Live Updates on Union Budget 2023: Finance Minister Nirmala Sitharaman is poised to present the final comprehensive budget of the Modi government before the upcoming 2024 Lok Sabha elections.
Live Updates on Budget 2024 Expectations: On February 1, 2024, Finance Minister Nirmala Sitharaman is scheduled to unveil the last budget of the current Narendra Modi government. Given its proximity to the Lok Sabha elections, speculations abound regarding whether it will be an Interim Budget or a Vote on Account. The critical question remains: will significant relief measures be announced for income tax payers and salaried individuals? Speculative discussions surround potential revisions to income tax slab rates for FY 2025, affecting both the old and new income tax regimes. Will efforts be made to make the new income tax regime more attractive to taxpayers? In the previous year’s budget, FM Sitharaman implemented substantial changes in the new income tax regime, now the default tax structure. Additionally, a historic capital expenditure was announced to stimulate economic growth. Stay tuned to Mint Online for live coverage of Budget 2024 expectations across various sectors.
Budget 2024 Expectations Live: A major focal point for the Government continues to be affordable housing
Sandeep Runwal, President of NAREDCO Maharashtra, underscores the real estate industry’s crucial role as the second-largest employment generator and highlights its potential for transformative changes in the economy. As the sector anticipates the 2024-25 budget announcements, it looks forward to measures that could significantly impact its trajectory. Runwal acknowledges the reforms and incentives introduced by both Central and State governments in the previous year to boost economic growth, emphasizing the sustained momentum in the real estate sector.
Budget 2024 Expectations Live: EV sector on Battery swapping policy
R K Misra, Co-Founder and President – Ecosystem Partnerships at Yulu, emphasizes the need for a National Battery Swapping Policy, providing clarity on incentives, taxation, certifications, and network expansion. The company sees this policy as crucial for enhancing investor confidence. Yulu also advocates for a GST reduction (to 5%) on Li-ion battery packs used by Battery as a Service (BaaS) operators, aligning it with the tax rate for battery-fitted Electric Vehicles (EVs). Furthermore, Yulu calls for a reduction in GST on transactions related to EV charging and battery-swapping from 18% to 5%, aiming to benefit price-sensitive retail customers and foster the growth of institutional setups for charging and battery management.
Budget 2024 Expectations Live: Online gaming players seek long-term clarity and a progressive taxation regime
“The online skill gaming industry has experienced significant growth in recent years. With proper regulatory backing, this sector not only has the potential to establish a thriving ecosystem for gamers and game developers but also to showcase the excellence of Made in India games on a global scale,” stated Namratha Swamy, Chief Operating Officer of MPL.
“The industry eagerly awaits comprehensive clarity and a forward-looking taxation framework in the upcoming financial budget. This clarity is vital for driving the next phase of growth, fostering a conducive environment for businesses, and restoring investor confidence in the sector. A progressive taxation regime will further encourage investments, resulting in the creation of more job opportunities for our talented youth,” Swamy added.
“Moreover, we are optimistic that the budget will pave the way for the introduction of dedicated gaming courses. These courses will play a crucial role in nurturing the next generation of game developers and professionals, ensuring a steady supply of skilled talent to propel the industry’s growth,” he further emphasized.
“I am looking forward to the upcoming financial budget with optimism, believing that the right policies and government support will propel the online skill gaming industry to greater heights, ultimately benefiting the economy in our journey towards making India a $5 trillion economy,” Swamy concluded.
Budget 2024 Expectations Live: Tourism expert calls for policies and incentives that help to enhance travellers
“We hold a positive outlook on the potential impact of government-led economic measures aimed at improving India’s travel and hospitality infrastructure. The implementation of initiatives such as the establishment of new airports, the development of additional terminals at existing airports, and the expansion of flight routes, along with the increasing popularity of domestic destinations, unveils significant opportunities in India,” stated Sumit Prakash, Country Director for India and South Asia at Collinson.
“Since the resumption of travel last year, there has been a noticeable increase in the value placed by Indian travelers on their travel experiences, as well as the associated rewards and benefits. Policies and incentives that contribute to enhancing the overall travel experience can effectively provide a considerable boost to the sector,” Prakash added.
