In just 10 days, the Union government will present the Budget 2023-24 in the Parliament. BJP leader Nirmala Sitharaman, who holds the finance portfolio, will present the Lok Sabha on July 23. She had held extensive consultations with various stakeholders and industry experts ahead of the upcoming Budget. Prime Minister Narendra Modi on Thursday also held a high-level meeting with economists on Thursday to gather suggestions. The Budget for 2024-25 marks a pivotal economic document for the Modi 3.0 government, set to outline a roadmap towards India’s development as a developed nation by 2047. Meanwhile, the Opposition is all set to hold the government accountable over several issues in the nation. The Congress had posed several questions to the finance minister and asked her to address them during the Budget Session.
Planning for the Union Budget of 2024 requires a focused approach to the policy of pushing the manufacturing sector toward technological advancements. Another significant factor in encouraging the sector's growth will be policies that reduce capital costs and offer tax holidays to new enterprises.
"Spending on infrastructure can be crucial for improving supply chains and improving operational efficiency, particularly for the transportation sector. Along with this must be plans that enhance skills through industry-academia partnerships. This will ensure that our labor force is ready to adapt to the ever-changing demands of modern manufacturing.
These steps, along with a focus on reducing operating costs, will enable the manufacturing sector to survive in a more favorable environment. As we are awaiting the upcoming budget, we hope that these areas will receive the attention they deserve to promote innovation and long-term growth within the industry," Dhawal Gupta, Co-founder of Subhot Enterprises said.
The upcoming Budget 2024 in India is expected to emphasise sustainability while addressing various sectoral demands and maintaining economic far-sightedness.
Prassann Daphal , CEO at Recyclekaro reveals key expectations of EV Battery and Recycling Sector:
- Reduction in GST: The Goods and Services Tax (GST) on waste lithium-ion batteries is expected to be lowered from 18 to 5 per cent, in line with the GST rate on lead-acid batteries, which is a significant anticipation.
- Extension of FAME II Scheme: Stakeholders in the industry are pushing for the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) program to be extended and possibly expanded. This extension is essential to sustaining the momentum behind EV adoption and encouraging battery recycling.
The government's goal of having 30 per cent electric vehicles on the road by 2030 will only be met with the expansion of the FAME program, which the electric vehicle industry is pressing for.
- Production-Linked Incentive (PLI) Scheme: With the support of this program, the recycling industry would be encouraged to grow and make a substantial contribution to India's sustainability objectives. The government may support the expansion of the industry by expanding the PLI plan to include the whole value chain, from manufacture to recycling.
- Incentives for Green Energy Projects: It is anticipated that the budget would include further incentives for renewable energy initiatives, such as battery recycling, which is essential to the clean energy transition and the circular economy. It is envisaged that there would be incentives for creative waste management systems and simplified recycling rules.
- Investment in R&D: Another crucial expectation is higher funding for research and development of battery recycling infrastructure and technologies. Improving domestic battery recycling capabilities and lab space can help the local industry expand while lowering reliance on imports.
The Budget presentation will be televised live over multiple platforms, such as Sansad TV, Doordarshan and on the official website of Finance Ministry.
Manikanth Challa, Founder & CEO, Workruit said the integration of AI and machine learning has revolutionised the hiring process, making it more efficient, inclusive and accessible. The expectations from this budget are centered on continued support for digital infrastructure and technology-driven solutions that can streamline recruitment and foster entrepreneurial growth.
"We are looking for increased investment in AI research and development, enhancing talent acquisition and matching candidates with the right opportunities more accurately.
However, it is evident that many colleges and educational institutions are still lacking in technology, infrastructure and resources. We believe that the upcoming budget should prioritise substantial investments in educational technology and infrastructure," Challa said.
The government is poised to launch the ‘Agri Fund for Startups and Rural Enterprises’ (AgriSURE) to support agripreneurs. According to an official statement released on Friday, the fund would make sector-neutral investments, debt alternative Investment Funds (AIFs) and provide direct equity support to start-ups in the agriculture and related industries.
