Union Budget 2024
This will be the first budget of the NDA government's third term. As the Finance Minister Nirmala Sitharaman is gearing up to unveil it, the stakeholders across different industrial sectors have pinned high hopes on it. While they are looking for concrete measures tailored to meet the requirements of their specific industries, they equally want steps to be undertaken to stimulate growth in their respective segments.
Leaders from real estate, healthcare, IT, and renewable energy sectors are unified in their calls for targeted policy reforms that can drive sectoral development and address specific challenges to boost Indian economy.
Emphasizing on the need for encouraging the luxury segment of real estate sector, Mr. Rizwan Sajan, Founder and Chairman, Danube Group says, "We are very enthusiastic to witness the fast-growing Indian economy and the rising demand in the real estate sector in country. Especially, the growth in the luxury segment is impressive, making this the best time for investment. We expect this segment to get further stimulated, and we also hope that the focus on ease of doing business will continue unabated in the upcoming budget for 2024, facilitating more investment in the real estate sector. We appreciate the government for implementing better policies, which have altogether made the country look promising in terms of growth and development. We expect more incentives and support for developers and investors to further boost the sector and meet the rising demand."
Advocating for specific reforms, Mr. Ajay Chaudhary, CMD of Ace Group shares, "We look forward to several long-awaited positive steps for the real estate sector in the upcoming Budget 2024. The sector is in dire need of tax breaks, single-window clearance, and reduction in stamp duty. Also, reduced GST rates applicable on construction materials and a revision in the GST input tax credit rules can stimulate overall market activity and transparency, benefiting both developers and buyers. At the same time, enhanced budgetary allocation for improving connectivity and upgrading infrastructure in premium locations is necessary to encourage luxury real estate development. These measures will stimulate growth and attract investments in this niche market."
"We are hopeful that the upcoming Union Budget will grant the much-awaited industry status to the real estate sector. This move could significantly boost investment in this sector which contributes approximately 7.3% to the country's GDP. We also expect targeted tax incentives in this budget along with the revival of schemes like the Credit-linked Subsidy Scheme (CLSS) to stimulate demand and make housing accessible for all-income groups", adds Dr. Gautam Kanodia, Co-Founder, Kanodia Group.
Echoing similar sentiments, Mr. Vijay Jain, Managing Director, Star Estate says, "We are hopeful that the upcoming Union Budget will prioritise infrastructure development and offer incentives to boost the housing sector. We also expect a considerable reduction in the income tax to increase disposable income of the individuals thereby stimulating demand in the real estate market. Additionally, simplifying the regulatory environment would greatly benefit our industry."
Pushing for measures to boost affordable housing, Mr. Arjunpreet Singh Sahni, Executive Director, Solitaire Group shares, "We expect the honourable finance minister will provide targeted tax incentives by increasing the tax rebate on home loan interest to Rs 5 lakh from the current Rs 2 lakh, which will make housing more accessible for lower-income groups. The government should also fulfil the long-standing demand of granting industry status to the real estate sector, making the developers eligible for easy financing on lower interest rates."
Speaking for the FMCG sector, Mr. Aman Choudhary, Executive Director Marketing at Anmol Industries Limited says, "We expect the Union Budget 2024 to include provisions to drive capital expenditure in infrastructure, which is vital for improving logistics and supply chains for the industry. Additionally, simplifying tax structures and providing incentives for MSMEs would support the growth and innovation while measures to control food inflation in the budget are essential for maintaining competitive pricing."
Mr. Kushal Patel, Managing Director of Axita Cotton, underscores the importance of support for MSMEs in the cotton sector and rural infrastructure development to enhance supply chain efficiency. He mentions, "For the cotton industry, it is crucial that the Union Budget focuses on supporting MSMEs and simplification of licensing requirements for agricultural inputs. An extension of the NPA timeline for MSMEs would provide much-needed relief to small and medium-sized cotton producers. Moreover, investment in rural infrastructure can enhance the supply chain efficiency for agricultural products, including processed cotton bundles known as cotton bales. Additionally, we request the government to declare more benefits for the export of cotton bales."
While voicing his opinion for reforms required in education sector, Mr. Utkarsh Gupta, Managing Director of Ramagya Group says, 'We hope the upcoming Union Budget includes greater capital expenditure on educational infrastructure and policies to enhance university-industry collaborations for research and development. These measures would greatly benefit the higher education sector. The budget should also prioritize supporting digital education initiatives to ensure equitable access to quality education, addressing a critical need in our country."
Meanwhile, Mr. Sanchit Sekhwal Goyal, Director of Su-Kam Power Systems Limited calls for prioritizing measures to foster growth in both renewable and green energy segments. He adds, "Incentives for renewable energy projects, along with investments in necessary infrastructure, can drive sectoral growth. Additionally, it is crucial that the budget includes policies to support research and development in renewable technologies."
Mr. Lokesh Vats, Director, Easy Solar Solutions Pvt. Ltd., highlights the importance of funding for solar energy projects and regulatory simplification to achieve renewable energy targets. "We hope the budget includes policy interventions on all these fronts to help the industry contribute significantly to achieving the country's ambitious renewable energy goals", he adds.
Mr. Rajinder Kaul, CMD, Sharika Enterprises emphasises the need for infrastructure development in power distribution sector, among other provisions in the upcoming Union Budget. "We also expect it to extend support to MSMEs contributing to the power sector, including subsidies for MSMEs in Type Testing cost including production linked payments to enable them to push their products in the market faster. This can be specially organized for products that have export potential and are import substitutes. Investments in smart grid technologies and incentives for research in this field are urgently needed to ensure industry growth, with specific funds allocated for these purposes in the upcoming budget," he adds.
Md. Sharique Khan, Senior Vice President - India Formulation Business, ArEx Laboratories shares expectation of healthcare sector, "The healthcare industry expects the Union Budget to prioritize increased capital expenditure for developing infrastructure to control healthcare costs. Furthermore, simplifying regulatory processes and providing incentives for pharmaceutical R&D are crucial to enhancing industry growth."
Mr. Manoj Gupta, Managing Director, Fortune Marketing Pvt ltd shares, "I am looking forward to the upcoming union budget with great anticipation. I hope it will prioritize the development of robust digital and telecom infrastructure, which is essential for the growth of the IT distribution and manufacturing sectors. Initiatives to boost innovation and research in technology can drive our industry forward. Additionally, support for skill development programs will ensure a highly skilled workforce, ready to meet future challenges. Encouraging collaborations between industry and academia can also foster new advancements. These measures will strengthen our position in the global tech and telecom landscape and drive sustainable growth."
In alignment with these views, Mr. Hari Kaimal, President-Strategy and Development at Supersonic Imagine adds, 'We at Supersonic Imagine are hopeful that the upcoming budget of India will include measures to drive innovation in the healthcare segment, particularly focusing on the medical imaging sector which requires urgent attention. For the country to emerge as a global leader in medical technology and to make healthcare solutions affordable for all, it is equally imperative that the budget also ensures policies encouraging international collaborations."
"We expect the honourable finance minister to introduce a comprehensive roadmap for extensive reforms in the power distribution sector. The government should also prioritise the adoption of prepaid metering solutions to enhance efficiency and reduce power losses while ensuring reliable power supply for the consumers. Besides strengthening the power infrastructure in the country all these reforms if incorporated in the upcoming budget will also support the digitally empowered India," concludes Dr. Bharat Bhushan, Executive Director, Radius Synergies International Private Limited.
The collective voices from various industries highlight the need for streamlined policies coupled with targeted reforms which according to them, are necessary to sustain significant growth and ensure rapid economic development.
