Lok Sabha polls 2024: Key compliance and regulatory outlook for businesses in election-year

The year 2024 is an important one from India's perspective considering it’s the Lok Sabha election year and many strategic policies for the year will emanate from the political party that forms the Government. India, being one of the fastest growing economies, it is obvious that the world has its sight on the leadership for the next five years and policies would change basis whether it’s the same Government, new one or a coalition one. 

Mahesh Krishnamoorthy, Managing Director, Core Integra says that from the domestic perspective, 2024 remains a key year especially with an upcoming full Budget in July — the first one for the new Government — which will obviously be very important from the perspective of both industries and individuals who would have high expectations from the Budget speech.

He says, "Ease of doing business and simplifying compliances has been a key agenda for the Indian Government over the last decade. We have seen many regulations being simplified and scrapped, many offences have been decriminalized and a special focus on digitalization of compliances processes. In my view, this agenda should continue this year as well." 

The Managing Director of Core Integra says that considering that the financial conditions have eased, markets scaled new heights and demand is increasing, the Banking and Capital Markets could feel the pressure of constant monitoring and controls especially towards consumer protection. "Fintech and payments eco-system is growing at a rapid pace with innovations in abundance, this sector could possibly see some benefits to fuel the growth and at the same time enhanced regulatory governance," he adds.

He informs that the manufacturing sector, especially with strong domestic demand driving growth, will continue to grow with support from the Production Linked Incentive (PLI) schemes. Krishnamoorthy avers, "Service sector will also undergo transformational change through adoption of new technologies to improve last mile delivery. With the Financial Services, Manufacturing and Services sectors set to grow at a rapid pace, this will also develop the eco-system comprising of technology services, research and development, outsourcing services and professional services including consulting."

He feels that India is soon slated to be a hub for entrepreneurship and the Government will want to protect the entrepreneurs with schemes and benefits to develop a stable business and generate employment. At the same time, he says startups and MSMEs will come under higher regulatory governance framework for better controls.

"All these factors clearly indicates that regulatory compliances are becoming increasingly important, and adherence is non-negotiable negotiable irrespective of scale and vintage of business," he says.

"With approximately 60 per cent of Indian population in the working age category and this remaining an attractive feature for the next four decades, employment generation, employment sustainability and work conditions would be the key agenda for any Government over the next many years. When we speak of workforce, it is imperative that the labour compliances are given key importance. One of the major reforms anticipated in 2024 is the New Wage Code where almost all the States have designed the implementation framework in the lines prescribed in the Code. This would indeed be a very important step in consolidating and simplifying the labour laws which have not undergone any significant transformation over decades. The New Wage Code will also improve the social security measures and dispute resolution mechanisms for the workforce," he adds.

In all, he feels 2024 is going to be an exciting year from the perspective of growth, innovative technologies, entrepreneurship, development of Tier 3 and Tier 4 locations and last but not the least ease of doing business in a compliant manner. "Simplification, consolidation, transparency, ease of adherence, enhanced governance would be the words defining compliance in India in 2024 and the years ahead," he sums up saying.