Budget 2024 Highlights: ‘India one of the fastest growing economies, opportunities at peak,’ says PM Modi ahead of Budget Session

According to Rajeev Yadav, Deputy CEO, AU Small Finance Bank, the newly appointed government is expected to continue with policy focus on prudent fiscal management and fiscal glide path to achieve fiscal deficit of 4.5% by FY 26. This augurs well for overall macro-stability for transitioning towards the goal of Viksit Bharat by 2047.

The Union Government budget should focus on five key priorities for the upcoming Union Budget:

– Commitment towards fiscal discipline needs to get reiterated and will boost India’s fiscal image at a time of global bond inclusion. A sovereign rating upgrade over next two years will lower the cost of borrowing for all economic stakeholders in the country.

– Viksit Bharat requires scaling up of financial intermediation in a sustainable manner.  There is an urgent need to accelerate deposit mobilisation by the banking system. The FY25 Union Budget (along with support from the RBI) could look at providing a level playing field to bank deposits vis-à-vis other competing instruments by incentivize deposit mobilization through lowering tax incidence on FDs.

– Indian banks have been spending 6-8% of total operating expending on technology. This is lower than the global average of 10-12%. With government’s focus on digitization and financialisation of the economy and boosting cyber security, Indian banking system needs to meaningfully scale up the technological infrastructure to be future ready. FY25 Union Budget could offer some tax rebates for scaling up technological infrastructure.

– Job creation needs to be is a top priority for the policymakers to help maximize India’s demographic dividend and sustain GDP growth close to 8%. (as per the UN, India’s working age population is expected to peak around 2040). The Union Budget needs to be multi-dimensional prioritising filling of government jobs, existing PLI Scheme to reinvigorate labour intensive sectors (esp. involving the SMEs) like textiles, leather, tourism, etc, doubling increasing allocation towards education from close to 3% currently of GDP to around 6%.

– Supporting demand side economic activity through private consumption will not just raise demand at the bottom of pyramid, but it would also help the fiscal revenue by boosting indirect tax collections. The Budget could consider increasing targeted allocation for affordable housing under the PMAY Scheme while also providing tax incentives to home loan borrowers for developers. Scaling up of agriculture infrastructure and encouraging ‘farm tourism’ will also provide a strong impetus to rural incomes. 

The Union Budget needs to set the tone for economic momentum for the next five years. This will involve a fine balancing between preserving of fiscal discipline, boosting inclusive consumption, and incentivising financial savings, private investment, and exports.

Prior to going to polls, the previous government in its interim budget focused on renewable energy, which was a welcome step towards ensuring that the country’s dependence on fossil fuel reduces and aligning its commitment towards the Paris Agreement. Modi 3.0 continues to be committed to accelerating these goals, thereby sending a clear message to the industry on policy continuance.

“With the upcoming budget, we hope to see an increased focus on driving India‘s clean energy transition. This includes the Government’s support for renewable energy projects, green infrastructure, and robust climate finance mechanisms. Lowering the GST on renewable energy components would reduce project costs and enhance the affordability of clean energy solutions. Implementation of RE policies such as GNA regime and Green Energy Open Access Rules with increased clarity on detailed procedures will have the potential to bolster investor confidence and promote sustainable development within the industry.

We also anticipate increased allocation towards skill development, innovation, and demand creation, particularly in areas like rooftop solar, Battery Energy Storage Systems (BESS) and green hydrogen / ammonia. Additionally, we hope that the Government standardises and adopts new frameworks for Green Financing. Tax incentives for Green Bonds, such as exempting interest income and profits from sale or transfer of Green Bonds from tax, categorising green lending by banks under priority sector lending, and extension of lower tax rates for newer infrastructure companies (that were available till 31st March 2024) – all have the potential to attract more investments and financing for the sector,” Manikkan S, Executive Director & CEO, Radiance Renewables said.

