Budget 2024-25 Highlights: A day ahead of the presentation of Budget, Union Finance Minister and BJP leader Nirmala Sitharaman will table the Economic Survey 2023-24 along with a statistical appendix in Parliament today. Sitharaman along with Jayant Chaudhary, Pankaj Chaudhary, Kirtivardhan Singh and Sukanta Majumdar will present the document. The Union Budget 2024-25 of the third Modi government will be presented tomorrow at 11 AM. The spotlight is on Budget 2024 to deliver income tax relief for salaried individuals, stimulate job creation, and accelerate India’s journey towards achieving a USD 5 trillion economy.
Congress leader Jairam Ramesh said that in the all-party meeting, the JD(U) and the YSRCP demanded special category status for Bihar and Andhra Pradesh respectively but “strangely” the TDP kept quiet on the matter. His post on X came when the meeting was still underway. Read more.
The India-centric trade association of the United States has urged the Indian government to include production-linked incentives for the media and entertainment sector in the Budget 2024. The trade body also asks for equal opportunities for Indian and international businesses.
Delhi Finance Minister Atishi has requested the Centre to grant Rs 10,000 crore for the MCD. She also stated that the civic body has not received a fair allocation till now. As per a PTI report, Delhi Mayor Shelly Oberoi has submitted a letter to FM Nirmala Sitharaman regarding the matter.
Investors in the equities market would be dictated as per the announcements made by Finance Minister Nirmala Sitharaman in the upcoming Budget 2024. The finance minister will be presenting the Union Budget for the seventh time in a record. The Indian stock markets ended flat last week as a good start for earnings season was also marked.
The representatives from the Disability rights group are asking for an increase in budget allocation for overall development. A significant amount should be allocated for the betterment of disabled people and their constant growth. Arman Ali, executive director of the National Centre for Promotion of Employment for Disabled People stressed the importance of assigning budgets under federal and state programs in several ministries, as PTI cited.
Professionals from the healthcare industry expect the government to expand the funding, infrastructure, and innovation in the Budget 2024. For creating a strong healthcare system in India, these are the primary requirements needed in this field.
Indian Railways transportation depends majorly on budget releases as it helps in strategic planning and money allotment for all the infrastructure development. This will be the first railway budget under Modi 3.0 leadership and the Centre is highly anticipated to mainly focus on transformative growth in the upcoming five years.
Credai expects incentives for builders to build affordable housing and tax breaks for homeowners in the upcoming Budget 2024. The realtors’ body is requesting the government to speed up the approval process for real estate projects.
When Union Finance Minister Nirmala Sitharaman presents her seventh consecutive Union Budget, she will achieve a historic milestone during the Monsoon Session of Parliament starting on July 22. This achievement surpasses the record set by Morarji Desai, who served as India‘s Finance Minister from 1959 to 1964 and presented six budgets, including five full budgets and one interim budget. Desai’s tenure marked a significant era in India’s fiscal governance, setting a benchmark that Sitharaman is now poised to surpass with her consecutive budget presentations.
Similar to recent full Union Budgets, Budget 2024 will also be presented in a paperless format. All Union Budget documents will be accessible through the “Union Budget Mobile App,” facilitating easy access for Members of Parliament (MPs) and the general public. This bilingual app, available in English and Hindi, is compatible with Android and iOS platforms. Additionally, it can be downloaded from the Union Budget Web Portal at http://www.indiabudget.gov.in.
Finance Minister Nirmala Sitharaman will present the Union Budget 2024-25 in Parliament on July 23. Preceding this, the Economic Survey will be tabled on July 22. There is growing anticipation regarding potential adjustments in tax brackets, the ministry likely to receive the largest allocation, and which schemes will see increased funding.
On July 23, the Lok Sabha will get the complete Union Budget 2024–25. At 11:00 AM, Finance Minister Nirmala Sitharaman will begin her budget speech. Sitharaman is the second finance minister in India to deliver a seventh consecutive budget speech.
