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

“As an entrepreneur, my primary expectation from the Union Budget is a streamlined and simplified tax structure. Reducing corporate tax rates for startups and MSMEs, along with more incentives for research and development, is essential for fostering innovation and competitiveness. Simplifying GST compliance will enable businesses to focus on growth rather than complex regulations. Addressing the contentious angel tax is crucial; its elimination would attract both domestic and international investors, fostering a more conducive environment for startups. Beyond taxation, increased infrastructure development, support for digital initiatives, skilling programs, and policies promoting sustainability are vital. The Budget should create an enabling environment that supports innovation, entrepreneurship, and sustainable development, driving job creation and economic growth,” Appalla Saikiran, Founder & CEO, SCOPE said.

“The government should increase disposable income by rationalising direct tax rates and lowering GST rates. Additionally, removing the tax on interest earned from PPF and providing more tax-free investment options for the salaried class in safe and secure funds can further boost financial security,” Faisal Farooqui, Founder and CEO, Mouthshut.com said.

“Recognising the demographic imperative of senior care is crucial for India‘s sustainable development. With a rapidly growing population, that will more than double from current 13 crore to 35 crore seniors, prioritising senior well-being is not just a social responsibility but an economic necessity. 

The government’s proactive approach in empowering our elders is commendable. As we move towards the 2024 budget, we anticipate a comprehensive roadmap outlining the next phase of progress. 

Beyond potential tax benefits, special health insurance policies, and overall promotion of financial independence for seniors, we believe incentivizing private sector participation is key to developing much-needed senior-friendly infrastructure. This could include tax breaks, low-interest loans, and streamlined approvals for setting up senior care facilities nationwide.  Such measures will foster innovation and unlock the full potential of the senior living sector.

Boosting digitization of healthcare services, that empower our elders physically, socially, and emotionally are essential to meet an increasing demand-supply gap of care giving.

We trust the upcoming budget will further bolster senior care, enabling a more self-reliant and resilient elderly population. By working collaboratively, we can ensure a comfortable and secure future for our seniors, enriching lives and strengthening the social fabric of the nation,” Rajit Mehta, MD & CEO, Antara Senior Care said.

India’s Gross Domestic Product (GDP) for the fourth quarter of FY24 surged by 8.2%, amounting to Rs 47.24 lakh crore, surpassing earlier estimates by the National Statistical Office (NSO) which projected a growth of 7.3%. The nominal GDP expanded by 9.6% in FY24, compared to 14.2% in FY23, as reported by the Ministry of Statistics and Programme Implementation (MoSPI).

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“The insurance industry has certain expectations from the government and the finance minister. The first and foremost is the reduction in the Goods and Services Tax (GST) on insurance premiums. Currently, GST on insurance premiums is 18 per cent, which is considered high and a deterrent for potential policy buyers. If there is a reduction in GST, it will help the industry in a big way. Secondly, the policyholders should receive higher tax benefits for their medical insurance. We should raise the limit to Rs 50,000 for self, spouse, and children, and Rs 1 lakh for senior citizens. Finally, increase the limits for the Income Tax Act 80C. Right now, Indians get a tax exemption of Rs 1.5 lakh every year, but it’s crowded with various financial products. We would expect the limit to increase or to establish a separate exemption limit specifically for life insurance premiums,” Rakesh Goyal, ManagingDirector, Probusinsurance.com said.

The logistics industry serves as the central lever for the efficient growth of all sectors. As the backbone of the supply chain industry, warehousing facilitates systematic storage and inventory management, enabling companies to anticipate demand and seize business opportunities both domestically and internationally. Therefore, government support is essential for the sector’s substantial growth.

“As we approach the 2024-2025 Budget, it is imperative to emphasize the significance of Foreign Direct Investment (FDI) in this industry. Increased FDI will bring the necessary capital, advanced technology, and expertise needed for modernization and expansion. The government can create a more favourable environment for FDI by streamlining regulatory processes, providing tax incentives, and promoting this sector as an attractive asset class for high-net-worth individuals (HNWIs) and institutional investors globally.

India’s future economic growth will depend on efficient logistics and warehousing infrastructure. The government can support this by simplifying land acquisition, offering incentives for sustainable practices, and lowering provisioning requirements for banks financing these projects. Additionally, developers can benefit from accessing funds at better rates through partnerships with insurance companies, pension funds, and international lenders, which will help reduce construction and maintenance costs. Encouraging green initiatives, creating worker-friendly environments, and establishing hubs with EV charging points will further bolster the industry’s growth. By addressing these critical areas, the budget will be the catalyst for transforming India’s warehousing sector into a global leader,” Anshul Singhal, Managing Director, Welspun One & Chairperson of ASSOCHAM National Council on Logistics & Warehousing said.