“Businesses now find themselves presented with numerous opportunities to capitalize on the growth in the travel industry. By crafting robust, travel-experience-focused customer engagement propositions, companies can actively engage and foster stronger relationships with their most valued customers,” Prakash emphasized.
Budget 2024 Expectations Live: Education sector calls for a review of 18% GST on education services
“In anticipation of the Interim Budget 2024, our expectations revolve around promoting startup growth and establishing a robust policy framework for a sustainable ecosystem. We advocate for a reassessment of the 18% GST on education services to alleviate financial burdens and encourage research and development in the education sector. This budget should prioritize skill development and address the crucial recognition of online degrees, enhancing the credibility and overall operations of EdTech firms,” stated Akshay Munjal, Founder & CEO of Hero Vired.
“We also look forward to comprehensive support through priority-sector lending, facilitating expansive growth for both traditional and modern education. To build a digitally proficient and futuristic educational system, it is essential to accelerate technological adoption in order to boost the skilling industry. Seamless access to funds is equally critical in this pursuit. The budget’s potential to invigorate the EdTech sector lies in expediting innovation, improving accessibility, and fostering inclusivity through policies that create a harmonious environment for sustained progress,” Munjal added.
Budget 2024 Expectations Live: Expert expects NHAI to reduce borrowing and therefore road development project costs
India is poised to achieve a real GDP of USD 4 trillion in 2024. The upcoming union budget for 2024 is expected to sustain the ongoing infrastructure spending momentum. The complete budget, scheduled for July, is anticipated to witness a fiscal expansion. Anticipating a greater approved budget for the National Highways Authority of India (NHAI), I foresee a reduction in borrowing and subsequently lower costs for road development projects.
Furthermore, I expect an increased allocation for the domestic manufacturing of railway coaches catering to Amrit Bharat and Vande Bharat trains, as well as the enhancement of railway stations, airports, and ports. Alongside a potential interest rate cut by the Reserve Bank of India (RBI), this budget is set to be part of a comprehensive series focused on transforming India’s manufacturing and infrastructure sectors, while also driving the country’s transition towards green initiatives.
The startup revolution in India has gained significant momentum, with a select few matured startups reaching a stage where they can go public. Founder & CEO of Moglix, Rahul Garg, suggests that the Finance Minister may want to consider streamlining the regulatory framework for Initial Public Offerings (IPOs), enabling startups to leverage the strength of India’s equity markets. Garg is optimistic about India comfortably achieving a 7% real GDP growth rate.
Budget 2024 Expectations Live: What Indian startup seek
“If properly nurtured, the Indian startup sector holds the potential to significantly boost commerce within the country, enhance people’s lives, and expedite India’s internet economy journey to reach $1 trillion by 2030. Despite the early initiatives establishing India as the third-largest startup ecosystem, the decisive actions taken now will shape the growth trajectory for the next decade,” stated Nitya Sharma, Founder and CEO of India’s leading Checkout Network, Simpl.
Sharma continued, “In this year’s Vote on Account, followed by the full year’s Union Budget, it is crucial to recognize startups as the sunrise sector. Providing accessible financing for sellers similar to MSMEs and exploring new opportunities in the Unbundling of E-commerce era, starting with ONDC, is essential. We anticipate increased collaboration between the government and industry to further simplify the Ease of Doing Business in India and swiftly address bottlenecks.”
Budget 2024 Expectations Live: Travel, tourism and hospitality industry wishlist
“The travel, tourism, and hospitality sector stand as a significant contributor to India’s GDP. Recognizing this, the Government of India has consistently prioritized the industry’s growth in previous budgets. This commitment involves a comprehensive strategy focusing on enhancing air, road, and rail infrastructure, particularly emphasizing last-mile connectivity. Additionally, efforts include upskilling the human resources within the sector and facilitating financial opportunities for small and medium-sized enterprises,” noted Pranav Dangi, Founder & CEO of The Hosteller.
“As the government looks ahead, there is an expectation for continued and substantial improvements in these areas to sustain the industry’s overall growth momentum. The industry plays a vital role in realizing India’s vision for 2047, necessitating immediate measures. These include promoting inclusive growth, especially for women, advancing infrastructural and technological capabilities, and considering a reduction in GST rates to align with the 5-6% rates prevalent in Southeast Asian countries. Furthermore, establishing a streamlined, single-window clearance approval system for licensing will expedite the development of the hotel industry, encouraging the addition of more inventory to address the supply-demand gap,” Dangi added.
