Pre-Union Budget 2024: Key Expectations and Expert Insights

As India gears up for the much-anticipated Union Budget 2024, speculation and analysis abound across the nation's economic landscape. Industry titans, esteemed economists, and policymakers have shared their predictions and hopes for the fiscal year ahead. This comprehensive pre-budget quote compilation delves into the key expectations surrounding fiscal policies, economic reforms, taxation changes, and sector-specific impacts, providing a holistic view of what experts believe will shape India's economic trajectory.

The pre-budget period has been rife with speculation, analysis, and expectations. Here are some key quotes from industry leaders, experts, and stakeholders reflecting the mood and hopes leading up to the big reveal:

Rahul Garg, Founder and CEO Moglix, an e-commerce platform for industrial tools and equipment:

"Leveraging India's strong economic growth and fiscal responsibility, the 2024-25 Budget can become a catalyst for innovation in AI, deep tech, and manufacturing. Increased R&D funding in AI, alongside clear ethical guidelines, is crucial to establish global leadership in this transformative field. 

For the manufacturing sector, streamlining regulations, tax breaks, and infrastructure investments will boost efficiency and empower startups to compete globally. Specialized incubators, accelerators, and robust export support can provide them with the resources, mentorship, and market access needed for success. 

Similarly, increased spending on R&D in healthcare and cybersecurity, coupled with a supportive regulatory framework, can unlock breakthroughs in deep tech with high commercial potential. By prioritizing deep tech awareness initiatives and targeted incentives, the government can cultivate a vibrant startup ecosystem in this high-impact sector, contributing to job creation and India's rise as a global innovation hub".

Rohan Bhargava, Co-founder, CashKaro:

"We are closely watching the discussions around income tax reforms in the upcoming budget. The current tax rate for earnings above ₹15 lakh stands at 30%, which is quite steep. The significant jump in tax rates from ₹3 lakh to ₹15 lakh highlights the need for a more gradual increase. Raising the income threshold before any tax is levied from ₹3 lakh to ₹5 lakh would provide individuals, especially those in the lower earning bracket, with more disposable income. This change would boost consumption, increase savings for the middle class, and provide positive momentum for the e-commerce industry.

From an entrepreneurial perspective, the upcoming end of the Startup India Seed Fund scheme in 2025 highlights the need for a new initiative to continue supporting the growth of the startup sector. Startups are also calling for the complete removal of angel tax regulations to foster a more conducive investment environment. Furthermore, AI-related regulations should be addressed at the earliest to ensure that as a country, we don't hit bottlenecks in innovation and growth. Startups prefer self-regulation over stringent guidelines, which can stifle creativity and rapid development in this crucial sector.

Pro-MSME policies are also vital. Simplifying the regulatory framework, providing tax benefits, and creating infrastructure for logistics and digital payments are necessary steps. Overall, keeping operational costs low for MSMEs through such measures will support their sustainability and growth.

At CashKaro, our mission is to improve the purchasing power of consumers through attractive cashbacks and discounts. By doing so, we not only benefit consumers but also help brands reach a wider audience, creating a win-win situation for everyone involved."

Aalok Kumar, Corporate Officer & Sr. VP-Head of Global Smart City Business, NEC Corporation, and President & CEO, NEC Corporation India

"Earlier this year, the GoI 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. As we await the full budget, we expect clear and decisive provisions to advance this vision, 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 endeavours. 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'

Shree Parthasarathy, Partner – Digital, Trust and Transformation, Forvis Mazars in India:

"As we approach the 2024-25 budget, it is crucial for the government to prioritise the adoption of artificial intelligence (AI) and advanced technologies to drive innovation and economic growth. Increased investment in AI research and development will not only position India as a global leader in technology but also spur job creation and enhance productivity across various sectors.

Additionally, with the rapid digital transformation underway, the government must focus on strengthening cybersecurity measures. Allocating funds to develop robust cybersecurity infrastructure and promoting best practices will safeguard critical data and ensure the resilience of our digital economy. These steps are essential for fostering a secure, innovative, and technologically advanced future for India."

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 roadmaps 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.”