As the Union Budget 2024 is around the corner, the education sector urges the government to elevate the investment in education. Experts from the education sector believe that if India aims to position itself as a developed economy in the next two decades in alignment with Prime Minister Narendra Modi’s vision of ‘Viksit Bharat’, it is crucial to prioritise the education of children, the true architects of our nation’s destiny.

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Anuj Sawhney, Managing Director of Swiss Military, said, “The upcoming Union Budget is poised to provide the essential momentum for the retail and consumer sectors. We are confident that the government will support long-term growth while maintaining the necessary flexibility within these critical industries. Our expectations from the budget include the formulation of the National Retail Policy and the establishment of financing opportunities specifically for retailers and distributors. Organizations can also look forward to the significant benefits from anticipated digital transformation incentives, driving higher efficiency and enabling more customer-centric offerings. Additionally, we eagerly anticipate the growth and empowerment of Indian manufacturers, fostering a robust and self-reliant supply chain. Overall, we remain optimistic about the budget’s impact on the retail and consumer products industry and look forward to working closely with the government to unlock the full potential of these dynamic segments.”

As the Indian insurance sector stands on the verge of significant transformation, the 2024 budget is poised to spur growth and deepen market penetration. Reforms are eagerly anticipated to reshape the landscape of insurance in India. 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.

Pavan Kumar, Founder and CEO – White Lotus Group, says, “Urban centers face escalating costs due to increasing demand. To address this, strategic urban planning is essential. We urge the government to prioritize the development of satellite towns alongside a comprehensive infrastructure roadmap. This approach will alleviate pressure on major cities while simultaneously creating new employment opportunities in these emerging areas. Promoting green infrastructure, with a strong focus on achieving zero-carbon emissions, is critical.

Budget allocations should reflect these principles, not only meeting the growing demand for sustainable living spaces but also positioning India as a leader in ethical real estate development. The lengthy approval process, often exceeding a year, creates a major hurdle for developers. Granting industry status to the real estate sector by the RBI is crucial for growth.

A unified, single-window system will expedite approvals, reducing interest rates and construction costs, ultimately making financing more accessible for builders. Reducing the Goods and Services Tax (GST) will significantly lower the cost of homes and contribute to the overall growth of the sector. By aligning sustainability incentives, industry status, and revised GST structures, we can accelerate the real estate sector’s contribution to GDP from 7% to a projected 13%, thereby exceeding our goal of becoming the world’s third-largest economy by 2030.” 

Ashok Chhajer, Chairman and Managing Director, Arihant Superstructures Ltd., says, “The real estate sector has been burdened with multiple and double GST taxation, which needs to be streamlined to a one-time transaction. We expect the government to establish a monitoring cell to ensure that the cost of construction does not increase moving forward. Additionally, we urge the government to reduce the GST rate on cement from 28% to 18%, as it is not a sin category product. These measures will greatly support the growth and stability of the real estate sector.”

Mayank Ruia, Founder and CEO of MAIA Estates, says, “The reinstatement of input tax credit on GST outflows towards cost of developing real estate assets. This would significantly reduce cost and cash flow pressures on developers, thus helping rationalize price increases for buyers.”

Himanshu Arora, CEO and  Co-Founder, GoMechanic, says, “Our recent entrance into the EV sector through partnerships with major EV companies highlights the critical need for continued support. Extending the FAME II subsidy and providing incentives for EV servicing centers are essential to reduce costs and build infrastructure, fostering broader EV adoption.

Reducing GST on lithium-ion batteries from 18% to 5% would lower manufacturing costs, making EVs more affordable and increasing maintenance demand, driving sector growth. Battery recycling and waste management policies need attention to enhance safety and streamline infrastructure, creating a sustainable servicing ecosystem.”

Katrina Almario, Vice President – Finance, Amway India says, “We hope the Government rationalizes GST on dietary supplements from the current 18% in the upcoming Union Budget 2024. This will be a welcome move, considering a holistic healthcare system combined with nutraceuticals and health supplements provides significant economic value and will play a vital role in contributing to reviving the Indian economy.

We also propose the expansion of GST exemptions, including input tax credits, to cover dietary health and wellness products, including Ayurvedic preparations. This would enable more people to embrace wellness practices, paving the way for a healthier India.

As a company empowering individuals to start their own businesses, we urge the government to consider lowering income tax slabs for direct sellers who are sole proprietors or small businesses. This adjustment would support entrepreneurship and contribute to overall economic growth.

Furthermore, lowering taxes would improve spending power, allowing more people to invest in their health. We also advocate incentivizing research and innovation by providing fiscal incentives to support R&D initiatives, thereby fostering an environment for technological advancement and enhancing our nation’s competitiveness in the global market.”