Mohan Krishnamurthy Madwachar, Country Manager, Sattrix, said, "As we anticipate the upcoming Union Budget of India, we look forward to increased allocation for cybersecurity initiatives. This funding could enhance infrastructure to handle larger data volumes and complex threats, improving detection and mitigation capabilities. Investments in cybersecurity education are crucial to address the talent shortage. Lowering GST on cybersecurity products and services would make them more accessible, encouraging broader adoption."
He further added that introducing tax breaks for companies utilising SOC services would incentivise robust cybersecurity investments, potentially expanding our client base. Supporting Public-Private Partnerships (PPPs) would combine government resources with private sector expertise, fostering a stronger national cyber defense strategy.
The Union Budget is traditionally presented in Parliament at 11:00 am, and this year will be no exception. On July 23, Finance Minister Nirmala Sitharaman will deliver the Union Budget at 11:00 a.m.
The market expects an Import duty cut in Gold from 15% to 10% and for Silver import duty to be at par with Gold under CEPA with changes in the import duty being top priority. Some refineries in India have been importing unrefined gold from LDCs under zero duty, so stopping Import Duty benefits from LDC and FTA countries is expected as it distorts a level playing field.
"With IIBX at GIFT city emerging as a gateway to import bullion, bullion players want all import and export of gold to happen through IIBX. A special benefit of 0.5 per cent should be given for importing gold," Sachin Kothari, Director Of Augmont - Gold For All said.
Market participants also like the setting of a Jewellery Export Center at GIFT City for domestic smaller traders. Since the Gems and Jewellery market is regulated by SEBI, RBI, DGFT, Ministry of Finance, Ministry of Commerce, etc, market players want a single regulator in this market and also 100 per cent bullion trade to be moved through Commodity Exchanges.
"Sovereign Gold Bond has become very popular in India and gaining a lot of attraction. However, The interest earned from Sovereign Gold Bonds is subject to taxation as per the regulations, if redeemed before eight years. Market participants want the interest income on SGB to be made tax-free, to attract more investors in this scheme.
Other expectations are the establishment of GST bonded warehouses, mandatory hallmarking across India for all jewellers, permitting EMI on jewellery purchases and allowing lending and borrowing through commodity exchanges," Kothari added.
Parliament's Budget Session will convene on July 22, according to the official announcement. On July 23 Sitharaman will present the Union Budget while August 12 is when the Budget Session will end, according to Rijiju.
"The upcoming budget is going to be crucial to brace the momentum of consumption, especially in rural. The government should certainly double down on their agricultural and rural development initiatives, which inevitably would boost income levels and consumer spending. I hope we get more clarity on the formulation of the National Retail Policy, which in my opinion would be a game-changer! Affordable and low interest credit, stability of tax rates (GST) for staples and push for digitisation, is what the Indian retail space needs to continue the consumption wave," Sameer Gandotra, Founder & CEO, Frendy said.
Ahead of the union budget 2024, the prices of tomato in Delhi on Saturday stood at Rs 77/kg, down from Rs 168/kg a year ago. In Maharashtra, prices were Rs 72.47/kg, while the retail price stood in West Bengal at Rs 71.35/kg on July 13, according to data from the Department of Consumer Affairs’ Price Monitoring Division.
Sanjay Choudhari, Chairman at SBL Energy said that the energy sector operates in a high-risk industry landscape due to which industry eagerly looks forward to targeted support in the upcoming budget. "We advocate for subsidies or incentives to alleviate high production costs and encourage investments in safety measures. Increased funding and specific allocations within PSU initiatives are critical for sustainable growth. The industry needs adherence to stringent safety protocols and often seeks regulatory reforms or relaxed norms to streamline operations without compromising safety," he added.
Additionally, prioritising support for training and skill development programs is essential for the industrial explosive sector to enhance safety standards and operational efficiency.
GST (Goods and Service Tax) is a unified tax system that replaced multiple indirect taxes levied by both the Central and State Governments. Under GST, both the Central and State Governments share the authority to levy and collect taxes on goods and services. This has led to greater harmonisation and uniformity in the tax structure across States, promoting economic integration.
