Budget 2024: What do different sectors expect from this Budget? Find out

Union Finance Minister Nirmala Sitharaman recently participated in the traditional 'halwa' ceremony - which marks the final stage for preparation of the Budget 2024. Sitharaman will present the Budget on February 1 for the financial year 2024-25.  

Ahead of that, various sector and industry experts are talking about the expectations from this budget. Here's a list of things that experts expect from Budget 2024.

Ravi Kunwar, Vice President - India & APAC, HMD Global (The Home of Nokia Phones)

 

"As we anticipate the Interim Union Budget 2024, HMD Global holds optimistic expectations for the Indian smartphone market. Foreseeing an extension or enhancement to the Production Linked Incentive (PLI) policy, we aim to fortify local production and encourage an indigenous components supply chain. The budget's positive impact on operations, particularly in local manufacturing, is anticipated, though precise planning hinges on final announcements.

Our wish-list emphasizes more incentives for local production, encouragement for components manufacturing within India, and support for exports. In the face of potential changes, we stand ready to make necessary adjustments, anticipating a budget that builds upon existing policies for stability and growth. HMD Global remains committed to contributing to India's self-reliance and the global success of its smartphone industry."

Gaurav Agarwal, Co-Founder of Gamezop

 

"Amidst global anxieties, India shines as a potent growth engine. However, achieving our ambitious $30 trillion target by 2047 requires more than relying solely on domestic consumption. Throughout history, thriving economies have built their castles on a positive balance of payments and export prowess, with each key sector acting as a brick in the wall. Today, one such sector with undeniable potential is gaming.

Consider the world's top four economies – their gaming industries stand tall, exporting innovation and creativity. As we approach the upcoming budget, there is a crucial need to prioritize and support this burgeoning sector. Duty Credit Scrips for export-oriented gaming companies will not merely be a handout; it will signify a strategic investment in high-skilled jobs, GDP growth, and building global influence.

It is time for India to transition from being one of the largest consumers of content to becoming the largest creator of content. The hope is that we can seize this moment, not just to play the game, but to rewrite the rules."

Sagar Gupta, Director, Ekkaa Electronics

 

“As the global economy experiences geopolitical uncertainty, rising inflation, and slowing growth, the 2023-2024 budget will play a pivotal role to boost consumption and improve consumer demand. The central government also remains committed to introducing and implementing reforms that will lead to ease of doing business, with a focus on encouraging investments to promote making in India and Atmanirbhar Bharat. Our expectation from budget 23-24 is that government should consider streamlining tax rates on televisions (TVs). They are no longer 'luxury goods', but have become essential items for daily life. Reducing the tax cap from 28 per cent to 18 per cent would offset price pressures, boost demand for TVs (105cm and above), improve consumer affordability, attract investment in component manufacturing, Helps support deeper market penetration.

For manufacturers, reforms such as the Production Linked Incentive (PLI) program demonstrate the government's intention to promote healthy backward integration and boost domestic manufacturing while strengthening India's position as a global manufacturing hub.”

Kuldeep Malhotra, Dy. Managing Director, Konica Minolta Business Solutions India Pvt Ltd

 

“The union government is continuously working and finding solutions to achieve its 2070 sustainability target. Keeping the same in view, we hope that in the upcoming budget, the government will introduce better and more attractive incentives, aimed at promoting the green economy. Besides this, we expect that government interventions and policy changes like tax rebates for meeting set environmental standards, certifications, green taxes on harmful environmental activities, and subsidies on the use of green products can go a long way in furthering the agenda of sustainability.”

Avneet Singh Marwah CEO SPPL, Exclusive brand licensee of Thomson in India

 

"The upcoming financial budgets are crucial to maintaining India's standing as the 3rd largest economy in the world. India contributes $3.7 trillion to the $108 trillion global economy and has the largest proportion of youth. In order to reach its full potential, the government ought to support consumption. In line with the strong GST trend, we anticipate cutting the GST on LED TVs larger than 32 inches from 28 per cent to 18 per cent in Budget 2024.

For the market to grow, PLA schemes must be expanded to include smart TVs, refrigerators, and washing machines. Income tax slabs might be reevaluated to improve disposable income, which will promote spending and raise consumption in general."

Chitranshu Mahant, Co-founder and CEO, Primebook

 

"We appreciate the government's efforts to promote innovation and growth in the electronics sector through the introduction of favorable policies and recent amendments. We hope that the budget will continue to prioritize the growth of the electronics industry, particularly MSMEs, and introduce measures to support domestic design and expand the PLI program. 

We also look forward to initiatives that will strengthen the supply chain and promote research and development in emerging technologies such as artificial intelligence, robotics, and the Internet of Things. We are confident that the government's policies and initiatives will continue to create a favorable business environment and drive economic growth in the sector. 

