Budget 2024 Expectations Highlights: Health Insurance, Other Health Services Should Be Exempt From GST, Says Expert

Budget 2024 Expectations Highlights: Please follow this space for all the latest updates related to the expectations from Union Budget 2024

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 Finance Minister Nirmala Sitharaman will present the budget for the fiscal year 2024-25 in parliament on July 23. This marks the first complete budget of the Modi 3.0 government, eagerly anticipated by both the general public and corporate India. According to the official announcement, the Budget Session of Parliament will commence on July 22 and conclude on August 12.Following tradition, Sitharaman will deliver 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 cover the event. To watch the budget speech online and access critical documents, viewers can visit the official portal www.indiabudget.gov.in, where live streaming and essential documents will be available.Industry leaders have expressed their expectations for the forthcoming budget. On Thursday, the Federation of Indian Chambers of Commerce and Industry (FICCI) forecasted a median annual GDP growth rate of 7 per cent for the fiscal year 2024-25 in the Union Budget 2024. They underscored the need for the budget to focus on tax reforms, employment creation, innovation, and sustainable development initiatives.Economists surveyed in the report predicted that upcoming taxation reforms would target economic growth stimulation. They noted, "Potential revisions in tax rates to boost disposable income and stimulate consumption, particularly for lower income brackets, are anticipated.”Moreover, there was a suggestion that increasing thresholds under Section 80C and comparable provisions could encourage long-term savings and investments. The report also highlighted expectations for simplifying the capital gains tax structure and establishing a framework to streamline GST rates.The economists indicated in the report that the forthcoming budget is expected to introduce holistic measures to boost employment and enhance workforce skills.

19/07/2024 18:29:21

Startups Need Sustained Govt Support, Says Meesho CFO

Meesho remains optimistic about the government's commitment to fortifying India's growing startup ecosystem, said Dhiresh Bansal, Chief Financial Officer at Meesho. He acknowledged the pivotal role startups play in steering India towards a 5 trillion-dollar economy, we recognise the need for sustained government support. India's technological contribution to GDP is growing but remains in its early stages compared to other nations. The government's involvement in encouraging venture capital and angel investment is commendable, and we believe that further emphasis on these initiatives will gradually elevate the number of startups in India."

19/07/2024 18:25:21

EPC Sector Needs Swift Govt Actions On Project Approvals, Policies For Sustainable Energy Transmission

KPIL, being the second-largest listed firm in the EPC sector, has high hopes from this Budget. Amit Uplenchwar, Director, Kalpataru Projects International Limited, said, "The government has set ambitious targets for deploying advanced energy solutions, including clean hydrogen, energy storage, and carbon capture, with a planned investment of $35 billion annually until 2030. The industry requires swift government actions on project approvals and supportive policies for sustainable energy transmission and dissemination, such as production-linked incentives, tax credits, and subsidies. GAIL's proposal for a 1500 KTPA ethane cracker unit in Madhya Pradesh could be a game-changer, fostering numerous public-private partnerships and generating thousands of jobs. Significant government intervention is needed in the oil & gas, energy, and transmission & distribution (T&D) sectors in the form of financial aid and support for technology development, and keep up the infrastructure momentum which are crucial for domestic business growth."

19/07/2024 16:49:30

There Is A Pressing Need For Policies That Support Entrepreneurship: PaySprint's CEO

S Anand, the distinguished Chief Executive Officer and Founder of PaySprint, emphasises the fintech sector's keen interest in fiscal incentives and regulatory frameworks that drive innovation and expedite digital transformation. "As technology continues to redefine financial services, there is a pressing need for policies that support entrepreneurship, attract investments, and promote the adoption of advanced technologies such as blockchain, AI, and digital identity verification," Anand added,

19/07/2024 16:21:16

Budget Likely Bolster Retail And Consumer Sectors: Swiss Military's MD

Anuj Sawhney, Managing Director of Swiss Military, is optimistic that the forthcoming Union Budget will bolster the retail and consumer sectors, ensuring sustained growth with necessary adaptability. "Our expectations from the budget include the formulation of the National Retail Policy and the establishment of financing opportunities specifically for retailers and distributors. Organisations can also look forward to the significant benefits from anticipated digital transformation incentives, driving higher efficiency and enabling more customer-centric offerings," he said.

19/07/2024 15:45:33

Healthcare Sector Wishlist: Uniform 5 Per Cent GST Rate For Healthcare Is Needed

"As India grows into a global healthcare hub, policies should position it as a leading destination for services and solutions. A uniform 5 per cent GST rate for healthcare, full input tax credit eligibility, addressing unused MAT credits, and revising health cess policies for MedTech are crucial for affordability. Priority status for financing, tax incentives for private investment in healthcare infrastructure, manufacturing, digital health, and education is essential. Furthermore, enhancing healthcare in Tier-2 and -3 cities and rural areas through advanced infrastructure, digital health services, and robust public-private partnerships is key for nationwide access and quality improvement," said Arindam Sen, CEO & Director of Heartnet India.

