Budget 2024 Expectations Highlights: Green Growth Can Provide Boost To GDP, Say Experts
Budget 2024 Expectations Highlights: Please follow this space for all the latest updates related to the expectations from Union Budget 2024
Mahesh Ramamoorthy, Chief Information Officer, YES Bank, said that the upcoming Budget should focus on bringing in investments for digital infrastructure and back technologies such as AI, blockchain, and IoT to promote the digital transformation in the country. "Investments in advanced threat intelligence and robust encryption will protect our digital assets and build user trust. Additionally, improving data privacy and governance will ensure compliance with global standards and safeguard user information," the bank official noted.
Prashant Singh, co-founder and CEO, Blue Planet Environmental Solutions, highlighted the need for economic development to be coupled along with green growth and sustainable development. He noted that the waste management sector can contribute strongly to the GDP of the country and the government should focus on policies supporting the same in the upcoming Budget.
"The government's focus on 'green growth,' through substantial investments in biogas and bio-CNG plants, highlights a strategic approach to reducing carbon emissions and creating sustainable employment. Integrating waste-to-energy solutions, such as converting agricultural and urban waste into bio-CNG, not only mitigates the waste crisis but also supports the clean energy transition by producing greener fuels and reducing landfill use. This aligns with COP priorities, including transition financing , reinforcing India's commitment to climate action and a resilient, low-carbon future," Singh said.
Expressing the hopes for the MSME sector in the upcoming Budget, Divyesh Dalal, MD and Head - Global Transaction Services, SME & Institutional Liability Business, DBS Bank India, said, "The upcoming Union Budget presents an opportunity to boost the growth of India's MSME sector. Measures like Production-Linked Incentives, Export promotion, Digital India campaign, simplification of tax structure and Skill development will bolster the global competitiveness of MSMEs."
Dalal noted that the government is expected to focus on digital adoption, green policies, market access, financial inclusion, and concerted efforts to boost entrepreneurship.
Sharing his views on the expectations for gold loans and their status in the finance sector, Shaji Varghese, CEO, Muthoot FinCorp Limited, noted, "While the gold loan NBFCs look forward to receiving the priority sector status which is of paramount significance, we also expect the government to look at risk weight in gold loans. The risk weight may be treated at par with banks or similar to home loans as both have LTVs regulated by the Central Bank."
Varghese explained that gold loans help enhance financial inclusion and also facilitate in providing easy credit to further boost economic growth.
"As we look ahead to the Union Budget 2024-25, the emphasis on sustainable development is paramount, " said Annu Talreja, Founder & CEO at Accacia. Talreja suggested that to align with the NDC goals and reduce the carbon footprint of the construction sector, the government should introduce financial incentives for the production and use of green building materials such as green cement, concrete, steel, plywood, paints, and other eco-friendly options.
Anurag Gupta, Co-Founder of STEMROBO, anticipates that the upcoming 2024 budget will include further measures aimed at bolstering STEM education, extending digital infrastructure into rural areas, and elevating educational standards to align with global benchmarks. "Building on progress from the interim budget, which focused on boosting STEM education and digital literacy, the upcoming budget should aim to further reduce educational disparities with targeted programs for underrepresented groups," said Gupta.
Varun Sheth, co-founder of Ketto, expressed hopes that the upcoming budget will acknowledge the vital role crowdfunding platforms like Ketto play in filling financial gaps for individuals and social causes. "We look forward to the government to introduce favourable policies and incentives that encourage digital donations and support the growth of the crowdfunding sector. This includes tax benefits for donors, streamlined regulations for fundraising activities, and investment in digital infrastructure to enhance the reach and efficiency of crowdfunding platforms," Sheth added.
Raja Singh Bhurji, CEO and Incubation Director at The StepUp Ventures, highlighted the government's commitment to fostering youth entrepreneurship by sanctioning 43 crore loans amounting to Rs 22.5 lakh crore through initiatives like the PM Mudra Yojana. He emphasized the government's ongoing support for the Indian startup ecosystem, aiming to make it one of the largest globally.
"Looking ahead, we propose extending the tax holiday for startups to 5 years within their first decade of operation under 80 IAC Tax exemption," Bhurji added.
Vishal Mahajan, Founder & MD of Optimal Retail Pvt Ltd, observes that in India's rapidly expanding retail landscape, the organised retail sector is experiencing significant growth both online and offline. Mahajan suggests that government support for private labels could strengthen the organised retail sector, promoting competitive pricing and enhancing market position in this thriving industry.
Prashant Singh, Co-Founder and CEO of Blue Planet Environmental Solutions, stressed the significance of waste management in the circular economy as we near Union Budget 2024. This includes the transformation of waste into alternative resources and energy, highlighting its potential impact. "We remain optimistic that the upcoming Union Budget 2024 will spotlight these critical changes, driving both environmental sustainability and economic growth in India. With the help of a supportive policy environment, the waste management sector can significantly boost India's GDP, proving that economic growth and environmental sustainability can advance together," Singh added.