During her Budget presentation in the interim Budget, Sitharaman had said, “As for tax proposals, in keeping with the convention, I do not propose to make any changes relating to taxation and propose to retain the same tax rates for direct taxes and indirect taxes including import duties. However, certain tax benefits to start-ups and investments made by sovereign wealth or pension funds as also tax exemption on certain income of some IFSC units are expiring on 31.03.2024. To provide continuity in taxation, I propose to extend the date to 31.03.2025.”

“By unifying the highly fragmented indirect tax regime in India, GST has reduced the compliance burden on trade and industry. The industry has acknowledged the benefits of GST. According to a recent survey conducted by a leading consulting firm, 94 per cent of industry leaders view the transition to GST as largely positive. According to 80 per cent of the respondents, it has led to supply chain optimisation, as elimination of tax arbitrage and octroi has resulted in disbanding of check posts at state and city boundaries. At the same time, tax base of GST more than doubled and the average monthly gross GST collection has almost doubled to ₹ 1.66 lakh crore, this year.

States too have benefited. States’ SGST revenue, including compensation released to states, in the post-GST period of 2017-18 to 2022-23, has achieved a buoyancy of 1.22. In contrast, the tax buoyancy of State revenues from subsumed taxes in the pre-GST four-year period of 2012-13 to 2015-16 was a mere 0.72. The biggest beneficiaries are the consumers, as reduction in logistics costs and taxes have brought down prices of most goods and services.”

Anita Basrur, Partner- Direct Tax, Sudit K Parekh & Co. LLP, says, “The existing tax deduction at source (TDS) provisions have separate sections for different types of payments with varying thresholds and rates based on the taxpayer’s status (individual/HUF/domestic company/foreign company). Combining sections like interest and dividend with a single higher threshold limit and unified rate for residents could simplify compliance. Likewise, payments to a contractor or a professional can also be combined in a single section with a higher threshold.

The essence of TDS provisions is to ensure that payments made do not go unreported and tax on such payments is deducted and deposited in a timely manner. This purpose can be achieved even by simplifying the TDS provisions. 

India’s personal income tax (PIT) rate of 42.74% is among the highest globally. When combined with GST, the overall tax burden is substantial. The government may consider lowering the effective PIT rate to around 25%, similar to new manufacturing companies. This is especially relevant since many deductions are no longer available. 

Further, a very high effective tax rate encourages individuals to resort to tax planning, diversion of income at source, formation of multiple entities etc. to reduce the effective tax liability. These practices can be kept under check if the effective PIT rate is much lower.”

“Over the last ten years, the direct tax collections have more than trebled and the return filers swelled to 2.4 times. I would like to assure the taxpayers that their contributions have been used wisely for the development of the country and welfare of its people. I appreciate the tax payers for their support

The Government has reduced and rationalized tax rates. Under the new tax scheme, there is now no tax liability for tax payers with income up to Rs 7 lakh, up from Rs 2.2 lakh in the financial year 2013-14. The threshold for presumptive taxation for retail businesses was increased from Rs 2 crore to Rs 3 crore. Similarly, the threshold for professionals eligible for presumptive taxation was increased from Rs 50 lakh to Rs 75 Lakh. Also, corporate tax rate was decreased from 30 per cent to 22 per cent for existing domestic companies and to 15 per cent for certain new manufacturing companies.

In the last five years, our focus has been to improve tax-payer services. The age-old jurisdiction-based assessment system was transformed with the introduction of Faceless Assessment and Appeal, thereby imparting greater efficiency, transparency and accountability. Introduction of updated income tax returns, a new Form 26AS and prefilling of tax returns have made filing of tax returns simpler and easier. Average processing time of returns has been reduced from 93 days in the year 2013-14 to a mere ten days this year, thereby making refunds faster.”

During Budget 2020, the government introduced a simplified tax regime, now the default option, and gradually increased the basic exemption limit. This benefits taxpayers who don’t claim deductions for investments, eliminating the need to submit investment proofs to employers. Over the past decade, the basic exemption limit under the old regime, last revised in FY 2014-15, has remained unchanged despite rising incomes of salaried taxpayers.

