Budget 2024 Expectations Live Updates: Prime Minister Narendra Modi is scheduled to meet with distinguished economists on Thursday to gather their perspectives and recommendations for the upcoming fiscal year. This meeting, which will also include Niti Aayog Vice Chairman Suman Bery and other key members, aims to influence the first major economic policy of Modi’s third term. In preparation, FM Nirmala Sitharaman has engaged in extensive discussions with various stakeholders, including economists and leaders from the Indian industry.
Budget 2024 Expectations Live: The startup ecosystem in India has entered the next stage, says Brijesh Damodaran Co-Founder & Partner, Auxano Capital
Brijesh Damodaran Co-Founder & Partner, Auxano Capital, said, “The startup ecosystem in India has entered the next stage. Need more domestic capital to be allocated in this space. Additional tax incentives ( say, the Ist 20% of profit on sale/transfer of holdings will be exempt from tax ) to the investors and promoters will go a long way in this direction. The sector needs domestic capital.'”
Budget 2024 Expectations Live: Incentivise and increase the participation of Indian institutional investors to become significant LPs in local VC funds, says Shyam Menon, Co-founder & Partner of Bharat Innovation Fund
Shyam Menon, Co-founder & Partner of Bharat Innovation Fund, said, “As an early-stage VC fund that originated in India, we feel it’s important to incentivise and increase the participation of Indian institutional investors to become significant LPs in local VC funds. This will very much help reduce the time taken by most local funds to raise funds of meaningful size which can then be deployed to catalyse the fast-growing startup ecosystem in the country. As a fund focused on deep tech, we would also like to see increasing investment in fundamental and applied science research in bleeding-edge areas at the leading academic institutions and research labs across the country. This will help create the fertile ground for disruptive tech IP to be created by researchers and academics which can then be commercialised via deep tech startups that can go global from India.”
Budget 2024 Expectations Live: Rationalization of GST percentages across different sectors to a newly formed committee of Ministers, says Aruna Sharma, Policy Advisor
Aruna Sharma, Policy Advisor, Practitioner Development Economist & Former Secretary, of GoI, said, “The 53rd GST Council addressed key issues in the online gaming sector, including the 28% GST, its retroactive implications, and the scope of GST application. Firstly, it referred the rationalization of GST percentages across different sectors to a newly formed committee of Ministers. Secondly, the amended provision of 11A, aimed at eliminating retrospective tax, was delegated to both state and central authorities.
Now, the next move is for the union government and honourable finance minister to decide on the budgetary allocations for the online gaming industry. Earmarking dedicated funds in the budget for infrastructural development will be a shot in the arm to facilitate India’s transition from the largest consumer to the largest content creator. Moreover, to reignite investments in the real-money gaming sector, the government must ensure clarity and consistency in its progressive taxation regime.
Additionally, the esports community anticipates government support for its growth and encourages players to become professionals and compete internationally. Likewise, recognizing online gaming as an educational tool will contribute to enhancing the skills of the youth in strategy, rule-learning, team planning, and motor coordination.
As India moves towards achieving the goal of becoming a $5 trillion economy, the government should consider promulgating a progressive, low-tax regime that will spur innovations, research, and startups within the industry, thus positioning India as a global hub for online gaming and developers.”
Budget 2024 Expectations Live: ‘Demand and supply for affordable homes have shown fluctuating trends’, says realty expert
Dhruv Agarwala, Group CEO, Housing.com, PropTiger.com, said, “Demand and supply for affordable homes have shown fluctuating trends over the last three years across major tier I and tier II cities. In response, the upcoming budget should focus on revitalising both demand and supply for homes in the ₹15-75 lakh per unit price bracket. Introducing interest subsidy programs could incentivise potential homebuyers effectively.
To boost supply, the government could strategically deploy its extensive land banks in partnership with private developers, offering land and capital at concessional rates. Implementing tax incentives for developers engaging in these affordable projects could further stimulate activity in this sector. It’s noteworthy that substantial demand persists within the ₹15-75 lakh price category, necessitating focused governmental action in the upcoming budget. This approach would not only catalyze growth in the real estate sector but also stimulate approximately 200 ancillary industries, substantially boosting job creation across these sectors.
State governments should be motivated to reduce stamp duty on affordable housing to make these homes more accessible. Moreover, longstanding sector demands, such as granting industry or infrastructure status and raising tax exemption limits on home loan repayments, should be considered to sustain long-term growth in the housing sector”.
Budget 2024 Expectations Live: Travel sector expects a 20% rise in international travel and a 15% boost in domestic trips
Mohak Nahta, Founder and CEO, Atlys, said, “The upcoming Union Budget 2024-2025 offers an opportunity for the Finance Minister to build on this momentum. Strategic investments can unlock economic opportunities, boost employment, and enhance India’s tourism landscape. We foresee a 20% rise in international travel and a 15% boost in domestic trips.”
Budget 2024 Expectations Live: Logistics expert says primary aim is to reduce logistics cost from 14% of GDP to 8% -10% of the GDP.
Siddhartha Bhagat, Head, Logistics Division, Seros, said, “The National Logistics Policy in 2022 under PM Gati Shakti National Master Plan had already laid out the key objectives. Logistics industry is the pillar for any economy and again there are high expectations from Budget 2024.”
“The primary aim is to reduce Logistics cost from 14% of GDP to 8% -10% of the GDP. Further, there should be a focus on infrastructure development for faster TAT and seamless movement of goods.”
“India with its vast coastline and internal waterways have a huge potential in the push for multimodal Logistics thereby developing and integrating the local and global supply chain.”
“Further it would be beneficial to reduce the GST rates on HCV and MCV for EV and Alternate fuels to encourage the industry migrate to cleaner fuels.”
Budget 2024 Expectations Live: FedEx looks forward to transformative measures to accelerate growth in the logistics sector
Kami Viswanathan, President, FedEx, MEISA, said, “In the forthcoming budget, FedEx looks forward to transformative measures to accelerate growth in the logistics sector and propel India towards its USD 5 trillion economy goal. We anticipate seeing significant investments throughout the industry in multi-modal connectivity, including advanced air cargo terminals and infrastructure enhancements to create seamless trade corridors, aligning with the Prime Minister’s Gati Shakti Plan and the National Logistics Policy.”
“We also anticipate continued focus on trade facilitation, streamlining and digitizing clearance processes, minimizing delays and enhancing cargo movement efficiency.”
“FedEx remains committed to collaborating with the government to advance these strategic initiatives and support India’s trade growth.”
Budget 2024 Expectations Live: Healthcare sector calls for focus on expanding the Ayush-based healthcare and wellness sector
Apurve Mehra, CEO of Biogetica, said, “We commend the government’s commitment to advancing quality healthcare in India and are confident that the continued reforms and policies will bolster innovation and enhance regulatory efficiency. At Biogetica, we look forward to the upcoming Union Budget and hope it will bring positive changes to the healthcare and pharma sectors. We hope that India will lead the people of the globe into an evidence-based integrative medicine system that serves patients in ways that no single system or modality can.”
“The government should focus on expanding the Ayush-based healthcare and wellness sector, which is projected to reach $70 billion by next year. As we stand at a critical juncture, the right support and guidance from the government are essential to leading a transformative impact on holistic health practices in India. We urge the Government and Finance Minister to introduce a special package to bolster the Ayush sector in the upcoming budget. This will significantly improve Ayush infrastructure, research, and accessibility. Additionally, we hope Ayush products will receive subsidies and that incentives will be provided to support Ayush companies & startups.”