Anticipating the Budget: Industry’s Roadmap for Growth

Explore the pulse of industries ahead of the upcoming budget as leaders, experts, and stakeholders weigh in on strategies, challenges, and expectations. Discover the insights, forecasts, and pivotal factors shaping the roadmap for growth in various sectors amidst evolving economic landscapes.

The expansion of the Trade Receivables Discounting System (TReDS) is a transformative expectation, not just confined to MSMEs but extending its horizons to non-MSME entities. This strategic move unlocks fresh opportunities, encouraging diversification and aligning with global practices. The incorporation of SEBI-approved funds into TReDS adds another layer, positioning it as a true exchange. This integration opens unique avenues for SEBI market participants and offers TReDS users the option to diversify funds, thus enhancing its global recognition.

Regulatory flexibility remains a top expectation, with a call for an environment that balances consumer protection with fostering innovation. The demand for a sandbox-like approach emphasizes the need for a controlled setting where fintech innovation can thrive. This adaptive regulatory stance is crucial for nurturing advancements while safeguarding consumer interests, paving the way for a dynamic fintech ecosystem that anticipates and addresses future challenges.

Support for incubators and accelerators is another vital expectation, recognizing that access to funding is a lifeline for startups and fintech firms. With a slight dip in funding in early 2022, expectations are high for Budget 2024 to introduce measures enhancing funding opportunities and simplifying the fundraising process. The budget’s focus on fostering an investor-friendly environment aligns with recent trends, showcasing a robust funding ecosystem that saw Indian startups raise a record $32 billion in 2022.

The Gift City is poised for growth, with stakeholders anticipating strategic allocations in infrastructure, regulatory enhancements, and technology integration. An inclusive budget fostering innovation and international collaborations is eagerly awaited, aiming to propel the Gift City into a new era of growth, resilience, and international prominence.

In the realm of taxation, there is a keen interest in potential GST rationalization measures. Expectations focus on adjustments that streamline processes, eliminate complexities, and foster economic optimization. A simplified and rationalized GST structure is anticipated to ease compliance and stimulate economic growth, promoting an efficient and transparent taxation system.”

Ashish Nayyar, Co-Head, India at OakNorth

“In the context of the digital lending industry, it is set for an unprecedented shift, projected to grow at a rate of 36% CAGR,  further propelling the market valuation to $350 billion. Governmental initiatives such as India Stack and Account Aggregator are catalyzing this evolution, which is being supported by the industry as it embraces AI for assisted decision-making and leverages advanced data analytics to deliver efficiency and ensure customer-centricity.  The industry is strategically positioned to lead this transformative journey, fostering collaborative business models to address the $300 billion credit gap in the MSME sector. This brings a pivotal opportunity for industry players to gear up to redefine their roles in bridging this crucial gap through data-driven insights and innovation, ultimately leading to the advancement of both the lending industry and the SMEs”.

Praveen Agrawal, Co-Head, India at OakNorth

“As we look forward to the year 2024, the Indian fintech industry is gearing up for an extraordinary leap, with market valuation expected to surpass $110 billion. Industry players are increasingly recognizing the imperative of adopting advanced technologies, which will be further supported by regulatory responsiveness. AI and machine learning will bring a new era in credit assessment, lending unparalleled speed and accuracy to decision-making and evolving regulatory frameworks will be key to maintaining the balance between fostering innovation and safeguarding consumer interests.  In addition, the ethos of sustainability will be integrated into the lending practices, with ESG considerations taking center stage in decision-making for financial institutions. Further, user-friendly interfaces, accelerated loan approvals, and bespoke financial solutions will redefine the experiences offered to individuals and institutions alike to create a holistic and interconnected vision for the future of fintech.” 

Krishnan S Iyer, CEO, NDR InvIT Managers Pvt Ltd

“Infrastructure and Logistics are critical components of an Economy, and are sure to play a vital role, in our march to a $5 trillion economy; in addition they also play an indirect role in the Social Development of the Country. The NLP that was formulated by the Government is a positive, and for it to have a greater impact, we are hoping for additional resources allocation, and a rationalization of taxes.”

Mr. Dilip Modi, Founder, Spice Money 

“As we approach the upcoming Union Budget, it is imperative to recognize the pivotal role played by transformative innovations and developments in the fintech industry. The technological strides in this sector not only redefine our domestic financial landscape but also harbor the potential to reshape the global perception of Indian fintech

In the realm of Indian fintech, the expectations for the 2024 budget are substantial. A key anticipation is the fortification of the regulatory framework for the fintech industry in India. The unveiled draft framework aimed at regulating fintech activities stands as a testament to the acknowledgment of the escalating influence of fintech companies. Upon finalization, this framework holds the promise of guiding and nurturing responsible growth and innovation within the Indian fintech sector, contributing significantly to financial inclusion and broader economic advancement—a focal point we anticipate the budget to address.

Financial inclusion stands out as another critical aspect likely to be addressed in the budget. The announcement of the streamlined credit platform underscores the RBI’s commitment to facilitating easy access to credit for small businesses and individuals. This platform holds the promise of simplifying and expediting the lending process, rendering it more efficient for borrowers to secure essential financing. The ultimate success of these measures rests on their successful implementation and effectiveness—key considerations we anticipate the budget to underscore.

Furthermore, the collaborative efforts with key stakeholders, including SIDBI, NABARD, and the agriculture ministry, are pivotal in propelling India’s digital commerce onto the international stage. We expect the budget to shine a spotlight on the growth potential of ONDC and e-commerce for emerging India. The Indian fintech industry eagerly awaits the 2024 budget, aspiring for a comprehensive approach that acknowledges the vast potential of fintech to drive inclusive economic growth, empower individuals with modern financial services, and contribute substantially to the overall development of the nation in the digital era.”

Srivatsan Sridhar, Founder and CEO, Skydo

“An increase in the minimum revenue threshold for mandatory GST registration from INR 20 lakhs to INR 50 lakhs will help small scale suppliers minimize their compliance costs. Additionally, there is a need for clear guidance on the necessity of GST registration for businesses that are entirely focused on exports, considering their supplies are zero-rated.

Another key expectation is the simplification of the Input Tax Credit (ITC) refund process for exporters. The current disparity between the documentation requirements of the Foreign Exchange Management Act (FEMA) and GST is a significant hurdle. While FEMA and the Reserve Bank of India have eliminated the need for the Foreign Inward Remittance Certificate (FIRC), the GST department still demands it to confirm the receipt of export remittances in foreign currency. Aligning FEMA and GST documentation requirements will facilitate smoother operations for exporters, reducing bureaucratic hurdles and expediting the refund process.

These measures and adjustments to the GST framework will help simplify processes, reduce compliance costs, and enhance operational efficiency for small businesses and exporters”

Chulamas Jipatima (Amy), Country Director, MQDC India

Rahul Ahluwalia, Co-founder, Foundation for Economic Development

“India’s path to growth lies in prioritising exports to global markets, which are vast compared to the domestic Indian market. The government’s ambitious target of exporting goods and services worth $2 Tn by 2030, and the spectacular growth of electronics exports last year inspire confidence that policy-wise, we have the right targets in mind. However, till October ’23, India’s overall merchandise exports had declined by 5.5% year-on-year. This has happened, in part, because with an average MFN (most-favoured nation) tariff of 9.7% and a relative absence of FTAs compared to countries like Vietnam, India imposes the highest tariffs among prominent developing economies. High tariffs on imports result in costlier inputs and reduces the competitiveness of downstream Indian exports in international markets.   

Since this will be a vote on account or an interim budget before the general elections, it is unlikely to have any big announcements. Still, reductions of import duties are well within its ambit. Given the government’s focus on exports, we think that the budget will reduce tariffs to foster competitiveness and enable Indian industry to thrive globally.”

Mr. Rahul Pagidipati, CEO, ZebPay

“2023 has witnessed significant developments in the crypto and web3 space. The blockchain sector has also demonstrated resilience and maturity, showcasing its potential to contribute to the country’s digital economy. The global market capitalization of crypto tokens has shown positive growth since the start of 2023 indicating increased acceptance and adoption.

In the spirit of collaboration between the government and the crypto sector, we look forward to the upcoming budget with optimism. Considering the positive strides made in discussions at the G20 summit, we believe that it is crucial to establish a regulatory framework. These developments, especially in reducing TDS and Capital Gains Taxes, would encourage a more inclusive participation in the crypto market. Moreover, a supportive regulatory environment will stimulate innovation, empowering the industry to transform existing businesses through the integration of blockchain technology. It will also pave the way for the creation of novel solutions, fostering the overall growth and sustainability of the crypto sector in the years to come.

We remain hopeful for a budget that recognizes the dynamic nature of the industry and provides the necessary impetus for its continued positive trajectory in the coming year.”

Mr. Abhinav Jain, Co-Founder & CEO, Almonds AI

“In Budget 2024, we hope for policies that nurture India’s tech innovation ecosystem. We need increased investments in R&D initiatives, particularly in areas like AI, robotics, and advanced materials. Additionally, incentives for attracting and retaining skilled tech talent through tax breaks for skill development programs and simplified visa processes would be greatly appreciated. The budget should act as a catalyst for India’s burgeoning startup ecosystem. We urge the government to consider easing regulations for startups, simplifying the funding process, and creating avenues for easier access to angel investors and venture capital.”

Sandeep Goel, Managing Director, Moglix

Connectivity- physical and digital, has been the focus area of the previous union budgets of the government and is expected to continue in the union budget 2024. I think the next level digital penetration needs to happen across infrastructure project sites, power plants and sub stations and should attract greater outlay on SaaS investments with a vision to reimagine infrastructure-as-a-service and manufacturing-as-a-service. There is a pressing need to inject process discipline through digital project management to taper down cost and time overruns and efficiency leakages. Further, it would be great to see greater fiscal outlay on prescriptive artificial intelligence adoption in areas of essential goods like food, dairy products, rural health care, vaccination programs, and industrial safety to zero down gaps in the amenities that people need for ease of living. The vision of the budget should be to map India’s essential goods, core sector resources, and manpower on the SaaS cloud to create a one nation, one digital supply chain ecosystem for better quality of life. 

Mr. Shailendra Singh, MD & CEO, BoB Financial

“India is experiencing a significant surge in the utilization of credit cards, particularly with a five-fold rise in demand for travel financing. In light of this, the government should look at exempting international spending of up to Rs 7 lakh from the existing 20 percent Tax Collected at Source (TCS) in the upcoming FY25 budget. This proposed measure aims to boost cross-border commerce, ease transactional complexities for consumers, and stimulate the tourism and hospitality sectors. By fostering a conducive environment for global transactions, we aim not only to enhance the cardholder experience but also to contribute to the overall economic growth.

In addition, we urge the government to continue its commendable efforts in strengthening the digital infrastructure while prioritising security of the consumers. Initiatives like UPI integration strongly reflects regulator’s commitment to innovative solutions, furthering financial inclusion and paving the way for a digitally empowered future.”

Sumit Kumar, Chief Strategy Officer, TeamLease Degree Apprenticeship

“Academia to be part of the Apprentices Act which is essential for implementation of Degree Apprenticeship under New Education policy, and facilitate tripartite agreement between industry, academia and the youth. This is essential to enhance the employability of the youth, and promote academia-industry collaborations. Given that, TPAs have played a vital role in scaling apprentices in the country, they should be incentivised based on new onboarding of organizations and apprentices. TPAs can play a vital role in scaling apprentices for SMEs. They should be allowed to have outsourced apprentices through TPAs or staffing organizations. PLI has scaled the scope of manufacturing and specially contract manufacturing, which has led to formal employment generation.”

Maneesh Bhandari, Founder and CEO, Growthpal, a M&A deal sourcing platform

● Parity in Taxation: They’re seeking equal treatment in taxation between listed and unlisted shares, particularly concerning Long-Term Capital Gain Taxes. Currently, there’s a disparity where investments in private shares are taxed at a higher rate of 20% compared to 10% for publicly traded shares. They propose aligning these taxes to incentivize investment in private companies, considering the higher risks involved.

● Concerns on Double Taxation: There’s a plea to address what’s seen as double taxation, specifically with capital gains taxes and dividend taxes. Investors perceive this as taxing profits twice—once as income and again when gains are realized or dividends are distributed. Singapore’s model, which doesn’t levy capital gains or dividend taxes, is highlighted as an example to consider.

● Impact of High Tax Rates: India’s high rates of capital gains and dividend taxes, compounded by additional surcharges for the super-rich, are viewed as discouraging both domestic and foreign investors. There’s concern that these high taxes could potentially prompt businesses to restructure, moving their core assets or intellectual property to low-tax jurisdictions.

● Encouraging Investment and Retention: Lower tax rates, along with minimizing or eliminating double taxation, are seen as imperative for India to attract more foreign investment. Additionally, this strategy is envisioned to support the growth of MSMEs, startups, talent retention, and the retention of critical intellectual property within the country. This shift in tax policy aims to curb the outflow of intellectual property and capital and encourage both domestic and international investments.

Overall, the VC community is advocating for tax reforms that incentivize investment, reduce double taxation, and make India more attractive to both domestic and foreign investors, fostering a conducive environment for economic growth and innovation.

Mr. Ankur Gigras, CEO and Co-founder, HexaHealth

“We want to see a comprehensive approach to healthcare spending in the interim budget of 2024. The expenditure on basic healthcare, which includes treating common health concerns, giving necessary medications, caring for mothers and children, immunising, and other preventative actions, has been one of the main problems with the Indian health system. Equitable supply and utilisation, focusing on marginalised groups, outpatient care, and dynamic cost coverage are what must be prioritised. Moreover, emphasis should be placed on innovative medical technologies like artificial intelligence, which may improve the quality of life for patients during operations, speed up insurance claims for required procedures, and raise the efficacy of healthcare delivery overall. In order to pave the way for a healthier, more technologically sophisticated future for our country, we hope that the budget will acknowledge these problems and actively support efforts to address them”, said Ankur Gigras, CEO and Co-founder, HexaHealth.”

