Budget 2024 Expectations Live Updates: India Inc share anticipated changes

Suggesting the importance to prirotise risk management and protection for the promotion of sustainable development goals in the upcoming interim budget, Rakesh Jain, CEO, Reliance General Insurance, said, “We recommend the government consider the following measures: raise the health insurance premium tax exemption limit to INR 75,000, decrease GST on electric vehicle (EV) insurance to 5%, offer subsidies or tax credits for comprehensive insurance on EVs, introduce a tax deduction for home insurance premiums under Section 80C, and provide tax incentives for cyber insurance, especially for small and medium enterprises, to bolster resilience against cyber threats and data breaches.”

Identifying the persistent stigma associated with mental health issues and the need to enhance accessibility and affordability of treatments, Abha Dandekar, CEO & Founder, Elephant in the Room calls for enhanced budget allocations on mental health initiatives.

“In today’s world, it’s crucial to recognize the importance of mental health, particularly in the workplace, and the impact it has on the well-being and productivity of employees. With the upcoming Union Budget ’24, our expectations stem from a hope for increased allocations towards mental health initiatives, particularly in accessibility, affordability, and stigma reduction. Provisions that prioritize the implementation of supportive policies for mental health in the workplace and initiatives that encourage an environment of inclusivity and well-being for employees are the need of the hour. This would not only benefit the workforce but also contribute to the overall economic prosperity of the nation. The budget also presents an opportunity to further empower women entrepreneurs in the mental health sector, through dedicated programs and incentives that promote their active participation and leadership. We are optimistic that the budget will reflect the government’s commitment to the subject and create a favorable environment for the growth and development of mental health support systems in India,” said Abha Dandekar.

Government’s support for the online gaming industry has been a crucial factor for fostering innovation in game design and development, believes Rahul Tewari, Chief Finacial Officer, Games24x7.

“While we received a lot of clarity pertaining to the online gaming industry in 2023, the sector now seeks clarity on the long-term regulatory framework. This would help in bringing FDI to propel the growth in adoption of gaming content within India and for developing online games for international markets,” said Rahul Tewari, Chief Finacial Officer, Games24x7.

Pointing out towards immense potential in the country’s direct-selling industry to boost entrerpreneurial and economic advancement, Gautam Bali, MD of Vestige Marketing, said, “ We look forward to regulatory frameworks and policies that can sustainably strengthen ethical business practices. Additionally, we hope for potential tax reforms that can create a more favourable environment for the industry. The government’s emphasis on infrastructure development is commendable which is likely to have a significant impact on trade and commerce in the country.”

 He also expressed hope of the introduction of “social security scheme for gig workers, acknowledging their valuable contributions to the economy.” 

“This positive outlook is in sync with the broader optimism expressed by industry leaders regarding the sector’s impact on entrepreneurship and economic progress in India. The Government of India emphasised the potential of direct selling industry as a significant source of self-employment and encouraged companies to offer quality products at fair prices in the interest of consumers. Furthermore, the organised players of the industry are strengthened as they can pave the path for women and youth empowerment, thereby igniting their dreams and ambitions,” Gautam Bali added.

Sandeep Runwal, President of NAREDCO Maharashtra, highlights the real estate industry’s pivotal role in the economy as the second-largest employment generator and underscores its potential for transformative changes. Anticipating the 2024-25 budget announcements, the sector awaits measures that could profoundly impact its trajectory. Acknowledging the reforms and incentives implemented by both Central and State governments in the previous year to stimulate economic growth, Runwal emphasizes the sustained momentum in the real estate sector.

R K Misra, Co-Founder and President -Ecosystem Partnerships, Yulu emphasized the importance of establishing and implementing a National Battery Swapping Policy, which would offer clarity on incentives, taxation, certifications, and network expansion. The company considers this policy crucial for enhancing investors’ confidence. Additionally, Yulu urged for a GST reduction (to 5%) on Li-ion battery packs utilized by Battery as a Service (BaaS) operators, aligning it with the tax rate for battery-fitted Electric Vehicles (EVs). Furthermore, Yulu advocated for a reduction in GST on transactions related to EV charging and battery-swapping from 18% to 5%. This proposed adjustment aimed to benefit price-sensitive retail customers and foster the growth and adoption of institutional setups for charging and battery management.”

