Unveiling India’s economic pulse! A glimpse into demands and expectations from key sectors

“The organized jewelry retail segment is growing at a steady pace, thanks to regulatory reforms such as the mandatory hallmarking of gold jewelry and GST. However, to unlock the potential of the organized jewelry retail segment, the budget needs to propose a reduction in the import duty on gold. A higher gold import duty is detrimental to the growth of the organized jewelry retail sector, as it indirectly promotes gold smuggling and unauthorized grey market transactions. The budget also needs to propose measures to control unaccounted business practices by implementing effective tax compliance and transparency mechanisms. The interim budget should also propose measures to create a broader pathway for growth for the organized jewelry retail segment,” says M. P. Ahammed, Chairman, Malabar Gold & Diamonds

Nimish Trivedi, CEO & Co-Founder, Evera:

“Experiencing a surge in EV demand across the segments of hybrid cars, EV battery demand, development, and regulatory movement, the Indian EV industry will move towards its PLI-centred goals of becoming a self-sufficient supply mammoth for 2, 3, and 4-wheeler electric vehicles. The budget 2024 should continue the existing concessional rate of import duties on lithium-ion cells, to reduce the capex cost of purchasing an EV. Aligning with the government’s ₹18,000 crore production-linked incentive scheme for advanced chemistry cells, targeting a 50GWh capacity. Compounding on this, the second phase of the FAME policy, enabled an EV subsidy of 15% of its cost. The cost of EV made at par with ICE, rising consumer sustainability conscience, and an increasingly interconnected EV ecosystem, will continue to gain momentum in the interim budget 2024.

Major automotive players are strategically investing in India‘s electric vehicle market, with plans for production, substantial investments, and collaborations to establish a robust electric mobility ecosystem. This shall incentivize foreign OEM players to produce in the Indian market, positively raising competition for local manufacturers. The 2024 budget presents a strategic opportunity to pave the way for stakeholders to execute decade end targets of 30% decarbonized mobility in the entire nation.”

Amit Lakhotia, Founder & CEO, Park+ :

“Indian cities are evolving at a rapid rate- migration, infrastructure upgrades 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 4cr+ vehicles on Indian roads today, we need to ensure that real estate players, auto-tech startups, EV 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, create smart traffic management systems, build EV charging stations, ensure better driving behavior, and reduce road accidents. I look forward to seeing the government expediting its initiatives to build smart cities of the future.”

Nikhil Aggarwal, Founder & CEO, GRIP Invest:

“The GoI has focussed heavily on infrastructure building, both digital and physical as a way to enable faster, sustainable and more equitable growth of the economy. We expect the same focus to remain on all assets like roads, airports, ports and railways.

The government is also successfully capturing the growing desire to manufacture in India, both for the growing domestic demand but also as a diversification from China. This is also important to create more employment opportunities. We expect the budget to provide incentives for further establishment of manufacturing facilities esp by global companies. Given India’s commitment to its Climate goals as well as reducing the dependence on importing petroleum, we expect further incentives for the growth of the EV industry and ancillary industries around battery manufacturing. Access to capital, both for the government and private sector, will be critical for achievement of these goals. We hope the budget provides more opportunities for capital to become available not just to the largest corporates but also SMEs who have to play a critical role for a balanced growth of the country.”

Rohet Ramesh, Director, Layam Group:

“The next budget for the fiscal year 2024-2025 is expected to introduce significant amendments to labour regulations, with a focus on promoting employment opportunities, enhancing social welfare, and safeguarding workers’ rights. The government’s unwavering commitment to rejuvenating the industrial sector and enhancing infrastructure is evident through notable initiatives as the Production-Linked Incentive (PLI) Scheme and PM GatiShakti for multi-modal connectivity. Significant investments should be allocated towards the development of urban entrepreneurial infrastructure as it can facilitate accessibility and collaboration across all boundaries and enhance resilience against unforeseen disruptions.