Ashish Singhal, Co-founder and Group CEO, PeepalCo

India introduced its tax provisions for Virtual Digital Assets (VDA) two years ago, during the 2022 Budget. While the industry welcomed the definition and inclusion of VDAs in the Income Tax Act, certain provisions, such as the high TDS rate and the lack of offset have led many Indian VDA users to move to non-compliant foreign exchanges to trade, putting themselves at risk of losing their investment and breaking the law. It also led to lesser tax revenues for the exchequer.

As an FIU-registered platform compliant with India’s KYC and PMLA rules, CoinSwitch urges the Government of India to consider the following:

i) Reducing the Tax Deducted at Source (TDS) on VDAs, from 1% to 0.01%
ii) Allow offsetting and carrying forward losses from sale of VDAs
iiI) and treating income from VDAs on par with other capital assets

The Government of India has shown commendable leadership at the G20 to arrive at a roadmap for a global crypto framework, and has implemented domestic regulatory frameworks such as anti-money laundering that are in line with the global standards.

This could be the basis for India to reconsider its tax treatment of VDAs, which is an outlier, both domestically and internationally. Reducing the tax arbitrage that exists today will also help stem the flight of capital, consumers, investments, and talent, as well as dent the gray economy for VDAs.

Mr. Umesh Singh (Founder & CEO, Tara Candles)

“The MSME sector eagerly anticipates the Union Budget, with a focus on key provisions crucial for our growth and sustainability. Foremost among our expectations is enhanced access to finance, including easier credit availability and lower interest rates to facilitate business expansion. In Tax reforms we are looking for Section 194R introduced last year April-2023 has made impact on lower sales turnover to the MSME segment catering to the gifting industry leaving them in vulnerable conditions. This section should be reformed for boosting the MSME gifting industry. Infrastructure development remains a priority, urging increased funding for essential facilities like roads and logistics. We seek government support for technology adoption, innovation, and streamlined regulatory processes to ease operational complexities. Skill development initiatives and collaborations with educational institutions are essential to enhance our workforce capabilities. Additionally, we advocate for export promotion, cluster development, and risk mitigation measures to boost competitiveness and resilience. Our commitment to environmentally friendly practices also prompts a call for incentives for sustainable operations. As economic conditions evolve, we emphasize the dynamic nature of our expectations, underlining the importance of a budget that addresses the ever-changing needs of the MSME sector. Business associations and industry groups continue to play a crucial role in articulating and advocating for our specific needs during budget discussions.”

Amrit Acharya, CEO & Co founder at Zetwerk

“India’s manufacturing moment is now; and we need to seize it with a 25-year vision. We stand at a pivotal juncture for Indian manufacturing. With unprecedented tailwinds and favorable policy support received from the Government of India, the time is ripe to chart a bold 25-year vision. We must go beyond ‘Make in India’ and forge a self-reliant ecosystem through R&D investment, cutting-edge clean technologies, and robust skilling programs. 

We, at Zetwerk, also feel that innovation isn’t confined to age. To truly unlock our potential, we must bridge the gap between established manufacturers and new-age companies through a level playing field. By collaborating and leveraging their combined experience and agility, India can achieve higher growth in manufacturing and become a factory to the world, thus securing not just economic growth, but a brighter future for all”

Mr. Pawan Gupta, Co-founder and CEO Of Betterhalf.

”With the ‘Wed in India’ initiative generating optimism in the wedding industry ahead of the interim budget, Betterhalf aims to create jobs and extend professional services to 10,000 wedding vendors with a $5 million investment.

However, the industry faces a challenge with the current 18% GST on all services. We sincerely urge the government of India to consider reducing it to 5%, fostering growth, promoting online payments, ensuring better tax compliance, and contributing significantly to government revenue.

Aligning policies to support this sector is not just an investment in weddings; it’s an investment in economic prosperity. We eagerly anticipate the budget announcement, hopeful for policies that nurture industry growth and benefit the broader economy.”

Rahul Garg , Founder & CEO, Moglix

India is all set to touch USD 4 trillion in real GDP in 2024. The union budget 2024 is likely to sustain the infrastructure spending spree. The full budget in July is likely to see a fiscal expansion. I expect a greater approved budget for NHAI to reduce borrowing and therefore road development project costs. Also, I expect a higher outlay on local manufacturing of railway coaches for Amrit Bharat and Vande Bharat trains, development of railway stations, airports, and ports. Combined with an interest rate cut by the RBI the budget will be one among a long series of budgets for transforming India’s manufacturing and infrastructure sectors and push for India’s green transition. The startup revolution in India has taken off in a big way and a select few matured startups have grown sufficiently to go public. The honorable FM may like to consider the simplification of the regulatory framework for IPOs, for startups to leverage the power India’s equity markets. We are likely to touch a 7% real GDP growth rate comfortably. 

Partha S Dash, Managing Director, Moglix

The union budget 2024 should continue to spell consistency in terms of direction and velocity of infrastructure development. The plans to build 91 airports and 100 smart cities are likely to get extended fiscal support.  It would be great to see greater adoption of the bridge health monitoring system and predictive artificial intelligence to identify physical assets that need repair and maintenance and thus direct resources and fiscal outlay accordingly. I strongly feel that solar rooftop installations need to go mainstream in the household sector to truly give wings to India’s green transition and should figure on the honorable FM’s checklist. Lastly, I think there’s a need to simplify the regulatory framework so that EPC companies with an A++ credit rating can raise capital through issue of corporate bonds. It will inject greater liquidity into the EPC supply chain ecosystem for infrastructure and green energy projects without piling up risks of fiscal profligacy for the government. 

Aditya Singh Poonia, Founder, Etrica Power

“As we approach the final Union Budget under the current government ahead of the impending general elections, Budget 2024 assumes the role of an interim budget rather than a comprehensive fiscal plan. Over the preceding five years, the government has diligently worked on bolstering national infrastructure, with a prospective shift in focus towards enhancing port and shipping facilities, promoting green and sustainable energy, and fortifying urban infrastructure. This budget presents a pivotal juncture for steering policies from carbon dependency to energy efficiency, necessitating the active involvement of financial services players in the fight against climate change. Incentivising investments in green bonds and renewable energy enterprises stands as a strategic move, contributing to India’s ambition of achieving net-zero emissions by 2070. We hope there will be increased focus on favourable policies and taxation to increase the adoption of renewable energy.”

Rama Mahendru- Country General Manager- India, Intrepid Travel

“Let this Union Budget 2024–25 re-emphasize the transformative power of tourism and the pivotal role infrastructure plays in shaping our global appeal. The potential of inbound international travel is huge in India and will get a further boost from the support of a budget that prioritizes the necessities, such as hygienic public spaces and increased security awareness, to guarantee that foreign guests have a great time. In addition to being beneficial economically, rewarding the businesses that are bringing in foreign money for the country and including incentives for the inbound tour operators under foreign trade policy demonstrates our dedication to international collaboration.

Also, the budget should focus on accessible entry to every historical site or monument, which is another aspect of the infrastructure that makes visiting by wheelchair-bound or elderly visitors easy.

Let’s make a hospitality-driven infrastructure our top priority when allocating resources so that it may further strengthen our reputation as a friendly destination while simultaneously promoting economic growth”

Vineet Agrawal, Co-Founder, Jiraaf

“As the alternative space expands, fixed continues to gain more prominence as well. While equity markets saw considerable growth over the last two decades, growth of debt market is critical for the country. Availability of debt across all segments of borrowers especially MSME & new age companies would fuel growth and employment. We are thankful to SEBI for taking measures in recent times to democratize the fixed-income space with initiatives like OBPP, making listing simpler and reducing face value for participation in debentures. We hope in the upcoming budget, the government would continue to bring down the difference in capital gains taxation between equity & debt to unlock more participation in credit instruments.”

Nikunj Agarwal, Head Debt & Lending Alliances · Propelld

“In light of the 2024 election, expectations are subdued regarding major shake-ups in the upcoming Interim Budget-24. However, there’s a strong call for measures to support liquidity-ease for new age financial players, particularly the NBFCs, serving as a lifeline for those struggling to access financial services. Additionally, the global spotlight on ESG practices—focusing on environmental, social, and governance aspects—raises hopes for added incentives for financial institutions championing these causes. NBFCs eagerly await financial support and acknowledgment of their positive contributions. If implemented, could potentially fortify the further sustained and inclusive growth.”

Sundeep Mohindru, Promoter and Director, M1xchange

Incentives for MSMEs to formalize

With over half of the $5tn economic dream of the nation resting on the shoulders of MSMEs, there have been several policy initiatives undertaken over the last couple of years to boost their productivity. The expectations from the upcoming ‌budget, will be to continue upon that path through fiscal support. For instance, of the 6.3 crore MSMEs in India, only half are registered on Udyam – a platform that creates many opportunities for GST and non-GST registered small businesses to avail of government schemes, production related incentives and formal channels of credit. A major driver will be to bring the remaining half to register on Udyam, which will act as a catalyst for MSMEs to formalize and reap the benefits.

Support for financers to promote Small Business Working capital loan & Fiscal support for use of Analytics for Risk Management

The regulator has been prudent with corrective measures to stem inherent risks rising out of unsecured consumer lending, which has been growing rapidly due to digitization. It is important for the government to come out with supporting measures that compel banks and NBFCs to shift their lending portfolio more towards small business Working capital loans. Some measures could be in the form of incentives for banks and NBFCs to use technology to minimize risks while providing collateral free Working capital lending to MSMEs will be a win-win. Such support would not only boost business activity for banks but also facilitate the rebalancing of their portfolios.

Support for TReDS

TReDS has progressed decently well with all the three platforms together expected to facilitate INR 1.40 lakh crore of financing. This is nearly double of the financing facilitated at the end of FY22-23, which stood at INR 75 thousand crore. TReDS have benefits for all its stakeholders – facilitates collateral free, low interest working capital for MSMEs, provides banks and NBFCs with near zero defaults on their SME loan book and helps corporates improve cost efficiency through timely supply chain finance for their suppliers. With the government now bringing trade credit insurance as the fourth participant on TReDS to further support banks and NBFCs to go aggressive on Supply Chain Finance, it is important to allocate budgetary push to support insurers to quickly adopt the platform.

Under NCGTC, the CGFSF (Credit Guarantee Fund Scheme for Factoring) has been proposed to address coverage of the govt.-backed scheme for factoring transactions on TReDS. The govt shall advise to start active operations of this fund on TReDS at the earliest.

Allow TReDS 2^nd Window

TReDS ‘second window’ is envisaged as ‘buyer less’ and removes the need of the buyers to accept the invoices.  Unlike, TReDS, the ‘Second Window’ will offer a ‘with recourse’ supplier financing for MSME sellers, backed by advanced analytics and access to consent driven, publicly available databases such as GSTN, AA, PCR etc.

One of the possible solutions in providing Buyers acknowledgment on TReDS using GSTN is envisaged through   combination of liberated data and agreement between MSME sellers and TReDS platform lenders, for obtaining cash flow lending for its various invoices. Various India Stack Open APIs integration into TReDS platform will facilitate MSME onboarding , invoice verification via GST ,MSME bank transactional cash flow data, GST data, past loans, and credit history, repayments tied to electronic liens on cash inflows.

Measures to address delayed payments to MSMEs

The MSMEs’ desire for credit has significantly increased, but there is still a Rs. 20–Rs. 25 trillion credit gap in the industry as a whole. One of the primary obstacles encountered by these MSMEs is the problem of delayed payments. This hampers the working capital flow and competitiveness of these enterprises in the market, preventing them from seizing new possibilities and fulfilling orders. Based on statistics accessed through the government’s MSME Samadhaan portal, which tracks issues related to delayed payments, only 33,262 of the 1.68 lakh complaints have been resolved. To achieve the government’s goal of increasing the contribution of MSMEs to the GDP from 30 percent to 50 percent by 2025, it is necessary to establish policy frameworks that specifically target these challenges faced by MSMEs and help in resolving them.

Making TReDS a Unified Platform for MSME Payments :- Paragraph 4.8 of  report by Standing Committee on Finance (2020-2021) presented to Seventeenth Lok Sabha for The Factoring Regulation (amendment) bill, 2020, stipulate : “The Committee’s opinion is that the compulsory listing of all GSTN invoices on the TReDS and the consequent tracking of when these payments are made, provides excellent economic data on the state of the economy. It will also provide valuable credit information to enable credit scoring of various companies and government entities.”  

To implement this a simple extension of the role of TReDS as a unified platform for all receivable payments of MSMEs has the potential to address purpose outlined above

Manas Mehrotra, Founder, 315Work Avenue

Coworking industry expects multiple reforms from the upcoming interim Union Budget

The coworking industry has become more relevant than ever with the demand surging significantly in the recent times owing to its affordable pricing options and flexible work culture. Large enterprises too have shifted gears to coworking space as they embraced the hybrid work model to suit their organizational requirements. India continues to be the fastest growing flex office market in the APAC region and is set to account for one-fifth of the office market by 2030. Taking into consideration the popularity of hybrid working, we have a few expectations around GST and taxation from the upcoming interim Union Budget that can further accelerate growth of this sector.

Some of the measures that we could look forward to include lower GST rate for small-scale coworking clients. This will significantly help the coworking industry boost their footprints by attracting small start-ups to be part of the industry as well as increase the revenue collection to the government. The salary upper limit of 25k could be enhanced to 40k and timeline from 3 yrs to 5 yrs to enable start-ups/coworking entities to enjoy the benefit of sec 80JJAA as these industries are generating a greater volume of employment. Input tax credit under GST is an important issue that concerns coworking sector. We expect the budget would enable coworking firms to claim input credit on work contract and construction services supplied so that it is passed on to companies who lease out space for coworking and thereby reduce their overall costs.

Typically stamp and registration duties are high and since both the landlord as well as client agreements are subject to these charges, hence, either concession in such stamp duty rates or allowing twice the duty paid as expenditure under income tax will encourage even the small agreements to get registered. An important requirement for the coworking industry has been Lower/Concessional rate of TDS which will improve the working capital. Another measure that could be announced to intensify growth of the coworking sector is a further and continued extension of tax holiday for start-ups as they would be motivated to scale up their business and enhance investment.

