With Union Finance Minister Nirmala Sitharaman all set to present the interim Budget for the year 2024-25 on February 1, 2024, India Inc is expecting announcement of series of measures for growth of consumption, reform policies that gives level playing field for manufacturers, strategic allocations towards infrastructure development, focus on agriculture, among others. This will be the last Budget passed by the central government before the general elections and all eyes will be on the finance minister to hopefully announce a slew of populist measures. The full budget for the fiscal year 2024-25 will be presented after the formation of the new government following the general elections.
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Here is what India Inc has to say on Budget 2024 Expectations…
Anghsu Mallick, Managing Director and CEO, Adani Wilmar
The FMCG sector is optimistic and looks forward to a market that is less volatile in 2024. The expectations from the upcoming Union Budget 2024 continue to be progressive, as we eagerly anticipate many transformative measures from it. The annual budget also offers a timely opportunity to set the direction for sustainable growth and empowerment, especially in the rural sector. Rural demand has been slower than expected. Inflation has hit consumption. With the higher expectation of the Rabi crop harvest, we anticipate rural demand to pick up. We recognise the vital role rural economies play in India’s economic growth and emphasize the need to introduce measures that would further boost consumption in these areas. New policies are anticipated that safeguard the interests of oilseed farmers and the oleochemical industry while effectively addressing challenges faced by rural communities. This, in turn, will have a positive ripple effect on industries connected with rural landscapes. The thrust on capital expenditure would be welcomed, as it not only spurs economic growth but also ensures inclusive development.
A level playing field for manufacturers could be achieved by categorizing imports like palm oil, stearic acid, soap noodles, oleic acid, and refined glycerin under the restricted-items list or implementing a 25 per cent import duty on finished products as opposed to raw materials. Additionally, the suggestion is to grant duty-free import privileges for raw materials to entities equipped with processing facilities. This move is expected to stimulate innovation and boost competitiveness, thus promoting the Make in India movement.
The proposed focus on bolstering investments in the Open Network for Digital Commerce (ONDC) and digital public infrastructure aligns with the ever-evolving landscape of consumer behavior, ensuring our industry stays ahead in the digital age.
Kami Viswanathan, President – MEISA, FedEx Express
FedEx advocates for a strategic allocation towards infrastructure development for more efficient multimodal logistics. Additionally, we emphasize a focus on digitization in the logistics sector to accelerate speed and ease of doing business.
Recognizing the impact of the National Logistics Policy and PM Gati Shakti National Master plan, alongside prioritizing road, sea, and rail cargo infrastructure, we see the expansion of airports as exciting avenues for growth. We urge a consistent budgetary emphasis on expanding airport infrastructure for cargo, strengthening regional airports and developing dedicated transhipment hubs to optimize belly and freight capacities. We underscore the importance of digitally advancing customs clearance processes through cutting-edge technologies such as artificial intelligence, machine learning, blockchain, and big data. This approach promises improved risk management, compliance, efficiency, and analytics.
As India targets lowering of logistics costs and a top 25 global rank by 2030, we anticipate budget initiatives that will sustainably boost manufacturing and trade, particularly benefiting and incentivizing SMEs. We also anticipate initiatives towards greater trade facilitation and further fostering a business-friendly environment aligning with the USD 5 trillion economy goal.
Anil G Verma, CEO and Executive Director, Godrej & Boyce
We expect the Government to continue its support to capex led projects, infrastructure improvements and PLIs, as budgeted. Further, the Government must take steps to accelerate the growth of its rural economy by providing suitable enablers. Additionally, the spends on targeted welfare measures for the underprivileged need to continue. India needs to grow across all segments and strata of society.
Arun Misra, CEO, Hindustan Zinc Limited
India’s Amrit Kaal presents a pivotal opportunity for sustainable growth. As industry leaders, we see potential in unlocking infrastructure development, industrial expansion, and a greener future. Optimizing mining holds key benefits.