Mahesh Girdhar, Managing Director & CEO – EverEnviro Resource Management Private Ltd, said, “We anticipate robust growth for the adoption of alternative fuels on the back of governmental reforms and push for infrastructure development. Gradually increasing biogas and biomethane consumption to 20% by 2030 and replacing natural gas could help India reduce its fossil fuel dependence and cut import bills by nearly US$29 billion. A crucial step will be to secure guaranteed offtake of CBG by various natural gas-consuming industries to accelerate the achievement of decarbonisation goals. Setting up a grid system framework, similar to solar, would enable CBG production in one location and off-take in another, while preserving the molecule’s green properties. We believe that focusing on carbon credit trading will draw more investments into CBG projects, providing much-needed cash flow for the sector. Further, a CBG Fertilizer Synchronization scheme, requiring fertilizer units to use CBG, would greatly support the industry, akin to the CBG CGD Synchronization initiative.”
“There are crucial expectations for the power sector. I hope this term focuses on achieving a comprehensive turnaround of discoms. Many initiatives have been taken in the past to incrementally improve the situation, but we expect strong steps in this direction to ensure the sector’s well-being. Pushing for full retail competition should be a focus.
To maintain the momentum built in the last 5 years, it’ll be paramount to extend full ISTS waiver for another 2 years for sustaining RE adoption by all categories of power consumers.
While protectionism helps a certain segment, I would expect the government to open the sector to source the most competitive components globally, with a focus on swift and cost-effective deployment of RE and transmission in the country.
As we add unprecedented green energy to the grid, the next phase must also concentrate on preparing the country for large-scale RE integration. This will entail strong policy push towards strengthening interconnectors with neighboring nations, deploying extensive energy storage solutions, and exploring upcoming technologies like Small Modular Nuclear Reactors (SMRs) for a diversified energy mix,” Pratik Agarwal, MD Sterlite Power and Chairman Serentica Renewables said.
The travel and tourism industry has been experiencing robust growth post-pandemic, presenting an opportune moment for the upcoming Union Budget 2024-2025 to further this momentum. Strategic investments in our sector can unlock significant economic opportunities, boost employment, and enhance India‘s tourism landscape.
A uniform GST rate of 12% on hotels & homestays would greatly simplify compliance and eliminate price disparities caused by fluctuating room rates. Currently, the tiered GST system based on hotel room tariffs creates confusion and administrative challenges, with room rates varying between 12% and 18% GST depending on the season.
Furthermore, allowing online travel agents (OTAs) to register through their central head office instead of obtaining state-wise GST registrations would reduce administrative burdens and increase efficiency. The current regulation, which compels OTAs to establish a physical presence in each state, leads to high administrative costs and places national OTAs at a disadvantage compared to international competitors.
We also urge the government to address the GST discrepancies between e-commerce operators and direct bookings, which currently disincentivize digital transactions.
Moreover, allowing Tax Collected at Source (TCS) credit to be used against salary income tax would provide much-needed relief to taxpayers. Currently, TCS credit can be used against advance tax but not against income from salaries, creating an imbalance that needs rectification.
Tax incentives for adopting sustainable practices would also align with India’s commitment to the United Nations Sustainable Development Goals, particularly SDG 11 (Sustainable Cities and Communities) and SDG 13 (Climate Action).
Neeraj Akhoury, MD Shree Cement Ltd:
The cement industry is optimistic about significant allocations to housing and infrastructure, which account for over 80% of the demand for cement. The Interim Budget in February showed the government’s commitment with an 11.1% increase in infrastructure capital expenditure, totaling Rs 11.11 lakh crore, or 3.4% of the GDP.
We expect further spending on highways, roads, bridges, and urban development, alongside more funds for projects.
Cement industry multiplies all levers of economy, especially employment generation, with studies suggesting that every 1 million tons of cement create 20, 000 direct and indirect employment. India is currently the 2nd largest producer of cement in the world and yet we have one of the lowest per capita consumptions. The extension of the PLI scheme to the cement sector could further drive investments and technological advancements, aligning with the Make in India initiative and enhancing the industry’s global competitiveness.
