Budget 2024 Expectations Highlights: With general elections looming, how will Interim Budget shape the fiscal landscape for the year ahead?

Nikhil Tiwari and Nishant Garg, Founders of Millet Superfood: Last year, The UN’s declaration of 2023 as the International Year of Millets underscores the government’s commitment to promoting these nutritious grains. Throughout the year, numerous awareness programs on millets have been implemented. The 2023 budget, featuring Shree Anna and designating the Indian Institute of Millet Research (Hyderabad) as a center of excellence for research and technology advancements, signifies a significant stride in this direction. To further bolster this momentum, increasing the budget for the PLI scheme for millet-based products, introducing new financial incentives for farmers and exporters, and formulating advisories for institutions to include millets in canteens can be explored. Additionally, rallying environmental and social activists and influencers to leverage modern platforms for millet advocacy will educate and inspire the younger generation to embrace millets.

POLICY & ECONOMY

SECTORS

Rajat Jaiswal Co-founder & CEO of Keydroid:

We at KeyDroid look forward to the Union Budget 2024, recognizing the relevance it holds amidst global uncertainties, inflation, and economic deceleration. As innovators in smart key upgrades, we seek comprehensive support across the automotive ecosystem, benefitting consumers, OEMs, and suppliers alike. Given the sector is witnessing a transformative shift in consumer expectations, rapid technology adoption, and evolving competitive dynamics, we advocate for budgetary measures that include skilling programs, fostering a qualified workforce to meet future demands. Also, as the EV segment is yet to reach maturity, we call upon the government’s attention towards prolonged clean mobility initiatives and schemes. Moreover we hope for continued support and resources that streamline compliance, enhancing the ease, cost, and speed of doing business in the automotive sector.

Dr Mahendra, Partner, Reliaable Developers:

“The industry is on the precipice of transformation, and we are hopeful for continued incentives by the government supporting the realty sector. We believe that strategic policy measures can significantly impact the industry’s trajectory and contribute to the nation’s progress. Allocating funds for the development of infrastructure in identified growth corridors can catalyze real estate development. Well-planned roads, connectivity, and utilities will make these areas more attractive for both developers and residents. Through this, continued support for the Smart Cities mission will contribute to the development of modern, technology-driven urban centers. This, in turn, will attract investments and create opportunities for innovative real estate projects.

Additionally, since the metro cities are moving towards sustainability with the government’s push, encouraging sustainable practices in real estate development is imperative. Financial incentives, such as tax breaks and grants, for projects incorporating green building technologies will align with the nation’s commitment to environmental conservation.”

Deepak Pahwa, Director, Delair

“With less than a fortnight left for the Budget, the pharma industry is hopeful of receiving some major boost from the government. Where India ranks 3rd globally in terms of pharmaceutical production by volume, we are expecting incentives and policies that will strengthen the export prospects of the country. Therefore, in order to reinforce the pharmaceutical supremacy of the country across the globe, in the upcoming budget the government should allot over 2.5% of the pharmaceutical investment towards boosting the manufacturing capacity of the pharma products while ensuring that the products are of the highest quality. The budget should be strategically allotted to promote innovation and tailoring manufacturing practices to meet the rising demand projected in the market while being at par with international standards. On similar lines, to further accelerate the growth of the pharma industry, the upcoming budget should incessantly focus on bolstering the R&D capability to strengthen the manufacturing landscape with the integration of cutting-edge technologies and highly efficient equipment.” Said Mr. Deepak Pahwa, Director, Delair

Abhishek Kapoor, CEO, Regency Hospital:

Dedicated policy and regulatory support from the government have driven substantial growth in the Indian healthcare sector. With the upcoming interim Union Budget 2024–25 on the horizon, we eagerly await a roadmap that addresses universal healthcare (UHC). This roadmap should emphasize long-term infrastructure financing, the expansion of medical and nursing colleges, and the implementation of fiscal reforms in the health insurance sector. Recognizing the imperative for a dedicated regulator in the hospital sector, leveraging organizations like the National Accreditation Board for Hospitals & Healthcare Providers (NABH) could streamline compliance and enhance transparency.