Consequently, there is a call for increasing the limit to INR 5 lakhs for both tax regimes, considering expenses like housing loan repayments and insurance premiums consume a significant share of salaried income. Read more.

In the Interim Budget for the fiscal year 2024-25, significant allocations have been earmarked for key ministries. The Ministry of Defence has been allocated Rs 6.2 lakh crore, reflecting a substantial commitment to national security and defense capabilities. The Ministry of Road Transport and Highways is set to receive Rs 2.78 lakh crore, aimed at bolstering infrastructure development and enhancing connectivity across the country. Meanwhile, the Ministry of Railways has been allotted Rs 2.55 lakh crore, focusing on modernizing rail infrastructure and improving passenger and freight services. Read more.

Shaji Varghese, CEO of Muthoot FinCorp Limited, anticipates several key measures from the upcoming Union Budget 2024. He emphasizes the importance of granting priority sector status to gold loan NBFCs. Additionally, he calls for revising the risk weight assigned to gold loans, suggesting it should align with that of banks or be similar to home loans, given both are regulated by the Central Bank. Mr. Varghese highlights the role of gold loans in promoting financial inclusion and supporting economic growth by enhancing credit availability.

He urges the government to introduce initiatives aimed at improving credit accessibility for MSMEs, especially in rural areas. He proposes increasing liquidity support for NBFCs and providing credit guarantees for MSME lending to boost credit availability. Mr. Varghese also expects continued budgetary allocations for digital initiatives and technologies, crucial for financial inclusion and supporting the government’s vision of Viksit Bharat 2047.

Overall, he emphasizes the importance of enhancing credit supply to SMEs and rural businesses to foster their development and contribute to economic growth.

Annu Talreja, Founder & CEO at Accacia, decarbonisation platform focusing on the real estate and infrastructure sectors, says, “As we look ahead to the Union Budget 2024-25, the emphasis on sustainable development is paramount. The built environment is responsible for nearly 40% of global greenhouse gas (GHG) emissions coming from buildings and, if left unchecked, they’re set to double by 2050, highlighting the urgent need for sustainable practices.

To align with the NDC goals and mitigate the carbon footprint of the construction sector, the government should introduce financial incentives for the production and utilization of green building materials like green cement, concrete, steel, plywood, paints and others. This could manifest through reduced GST rates, tax credits, or grants for companies manufacturing and supplying environmentally friendly construction materials.

Along similar lines, tax incentives and reduced GST rates for devices that help optimize energy & water consumption like heat pumps, BMS systems should be carved out. I also hope the government can launch a special program to fund startups to foster R&D and innovation in the sustainability space.”

The Budget for the fiscal year 2024-25 is typically presented in India in the first week of February. The interim Budget was presented this year on February 1 in view of the Lok Sabha elections. The full financial Budget will be presented on July 23 by Finance Minister Nirmala Sitharaman.

Sohail Mirchandani, Chief Operating Officer & Co-Founder of Ekostay, emphasises the robust growth in the travel and tourism sector post-pandemic, urging the Union Budget 2024-2025 to capitalise on this momentum. Strategic investments in tourism could unlock substantial economic opportunities, drive employment, and enrich India‘s tourism offerings.

Mirchandani proposes a uniform GST rate of 12% for hotels and homestays to streamline compliance and eliminate price discrepancies caused by fluctuating room rates. Currently, the tiered GST system based on room tariffs leads to complexity and administrative burdens, with GST rates ranging from 12% to 18% depending on the season. Simplifying this to a single rate would benefit businesses and consumers alike, fostering a more consistent and transparent pricing framework.

Abhinav Kumar, Director and CEO of brand concepts limited, says, “We hope to see measures that make it easier to do business, fostering a more favourable environment for companies to thrive. Such policies will not only support the industry but also play a significant role in driving the nation’s economic resurgence.