-Fiscal Deficit: This is the difference between the government's total revenue (excluding borrowings) and its total expenditure. It indicates how much the government needs to borrow to meet its expenditure requirements.
-Revenue Deficit: It arises when the government's revenue expenditure exceeds its revenue receipts (excluding borrowings). It signifies the shortfall in revenue to cover regular expenses, excluding capital investments.
Mamta Shekhawat, Founder, Gradding.com, says, "There is an urgent need to bridge the digital divide created by the pandemic. During that time, the internet was flooded with information, leading to an infodemic. Not only this, but cyber crimes have also increased. So, there is a need to launch digital literacy campaigns to make the youth aware of the happenings. This will also help them make wise decisions. It is seen that the decisions of youth get influenced and manipulated easily because of social media.
The Union Budget 2024 is expected to significantly change the nation's educational framework. This could include a greater emphasis on technology integration. In addition, it can also focus on practical exposure, vocational training, upskilling, and more for a dynamic education system.
It is also seen that rupees 11.11 lakh crores are unused every year, which can be used wisely for the welfare of India. Also, last month, the international campus of Nalanda University was inaugurated by PM Modi. It has close roots in traditional education, where practical learning was prioritised. So, we anticipate the Modi 3.0 cabinet to allocate some funds towards developing higher education institutes where research and practical learning are the utmost priority.
Besides, the last few years have seen a reversal of the brain drain. This is so because Indian students are increasingly contributing their talents to our nation's growth story. Thus, if the government wants to continue this, then it must take new initiatives such as lowering tax rates on education loans and increasing scholarships.
Hence, the new budget is expected to favour our tech-savvy youth, which will drive our nation towards growth."
Hariom Seth, Founder, Tagglabs, says, "The budget has been focusing on the education sector with a steady increase in budget allotment. However, there should also be a focus on incorporating AI and technology in the education system, pan India. Thoughtful implementation of technology can be a great enabler in experiential learning in fields such as sports, music, arts etc.
The focus should be on using tech in spaces such as sports facilities, hobby based clubs, museums, art galleries etc. to enhance the overall learning experience for such a young country. These spaces will not only encourage learning but the creative use of technology will inspire innovation and entrepreneurship. This will lead to the creative use of technology in not just existing areas but in newer areas."
Rishi Agarwal, Co-founder and CEO of TeamLease RegTech, says, "The 2024 Union Budget will shape the next 5 years and lay down the groundwork for our $10 trillion GDP goal. Taking things forward from 2023, we can expect ease of compliance to stay on top of the finance minister’s priorities. Emerging areas, including the gig workers and AI will be on the agenda. In her previous budget speech, the Finance Minister alluded to leveraging PAN as a common business identifier and the introduction of Entity DigiLocker, propelling EoDB.
I expect to see more announcements about its implementation. These reforms will lay down the plumbing for Digital Public Infrastructure (DPI) for corporates in the long run. We also saw the successful passage of the Jan Vishwas Act through the legislative process last year. This points towards the positive intent of the government to remove the entrenched hostility and deep-rooted criminality within the business regulatory framework.
Now, I expect further action at the union and state levels toward decriminalising India’s employer compliance ecosystem. There also needs to be an enhanced focus on renewable energy infrastructure, infrastructure development, and domestic manufacturing. In the first year of its third term, the government has an incredible opportunity to lay the agenda by signaling regulatory reform for economic development and job creation."
Delphin Varghese - Co-founder and Chief Revenue Officer, AdCounty Media, says, "The Indian advertising industry is projected to grow at a CAGR of 9.86 % and surpass the 1 lakh crore mark by 2025. This upward trend can be attributed to digital advertising which has emerged as one of the fastest growing segments in the world. Digital is dominating the APAC ad market and it is anticipated to grow at 8.5% in 2024.
Therefore, the Union Budget 2024 ought to direct its focus towards the digital ecosystem encompassing initiatives to broaden infrastructure, bolstering digital and physical marketing initiatives, to help brands connect with their audiences at scale.