Gaurav Dubey, Founder and CEO of LivLong 365, says, “Currently, IRDAI allows universal Health Insurance licenses, however, with varying healthcare needs across the vast geographical market in India there is need for specialised focus catering to varied micro-market requirements. By issuing licenses under separate categories there will be an influx of foreign capital which will further help in driving innovation and increasing Health Insurance penetration across customer segments.

One of the primary expectations from the budget is passing of IRDAI act which allows the issuance of specialised licences like OPD solutions under Health Insurance category. Such a licence would encourage innovation and provide a progression towards preventive healthcare there by reducing overall healthcare expenses for a country like India.”

Congress leader Supriya Shrinate said that the Union Budget must prioritise addressing India‘s severe unemployment crisis and bridging income inequality. She criticised the government for potentially diverting attention with unrelated narratives instead of acknowledging the gravity of the joblessness issue.

Reducing tax rates or expanding tax slabs can boost take-home pay, incentivizing increased investment and savings. In the old regime, raising the section 80C exemption limit (covering investments in provident fund, tuition fees, etc.) and 80D4 limit (encompassing health insurance premiums for self and family, and expenses for preventive health check-ups) could offset rising costs while offering diverse investment avenues. Read more here.

Nilesh Shah, MD, Kotak Mahindra AMC, said, “The budget should be voted on account plus. It should carry on the good work of vote on account by pursuing the path of fiscal prudence, increasing resources for infrastructure investment and boosting consumption at the bottom end of the pyramid. It should allocate more resources for long-term value creation by investing in education and health care. It should set a higher target for divestment by divesting from low floating stock PSUs.” While talking about the importance of financial inclusion and financial independence, he said that the budget should launch a Jan Nivesh Yojna to create Financial inclusion for crores of Indians who are stuck in Ponzi schemes and speculations. “Let Indians become Financially Independent by participating in the journey of Viksit Bharat,” he added.

Rayan Malhotra, founder and CEO of NeoFinity, says, “In anticipation of the 2024 budget, the financial region eagerly awaits reforms to solidify the boom and stability.  India‘s clean and concise capital gains tax regime is critical to strengthening capital markets. Simplifying tax systems and ensuring clarity will attract prominent traders and stimulate market interest.

In addition, finance is expected to raise awareness of the driving activities at IFSC GIFT City, making it a global financial hub. The potential impact of enhanced incentives and infrastructure development on attracting global organisations is significant, and this is expected to support financial services, making stakeholders feel excited and hopeful about the future of the financial sector.

The banking region is on a path to inspiration for modernisation and performance ahead of the measures. Initiatives to promote virtual banking and reduce non-performing assets (NPAs) are essential for a healthier financial ecosystem. In addition, the sale of non-cash transactions is a problem. Authorities can embellish transparency and performance in economic transactions by incentivising virtual banknotes and reducing reliance on coins.

Overall, the financial quarter envisages a budget that will help strengthen the capital market, modernise banking, and promote a cashless financial system. These measures will ensure sustained growth and competitiveness in the Indian monetary environment.”

Abhishek Bisen, Head- Fixed Income, Kotak Mahindra AMC, says, “Dhoni’s calculated run-chase enabled India to win the 2011 world cup final and brilliant contribution by Gautum Gambhir did not go in vain. After a good work over last several years to bring down the fiscal deficit from 9.3% to 5.1% projected for FY 25, GOI should not lose sight of the potential sovereign upgrade (akin to a world cup win).

Hence with a fiscal deficit target of 5.1%, staying on this path is essential for a potential sovereign rating upgrade. Strategic disinvestment in PSUs and thoughtful tax adjustments can enhance revenues while ensuring fiscal discipline. India has it all to be preferred as a premier investment destination by global investors. We just need to maintain the good work, while this approach may seem like a run-a-ball strategy but seems appropriate at current juncture. Let’s seize this moment!”

Mihir V Shah, Executive Director, Vipul Organics Limited, a Specialty Chemicals company in the pigments and dyes segment, says, “With the Government being sworn in for a straight third time, we expect a continuity of policy. We expect a renewed focus on infrastructure development, manufacturing and job-creation.”

“India aspires to be an export hub with the stated target of exports of Goods and Services worth $2 Trillion by 2030. This can be made possible by reducing the tariffs on imports of raw materials and ensuring that the right building blocks are in place, especially for the manufacturing sector. In addition, putting stringent anti-dumping measures will ensure that the domestic manufacturers have a level playing field.

We believe that the Budget will ensure that the Government’s commitment to the manufacturing sector as a whole and Chemicals sector in particular moves seamlessly.

