As India stands on the cusp of presenting Budget 2024, industry leaders across various sectors are voicing their expectations and hopes for policies that could reshape the nation’s economic landscape. From finance to real estate, education to technology, stakeholders are calling for reforms that could propel India’s growth story forward.
Financial Sector Seeks Level Playing Field
In the financial sector, there’s a strong push for addressing disparities and enhancing operational efficiency. Akshay Sarma, Chief Financial Officer of axio, highlights several key areas that need attention:
“As we get closer to the upcoming budget, it is important to address the challenges in the finance sector. The dissimilarity in tax treatment of banks and NBFCs must be resolved. TDS exemption under section 194A to NBFCs would mitigate liquidity strains. Similarly, allowing NBFCs to carry forward accrued losses in case of amalgamation or demerger, equivalent to how banks can under section 72A, will facilitate consolidation initiatives in the sector.”
Sarma also emphasizes the need to resolve the issue of double taxation on ESOPs, suggesting, “Collecting the tax at the point of sale of the shares can reduce the burden of cash flow on employees.” He advocates for allowing companies to claim ESOP expenses on an accrual basis in the Income Tax Act.
Furthermore, Sarma points out the potential for boosting digital NBFCs: “Innovation in digital NBFCs can be bolstered with the introduction of tax reliefs and incentives for technology and infrastructure investments.”
Real Estate Sector Calls for Industry Status
The real estate sector, a significant contributor to India’s GDP and employment, is looking for substantial support in the upcoming budget. Ashish Puravankara, Managing Director of Puravankara Limited, articulates the sector’s aspirations:
“As the Union Budget 2024 approaches, we hope the government will continue supporting the growth of the real estate sector, recognising its contributions to India’s economic development. The sector plays a vital role in employment generation and contributes significantly to our GDP. We urge the government to grant industry status, which will help unlock access to funding, boost mid-income and affordable housing, and stimulate economic growth.”
Puravankara also highlights the need for income tax rebates on housing loans, stating, “Given the increase in salaries and interest rates, income tax rebates for principal and interest repayments will go a long way towards boosting housing.”
Technology and Skill Development Take Center Stage
The technology sector is at the forefront of India’s economic transformation, with expectations for policies that will drive innovation and skill development. Sachin Alug, CEO of NLB Services, outlines several key areas for improvement: “Royalty Payments – Indian firms often pay royalties to foreign technology owners for critical expertise. Clear guidelines are needed to regulate these transactions and attract more investment. Leveraging New Age Technologies – The IT sector anticipates policies that promote the widespread adoption and integration of cutting-edge technologies. Enhancing Digital Infrastructure – Investments in broadband connectivity and advanced data centers are crucial for smart cities and e-governance solutions.”
Alug also emphasizes the need for clear definitions in online gaming, skill development initiatives, and measures to boost digital payments and foster AI research.
Education Sector Looks for Innovation and Accessibility
The education sector is calling for reforms that will make learning more accessible and future-ready. Abhimanyu Saxena, Co-Founder of InterviewBit and Scaler, presents a comprehensive vision: “The country’s future hinges on a multi-pronged approach that simultaneously tackles affordability, accessibility, and future-proofing our education system. By strategically investing in rural internet infrastructure and lowering the GST on online education, we can revolutionise equitable access to learning opportunities.”
Saxena highlights the potential of AI in education and calls for government support in developing AI-powered learning tools and implementing teacher training programs. He also advocates for budgetary allocation towards creativity and innovation labs in educational institutions.
Startups and Social Entrepreneurship in Focus
The startup ecosystem, particularly in the social impact sector, is looking for sustained support and new initiatives. Vipul Nath Jindal, CEO and MD of Next Bharat Ventures, A Suzuki Initiative, expresses the sector’s expectations: “We are hopeful for initiatives that will streamline access to patient capital, providing long-term, low-interest funding to entrepreneurs, especially those working in the social impact sector for creating positive change. There needs to be a realignment in terms of policy frameworks and bureaucratic processes to create an ecosystem for these impact entrepreneurs allowing them the time and resources needed to grow their ventures sustainably.”
Jindal also calls for tax-based incentives for investments in the social impact space to stimulate investor interest and drive growth within the sector.
As the nation awaits the unveiling of the Union Budget 2024-25, these industry voices reflect the diverse needs and aspirations of India’s business landscape. From addressing sector-specific challenges to fostering innovation and inclusivity, the expectations are high for a budget that will set the stage for India’s next phase of economic growth and development.
The government’s response to these expectations will be crucial in shaping India’s economic trajectory in the coming years, balancing the needs of various sectors while aiming for overall economic prosperity and inclusivity.
Varun Babbar, Managing Director – India and SAARC, Qlik says:
“As we anticipate the new government under Prime Minister Modi, we expect strong backing for the ‘Viksit Bharat’ initiative—a vision introduced for accelerating the nation’s development and promoting economic inclusivity. This transformation requires placing technology at its core. Prioritizing the adoption of digital technologies across critical sectors, especially governance, will encourage inclusivity and efficiency in delivering social and welfare schemes.”
Adding, “Increased investment in policies that simplify doing business and empower startups and emerging technologies, such as artificial intelligence (AI), is essential. As AI continues transforming sectors like healthcare, finance, manufacturing, and education, implementing proactive measures to ensure its responsible development is crucial.”
“That said, future AI guidelines should emphasize safety, ethical standards, and societal welfare while fostering innovation. Designing AI with a human-centered approach—emphasizing fairness, transparency, and accountability can address ethical concerns and mitigate risks associated with AI misuse, like deepfake technology and job displacement.
These steps are central to driving sustainable growth through data-driven insights and innovation,” Varun Babbar said.