A significant push to infrastructure and single-window clearance system will help in faster establishment of coworking spaces in non-metro cities as well. Overall, the coworking sector, is expecting continued improvement in the ease of doing business which will play an important role in the growth of coworking industry in the near future. Going forward, we hope that the government looks at addressing regulatory concerns and encouraging more coworking firms to open-up through a series of both financial and non-financial incentives and ensure faster economic growth.

Naivedya Agarwal, Co-founder & CEO, Runaya group

The Government of India has taken commendable strides, implementing favourable policies that have catalysed the evolution of a vibrant startup ecosystem within the nation. While acknowledging these achievements, we earnestly encourage the government to persist in its support, fostering an environment conducive to ongoing innovation and growth in the startup landscape.

A critical facet requiring attention is the existing exemption, currently applicable solely to Domestic Startup Companies registered post 1st Oct 2019, thereby omitting LLPs and entities registered before Oct 2019. Our plea to the government is to extend this provision to encompass LLPs, promoting an inclusive startup and business culture. Additionally, in alignment with the government’s commitment to nurturing startups, a reconsideration of eligibility criteria for entities registered post-2016 would further enhance the ecosystem’s cohesion.

Acknowledging the dynamic nature of startups, an extension of the exemption timeline linked to manufacturing commencement from 31.03.2024 to 31.03.2025 is proposed. This adjustment recognizes the burgeoning startup landscape, providing a more realistic timeframe for startups to establish manufacturing units and contribute meaningfully to the economy.

Furthermore, the turnover limit for tax exemption eligibility warrants review. Suggesting alignment with MSME provisions for medium enterprises, we propose an increase in the turnover limit from Rs 100 Cr to Rs 250 Cr. This adjustment aims to level the playing field, facilitating the growth of startups into larger entities without compromising on associated benefits.

Addressing the critical issue of rare earth reserves, we advocate for the classification of rare earth mineral mining under the ‘Make in India’ campaign. Proposing the establishment of a dedicated rare earth mission akin to the India Semiconductor Mission and the introduction of PLI schemes for the rare earth and magnet manufacturing industries, we aim to encourage domestic production, mitigating dependence on imports.

In sectors such as aerospace and chemicals, the reliance on imports for critical materials like Aluminium Powder is a notable concern. To address this, we suggest including aluminium powder under the ‘Make in India’ campaign and implementing PLI schemes for domestic manufacturers, fostering self-reliance and contributing to the growth of these industries.

As we collectively navigate towards a sustainable and self-reliant future, we firmly believe that these proposals will not only support the startup ecosystem but also significantly contribute to the overall economic development of Bharat. We eagerly anticipate the Union Budget positively addressing these concerns, fostering a thriving environment for innovation and sustainable manufacturing.

P. Venkatesh, Director, Thought Leadership, Maveric Systems Limited

In anticipation of Budget 2024 being a Vote on Account, we do not foresee major announcements but expect a continuation of fiscal prudence and a commitment to addressing the people’s needs. It is crucial to ensure that allocations for key employment generation schemes, such as MGNREGA, PMGKRA, and NRLM, mirror the levels of the preceding fiscal year, emphasising stability and sustained support for crucial programs.

The budget should maintain a focus on schemes like –

• Production Linked Incentive (PLI) scheme that provides incentives to companies to encourage manufacturing activities based on their production performance.

• High-risk, High reward that supports startups with potential for high impact but also high risk

• PRISM (Promotion of Innovation in Small & Medium Enterprises) aimed at fostering innovation in small and medium enterprises.

• Biotechnology Ignition Grant focused on supporting early-stage startups in the biotechnology sector.

In line with our expectations, the budget should prioritise subsidies for the poor, encompassing essentials like food, fertiliser, and petroleum. This commitment to supporting the under-served is integral to ensuring social welfare and stability. Additionally, the budget should concentrate on sustainable income growth in rural households, reinforcing the government’s commitment to inclusive growth. By aligning with these principles, Budget 2024 can play a pivotal role in fostering economic development and promoting an inclusive and resilient society.

Bharath Rao, Co-Founder / CEO, Emobi

 One of the foremost things that the industry is keenly expecting is the changes in the FAME 2 subsidies in the Union Budget 2024. This is one of the most significant aspects and the entire ecosystem is waiting to understand how the subsidy terms will be tweaked and extended. A significant trend which I foresee will bring a new twist to the market is the rise of battery swapping companies.

Another aspect I urge the Government to consider is the difference in GST rates. Currently. EVs sold with included batteries have a 5% GST, while those sold without, especially for battery-swapping, face an 18% GST. Additionally, purchasing lithium batteries separately incurs an 18% GST, compared to the 5% GST when included in the EV purchase. This makes it difficult for companies investing in battery-swapping technology. The industry is looking forward to a budget that levels the playing field, encourages new ideas, and pushes the EV industry toward a sustainable and balanced future.

Mr. Partha Neog, CEO and Co-Founder of Vantage Circle

“We eagerly await the Union Budget 2024 with expectations aligned to the unique challenges and opportunities in the MSME and Technology sectors. We hope to see significant growth in these sectors with this year’s budget.
As we already know, MSMEs are the country’s backbone, contributing to large-scale income generation and India’s overall economic growth. We expect the Union Budget 2024 to ensure financial support mechanisms to the MSME sector so that we have a more conducive environment for innovation and expansion. At the same time, we also expect significant improvement in the dynamic technological sector by including incentives for R&D programs and the adoption of Gen AI, which will further revolutionize the overall landscape of HR technology.”

Alok Dubey, Chief Finance Officer, Acer India

“The upcoming Union Budget 2024 has the potential to shape the IT Tech sector in the next fiscal year. As we anticipate Budget 2024, our expectations revolve around fostering India’s tech innovation ecosystem. We look forward to heightened investments in Research and development and Artificial Intelligence, underlining a strategic roadmap emphasizing innovation, sustainability, and accessibility within the industry. Aligned with the Make in India initiative, we expect that the Production Linked Incentive (PLI) program, designed to support IT hardware and computer server manufacturers, along with the government’s resolute commitment to digital skill development, will be accorded significant priority. We anticipate a budget that not only aligns with but elevates the Make in India objectives, providing a robust framework for the growth and alignment of the IT Tech sector.” 

Pradeep Misra, CMD-REPL, Rudrabhishek Enterprises Limited

As the Government of India is preparing to present the interim Union Budget for the fiscal year 2024-25, the Real Estate and Infrastructure sectors are keenly anticipating policy measures that can provide a boost to their growth and address the challenges they face. The real estate sector has been grappling with issues such as liquidity constraints, delayed projects, and subdued demand. Stakeholders in the industry are hopeful that the budget will introduce measures to ease liquidity, possibly through financial incentives or relaxations in financing norms, to stimulate construction activity and revive the housing market.

The housing demand in India is expected to be driven by affordable housing sector. It will be a great impetus to the sector if the government announces extension of PMAY program. The current PMAY covers only the houses sanctioned till March 2022. However, the increasing urbanization requires the program to increase its coverage. PMAY has proven track record of not only addressing the ‘Housing for All’ issue but also leaving a direct positive impact on livelihood betterment, enterprise development, social equity and gender empowerment. The sector eagerly looks for extension on PMAY 2.0 for another 5 years.   

To boost non-housing sector of real-estate, initiatives can be announced to formalize investment in GOI approved MSM-REIT. Tax incentive for investors of MSM-REIT during initial five years can be proposed, this will help in formalizing investment and boosting non housing real estate sector. 

In the infrastructure sector, there is an expectation for increased allocation of funds to support ambitious projects aimed at enhancing connectivity, such as the development of highways, railways, and airports. The sector also anticipates reforms that streamline regulatory processes, making it easier for projects to navigate approvals and timelines. Additionally, a push towards sustainable and green infrastructure is expected, aligning with global trends and environmental concerns. By incentivizing eco-friendly practices and renewable energy integration into infrastructure projects, the budget can contribute to India’s commitment to sustainability.

Furthermore, both sectors are looking for more robustness in RERA and GST. A consistent and transparent regulatory environment will instill confidence among investors and developers, fostering a conducive atmosphere for growth. Overall, the Real Estate and Infrastructure sectors are optimistic that the Union Budget 2024-25 will offer strategic interventions to address their concerns, facilitate growth, and contribute to the broader economic recovery in the post-pandemic landscape.

Ritesh Kumar, MD & CEO, HDFC ERGO General Insurance

“The Indian economy is one of the fastest growing economies in the world, and is well positioned for strong growth over the medium term. The Insurance industry has consistently played the role of a partner in securing the economic growth of the nation. We appreciate the steps taken by the Government and the IRDAI to transform the insurance sector and truly believe that they augment the industry’s efforts of achieving insurance penetration till the last mile. In line with the IRDAI’s vision of ‘Insurance for All by 2047’, there is a need to reconsider the GST rate of 18% on health insurance policies in the upcoming Union Budget, thereby improving the affordability for our citizens.”

Manhar Garegrat, Country Head, India & Global Partnerships at Liminal Custody Solutions

As India strides towards the forefront of the digital asset revolution, secure custody solutions are laying the foundation for a new era of financial inclusion. However, unlocking the full potential of this transformative asset class demands a robust ecosystem built on clarity, innovation, and talent. The upcoming Union Budget 2023 presents a pivotal opportunity to pave the way for a thriving digital asset landscape, and Liminal proposes the following key expectations:

1. Clarity in VDA Definition and Tokenization:

The current broad definition of Virtual Digital Assets (VDAs) in Notification no. 74 of 2022 needs to be more nuanced. The tokenization of real world assets is a $10 trillion opportunity  and we are already witnessing the rapid advancements in the field of tokenized RWAs. There is an urgent need for investment and innovation in these segments, if nurtured with progressive policies, India has the potential to become a global leader in the digital asset space.

We urge the government to amend the VDA definition, explicitly excluding tokenized assets with proven underlying value, similar to established precedents like gift card exemptions. This targeted revision will foster a dynamic and inclusive digital asset ecosystem.

2. Removal of 1% TDS:

The introduction of a 1% Tax Deducted at Source (TDS) in 2022 led to an estimated loss of $420 million in potential government revenue due to migration of Indian crypto traders to overseas platforms. This highlights the detrimental impact of policies that disincentivize domestic participation in the digital asset market.

We propose offering tax breaks for the development of blockchain security infrastructure and the implementation of advanced security protocols. This incentive will attract investment, generate high-skilled jobs, and solidify India’s position as a global leader in secure digital asset custody.

Just like stocks, users should be allowed to offset losses related to digital assets which will encourage more startups to enter this space. 

Government should look at creating special economic zones for Web3 startups and offer tax holidays to startups during initial years so that entrepreneurs can focus on innovation and product development without worrying about cash flows.

3. Prioritising Research and Development:

We urge the government to create equal opportunities for Web3 projects by enabling active participation in government sandboxes. The requirements for inclusion in government sandboxes should be more relaxed to create a more inclusive and encouraging Web3 startup ecosystem. Excluding digital assets from such initiatives may not unlock the full potential of blockchain projects and could limit their viability in the long-term.

Fostering a culture of innovation in blockchain-based security solutions and compliance tools is crucial to ensure the resilience and sustainability of the digital asset ecosystem. India’s vibrant tech landscape presents an ideal breeding ground for developing cutting-edge technology solutions.

We call for strategic investments in research and development (R&D) initiatives specifically focused on digital asset security and compliance. This commitment will empower Indian companies to contribute significantly to global solutions and maintain India’s competitive edge in the digital asset space.

Shivam Thakral, CEO of  BuyUcoin, India’s second-longest running digital asset exchange 

The Indian crypto industry stands between boundless potential and frustrating limbo. In the upcoming budget, we urge the government to replace uncertainty with clarity, not with a heavy hand but with a guiding light. A well-defined legal framework can unlock trust and fuel growth. This framework should address taxation complexities, establishing clear guidelines for income and transactions, not as barriers but stepping stones. Exchange licensing protocols should not be shackles but a badge of honor, ensuring responsible participation.

Seamless integration with traditional finance is possible by fostering collaboration and driving mainstream adoption. We understand the need for investor protection, but overzealous regulations could hurt our nascent ecosystem. Let’s find the sweet spot that fosters innovation while ensuring responsible participation, allowing India’s crypto industry to bloom, attract global players, and nurture domestic startups.

Clarity alone isn’t enough. Imagine India as a fertile field; crypto and blockchain are the seeds waiting to sprout. We need tax incentives and sandboxes to nurture these seeds into thriving startups. Sandbox initiatives need protection to foster experimentation. This will create a new generation of jobs, propel India into the global DeFi and blockchain space, and unlock economic growth. By embracing crypto with vision and collaboration, India can lead the world towards a digitally inclusive financial future, leaving competitors in the shade.

Om Malviya, President at Tezos India, a blockchain adoption entity 

While India’s potential in blockchain is undeniable, it faces many roadblocks. Ambiguity around legal status hinders startups as they hesitate to navigate uncharted territory. Tax complexities leave them burdened, their wings clipped before they can soar. Talent that fuels innovation remains scarce, creating a bottleneck within the ecosystem. The upcoming budget holds the promise to remove all these roadblocks and clear the path.

The taxation around digital assets, especially the TDS on transactions should be revisited by the relevant authorities. The exemption limit short term capital gain tax should be relaxed to make digital assets more user friendly. 

A comprehensive framework embracing diverse applications, from healthcare record-keeping to secure voting systems, is the need of the hour. Clear taxation guidelines and talent development initiatives targeted at building a skilled workforce would propel nascent startups. Sandbox projects and government collaboration will nurture trust and bridge the theory-practice gap, transforming ideas into tangible solutions. Embracing blockchain is not just an economic decision; it’s a chance to empower millions with unprecedented transparency, efficiency, and security. It’s about building a future where trust replaces mistrust, and everyone has a seat at the innovation table.

The upcoming budget holds immense significance for India’s growing blockchain ecosystem. We call for clearer regulatory pathways. A comprehensive framework embracing diverse use cases, from healthcare and supply chain management to governance and identity verification, would unlock transformative potential. Tax incentives for blockchain-based startups and R&D initiatives would attract global talent and foster an environment of innovation.