Higher MNREGA allocations could boost rural employment, and increasing funds for rural-focused schemes, such as the PM Gramin Awas Yojana, will support rural housing construction. Increasing the home loan deduction limit can add momentum to the housing demand and increasing allocation to PM Urban Awas Yojana, will support in construction of affordable housing.
Additionally, the cement industry has the potential to generate 1,300 MW of clean energy by installing waste heat recovery systems (WHRS), directly reducing energy wastage. The industry and the overall ecosystem would greatly benefit if power generated through WHRS were given the same benefits as Renewable Energy, such as being considered for Renewable Purchase Obligation (RPO) compliance.
The upcoming Union Budget 2024-25 presents an opportunity for transformative changes in the cement industry. By addressing these key areas, the government can support sustainable growth, boost infrastructure development and enhance the global competitiveness of the Indian cement sector.
“As India’s energy demand rises, boosting the share of renewables is crucial for energy security and sustainability, the upcoming union budget is expected to focus on achieving the 500GW target by 2030 and incentivising technologies to reduce renewable energy intermittency, like energy storage solutions. Battery Energy Storage Systems (BESS) are essential for advancing India’s renewable goals. Previous budgets have significantly increased funding for the advanced chemistry cell sector, showing the government’s commitment to energy storage. We anticipate continued support for cell manufacturing and BESS, along with Production Linked Incentives (PLI) for raw material processing. Additionally, growing the green hydrogen industry will likely be a key focus, replacing fossil fuels in transportation and hard-to-abate sectors like refining, steel, and cement. At Gensol Engineering, we are dedicated to reducing carbon emissions and combating climate change through the engineering, design, development, and deployment of solar and BESS projects. By providing comprehensive EPC and O&M services , we aim to lead in renewable energy and support India’s energy transition goals,” Anmol Singh Jaggi, Chairman and Managing Director, Gensol Engineering Limited said.
As the Indian insurance sector stands on the verge of significant transformation, the 2024 budget is poised to spur growth and deepen market penetration. Key expectations include tax reforms, such as revising tax structures to make insurance products more appealing. Increasing the cap for insurance premium payments under Section 80C of the Income Tax Act would incentivise individuals to invest more in insurance, thereby boosting coverage. Additionally, a dedicated exemption for term insurance is sought to address the exhaustion of the Section 80C deduction limit.
For pension products, the industry urges the government to exempt annuity income from taxes, similar to the National Pension System (NPS), encouraging retirement planning and providing financial stability to the elderly. The sector also advocates for input credit on GST paid on group health insurance premiums, benefiting MSMEs by reducing their financial burden and promoting employee welfare.
“Increased government investment in technology is anticipated to streamline operations, enhance customer experience, and foster innovation, with support for InsurTech startups and a focus on cybersecurity. Regulatory measures, such as easing minimum capital requirements for new insurers and introducing a composite license, could make insurance more widespread and financially inclusive.
Distribution efficiency and agent flexibility are also crucial, with calls to relax Point of Sales Persons (POSPs) regulations and allow agents to collaborate with multiple insurers. The upcoming Bima Sugam portal is expected to act as a centralized database for policy purchases, portability, and claim settlements, ensuring better service for policyholders. If the industry’s wishlist is addressed, the 2024 budget could significantly reform the insurance sector in India, leading to increased penetration, distribution efficiency, and innovation, ultimately contributing to a more insured and financially secure society by 2047,” Rahul M. Mishra, Co-founder and Director, Policy Ensure, said.