Today Chemicals contribute around 7% to the GDP and India is the 6th largest producer of chemicals in the world. The Chemical sector is estimated to grow to $300 Bn by 2025 and $1 Tn by 2040.

We hope that the budget focuses on bringing PLI in the chemical & petrochemical sector so as to propel growth, for both existing and greenfield facilities. In addition, development of quality infrastructure and chemical hubs with centralized waste and effluent treatment systems will bring India at par with the other manufacturing hubs. This will ensure that the sector continues to be an important participant in the India growth story,” he says.

Ahead of the Union Budget 2024-25, a survey conducted by community social media platform LocalCircles revealed that 48% of consumers anticipate a reduction in their annual household earnings compared to the previous fiscal year (2023-24). Similarly, an equal percentage of households expect their average savings to decrease in the current fiscal year.

Among those surveyed, 15% of households foresee a decline of over 25% in their savings, while 7% expect a similar drop in household earnings. This downturn is primarily attributed to higher living costs and expenses, leading some to consider asset mortgage or liquidation, and resorting to personal borrowing in addition to existing loans for housing, vehicles, or education. Read more here.

With the Union Budget 2024 set for presentation by Finance Minister Nirmala Sitharaman on July 23rd, the salaried class eagerly anticipates favourable announcements. Expectations include tax reductions and streamlined taxation processes to ease the burden on taxpayers. There is a hopeful outlook for lower income tax rates to counter inflation and rising interest rates.

Additionally, incentives supporting equity investments, like enhanced tax exemptions, are anticipated to boost disposable incomes. Taxpayers also look forward to a simplified tax framework and expanded exemptions, aiming for a more straightforward and equitable tax regime in the upcoming budget. Read more here.

Scottish economist James Wilson presented the inaugural Indian Budget 163 years ago in 1860. Following Independence, the first Budget was presented by Finance Minister RK Shanmukham Chetty on November 26, 1947.

The gig economy in India refers to a work environment where temporary, flexible jobs are commonplace, often facilitated through digital platforms. Individuals, known as gig workers, perform tasks or projects on a freelance basis, such as driving for ride-sharing services, delivering goods, or providing online services like graphic design or content writing. Examples of the gig economy in India include Ola, Zomato, Swiggy, Urban Company and others.

This model allows workers to choose their hours and locations, providing flexibility but often lacking traditional job benefits like healthcare or job security. The gig economy is rapidly growing in India due to increasing internet penetration, smartphone usage, and the desire for supplementary income or flexible work arrangements.

Pratik Kamdar, CEO & Co-Founder Neuron Energy, says that one critical expectation is the revision of GST for entry-level two-wheelers and a uniform 5% GST on all Electric Vehicle (EV) spare parts, which would create a more equitable tax structure, fostering widespread EV adoption.

“A cornerstone of our expectations is the unveiling of FAME-III (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles). Learning from the challenges of FAME-I and FAME-II, FAME-III must adopt a cohesive strategy to accelerate EV adoption. Subsidising financing options will make EVs more accessible, and reducing the GST on batteries by 13% could make EVs significantly cheaper, bringing them on par with conventional vehicles,” he adds.

Dharmendra Raichura, VP Finance at Ashar Group, a Mumbai-based leading luxury real estate developer, says that he is seeking measures to enhance housing accessibility and affordability.

“One such proposed initiative could be to increase tax exemption limits on both the principal and interest paid on home loans. Additionally, providing tax incentives for developers focusing on affordable housing could stimulate supply to meet the growing demand in both urban and rural areas. Reintroducing a 100% tax holiday for affordable housing projects under Section 80IBA is also recommended,” he says.

In the new tax regime introduced in Budget 2023, the maximum non-taxable income for an individual is set at Rs 3 lakh.

For the fiscal year 2023-24, a rebate of Rs 25,000 is available under section 87A if total income does not exceed Rs 7 lakh, thereby making income up to Rs 7 lakh non-taxable.

In contrast, under the old tax regime, the rebate limit under section 87A remains at Rs 5 lakh.

Under the old tax regime, individuals can benefit from various exemptions and rebates. Initially, the maximum non-taxable income threshold is Rs 2.5 lakh. For the fiscal year 2018-19, there is a rebate of Rs 2,500 under section 87A applicable if total income does not exceed Rs 3.5 lakh.

Starting from fiscal year 2019-20 onwards, this rebate has been raised to Rs 12,500 for incomes up to Rs 5 lakh, effectively making income up to Rs 5 lakh non-taxable.

By utilizing tax-saving investments under section 80C, up to Rs 1.5 lakh, individuals can extend this non-taxable income limit further to Rs 6.5 lakh.