Shomiron Das Gupta, Founder, DNIF Hypercloud

“As India’s IT sector continues to drive economic growth, the escalating scale of cyber threats demands urgent attention in the upcoming 2024 budget. According to a Singapore-based cybersecurity firm Cyfirma, a staggering 278% surge in state-sponsored cyberattacks on India between 2021 and September 2023, primarily targeting services companies, especially in the IT and BPO sectors. The report also revealed a significant 460% increase in cyberattacks on government agencies and a substantial 508% rise affecting startups and SMEs during this period.

To address these challenges, the budget must strategically prioritize cybersecurity, directing resources towards resilient digital infrastructure. Investment in training programs and upskilling initiatives is essential to cultivate a skilled workforce capable of tackling sophisticated cyber threats. A focused increase in university education for the cyber industry will contribute to building a competent talent pool. Additionally, allocating resources to bridge skill gaps and enhance awareness is crucial for creating a cyber-resilient nation. The budget should earmark funds for the development of cutting-edge cybersecurity technology to stay ahead of evolving threats. Strengthening regulatory mandates in the industry will provide a solid foundation for a secure and thriving digital ecosystem. As a result, we believe the 2024 budget is pivotal in fortifying India’s digital landscape and securing the future of the IT sector.” 

Deepak Tiwari, CEO, KSH Logistics

“In the 2024 budget, we look forward to transformative measures that can propel the logistics and warehousing industry into a new era of efficiency and inclusivity.

Labour law reform is a critical aspect of streamlining operations. Also, reduced interest rates for investments in CAPEX, Automation, and Technology will not only stimulate growth but also drive innovation within the industry. We hope for financial incentives that promote gender neutrality, encouraging the employment of more women and the third gender, and fostering a diverse and inclusive workforce. Furthermore, an infrastructure push in Tier 2 cities will not only decongest urban centres but also create new hubs for warehousing, facilitating better regional connectivity.

As we await the budget announcement, we look forward to a roadmap that supports our vision for a progressive, technologically advanced, and inclusive future in the warehousing sector.”

Mr. Jimmy Patel, MD & CEO, Quantum AMC:

“In the last two terms of the Modi-led-NDA government copious structural reforms, viz. Make In India, Production-Linked Incentive (PLI) scheme, Start-up India, National Single Window System (a digital platform to help businesses apply for approvals from central and state governments), Skill India, Digital India, development of India’s core infrastructure, financial inclusion for all, Housing For All (also known as the Pradhan Mantri Awas Yojana), RERA, renewal energy, tax reforms such as GST, corporate tax cuts, the Insolvency and Bankruptcy Code, creation of bad banks (as part of a wider strategy to clean up the balance sheets of banks), merger of PSU banks, and many social others have been rolled out and implemented. In short, the government laid the path to economic reforms and progress.

Today, the World Bank sees India fastest-growing economy of the seven largest EMDEs. Similarly, the International Monetary Fund (IMF) observes India as a “bright spot” — and rightly so, because of several reforms of the government and prudent monetary policy actions of the RBI. The Equity AUM of Indian mutual funds, as a consequence, has also reported a phenomenal rise with very encouraging participation from individual investors, both retail and HNIs.

Interestingly, individual investors (retail and High Net worth Individuals) today, hold a relatively higher share of the industry’s assets (59.2% as of November 2023). India’s mutual fund industry AUM-to-GDP ratio — which represents the penetration of mutual funds in the economy — is currently around 15% compared to 7-8% a decade ago. Although this ratio is low compared to the global average of around 75%, a remarkable increase in AUM is quite evident.

For deeper penetration of the mutual funds, i.e. for a bigger pie of the households’ financial assets, along with investor education, I believe, the government should also consider making mutual fund investments more tax efficient. Many of the long-standing expectations of the Indian mutual fund industry haven’t been honoured by the government so far.  We expect the budget to address the difference in tax treatment between equity mutual funds and Unit linked Insurance Plan (ULIP).

At present, when it comes to capital gains of ULIPs, if the annual premium is less than Rs 2.5 lakh, the returns are not taxed. It is important to bring both ULIP and equity mutual funds on par as regards taxation (since ULIPs are essentially investment products providing some risk cover).Furthermore, the government should revise the definition of equity-oriented mutual fund schemes by including equity Fund of Fund (FoF) schemes. For instance, even an equity FoF is regarded as debt-oriented from a tax standpoint. An equity FoF should be on par with equity-oriented mutual funds for taxation.

Similarly, the Intra-scheme switches, i.e. switching of investment within the same scheme of a mutual fund. Switches should be exempt from payment of capital gains tax as no gains are realised in such a case. Therefore, we suggest that amendments must be made so that switching of units from (a) Regular Plan to Direct Plan or vice-versa; and (b) Growth Option to Income Distribution cum Capital Withdrawal (IDCW) Option or vice-versa, within the same scheme of a mutual fund are not regarded as ‘transfer’ and hence, shall not be charged to capital gains. Moreover, we also propose that when an investor moves or switches his investment from one equity scheme to another equity scheme within the fund house, the government should consider exempting the capital gains (since it’s a case of simple allocation of the funds).

Additionally, since Indian bonds would now be part of the JPMorgan Global Bond Index and Bloomberg indices from mid-2024 onwards (expected to bring billions of dollars of foreign money into the Indian debt market), we also suggest introducing Debt Linked Saving Scheme (DLSS) on the lines of Equity Linked Saving Scheme (ELSS).  This would channelise the long-term savings of retail investors into high-quality debt instruments with tax benefits, helping in deepening the Indian Bond Market. DLSS shall enable small investors to participate in bond markets at low costs and lower risk compared to equity markets.

We also propose allowing mutual funds to channelise retirement savings with the government providing tax incentives. A Mutual Fund Linked Retirement Scheme (MFLRS) with the same tax concessions available to the National Pension System (NPS) be permitted. A majority of NPS subscribers are from the government and organised sector. The MFLRS could target individuals who are not subscribers to NPS, especially those from the unorganised sector, providing them with an option to save for a vital long-term goal such as retirement coupled with tax benefits.

Although we understand that this is an interim budget — a vote of account — before the Lok Sabha elections 2024, but many of these suggestions are structural reforms for greater financial inclusion with mutual funds. If these see the light of the day in time to come, it would be a win-win for investors and the industry.”

Mr. Vinay Singh, Executive Director and CEO of Q&I and Thomson Digital

“As we approach the upcoming budget, I strongly recommend the government prioritize funds for revolutionizing education through e-learning initiatives. It’s not only essential to provide schools with technological infrastructure but also crucial to equip educators with the necessary skills. I advocate for dedicated funds for comprehensive teacher training programs, emphasizing the integration of technology into teaching methods.

Empowering educators to navigate the digital landscape is imperative. Investing in their training ensures they effectively leverage modern tools for imparting quality education. A well-trained teaching faculty will play a crucial role in maximizing the potential of e-learning platforms, smart boards, and Chromebooks in classrooms nationwide. Education, being the cornerstone of progress, requires the government’s focused attention to shape the country’s future. Allocating resources to education means investing not only in infrastructure but also in the minds and aspirations of our young citizens. It’s crucial to recognize that education is the foundation upon which the future of our nation stands.

By allocating funds for teacher training and emphasizing the importance of education, the government sets the stage for a future-ready generation. Our investment in education is more than just a financial commitment; it’s an investment in the nation’s prosperity and global competitiveness. Together, let’s ensure that every child, regardless of background or location, receives quality education, fostering a future that’s empowered, innovative, and resilient.”  

Ms Pritika Singh, CEO At Prayag Hospitals Group

“I believe the upcoming budget is a crucial opportunity for the government to fortify the healthcare sector, especially in the wake of recent challenges. We anticipate a strategic focus on enhancing healthcare infrastructure, allocating resources for advanced medical technologies, and fostering research and development.

The government’s support in the form of tax incentives for healthcare investments, streamlined policies to encourage public-private partnerships, and increased budgetary allocation for medical education and training would greatly contribute to elevating the overall healthcare ecosystem.

Moreover, prioritizing health insurance reforms and incentivizing preventive healthcare measures can lead to a healthier nation and reduce the burden on the healthcare system.

In these unprecedented times, a collaborative effort between the government and private healthcare entities is essential. We hope the budget reflects a forward-looking approach, aligning with the industry’s expectations, and ultimately resulting in a robust healthcare framework for the nation.”

 

Naresh Ahuja, Founder and CEO at SMS Scientific Product Pvt Ltd

“Patient education remains a significantly overlooked domain, yet it holds pivotal importance in ensuring accurate information dissemination, especially in the current era dominated by the Internet and social media. The prevalence of misinformation circulating online poses a serious challenge, misleading both patients and caregivers.

There is a pressing need to promote patient education and awareness, supported by the development and implementation of tools and resources facilitating seamless and precise communication between healthcare providers and patients during consultations. Recognizing the gravity of this issue, we express our hope that the finance minister considers allocating special attention to this critical aspect.

We advocate for GST relief on products and tools designed to enhance doctor-patient communication, and we also propose providing incentives to pharmaceutical companies utilizing these products and tools as part of their services to the medical industry. Such measures will not only foster improved patient understanding but also contribute to the overall efficiency of the healthcare system.”

 

Susanta Kumar Ghosh, Scientific Advisor at Eco BioTraps and Former Scientist G at ICMR-National Institute of Malaria Research, Bengaluru

“In the 2023-24 budget plan, a substantial allocation of 89,565 crores had been designated for the health sector. The National Health Mission (NHM) is a pivotal initiative within this budget aimed at addressing both communicable and non-communicable diseases, significantly impacting health delivery. A commendable allocation of 35,947 crores had been directed towards NHM, encompassing comprehensive programs for both rural and urban health.

Within the NHM framework, specific funds have been earmarked for the National Disease Control Programme, focusing on tuberculosis and vector-borne diseases. Notably, the National Centre for Vector Borne Diseases Control (NCVBDC) primarily addresses six vector borne diseases such as malaria, Filaria, Kala-azar, Japanese Encephalitis, dengue and chikungunya besides other disease like Zika, West Nile Virus, Scrub Typhus, Kyasanur Forest Disease, Crimean-Congo Haemorrhagic fever are also come under the umbrella of NCVBDC. As per the available resources, the annual budget of NCVBDC is estimated to be around 1400 to 1500 crores. has received a dedicated budget of 1500 crores. NHM has an additional supportive budget of about 8 to 10%. Hence the total budget varies from 4200 to 4500 crores. Despite the importance of addressing vector-borne diseases, this sector only constitutes 10% of the NHM budget, amounting to 4000 crores.

This amount is not enough when three diseases malaria, filaria and Kala-azar are under the process of elimination by 2030. A significant reduction of malaria cases have been recorded since 2015. About 90% of the malaria cases are concentrated in the 8 tribal states in 27 districts. Camp-based, DASTAK-like programme launched in Uttar Pradesh for effective control of Japanese Encephalitis should find a place with sufficient funding. Elimination of Lymphatic Filariasis (ELF) is now present in 272 endemic districts. Special funding should also be made available for home-based morbidity case management. Also special financial assistance should be provided to the patients with Lymphedema needing integrative medicine. Currently less than 1000 patients are reported for Kala-azar. Strict monitoring would achieve the goal of elimination of mosquito-borne diseases. After all, ‘Log Bhagidar’ is the main focus on management of vector borne diseases effectively.”

 

Mr. Anil Nagar, Founder & CEO, Adda247

“With the Union Budget 2024 around the corner, we expect a strong focus on supporting the edtech sector. We are hopeful that the government will bring down the 18% Goods and Service Tax (GST) on online learning resources, a crucial step that will make educational services more affordable and accessible. With the rise of hybrid/online education, there’s a need to increase investment in technology infrastructure at schools and colleges. We are also hopeful to see some government backed accelerator programs, and innovation hubs that will encourage R&D and innovation in the sector. Under the Skill India Mission, the government has been focussing on upskilling programs. We foresee increased cooperation of private players in skilling India, to make youth employable.”

Shaina Ganapathy, Head of Community Outreach, Embassy Group

“As the Indian economy regains momentum, the upcoming budget presents a golden opportunity to build a nation where every individual holds the promise of a secure future. At Embassy Group, we envision a vibrant India where robust health, empowering education, and future-proof skilling form the bedrock of sustainable growth.

Imagine a nation where quality healthcare is not a privilege but a right. We urge the government to prioritise primary healthcare infrastructure, ensuring every corner of our vast landmass receives quality care. Continued investment in preventive programmes, like vaccination drives and community-based health education, can build individual and societal resilience against future health challenges. Nurturing a dynamic medical research ecosystem through public-private partnerships will not only fuel innovation but also equip us to combat unforeseen health threats.

Education must be the cornerstone of our empowered nation. We advocate for increased funding for public schools, ensuring quality education becomes a reality for every child, regardless of their background. Skill development initiatives must evolve beyond traditional vocational training, embracing digital literacy and skillsets aligned with the ever-shifting needs of modern industries. Scholarship programmes targeted at underprivileged students can bridge the access gap and unleash their immense potential.

To thrive in a dynamic economy, the budget should incentivize on-the-job training programmes and industry-academia collaborations, fostering a skilled workforce prepared for the evolving job market. Expanding apprenticeship programmes and providing tax breaks for companies investing in skill development can create a win-win situation for both employers and employees. Focusing on entrepreneurship and small business development, particularly in rural areas, will not only generate new employment opportunities but also drive inclusive growth, ensuring no one is left behind.

By investing in these critical areas, the Union Budget 2024 can become the blueprint for an India where every healthcare centre, school, and skilling initiative acts as a brick in the foundation of a nation where every individual contributes to, and benefits from, a secure and prosperous future. Let us build an India where every child’s dream, every entrepreneur’s vision, and every citizen’s aspiration can flourish, brick by brick.”