The budget may have targeted incentives for certain sectors to stimulate investment, foster job creation, and promote industrial expansion. These incentives can be reinforced by increased allocations for skill development programmes, incentives for job creation in the informal sector, and promotion of equitable and stable working conditions. Given the current growth of the digital economy, it is reasonable to expect that the Digital India efforts will continue to garner significant interest. Furthermore, the budget is expected to allocate funds to support crucial healthcare programmes such as the Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) and social security initiatives like Pradhan Mantri Shram Yogi Maan-dhan (PM-SYM), with the aim to safeguard the well-being and security of workers and their families.”

Dinesh Arjun- Co founder and CEO at Raptee Energy

As the electric vehicle (EV) industry gears up for substantial growth in the coming years, it is imperative for the government to foster a supportive ecosystem. To stimulate investment opportunities, there should be encouragement for potential investors, coupled with essential reductions in GST rates for electric vehicles and charging stations. Additionally, easing the burden on the industry can be achieved through a decrease in import duties on electronic components. The industry is particularly hopeful for a significant GST reduction, aiming to bring it down from 18% to 5% specifically for lithium-ion battery packs and cells, given their pivotal role in the EV sector. A concerted effort in the budget towards enhancing the ease of doing business and facilitating the entry of local players into the market is crucial. Addressing aspects like component localization and ensuring easy access to necessary components will empower Indian companies, both large and small, to develop competitive products at competitive prices, further solidifying the sector’s growth potential.

Narayan Karthikeyan, Founder & Managing Director, DriveX:

“As we anticipate the Interim Budget 2024-25, we recognize the pivotal role it plays in shaping the economic landscape, particularly for the two-wheeler auto industry. The potential benefits that could arise from individual taxation reforms hold promise for our industry. With the government’s focus on stimulating consumer spending, the possibility of tax incentives or reductions could significantly boost the demand for pre-owned two-wheelers.

Furthermore, we look forward to potential initiatives in the budget that encourage sustainable practices within the automotive industry. Our commitment to quality refurbished vehicles aligns seamlessly with the vision of a resilient and progressive two-wheeler auto industry. With an eye on the budget, we remain optimistic about collaborative measures that will propel our industry forward.”

Samarth Kholkar, CEO and Co-Founder, BLive:

“The anticipation is that the government will incorporate the Electric Vehicle (EV) sector into Priority Sector Lending (PSL), facilitating more accessible financing options for both personal and commercial electric vehicles. Additionally, there is a hopeful outlook for policy initiatives aimed at advancing EV adoption. This includes the extension of subsidies to enhance the affordability of electric vehicles and the implementation of incentives for conversion kits, encouraging the transformation of Internal Combustion Engine (ICE) vehicles into Electric Vehicles (EVs).”

Girishkumar Kadam, Senior Vice President & Group Head – Corporate Ratings, ICRA Limited:

“During FY2024 the GoI has cut LPG prices and the industry’s expectation is for an adequate budgetary provision owing to volatility in crude oil prices. The Government had imposed special additional excise duty (SAED) on crude oil and certain refinery products w.e.f. July 1, 2022. Although it has revised SAED multiple times, these taxes have pared the profitability of upstream companies and refiners. With the softening of crude prices and reduction in GRMs, the industry has been demanding that the SAED be discontinued. Also, liquified natural gas (LNG) imports attract customs duty of 2.5%. Exempting LNG imports from customs duty like crude, which attracts nil duty, would promote the use of natural gas as a fuel.”

Shashank Srivastava, Senior Executive Officer, Marketing & Sales, Maruti Suzuki India:
“We may not see large announcements being made as it is the Interim Budget. We do hope that the policies with respect to capex, infrastructure and manufacturing will continue. These will aid the auto companies. Additionally, we expect incentive policies like FAME and PLI schemes will continue.”

Ankur Gupta, Practice Leader – Indirect Tax at SW India:

The interim budget will be voted on account so we might not see any major announcements from the Finance Minister. However, we might see some announcements towards ease of doing business. With GST collections showing healthy growth, the Government can consider enhancing the threshold for GST registration to 40 lacs which currently is at 20 lacs. Further, while the GST council had proposed to make ISD mandatory for the distribution of credit, so we might see changes in GST legislation related to that. Further, on the customs front, there is a dire need to digitalize the process to verify the certificate of origin under FTA / PTA which will save time and effort for importers claiming benefits under FTAs / PTAs.