We also look forward to the development of policies that encourage production within domestic borders, allowing small enterprises to create devices that can help reduce the digital divide in the country."

Ashish Tandon, Founder & CEO - Indusface

 

"2023 was already challenging with bot-net driven DDoS attacks, credential stuffing attacks and an increasing number of zero-day attacks. The release of ChatGPT in late 2022 and the rapid adoption in 2023 has brought in more novice hackers into the mix. The POCs for complicated vulnerability attacks are more readily accessible now. We are already seeing a rise in attacks. 

According to our state of application security report, over 5.14 billion attacks were witnessed on Indian Websites and APIs in the year 2023. With 80 per cent applications facing bot attacks and 40% applications facing DDoS attacks respectively. Banking and insurance companies faced almost 500K attacks per application.

India has been encountering a huge increase in attacks year on year leading to regulators tightening the noose of compliance for businesses and government, however the budgets for cybersecurity are not keeping up pace with the requirements given the businesses are themselves subject to macro-economic challenges. Finance ministry should consider providing short term financial benefits to businesses investing in meeting these compliance obligations upholding governments commitment towards cybersecurity of citizens."

Amit Mishra, CEO & Founder, iMocha

 

"India is facing two big challenges right now. First, they need to find jobs for the huge number of young people who are looking for work every year. Second, they need to make sure that people who already have jobs, especially in technology, stay skilled and prepared for the future. To solve these problems, they should focus on hiring people for their skills, not just their degrees or past job titles. Also, the whole country should work together to improve the skills of its workers. The government should spend money on training people in things like artificial intelligence (AI), machine learning (ML), and cybersecurity.

Since there's a big need for skilled people in these areas, government funding for training will help young people get better jobs. The government and private companies should work together to train lots of people in skills for the future, like coding, AI, robotics, and other tech skills. In the last budget, the government focused on education that includes working while learning. This year, they are expected to focus even more on this."

Namratha Swamy, COO, MPL

 

“The online skill gaming has been on an explosive trajectory these last few years. With the right regulatory support, this sector has the potential to not only create a thriving ecosystem for gamers and game developers but also to showcase the prowess of Made in India games on the global stage.

The industry eagerly anticipates long-term clarity and a progressive taxation regime from the upcoming financial budget. This clarity is crucial for driving the next phase of growth, as it will not only provide a conducive environment for businesses but also revive investor confidence in the sector. A progressive taxation regime will further incentivize investment, leading to the creation of more job opportunities for our talented youth.

Additionally, we are hopeful that the budget will pave the way for the establishment of dedicated courses in gaming. These courses will play a pivotal role in nurturing the next generation of game developers and professionals, ensuring a steady supply of skilled talent to fuel the industry's growth.

I look forward to the upcoming financial budget with optimism, as we believe that the right policies and support from the government will propel the online skill gaming industry to greater heights, benefiting the economy in our march towards making India a $5 trillion economy.”

Raman Bhatia, Founder & Managing Director, Servotech Power Systems Ltd

 

"The announcement of Budget 2024 is coming closer and various industries have their own set of expectations from the upcoming budget including the EV industry. The EV Industry holds a strong potential to revolutionize India's transportation sector and for the EV industry to flourish there should be a strong push for upskilling and reskilling through centrally sponsored schemes to build a skilled workforce in the evolving EV industry. 

Sustainable growth in the EV sector is contingent upon technological innovation aimed at reducing costs, extending range, and revolutionizing charging infrastructure. This evolution pivots on developing Battery Management Systems (BMS) and nurturing domestic capabilities for battery manufacturing. Significant government funding, directed specifically at charging infrastructure in Tier II and Tier III cities, emphasizes open data standards and APIs, fostering interoperability and a resilient software ecosystem. Proposals to reduce GST on lithium batteries from 18% to 5% represent a game-changer, significantly cutting down EV acquisition costs and enhancing overall attractiveness."

Tarun Sharma, Founder & CEO at Yodda- Eldercare

 

"While we hope that the upcoming budget boasts inspiring measures for startups and healthcare infrastructure, the previous budget has overlooked a critical need for many senior citizens: Making at-home care accessible and more affordable for elders. Last year's commitment to increasing public health spending and building nursing colleges is commendable, but these alone won't address the immediate challenges faced by millions of aging Indians. 

The current taxation on at-home elder care acts as a barrier, particularly for low-income seniors. This stands in stark contrast to the tax exemption granted to similar care services. We hope that the upcoming budget addresses these challenges and also consider increasing the basic income tax exemption threshold for senior citizens while exempting at-home elder care from GST altogether or significantly reducing its rate. 

