Ahead of the national election earlier this year, the Union government presented an interim budget that reinforced its vision for ‘Viksit Bharat’ by 2047 – to accelerate India into a developed nation and foster inclusive economic participation among all citizens. Now that a full budget is awaited, industry leaders across sectors expect clear and decisive provisions to advance this vision, with technology at the heart of this transformation. Here are the views and expectations of the Union Budget 2024 from industry leaders:
Aalok Kumar, Corporate Officer & Sr. VP-Head of Global Smart City Business, NEC Corporation, and President & CEO, NEC Corporation India: We expect clear and decisive provisions to advance the vision unveiled by the government in the interim budget, with technology at the heart of this transformation. We are optimistic that this Union Budget will prioritize the adoption of digital technologies across critical sectors, particularly in governance, to create a more inclusive, efficient, and participative framework. While technology continues to drive India’s socio-economic progress, the key lies in building the nation into the knowledge capital of the world through enhanced R&D and innovation efforts. This will require continued and rigorous investments into the nation’s talent pool through concerted training, skilling, and upskilling endeavors.
At NEC India, we remain committed to supporting this mission by partnering with our partner ecosystem and the public sector. Together, we aim to propel India’s journey towards global leadership, leveraging innovations in line with our focus – ‘In India, for India and From India, For Global’.
Arun Awasthy, President & Managing Director, Johnson Controls India: The United Nations Sustainable Development Solutions Network’s (SDSN) recent report on the SDGs highlights a critical challenge: with 16% of the targets on track for completion by 2030, underscoring the urgent need for economies to prioritize sustainable development strategies alongside economic growth. Bridging the gap between long-term aspirations and near-term action, detailed road maps across every sector are essential.
In the interim budget that was announced mere months ago, the government outlined the New Green Deal, demonstrating its commitment towards achieving green growth and sustainable development. The provisions under this though predominantly focused on aspects of renewable energy and clean fuels, we are optimistic that the upcoming Union Budget, building on this, will drive focus towards strengthening the energy efficiency of India’s building infrastructure (built environment), considering its potential to bring down the national carbon emissions disproportionately. Additionally, provisions to bolster the skilling and innovation initiatives pertaining to green technology will be key in bridging the existing gaps. At Johnson Controls India, we are dedicated to joining forces with the public and private sector, to not only help build the discourse and knowledge base around green buildings and infrastructure but to also walk the talk in this regard.
Kunal Jhunjhunwala, Founder, Airpay Payment Solutions: In anticipation of the upcoming budget, the fintech industry is hopeful for policies to drive innovation and digital transformation across India. Historically, budget allocations have prioritized key sectors such as agriculture, auto, and MSMEs. Building on this foundation, fintech companies are urging the government to introduce schemes and incentives that support their expansion into underserved sectors to enhance financial inclusivity. The government can help create innovative solutions while maintaining financial stability by fostering collaborations between fintech and traditional institutions.
The government must address foundational issues that impact the broader economy and continue efforts to formalize informal employment. Initiatives such as the Karnataka Platform-Based Gig Workers (Social Security and Welfare) Bill, 2024, which aims to provide social security for gig workers, are commendable. More such legislation can help establish a formal financial structure, making formal financial services more accessible. Reforms concerning cooperative banks should be emphasized, and policies should be introduced to enable fintech’s contribution to the ecosystem’s growth. The Ministry of Cooperation should engage formally with fintechs to promote the digitalization of banking services.
Optimizing the tax structure to empower the middle class and drive consumption will greatly benefit the fintech industry. Maintaining UPI as a free service, with no MDR on payment instruments, is essential. Additionally, fintech companies should have easier access to incentives through a more transparent process.
It is commendable that the government acknowledges the industry’s maturity and the reduced need for stringent oversight of minor infractions. However, similar to the support provided for MSME growth, initiatives should be introduced to allow fintech companies to participate in government tenders and access financial opportunities currently exclusive to banks. Integrating fintech into the government’s larger initiatives is crucial for fostering innovation and economic growth. For example, the NABARD assists the government, the Reserve Bank of India, and other organizations in rural development and offers training and research facilities for banks, cooperatives, and organizations working in this field. Allowing fintech companies to directly leverage NABARD’s opportunities would benefit the overall economy. By accessing NABARD’s resources, fintechs could develop tailored solutions for rural financial needs, enhancing financial inclusion and driving economic growth in underserved areas. This integration would support a more robust and inclusive financial ecosystem nationwide.’