Saurrav Sood, Practice Leader – International Tax and Transfer Pricing at SW India on:

Rationalisation of withholding tax rate for payment to Non-residents towards Royalty & fees for technical services. The rate of withholding tax was increased from 10% to 20%, however, considering that these are common services that Indian companies receive from non-resident service providers and often the non-residents expect the withholding tax to be borne by the payer, it becomes an additional burden on the Indian payers.

Push for streamlining Advance Pricing Agreements. At present such agreements have a long gestation period and due to this the push for adopting them as an alternative becomes less attractive. Therefore, a time-bound process can be incorporated so that this becomes a preferred alternative to reduce transfer pricing litigation

Extension for timelines to opt for beneficial tax rate provisions by manufacturing companies. The present timeline to commence manufacturing ends on 31st March 2024, which should be extended for the companies so that the beneficial corporate tax rate of 15% is available to be opted for.

Provide tax incentives to companies who adopt AI tools from local software companies in India. This will help in promoting local AI development and increase the reach of technology.

Sachin Sharma, Founder and Director – Gem Enviro Management Limited:

In the preceding year’s budget, the government strategically positioned ‘Green Growth’ as a pivotal focus within the comprehensive ‘Saptarishi’ framework, allocating a substantial Rs 35,000 crore for priority capital investment to achieve net zero emissions by 2070. Despite these commendable initiatives, challenges persist in effectively streamlining waste management processes, notably in handling plastic waste. In anticipation of the upcoming budget, industry stakeholders are optimistic about the prospect of a revision in the 18% GST on plastic input material, reverting to the previous rate of 5%.

Furthermore, with climate action occupying a central position in India‘s G20 agenda and the notable Green Credit Initiative taking center stage at COP28, the government’s unwavering commitment to sustainable growth and effective waste management is unmistakable. However, there exists a compelling opportunity to amplify support for the recycling of plastic and e-waste management industries, a move that could substantially strengthen and propel these sectors toward heightened sustainability. As the nation looks forward to the forthcoming budget, stakeholders eagerly anticipate targeted measures that will not only reinforce the foundations of the waste management ecosystem but also align with the broader aspirations of a greener and more sustainable India. The nation’s waste crisis necessitates immediate intervention. Governments should consider allocating funds for advanced waste management solutions, such as waste-to-energy plants, enhancing waste management infrastructure, optimizing supply chains, and providing incentives for businesses to adopt sustainable practices”.

Swapnesh R Maru, Deputy Managing Director – Corporate Planning, Finance & Administration and Manufacturing, TKM:

“Looking ahead, policy stability and continued emphasis on spurring investment and infrastructure development will not only further enhance country’s global competitiveness but also lead to growth of the manufacturing and service sector, improve supply chain efficiencies and generate higher employment thereby leading to social gains. We remain confident that the Government will continue its push towards shifting the economy and transportation sector to a greener future that is less dependent on fossil fuels and include cleaner energy options that are best suited for our country’s requirements at scale and in the fastest possible manner. This includes policy support to various technologies that utilizes natural and indigenous energy sources such as solar, wind energy, biofuels like ethanol and biogas that will help in the creation of economic wealth within the country there by minimizing our import dependency and arresting economic vulnerability.”

Kunal Gala, Partner, Deal Value Creation, BDO India: “In anticipation of India’s 2024 budget, expectations are high for impactful economic shifts. Key forecasts suggest a strategic cut in corporate tax rates, aiming to reduce the fiscal deficit to 5.2% of GDP in FY25. There is a strong focus on greener fuels aiming to revolutionize the energy sector. Additionally, targeted support for microfinance institutions is anticipated, enhancing their reach and stability. As elections approach, the budget is expected to include prudent populist measures, striking a balance between economic strategy and voter appeal.”

Marzban Irani – CIO, Fixed Income at LIC Mutual Fund Asset Management:

mop-up”The upcoming Budget will be an interim budget since this year being the election year. Normally, we do not expect any path-breaking policy announcements in an interim budget. But there is always scope for unconventional moves.