“The online skill gaming has been on an explosive trajectory these last few years. With the right regulatory support, this sector has the potential to not only create a thriving ecosystem for gamers and game developers but also to showcase the prowess of Made in India games on the global stage,” Namratha Swamy, COO, MPL, said.

“The industry eagerly anticipates long-term clarity and a progressive taxation regime from the upcoming financial budget. This clarity is crucial for driving the next phase of growth, as it will not only provide a conducive environment for businesses but also revive investor confidence in the sector. A progressive taxation regime will further incentivize investment, leading to the creation of more job opportunities for our talented youth,” Swamy added.

“Additionally, we are hopeful that the budget will pave the way for the establishment of dedicated courses in gaming. These courses will play a pivotal role in nurturing the next generation of game developers and professionals, ensuring a steady supply of skilled talent to fuel the industry’s growth,” he further added.

“I look forward to the upcoming financial budget with optimism, as we believe that the right policies and support from the government will propel the online skill gaming industry to greater heights, benefiting the economy in our march towards making India a $5 trillion economy,” according to Swamy.

“We are optimistic about the potential for impactful economic measures being introduced by the Government to enhance India’s travel and hospitality infrastructure. Initiatives like the introduction of new airports, new terminals at existing airports and expansion of flight routes, coupled with the growing popularity of domestic destinations, also represent substantial new opportunities that are unfolding in India,” Sumit Prakash, Country Director, India and South Asia, Collinson, said.

“Since the return of travel last year, we have already seen more Indian travellers placing a heightened value on travel experiences as well as travel related rewards and benefits. Policies and incentives that help to enhance travellers’ experiences can effectively give the sector an even greater boost,” Prakash added.

“Businesses are now presented with more opportunities to leverage the growth of the travel industry by designing strong, travel-experience focused customer engagement propositions that serve to engage and build stronger relationships with their most valued customers,” according to Prakash.

“Anticipating the Interim Budget 2024, our expectations center around fostering the growth of startups and establishing a robust policy framework for an enduring ecosystem. To promote research and development in the education sector, we call for a review of the 18% GST on education services, aiming to alleviate financial burdens. In this budget, emphasis must be placed on skill development, accompanied by a crucial need for the recognition of online degrees, which enhances the credibility and overall operations of EdTech firms,” Akshay Munjal, Founder & CEO, Hero Vired, said.  

“Additionally, we anticipate comprehensive support through priority-sector lending, facilitating all-encompassing expansion for both conventional and modern education. To forge a digitally proficient and futuristic educational system, the acceleration of technological adoption to boost the skilling industry is paramount. Smooth access to funds becomes equally critical in this pursuit. The budget’s potential to invigorate the EdTech sector lies in expediting innovation, improving accessibility, and fostering inclusivity through policies that create a harmonious environment for sustained progress,” Munjal, added.

“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, and the 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 pushing 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 honourable 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,” Rahul Garg , Founder & CEO, Moglix, said.

“The Indian startup sector, if nurtured well, has the potential to significantly accelerate commerce in the country, elevate people’s lives and fastrack the journey of India’s internet economy to $1 trillion by 2030. While the early initiatives have helped establish India as the third largest startup ecosystem, the next decade of growth would be set by the decisive calls taken now in strengthening the ecosystem.” Nitya Sharma, Founder and CEO, India’s foremost Checkout Network, Simpl, said. 

“This year’s Vote on Account followed by the full year’s Union Budget should view startups as the sunrise sector, provide easy financing for sellers akin to MSMEs and open up more avenues in the era of Unbundling of E-commerce which has started with ONDC. We would expect a greater collaboration between the government and industry in further simplifying the Ease of Doing Business in India and resolving bottlenecks swiftly,” Sharma, added.