Sachin Sharma, Founder and Director – GEM Enviro Management Ltd: Building on the momentum of last year’s budget, which prioritized green growth, the upcoming Union Budget presents a significant opportunity to further strengthen India’s waste management infrastructure. However, significant challenges remain. Inadequate waste collection infrastructure and inefficient sorting and recycling systems continue to hinder progress. Valuable materials are still being discarded in landfills instead of being diverted for reuse.
To truly advance India’s circular economy goals, the government must encourage and support waste management agencies that are diligently working in this field. Additionally, streamlining the supply chain for e-waste and plastic waste is essential. This will foster a robust ecosystem where manufacturers, industry players, and recyclers can collaborate more effectively. While Extended Producer Responsibility (EPR) and the Waste Management Rules of 2016 have had a positive impact, more impactful compliance is needed to achieve truly meaningful results.
Ravichandran V – Chairperson & Trustee, eVidyaloka: Our ask for the Education Sector is clear and pivotal for India’s future growth and development. Over the past decade, government spending on education has regrettably declined from 3.1% to 2.9% of GDP. To effectively address the critical needs of Education, Higher Education, Skills Development, Faculty Competency Development, and enhancing the employability of our graduates, the upcoming Union Budget must prioritize the following key initiatives:
Firstly, it is imperative to increase spending on Education and Skills Development to 6% of GDP initially, with a progressive target of reaching 7% over the next five years. This investment is essential to ensure that our education system is adequately resourced to meet the challenges of the 21st century and beyond. Next, the establishment of a dedicated Higher Education Commission is essential. This commission will play a pivotal role in aligning education with employability, focusing on skill development for employment, fostering collaborations with renowned international universities, and internationalizing the approach of our universities to elevate select institutions into the global Top 200 rankings.
There is also an urgent need to establish a robust Research Foundation aimed at funding comprehensive research across various fields and disciplines within the education sector. Allocating funds in this Budget and operationalizing this initiative by the end of 2024 will catalyze innovation, promote excellence in education, and contribute significantly to India’s knowledge economy. These strategic measures are crucial steps toward building a skilled workforce, enhancing educational outcomes, and positioning Indian universities as globally competitive centers of learning and research.
Uma Shankar Patro, Senior VP – Finance, at InfoVision: At InfoVision, we eagerly anticipate Budget 2024-25, hoping for transformative policies that bolster India’s digital economy. As a key player in the IT sector, we look forward to initiatives that foster innovation, strengthen digital infrastructure, and promote skill development. We expect the budget to prioritize investments in emerging technologies like AI/ML, Data analytics, 5G, Telemedicine, and cybersecurity, ensuring India’s global competitiveness. Additionally, measures for startups and SMEs in the IT sector will be crucial for fostering entrepreneurship and job creation. Embracing innovation, inclusivity, and sustainability, the upcoming budget can propel India towards becoming a global leader in the digital age.
Ashok Rajpal -Managing Director – Ambrane India: For the Union Budget 2024-25, there is a strong sense of optimism within the electronics industry. The Government’s Production-Linked Incentive (PLI) schemes have already demonstrated their potential, driving remarkable growth, attracting investments, and enhancing our manufacturing capabilities. We anticipate continued support in the upcoming budget. To elevate our industry to global standards, it is imperative to enhance support for exporting ‘Made in India’ products. As the budget approaches, we look forward to policies that reinforce domestic manufacturing, foster innovation, and enhance our global competitiveness. Sustained backing for the ‘Make in India’ initiative remains crucial to our trajectory.
Critical investments in infrastructure and technology will be pivotal for the growth of the electronics manufacturing sector. Tax incentives and streamlined regulatory processes are essential for sustaining sectoral health. Emphasizing self-reliance in advanced technologies will further bolster local manufacturing efforts. We await the budget with optimism, expecting policies that strengthen our foundation for growth, innovation, and sustainable practices in electronics manufacturing.