Budget 2024 Expectations Live: What does Crypto, and digital payment sectors’ expert expect?
“Fintechs and regulators are increasingly collaborating to enhance stability and standardization for legitimate companies, fostering greater trust in the ecosystem. The prevailing consensus is that cooperation and partnerships, rather than competition, serve as the catalysts for driving financial inclusion. The integration of smarter, safer digital solutions, coupled with responsible business models, is expected to streamline and secure the credit acquisition process, mitigating the risk of fraud. Self-regulatory organizations (SROs) are poised to address specific issues within the sector, propelling it towards its maximum potential. The online credit industry is actively seeking stronger connections with digital banking units (DBUs) and aims to expand UPI for digital lending,” stated Kunal Varma, CEO, and Co-founder of Freo.
According to Varma, “The introduction of credit on UPI is poised to facilitate innovative sachet credit offerings, rendering small-ticket lending more efficient and affordable. This initiative holds the potential to revolutionize the accessibility of affordable credit, reaching the last mile and spanning diverse customer segments. Simultaneously, it presents an opportunity for industry players to showcase their adaptability and evolution in response to emerging challenges.”
Budget 2024 Expectations Live: Will more deductions for home loans, boost affordable housing?
“Raising the limit on tax deductions would enhance the appeal of home loans, effectively lowering the overall borrowing cost for prospective home buyers. This has the potential to generate an uptick in demand for affordable housing, thereby stimulating growth in the construction and real estate sectors and triggering a positive economic ripple effect. A heightened tax rebate would place more disposable income in the hands of the primary target audience for budget housing, providing a significant boost not only to the housing and real estate industry but also to related sectors. Kunal Varma, CEO and Co-founder of Freo, remarked, ‘This measure not only uplifts the housing and real estate sector but also exerts a positive influence on ancillary industries, contributing to a substantial sentiment boost.’
Varma also addressed the recent increase in home loan rates, attributing it to factors such as central bank interest rate hikes. He noted that the average home loan customer is currently facing higher interest payments compared to a few years ago, coupled with the rising cost of homes due to increased commodity prices like steel and cement. In light of these challenges, Varma expressed approval for the proposed tax deduction increase, emphasizing that it would translate into additional savings for consumers.”
Budget 2024 Expectations Live: Fintech expert calls for dedicated ecosystem
“We anticipate that the Interim Budget of 2024 will acknowledge the opportunities and obstacles within the FinTech sector and establish a supportive environment to foster its growth. VoloFin is committed to sustaining the expansion of exporters, spanning from small and medium enterprises (SMEs) to large corporations, across various industries and geographical locations. Leveraging our advanced technology platform, we provide instantaneous liquidity without the need for collateral. We express the hope that the government will actively encourage the adoption of trade financing, streamline tax and compliance regulations, and champion the digitization and innovation of financial services,” stated Roshan Shah, Co-founder & CEO of VoloFin.
Budget 2024 Expectations Live: ONDC calls for regulatory certainty with respect to GST and TDS compliances
“The upcoming budget holds significant importance for the ONDC ecosystem, encompassing small startups, MSMEs, and large businesses nationwide. As India strives towards ambitious goals of inclusive digitization and substantial growth, we anticipate further measures to facilitate business operations, particularly for small enterprises aiming to embrace digital transformation,” shared an ONDC spokesperson.
“We applaud the Government’s strides in establishing regulatory clarity concerning GST and TDS compliance for ONDC Network Participants. Such initiatives are crucial for the thriving small businesses and startups on the Open Network. We eagerly anticipate the continuation of such efforts and initiatives to enhance regulatory certainty in other sectors as well,” they added.
“Furthermore, the commendable ongoing modernization and digitization of logistics infrastructure, exemplified by initiatives like PM GatiShakti and the National Logistics Policy, are noteworthy. A robust logistics framework will empower MSMEs and startups, enabling them to fully capitalize on the opportunities presented by India’s Digital Public Infrastructure, such as the ONDC Network,” they further emphasized.