 

Abhijit Verma, Founder & MD, Avinya Industrial & Logistics Parks

“India’s warehouse and logistics sector is a thriving and quickly expanding business that is anticipated to contribute significantly to the national economy. Thanks to increased government expenditure on ports, roads, and digitization, India’s logistics costs have decreased to less than 9% of GDP and our next aim is to improve our global logistics ranking to rank amongst the top 25 countries.  As such, with Interim Budget 2024–25 approaching, one can be positive that the government will focus a lot more on manufacturing and infrastructure. In keeping with the priorities set forth in the previous budget, the upcoming interim budget for 2024–25 is anticipated to see a 10% rise in capital expenditures, or Rs 11 lakh crore. We anticipate strong growth in the construction of transportation infrastructure, particularly in relation to major freight routes, logistics parks, and road, railways, airports and highway connectivity. The sector anticipates more regulatory process simplifications for land acquisition of warehouses and logistic parks, rebate in stamp duty, registration costs, electricity charges. Incentives and regulations promoting the use of technology such as automation, AI and IoT—in warehousing and logistics might potentially receive a lot of attention in an effort to increase productivity, transparency, and tracking. The government can also look into introducing tax benefits or incentives for businesses who upgrade their warehouse facilities and implement environmentally friendly procedures. All things considered, the real estate, infrastructure, logistics, and warehousing sectors are optimistic that the Union Budget 2024–2025 will also consider reviewing RERA and GST, tax breaks, land allocation, and funding boosts, and grant industry status to real estate in order to promote the expansion of the industry and support India’s overall economic growth.”

 

Mr. Ayush Lohia, CEO, Lohia

 “The government needs to formulate a comprehensive policy on electric vehicle (EV) parts, ensuring transparency and establishing a level playing field within the industry.

Additionally, the inclusion of commercial vehicles in EV incentives is pivotal for fostering widespread growth and aligning with our shared vision of a sustainable future. While the existing 5 percent GST on electric vehicles represents commendable progress, the lack of clarity on spare parts, burdened with a 28 percent / 18 percent GST, poses a significant challenge.

As a nation, India must bolster its manufacturing capacities and fortify localized supply chains. The upcoming budget should prioritize initiatives that champion innovation, foster capacity-building, and offer meaningful incentives for widespread EV adoption. A strong recommendation is the inclusion of EVs in Priority Sector Lending, facilitating easier access to finance for manufacturers and consumers alike. Embracing a circular economy approach to battery raw materials will not only enhance India’s sustainability credentials but also position the country as a global leader in responsible EV manufacturing.

In this pivotal moment, the government’s commitment to embracing sustainable mobility transcends being a mere policy choice; it is an absolute necessity. The upcoming Union Budget represents a golden opportunity to catalyze the growth of the EV industry, shaping a future characterized by innovation, accessibility, and environmental responsibility. Through strategic fiscal measures, India can proudly carve its path as a global leader in clean and efficient transportation, heralding a transformative era in the country’s mobility landscape.

Anshul Khurana, Co-founder Entitled Solutions

“The number of gig workers has continued to increase, and gig employment seems to have significant potential to transform employment in India. As such, the most important expectation from the upcoming Budget is to define a regulatory framework around gig employment. An inclusion of gig employment and clear definition with respect to labor laws, and compliance requirements will be huge. Within this framework, an important consideration is needed for issues related to healthcare access for gig workers. The regulation of the gig workforce can pave the way for the next push that it needs to thrive.”

 

Pratham Barot CEO & Co-Founder, Zell Education

Anticipates that the upcoming interim budget will have policies that will catalyze transformative growth in the education sector. It is imperative to recognize that digital education plays a critical role in determining the course of our country and wish to see more strategic initiatives and funding dedicated to this area. Proactively encouraging technological integration, industry-academia engagement, and skill development will not only empower students but also make a substantial contribution to India’s economic recovery. In order to move our country closer to a future powered by knowledge, we expect the interim budget to reflect on the government’s commitment to creating a dynamic and globally competitive educational landscape.”

Rohit Gupta- Co-founder of College Vidya 

“In the eagerly awaited interim Union Budget, there’s a lot of buzz and hope surrounding support for online education startups. Many are anticipating strategic measures from the government, like financial incentives for tech advancements, research grants, and tax benefits. It’s seen as a move to push the creation and widespread adoption of cutting-edge educational technologies, essentially fostering innovation in the online education sector.

Moreover,  this budget might include initiatives to bridge the digital divide like providing affordable internet access to remote areas can be a game changer for the whole education system. We also expect the government to launch a new campaign for online education, similar to Mutual fund. These steps will not only boost online education startups but also make quality education more accessible across the country. In conclusion, we look forward to a budget that acknowledges the pivotal role of online education in shaping the future of learning. We expect the government to foster an environment where online education startups can thrive, contributing significantly to the education landscape of the nation and boosting the literacy rate”

Sandeep Kumar, Founder & Managing Director, Baatu Tech

“As we look ahead to the 2024 interim budget, the tech and startup world has its sights set on policies that can truly empower growth. The forthcoming budget isn’t just about financial adjustments but about cultivating an ecosystem where startups can flourish, innovate, and contribute significantly to the evolving business environment. In the 2024 budget, tax provisions are needed to streamline the management of losses and employee stock options, due to their influence on financial stability and talent retention. The government should emphasize the urgency of cybersecurity incentives, not merely as an option but as a crucial element for ensuring trust and reliability in their technological solutions. Moreover, it is expected that the government may announce measures to increase incentives for research and development (R&D) initiatives, support for tech-driven solutions, and a concerted effort to bridge the digital divide. These measures are essential for navigating the ever-evolving business landscape and fostering equal opportunities for innovation. Overall, what the industry earnestly awaits is a comprehensive policy approach that should alleviate funding challenges and create an environment conducive to the growth and success of startups.”

Samuel Joy, CEO, Huntr

 “Skill development initiatives like those from Skill India/National Skills Development Mission of India have been commendable in enhancing vocational training and certification programs. Training is undeniably the cornerstone of job opportunities. However, to truly unlock global opportunities and overcome language barriers, I urge the Indian Government to place additional emphasis on English language proficiency in their 2024 budget. This will not only enhance individual competencies but also propel India’s workforce onto the global stage, connecting them with a myriad of international prospects.”

Rohit Sethi, Director, ESS Global

“In the upcoming interim budget the maximum loan amount available for studying abroad may be raised by the government. This might be especially useful for programmes that have high tuition costs or are located in costly locations. To help students afford education loans, the government may provide subsidized interest rates.The government’s priorities and the overall situation of the budget will be major factors in deciding whether or not education loans alter”

Garima Mitra, Co-Founder, Treelife

“This will be an interim budget, also known as a Vote on Account. This is because India is having general elections in April-May 2024, and it’s customary not to make major policy changes during an election year. Therefore, the February budget will primarily focus on covering essential government expenses until a new government is formed. Don’t expect major initiatives or reforms in this one.” 

She further adds, “Attracting global supply chains away from China is a major goal, so expect incentives for manufacturing, trade deals, and infrastructure projects. The government is also aiming to reduce the fiscal deficit, so some spending cuts or tax tweaks might be on the table. Initiatives supporting renewable energy, clean technology, and climate action are likely to continue to receive attention from the government, including measures to counter possible peak power deficits as energy consumption increases in the corporate and retail sectors. Schemes aimed at poverty reduction, healthcare, education, and agriculture might see some allocation increases, resulting in a higher subsidy bill for the government.”

Gaurav Batra, Founder and CEO, Infinite Group

“In this year’s budget, we anticipate an increase in funding for education in India. This boost is crucial not only for enhancing higher education within the country but also for fostering educational partnerships with nations like Australia. Lately, there have been developments in foreign educational institutions establishing their branches in India. In light of this, it’s essential for the Indian government to allocate more funds to improve the quality of higher education. We hope that the government will unveil new policies to facilitate educational trade, benefiting both students and institutions. Additionally, we expect measures such as reduced taxes on educational expenses and student loans, making it easier for students to pursue higher education, especially abroad.”

Sourabh Deorah, CEO & Co-founder, Advantage Club

“In this interim budget, we anticipate strategic investments and policy reform incentives that will foster a thriving ecosystem for the startup sector. Empowering startups with favorable tax structures, facilitating access to funding, and fortifying the digital infrastructure would really help entrepreneurs. A forward-looking budget that echoes the pulse of the startup ecosystem will not only foster economic growth but also position India as a global hub for innovation and entrepreneurship.”

Mr Manish Maryada, Co-founder and CEO of Fello

”The upcoming 2024 interim Budget provides an opportunity to strategize the sustainable growth of FinTechs in India. A promising approach is integrating credit card services into UPI platforms, offering significant potential. Establishing a comprehensive regulatory framework for digital banking is crucial to ensure a secure and inclusive financial landscape.

Additionally, introducing policies supporting new FinTech products like Prize Linked Savings (PLS) can facilitate the seamless expansion of digital financial services nationwide. These initiatives aim to enhance inclusivity, making progress towards a more accessible financial landscape and strengthening the FinTech sector.”

Madhavan Menon, Executive Chairman, Thomas Cook India Ltd.​ 

“The Travel & Tourism sector represents a vital economic driver: With a 5.8% contribution to India’s GDP (2022) and the government’s target of achieving $1 trillion by 2047, the sector forms a strong force multiplier – across allied sec​tors, employment generation and foreign exchange receipts. Our expectations from the Union Budget include key pivots to transform India into a destination of choice:

– Infrastructural Focus: As a key fundamental for the​ sector, setting up of new airports via private participation must become a priority – thus creating a viable hub & spoke model; also rapid expansion in rail, road and waterways (sea and river cruises). Additionally, infrastructure development for high growth areas like religious circuits and underleveraged hidden gems (Lakshadweep).

– Inbound Tourism: revival of the Inbound incentive scheme – but for select destinations.
1. Tax:
– Reduced Income tax levels to provide increased disposable income in the hands of the people – a boost for travel & tourism spends
– LTA exemption annually, against twice in 4 years to catalyse domestic tourism
– Standardisation of TCS at 5% on foreign travel packages (against the current 5% and 20% slabs).
– Clarity wrt TCS on Forex card payments

2. GST is a key area and our wish list for Budget 2024-25 includes:
– Allow GST input credit facility for inbound and domestic tourism
– Centralise similar issues faced by a single assessee in multiple states – reducing unwarranted time, efforts and litigations in multiple jurisdictions
– Simplify the compliance mechanism in filing reports, reconciliations, audits”.

Vishal Suri- Managing Director, SOTC Travel

“SOTC Travel advocates for a muti-pronged approach.Albeit interim, the Union Budget offers significant opportunity as a growth accelerator for the travel & tourism sector – a valuable  contributor to the country’s GDP and a powerful employment engine. Our ask is a multi-pronged approach:
Coalesce the TCS rate on outbound tours into a single 5% slab to reduce the significant advantage enjoyed by international competitors (exempt from this levy).

Remove the deterrent to technology – in the form of the current TDS that is levied on automated bookings (self-booking tools) for internal/closed user groups such as our Business Travel platforms. This would align with the government’s commitment to ease of doing business and digital adoption, and the larger objective of building a Digital India.We are confident of the government’s continued focus on expediting infra development, especially extension of its Udan Yojana and Vande Bharat routes that ensures regional access and affordability. Connectivity to remote but viable tourism areas creates vibrant new circuits plus meaningful employment that uplifts the entire eco-system.​ Incentives that promote sustainable travel and tourism is now a critical ask as we endeavour to preserve our planet for future generations.”

 

Avi Dahiya, the Founder & CEO of Twyn.

“Technology is the great equalizer but DeepTech is the great multiplier. Technology has practically transformed the way we work and live. However, advancements in DeepTech such as Artificial Intelligence have a ‘multiplier change effect’ not just in one particular field, but across industries right from national defense to payments to aerospace. Adding to it, this change delta is not just incremental, but exponential. Hence, it becomes quintessential for every country to invest into homegrown Innovation.

Innovation is at the core of any DeepTech enterprise as they are often focused on solving for real-world complexities through advanced technologies. However, there is high risk associated with DeepTech startups and unlike other startups, they also require larger investments given that the R&D costs are significantly higher. Besides, such startups have a longer gestation period. With the growing prominence and implementation of DeepTech across various industries, we expect increased investment in this space in the forthcoming budget to further enhance R&D mechanisms. Increased investment will also encourage entrepreneurs to explore new ideas and open up possibilities for innovation in mainstream industries. In order to realize the vision of transforming 2020’s into a ‘Techade’ for India, we expect to see initiatives that will enhance collaboration between the industry, regulator and academia. The growth of the sector has also led to an increased demand for tech talent in the country. The upcoming budget should focus on increased investments in skill development of the youth in the technology sector. India is well poised to become the world’s technology and innovation hub in the coming decades, and this can only be done by strengthening and realizing the full potential of DeepTech.”

 

Mr. Sarvagya Mishra, Co-founder & Director at SuperBot

As we stand at the crossroads of innovation with Union Budget 2024 on the horizon, our anticipation at SuperBot goes beyond fiscal measures. We envision a budget that transcends traditional boundaries, streamlining Ease of Investing, catalyzing a robust Startup Funding Scenario, and laying the foundation for profound Digital Transformation within the startup landscape. We look to this budget not just for resource allocation but as a strategic path towards a future where Artificial Intelligence (AI) seamlessly integrates into our startup ecosystem. We anticipate targeted initiatives that propel AI research, development, and adoption, fostering innovation and ensuring global competitiveness.

Shyatto Raha, Founder & CEO, MyHealthcare 

“In anticipation of the Union Budget 2024, aligning with India’s aspirations in Amrit Kaal 2047, the healthcare sector envisions a transformative leap for the nation’s healthcare landscape. The Ayushman Bharat Digital Mission (ABDM) has been a monumental stride, fostering connectivity among all stakeholders in the healthcare ecosystem. However, to fully unlock the transformative potential of digital health, it is imperative for the government to reinforce its commitment and bridge existing gaps.

While ABDM lays a robust foundation, there is a pressing need for the government to incentivise healthcare providers and health-tech companies, to actively engage in delivering the healthcare digitalisation roadmap and building a unified healthcare system.

The Government should actively explore the opportunity of engaging healthcare start-ups, to build a partnership between National Health Authority and healthcare providers, in implementation of clinical ecosystems such as electronic medical records(EMR). This will help in building a digital, patient longitudinal history, which through the NHA ecosystem can deliver the unified healthcare system for patients. The deployment of EMRs will help in standardisation of healthcare delivery, offer better insights into clinical data analytics, which can help healthcare providers to manage the complete patient care continuum and deliver better care outcomes.