Nandan Gijare, Managing Director of I2CAN, noted that in the Interim Budget 2024-25, the Department of School Education & Literacy allocated Rs. 73,498 crores, which is a record high. However, a significant demand-supply gap remains, with an additional 40 million seats required in vocational training centres.
Gijare emphasised that more collaboration between the government and private institutes to offer a diverse range of courses could enhance skills, improve the affordability of education, create ample opportunities for students, and advance the Skill India initiative.
Priyatham Kumar, Founder of Homes247, highlighted that with the new government in place, the sector anticipates a surge in urban housing, commercial, and retail markets. "Cutting taxes on construction materials from 28 per cent to 18 per cent is crucial to reducing costs, enabling developers to undertake more projects and potentially lower property prices," Kumar said.
Arindam Sen, CEO and Director of Heartnet India, emphasises the need for the new government to strengthen healthcare infrastructure and strategically invest to address demand and supply challenges. He advocates increasing public health spending to exceed 2.5 per cent of GDP. As India aims to become a global healthcare hub, policies should position it as a premier destination for healthcare services and solutions.
Pushpank Kaushik, CEO of Jassper Shipping, emphasises India's significant potential in the shipping and logistics sector. The interim budget's focus on sustainability, initiatives such as Blue Economy 2.0, the commitment to achieve 'Net Zero' emissions by 2070, and the development of port connectivity corridors underscore the sector's critical needs.
He added that improving trade efficiency through increased production of containers and vessels is essential for stimulating economic growth and reducing costs. Government support in production can provide substantial benefits, especially amid global challenges like the Red Sea Crisis and China's container shortages, which drive up freight rates.
George John, Business Head at KLF Nirmal Industries, highlights substantial investment prospects in India's food sector, driven by strong growth in food retail and favourable economic policies. Initiatives such as PMKSY, PMFME, and PLISFPI are actively boosting momentum in food processing. "Initiatives like PMKSY, PMFME, and PLISFPI are driving momentum in food processing. However, the PLI Scheme's initial investment of INR 7,099 Cr should be augmented, considering India's prominent position in global food processing, with projected output reaching $535 Bn by 2025-26 under Atmanirbhar Bharat," he added.
Sunil S. Deshmukh, Chair of the Global Board of Directors at the Institute of Management Accountants, looks forward to budget policies that enhance resilience and foster sustainable growth in India's financial sector. "To assure long-term tax stability and sustained growth, the government should prioritise specific initiatives and lay a clear path for future reforms. We expect simplification of income classification from stock market transactions and equity in deductions within the new tax regime. Advancing the long-awaited Direct Tax Code could usher in significant reforms and greatly simplify the taxation system," Deshmukh said.
Background
Budget 2024 Expectations Highlights: Hello and welcome to ABP Live's budget 2024 expectations LIVE blog. Please follow this space for all the latest updates on the budget expectations across sectors.
Union Budget 2024-25 will be presented in the parliament on July 23 by the Union Finance Minister Nirmala Sitharaman. The upcoming budget marks the first comprehensive fiscal plan of the Modi 3.0 government, eagerly awaited by both the general public and corporate India. As per the official announcement, the Budget Session of Parliament is scheduled to run from July 22 to August 12.
Continuing tradition, Finance Minister Sitharaman will present the Union Budget speech at 11 am on July 23 in the Lok Sabha. The speech will be broadcast live on various government platforms, including Doordarshan, Parliament’s channels, and the Government of India's YouTube channels. Sansad TV will also provide coverage of the event. For online viewing and access to critical documents, viewers can visit the official portal www.indiabudget.gov.in, where live streaming and essential documents will be available.
Industry leaders have voiced their expectations for the forthcoming budget. Sushil Mohta, President of CREDAI West Bengal and Chairman of Merlin Group, highlighted that the real estate sector is the second largest contributor to employment generation in India. He urged the government to revise the definition of affordable housing to include buyers from this segment for additional relief. Addressing this issue is crucial, particularly in light of the approximately 50 per cent increase in real estate prices attributed to inflation.
To encourage home purchases, the Finance Ministry should consider either allowing unlimited interest deductions for the first self-occupied property or raising the deduction limit to Rs 5,00,000. This move will stimulate real estate investments, boost demand, and generate positive multiplier effects across the market. Increasing income tax deductions on home loan repayments would enable individuals to access larger home loans, further supporting the housing sector, he said.
He added that the government should also consider implementing a Credit Guarantee scheme for housing loans up to Rs 40 lakh (covering 80 per cent to 90 per cent of the value of affordable housing as per the defined criteria) and home improvement loans up to Rs 20 lakh.
- - - - - - - - - Advertisement - - - - - - - - -