This would make these crucial services more affordable and accessible to a wider range of seniors. By prioritizing these actions in the coming union budget, the government can truly demonstrate its commitment to a future where all senior citizens, regardless of income, can age with dignity and receive the care they deserve."

Yug Bhatia, Founder and CEO of ControlZ

 

"I believe that a robust policy framework that defines standards, certifications, warranties, and taxes is crucial for the growth of the refurbished smartphone industry in India. From this Budget 2024, we predict a reduction in the GST rate to make refurbished devices more affordable and accessible to a wider audience. We are also expecting that the government will boost credit access and financing options, along with collateral-free and low-interest loans to the refurbished smartphone players. 

We propose that the government provide tax benefits and subsidies to the refurbished smartphone players who invest in R&D, and AI to promote innovation and technology adoption in this sector.  Lastly, we advocate for a focus on the circular economy and its environmental benefits, viewing it not just as a business opportunity but as a collective responsibility to make this sector more organized."

Vinod Nair, President – Noventiq India Operations:

 

“Given the rapid evolution of the digital landscape, we anticipate that the upcoming Union Budget 2024 will prioritize substantial investments in cybersecurity. The ever-growing threat landscape and the increasing sophistication of cyber-attacks make allocating resources to bolstering cyber defense measures crucial. We hope to see a strong commitment from the government to enable collaboration between the public and private sectors as the government is opening many nationwide national infrastructure for private participation.

This will help ensure India's digital infrastructure remain resilient and secure against emerging threats. Cybersecurity is not just an expenditure, but an investment in safeguarding our nation's digital future, and in today’s world of cyber threats, it’s non-negotiable. At Noventiq, we are proud to be part of this collaborative effort, and we are constantly innovating on our cybersecurity services and solutions through our Security Operations Centre (SoC). I believe that the best way to increase threat protection for client organizations is by investing in new technologies, such as AI and ML, while continuously modernising the processes. Our goal is to keep contributing to the defense against cybersecurity threats further strengthening the IT security sector.”

Mayank Bindal, Founder & CEO, Snap E Cabs

 

One of the most anticipated schemes to be continued is the FAME II subsidy (Faster Adoption & Manufacturing Electric Vehicles). This subsidy was announced in 2019 having a validity for 3 years. It is expected that the govt will continue this for the next few years in response to decarbonising the environment and achieve the targets of net 0 goals.

Along with this, there is a proposal to reduce the GST on the Li-ion batteries from 18% to 5% overall, reducing the cost of acquiring EV's. Since batteries are a major cost component in EV's, the move to reduce the cost of batteries will make the product more lucrative for buyers.

Over the past 5 years the government has focused a lot on building strong infrastructure. It is expected to continue improving and make efficient investments in energy, especially green energy and sustainable energy. The focus is on transitioning from carbon dependent to energy efficient policies. The new transport policies being adopted by the state govt is a testament to this shift. Many state transport authorities have announced the conversion of Petrol/Diesel cabs be converted into EV's by the end of this decade.

We look forward to EV financing getting priority sector lending status as the government's ambitious target of 30% penetration to be achieved by 2023.

Avi Dahiya, the Founder & CEO of Twyn

 

"Technology is the great equalizer but DeepTech is the great multiplier. Technology has practically transformed the way we work and live. However, advancements in DeepTech such as Artificial Intelligence have a ‘multiplier change effect’ not just in one particular field, but across industries right from national defence to payments to aerospace. Adding to it, this change delta is not just incremental, but exponential. Hence, it becomes quintessential for every country to invest into homegrown Innovation.

Innovation is at the core of any DeepTech enterprise as they are often focused on solving for real-world complexities through advanced technologies. However, there is high risk associated with DeepTech startups and unlike other startups, they also require larger investments given that the R&D costs are significantly higher. Besides, such startups have a longer gestation period. With the growing prominence and implementation of DeepTech across various industries, we expect increased investment in this space in the forthcoming budget to further enhance R&D mechanisms.

Increased investment will also encourage entrepreneurs to explore new ideas and open up possibilities for innovation in mainstream industries. In order to realize the vision of transforming 2020’s into a ‘Techade’ for India, we expect to see initiatives that will enhance collaboration between the industry, regulator and academia. The growth of the sector has also led to an increased demand for tech talent in the country. The upcoming budget should focus on increased investments in skill development of the youth in the technology sector. India is well poised to become the world’s technology and innovation hub in the coming decades, and this can only be done by strengthening and realizing the full potential of DeepTech."