Budget 2024 Expectations Live: Auto sector expects innovative policies to accelerate sustainable mobility
“The budget from the previous year laid the groundwork for increased adoption of electric vehicles (EVs) in India, leading to a significant shift in consumer perspectives towards making more environmentally friendly and intelligent choices. With the growing influence of marketplaces and digitization in India, the nation is evolving into a convenience-focused society, setting noteworthy global standards. As a publicly listed company, Zoomcar anticipates that the Union Budget for 2024 will introduce innovative policies aimed at expediting sustainable mobility solutions. These policies are expected to contribute to economic resilience, offering customers cost-effective solutions and mobility apps that support the ongoing transformation of the transportation sector within the automobile industry,” stated Greg Moran, CEO and Co-Founder of Zoomcar.
Budget 2024 Expectations Live: What housing expert has to say?
“We are hopeful about the potential for positive changes in the budget, particularly in the affordable housing sector, during this election year. There is an opportunity for the government to reassess and update the current limit of 45 lakhs for affordable housing. Given the rise in property prices in recent years, a thoughtful adjustment of this limit, perhaps to 60-65 lakhs, could open up possibilities for the expansion and increased availability of affordable homes. Such an adjustment has the potential to significantly contribute to making housing more accessible and meeting the needs of a broader segment of the population. While major budgetary changes may not be anticipated in other areas, there is optimism for positive developments in the field of affordable housing,” expressed Nagaraju Routhu, CEO of Experion Developers.
Budget 2024 Expectations Live: Spiritual tourism to be in focus, says expert
“The travel and tourism sector experienced an exhilarating year, particularly with the government’s increased emphasis on bolstering both domestic and inbound travel. India is poised to become the world’s fastest-growing aviation market in the next decade. The upward trajectory of domestic air travel from tier 2, 3, and 4 cities is promising, and we anticipate continued budgetary allocations for infrastructure, technology, and safety measures at both existing and new airports in these cities under the UDAN scheme,” stated Aloke Bajpai, Co-founder & Group CEO of ixigo.
“This year, spiritual tourism takes center stage, with expectations of additional measures to enhance infrastructure and accessibility, including last-mile connectivity in spiritual and cultural hubs across India. The Indian Government’s proactive development of religious destinations and pilgrimage centers to promote spiritual tourism under the Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive (PRASAD Scheme) has resulted in a significant transformation in Varanasi’s tourism sector. This transformation is primarily attributed to the revitalized Kashi Vishwanath corridor and the Central government’s renewed commitment to promoting religious tourism. Since its opening in December 2021, Kashi Vishwanath Dham has attracted an unprecedented 100 million visitors, a remarkable increase from the previous 8 million visitors,” he added.
“Similarly, with the recent inauguration of the Ram Mandir in Ayodhya and the launch of the new Ayodhya airport, it is anticipated that Ayodhya will witness a similar surge in visitor numbers. These initiatives will undoubtedly enhance connectivity in regions where trains or buses may be the primary modes of transportation. Additionally, given that aviation turbine fuel (ATF) constitutes a significant portion of operational costs for airlines, any waivers or support for the airline sector would greatly benefit the industry. Reducing the Aviation Turbine Fuel (ATF) cost to pre-pandemic levels presents significant opportunities for India’s aviation sector and is a crucial factor in improving air travel accessibility,” explained Bajpai.
Budget 2024 Expectations Live: Textile sector expectations
“As we approach the upcoming 2024 Union Budget, Greaves Cotton envisions a thoughtful approach from the Government, aiming to strike a balance between fiscal responsibility and strategic investments to drive economic growth. The company anticipates not only social welfare initiatives for improving the well-being of the populace but also expects measures to stimulate consumption and create a conducive environment for both private and corporate investments in the economy. As a major player in engineering, Greaves looks forward to a sustained emphasis on transforming India into a manufacturing hub, increased investments in infrastructure development, and ongoing policy support for emerging industries such as fuel-agnostic and clean mobility, electronics, and sensors. Nagesh Basavanhalli, Non-Executive Vice Chairman of Greaves Cotton Ltd, expressed these expectations, emphasizing the need for India to leapfrog into the future.”