“The travel, tourism and hospitality industry is one of the biggest contributors to India’s GDP. Knowing this, the GOI had in the past budgets put a greater emphasis on the industry’s growth via a multifaceted approach towards building air, road & train infrastructure, focused on last mile connectivity, upskilling of Human Resources working in the sector, providing financing opportunities to small and medium sized enterprises, etc,” Pranav Dangi, Founder & CEO, The Hosteller, said.

“It will be expected of the government to further push for significant improvement in these areas and keep the momentum going towards overall growth of the industry. tive to the industry’s continued, healthy, and sustainable growth. India’s vision of 2047 for a new India cannot be complete without additional and immediate measures for the hospitality industry such as inclusive growth for all (specially women), infrastructural and technological advancements, reducing GST rates to bring it down to comparable rates of 5-6% prevalent in South East Asian countries, providing a single window clearance approval system for granting licenses for rapid development of hotel industry and foster the industry in adding more inventory in the market to bridge the supply demand gap,” Dangi added.

“We know that fintechs and regulators are increasingly working together to make things more stable and standardized for legitimate companies, in turn, driving higher trust in the ecosystem. It’s also clear that collaboration and partnerships, and not competition, are the way to drive financial inclusion. As we adopt smarter and safer digital solutions, combined with responsible business models, getting credit will be easier and safer from fraud. Self-regulatory organizations (SROs) will address specific issues in the sector and help it reach its full potential. The online credit industry is pushing for stronger ties with digital banking units (DBUs) and expanding UPI for digital lending,” ” Kunal Varma, CEO and Co-founder of Freo, said

“Introducing credit on UPI will lead to innovative sachet credit offerings and make small-ticket lending more efficient and affordable. It has the potential to completely transform how affordable credit reaches the last mile and across customer segments. At the same time, this opportunity will also test industry players on their ability to evolve and adapt,” Varma added.

“Increasing the tax deduction limit will make home loans more attractive, reducing the net cost of borrowing for home buyers. This can lead to a rise in demand for affordable homes, which in turn can spur the construction and real estate sectors, creating a positive economic ripple effect. A higher rebate will put more disposable income in the hands of the people who are the primary target customers for budget housing. This not only provides a boost to the housing and real-estate sector but also ancillary sectors, while pausing a significant sentiment boost,” Kunal Varma, CEO and Co-founder of Freo, said.

“Home loan rates have increased due to factors such as central bank interest rate hikes. An average home loan customer is now paying higher interest than a few years ago, in addition to homes becoming more expensive, due to increase in commodity prices (steel, cement etc.). This would be a welcome move that would end up as additional savings in consumers’ pockets,” Varma added.

“We expect the Interim Budget 2024 to recognize the potential and challenges of FinTech and provide an ecosystem to support and enable it to operate. VoloFin supports the continuous growth of exporters, from SMEs to large corporations, across industries and geographies, and delivers instant liquidity with no collateral through our state-of-the-art technology platform. We hope that the government will facilitate the adoption of trade financing, simplify tax and compliance standards, and promote financial digitization and innovation,” Roshan Shah, Co-founder & CEO, VoloFin, said.

“This year’s budget will be crucial for the ONDC ecosystem of small startups, MSMEs, and large businesses across the country. As India pursues ambitious targets of inclusive digitisation and high growth, we expect further steps to ease doing business, especially for small enterprises looking to digitise,” ONDC spokesperson shared.

“We commend the Government’s progress in bringing regulatory certainty with respect to GST and TDS compliance for ONDC Network Participants. Such moves are critical for small businesses and startups that are on the Open Network. We look forward to such continued efforts and initiatives to bring greater regulatory certainty in other domains, too,” they added.

“Additionally, the ongoing modernisation and digitisation of logistics infrastructure through initiatives like PM GatiShakti and the National Logistics Policy is praiseworthy. Robust logistics will enable especially MSMEs and startups to fully leverage opportunities created by India’s Digital Public Infrastructure like ONDC Network,” further added.