19/07/2024 15:41:33

FMCG Sector's Budget Wishlist

India's food sector presents significant investment opportunities, bolstered by robust growth in food retail and supportive economic policies. Initiatives like PMKSY, PMFME, and PLISFPI are driving momentum in food processing. However, the PLI Scheme's initial investment of Rs 7,099 crore should be augmented, considering India's prominent position in global food processing, with projected output reaching $535 billion by 2025-26 under Atmanirbhar Bharat, said George John, Business Head at KLF Nirmal Industries.

 

19/07/2024 15:38:42

Govt Need To Prioritise Research And Innovation: Education Expert

Rahul Subramaniam, Co-Founder and MD, Athena Education, said, “There is a pressing need to prioritise research and innovation within India's education landscape. Through targeted investments and schemes, the government must expand access to high-quality education for marginalised communities. Additionally, significant infrastructure development across educational institutions is vital to creating an inclusive learning environment. With a strategic emphasis on advanced technologies and STEM education, this budget can bridge the urban-rural divide and empower our youth with the skills needed for global competitiveness. A robust monitoring and evaluation framework will ensure these investments deliver sustainable outcomes, shaping a brighter future for generations to come."

 

19/07/2024 15:36:40

'With Strong Economic Foundation Modi Government Is Expected To Tackle Inflation, Unemployment'

Rohit Garg, Co-Founder and CEO of Olyv, said there is a sense of anticipation. "With strong economic foundation and fiscal discipline, the Modi 3.0 government is expected to tackle key challenges like food inflation, unemployment, and agricultural stress while creating more jobs," he noted.

Garg said, "One of our key priorities is to make savings, credit, and investments more accessible to strengthen and support the financial sector. This entails the expansion of the financial sector's size, capacity and skills to establish a more robust and inclusive financial ecosystem. Fintech advancements with initiatives such as the PM Mudra Yojana, which has sanctioned 43 crore loans amounting to 22.5 lakh crore, as well as the Fund of Funds, Startup India, and the Startup Credit Guarantee Scheme give us a sense of optimism. These initiatives emphasize financial inclusion and entrepreneurship. The GST reforms have also contributed to a more efficient and inclusive financial environment. These policies encourage entrepreneurship and strengthen our economic resilience."

19/07/2024 15:33:53

Health Insurance, Other Health Services Should Be Exempt From GST, Says Expert

As there is no GST on diagnostics, it is imperative that health insurance and other health services, such as hospital bed charges, should also be exempt from GST, said Pankaj Nawani, CEO, of CarePal Secure. Health insurance is a public good, not merely a consumable item. Reducing taxes on health insurance will encourage broader coverage, leading to higher protection and increased productivity in the economy. Furthermore, under the new tax regime, the government should treat health insurance similarly to the Public Provident Fund (PPF). Allowing individuals to save on health insurance premiums in the same manner as PPF will further incentivize people to invest in their health and well-being.

19/07/2024 15:30:37

Pharma Sector Calls For Enhanced Regulatory Frameworks

Ajay Kakar, CEO of Salve Pharmaceuticals, emphasised that the Union Budget for 2024-2025 should prioritise financial incentives across critical sectors, such as enhancing regulatory frameworks and fostering innovation. This approach aims to stimulate innovation and industrial expansion in industries like personal care, e-commerce, pharmaceuticals, and cosmetics. "We need to invest more in R&D to encourage businesses to adopt new technologies and develop innovative products," he added.

19/07/2024 14:35:29

Healthcare Sector Expects Boost In Health Insurance Category

Gaurav Dubey, Founder and CEO of LivLong 365, said that one of the main expectations from the budget is the passage of the IRDAI Act to enable the issuance of specialised licenses, such as OPD solutions, within the Health Insurance category. "Such a licence would encourage innovation and provide a progression towards preventive healthcare, thereby reducing overall healthcare expenses for a country like India," Dubey said.

19/07/2024 13:58:29

Further Expansion Of Incentives For MSMEs In The Electronics Sector: Expert

Sagar Gupta, Director at Ekkaa Electronics, expressed optimism about this year's budget's potential to stimulate growth in the ESDM sector and elevate India's global standing. We hope the government will continue to expand and enhance the PLI scheme, which has been instrumental in boosting local manufacturing. We urge further expansion of incentives for MSMEs and startups in the electronics sector would further encourage innovation and growth," Gupta said.