Aparna Acharekar, Co founder at coto, a social community platform:

“Women have broken barriers, defied stereotypes, and driven progress toward a more just and equitable society. Their influence spans numerous industries, transforming the business landscape and achieving remarkable results across various sectors. This year, the interim budget highlighted women empowerment as a major theme, aiming to enhance their socio-economic status and provide better opportunities to succeed as leaders and entrepreneurs. In line with the government's vision, we anticipate robust policies in the upcoming union budget to increase women's participation in the workforce and promote digital entrepreneurship. We believe that the upcoming budget will incentivise and empower women-led businesses by providing better access to funding and capital while giving them a conducive environment to grow.” 

Su Piow Ko, CEO of AET India:

"Throughout AET Displays’ 13-year illustrious journey, we have continuously pioneered advancements in LED display technology, driven by a commitment to innovation and excellence. As we look ahead to Budget 2024-25, we anticipate policies that foster research and development in the technology sector, particularly in LED displays. We urge the Government of India to consider incentives for indigenous manufacturing, reductions in GST and import duties on advanced technology components, and investments in infrastructure that supports technological innovation. These measures will not only boost local production capabilities but also accelerate the adoption of next-generation LED display technologies. At AET Displays, we are eager to contribute to India’s growth story and strengthen our position as a global leader in visual technology."

Apurv Modi, Managing Director & Co-Founder of ATechnos Group:

"As we approach Budget 2024, we are optimistic about the anticipated reforms and their potential impact on the mar-tech sector. The expected income tax rate cuts and the proposed increase in the income threshold to ₹5 lakh are promising developments. These measures will enhance disposable income, stimulate consumer spending, and drive growth across industries, including mar-tech.

With the Modi Government starting its newly re-elected term, there is considerable anticipation for policies that further technological innovation and digital transformation. We hope to see initiatives that simplify the ease of doing business and support the growth of digital infrastructure. Such steps will create a robust environment for mar-tech companies to innovate and expand, ultimately contributing to the broader digital economy.

Budget 2024 has the potential to be a pivotal moment for the industry, and we look forward to the positive changes it may bring."

Amjad Raza Khan CEO of Cashaa:

We are hoping for the same things as we were with the Interim Budget in Feb, 2024. Rationalisation of capital gains tax down from the current 30% and of the TDS tax rate of 1%. Treating crypto at par with other financial asset classes like equity. A well-defined regulatory framework for crypto in the country, making crypto a suitable investment option for the common man as well as spurring industry investment in the crypto sector.

Hitesh Garg, Vice President and India Country Manager at NXP Semiconductors:

“India is committed to strengthen its ESDM ecosystem, as reflected in the government's significant budget allocations and incentives. With India emerging as a major market for electronics, automotive, and electric vehicles, and a key hub for technical expertise, we feel the 2024 Union Budget to prioritize investments in digital infrastructure and offer incentives for research and skill development. These measures are important for building an ecosystem conducive to cutting-edge technologies such as SDV, AI, and IoT, strengthening cybersecurity measures, and enhancing IT exports.

At NXP Semiconductors, we are optimistic about the government's proactive stance and look forward to collaborating closely to accelerate India's emergence as a key player in the global electronics and semiconductor landscape.”

Winny Patro, CEO and Co-Founder, Recordent India:

"In the age of data and technology solving many problems for businesses, MSMEs are still struggling with delayed payments and are caught up in a vicious cycle of cash flow problems. An SME entrepreneur spends more time dealing with late payments than growing his business. Introduction of section 43B(H) had an impact around the end of financial year 2024 closing and will again only impact late payers during FY closings. Access to working capital and MSMEs samadhan filing, addresses the cash flow at the fag end of the problem. There is a need to address the problem holistically like how the banking industry got better with timely payments due to credit bureaus. MSME data stack could be one of the solutions to reduce credit risk and avoid late payments. In addition to this, benchmarking payment terms based on sectors and nature of products/services could be another solution. Hoping that the upcoming budget gives importance to solve this massive problem of ₹10 lakh+ crore late payments stuck in the MSME sector in India".