The Union Budget should prioritize elevating research and development infrastructure, implementing tax rationalization, and preparing for a $50 billion MedTech economy. Expectations from the MedTech industry include advocating for reduced import duties which would create a win-win situation for manufacturers and large hospitals, ultimately benefiting patients. We advocate for a boost in healthcare spending to 2.5 percent of GDP, envisioning a healthcare landscape that effortlessly integrates technology, prioritizes sustainability, and ensures widespread accessibility. The union budget should resonate with this vision, allocating significant resources to innovative initiatives that enhance our nation’s preparedness against health emergencies. To address the escalating burden of non-communicable diseases (NCDs), we urge the implementation of comprehensive screening and diagnostics programs, coupled with the expansion of skilling courses for health professionals.

Probal Ghosal, Executive Chairman, Ujala Cygnus Group of Hospitals:

“Anticipating the upcoming budget, we expect the Government to increase budget allocation on health to 2.5% of the GDP, besides the focus on elevating healthcare in Bharat and Rural India. In addition, we expect a rationalization of the GST framework and a reinforced healthcare value chain. One of the most important features of GST is to boost the competitiveness of businesses by ensuring the free flow of input tax credits across the value chain. However, we would expect further GST rationalization for the availability of input credit. Apart from that, it is imperative to prioritize capacity building and the training of healthcare professionals to effectively address the escalating demands within our nation. We also expect the budget to touch on certain key aspects like enhancing healthcare infrastructure in Tier 2 and 3 cities by granting it infrastructure status for private sector investment and ensuring low-cost funding and tax benefits. Apart from that, there is a need to emphasize sustained liquidity incentives, particularly for Rural India’s emergency healthcare. Encouraging private investment in medical colleges through measures like land allotment, subsidies, and loan moratoriums is expected as well. There is a need for mandating doctor rotations and incentivizing specialists in Tier 2 and 3 cities as well to aim for equitable medical expertise distribution. We also propose budgetary allocation for primary care, higher tax exemptions, and Primary Health Centre (PHC) expansion via public-private partnerships (PPPs). In digital infrastructure, the integration of government schemes under the National Health Authority is recommended for a unified digital platform, enhancing efficiency and expediting payments for private healthcare providers. Overall, we advocate a comprehensive approach, addressing infrastructure, manpower, patient support, and digitalization for a resilient and accessible healthcare system.”

Sumit, CEO and Co-founder at DashLoc:

As we eagerly await the Finance Budget 2024, DashLoc envisions a budget that champions startups, fostering Artificial Intelligence (AI) research and innovation for resource generation and employment opportunities. Expecting initiatives promoting tailored upskilling programs in AI, we look forward to partnerships between educational institutions and the industry, ensuring a steady pipeline of skilled professionals for the tech sector. In India’s retail-dominated market, the government’s ONDC platform is set to transform purchasing patterns over the next five years. Finance Budget 2024 therefore also presents an opportunity to enhance innovation and community-centric solutions, strengthening the role of startups like ours in reshaping hyperlocal discovery with a keen emphasis on personalization and precision.

Balachander Sekhar, Co-founder of RenewBuy:

“While urban areas show promising signs in retirement preparedness, smaller towns and cities exhibit a substantial gap in retirement savings. Annuity products stand as a critical avenue for post-retirement income. Thus, it becomes imperative for the government to consider reducing or even eliminating taxes on these products. Such a move could incentivize more individuals to actively secure their financial futures, effectively addressing the pressing challenges associated with retirement planning.

The vision of “Insurance for All by 2047” demands strategic planning, especially in the upcoming budget. The government can pave the way for a more inclusive and secure future through insurance during Budget 2024-25, where insurance is made for affordable, incentivizing, and accessible to masses.”

Hari Subramaniam, Founder & Director, LifeSigns:

“Anticipating the forthcoming 2024 Budget, there is a collective call for the Government to amplify its investments in healthcare infrastructure, providing an environment conducive to the affordable blossoming of creativity. Recognizing the unique hurdles faced by emerging healthcare ventures in engaging traditional investors, there is a strong plea for targeted support within incubation centers, fostering the growth of pioneering firms. This not only enhances the industry but also bolsters the ‘Make in India‘ initiative. Government intervention holds the key to the enduring prosperity of the healthcare sector, paving the way for the flourishing of new enterprises. The hopeful expectation is for a budget that not only ignites innovation but also champions inclusivity, laying the groundwork for a healthier, more self-reliant nation.”