“It is quite likely that those results will play a part in determining the priority areas for the government to focus on in the immediate future while keeping long-term reforms and initiatives intact. As such, we expect a balanced approach by the government with a focus on the agriculture sector to boost farmers’ income, address the middle-income class with likely, albeit modest, adjustments to income tax slabs and continued push towards rural health and housing. We also believe the budget will focus on schemes and incentives to boost domestic manufacturing, with a focus on the semiconductor industry, promote the adoption of electric vehicles, and renewable energy. With the government’s target of reaching the US$ 5.0 trillion GDP mark, we expect a reiteration of the national infrastructure pipeline involving roads, ports, airports, economic corridors, and tourism and hospitality,” Avinash G Singh, Head – Investment Research and Analysis, Aranca said.
The tea industry is advocating for increased rates under the RoDTEP scheme to enhance the competitiveness of its exports in global markets. The Indian Tea Association (ITA), a leading industry body, highlighted in its pre-budget memorandum that the current RoDTEP rate for bulk tea is 1.7 percent (free on board), capped at Rs 6.70 per kilogram.
The ITA urged the government to raise the base reward rate under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme for bulk black tea to help maintain competitiveness internationally. The RoDTEP scheme provides exporters with refunds on previously non-recoverable embedded taxes and duties.
Similarly, the Tea Association of India (TAI), in its pre-budget proposal, recommended that the RoDTEP rate for tea be set higher than the previous five percent rate under the Merchandise Exports Incentive Scheme (MEIS). This increase would help Indian tea retain its competitive edge in the global market.
Prashant Bothra CEO & Founder of Fhero Accounting solutions:
1. Electric Vehicle Loan Interest Deduction: We anticipate the reintroduction of the provision allowing interest paid on electric vehicle loans to be eligible for deduction under Section 80C, reinstating the benefit that was previously available but had lapsed.
2. Angel Tax Reform: There is a pressing need for the reduction or abolition of the Angel Tax. This reform will facilitate more effective funding mechanisms and enable better equity retention for startups and investors.
Support for the EV Sector:
3. Incentives for Semiconductor Businesses: We look forward to tax or capital incentives to support the establishment and growth of the semiconductor industry, a critical sector for technological advancement and economic growth.
4. Phasing Out Old Schemes: It is expected that the government will signal intentions to gradually phase out outdated schemes, replacing them with more effective and contemporary alternatives.
There is an urgent need to double the current budgetary allocation for agricultural research and development to enhance its impact, the Indian Council for Research on International Economic Relations (ICRIER) stated in a quarterly bulletin released ahead of the upcoming Union Budget 2024.
Prashant Bhojwani, Partner, Corporate Tax, Tax & Regulatory Services, BDO India, said, the Indian media and entertainment (M&E) sector continued its growth trajectory to reach USD 28 Bn in 2023, with digital media and online gaming witnessing the highest growth. Digitisation has redefined the sector, bringing up new opportunities. With the Union Budget round the corner, all eyes are on whether the proposals will foster an ecosystem for the Indian media and entertainment (M&E) sector to continue its rapid expansion.
Foreign direct investment (FDI) in print: Currently, Foreign Direct Investment (FDI) in print (news and current affairs) is capped at 26%. Globally, the print sector faces challenges due to digitalisation. Considering the trend of liberalising FDI caps and the sector’s need for investments in digital assets, it is advisable for the Government to consider increasing the FDI cap for print to 49% under the automatic route, similar to the radio sector. This would help in attracting foreign investments into this traditional sector, supporting its modernisation and growth.
Tax holiday: Despite being the largest producer of films globally, with approximately 1,700 films annually, India’s screen density is only 6-8 screens per million population compared to China’s 30. Screens have a ripple effect on the economy providing opportunities for other economic activities such as housekeeping and food and beverage services, besides serving as a platform for film monetisation. Given this backdrop, the Government should consider introducing a tax holiday for new theatres [similar to section 80-IB(7A) of the Income-tax Act, 1961] to encourage investments in the exhibition business as well as streamline the approval process for opening new screens.