19/07/2024 13:17:32

Luxury Real Estate Leader Calls For Tax Relief In The Budget

Ritu Kant Ojha, CEO of Proact Luxury Real Estate, Dubai, said that the industry is looking forward to reforms that enable Indian investors to engage fully in global markets. The current 20 per cent Tax Collected at Source on foreign real estate investments, mandated by the Liberalised Remittance Scheme, limits their ability to explore international opportunities to the fullest

"Lowering this rate to 5 per cent would not only increase available capital but also enable broader portfolio diversification abroad, boosting India’s influence in international markets," opined 

19/07/2024 12:38:00

Experts Optimistic On Govt's Commitment On Advancing Sustainable Energy Initiatives

Ankit Gupta, Director at Ledure Lightings, expressed optimism about the government's commitment to advancing sustainable energy initiatives in the anticipated People's Budget, which is expected to include diverse schemes benefiting various sectors. "The government should prioritise ensuring the availability of essential equipment for the electrical and power sector, as this will enable the sector to operate efficiently and meet the growing demands," Gupta said.

19/07/2024 11:47:02

Govt Must Prioritise Reforms Aimed At Continuous Capital Investment In Transportation: Asia Shipping India's CEO

Amit Tandon, CEO and Managing Director of Asia Shipping India said that the government must prioritise reforms and initiatives aimed at continuous capital investment in transportation, port infrastructure, and digital infrastructure development. These efforts are essential to improving logistics efficiency and bolstering competitiveness in alignment with the vision and objectives outlined in the National Logistics Policy.

19/07/2024 11:16:46

Kinjal Group's Founder look For Single Window Approval System For Construction

Heeralal Doshi, Founder and Chairman of Kinjal Group, anticipates substantial policy reforms under the Modi 3.0 government for India's real estate sector. With increasing demand for residential, commercial, and office spaces, there is optimism for tax incentives and upgraded infrastructure to enhance urban living and stimulate growth in emerging areas. 

"The introduction of a single window approval system for real estate construction would also streamline processes, reduce delays, and boost efficiency across the sector," he added.

19/07/2024 10:40:40

Real Estate Leaders Expect Extension Of Credit Linked Subsidy Scheme

Kaushal Agarwal, Chairman of The Guardians Real Estate Advisory, looks forward to the upcoming budget announcement with hopes for transformative reforms to catalyse sustainable growth and prosperity in the real estate sector. "Key measures such as extending the Credit Linked Subsidy Scheme (CLSS), providing tax holidays, and revising base prices are crucial for enhancing affordability and stimulating investment in housing. Likewise, granting 'industry status' to housing and implementing a streamlined single-window approval system will further boost efficiency and attract more investments," he said.

19/07/2024 09:58:15

Travel Industry Calls For Better Infrastructure At Bus Terminals

Kapil Raizada, Co-founder of IntrCity SmartBus, emphasises the community's commitment to revolutionising inter-city bus travel in India's tier-2 and tier-3 cities as we near the 2024 budget announcement. "In line with the government's vision to boost road travel, we would request that the airport model be extended to create ISBT (Inter-State Bus Terminals) for both private and public inter-state buses across all states of India, which would give a tremendous boost to the adoption of shared transport across India. One of the biggest hurdles to bus travel continues to be the lack of basic amenities for safe boarding/de-boarding for passengers," Raizada added.

19/07/2024 09:21:09

FMCG Requests Tax Policies To Support Healthy Products

Jyoti Bharadwaj, Founder of TeaFit, highlights significant challenges for companies dedicated to creating nutritious beverages within the current GST framework. She points out the tax rate discrepancies, where fruit-based drinks are taxed at a modest 12 per cent GST despite concerns about misuse by sugary or concentrated variants. In contrast, carbonated drinks face a high tax burden of 40 per cent (28 per cent GST and 12 per cent Cess) regardless of their health implications. Bharadwaj argues that these tax policies strain profit margins, discouraging innovation in healthy beverage options and inadvertently promoting the proliferation of fruit-based or sugar-laden alternatives.

"A reform that prioritises nutritional value over broad categorisations within the GST system is imperative. Such a reform would empower companies to advance their mission of promoting public health through innovative, low-sugar beverages," she said.

19/07/2024 08:47:54

Hospitality Expert Calls For Policies Supporting Purchase Of 2nd Homes

Bantwal Ramesh Balinga, Group CEO of Acquaviva, expressed anticipation for the upcoming budget, particularly within the burgeoning hospitality and retail sectors. "In the hospitality sector, with over 400 hotels announced and luxury retail growing rapidly, the government should consider policies that facilitate the purchase of second homes with reasonable interest rates. This will drive growth, reduce rental pressures, and promote market stability," Balinga said.

19/07/2024 08:24:40

Budget Should Allocate Additional Funds Towards Long-Term Value Creation: Expert

Nilesh Shah, Managing Director of Kotak Mahindra Asset Management Company, believes that the budget should go beyond a simple vote on account. It should build on the principles of fiscal prudence established by a vote on account while also enhancing resources for infrastructure investments and stimulating consumption among lower-income groups.

Shah advocates allocating additional funds towards long-term value creation through investments in education and healthcare. Furthermore, he suggests setting a more ambitious target for divestment by reducing government stakes in public sector undertakings with low floating stocks.