“We are anticipating a growth-oriented budget where real estate thrives as a cornerstone of progress with policies that nurture sustainable development, incentivize innovation, and foster the housing segment with significant tax breaks. The Indian real estate industry rose massively in 2023 with a slew of projects be it residential or commercial. Maintaining similar optimism, we await the Union Budget with the provisions for the single window clearance system for greater transparency and efficiency. We would also like the administration to grant the most awaited ‘Industry’ status to the real estate sector,” Santosh Agarwal, Executive Director and CFO, Alphacorp told ANI.

Anticipated in the upcoming interim budget, experts are hoping for an elevation in income tax exemption limits, support for women entrepreneurs, the implementation of a sustained taxation policy, and initiatives to stimulate consumption and savings, reported PTI. As the interim budget is set to be presented by Union Finance Minister Nirmala Sitharaman on February 1, just before the Lok Sabha elections, demands also include equalization in taxation across companies, partnerships, and limited liability partnerships. While acknowledging the interim nature of the budget, there is optimism that it may provide indications of benefits akin to a full budget. All India Federation of Tax Practitioners national president, Narayan Jain, suggests the possibility of concessions for individual taxpayers, including a potential increase in the overall tax exemption limit to Rs 8 lakh from the current Rs 7 lakh, inclusive of rebates. Bharat Chamber of Commerce president, N G Khaitan, emphasizes the necessity for a prolonged taxation policy and equal taxation standards for companies, partnerships, and limited liability partnerships (LLPs) to create a fair environment for small and medium-sized enterprises.

Lohit Bhatia, President, Indian Staffing Federation:

While this is an interim budget, giving a timeline to implementation of Labour codes will be helpful especially at a time when India is attracting FDI in manufacturing in particular and new investors will find the labor code increases the country’s ease of doing business dramatically. The lack of a women workforce is another concern, the government can allow companies to use their CSR funds to create Dormitories for women workers near their manufacturing plants which can encourage more young girls to join Formal work and enjoy a safe and stable environment. Another initiative could be to provide transportation for women workers in urban areas, especially for night duty personnel, such buses should be under a special fund that allows Women only, including women drivers and conductors. India has the maximum participation from MSME sector and is the real powerhouse for increasing women participation in the workforce. However, if they are hiring women in the workforce, they need support towards maternity benefits as a subsidy, as this has notably become an additional burden for MSME and discourages the government’s agenda to create more opportunities for women in the workforce for MSMEs.

Also, the segments to create formalization in domestic workers need a government impetus to drive the change. One of the suggested ways will be to incentivize taxpayers through tax rebates for individuals who are contributing to formal employment through social security, and minimum wages towards domestic workers in their homes. The Government can approve a special standard deduction for all individuals who hire other persons at their homes and treat such individuals as employers provided the amount paid is above minimum wages, paid via a bank account that is Aadhaar-seeded.

The Budget can make provisions to encourage employer organizations to invest on skilling their existing workforce and making them future- ready. Companies that create 1st time formal jobs mainly in the frontline segment where majority of the job seekers have incomplete education should be encouraged to hire from different regions and bring them not only into formal employment, but also link them to skilling ecosystem, especially for expert services, as the skills required in workplaces are evolving constantly with disruptive technological advancements.

Yatin Gupte, Chairman and Managing Director, Wardwizard Innovations & Mobility Ltd.:

The visionary stance of the Union Budget 2023-24 towards sustainable mobility played a pivotal role in the successful realization of the target of 1 million electric two-wheelers, providing crucial support to the industry. Looking ahead to the Union Budget 2024-25, there is anticipation for a further boost in support for Electric Vehicle (EV) infrastructure in the country. Optimism surrounds the potential reduction in both input and output Goods and Service Tax (GST) for EVs and spare parts—a move that would significantly enhance accessibility and broaden the reach to the masses. Additionally, hopes are high for increased financing opportunities, propelling research and development to a larger scale. This, in turn, would open doors for substantial investments in the ecosystem, accelerating India‘s overall adoption of electric vehicles. A crucial aspect lies in the call for added incentives specifically directed at Indian Original Equipment Manufacturers (OEMs), aiming to stimulate advancements in localizing EV technology, fortifying the indigenous industry, and contributing to a more self-reliant and progressive economic landscape for the industry.

