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

“We anticipate a budget prioritizing capital expenditure to foster essential production capacity growth across industries. Urgently needed is the stimulation of industrial growth, particularly in the packaging sector and sustainability related industries. Government support, encompassing infrastructure development, tax incentives, and funding for research & development, is crucial. Substantial investments in R&D are imperative to enhance technical skills, meet stringent quality standards, and broaden capabilities across diverse sectors. What defined India‘s next in terms of growth will be driven by innovation, invention specifically around sustainability,” says Neetika Suryawanshi, CFO at Pakka Limited.

“With talent acquisition and skilling at the forefront, HR tech companies are hoping for tax breaks on investments in recruitment platforms, employee training tools, and upskilling programs. This move would encourage companies to use HR Tech solutions and contribute to workforce development and quality.

With several organizations expanding into non-metro cities, it’s crucial to form policies and draw the Government’s attention towards platforms engaged in making talent discovery and engagement accessible in even the remotest corners of the country. The industry anticipates that the government will allocate funds and devise schemes to impart employable skills within the higher education sector. Investment in digital infrastructure and tax exemptions for early-stage startups could be announced, encouraging innovation and adoption of tech solutions. As of 2023, nearly 50% of the population, roughly 900 million individuals, have internet access, making it the world’s second-largest after China. With this assumption, it can be inferred that even in the remotest corners of the country, internet connectivity is prevalent. Therefore, it is expected that the government will invest in developing digital infrastructure for Centers of Excellence and encourage engagement platforms to be accessible in the remotest areas of the country.

With the government’s initiatives aimed at attracting investments into tier-two and three cities, distinct progress has been observed in the past year,” says Ankit Aggarwal, Founder and CEO of Unstop.

According to Balasubramanian A, Vice President, TeamLease Services, the upcoming budget is expected to:

Focus on digital infrastructure: Development of a robust national digital infrastructure with affordable internet access in rural areas can increase e-commerce penetration and create up to 5 lakh jobs in digital service delivery and rural e-commerce businesses.

Simplified regulatory framework: Streamlining regulations and promoting transparency in e-commerce platforms can boost investor confidence and attract Rs. 5,000-10,000 crores in investments, potentially creating 2-3 lakh jobs across the e-commerce ecosystem.

Skill development for the e-commerce workforce: Training programs for skills like digital marketing, logistics management, and data analytics can improve efficiency and attract a skilled workforce, potentially creating up to 1 lakh jobs in e-commerce specific roles.

Support for MSMEs in e-commerce: Initiatives like providing easier access to financing and training in online marketing can help small businesses leverage e-commerce platforms and create significant job opportunities in e-commerce enabled MSMEs.

“As a seasoned professional deeply embedded in the retail-tech industry, my anticipation for the forthcoming 2024-25 budget stems from its potential to revolutionize retail dynamics. This budget holds significant promise, particularly for businesses leveraging advanced retail technologies. I foresee this budget offering crucial support for retail expansion, potentially streamlining the establishment of new physical stores through targeted infrastructure incentives. These measures could facilitate smoother entry and growth for brands, retailers & D2C players, fostering a more seamless retail environment. I anticipate the budget’s impact in simplifying tax procedures and increasing funding accessibility, particularly benefiting businesses eyeing physical retail spaces. For those utilizing sophisticated retail technologies, like Point of Sale (POS) solutions, this support could amplify their growth trajectory within the retail realm. Furthermore, I look forward to the budget’s potential to address inflation and drive consumer spending, pivotal elements for sustained retail growth,” says Varun Tangri, Founder and CEO, QueueBuster.

Krishnendu Chatterjee, VP and Business Head at TeamLease Services says that the BFSI sector is expected to emphasize the need for continued efforts to promote financial inclusion and bring more individuals and businesses into the formal financial system. This could include measures to expand access to banking services, simplify account opening procedures, and provide financial literacy programs.

For interest rates, he says hopes continue for policies that ensure stable or reduced interest rates. Lower rates can stimulate borrowing and economic activity. In case of liquidity support, especially after challenging economic periods, measures might be expected to ensure ample liquidity in the market. This could involve initiatives to ease credit flow, facilitate refinancing, or provide support during times of financial stress. Chatterjee also said that clarity in regulatory frameworks and policies is crucial. They may anticipate measures that simplify compliance procedures, streamline regulations, or introduce reforms that support growth while maintaining financial stability.

Finance Minister Nirmala Sitharaman took part in the traditional ‘halwa’ ceremony on Wednesday, marking the final stage of preparations for the Interim Budget 2024 set to be revealed on February 1 in the Lok Sabha. This annual ritual involves the preparation and serving of the traditional dessert ‘halwa’ to officials and staff members of the finance ministry involved in the budget preparation process. Held in the basement of North Block, the ministry’s location in the national capital, the ceremony is attended by the finance minister and other high-ranking officials. According to an official statement, the customary Halwa ceremony precedes the ‘lock-in’ process of Budget preparation each year. During the ceremony, the finance minister toured the Budget Press, reviewed preparations, and conveyed her best wishes to the officials involved.

Kanika Tekriwal, Founder of JetSetGo says, “We have several expectations from the budget in 2024. Firstly, we hope that the government will address the customs issues faced by Non Scheduled Operators bringing aircraft on leases. Currently, there is no clarity on the customs tariff for these imports, and we face difficulties in filing Bill of Entry. We hope that the government will provide an exemption on customs for Non Scheduled Operators, similar to what is available for scheduled air operations. Also, we hope that the government will provide clarity on sale and leaseback transactions in the case of Gift City. Currently, there is no clarity on how custom duty will be applicable in such cases, and we hope that the government will exempt custom duty in case of sale and leaseback transactions involving Gift City companies.

Lastly, we hope that the government will bring aviation fuel under GST. This will greatly reduce the burden on the industry and improve the overall efficiency of our operations. Overall, we hope that the government will address these concerns in the 2024 budget, so that we can continue to provide efficient and reliable charter and helicopter services across India’’

“The visionary stance of the Union Budget 2023-24 towards sustainable mobility played a pivotal role in the successful realization of the target of 1 million electric two-wheelers, providing crucial support to the industry. Looking ahead to the Union Budget 2024-25, there is anticipation for a further boost in support for Electric Vehicle (EV) infrastructure in the country. Optimism surrounds the potential reduction in both input and output Goods and Service Tax (GST) for EVs and spare parts—a move that would significantly enhance accessibility and broaden the reach to the masses. Additionally, hopes are high for increased financing opportunities, propelling research and development to a larger scale. This, in turn, would open doors for substantial investments in the ecosystem, accelerating India‘s overall adoption of electric vehicles. A crucial aspect lies in the call for added incentives specifically directed at Indian Original Equipment Manufacturers (OEMs), aiming to stimulate advancements in localizing EV technology, fortifying the indigenous industry, and contributing to a more self-reliant and progressive economic landscape for the industry,” says Mr Yatin Gupte, Chairman & Managing Director, Wardwizard Innovations & Mobility Ltd.

Hello and welcome to our live blog! In just a few days, Finance Minister Nirmala Sitharaman will unfurl the much-awaited Interim Budget 2024, laying out the blueprint for India‘s economic journey in the year ahead. From aspiring entrepreneurs to seasoned investors, from farmers in remote villages to urban professionals – everyone has a stake in this annual ritual of hope and aspiration. But what does Budget 2024 hold in store? And what is on the wishlist of sectors ranging from pharma, edtech, railways, infrastructure to auto, income tax among many others? Stay with us here to find out!