Also, exemptions in taxes and duties like subsidies or accessible credit could significantly benefit the advertising sector and boost employment opportunities through startups. With the rampant growth of AI, the need to develop a robust cybersecurity infrastructure to protect consumer data while leveraging personalisation is now more crucial than ever."
Gross Domestic Product (GDP) in India is a key indicator of the country's economic health, representing the total value of all goods and services produced within its borders in a specific period, typically a year. It is calculated by adding consumption, investment, government spending, and net exports. India's GDP growth rate reflects its economic expansion or contraction and is pivotal for policymaking and economic planning. The sectors contributing significantly to India's GDP include agriculture, manufacturing, services, and increasingly, the digital economy. GDP figures are crucial for assessing economic performance, making comparisons with other countries, and formulating development strategies.
Revenue Budget: The Revenue Budget comprises the government's expected revenue receipts and expenditures for the upcoming fiscal year. It includes revenue generated from taxes (like income tax, GST), non-tax sources (like dividends from public sector enterprises), and grants-in-aid from the central government. On the expenditure side, it covers day-to-day expenses of running government departments and various services, such as salaries, pensions, subsidies, and interest payments on loans.
Expenditure Budget: The Expenditure Budget, also known as the Capital Budget, outlines the government's planned capital expenditure for development projects and investments. It includes spending on infrastructure development (such as roads, railways, and irrigation), acquisition of assets (like land, buildings), and investments in public sector enterprises. The Expenditure Budget aims to boost economic growth, enhance productivity, and improve the country's long-term infrastructure and industrial capacity.
Budget Estimates (BE) and Revised Estimates (RE) are integral components of the annual budgetary process. BE are initial projections of government revenue and expenditure for the upcoming fiscal year, presented by the Finance Minister in Parliament. They outline planned allocations across sectors like education, health, infrastructure, and defence, aiming to meet developmental goals and fiscal targets.
RE are revised projections made later in the fiscal year, typically around mid-year, based on actual revenue receipts and expenditure patterns. They account for changes in economic conditions, policy priorities, and emerging needs, offering a more accurate financial outlook compared to BE. RE enable the government to adjust spending plans, reallocate resources, and ensure effective utilization of funds.
Both BE and RE play critical roles in India's fiscal management, guiding economic policies, and providing transparency in financial planning. .
LC Mittal, Director, Motia Group, says, "The infrastructure push in Budget 2024-25 might revolutionize real estate investment landscapes. The planned expansion of metro rail networks in 25 cities by 2025, which is pegged to see investment worth Rs 4 lakh crore, is expected to create prime opportunities in transit-oriented development. We might see integrated townships come up along these corridors providing returns of 20-25% over 5-7 years. The expected allocation of Rs 1.5 lakh crore to the renewable energy infrastructure may give rise to the development of green buildings and sustainable communities — a segment expected to grow at a 13% CAGR till 2027.
However, further wood behind the arrow would include if a budget turned its focus to addressing the ₹16 lakh crore funding gap in infrastructures through measures, for example, a credit enhancement of municipal bonds, opening new avenues for REITs in the infrastructures asset space.
It may potentially provide stable yields of 7-9% a year, which may make it slightly appetizing for risk-averse investors in a particularly volatile market."
Anurag Goel, Director at Goel Ganga Developments, says, "With the government's ambitious investment target to the tune of Rs 111 lakh crore in infrastructure up to 2025 under the National Infrastructure Pipeline, we expect a significant spillover in real estate investments.
The proposed Rs 25 lakh crore just for road infrastructure could unclog new real estate hotspots along significant corridors. Besides, there was also the planned investment of Rs 19 lakh crores in urban infrastructure, which could act as a harbinger of change in the entire landscape of urban regeneration projects and open up lucrative opportunities in the city centre.
Emphasis on affordable housing, with a promise to build 2 crore houses by the year 2025, may certainly create new vistas for investors in the mid-income segment. In addition, with the expected Rs 3 lakh crore allocation for digital infrastructure being a reality, data centre real estate and smart city projects sprung up, promising 14-16% returns for early investors."