Hari Subramaniam, Founder and Director, LifeSigns:

Anticipating the forthcoming 2024 Budget, there is a collective call for the Government to amplify its investments in healthcare infrastructure, providing an environment conducive to the affordable blossoming of creativity. Recognizing the unique hurdles faced by emerging healthcare ventures in engaging traditional investors, there is a strong plea for targeted support within incubation centers, fostering the growth of pioneering firms. This not only enhances the industry but also bolsters the ‘Make in India‘ initiative. Government intervention holds the key to the enduring prosperity of the healthcare sector, paving the way for the flourishing of new enterprises. The hopeful expectation is for a budget that not only ignites innovation but also champions inclusivity, laying the groundwork for a healthier, more self-reliant nation.

Beas Dev Ralhan, CEO, Next Education:

In the forthcoming budget, we anticipate a targeted increase in the education budget with a specific focus on EdTech initiatives. This might involve allocating funds for the development of digital infrastructure, content creation, and training programs for educators in technology integration. Additionally, we hope to see tax incentives for EdTech startups, aiming to foster growth and innovation within the sector.

To enhance both quality and accessibility, we look forward to the government establishing a comprehensive framework for evaluating and certifying EdTech content. This could include the implementation of national standards and the creation of accreditation bodies to ensure quality and prevent misinformation. Bridging the digital divide is another crucial aspect, where increased funding for rural broadband connectivity, affordable digital devices, and digital literacy programs will contribute to making online learning accessible to all.

Furthermore, we expect a proactive approach in fostering collaborations. Public-Private Partnerships (PPPs) between EdTech companies and educational institutions should be actively encouraged, leveraging expertise and resources for developing innovative solutions. Additionally, funding for research and development in EdTech, coupled with industry-academia collaboration, can be instrumental in driving innovation and elevating the overall quality of educational offerings.

Harshit Jain, Co-Founder and CEO, OnePlay:

India‘s startup industry isn’t just growing, it’s putting the entrepreneurs into a promising space to create something big. Ahead of the interim budget 2024, we are eagerly expecting some major announcements, and government support remains the top expectation. The industry expects incentives for R&D initiatives, tech-driven solutions, cybersecurity support, and measures to fuel startups navigating the evolving business landscape. We also hope the budget shines a spotlight on enhancing and simplifying funding opportunities. In addition to this, the integration of digital and tech infrastructure will stimulate innovation, empowering the entrepreneurs to transform the way existing business is done.

Ajath Anjanappa, CEO & Co-founder, Fabits:

This interim budget could be a crucial insight into the upcoming government’s economic policies. Besides the key themes being discussed by experts, here’s how I think fintech, and personal finance and investments in general, may be shaped by this interim budget:

Democratisation of taxes: The introduction of new slabs and wealth taxes will ensure a more progressive and inclusive tax structure. A revision in the income tax slabs can simplify the taxation structure for individuals and an increase in the basic exemption limit will reduce overall tax burden on lower-income individuals, making more room for investments.

Incentives for Clean Energy Investors: Investors can expect to be rewarded through tax exemptions for investments in renewable energy and sustainable practices.

Increased government spends on Defence budget: Due to rise of geopolitical tensions around the globe, the focus will strongly remain on defence with possible increased spends – the total allocation is expected to reach ₹6,35,085 crore (7% increase). Government initiatives are already bringing in these spends back into the economy through strategic partnerships (ex – HAL & GE partnership for knowledge sharing and defence manufacturing). The Nifty India Defence Index gave 91% returns in 2023, making this sector a hot property for investors

Increased government investments in Infrastructure: Government is also expected to prioritise rural and urban connectivity, railways, ports, aviation, and highways to make the bulk of population also contribute to the economy significantly with ease. Infrastructure-linked funds offered an average return of around 33.23% in the last three years. The Ministry of Road Transport and Highways has requested a budgetary allocation of Rs 3.25 lakh crore for FY 2024-25, marking a 25% YoY increase. Predict a 7% increase in CAGR between 2024-26.