Exploration is crucial for sustainable development. The total land mass of our county is 32.87 lakh Sq Km while the obvious geological potential area explored by GSI is 6.88 lakh Sq.Km only 2 per cent of OGP (obvious geological potential) has been taken to production level. The upcoming budget could encourage exploration by facilitating approvals and incentivizing experienced agencies as this segment holds huge potential for private industry to explore the mineral potential of India. Streamlining community development efforts is essential and with respect to that we urge the budget to look at consolidating DMF and CSR funds into a single entity that could simplify administration and maximize impact.
Mining infrastructure needs modernizing to maintain global competitiveness. Import duty relaxations on essential machinery and incentives for sustainable mining technologies could benefit both production and exports. Further proposals include royalty adjustments to incentivize exploration, exploring beyond mining leases to diversify resources, and leveraging mine tailings for resource efficiency. The zinc industry anticipates increased infrastructure projects driving demand for this durable and sustainable material. Implementing Production Linked Incentives for downstream metal processing could create jobs, empower technological advancements, and contribute to India’s economic goals.
Vineet Nayar, Former CEO of HCL Technologies and Founder, Chairman, Sampark Foundation
In the Union Budget 2024, the Indian government must prioritize AI integration in education to align with the National Education Policy (NEP) 2020. NEP’s goal of 6 per cent GDP allocation to education is a step towards educational revolution, but true transformation lies in embracing AI. AI can personalize learning, making it inclusive and effective. Strategic funding should support AI-driven educational models, digital infrastructure, and AI literacy. Such initiatives must extend beyond conventional classrooms, ensuring equitable access across socio-economic strata.
The Union Budget 2024 should not only increase allocation but strategically channel resources for AI embedding in education. This step will realize NEP’s vision and prepare India for an AI-dominated future, balancing technological advancement with social sector imperatives.
Manish Aggarwal, Director, Bikano, Bikanervala Foods Pvt Ltd
As we eagerly await the Union Budget for 2024-25, the FMCG industry in India is hopeful for a positive change after a tough 2023. Despite facing challenges in 2023, the sector expects to see strong growth next year, driven by increased demand in rural areas, favorable prices for raw materials, and the likelihood of a good monsoon.
We are eagerly anticipating the government’s focus on agriculture in the upcoming budget. This holds significance for the growth of rural areas, the potential for increased income in rural areas, and overall business expansion. The possibility of additional funding for the Agriculture Accelerator Fund aligns with our goal of utilizing new technology to improve farming practices, particularly enhancing storage facilities. This could contribute to better storage solutions, benefiting farmers and the overall FMCG sector.
Furthermore, we strongly encourage the government to invest adequately in boosting the rural economy. By enhancing the conditions for rural jobs and increasing government spending, we can stimulate greater demand in rural areas.
As we eagerly anticipate potential government efforts to uplift the FMCG industry, we also foresee a heightened focus of technology integration. This integration is expected to propel the FMCG sector forward by creating innovative approaches to connect with consumers and streamline operations.
Mahesh Gupta, Chairman, Kent RO Systems
As the budget approaches, the Consumer Durables industry expresses key expectations for policy considerations. Urging a reduction in GST on essential and aspirational appliances to 12 per cent or 5 per cent, the industry seeks to enhance affordability and drive growth across income levels. Emphasizing the need for reinforced support to the Production-Linked Incentive (PLI) scheme and the Make in India initiative, tax breaks for raw materials, components, and machinery upgrades are highlighted to fortify domestic manufacturing and generate employment opportunities.
Infrastructure development is a critical aspect, with a call for resources to ensure a reliable power supply and efficient logistics networks. Encouraging the use of automation is seen as pivotal for reducing costs and improving competitiveness in the business environment.
Innovation takes center stage, with the industry calling for substantial funds for research and development (R&D) in energy efficiency, smart features, and sustainability to secure global market leadership. Addressing human capital needs, there’s an emphasis on skill development initiatives and industry-academia partnerships to upskill the workforce.
Additionally, the industry advocates for regulatory streamlining to lower transaction costs and enhance the ease of doing business. Lastly, there’s a plea for tax incentives promoting sustainable practices, aligning with global environmental goals and making sustainability a competitive advantage.