We are particularly focused on the needs of salaried individuals and taxpayers, whose increased purchasing power can significantly boost consumption. Additionally, schemes aimed at enhancing rural consumption are critical. Our emphasis is on expanding our presence in Tier 2 and Tier 3 cities, where we see tremendous growth potential.

Moreover, it is imperative for the government to consider incentives such as tax breaks or subsidies for businesses adopting sustainable and eco-friendly practices.

The upcoming budget must also accelerate the tourism agenda, positioning Indian hospitality as a key driver of economic growth. This, in turn, supports the travel gear and accessories industry, contributing to GDP growth and employment opportunities. By addressing these areas, we can ensure a thriving retail sector and a more prosperous nation.”

Rajesh Narain Gupta, Founder & Chairman, SNG & Partners, says, “Banking requires dynamic and timely reforms for a country like India. FDI in banking should be increased to invite more capital; government participation in public sector banks should be reduced asap; incentives to individuals on tax applied on fixed deposits should be given to increase liability business and to create a level playing field with the stock market and create balance; Big incentives should be given to private sector especially SME on Capital Expenses for capacity building and increase employment and also to reduce dependence on government spending; focused reform and incentives be given on long term lending by Banks on identified infrastructure projects; tax concessions should be given to private sector availing Green Finance to set up greenfield and brownfield Green Projects.

Protections should be given to decision-makers in the banking sector where loans go bad or lead to fraud where the decision is taken in the normal course and committee-based approach. Fear of penalty and prosecution need to be balanced for the banking industry to apply themselves.”

Manoj Purohit, Partner & Leader, Financial Services Tax, Tax & Regulatory Services,  BDO India lists two expectations. These are:
-Reduction in corporate tax rate – 
Foreign bank branches in India are currently taxed at a rate of 40% (plus applicable surcharge and cess) under Indian tax laws. The Government has already brought down the corporate tax rate for domestic companies from 30 % to 22% (plus applicable surcharge and cess) w.e.f FY 2019-20. This shift has created a disparity between the corporate tax rate applicable to foreign and domestic companies. Now is an opportune moment to address this disparity and rationalise the corporate tax rate for foreign companies including bank branches.

-Increase in FDI limit for Public Sector Banks – 
Following the earlier Budget announcements on the privatisation of two Public Sector Banks, there is growing anticipation that the government will raise the Foreign Direct Investment limit (FDI) in public sector banks from the current cap of 74% to 20%. This hike will bring the public and private sector banks on par, wherein 74% FDI is already permitted. This is expected to enhance foreign investment in large banks undergoing review for either consolidation or restructuring and resolve the liquidity challenges faced by major public sector banks.

India’s Gross Domestic Product (GDP) for the fourth quarter of FY24 surged by 8.2%, reaching Rs 47.24 lakh crore. This performance exceeded earlier forecasts by the National Statistical Office (NSO), which had estimated a growth rate of 7.3%. For the full fiscal year, nominal GDP expanded by 9.6%, a slowdown compared to the 14.2% growth recorded in FY23, as reported by the Ministry of Statistics and Programme Implementation (MoSPI).

India Solidifies Its Position as the Fifth Largest Global Economy

India now ranks as the fifth largest economy worldwide, following the USA, China, Germany, and Japan.

Sectoral Growth Insights

The Gross Value Added (GVA), which reflects the value generated by different economic sectors, showed a healthy increase of 7.2% in FY24. This growth was bolstered by a notable 9.9% rise in manufacturing and a 7.1% increase in the mining sector. For the fourth quarter, real GVA and GDP growth rates were recorded at 6.3% and 7.8%, respectively.

The excitement surrounding Budget 2024 is notably high within the travel and hospitality sectors. With the government’s continued focus on boosting tourism, industry stakeholders are hopeful for policies that could make travel more affordable and accessible. Here’s a detailed look at the expectations from key industry leaders.

