Major tax reforms, new schemes and policy decisions are not expected in the Interim Budget, which is a vote on account, aimed at seeking the authorisation of the Parliament to meet the government’s expenses for four months of the 2024-25 fiscal.
In the Interim Budget 2024, the Finance Minister’s goal will be to address the financial issues which cannot wait for four months, when the final Union Budget will be presented in the Lok Sabha.
But the business community is expecting a series of measures from the Interim Budget for driving domestic consumption and exports, and bringing growth in key sectors like education, healthcare, infrastructure, technology and agriculture.
Here’s what the key leaders from industry, in conversation with ETGovernment, had to say about their expectations from Interim Budget 2024:
Aalok Kumar, Corporate Officer & Sr. VP – Head of the Global Smart City Business, NEC Corporation and President & CEO, NEC Corporation India
India has been an exception in the global economy as far as overall growth is concerned. This growth has been achieved due to favourable policies, timely interventions and demographic advantages. Going forward, India’s budget will have to be extremely strategic to insulate the country from the current global economic headwinds.
This will require prioritizing robust job creation for youth, upskilling for a digitally empowered workforce, and initiatives that allow businesses to harness their full potential for collective growth. Supplementing this with seamless integration of key technologies like AI and automation will be a game-changer, driving productivity and economic growth.
This year’s budget could be a blueprint for a Viksit Bharat if it tick marks below boxes to build a future where technology empowers every citizen, propelling India towards its place as a global leader.
- Youth employment: Allocate resources for creating jobs in sectors like manufacturing, IT, and renewable energy. Invest in skill development programs to equip young people with the tools they need to thrive in the digital age.
- Women’s empowerment & safety: Break down barriers and boost women’s participation in the workforce through targeted skill development, entrepreneurial training, and accessible childcare facilities.
- Farm prosperity: Support our resilient farming community with improved irrigation systems, access to technology, and fair market prices. Focus on sustainable agricultural practices for long-term growth.
- Technology as the bedrock of all future development: Strategic implementation of technology at every level will help in strengthening access, reach and inclusion of businesses and society as a whole.
Arun Awasthy, President & Managing Director, Johnson Controls India
In today’s global context, the question of climate change and decarbonisation looms large, and has unanimously emerged as the top priority among all nations, demanding strategic leadership at all levels. With buildings globally contributing to 40% of carbon emissions, the opportunity for transformative change in this domain is significant, particularly in a developing nation like India. As we approach this year’s Union Budget announcement, there is an expectation that the momentum of the Green Growth initiative from the previous year will strengthen, reflecting a sustainability-first approach.
Strategic investments in sustainable practices can act as a catalyst, propelling India towards decarbonization. This requires a more multi-dimensional approach, including greater incentivisation of green and smart building practices and certifications, encouraging the adoption of energy- efficient designs, and advancing skilling efforts in green and smart building technologies.
As the nation collectively works towards achieving the net-zero target, we are optimistic that the Union Budget will reflect this commitment by widening access to sustainable solutions, enhancing affordability, and convenience for all stakeholders, ensuring a truly inclusive and environmentally responsible future.
Pranay Kumar, ED-REPL (Rudrabhishek Enterprises Limited)
Hospitality: The hospitality sector, integral to the tourism ecosystem, stands as a pivotal pillar in the comprehensive development of a nation’s infrastructure. With a notable surge in road travel over the past year, any initiatives aimed at enhancing infrastructure and connectivity are poised to have a favourable impact on the demand for the hotel rooms. A thriving hospitality sector is essential to meet the surge in disposable income, a natural outcome of increased infrastructure capital expenditure.
Despite the acknowledgement of tourism and hospitality as industries by over eleven State Governments, the sector is yet to receive the corresponding incentives and privileges associated with ‘industry status’. There has been a persistent call for granting infrastructure industry status to the hospitality sector, which will align it with the criteria for long-term funds under the RBI Infrastructure lending norms. This crucial step would not only boost the availability of quality accommodations but also stimulate heightened global and domestic travel demand.
The other areas of consideration are rationalising GST rates in hospitality and allowing GST input tax credit for hotel construction which will make hotels more affordable. With booming GST collection, we sincerely believe that there is some room available with the government to consider it favourably.
Healthcare: The expansive Indian healthcare system, ranking among the world’s largest, is poised to reach $50 billion by 2033 (as per RBSA Advisors), driven by contributions from both public and private sectors. Government spending on health has seen a steady increase, rising from 1.4 percent of GDP in FY19 to 2.1 percent in FY23 (as per PIB).
Despite this positive trajectory, there is a pressing need for additional investments to elevate life sciences and public health infrastructure, considering the healthcare demands within and beyond India. We expect the budget to prioritise investments in public health infrastructure by increasing to 2.5% of GDP. This will bolster primary healthcare facilities, and support the research and development capabilities of Indian pharmaceutical majors in life sciences. This strategic focus will not only propel India as an innovation hub but will also build upon its current ‘pharmacy of the world’ reputation. The other area is rationalisation of GST rates on some of the devices and equipment which are high at 28%.
A comprehensive vision for infrastructure development remains incomplete without addressing the advancements in public healthcare systems and the nation’s research and development capabilities.
Education: The Education Industry finds itself at a pivotal moment, poised for transformative growth that will shape our future for years to come. Budget 2024 must transcend its traditional fiscal role and emerge as a guiding beacon steering the course of our nation’s knowledge ecosystem. The sector’s significance is underlined by the necessity to harmonise educational curricula with industry demands and strengthen digital infrastructure in a bid to ensure that India’s diverse demography has universal access to education.
In an age where technology is inseparable from learning, a targeted investment in digital infrastructure is no longer a luxury. Bridging the digital divide remains a pressing challenge, given that only 41% of rural households had internet access in 2023 (IAMAI and KANTAR). Our expectation is for a budget that seamlessly integrates education and digital infrastructure, and continued focus on skill development will provide the necessary impetus to the robust growth of the economy.
Tarun Saini, Co-founder & CEO, Vidyakul
Under the NEP 2020, the government has strived to reshape education by focusing on inclusivity and offering equal opportunities for diverse learners to revolutionize K-12 education. We hope the momentum continues as education across Bharat witnesses change.
We seek ongoing support for edtech growth in tier 3+ towns, emphasising digital infrastructure, teacher training, and vernacular education to enhance K-12 education in Bharat. Initiatives like Sarv Shiksha Abhiyan, Rashtriya Madhyamik Shiksha Abhiyan (RMSA) and many more have already set the wheels in motion for education in rural areas.
We anticipate more such policies in the budget allocation as we have witnessed the immense potential and impact of a girl child’s education. We are also hopeful that the government will introduce schemes and funds to provide financial assistance to girls who want to pursue higher education.
Anil Nagar, Founder & CEO, Adda247
With the Union Budget 2024 around the corner, we expect a strong focus on supporting the edtech sector. We are hopeful that the government will bring down the 18% Goods and Service Tax (GST) on online learning resources, a crucial step that will make educational services more affordable and accessible.
With the rise of hybrid and online education, there’s a need to increase investment in technology infrastructure at schools and colleges. We are also hopeful to see some government backed accelerator programs, and innovation hubs that will encourage R&D and innovation in the sector. Under the Skill India Mission, the government has been focussing on upskilling programs.
We foresee increased cooperation of private players in skilling India, to make youth employable.
