Budget 2024 :  Industry Leaders expect tax reforms and support for business from Finance ministry 

As the Union Budget 2024 approaches, industry leaders are voicing their expectations, emphasising the need for transformative reforms and strategic investments to propel India’s economic growth. With the government’s strong fiscal discipline and robust tax revenue collections, there is a hopeful anticipation for measures that will foster sustainable growth, financial sector stability, infrastructure development, and inclusive economic expansion.

BFSI

Prashant Kumar, MD & CEO, YES BANK, anticipates the Union Budget 2024 to significantly shape India’s economic future. He highlights the government’s commitment to reforms, focusing on eight key areas: sustainable growth, financial sector stability, infrastructure, investment, women, youth, farmers, last-mile connectivity, and inclusive development. Kumar notes, “The government has shown fiscal discipline, crucial for economic stability and investor confidence. Balancing economic growth with adequate social sector outlays is essential for inclusive growth.” YES, BANK is prepared to support initiatives in digital infrastructure, financial inclusion, green mobility, affordable housing, healthcare, and education. Kumar adds, “We are particularly excited about growth in manufacturing and support for MSMEs, vital for job creation and economic dynamism.”

Retail

Kumar Rajagopalan, CEO of RAI, emphasized the importance of strategic government interventions in the upcoming fiscal year. Advocating for policies aimed at boosting consumer demand through tax incentives, reduced tariffs, simplified GST norms, and streamlined regulations, RAI underscores the transformative potential of the retail sector in fostering a conducive environment for sustained growth. The Retailers Association of India (RAI) highlights the pivotal role of India’s expanding middle class in fuelling robust economic growth through increased retail consumption. With the retail sector contributing around 10% to the GDP, valued at $1 trillion and expected to double to $2 trillion by 2032, India stands out as one of the world’s fastest-growing retail markets. Employment in the sector, currently employing approximately 50 million people, underscores its rapid growth and substantial job creation, ranking second only to agriculture.

Sustainable mobility

Niranjan Nayak, Managing Director of Delta Electronics India, emphasizes the need for transformative reforms in the auto sector to promote green and sustainable energy. He expects the government to align its policies with the net-zero goal and sustainable development. “The implementation of PLI schemes for EV charging companies is crucial. Expanding EV infrastructure and offering financial incentives will significantly boost our charging network,” Nayak explains. Delta Electronics India provides innovative charging solutions and hopes for budget measures that will enhance EV adoption, particularly in Tier II and III cities. “Prioritizing open data standards and APIs for charging networks will ensure interoperability and enhance user experience.”

AI and Infrastructure

Chinmay Hegde, Co-Founder, CEO, and Managing Director of Astrikos.ai, hopes the budget will prioritize funding for AI-driven infrastructure management. He emphasizes the need for a dedicated budget allocation for Infra-AI to foster innovation and efficiency. Hegde states, “Tax incentives should be introduced to encourage AI and machine learning adoption across organizations. Supporting the development of next-generation data centers is crucial for scaling AI capabilities.” He also calls for grants for sustainable and green urban infrastructure projects leveraging AI technologies and increased R&D funding for AI advancements under DST grants.

MSME Sector Support

Arun Kumar Nayyar, CEO and Managing Director of NeoGrowth Credit, highlights the government’s commitment to the MSME sector. He anticipates further support in improving access to credit, strengthening digital public infrastructure, and enhancing liquidity measures. Nayyar remarks, “Timely access to credit remains a significant challenge for MSMEs. NBFCs play a crucial role in reaching underserved segments, and an enabling environment through increased funding and regulatory reforms is essential.” Citing the Neo Insight Study titled ‘MSME Business Confidence Study 2024’, he notes that 82% of MSMEs plan to adopt new digital tools this year. “Government-led skilling programs can help MSMEs upgrade digitally and enhance their operations.”