From the debt market perspective, the Centre is on course to meet the current fiscal’s (FY24) deficit target of 5.9% on higher GST/ direct tax mop up. But any extra spending for popularity due to political compulsions will make it tough to meet the target of 5.3% next fiscal (FY25).

The issue of demand-supply mismatch of Central and state government bonds is not in focus now. The Centre aims to borrow a gross Rs 15.43 lakh crore through the sale of bonds in FY24. Net borrowing is pegged at Rs 11.81 lakh crore.

In my view, the Centre should try to adhere to the fiscal deficit target as it gives a clear signal to global investors. The G-Sec is getting listed on global indices now. The government might announce popular measures before the general election. Although the supply looks similar to last year’s, demand is also strong.”

Ramneek Singh Ghotra, Chief Growth Officer, Finvasia Group: The previous budget introduced strong women-centric policies, including Free Skill Development, Beti Bachao Beti Padhao, and Digital Skilling Initiatives amongst others. As we approach Budget 2024, I anticipate continued progress, emphasizing economic opportunities, social safety nets, and health-centric empowerment. I hope for a more robust focus on skill development, rural entrepreneurship, and improved access to capital for women. Strengthening social security, enhancing safety, and prioritizing accessible healthcare and financial inclusion will contribute to a more positive and empowered society.

Raghunandan Saraf, Founder and CEO of Saraf Furniture, emphasizes the importance of maintaining a balance between necessary restrictions and avoiding excessive limitations that could hinder investor interest. He suggests incorporating efficient sunset clauses, seamless dispute resolution mechanisms, and eligibility criteria linked to production milestones in the budget. Saraf advocates for incentives tied to specific benchmarks rather than enforcing strict local sourcing levels initially.

Tejpal Singh Shekhawat, founder, and CEO of Kalyanam Furniture, underscores the impact of the PLI initiative, stable policies, rapid digitization, and the China plus one realignment in positioning India on the global manufacturing map. He recommends scaling existing schemes for electronics and solar cells while introducing new schemes for toys, shipping containers, and machine tools with attractive incentives to enhance cost competitiveness.

Amrit Acharya, CEO & Co-founder at Zetwerk, asserts that India‘s manufacturing potential is at a pivotal juncture, urging the formulation of a bold 25-year vision beyond the ‘Make in India‘ initiative. He advocates for investments in research and development, adoption of cutting-edge clean technologies, and robust skilling programs to create a self-reliant ecosystem. Acharya emphasizes collaboration between established manufacturers and new-age companies to unlock the full potential of innovation and achieve higher growth in manufacturing.

Mr. Sanjay Gupta, Chairperson of IESA: We have high hopes for the upcoming budget. This year should mark the next phase of growth for the semiconductor industry in India, focusing on unleashing the untapped potential of Indian entrepreneurs who are keen to pursue semiconductors and the embedded ESDM sector. They face four major entry barriers: high employee cost, high EDA cost, high fabrication cost, and high validation cost. These barriers hinder the exploration of the true potential of entrepreneurs in the semiconductor design space. Although the design-linked incentives launched last year were a welcome step, there is a need for a massive focus on providing risk capital to deserving startups, either through VC partnerships or direct government support. This will accelerate the semiconductor startup journey from India and enable them to compete globally and make a name for themselves and the country in the semiconductor design fab lab space.

Mr. Atul Thakker, Managing Director – Minosha India Ltd:

“As we anticipate the upcoming Union Budget 2024, our expectations are aligned with the current global economic landscape. We foresee stability in corporate tax rates, considering that India’s corporate tax rates are already in harmony with global standards. This consistency provides a conducive environment for business growth and international competitiveness. In the realm of personal income tax, we anticipate a positive move with an increase in tax rebates under the new regime. This foresight is driven by the potential for heightened personal consumption, fostering economic momentum and individual financial well-being. The government’s commitment to fostering indigenous industries through schemes like PLI and Make in India, particularly in the IT and Tech sectors, is commendable. We look forward to the Budget building upon these initiatives, creating an ecosystem that propels innovation and self-reliance. In the context of international trade, we expect a thoughtful rationalization of import and export duties, taking into account existing and proposed Free Trade Agreements (FTAs). This strategic approach will further enhance India’s global trade partnerships and economic resilience. It’s essential to acknowledge that Budget ’24 is an Interim Budget. While major proposals may not be expected due to the impending parliamentary elections, we anticipate a forward-looking stance that sets the stage for post-election economic policies. As stakeholders in the nation’s progress, we eagerly await a budget that not only addresses immediate needs but also lays the groundwork for a robust economic future.”

