
The government is likely to push manufacturing and automobile in the Budget 2024-25, apart from job creation. In PM Modi’s meeting with eminent economists on Thursday, the global value chain (GVC) was also discussed, and talks took place to boost manufacturing in India.
Union Budget 2024 Live Updates: Schemes for Affordable Housing
The real estate sector seeks affordable schemes and a better incentive for affordable housing. “Affordable housing today begins at Rs. 45 Lakhs for 60-90 sq. mt. carpet area for LIG. The government should increase the range with better brackets in metro cities like Delhi and Mumbai. Moreover, the Special Window for Affordable and Mid-Income Housing (SWAMIH) fund with Rs. 50,000 corpus should be included in the upcoming budget for rental housing schemes. The government should think about offering exemptions from property taxes for five years. This would make it easier for developers of build-to-lease and rent-to-own residential developments to raise money by creating a special fund”, Ar. Jaideep Thareja, Founder and Principal Architect at Jaideep Thareja Architects.
Union Budget 2024 Live Updates: A new step for the retail sector
The retail sector can come up with a better solution for progressive momentum in the industry. “Being a wellness and bathroom brand, we expect the government will protect vital industries’ long-term growth while appropriately preserving their flexibility. The budget is expected to guarantee the formulation of the National Retail Policy and provide a financing window reserved for retailers and distributors. Moreover, the tax benefits for middle-income earners could put more money in consumers’ pockets, leading to a rise in retail spending. Further, we expect continued support for e-commerce through policy changes to incentivise digital adoption which could benefit online retailers”, Anil Kumar Ahuja, Founder, Colston.
Union Budget 2024 Live Updates: Budget expected to accelerate financial services and fintech sector reforms
“For India to become a $7 trillion economy financial services and fintech sector has a crucial multiplier role to play. We expect the pace of reforms to accelerate with the upcoming budget. The focus of the reforms has to be on creating more large scale balance sheets, infusing digital and AI in the financial services operating model to drive efficiency, with exceptional focus on governance and risk. Driving better partnerships between fintechs and unlocking more pools of domestic and global capital to fund these balance sheets plus technology will be crucial” says Yashraj Erande, Managing Director and Partner, BCG.
Union Budget 2024 Live Updates: Modi 3.0 budget set to revolutionize fintech sector with innovation and inclusion
As we step into the Modi 3.0 era, expectations run high for groundbreaking reforms in the fintech sector. The upcoming budget is anticipated to fuel innovation, foster financial inclusion, and bolster India’s position as a global fintech powerhouse. We foresee targeted incentives for startups, streamlined regulatory frameworks, and enhanced digital infrastructure. This will attract international investments and democratize financial services, empowering millions across urban and rural landscapes. The government’s commitment to a digital-first economy should translate into policies that encourage the adoption of cutting-edge technologies like blockchain, AI, and cybersecurity. Moreover, special focus on bridging the digital divide and enhancing financial literacy will be crucial. As India advances towards a $5 trillion economy, the fintech sector stands at the threshold of unprecedented growth, driven by visionary budgetary support and a steadfast resolve for a financially inclusive future,” said Rashmi Saluja, executive chairperson of Religare Enterprises.
Union Budget 2024 Live Updates: Manufacturing sector looks to Budget 2024 for technological advancements and policy support
“The policy to encourage the manufacturing sector toward technological advances must befocused on as we look ahead to the Union Budget 2024. We also demand the government offeradvantages for using advanced technologies like artificial intelligence and Internet of Things,which are critical for boosting productivity and competitiveness globally. Policies that lowercapital costs and provide tax holidays for new businesses will also be very helpful in promotingthe sector’s expansion.Infrastructure spending is necessary for simplifying supply chains and increasing operationaleffectiveness, particularly in the field of transportation. Plans aimed at improving skills throughindustry-academia collaborations are required to go alongside this. This will guarantee that ourlabor force is prepared to meet the changing needs of modern manufacturing.The manufacturing sector will be able to succeed in a more favorable climate thanks to theseactions and a focus on lowering operating costs. We hope that these areas will receive theattention they deserve to drive sustained growth and innovation within the sector as we lookforward to the upcoming budget, said Dhawal Gupta, Co-founder of Subhot Enterprises.
Union Budget 2024: Why India Has Two Budgets This Year
India has two budgets this year due to the recent general elections. The Interim Budget, presented before the election, was a temporary measure to ensure continuous government funding until a new government took office. The upcoming Full Budget, to be presented by the newly elected government, outlines the detailed financial plan for the fiscal year, including revenue, spending, and economic policies.
The Interim Budget is a limited version, only covering essential expenses until the new government takes over. In contrast, the full budget is a detailed financial plan, outlining the government’s vision for the entire year. This includes allocations for various sectors, tax proposals, and initiatives to boost economic growth.
Union Budget 2024 Live Updates
Finance Minister Nirmala Sitharaman is scheduled to present the full Budget for fiscal 2024-25 on July 23 which will be the first major policy document of the new government.