Deepak Pahwa, Director, Delair:

With less than a fortnight left for the Budget, the pharma industry is hopeful of receiving some major boost from the government. Where India ranks 3rd globally in terms of pharmaceutical production by volume, we are expecting incentives and policies that will strengthen the export prospects of the country. Therefore, in order to reinforce the pharmaceutical supremacy of the country across the globe, in the upcoming budget the government should allot over 2.5% of the pharmaceutical investment towards boosting the manufacturing capacity of the pharma products while ensuring that the products are of the highest quality. The budget should be strategically allotted to promote innovation and tailoring manufacturing practices to meet the rising demand projected in the market while being at par with international standards. On similar lines, to further accelerate the growth of the pharma industry, the upcoming budget should incessantly focus on bolstering the R&D capability to strengthen the manufacturing landscape with the integration of cutting-edge technologies and highly efficient equipment.

Nikunj Agarwal, Head Debt & Lending Alliances – Propelld:

Ahead of the upcoming Interim Budget-24, there is a keen interest in the potential measures aimed for sustainable growth of new age Non-Banking Financial Companies (NBFCs) as these play a crucial role in ensuring last-mile financial inclusion for end customers. Government support for this sector will ensure sustainable growth for NBFCs within the fintech sector. Of key interest will be measures to ensure liquidity ease for new age NBFCs and supportive financial measures that could encompass favourable rates, regulatory flexibility, or direct financial assistance.

Dr Girdhar Gyani, Founder Director, Association of Healthcare Providers (AHPI):

Healthcare & Education are two pillars on which democratic framework can flourish. Beginning with new health policy in year 2017, government is decisively pursuing mission to realize universal health coverage. It includes making healthcare accessible and affordable. We need to more than double the number of beds to reach close to WHO mark of 3.5 beds per 1000 population. More so these beds are needed in deficient states in general and tier-III cities in particular. This will need big allocation in budget by the government. Along with this, government may bring incentives in the budget to promote private investment. Without having basic health infrastructure, we will not be able to have effective universal health coverage. Rationalizing of reimbursement tariffs under PRADHAN MANTRY JAN AYOG YOJANA needs priority attention to bring tertiary care hospitals under the scheme.

Besides increasing number of beds, we need to build allied health sector like pharmaceuticals and medical equipment/ devices. Most of medical diagnostic equipment are imported. We need aggressive push through incentives to bring more technology partners to invest in this sector through joint ventures and homegrown research. New technologies like AI, 3D Printing, Digital/ Smart Hospitals, Remote sensing/ monitoring gadgets will be needed to improve accessibility. Finally we need bigger allocation for promotive and preventive health initiatives including focus on; safe drinking water, nutrition and sanitation.

Budget Quote by Vineet Agrawal, Co-founder, of Jiraaf:

“The mood is upbeat for the Interim Budget 2024. The alternative income category overall has witnessed continued growth, and the fixed income category as part of that space is gaining even more prominence. The growth of the debt market is critical for the country. Availability of debt across all segments of borrowers especially MSME & new-age companies will fuel growth and employment. SEBI’s recent initiatives like enabling Online Bond Platforms (OBPP), making listing simpler and reducing face value for participation in debentures have been a boost to the industry. We hope the government will bring down the difference in capital gains taxation between equity and debt further to unlock more participation in debt instruments.” said Vineet Agrawal, Co-founder, of Jiraaf.

Dr. Ravinder Goyal, Co-Founder, Erekrut HR Automation Solutions Pvt Ltd:

As we approach the 2024 budget, the HR sector in India harbours specific expectations, particularly regarding policy reforms that currently pose challenges. A primary area of focus is the streamlining of labour laws, which were characterised as cumbersome, rigid, and difficult to follow. The sector thus anticipates reforms that would simplify these laws, making them more adaptable to the modern workplace, especially in terms of flexible working arrangements and remote work policies.

The segment could also benefit from the refinement of the Provident Fund (PF) and Employee State Insurance (ESI) schemes. The current structures of these schemes pose administrative challenges and often result in delayed contributions and settlements. An overhaul aimed at simplifying these processes could greatly enhance operational efficiency in HR management.