Amit Prasad, Founder and CEO, SatNav:

“The IT sector foresees the 2024 Union Budget emphasizing digital infrastructure investments and providing incentives for research, skill enhancement, and nurturing innovation hubs. Hopes encompass augmented funding for cybersecurity, backing for cutting-edge technologies such as AI, IoT, and 5G, and revisions in tax policies to stimulate IT exports. Streamlined regulations for startups and increased focus on digital education initiatives are also expected. The industry aims for a favorable climate supporting growth, emphasizing improved business processes and global competitiveness, intending to solidify India‘s standing as a leading force in the global tech arena.

The Government should proactively promote incentives for Educational institutions to diversify their programs and for IT Product companies that can fill the imminent gap that will arise. Also, the accounting laws for IPR valuation can also be further clarified to help companies show that investment in the balance sheet rather than the practice for all investment to be written off without any benefit, showing up as accumulated losses. Valuing IPR can also help to raise funding and loans from banks as the networth and reserves would then be favorable.”

Amit Relan, Co-Founder and CEO, mFilterIt says, “Last year’s Union Budget had a significant mention of the advancements in technology and fostering the digital economy. For the upcoming budget announcement, we are expecting a significant share of focus on critical issues concerning data protection, cybersecurity, and digital infrastructure.

With the introduction of the data protection bill, we are expecting to see stride movements in the regulation of data privacy aligning with global standards, a cohesive policy framework to protect user privacy and also stimulate innovation in the digital economy. Alongside privacy and protection, we expect to see some wave movement around emerging technologies like AI and the nation’s take on leveraging its power to empower further digital advancements.

Focus on innovation and protection will strike the ideal balance to foster the digital infrastructure of the nation.”

Saurav Kasera, Co-Founder, Clirnet said, “The Union Budget holds the potential to revolutionize healthcare accessibility in India‘s remote areas. Ongoing training and upgradation for all healthcare professionals are vital to a patient-centric system. A blend of incentives to make healthcare training more affordable and accessible can hold the key. These could include bringing healthcare education under a special GST category with lower or nil rates (currently no set off available as medical services carry Nil GST), offering deductions in direct taxes for healthcare training expenses, and providing financial benefits/grants to institutions offering such training. Moreover, enhancing budget allocations for digital health infrastructure and telemedicine will ensure that quality healthcare reaches every corner of the country.

Together, these initiatives promise to build a more robust, inclusive, and skilled healthcare workforce in India, ultimately leading to improved patient care and health outcomes across the nation.”

Sulajja Firodia Motwani, Founder and CEO of Kinetic Green:

As we welcome the Union Budget 2024-2025, we are optimistic that the GoI will announce continued support to support demand for EVs with the announcement of FAME III scheme. FAME scheme of GoI has been instrumental in reducing the price differential between EV and ICE vehicles, and thereby spurring demand from customers for EVs. This scheme has been the most successful demand generation incentive and the success of it can be seen in growing interest in and adoption of electric 2W and electric 3W from customers across the country. With help of Fame II, a large number of electric buses have been ordered and deployed in our cities, thereby reducing the menace of pollution.

Thus, the most important expectation and demand from EV sector in the Union Budget 2024 is the continuation of demand incentive schemes for EVs with FAME III scheme. We strongly feel that if FAME II demand incentive scheme is suddenly discontinued in March 2024, there by leading to a significant increase in prices of EVs, it will lead to reduction of demand and as a country, we will lose momentum we have garnered towards a rapid transition to green transport. It may also lead to higher imports and loss of gains in Make in India for electric vehicles and their components. A clear and consistent demand generation roadmap is critical for continued and enhanced investments in e-mobility.”