Mahesh Krishnamoorthy, Managing Director, Core Integra: The salaried class has always kept high expectations from the budget, but the last few budgets have been quite disappointing in terms of opportunities to optimize tax and potential for long term savings with higher returns. Few tasks could include raising the basic exemption slab to at least 5 lacs and simplifying the tax rates to 10%, 20% and maximum 30% along with eliminating the surcharge and cess. Sec. 80C limits could be enhanced to at least 3 lacs from the current 1.5 lacs. Interest limits on housing loans and principal repayments could be enhanced further. Income Tax Returns could be simplified for Employees who have no other source of income other than salary, the submission by Employer along with TDS as applicable must be considered as auto filing of returns.
Jitendra Tanwar Managing Director & CEO of Namdev Finvest Pvt Ltd: The NBFC sector in FY25 faces a complex landscape of challenges and growth prospects, especially in capital mobilization crucial for expanding business operations. This sector plays a pivotal role in addressing the financial inclusion gap by funding over 6 crore MSMEs across the country. Currently, banks and capital markets serve as primary funding sources for NBFCs. While offshore development financial institutions offer sustainable long-term funds aimed at enhancing social aspects such as gender-based financing and promoting inclusive growth in deep rural economies, the disadvantages of offshore borrowing become apparent. These include high withholding taxes and the absence of incentives for NBFCs or authorized dealer banks (AD Banks), making fully hedged borrowings less competitive compared to domestic loans, which benefit from priority sector lending (PSL) advantages.
Despite these challenges, offshore borrowing presents opportunities for credit diversification and risk management, integrating global best practices into the domestic financial market for the purpose of Micro Enterprises (MSMEs) and retail borrowers of green vehicles and solar rooftop products (renewable products). This approach can potentially strengthen the economy by leveraging partnerships with global institutions committed to sustainable, environment-friendly finance initiatives. In conclusion, while navigating the complexities of offshore versus onshore funding for MSME and green financing, the government must consider incentivizing and promoting such measures so that NBFCs can carefully take advantage of global integration, ensuring sustainable growth and financial inclusion across India’s diverse economic landscape.
Dr Sat Kumar Tomer, Founder & CEO, Satyukt Analytics: India’s vast geography makes it one of the world’s most productive agrarian economies, contributing 15-16% to its GDP and ensuring food security for 1.3 billion people. However, 89.4% of agricultural households own less than two hectares, facing challenges like erratic monsoons, rising temperatures, groundwater overexploitation, poor irrigation, overuse of chemical fertilizers, etc. Small farmers struggle with credit and insurance, while complex agricultural policies hinder progress.
Considering all these factors, Satyukt Analytics envisions leveraging ISRO’s satellite data for agriculture with a forward-thinking approach. We advocate for real-time integration into agricultural delivery, farm-scale credit assessments, and crop insurance. Promoting precision agriculture, particularly in water optimization and crop advisories, and incentivizing agri-tech startups to collaborate with institutions like KVKs, will drive sustainable growth. We support policies that encourage ag-tech startups to run awareness programs for best practices and emphasize digital literacy and R&D to create user-friendly agritech solutions tailored to farmers’ needs. These initiatives align with our mission to innovate in agriculture, banking, and financial services through advanced technologies.
Rahul Garg, CEO & Founder-Moglix: Corporate India is eagerly anticipating the upcoming budget, hoping it will continue to prioritize infrastructure development, which is crucial for sustained economic growth. They also seek increased support for MSMEs, recognizing their role in job creation. Additionally, easing and streamlining the licensing process for electronics imports is needed to enhance efficiency.
From the startup perspective, they are integral for a Viksit Bharat. The recent $7 Bn funding raised in H1 2024 showcases promising growth potential. To further accelerate this momentum, the elimination of the Angel Tax on startups would be a welcome move as it can increase domestic capital formation and ease of doing business.
Lastly, there is a need to expand the scope of the PLI scheme. By including labor-intensive sectors and those with strong linkages to MSMEs, PLI scheme could be a game changer for the manufacturing industry in India as it fosters innovation and will drive exports and employment generation. PLI schemes have the potential to act as accelerators for high-quality job creation while giving a substantial boost to domestic manufacturing. Additionally, the industry is also looking forward to incentivisation in manufacturing sector to boost consumption.