Aviation Industry’s Key Expectations

Kanika Tekriwal, Founder & CEO of JetSetGo, is optimistic about the future of India‘s position in the global aviation market. She advocates for extending customs exemptions to Non-Scheduled Operators (NSOs), similar to those already available for scheduled air operations. This change would streamline the import process and create a more level playing field. Additionally, Tekriwal emphasizes the need to include aviation fuel under the GST regime, which would simplify the tax structure and reduce operational costs.

Tekriwal anticipates that providing customs exemptions for NSOs will enhance their competitiveness and efficiency. Incorporating aviation fuel into the GST framework is expected to lower the current tax burden, reduce operational costs, and improve overall efficiency. These adjustments would benefit the private jet and aviation sectors, making them more reliable and cost-effective, and positively impacting the broader aviation industry and the economy.

Meeting these expectations in the upcoming budget could significantly boost the growth and sustainability of the private jet and aviation industries, enhancing their efficiency and affordability for customers.

PwC India has urged the government to reinstate the concessional corporate tax rate of 15% for new manufacturing units for at least another five years. This move aims to boost domestic manufacturing and support import substitution, a key industry request that the Centre should consider in the upcoming full Budget, according to PwC partners during a press briefing on Wednesday.

Previously, the Financial Express reported that the government is likely to introduce a new scheme in the Budget, offering a concessional tax rate for new manufacturing units. This proposed scheme would be similar to the previous one that provided a 15% tax rate, compared to 22% for others, and ended on March 31, 2024. The objective is to maintain momentum in the private capital expenditure cycle.

Have a look at the finance ministry’s latest post on X.

The fintech industry in India eagerly awaits policy directions that will shape our future trajectory. This budget arrives at a critical juncture, offering a strategic opportunity to reinforce India’s position as a global leader in digital innovation and financial technology.

From a fintech perspective, one of the primary expectations revolves around fiscal incentives and regulatory frameworks that foster innovation and accelerate digital transformation. As technology continues to redefine financial services, there is a pressing need for policies that support entrepreneurship, attract investments and promote the adoption of advanced technologies such as blockchain, AI and digital identity verification.

Cybersecurity and data privacy are paramount concerns in an increasingly interconnected digital landscape. Strengthening cybersecurity frameworks and ensuring robust data protection measures will be critical to maintaining consumer trust and safeguarding the integrity of financial transactions. The budget provides an opportunity to introduce comprehensive cybersecurity policies that mitigate risks and enhance resilience against cyber threats.

“As a participant in India’s vibrant fintech ecosystem, I am optimistic that Budget 2024 will reflect a holistic approach to fostering innovation, promoting financial inclusion, and strengthening regulatory frameworks. By aligning policy priorities with industry needs, the government can unleash the full potential of fintech to drive inclusive economic growth, create jobs, and elevate India’s stature as a global fintech hub. I believe that Budget 2024 has the potential to set a transformative agenda for the fintech sector, paving the way for a future where technology-driven financial services empower every Indian citizen and contribute to the nation’s economic prosperity,” S Anand, Chief Executive Officer and Founder of PaySprint said.

Mayank Shah, Vice President, Marketing, Parle Products, said, “We expect the upcoming budget to significantly focus on infrastructure, particularly rural infrastructure, alongside agriculture-related sectors. This emphasis will help revive and accelerate demand in the rural economy, which was impacted last year and is now beginning to recover. Investments in rural infrastructure and agriculture will not only stimulate demand but also generate employment in rural India. Additionally, increased allocation to rural initiatives like NREGA will further support the revival of rural demand.”

He further added that on the urban front, job creation initiatives are crucial. There is a clear correlation between higher employment and increased consumption of consumer products. “Therefore, we anticipate government efforts towards job creation, likely through substantial infrastructure spending, which will generate employment opportunities. However, putting more money in the hands of consumers is essential. This could be achieved by either lowering tax rates or revisiting and potentially increasing income tax slabs. Such measures would boost disposable income, thereby driving urban demand,” he added.