Hari Krishanan Nair, Co-Founder, Great Learning:

"Skill development is paramount for the sustained growth and competitiveness of our economy. Historically known as the back office of the world, India has been a vital hub for outsourcing services. With the increasing number of global companies establishing their Global Capability Centers (GCCs) in India, we are presented with a plethora of job opportunities for our youth. However, to fully leverage these opportunities, it is imperative that the skills of the Indian workforce meet global standards. By becoming a talent powerhouse, India can attract more investments, foster innovation, and drive economic growth.

Equipping our workforce with cutting-edge skills enhances employability and positions India as a preferred destination for high-value projects and international business operations, thereby significantly contributing to the country's economic prosperity.  Hence, making skill development accessible and affordable becomes of utmost importance. In this budget, I hope the government takes measures to reduce GST on upskilling and reskilling programs.

Lowering this tax burden will make these programs more affordable, encouraging greater participation and investment in personal development. Additionally, incorporating upskilling programs into educational loan schemes is crucial. Currently, these programs do not fall under the purview of educational loans, resulting in higher interest rates for learners. By including them in educational loans, we can make these programs more accessible and affordable, significantly alleviating the financial burden on individuals seeking to enhance their skills."

Uday Sharma - Chief Commercial Officer - Allcargo Gati Limited:

"The logistics subsector is undergoing numerous changes to address infrastructure and technology challenges. As the lifeline of the MSME sector, the logistics and supply chain industry plays a crucial role in efficiently delivering their products and enabling them to reach the market or their destination. MSMEs rely heavily on their third-party logistics providers to operate smoothly, as they often face limitations due to a lack of capital or resources.

The upcoming budget should create an environment where MSMEs can flourish with well-developed logistic infrastructures based on sustainable practices. We expect the budget to prioritize investments in infrastructure development, digitalization, and skill development, which will further empower MSMEs. Our commitment goes beyond providing logistics; we actively support programs that enhance operational efficiency and competitiveness for MSMEs. Through various initiatives like capacity-building workshops, digital transformation projects, and skill development programs, we strive to grow and sustain MSMEs."
 
Rishab Kapur, Co-founder and Vice President of Strategic Alliances, Edverse:

“It is undisputed that technology plays a pivotal role in the education sector. Policies supported by proper financial investments can greatly improve accessibility to the best resources for deserving learners. Therefore, the hope from the budget is that the government prioritizes investment in digital infrastructure, allowing players in the segment to bridge the gap in learning opportunities. Furthermore, by providing tax incentives and grants, the government can foster the development of innovative educational technologies, encouraging ed-tech start-ups to curate tech targeted to the needs of the Indian diaspora. We also hope to see funds allocated towards the training and development of teachers to utilize the available technology to the best of their abilities.”

Indraneel Gupta, Founder & CEO, Portl :

"At Portl, we are dedicated to transforming the landscape of health and wellness in India. We understand that the journey to a healthier nation begins by making vital resources like fitness equipment and personal training services more accessible and affordable to everyone. With the rising prevalence of lifestyle diseases such as diabetes, hypertension, and obesity, addressing the economic and health challenges posed by physical inactivity is crucial. Currently, the prohibitive 18% GST on fitness equipment and services limits accessibility for many Indians. Reducing the GST to 5% could significantly lower costs, making these essential health resources more affordable.

Lowering GST on fitness equipment will encourage more households to invest in home fitness solutions, promoting regular physical activity. Similarly, reducing GST on fitness services, such as personal training and nutrition coaching, will make these essential health services more accessible. These changes can lead to a healthier population, reducing the economic burden of non-communicable diseases, projected to cost India around USD 4.58 trillion between 2012 and 2030. We urge the government to implement these GST reductions, enhancing public health and boosting economic productivity through a healthier, more active workforce. It's time to foster a culture of fitness and well-being, contributing to India's economic and social development. Lowering GST rates is a strategic move towards a healthier, more prosperous nation” 

Sanjay Borkar, CEO & Co Founder, FarmERP:

"In the upcoming Union Budget, the Agritech industry holds high expectations for significant advancements in new-age technologies and the integration of sustainability within agriculture. Enhanced funding for technology adoption is critical, with increased investments in AI, machine learning, and blockchain needed to revolutionize farming practices, enhance productivity, and ensure sustainable growth. Tax incentives and subsidies for Agritech startups will accelerate innovation and attract young entrepreneurs to the sector.