“Last year’s budget paved a path to higher adoption of EVs in India resulting in a sharp shift of customer mental models to make more greener & smarter choices. With the rise of marketplaces and digitisation in India, it is becoming a convenience first nation that is also setting high benchmarks globally. This year as a public listed company, we at Zoomcar anticipate the Union Budget 2024 to pave the way for innovative policies that accelerate sustainable mobility solutions and drive economic resilience which will help customers with cost effective solutions and mobility apps to support the evolution of transportation in the automobile industry,” Greg Moran, CEO and Co-Founder Zoomcar, said.

“We are optimistic to see a potential positive change in the budget, especially in the affordable housing sector, in this election year. The government stands with an opportunity to revisit and update the limit, which is set as 45 lakhs currently, for affordable housing. With the hike in property prices over recent years, a thoughtful adjustment of this limit, perhaps to 60-65 lakhs, would create avenues for the expansion and availability of affordable homes. With this adjustment, there could be a significant contribution to making housing more accessible and catering to the needs of a broader segment of the population. While we may not anticipate major budgetary changes in other areas, there is a hopeful prospect for positive developments in the realm of affordable housing,” Nagaraju Routhu, CEO of Experion Developers, opined.

“The past year has been extremely exciting for the travel & tourism sector; especially with the government’s increasing focus on boosting domestic & inbound travel. India is on track to be the fastest-growing aviation market in the world in the next decade. The rising trend of domestic air travel from tier 2,3,4 cities is encouraging, and we hope to see the budget continue to allocate resources for the development of infrastructure, technology, and safety measures at existing and new airports in these cities under the UDAN scheme,” Aloke Bajpai, Co-founder & Group CEO, ixigo, said.

“ Spiritual tourism is poised to be a key focus this year, and we anticipate more measures aimed at enhancing infrastructure, and accessibility, including last-mile connectivity in spiritual and cultural hubs across India. The Indian Government has been actively developing religious destinations and pilgrimage centers to encourage spiritual tourism under the Pilgrimage Rejuvenation and Spiritual Heritage Augmentation Drive (PRASAD Scheme). This effort has led to a remarkable transformation in Varanasi’s tourism sector, primarily driven by the revitalized Kashi Vishwanath corridor and the Central government’s renewed commitment to promoting religious tourism. Since its opening in December 2021, Kashi Vishwanath Dham has attracted an unprecedented 100 million visitors. In contrast, the number of visitors had previously been a mere 8 million before the renovations,” he added.

“Similarly, it is anticipated that with the recent inauguration of the Ram Mandir in Ayodhya and the recent launch of the new Ayodhya airport, Ayodhya may attract similar footfalls of visitors. Such steps will undoubtedly improve connectivity in regions where trains or buses may be the primary mode of transportation. Furthermore, considering that aviation turbine fuel (ATF) constitutes a significant portion of operational costs for airlines, any waivers or support for the airline sector would greatly benefit the industry. Bringing the Aviation Turbine Fuel (ATF) cost down to pre-pandemic levels presents significant opportunities for India’s aviation sector, serving as a crucial factor in improving air travel accessibility,” Bajpai explained.

“With the 2024 Union Budget looming on the horizon, Greaves Cotton anticipates a nuanced approach by the Government to balance fiscal responsibility with investments in the economy to stimulate economic growth. In addition to social welfare initiatives to improve the ease of living of our populace, the company expects measures to boost consumption and an enabling environment to drive both private and corporate investments in the economy. Being an engineering major, Greaves is anticipating continued thrust on making India a manufacturing powerhouse, deeper investments in Infrastructure development and continued policy support in new-age industries like fuel agnostic and clean mobility, Electronics, and Sensors, amongst others, to enable India’s leapfrog to the future,” Nagesh Basavanhalli, Non-Executive Vice Chairman, Greaves Cotton Ltd, said.