A Kulandai Vadivelu, Chief Financial Officer, TVS Electronics (TVS-E), says, "There is a pressing need for a growth-oriented tax environment to catalyze India's economic progress and from the Upcoming Union Budget, we expect The Finance Minister to look at reforming the Goods and Services Tax (GST) structure, including rationalization of rates and simplification of compliance procedures. The manufacturing sector is very capital-intensive and the introduction of tax holidays and enhanced input credits for upcoming manufacturing units will be crucial in stabilizing operations and expansion. Overall, industry-friendly tax assessments can reduce the time and effort spent on compliance and in turn allow companies to focus on growth."
Mahesh Krishnamoorthy, Managing Director, Core Integra, says, "Being the election year, the salaried class would have high expectations from the Budget. Few asks could include raising the basic exemption slab to at least 5 lacs and simplifying the tax rates to 10%, 20% and maximum 30% along with eliminating the surcharge and cess. Income Tax Returns could be simplified for Employees who have not other source of income other than salary, the submission by the Employer along with TDS as applicable must be considered as auto filing of returns."
In just 10 days, the Union government will present the Union Budget 2023-24 on July 23. Union Finance Minister Nirmala Sitharaman will present the Budget in the Lok Sabha. President Droupadi Murmu, during the joint session of the Parliament, had said that the Budget will have several "historic steps".
Abhinav Kalia, CEO and Co-Founder of ARC Electric, said, "As we approach the upcoming budget, the EV industry is hopeful of significant support from the anticipated FAME 3 subsidy. The industry has high expectations that this substantial backing will accelerate the adoption of electric vehicles in India. An increase of approximately 50% in the budget for FAME III, from the Rs. 10,000 Crore outlay of FAME II, seems reasonable. This enhanced funding will be utilised for extending subsidies to both manufacturers and consumers, creating a favorable environment for EV growth."
He further added that the industry also expects significant investments in charging infrastructure to address range anxiety and promote EV usage. "The budget may also consider prioritising developing indigenous battery technology and manufacturing capabilities, reducing import dependency, and fostering self-reliance. Additionally, tax benefits and incentives for research and development in the EV sector will spur innovation and technological advancements," he added.
He also highlighted that the FAME 3 subsidy is expected to consider integrating EVs into public transportation to enhance urban mobility and reduce carbon emissions.
The real estate sector in India has high hopes for Union Budget 2024-25, anticipating reforms to boost housing, office spaces, and commercial areas. Key expectations include interest subsidy programs to make home loans more affordable, strategic use of government land to lower project costs, and tax incentives to counter rising raw material and land prices.
"The industry also seeks the revival of the Credit-Linked Subsidy Scheme (CLSS) and reduced stamp duty to enhance affordability. Additionally, granting 'industry status' to the housing sector and incorporating real estate under GST with a simplified structure could spur growth and investment. The commercial real estate segment seeks tax credits and incentives for redeveloping older areas and digital transformation initiatives. Meeting these demands could revitalize affordable housing, stimulate job creation, and position the real estate industry as a key driver of economic growth," Anoop Bhargava, Director and CEO of Empire Centrum said.
Jay Lakhani, Co-founder of Jay TechnoChem said that the forthcoming budget has very good prospects for the chemical sector. "What we really expect from the budget is greater support toward the digitisation of chemical trading. It has to be policies along the lines of tax incentives for adoption of technology and investments in the digital infrastructure that would hugely pay off to companies like us in streamlining operations and bringing about transparency. Advanced technologies offer a lot of aid for the chemical industry. State-of-the-art solution introduces supply chain management, improves safety standards, and provides real-time minute-by-minute market data for decision-making," Lakhani added.
Abhay Deshpande, Founder and CEO, Recykal, said, "Formalising and upskilling the informal workforce holds immense potential for employment generation within sustainable waste management. Additionally, improved infrastructure will not only contribute to a greener, more sustainable India but also boost the overall job market. By prioritising the informal waste management sector in the upcoming budget, the government can unlock a future of environmental responsibility and economic prosperity. Furthermore, aligning recycling efforts with green investment initiatives can attract much-needed financial resources towards sustainable waste management practices. This creates a win-win, bolstering the sector while contributing to India's green agenda."