This comprehensive approach not only encourages healthcare providers to embrace digital technologies but also empowers entities like ours to significantly contribute to the government’s vision in building an effective healthcare system for India. We hope the Union Budget 2024, will lay emphasis in building an implementation roadmap for healthcare digitalisation, which incentivises the healthcare sector to achieve Prime Minister Narendra Modi’s vision for Amrit Kaal 2047 and delivering quality healthcare for all.”

 

Mr. Brajendra Singh Tomar, CEO & Co-founder, Finayo

“As the Union Budget 2024-25 draws near, the electric vehicle (EV) industry in India is eagerly anticipating the rollout of policies aimed at propelling its growth and advancing the nation’s e-mobility objectives. We expect sustained backing in the form of demand-side incentives, including tax benefits for electric vehicle purchasers and an extension of subsidies under FAME-II. The establishment of a robust EV charging infrastructure is equally crucial, particularly in Tier II and Tier III cities. We call upon the government to allocate substantial funds for the development of charging facilities. Emphasizing open data standards and APIs for charging networks is imperative in the budget, as this would promote interoperability and foster a flourishing software ecosystem. This approach ensures seamless access for EV drivers to any charging station, irrespective of the provider. Moreover, we advocate for fiscal incentives, such as tax rebates, to support investments in research and development for software solutions facilitating advanced charging. This strategy aims to spur innovation in areas like smart grid integration, dynamic pricing, and demand forecasting, optimizing energy utilization and enhancing charging efficiency. By prioritizing these measures, the budget stands to significantly influence India’s EV revolution, facilitating a transition to a more environmentally sustainable future.”

 

Mr. Alok Kashyap, Founder and CEO at Yatiken Software Solutions

At Yatiken Software Solutions, our expectations for Union Budget 2024 align with key areas crucial for the IT sector’s growth. We look forward to potential allocations for EV infrastructure development, presenting exciting opportunities in software for EV systems, IoT integration for smart charging, and data analytics for EV performance optimization. Additionally, we hope for a significant GST relaxation for the service sector, leading to a reduction in the 18% GST rate. This move would alleviate operational costs for IT firms, enhancing global competitiveness and providing resources for further innovation and talent development. Besides that, initiatives for upskilling programs in emerging technologies such as AI, blockchain, and cybersecurity are critical for the continuous growth of the tech industry. Collaborative efforts between educational institutions and industry partnerships can ensure a skilled workforce. Likewise, the establishment of tech-focused Special Economic Zones (SEZs) holds promise, offering tax benefits and infrastructure support to attract foreign investments and foster innovation in the IT sector. Moreover, investments in internet adoption and 5G deployment, especially in healthcare, could create opportunities for developing applications in telemedicine, remote monitoring, and data-driven healthcare solutions. These expectations, if addressed in the Union Budget, have the potential to remarkably shape the trajectory of the IT sector by fostering innovation, supporting infrastructure development, and enhancing skills in emerging technologies.

 Chandresh Sethia, Co-founder, EVRE

“One of the foremost things that the industry is looking forward to is the reduction in the current GST rate of 18% for charging infrastructure. Aligning this tax rate with the taxation on electricity sales would not only improve the accessibility of electric vehicle charging but also foster the widespread adoption of sustainable transportation solutions.

Additionally, we urge the Government to offer tax rebates to encourage investments in research and development for charger hardware and large-scale charging infrastructure technologies.” 

 

Mr. Sonit Jain CEO GajShield Infotech – A Renowned Data Security Firewall Organization. 

“The government is steadfast in its commitment to economic deregulation and the initiation of systemic reforms. Recognising the imperative role of Information Technology, it is dedicated to fostering inclusive growth across all sectors. Aligned with our Prime Minister’s visionary outlook for India, there is a potential era of heightened digitisation on the horizon, propelled by Artificial Intelligence and regular technological disruptions. As a technology-driven entity in the dynamic tapestry of India, we perceive innovation as the pulsating force behind progress. In the anticipation of the upcoming budget, we envisage a future where strategic investments in technology become the cornerstone of our nation’s growth. Embracing the ‘Make in India’ initiative, we aspire to witness a robust ecosystem that not only fosters innovation but also encourages indigenous production and technological self-sufficiency. We anticipate policies that empower businesses and individuals to harness the full potential of technology, propelling India into a new era of economic resilience and technological excellence. This collaborative effort between government initiatives and tech-driven enterprises will undoubtedly steer us towards a future where ‘Made in India’ resonates with global technological prowess.”

Srinivasa Bharathy, CEO & MD, Adrenalin eSystem- Pioneer in HR Tech Space

“We anticipate a budget geared towards reinforcing India’s position as a global technology powerhouse, further underlining our ascent as a frontline leader. The resilience of our domestic economy amid worldwide volatility has been remarkable. With India’s GDP surging by 7.6% in Q3 of 2023 and an impressive 7.8% in Q1 of FY24, our nation stands out, thanks to vigorous internal demand even as a worldwide economic deceleration impacts exports. The upcoming budget is expected to adopt a balanced approach. We foresee an interim financial plan that will address immediate fiscal needs while laying the groundwork for a comprehensive budget that will steer long-term economic strategy.”

Ratheesh D, Director, CABT Logistics– First Mile, Mid Mile & Last Mile services

The Indian logistics industry is growing, due to a flourishing e-commerce market and technological advancement. The industry has progressed from a transportation and storage-focused activity to a specialized function that now encompasses end-to-end product planning and management, value-added services for last-mile delivery, predictive planning, and analytics, among other things.

In the upcoming 2024 budget, emphasis is placed on bolstering global manufacturing, positioning India as a viable alternative to China. This strategic move is set to propel significant growth in the logistics sector. Led by Prime Minister Narendra Modi, the government has initiated substantial infrastructure projects with a specific focus on fortifying logistics. Effective budgetary strategies, including financial incentives coupled with investments in infrastructure projects to reduce logistics costs, are crucial.

The logistics sector in India was valued at US$ 250 billion in 2021, with the market predicted to increase to an astounding US$ 380 billion by 2025, at a healthy 10%-12% year-on-year growth rate. Moreover, the government is planning to reduce the logistics and supply chain cost in India from 13-14% to 10% of the GDP as per industry standards.

The budget is anticipated to introduce proactive measures, creating an enabling ecosystem for the integrated growth of logistics and manufacturing.

Mr Vishal Jain, Co founder, Roadcast– End to end supply chain management solution provider

In the year 2022, the size of the Indian logistics market was around 274 billion U.S. dollar. It was estimated that this market would grow to 563 billion dollars in 2030, at a compound annual growth rate 9.4 percent. India has a higher logistics cost as a percentage of GDP at 14 percent, compared to the BRICS average of 11 percent and with the country setting its sight on being the global

Manufacturing hub, the logistics sector will need attention as well.

For the 2024 budget, the focus is on significant strides in global manufacturing. The country is looking at being a viable alternative to China as a manufacturing hub. This means that the logistics sector will also be witnessing increased growth and progress. The government, led by Prime Minister Narendra Modi, has launched substantial infrastructure development projects with a specific focus on strengthening the logistics sector. These initiatives are viewed as crucial steps towards positioning India as a central hub for manufacturing. Government programs like PM Gati Shakti and the National Logistics Policy are anticipated to create a supportive environment, fostering the growth of India’s manufacturing sector.

To achieve this, the implementation of effective budgetary strategies, including the provision of financial and regulatory incentives such as Production-Linked Incentive (PLI) schemes, alongside investments in infrastructure projects aimed at reducing domestic logistics costs, remains pivotal. Enhancing the overall efficiency of India’s supply chain, particularly through improvements in transportation infrastructure, is imperative. The budget, we hope will include proactive measures to create an enabling ecosystem for logistics and manufacturing.

Mr Ishan Chaturvedi, Co founder, Vareyn Solar- Turn-key Solar EPC Company offering installations from kilo-Watts to Mega-Watts

In the midst of global upheavals, India must rely on its internal dynamics for medium-term growth, with the imminent interim budget laying the groundwork for the comprehensive budget later this year. Last year’s budget focused on the significance of power distribution reform and a shift towards clean energy. As an industry we are hoping for a substantial increase in budget allocation for the renewable energy sector, coupled with incentives for energy storage systems, heightened capital expenditure on green energy transmission, and support for emerging eco-friendly power sources.

This budget presents an opportunity for the government to prioritize the transition from carbon-centric to energy-efficient policies. Financial institutions hold a pivotal role in addressing climate change. Therefore, promoting investments in green bonds and renewable energy enterprises becomes imperative. Such incentives can propel India towards achieving its net-zero emission goal by 2070 and securing 50 percent of energy needs from renewable sources by 2030.

 

Namit Chugh, Principal, W Health Ventures 

The previous budget marked significant advancements in India’s healthcare sector, particularly in digital health initiatives. Looking ahead, we anticipate the continuation of this positive trajectory in the Union Budget 2024. There was a push towards enhancing mental health and AIDS-related investments last year and we expect the focus this year will be on new single specialties such as cancer. India’s cancer burden is growing ~10% YoY, and expected to reach ~10M cases by 2027. Lack of access to early cancer detection and treatment is driving up mortality rates as almost 60-70% of cancers are detected in Stages 3 and 4. A strong cancer detection program and a focus on expanding the oncology infrastructure will be positive step in this direction.

Further as India strides into a transformative phase in tech-driven healthcare, we expect government support in promoting innovation and establishing effective policies to drive the smooth incorporation of AI in the healthcare sector. Such commitments have the potential not only to enhance medical services in the country but also to position the nation as a hub for health-tech innovation.

We also hope that the government’s manufacturing focus is extended to medical devices by offering more incentives and programs for supporting local medical devices production and export.

 

Palash Agrawal, the founder/director of Vedas Exports

In the context of the Made in India Campaigns, the current emphasis for domestic players revolves around incentives related to exhibitions. Within the MSME sector, there is a focus on exhibition incentive marketing. It has been observed that the budget for such initiatives should be substantially increased, potentially doubling, to cope with rising expenses. According to existing policies, the allocation for each show ranges from ₹80,000 to ₹1 lakh. Manufacturers hope the budget will see a significant boost to address the escalating costs. Given the three to fourfold increase in exhibition expenditure, our sector is directing attention to budgetary considerations.

Concerning machinery, there is a notable lack of incentives, and this situation should be rectified, mainly through an enhanced tax reduction scheme. On the labor front, the absence of taxation poses challenges for companies with a strong focus on labor incentives, as they miss out on GST benefits

The sector is also grappling with a significant issue related to input GST, where some companies issue bills but fail to fulfill the GST obligations. Unfortunately, the lack of stringent laws makes it challenging for companies to claim their rightful entitlements in such cases.

 

Harshwardhan Patwardhan, Founder, Chappers

The mandatory requirement for ESI PF kicks in for companies with more than 20 employees. It is high time to consider increasing this threshold to 50 employees, a move that would significantly boost startups and lessen their legal complexities.

The process of obtaining loans and cash credit facilities from banks remains a difficult task. If the government initiates the provision of cash credit facilities to startups, it will catalyze the startup economy. Instead of allocating funds elsewhere, the government should establish a dedicated fund that provides startups with loans and cash credit facilities.

There is also a need to ease the stringent rules of GST. While everyone aspires to be part of the GST economy, the strict regulations from the GST department limit companies’ flexibility. For instance, many companies operate on a credit period of 45-60 days, yet they must pay GST within 20 days. If the company does not receive the money, how will it pay GST on that amount within the stipulated time frame.

 

Dr. Sujit Paul, Group CEO at Zota Healthcare Ltd.

“To ensure affordable and world-class healthcare for the Indian masses, the Union Budget 2024 must prioritize key initiatives. Firstly, increasing healthcare budget allocation to 2.5% of GDP will bolster reforms and infrastructure nationwide. Secondly, a dedicated budget for upskilling healthcare workers, including pharmacists, is essential. Thirdly, implementing a PLI scheme for the healthcare sector will incentivize entities to enhance health infrastructure. Restructuring the healthcare GST framework addresses taxation challenges for providers. Additionally, integrating generic medicines into Ayushman Bharat yojana eliminates out-of-pocket expenses. Embracing telehealth in Ayushman Bharat yojana is crucial. The Budget’s positive focus on pharmaceutical R&D promises innovation and breakthroughs, fostering an environment for an Atma Nirbhar Bharat. Success hinges on sustained funding, industry collaboration, and attracting diverse talent while maintaining safety standards, aligning with our goal of advancing a healthcare system tailored to the masses’ needs.”

Mr. Manideep Katepalli, Co-Founder at BikeWo

“Despite last year’s commendable 33% surge in EV registrations, our industry encounters persistent challenges. Chief among these hurdles is the imperative need for robust charging infrastructure, pivotal in inspiring confidence among potential buyers and propelling the widespread adoption of electric vehicles (EVs) as a sustainable mode of transportation.
Another barrier remains the relatively higher initial cost of EVs, often deterring consumers. However, the promise of life tax subsidies for electric vehicles and the availability of accessible EV financing options hold immense potential to mitigate this challenge.

The integration of EV infrastructure into Priority Sector Lending (PSL) is poised to bolster credit flow into the sector by mandating financial institutions to provide support, thus promising a significant boon.

A supportive regulatory framework coupled with financial incentives aimed at fostering research and development within the EV sector stands as indispensable pillars. These measures not only drive innovation but also attract investments, creating an environment conducive to widespread EV adoption.

Ultimately, these strategic initiatives play a pivotal role in establishing an enduringly sustainable and eco-friendly transportation ecosystem.”

Mr. George Alexander Muthoot, Managing Director, Muthoot Finance

Indian households possess up to 25,000 tonnes of gold which lies idle and can be leveraged as an immediate and reliable source of financing to meet immediate personal or business needs. Granting ‘priority sector status’  to gold loans and allowing a ‘Gold linked credit line via UPI’ can go a long way to help households/small business owners meet their financing needs and monetise idle gold jewellery.