Furthermore, regarding price hikes, he said that they do not foresee any significant increases in the near term. Most input prices are currently stable, with edible oil prices notably lower than last year, offsetting higher wheat and sugar prices. Crude oil prices are also under control, benefiting packing material and transportation costs. Given these conditions, along with the price corrections that have occurred over the past three quarters, we do not anticipate any major price hikes in the upcoming quarter or the next six months.

“We anticipate that the government will continue its current favorable policies towards the FMCG sector. The focus should remain on stimulating consumer demand through the initiatives mentioned. Overall, these expectations reflect our optimism for policies that will support sustained growth and stability in the FMCG sector,” Shah stated.

“The skill gap in India has been a subject of much discussion over decades. In the upcoming budget, we expect better utilisation of NSDC budget allocation through training support for a wide array of employers should be the objective. Rough estimates suggest that the revenue expenditure of NSDC is around Rs 2,728.15 crore and led to facilitation of around 5,80,000 jobs. The ratio, Rs 4,703/ Job, can work for training people for retail sales roles in our experience. Meanwhile, the salaries in the segment are likely to be at the higher end of salaries that have hitherto been on offer,” Suhas Misra, Co-CEO & Co-Founder, Channelplay said.

The Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement is presented to Parliament under Section 3 of the FRBM Act, 2003. It sets out the three-year rolling targets for specific fiscal indicators in relation to GDP at market prices, namely (i) Fiscal Deficit, (ii) Revenue Deficit, (iii) Primary Deficit (iv) Tax Revenue (v) Non-tax Revenue and (vi) Central Government Debt.

The Statement includes the underlying assumptions, an assessment of the balance between revenue receipts and revenue expenditure and the use of capital receipts including market borrowings for the creation of productive assets. It also outlines for the ensuing financial year, the strategic priorities of the Government relating to taxation, expenditure, borrowings, guarantees etc. The Statement explains how the current fiscal policies are in conformity with sound fiscal management principles and gives the rationale for any major deviation in key fiscal measures.

India is a booming economy and is doing far better than most developed nations in terms of GDP growth. “In the upcoming Union Budget, we expect the Government to focus heavily on economic growth, providing a significant boost to entrepreneurship and innovation which will lead to the growth of overall startup ecosystem. Today, the consumer is evolving, and they have started investing in products that they feel are good for them. As the country’s economy is poised for robust growth, people have more spending power leading to discretionary spending in households. With this change in consumer trend, we are confident that the mattress industry will continue to grow,” Priyanka Salot, Co-Founder, The Sleep Company shared.

The upcoming budget is highly anticipated by the hospitality and retail sectors, both of which are experiencing significant growth. In the hospitality sector, with over 400 hotels announced and luxury retail growing rapidly, the government should consider policies that facilitate the purchase of second homes with reasonable interest rates. This will drive growth, reduce rental pressures, and promote market stability.

Skill development is another critical area. The government’s focus on national skill development should extend to specialized training in plumbing, including engineering degrees, diplomas, and plumbing labs nationwide. This will elevate service standards and operational efficiency in the hospitality sector.

In terms of taxation policies, no major changes are expected, but the budget should support retail expansion, especially in tier 3 and 4 cities. As the IT industry moves to semi-urban areas, it’s creating employment opportunities and driving economic growth. Government incentives for rural employment, finance, and technology adoption will further boost these markets.

The budget should also address evolving consumer behaviors by making home buying easier and reducing construction costs through technological advancements. Additionally, promoting sustainability practices, such as energy efficiency and waste management, is crucial for long-term growth.

“Post-COVID recovery requires continued support for MSMEs, infrastructure development, and financial aid for second-home buyers. Prioritising tourism infrastructure, non-urban sanitation, solar-powered electricity, and reducing registration costs in semi-urban towns will foster robust growth and competitiveness in the hospitality and retail sectors,” Bantwal Ramesh Balinga, Group CEO of Acquaviva stated.