Nishant Pitti, CEO & Co-founder, EaseMyTrip

 

"In expectation of the Union Budget 2024, we earnestly expect crucial reforms to strengthen and revitalize the tourism sector. We expect the Government to allow GST input on holiday businesses, a strategic reduction in income tax to catalyze growth in the country's tourism industry, and the streamlining of the TCS structure to a more favorable 5 per cent slab. Additionally, we expect a comprehensive overhaul of tax exemption policies related to Leave Travel Allowance (LTA), urging the Government to consider an annual allowance and the inclusive coverage of the entire tour package cost under LTA, surpassing the limitation to only flight expenses.

Predicting the realization of the full potential of domestic tourism, we look forward to a budgetary emphasis on infrastructure development, technology integration, and health-safety measures across airports, aviation, roads, railways, and waterways. Recognizing the vast, underleveraged potential of India's waterways, which includes sea and river cruising opportunities, we strongly urge the Government to undertake necessary measures for the development of this sector."

Agendra Kumar, Managing Director, Esri India

 

"Geospatial sector has high expectations for the forthcoming Union Budget 2024, for investments in progressive and transformative measures. The recently released India Infrastructure Report 2023 on Urban Planning and Development, points to the Government of India's commitment for higher investments in the infrastructure sector. We expect the upcoming budget to establish a comprehensive agenda for India's infrastructure development, with a particular focus on prioritizing railways, roads, aviation, ports, industrial and urban development, especially in tier-2 and tier-3 cities. 

Recognizing the potential for increased efficiency, speed, and quality in infrastructure development through emerging geospatial technologies like 3D digital twins, there is an expectation for enhanced budgetary support for the geospatial sector. This anticipated increase in funds could also empower state governments and city municipal corporations to leverage GIS technologies and data, to not only achieve improved governance but also drive various development initiatives. Additional funding is expected to bolster the efforts of geospatial companies, enabling them to contribute more effectively towards enhancing the nation’s infrastructure and economy.”

Deepak Syal Director and Co-founder GreyB    

 

India has been striving to become a tech superpower, and the Union Budget of 2024-25 is the perfect opportunity for the country to take a major leap forward.As the world is changing, the increase in automation and technology will affect every sector, whether it is ITES, FMCG, Banking, Automobile, Telecom, or Retail. If we have to be ready for the future, as a country, we have to start working on this shift now. This implies bringing innovation to the center of future growth. It was good to start this through NRF, but it may take a while to bring the change centrally via one organization. 

Therefore, the government should aim to push this initiative further in a decentralized way. For example, tax incentives are a good way to encourage firms of all sizes to innovate and create intellectual property. Establish dedicated innovation promotion agencies: These agencies can provide one-stop assistance to innovators, entrepreneurs, guiding them through regulatory requirements and facilitating investment and growth opportunities. Provide incentives for startups and small and medium-sized enterprises (SMEs) to promote entrepreneurship, innovation, and job creation. Additionally Maintain transparency and accountability in fiscal policies and governance to build trust with investors.

India has so much brainpower that if the government can allocate 1% of the budget to this Innovation pillar, we have high chances of achieving this goal of becoming knowledge capital. This will also enable our domestic players to compete at a global level and generate 10x export revenue for the country.

Sarvjeet Virk, Co-founder & MD, Finvasia 

 

As we approach Budget 2024, we anticipate a continued focus on advancing India's digital public infrastructure, a key pillar for realizing the $5 trillion economy dream. I look forward to enhanced government initiatives fostering financial inclusion benefiting Bharat, not just India. On the tech front, I hope to see further progress in establishing AI Centres of Excellence. I also expect more policies to enable public-private partnership to boost end-use cases of generative and predictive AI and increase its adoption in India. The fintech industry, as usual, will be the flag bearer of innovation. Government support, both in terms of policies and funding, will be instrumental in propelling the fintech sector to new heights of success.

Anuj Arora, Co-founder & COO, SahiBandhu Gold Loans 

 

Speaking on the ‘expectations or recommendations for the Interim Budget 2024’ Anuj Arora, Co-founder & COO, SahiBandhu Gold Loans said, “We anticipate the Interim Budget 2024 to align with the government's mission of uplifting the underprivileged and urge the government to introduce beneficiary schemes, especially as the General Sabha election approaches, focusing on the socio-economic empowerment of the marginalized. Acknowledging the FinTech and tech-based gold loan industry's pivotal role in reshaping financial services, we hope for policies supporting our growth, particularly in Tier 2, 3, and 4 cities, aiming to integrate rural communities into the formal banking system. Incentivizing FinTech dedicated to empowering SMEs through financial and technical interventions would mark a significant stride. Addressing loan disbursement including loans against gold/jewellery, we recommend regulations fostering collaboration between traditional banks and digital lenders for accessible loans. With the budget on the horizon, SahiBandhu Gold Loans, the largest gold loan aggregator platform eagerly anticipates a budget that propels innovation and inclusion in the rapidly evolving FinTech and gold-tech landscape."