We believe giving priority sector status to eligible gold loans will benefit the bottom of the pyramid and enhance financial inclusion. Typically small borrowers need loans under Rs 50,000 (about 20 grams of gold collateral) for short durations like a year. Herein gold loan NBFCs can play an important role to fulfill the needs of small borrowers, self-employed, micro business owners, and help address their finance needs or working capital needs. Gold loans against jewellery also is a vital funding source for MSMEs. Gold loans provided by banks to farmers do get priority sector status, but not gold loans provided by NBFCs. Extending priority status to all micro gold loans (under Rs. 50,000) by removing the current distinction between NBFCs and banks can enable gold loan NBFCs access to increased funding

Gold linked credit line enabled via UPI

While banks offer credit line to companies like an overdraft,Banks don’t have a small credit line product for a common man which can help address monthly short term finance needs and as a result the common man either keeps huge balance in savings account, or resorts to a credit card or a personal loan to meet immediate gaps in monthly finance needs. 

We believe that a ‘gold linked credit line via UPI’ will be ideal for common man. For this extending the UPI linkage (payment system) by NBFCs is the first requirement, and once this is allowed, gold loan NBFCs can extend a credit line to common man. Unlike a credit card, this product will work like a secured credit extended by NBFCs and also attract lower interest rate (of 12%-18%) as compared to a higher interest rate (of ~36%) on a credit card.

Mr. Aryaman Vir, CEO of WiseX

As the interim budget nears, we at WiseX are closely watching for the expected rise in the 80C tax deduction limit to ₹2.5 lakh, which could greatly benefit taxpayers. Our focus on alternative investment and real estate has us keenly aware of the need for reform in long-term capital gains taxation. With the current 20% tax rate after indexation on real estate for holdings beyond 24 months, we’re advocating for more favorable policies to encourage investment in this crucial sector. 

We’re also optimistic about the proposed enhancements in financing, which are vital for real estate sector growth. The government’s initiative to create AI centers of excellence signifies a dedication to technological advancement, with effects that will extend throughout the economy and invigorate the real estate market. Supporting incubators and accelerators for startups is not merely about fostering innovation; it’s about preserving consumer confidence in the rapidly expanding domains of AI and ML, which is paramount for a trust-based relationship with technology. 

 

Pravin Agarwala, Co-founder and Group CEO, BetterPlace

“The interim budget, because of the context in which it is being tabled, provides an immense opportunity to become the starting point for a pole vaulting India. While India’s capital expenditure driven growth has reaped large benefits for the economy, it poses the risk of India falling into the middle income trap. The only way to escape it is through growth in total factor productivity (TFP) which is led by an inclusive and skilled workforce. Data shows that while capital expenditure in terms of actuals has grown by 39.06% between 2020-21 and 2021-22, TFP growth has been -0.9%. Moreover, a recent RBI report states that the sectors which saw the highest growth in TFP were labor-intensive sectors as opposed to capital-intensive sectors. Hence, our people are our key to a pole vaulting economy.

Since the interim budget needs to be prudent while still creating a large-scale impact before the elections, investing in digital public infrastructure (DPIs) and generative AI geared towards creating a more inclusive and skilled workforce is the way forward. The first investment the budget must make is to strengthen existing workforce DPIs like National Career Service and e-Shram portal to make a robust infrastructure like ONDC and UPI which can be leveraged by the private sectors to train, recruit and retain workers. The second investment must be to integrate GenAI into these DPIs and also creating funds for more innovation in GenAI for workforce development. GenAI has the ability to make the employment and skilling process more demand-linked, achieving better outcomes.

Companies are already using these solutions to manage their workforce and are seeing productivity gains of over 70%. However, for it to pole-vault the economy, it needs to be scaled, and the interim budget is the right opportunity we should leverage to accelerate our escape from the middle income trap.

Mr Dinesh Kumar Poobalan, CEO & CTO, Greatify 

“The Indian Edtech market has seen steady growth in recent years due to technological advancements, increased demand for skills in a competitive job market and improved accessibility of education. The sector is projected to continue growing in 2024. Various reforms and policies have been implemented every year, favouring the education system. However, we expect more robust system to be developed, investing in professional development and training opportunities to help us effectively implement blended learning methods in the classroom and utilize technology-enabled infrastructure. We also expect a decrease in Goods and Services Tax on resources for offline and online education providers.

The education system also needs to be modernized to attract more international students. This will require substantial investments in the education system, particularly emphasizing higher education. As per the data, higher education investment will also help improve the gross enrolment ratio (GER), which is set to reach 50% by 2035.

I also feel that since many graduates are struggling with placements, earmarking funds for new initiatives that help re-invent the education sector in the 21st century through the integration of learning and working will yield a significant return on investment for learners, employers and society as a whole. These initiatives are expected to enhance the quality of education in India and contribute to developing a better-educated workforce.”

Mr. Manish Mehan, CEO and MD of TK Elevator India

“The real estate sector plays a significant role in the nation’s economic growth. The sector is looking forward to policy interventions that promote sustainable development, encourage foreign direct investment, and streamline regulatory processes. The real estate industry is hopeful that the upcoming budget will incorporate transformative measures that will invigorate the Indian real estate sector. Some of the key demands that realty sector stakeholders want from Union Budget 2024-25 are Industry Status and Interest Subvention Scheme, Reduced GST Rate, Infrastructure status to the affordable housing segment, addressing liquidity concerns, and simplifying regulations. Having said that, the elevators have become an integral part of modern urban living. In India, where real estate is booming and infrastructure is rapidly evolving, elevator industry is playing a crucial role in ensuring efficient vertical mobility. A growing and well performing real estate industry will certainly propel the growth of elevator industry.”

Mohan Lakhamraju, Founder and CEO of Great Learning

“With technological advancements happening every minute, relying just on a college education is not enough for the Indian youth. They will have to keep updating and upskilling themselves to utilise their full potential in strengthening our economy. Removal or Reduction of GST rate from upskilling programs in the upcoming Union Budget will help solve this by democratising access to quality education, fostering innovation and employability. Formalising the edtech sector and streamlining operations through regulations and policies instils confidence among stakeholders,  fostering an environment conducive to growth. These changes ultimately align with the national goal of developing a more responsive education system, equipping the workforce in this knowledge-driven economy to meet the evolving demands of the job market.”

Mr. Prateek Maheshwari, Co-Chair of India Edtech Consortium (IEC) and Co-Founder of Physics Wallah (PW) 

 

“In view of upcoming interim Union Budget, we would like to appeal to government to increase education sector’s budget, and reduce GST slab from 18% to 5% on educational products & services. Our aim is to establish a strong foundation for the country’s children, particularly those from economically disadvantaged backgrounds. Additionally, given the evolving world and our shifting approach to education, driving a change to ensure affordable and quality education at scale needs more collaboration for public and private sectors. For this, reducing GST on educational services would also remove financial strain on parents, promoting affordability. Apart from this, focusing on collectively enhancing youth skills to increase employability and reduce skilling gaps is imperative for Indian economy’s growth.”

Mr. Anand Roy, MD & CEO, Star Health And Allied Insurance Co. Ltd

“Health insurance has become a basic necessity today whether one is self- employed or a salaried person. It is a critical component in mitigating rising healthcare costs while accessing quality health care treatments for individuals and families. Senior citizens constitute approximately 9% of our population, and with a higher life expectancy, access to health insurance protection is crucial.

However, penetration of health insurance continues to be very low in our country. More than 50% of healthcare expenses are met out of pocket.  Given importance of health insurance in safeguarding families and senior citizens against increasing hospitalization costs and alleviating financial strains, in light of these circumstances the insurance industry would urge the government to consider a reduction in existing 18% GST rate on retail health insurance products. This reduction in GST rate would not only enhance affordability of health insurance for the general public but also contribute to increasing insurance penetration and accessibility, particularly in tier-II, tier-III cities, and rural markets.“

 

Ms Aditi Balbir, Co-founder, EcoRatings

“The 2024 budget should prioritize sustainability in the infrastructure and energy sectors. Emphasizing sustainable agriculture and striving for net zero targets are also key focal points. We also expect measures including incentivizing sustainability in the retail sector, extending industry status recognition, and encouraging the adoption of Environmental, Social, and Governance (ESG) ratings across various sectors beyond securities and banks. To reinforce the link between sustainability and financial benefits, the budget should introduce substantial incentives, such as lower interest rates for ESG loans and grants for companies compliant with ESG standards. This approach will establish a direct correlation between sustainability efforts and financial advantages. Furthermore, the budget should also envision the mandatory adoption of comprehensive compliances, such as the Business Responsibility and Sustainability Report (BRSR), for all companies. Additionally, the introduction of product-level ratings to enhance transparency, providing clearer insights into ESG parameters.”

“In India, there are currently only three diversity-focused funds—AWE, She Capital, and Arise—each facing the challenge of relatively small fund sizes. To effectively advance the agenda of women entrepreneurship, the upcoming budget must prioritize and allocate substantial resources to support their access to capital. Specifically, there is a pressing need for increased equity-based funding. The government should focus on allocating funds for risk capital rather than relying solely on loan-based strategies. Many female entrepreneurs often discover that they are ineligible for existing schemes, emphasizing the necessity for a more inclusive and accessible financial ecosystem. Therefore, the ask in the upcoming budget is pretty straightforward: the budget should allocate more capital to diversity-focused funds, acknowledging the pivotal role women entrepreneurs play in fostering a more equitable business landscape in India.”

Ms Shreedha Singh, CEO & Co-Founder, T.A.C – The Ayurveda Company 

“In anticipation of the 2024 interim budget, TAC envisions a transformative fiscal landscape that extends clear guidance and robust support to the startup ecosystem. Our expectations encompass favorable tax policies, with a keen focus on the treatment of carry-forward losses and the structuring of employee stock options. Furthermore, TAC anticipates a strategic alignment in healthcare policies, reflecting the nation’s pivot towards preventive healthcare, thereby enhancing accessibility and catering to the rising consumer emphasis on health and wellness. In advocating for reduced offshore dependencies, TAC urges specific provisions that support businesses dedicated to indigenous brand creation and the fortification of our nation’s manufacturing prowess. The call for subsidized loans underscores our belief in a budget that propels self-reliance and domestic growth.”

Mr. Anand Sri Ganesh, CEO of NSRCEL IIMB

“The incubation ecosystem in India is at a curious cusp. There are over 1000 incubators in India today. However, very few are truly able to work with ventures to unlock innovation and create sustainable, scalable businesses. Of the over 100,000 startups incorporated in the country since 2016, less than 5% work with incubators to gain entrepreneurial expertise. Despite this, startups are estimated to contribute to 5-6% of our GDP growth. This implies we have a huge upside opportunity by upgrading Incubation capability to enable startups to truly innovate and scale. On the other hand, the incubation ecosystem runs the risk of becoming irrelevant to the startup ecosystem beyond being incidental contributors. Both scenarios have played out in other entrepreneurship ecosystems across the world.

This is a market failure that requires concerted policy intervention that puts the incubator at the centre and enables world-class incubation capability at the national scale.

It will require a combination of capability building, incentive mechanisms for corporates and science & technology institutes to work with incubators systemically, and fiscal and monetary support to enable incubators themselves to sustain and continuously innovate.”

Pragya Mittal, Co-Founder and Director at EVIFY.

The government at the center has a lot of focus on the growth of the EV Industry as a whole, but the same commitment needs to be showcased by the state governments as well. For example, in Gujarat, we are paying double RTO charges as compared to other states for the EV vehicles which makes it an expensive as well as a less preferred option. There should be standardised norms all across the states for equal opportunities of growth pan India.

 

Mr. 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.

 

Epigral Ltd, Mr Maulik Patel – CMD.

India can be first choice for major markets

“Based on robust performances from various sectors, this year can prove to be a crucial year, as India has the potential to become World’s most preferred market in sectors like chemical & specialty chemicals, renewable energy, green hydrogen, semi-conductors and ports, etc.

The chemical industry has had a slow last year with low product-realisations, disrupted supply-chain and high inflation rates. Additionally, China dumping manufactured goods in global markets in high quantity further reduced imbalances and lowered product-realisation. Upcoming budget needs to focus on tightening the noose on anti-dumping policies which is hurting Indian chemical manufacturers gravely.

Although this is an interim budget, as one of the largest chemical manufacturers, we want to see more capital investments in infrastructure development, policies quickening land acquisitions and improving supply-chain infrastructure as well.”

 

Mr. Chakravarthi C, Managing Director, Quantum Energy Automobiles Private Limited

In anticipation of the upcoming budget, the Electric Vehicle (EV) industry in India is fervently advocating for crucial measures to sustain and enhance the sector’s growth. With the imminent expiration of the FAME II subsidy program in March 2024, there is a collective call from stakeholders to extend it, ensuring ongoing efforts to enhance the affordability and accessibility of electric vehicles for consumers. Extending the program would not only solidify support for the EV industry but also align with the government’s ambitious target of achieving 30% electric vehicles on Indian roads by 2030. Complementing this extension, the industry is hopeful for a significant reduction in the GST on lithium-ion battery packs and cells from 18% to 5%. Such a revision would substantially alleviate manufacturing costs, enabling manufacturers to offer EVs at more competitive prices, further encouraging consumer adoption. Additionally, stakeholders are seeking a standardized policy for the battery-swapping market. The current fragmentation and varied battery types across different players have led to compatibility challenges and safety concerns, including incidents of fires at swapping stations due to inferior batteries. A standardized policy specifying the type of battery pack, cell, dimensions, and connectors is expected to enhance safety and streamline charging infrastructure, fostering a more reliable and secure environment for EV users.

Mr. Kumar Gaurav, Co Founder of Cashaa

As we eagerly anticipate the Union Budget of 2024, Cashaa is hopeful for transformative measures that will shape the future of the Indian crypto sector. Our primary expectation is a reduction in the flat tax rate from 30%, aligning crypto gains with other asset classes like debt and equity. We also advocate for a significant drop in the high TDS rate from 1% to approximately 0.01%, aiming to rekindle trading volumes crucial for a vibrant market. A decisive and supportive regulatory framework is pivotal, as it will not only encourage innovation but also attract vital investments to fuel the growth of the crypto sector in India. While our optimism runs high, we remain mindful of the interim nature of this budget, preceding the 2024 general elections.