The upcoming presentation of the Union Budget 2024-25 on July 23rd has sparked optimism within the real estate sector regarding the Modi 3.0 regime. Anticipation is mounting for potential tax reliefs and other measures to boost market sentiment. The future of the industry hinges on unimpeded infrastructure development to enhance urban living standards and foster the growth of new areas.

Will the government accede to the longstanding request for industry status for the entire housing sector? Will it implement effective measures to revitalize the affordable housing segment, which has been in decline since the onset of the pandemic? Industry experts continue to ponder over these questions.

“The real estate market in India has shown strong performance in 2024 so far, as evidenced by the increasing number of housing sales and new projects in the top 7 cities. Sales have hit a record high of approximately 493,000 units in the fiscal year 2023-2024, while 447,000 units were launched. It is crucial for this positive trend to be sustained in the coming years, especially since the current growth pattern is more focused on mid-range and luxury housing. In order to address the housing needs of lower-income groups in India, there must be a concerted effort to promote affordable housing alongside the high-end market segment,” says Anuj Puri, Chairman, ANAROCK Group.

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Anurag Gupta, Co-Founders of STEMROBO, said, “Looking ahead to the final budget for 2024, we anticipate more measures aimed at enhancing STEM education, expanding digital infrastructure in rural areas, and raising educational standards to meet global benchmarks. Building on progress from the interim budget, which focused on boosting STEM education and digital literacy, the upcoming budget aims to further reduce educational disparities with targeted programs for underrepresented groups.
The interim budget made significant strides by emphasizing gender inclusivity in STEM education, where 43% of enrolled students were women, showcasing progress in educational equity. Notable changes included a proposed reduction in GST rates on educational goods and services from 18% to 5%, aimed at making education more affordable. Additionally, the selection of 14,500 schools for upgrades under the Education Policy 2020 showcased a commitment to modernizing educational infrastructure.
 It also allocated substantial funds for digital teaching resources, ICT upgrades, and initiatives integrating advanced technologies like AI and VR into school curricula. These efforts set a foundation for anticipated developments in the sector.”

The upcoming National Education Policy is likely to prioritise digital literacy and effective edtech utilisation, with a focus on expanding digital infrastructure in rural communities to bridge educational disparities. Public-private partnerships will continue to play a crucial role in enriching educational experiences through enhanced collaborations and incentives for ed-tech firms. Strategic investments in R&D, state-of-the-art laboratories, and ICT infrastructure upgrades will be pivotal in preparing India‘s youth for future challenges in a technology-driven world.

Rahul Uppal, Director at Echor Hotels said, “As we approach Budget 2024, Echor Hotels eagerly anticipates crucial reforms to bolster the hospitality sector. We advocate for industry status to gain access to lower utility tariffs, reduced property taxes and formal credit. Additionally, implementing a uniform 12 per cent GST rate would enhance operational efficiency and support economic growth. These measures are essential for making hotel investments more attractive and promoting overall sector growth.”

According to Dr. Satish Patil, Data + B2B GTM Expert, Founder and CEO, Kanlet, the first expectation is the continuity of the focus on AI, ML and overall technology. The potential of increased investment in policies that empower startups and emerging technologies, such as artificial intelligence (AI), is immense. As AI continues transforming sectors like healthcare, finance, manufacturing and education, it is crucial to implement proactive measures to ensure its responsible development.

“We need future AI guidelines that emphasize safety, ethical standards, and societal welfare while promoting innovation.

These steps are crucial to drive sustainable growth through data-driven insights and innovation. One of the critical areas where startups expect relief is in tax provisions. The upcoming budget is expected to introduce initiatives to enhance funding opportunities, including expanding government-backed venture funds, simplifying foreign investment regulations, and improving startups’ access to credit.

The angel tax has been a significant deterrent for many domestic and international investors, leading to a cautious approach to funding early-stage startups. Removing this tax will create a more attractive investment environment and encourage the flow of much-needed capital into the startup ecosystem,” Patil said.