Establishing additional research and development centers focused on agricultural technology will foster innovations and provide practical solutions for farmers and agribusinesses.

The industry also urges the government to enhance digital infrastructure in rural areas, recognizing reliable internet connectivity as crucial for farmers to access modern agricultural tools and platforms. Introducing policies that promote sustainable farming practices and climate-resilient technologies is imperative for achieving long-term environmental and economic benefits.

These measures will not only support the Agritech industry's growth but also contribute to a more sustainable and resilient agricultural sector, benefiting both the agriculture industry and the broader economy."

Pranav Dangi, Founder & CEO, The Hosteller:

As an Indian hostel chain owner, I hope the upcoming Union Budget will provide much-needed support and relief to the hospitality sector. Key expectations include:

Tax incentives, such as reduced GST rates and investment-linked deductions, help the industry recover from pandemic-induced losses. Easier access to affordable credit to facilitate infrastructure upgrades, expansion, and working capital requirements. Policies that boost domestic tourism, including incentives for young travelers and students to explore India, can significantly benefit the hostel industry.
Improved connectivity through investments in transportation infrastructure, enhancing accessibility to tourist destinations. Subsidies and incentives to encourage the adoption of sustainable practices, such as renewable energy and eco-friendly operations, in the hospitality sector.

Karan Desai, Founder, Interface Ventures:

The Indian fintech industry is looking forward to a Union Budget that will continue building on the development of digital infrastructure across the entire financial services ecosystem. Digital India has been a pet project of the government and in their 3rd term, expectations are that even more investment will go into driving this revolution.

While India today is a global leader in digital transactions (exceeding 13.3 bn monthly transactions now!), there is plenty of work to be done in ensuring the cybersecurity of personal data, regulation of the sector and other issues. Digital KYC validation is an integral part of the seamless provision of financial services, but the sector can do with clear and stringent regulations to minimise identity theft and cyberfraud.

The RBI has issued a draft framework for industry-led discussion on regulating the fintech industry so expectations are that there could be some further announcements in this regard which in turn will help weed out unscrupulous players from the industry.

BK Malagi, COO at Experion Developers:

We believe that the forthcoming budget will address the main issues facing the real estate industry, especially by giving homebuyers tax relief and expanding the deduction for house loan interest. Reforms aimed at increasing the availability of affordable housing, such as better financing for housing projects and expedited approval procedures, are also essential. Further stimulating growth will be providing incentives for sustainable development and improving infrastructure in developing metropolitan areas. All things considered, these policies will not only stimulate the housing market but also increase the number of people who can become homeowners.

Harsh Punjabee, Founder & CEO, SMEST Capital:

"As we approach the Union Budget 2024, market participants anticipate a balanced approach that maintains fiscal discipline while fostering growth across key sectors. The interim budget is expected to prioritize infrastructure development, digital transformation, and green initiatives, setting a stable foundation for the incoming government. This cautious yet forward-looking approach aims to sustain economic momentum without introducing major disruptions ahead of the general elections,"

Karan Desai, Founder, Interface Ventures:

The Indian fintech industry is looking forward to a Union Budget that will continue building on the development of digital infrastructure across the entire financial services ecosystem. Digital India has been a pet project of the government and in their 3rd term, expectations are that even more investment will go into driving this revolution.

While India today is a global leader in digital transactions (exceeding 13.3 bn monthly transactions now!), there is plenty of work to be done in ensuring the cybersecurity of personal data, regulation of the sector and other issues. Digital KYC validation is an integral part of the seamless provision of financial services, but the sector can do with clear and stringent regulations to minimise identity theft and cyberfraud.

Conclusion: 

As the Union Budget 2024 approaches, anticipation and expectations are running high across India's economic landscape. Insights from industry leaders and experts highlight a collective optimism for transformative fiscal policies, tax reforms, and strategic investments in technology, sustainability, and infrastructure. These quotes capture the diverse hopes and aspirations, underscoring a unified vision for leveraging the budget to drive growth, foster innovation, and build a resilient, inclusive future for India.

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