 

Dr. Krishna Veer Singh, Co-Founder, Lissun

In the upcoming budget, we anticipate further emphasis on mental health support. The government has already acknowledged its importance, introducing initiatives like tele Manas and incorporating IPD coverage for mental health through IRDA. However, there are two critical areas that require attention. First, India urgently needs a greater number of qualified mental health professionals, particularly clinical psychologists and psychiatric social workers. The government should focus on increasing these numbers to meet the rising demand, a trend that has become especially pronounced in the aftermath of the COVID-19 pandemic. Secondly, psychotherapy, a fundamental component of mental health treatment, remains uncovered by insurance. Ensuring OPD coverage for psychotherapy is essential; it would address affordability issues, making these vital services accessible to a broader segment of the population.

Neel Juriasingani, Co-Founder and CEO Datacultr

“As we eagerly await the 2024 Budget, the startup community is hopeful for a fiscal strategy that not only acknowledges our vital role in the nation’s economy but also actively fosters and advances India’s growth ambitions. A sustained emphasis on early-stage funding, coupled with more advantageous tax policies like extended tax holidays or reduced corporate tax rates, is essential to spur startup growth and attract investments in the country. We are earnestly hoping that this budget will introduce streamlined regulatory procedures, more lenient GST rates, and a steadfast dedication to international trade, particularly in tech exports. Such initiatives would significantly contribute to creating a conducive environment for startup success. Additionally, we anticipate the 2024 General Budget to introduce more comprehensive measures for the protection of intellectual property.”

 

Jasdeep Singh, Group CEO, CARE Hospitals Group

“In the upcoming 2024 budget, the government could consider enhancing the budget for the healthcare industry. The increased budget allocations can improve accessibility and affordability to people not just in Tier I cities, but also in Tier II and Tier III cities. Simplifying and making fairer taxes, specifically reforming GST, can contribute to this goal. The government could also consider a framework to focus on healthcare insurance, medical supplies and equipment, telemedicine, and medical tourism sectors of the healthcare industry.

In my view, there is a critical need for focused attention on hospital infrastructure. While hospitals delivered essential and high-quality treatment during the pandemic, the prevailing circumstances underscored the inadequacies in facilities, particularly a glaring shortage of beds and treatment options, especially in non-metro cities. Consequently, the government must prioritize enhancing infrastructure, especially in non-metro areas, ensuring that individuals can readily access healthcare when required. This initiative will not only benefit local communities but also contribute to the overall improvement of healthcare services on a global scale.

Allocating funds for training and development programs for healthcare providers, such as doctors and nurses, is essential. This will enhance their skills and contribute to better healthcare outcomes

2024 could be a promising year for the healthcare sector. We are hoping the government is going to consider the healthcare industry as a focus in this year’s union budget.”

Dr. Yajulu Medury, Vice-Chancellor, Mahindra University

In the upcoming budget, we anticipate a significant emphasis on elevating higher education. This entails a strategic allocation of augmented funds towards infrastructure development, research endeavors, and skill enhancement initiatives. The infusion of additional financial support is poised to empower educational institutions to revamp facilities, embrace cutting-edge technologies, and attract top-notch faculty. This increased funding not only fortifies institutions but also plays a pivotal role in augmenting the overall quality of education, nurturing a highly skilled workforce. To ensure inclusivity, the proposed budget is expected to introduce tax incentives and financial aid programs, making education more accessible. Beyond this, the government’s attention is likely to extend to teacher training and initiatives to attract a diverse pool of international students. Encouraging collaborations between academia and industry will further fortify skill development efforts. These concerted measures underscore the commitment towards fostering a well-rounded, inclusive, and technologically advanced education system, thereby contributing significantly to the nation’s progress.

 

Sandeep Trehan, President, Marketing & Business Development, THINK Gas

“We hope that the budget’s potential initiatives for city gas distribution (CGD) players holds promise for accelerating the adoption of natural gas across the country. We expect the central government to coordinate with the state governments and bring about policy initiatives such as reduction in VAT or bringing natural gas under the GST ambit. We also expect the government to make usage of natural gas mandatory for areas where the infrastructure is ready and gas is flowing. All this will help achieve the government’s target of India becoming a gas-based economy and the share improving to 15% by 2030.”

 

Mr. Manikanth challa, CEO and founder, Workruit

“According to the budget document for the fiscal year 2023-24, the government has allocated over 1 lakh crore to the Ministry of Education, emphasizing education and comprehensive skill-building for students. We anticipate a continuation of this trend, with a focus on holistic development that aligns education, employment, and health to foster a resilient and inclusive economy. Bridging the digital divide, especially in rural areas, and promoting online education initiatives are critical expectations.

In the realm of employment, our expectations center around programs aimed at job creation, particularly in sectors affected by the pandemic. Skill development initiatives, aligning the workforce with emerging market demands, and support for entrepreneurship are seen as instrumental in stimulating economic growth and creating job opportunities. Our overarching hope is for a budget that seamlessly integrates education, employment, and health, leveraging digital technologies to enhance efficiency, transparency, and inclusivity across these crucial sectors. Ultimately, this approach aims to propel India towards a resilient and digitally empowered future”.

Uday Chawla, Managing Partner, TRANSEARCH India

“In 2024, significant salary increases are being planned for employees by Indian companies, despite the global economic slowdown. An approximately 9.8% salary bump is expected for employees, building on the noteworthy 10% increase observed in 2023.

However, the optimistic outlook for salaried leaders is met with a challenge due to the high-income tax policies in India. Personal income tax, ranging from 5% to 37%, and additional charges contribute to a notable tax burden. In contrast, countries like Hong Kong (15%), Sri Lanka (18%), and Singapore (22%) feature more favourable tax systems, rendering them attractive for top-tier talent. As we now transition to remote working and the globalization of businesses, there is a tangible threat that senior talent may be attracted to relocate to countries that offer the most efficient tax structures and a superior work-life quality and balance.

As India strives to position itself as a global powerhouse, there is a recognized necessity for policies aimed at mitigating the tax burden on salaried employees, particularly senior leaders. The pressing requirement of the hour lies in the meticulous crafting of policies that transcend mere attraction, emphasizing the importance of nurturing and retaining top-tier talent. This strategic approach stands as an indispensable element in fortifying the nation’s competitive edge on the global stage.

While major announcements may be postponed until after the 2024 General Elections, the interim Union Budget presents a significant opportunity to address ongoing concerns and establish a foundation for future economic growth.”

Samarth Kholkar, CEO and Co-Founder, BLive

“The anticipation is that the government will incorporate the Electric Vehicle (EV) sector into Priority Sector Lending (PSL), facilitating more accessible financing options for both personal and commercial electric vehicles. Additionally, there is a hopeful outlook for policy initiatives aimed at advancing EV adoption. This includes the extension of subsidies to enhance the affordability of electric vehicles and the implementation of incentives for conversion kits, encouraging the transformation of Internal Combustion Engine (ICE) vehicles into Electric Vehicles (EVs).”

 

Narain Karthikeyan, Founder & Managing Director, DriveX

“As we anticipate the Interim Budget 2024-25, we recognize the pivotal role it plays in shaping the economic landscape, particularly for the two-wheeler auto industry. The potential benefits that could arise from individual taxation reforms hold promise for our industry. With the government’s focus on stimulating consumer spending, the possibility of tax incentives or reductions could significantly boost the demand for pre-owned two-wheelers.

Additionally, the recent announcement by the Reserve Bank of India (RBI) maintaining the current repo rate is noteworthy. The stability in the rates provides a favourable environment for financing options, making two-wheeler ownership more accessible to a broader consumer base. This aligns with our mission to enhance mobility solutions for individuals across diverse economic backgrounds.

Mrinaal Mittal, Director, Unity Group

The sentiment prevalent in the real estate sector in 2024 is propitious after having witnessed an extraordinary growth spurt in 2023 notwithstanding various quandaries like lofty rates of interest. The demand drive and growth rate in residential real estate will be vastly shaped by the verdict of the next general elections. Every year, prior to the budget announcement, the real estate industry expresses its expectations from the Finance Ministry. The agenda remains rather consistent with few basic demands which also include fast tracking the resolution of issues in the real estate sector. Additionally one of the key asks from this budget would be an increase in the tax rebate slab on home loan interest rates to at least twice of what it is presently. Affordable housing will need encouragement in the form of tax holidays to persuade developers to launch such housing projects as schemes introduced during and after the pandemic has expired. As a contributor of about 7.5% to the country’s GDP, our industry is justified in expecting a serious consideration to regulations that will augment the robustness of last year.

Hari Kishan Movva, Senior Vice President, SILA

To stimulate the housing market, it’s crucial to increase the Income Tax Act Section 24’s home loan interest rate rebate from INR 2 lakh to at least INR 5 lakh. This adjustment could particularly benefit budget homes, facing a 20% decline in sales in 2023 due to the pandemic.

Reviving expired incentives, like tax breaks, is imperative for affordable housing. Modify eligibility criteria, considering the Ministry’s definition based on income, property size, and price. Adjust the qualifying cost for city properties; for instance, raise the budget to INR 85 lakh for Mumbai. This ensures broader accessibility and utilization of government subsidies and reduced GST rates.

Address the land shortage by releasing government-owned lands for affordable housing. Lands owned by entities like Indian Railways could significantly lower real estate prices when allocated specifically for this purpose.

Kaushal Mehta, Managing Director, Walplast

As we step into 2024, the construction materials industry anticipates a year of robust growth with strong tailwinds. The sector, pivotal for infrastructure development, envisions a positive trajectory, bolstered by technological advancements, sustainable practices and a renewed focus on efficiency. As we eagerly await Budget 2024, our expectations center around supportive policies that foster innovation, development, sustainability and affordability. A far-sighted budget allocation in an election year can serve as a catalyst for the industry’s growth engine, driving job creation and economic prosperity. Embracing the challenges ahead, the construction materials sector is poised for a transformative year, contributing significantly to the nation’s progress and reinforcing its role as a cornerstone of sustainable development.

Henna Misri, Chief Executive Officer, Space Creattors Heights

From formidable office settings in austere colors to lively, colorful and quirky offices, the co-working industry changed the way we work. From catering to mostly startups and freelancers to having mammoth corporate clients, flexi offices witnessed a metamorphosis that was further propelled by the pandemic. Over the next three to five years, it is foreseen that the co-working sector, which presently makes up roughly 18% of all commercial real estate utilization in India, would achieve a proliferation rate of 25 to 30%. For an industry growing so rapidly, we are seeking some support and encouragement from the upcoming budget. These essentially include positive tax reforms to support the expansion of our footprint along with lowering of GST rates and clearer standards on electricity tariffs. The creation of a single-window clearance system and a major impetus to infrastructure will also accelerate the entry and operation of coworking spaces in non-metropolitan areas which is the next step in the progression of the co-working and flexi office spaces.

Aryann Suri, Director Sales & Operations, Space Creattors Heights

According to a recent study, co-working spaces accounted for 27% of the net assimilation of 8.2 million square feet among the top seven to eight cities in Q1 2023. The flexi office industry is growing by leaps and bounds and is here to stay. Owing to its flexible work tenets and equitable pricing alternatives, co-working spaces continue to be in high demand and the flexible co-working business is more vital now than ever before. Several corporates and large businesses have also switched to co-working spaces as they have accepted the hybrid work style to meet their organizational needs. Despite a metamorphic rise our industry is a nascent one in all fairness and hence seeks some latitude from the Budget 2024. A lower goods and services tax (GST) for one will appreciably help the coworking industry augment their market presence by attracting smaller players and subsequently grow the revenue collection to the government. Moreover a reduction in the TDS which is at 10% currently will help the key stakeholders to offer assets at better prices to their clients.

Vipin Suree, Founder & Managing Director, Space Creattors Heights

For an industry that contributes 7 – 8 % to the country’s GDP and begets employment only second to agriculture, real estate is a relatively less appreciated and recognized industry. Our sector crested and corroborated a staggering growth rate in 2023 wherein the key property markets indexed an annual growth of 5%, in spite of contentions like record high interest rates and surge in listing prices. We are bullish and expect to see the upswing in demand continue throughout 2024 but there is an expectation of some tangible support from the Finance Ministry. The government must provide momentum and succour to further stimulate the buying thereby encouraging the buyers. Further through the new budget, government has to undertake cogent steps to not just boost demand but also address regulatory obstacles. A single window clearance, tax reliefs and GST rationalization are some of the unequivocal measures that need to be initiated apart from granting real estate the industry status it has long deserved.

Amit Singh- Founder and CEO of TelioLabs- a Leading Deep- Tech Startup providing IT services in Telecom, IoT, AI/ML and cloud infrastructure.

“We need to give special attention to the growth of start-ups in the telecom sector. And if we expect innovation in the Telecom sector, this can be achieved through targeted grants for start-ups. Such financial support empowers emerging ventures to do ground-breaking research, giving birth to cutting-edge technologies. These initiatives not only drive technological advancements but also strengthen the country’s telecommunications infrastructure. By encouraging startups to explore novel solutions, governments can catalyze progress, enhance connectivity, and ensure the nation stays at the forefront of telecommunications innovation. Ultimately, these grants serve as catalysts, encouraging start- ups towards transformative contributions in telecommunications.”

 

Amrish Pipada, Founder & CEO, Mega Networks Pvt. Ltd.

“As part of India’s Digital India initiative, we at Mega Networks Pvt Ltd are committed to contributing to the vision of ‘Vikshit Bharat’ by 2047. As a leading force in innovation, our country has made significant strides in digital public goods and has emerged as a top global player in phone manufacturing. Capitalizing on the skilled workforce and the dynamic IT environment in the region, we believe that the convergence of ‘Made in India’ with Digital India 2.0 will propel the IT hardware industry to an unprecedented growth trajectory, positioning it as a sunrise sector. The government’s support in extending Production Linked Incentive (PLI2.0) benefits for R&D investments would serve as a critical catalyst for companies like ours, poised to transition from domestic leadership to global eminence through pioneering innovations in manufacturing. In particular, we envision breakthroughs in crucial domains such as AI servers and storage, which form the backbone of our data-driven ecosystem.”