Saloni Verma, Co-Founder and chairperson , Sunshine Corporate Creches:

The Maternity Act 2017 made it mandatory for company with 50+ employees to provide creche services to their employees, 6 months of paid maternity leave also became the law at the same time. While intentions in both clauses are good, it would help if the Government came up with some financial incentives for companies of smaller size to help them pay salaries of those on maternity leave and then set up creches for them. Thus, the risk of married young women not getting hired would go away as it can adversely affect the already skewed female ratio in most companies because initial trends already show that smaller companies are wary of hiring those who are likely to get married soon or those who have been recently married because they cannot simply afford the 6 months of paid leave and then bear the cost of creche services.Anticipation for the Union Budget 2024 includes hopes for increased allocation to education, prioritizing technology integration, and enhancing infrastructure. Stakeholders expect measures to address skill development, promote research, and reduce the digital divide. Calls for incentivizing innovation, boosting online learning resources, and ensuring affordable education resonate. Transparent policies and sustainable funding are key expectations.

Jyoti Bhandari, Founder and CEO, Lovak Capital:

The previous year’s budget highlighted the importance of women’s economic empowerment, recognizing their significant role in fostering a dynamic economy. Budget 2024 should prioritize skill training, especially for young women in Bharat, offering vocational programs after class 12. Further it should meet its promise to encourage the evolution of “Lakhpati Mahilas” from Women’s Self Help Groups. This shift would not only catalyze rural economic growth but also secure substantial growth in SHG networks. The growth of successful women entrepreneurs from these groups must also be encouraged by aiding the transition of their enterprises into larger value chain-focused producer organizations. Focusing on the role of women in agriculture and exploring their potential contribution to various non-farm sectors will also empower women across Bharat, contributing to India‘s goal of becoming a global economic force. Budget 2024 holds the potential to create a more inclusive and prosperous future for women in the country.

Mazhar Syed, Director, AsmitA India Realty: “The industry looks to the Finance Ministry with optimism, particularly in response to the plea for a hike in the tax slab to Rs. 5 lakhs per annum for interest rate deduction under section 24(b) of the Act, up from the current Rs. 2 lakhs for home buyers. With metro city property prices reaching unprecedented levels, industry stakeholders call for a revision in the credit link subsidy scheme. Advocating for an increase in the cap from Rs. 45 lakh to Rs. 1 crore for metro city homebuyers, this move will aim to make affordable housing more accessible. Furthermore, the proposal for an expansion of the SWAMIH Fund is on the table, aiming to ensure the timely completion of stressed projects. Developers believe this will not only assist their endeavours but also strengthen homebuyer confidence.”

Aalok Kumar, Corporate Officer & Sr. VP – Head of the Global Smart City Business, NEC Corporation and President & CEO, NEC Corporation India:

“This year’s budget could be a blueprint for a Viksit Bharat if it tick marks below boxes to build a future where technology empowers every citizen, propelling India towards its place as a global leader.

Youth Employment: Allocate resources for creating jobs in sectors like manufacturing, IT, and renewable energy. Invest in skill development programs to equip young people with the tools they need to thrive in the digital age.

Women’s Empowerment & safety: Break down barriers and boost women’s participation in the workforce through targeted skill development, entrepreneurial training, and accessible childcare facilities.

Farm Prosperity: Support our resilient farming community with improved irrigation systems, access to technology, and fair market prices. Focus on sustainable agricultural practices for long-term growth.

Technology as the bedrock of all future development: Strategic implementation of technology at every level will help in strengthening access, reach and inclusion of businesses and society as a whole.”

Kaustubh Dhonde, Founder and CEO of AutoNxt Automation: As we navigate the dynamic landscape of the EV sector in 2024, we anticipate a strategic budget allocation that reflects our commitment to sustainable mobility. Our financial plan underscores not just numbers, but the human impact of driving innovation. With a focus on fostering talent, community engagement, and responsible growth, our budget embodies the essence of progress that goes beyond the balance sheet. Together, let’s power a future where humanity and technology coexist harmoniously, driving positive change in the world.”