Moreover, the HR sector needs more supportive measures to nurture talent, specifically through enhanced tax incentives for employee training and development programs. This would encourage companies to invest more in upskilling their workforce, aligning with the evolving skill demands of the digital economy. Along with this, the expansion of tax benefits under schemes like Section 80-IAC, which currently has restrictive criteria, is desired to enhance accessibility to a broader range of startups.

In essence, the HR sector’s pre-budget expectations for 2024 revolve around policies that reduce compliance complexity, foster talent development, and support startups through more inclusive and flexible fiscal incentives. These changes are crucial for creating a more dynamic and responsive HR landscape in India’s rapidly evolving economic environment.

Nishant Pitti, CEO & Co-founder, EaseMyTrip:

In expectation of the Union Budget 2024, we earnestly expect crucial reforms to strengthen and revitalize the tourism sector. We expect the Government to allow GST input on holiday businesses, a strategic reduction in income tax to catalyze growth in the country’s tourism industry, and the streamlining of the TCS structure to a more favorable 5 percent slab. Additionally, we expect a comprehensive overhaul of tax exemption policies related to Leave Travel Allowance (LTA), urging the Government to consider an annual allowance and the inclusive coverage of the entire tour package cost under LTA, surpassing the limitation to only flight expenses. Predicting the realization of the full potential of domestic tourism, we look forward to a budgetary emphasis on infrastructure development, technology integration, and health-safety measures across airports, aviation, roads, railways, and waterways. Recognizing the vast, underleveraged potential of India‘s waterways, which includes sea and river cruising opportunities, we strongly urge the Government to undertake necessary measures for the development of this sector.

Balachander Sekhar, Co-founder of RenewBuy:

“The government should definitely look at tax reduction in annuity plans. Recent reports indicate that India‘s senior citizen population stood at 149 million in 2022, representing approximately 10.5% of the nation’s populace. Projections suggest a significant surge in this demographic by 2050, with an estimated doubling to 20.8%, totalling around 347 million individuals. Ensuring a secure retirement fund for this segment is crucial to prevent financial hardships post-60. While urban areas show promising signs in retirement preparedness, smaller towns and cities exhibit a substantial gap in retirement savings. Annuity products stand as a critical avenue for post-retirement income. Thus, it becomes imperative for the government to consider reducing or even eliminating taxes on these products. Such a move could incentivize more individuals to actively secure their financial futures, effectively addressing the pressing challenges associated with retirement planning.”

Rahul M Mishra, Director and Co-Founder of PolicyEnsure:

“Insurance sector experts are urging the budget to bring about significant changes to taxation, regulatory measures, and technology. They seek tax benefits for life insurance products, emphasizing relaxation in tax deductibility limits for premiums, particularly for term plans. A reduction in the GST rate on insurance premiums is desired to enhance affordability and accessibility. Additionally, experts are calling for the elimination of taxation on annuity returns to make them more attractive. Regulatory expectations involve easing minimum capital requirements for new insurers, introducing a composite license, and focusing on microinsurance for low-income groups. In the technology realm, support for InsurTech startups and a focus on cybersecurity are requested to foster innovation and protect against cyber threats. These measures collectively aim to make insurance more widespread, innovative, and financially inclusive.

The insurance sector anticipates regulatory flexibility in the upcoming budget, seeking a dilution of stringent laws to encourage market growth and innovation. Easing minimum capital requirements for new insurers is emphasized, aiming to remove barriers hindering new entrants and stimulating competition. The introduction of a composite license is proposed to streamline operations and reduce costs for insurance companies. This indicates a desire for regulatory measures that facilitate a more dynamic and efficient industry. Furthermore, support for InsurTech startups and a focus on cybersecurity demonstrate a need for a regulatory environment that encourages technological advancements while ensuring the security of sensitive data. Overall, these expectations align with a vision of a regulatory framework that balances innovation with risk management in the insurance sector.”

Tanmay Bhattacharya, Executive Vice President, Lexus India:

Despite global volatility, India’s economy has thrived, securing its position as the fifth largest and fastest-growing economy in the world. Various Government initiatives with a focus on infrastructure have drawn substantial investments, fostering growth and thereby paving the way for the emergence of more HNIs, especially younger, making it an exciting time for the luxury market in India.