Infrastructure status: Broadcasting is inherently a capital-intensive business and requires substantial investments in digitisation, technology upgrade, infrastructure architecture and continuous content development. Despite these requirements, the broadcasting sector currently lacks infrastructure status. Granting this status would be beneficial as it could help in securing financing for future growth initiatives, among other advantages.
Online gaming is one of the fastest-growing sectors globally and unsurprisingly, it has witnessed a massive upsurge in India, contributing to revenue generation and creation of employment opportunities. This transformation has led to the Government enacting specific provisions under Income-tax and Goods & Services Tax for online gaming. In this context, the Government should consider formulating a comprehensive policy to (a) introduce international best practices for the sector, (b) create distinction between real-money games and other online games, while simultaneously fostering technological innovation.
According to Swetha Kochar, Founder & Partner, PKC Management Consulting, the upcoming budget may focus on:
1. FAME Subsidy Extension: We anticipate the government to extend and enhance the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme. This move is expected to bolster widespread adoption of electric vehicles, supporting India‘s transition towards sustainable mobility solutions.
2. Support for Farmers: There is an expectation for the expansion of the PM-KISAN scheme to include more small and marginal farmers. Additionally, measures to support farmers in exporting agricultural produce are anticipated, aimed at reducing wastage and contributing positively to India’s GDP growth.
3. Taxation Reforms:
4. Potential Tax Adjustments: We also anticipate increases in taxes such as Securities Transaction Tax (STT) and taxes on LTCG, STCG, and intraday transactions, which could impact financial markets.
5. Support for Green Technologies: The budget is expected to allocate increased funds towards supporting emerging technologies like green hydrogen. This strategic investment aims to advance research and development efforts, particularly in refining
Bishwadeep Ghose, Country Director, Water for People, India, said,
“Looking ahead to the 2024 budget, it is imperative to build on the Jal Jeevan Mission’s achievements. With a central investment of Rs 2 lakh crores out of Rs 3.25 lakh crores, 78% of households now having access to drinking water. We’ve made significant progress. However, to achieve total coverage, we must continue to invest so that no one gets left behind. The upcoming budget should also ensure funds for the upkeep and operations of new piped water systems, securing their functionality and ensuring a reliable water supply.
Additionally, to address the challenges posed by climate change and extreme weather events on water resources, strategic investments in water management are essential to water sustainability and security in urban and rural settings. Effective management of drinking water and agricultural water use is vital as they rely on common groundwater resources. Targeted investments in demand management are crucial to achieving this balance. These budgetary allocations will not only sustain our progress but also secure India’s long-term water security and resilience.”
The programme, PM Surya Ghar: Muft Bijli Yojana, launched on February 15, 2024 by Prime Minister Narendra Modi is actually a government scheme which aims to provide free electricity to households in India.
“We expect the government to harness the potential of manufacturing, create copious employment opportunities and expand economic activity that will give further impetus to the current growth momentum. By focusing on self-reliance and resilience in global value chains, India can accelerate its growth trajectory towards being a Global Hub for Manufacturing and Innovation, thereby propelling the nation towards becoming a $7 trillion economy by 2030. Continued emphasis on infrastructure development including roads, railways, ports, and digital infrastructure, will be crucial to enhancing connectivity while also stimulating economic progress across the country. Additionally, we look forward to initiatives that will bolster the new energy landscape including green hydrogen, solar technologies, microgrids, and electric vehicles. We also expect the budget to introduce policies incentivizing energy-efficient practices among companies. This will not only transform India’s energy landscape but also contribute significantly towards achieving the country’s net-zero goals and climate targets,” Deepak Sharma, MD & CEO, Zone President, Greater India, Schneider Electric said.
Finance Minister Nirmala Sitharaman will table the Economic Survey in Parliament on July 22, preceding the Union Budget 2024-25. This report serves as an economic assessment and a preview of future growth prospects.
Finance Minister Nirmala Sitharaman will table the Economic Survey in Parliament on July 22, preceding the Union Budget 2024-25. This report serves as an economic assessment and a preview of future growth prospects.