The luxury automotive industry has also grown substantially in CY 2023, primarily riding on the change in consumer outlook owing to increase in disposable income. The consumer is most definitely reflecting a post pandemic phenomenon, the YOLO (you only live once) effect. The well-travelled consumers, with a propensity to spend is levitating towards sustainable luxury. In fact, this growth is not just noticed in Tier I markets but in Tier II markets as well.”

Mr. Atul Gupta- Co-founder & Director at e-Sprinto:

We at e-Sprinto eagerly anticipate Union Budget 2024, recognizing the undeniable surge in electric vehicle (EV) demand in India. With EV sales doubling from 2022 to 2023, reaching 89,137 units, the momentum is clear. To complement this growth, we urge a reduction in GST on lithium-ion battery packs and cells from 18% to 5%. Such a move will incentivize OEMs, fostering innovation and affordability in the sector. Additionally, the continuation of the FAME II Subsidy beyond its March 2024 expiration is crucial to sustain customer acceptance and support OEMs. Moreover, compulsory adoption of global ISO norms for battery swapping should be mandated by integrating voluntary IS standards into the Central Motor Vehicle Rules. This step will ensure quality assurance and uniformity in the EV industry, elevating standards for all stakeholders involved in the electric vehicle ecosystem. A forward-looking budget will not only propel the EV revolution but also solidify India’s position as a leader in sustainable mobility.

Mr Probal Ghosal ,Executive Chairman,Ujala Cygnus Group of Hospitals:

“Anticipating the upcoming budget, we expect the Government to increase budget allocation on health to 2.5% of the GDP, besides the focus on elevating healthcare in Bharat and Rural India. In addition, we expect a rationalization of the GST framework and a reinforced healthcare value chain. One of the most important features of GST is to boost the competitiveness of businesses by ensuring the free flow of input tax credits across the value chain. However, we would expect further GST rationalization for the availability of input credit. Apart from that, it is imperative to prioritize capacity building and the training of healthcare professionals to effectively address the escalating demands within our nation. We also expect the budget to touch on certain key aspects like enhancing healthcare infrastructure in Tier 2 and 3 cities by granting it infrastructure status for private sector investment and ensuring low-cost funding and tax benefits. Apart from that, there is a need to emphasize sustained liquidity incentives, particularly for Rural India’s emergency healthcare. Encouraging private investment in medical colleges through measures like land allotment, subsidies, and loan moratoriums is expected as well. There is a need for mandating doctor rotations and incentivizing specialists in Tier 2 and 3 cities as well to aim for equitable medical expertise distribution. We also propose budgetary allocation for primary care, higher tax exemptions, and Primary Health Centre (PHC) expansion via public-private partnerships (PPPs). In digital infrastructure, the integration of government schemes under the National Health Authority is recommended for a unified digital platform, enhancing efficiency and expediting payments for private healthcare providers. Overall, we advocate a comprehensive approach, addressing infrastructure, manpower, patient support, and digitalization for a resilient and accessible healthcare system.”

Abhishek Kapoor, CEO, Regency Hospital:

Dedicated policy and regulatory support from the government have driven substantial growth in the Indian healthcare sector. With the upcoming interim Union Budget 2024–25 on the horizon, we eagerly await a roadmap that addresses universal healthcare (UHC). This roadmap should emphasize long-term infrastructure financing, the expansion of medical and nursing colleges, and the implementation of fiscal reforms in the health insurance sector. Recognizing the imperative for a dedicated regulator in the hospital sector, leveraging organizations like the National Accreditation Board for Hospitals & Healthcare Providers (NABH) could streamline compliance and enhance transparency.

The Union Budget should prioritize elevating research and development infrastructure, implementing tax rationalization, and preparing for a $50 billion MedTech economy. Expectations from the MedTech industry include advocating for reduced import duties which would create a win-win situation for manufacturers and large hospitals, ultimately benefiting patients. We advocate for a boost in healthcare spending to 2.5 percent of GDP, envisioning a healthcare landscape that effortlessly integrates technology, prioritizes sustainability, and ensures widespread accessibility. The union budget should resonate with this vision, allocating significant resources to innovative initiatives that enhance our nation’s preparedness against health emergencies. To address the escalating burden of non-communicable diseases (NCDs), we urge the implementation of comprehensive screening and diagnostics programs, coupled with the expansion of skilling courses for health professionals.