With the Union Budget 2024-25 eagerly awaited by the Indian industry, leaders from different industrial sectors have expressed their expectations from the forthcoming Budget which will the first full-Budget of the incumbent Modi government in its third term.

Finance Minister Nirmala Sitharaman will present the Union Budget on July 23.

Budget 2024 Expectations: Piyush Goel, Founder & CEO of Beyond Key, said:

"The 2024 budget in the tech sector anticipates key reforms that would streamline operations and boost growth towards a tech-savvy future. One of the key expectations is that the legislation governing Mutual Agreement Processes (MAP) and Advanced Pricing Agreements (APA) will be simplified. These regulations are essential for technology businesses operating globally to ensure affordable rates for cross-border transactions and resolve tax issues. 

In addition, there may be pressure to make the way royalties are paid more transparent and easier. Indian businesses that produce and distribute overseas technology products and services regularly depend on technological skills and information from abroad. Simplifying royalty payment policies could not only ease the administrative burden but also encourage the adoption of advanced technologies, and increase productivity and innovation in the field. Tech startups anticipate a Rs 1 trillion deeptech fund and increased investment in cutting-edge research for global commercialization.

All in all, the technology zone looks forward to a budget that addresses these critical issues, fosters an exceptionally conducive business environment, and aids the continued growth and competitiveness of India's technology groups in the international markets.”

Budget 2024 Expectations: Amit Bansal, CEO of Solv, said:

"As one of the leading B2B e-commerce industry expert, Solv calls on the new government to prioritize the MSME sector in the upcoming budget. Expanding the reach of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) and promoting innovative lending models are crucial to bridging the credit gap that MSMEs face. Simplifying compliance procedures and reducing regulatory complexities will unleash the true potential of these enterprises.

Moreover, as India stands on the cusp of significant technological advancement, encouraging technology adoption through targeted incentives and supporting initiatives like Startup India and Standup India will fuel innovation and drive inclusive economic growth. By focusing on these key areas, the budget can empower millions of entrepreneurs, fostering a resilient and dynamic Indian economy."

Budget 2024 Expectations: Kartik Solanki, Partner, Indirect Tax, BDO India, said:

"Correction of the inverted duty structure is an ongoing process on part of the Government. It is expected that the Government would further try and correct instances of inverted duty structure in the current budget. Some of the products, on which the customs duty exemption (full or part) expired on 31 March 2024 and was extended to 30 September 2024 are – solar tempered glass for use in manufacture of solar cells/panels/modules, Gold Ores and Concentrate for use in the manufacture of Gold, Lithium Ion Cell, Parts of Gliders or simulators of Aircrafts (excluding rubber tyres and tubes of gliders) etc.

For all of these items, where the customs duty exemption was extended to 30 September 2024, the Government would assess and decide whether to extend these exemptions further. For any of the products on which the exemption was extended till 30 September, 2024, if the exemption is not specifically extended by issuance of a notification, the customs duty exemption would come to an end on 30 September, 2024 and the product would attract duty from 1 October 2024."

Budget 2024 Expectations: Vinod Sood, MD, Hughes Systique Corporation, said:

“The upcoming Budget 2024 holds immense promise for companies specializing in full-cycle engineering for products and R&D services, encompassing programming, testing, verification, technical support, design, and technology consultancy. The industry anticipates increased funding for R&D projects through larger grants and tax breaks, which could spur significant technical innovation. A reduction in the corporation tax rate would also be highly beneficial, fostering a more favorable environment for investment and expansion, particularly for startups and IT enterprises.

Industry leaders are enthusiastic about advancements in digital infrastructure, such as the introduction of 5G and enhanced internet connectivity. These improvements are expected to boost productivity and enable companies to offer cutting-edge solutions to their clients. Policies supporting collaboration between businesses and academia could further accelerate the development of new products and technologies.

In summary, the Budget for 2024 can significantly impact the product design and R&D sectors by providing financial incentives, enhancing infrastructure, and encouraging innovation. These measures will not only benefit tech businesses but also drive the overall growth of the Indian IT sector. Notably, the government has reiterated its commitment to launching the Rs 10,000 crore IndiaAI Mission within the next two to three months, laying a solid foundation for future technological advancements. The government's active efforts to establish this mission underscore its dedication to positioning India as a global leader in AI and technology.”

Budget 2024 Expectations: Mr. Rayan Malhotra, founder and CEO of NeoFinity.

"In anticipation of the 2024 budget, the financial region eagerly awaits reforms to solidify the boom and stability.  India's clean and concise capital gains tax regime is critical to strengthening capital markets. Simplifying tax systems and ensuring clarity will attract prominent traders and stimulate market interest.

In addition, finance is expected to raise awareness of the driving activities at IFSC GIFT City, making it a global financial hub. The potential impact of enhanced incentives and infrastructure development on attracting global organisations is significant, and this is expected to support financial services, making stakeholders feel excited and hopeful about the future of the financial sector.

The banking region is on a path to inspiration for modernisation and performance ahead of the measures. Initiatives to promote virtual banking and reduce non-performing assets (NPAs) are essential for a healthier financial ecosystem. In addition, the sale of non-cash transactions is a problem. Authorities can embellish transparency and performance in economic transactions by incentivising virtual banknotes and reducing reliance on coins.

Overall, the financial quarter envisages a budget that will help strengthen the capital market, modernise banking, and promote a cashless financial system. These measures will ensure sustained growth and competitiveness in the Indian monetary environment."

Budget 2024 Expectations: Mr. Ashwin Jaishanker, founder and CEO of AutoVRse.

"Technology developments are anticipated to receive a portion of the proposed budget for 2024 to promote development and industry development in the IT sector. It will become essential to invest in cutting-edge technologies like blockchain, IoT, and AI. By boosting output, sustainability, and efficiency, these advances ought to improve India's standing in the global IT market.

It is essential to comply with international digitization and sustainability criteria. By addressing present issues, this alignment can establish India as a pioneer in the tech-driven, effective logistics industry. The two most important tactics to accomplish these objectives will be to improve digital infrastructure and offer incentives for green logistics. Such programs promote sustained growth in addition to promoting innovation.

To fulfill the demands of a changing ICT ecosystem, the budget should also prioritize training and upskilling the workforce. Other areas where the budget can have a big influence are bolstering cybersecurity measures and helping businesses with finance and incubation facilities. In general, advancing India's IT sector towards global leadership will require an innovative budget that embraces sustainability and technology."

Budget 2024 Expectations: Siva Balakrishnan, founder and CEO of Vserve

"As Budget 2024 approaches, I'm eagerly anticipating measures that will support the growth and stability of the e-commerce sector. One critical expectation is for the government to take proactive steps to manage inflation. By doing so, they can safeguard customer purchasing power and bolster retail expansion.

Improving the process of royalty payments through technology is also crucial. Many Indian e-commerce firms rely on advanced foreign technologies to enhance their operations. Simplifying royalty payments can encourage the adoption of these technologies, boosting efficiency and competitiveness.

Being a part of this industry, we look forward to a budget that addresses these priorities fostering a favorable business environment. Enhancing retail growth and promoting the use of cutting-edge technology will ensure the continued advancement of the sector in India.

This is the first Budget after the election of the Modi Government, and I hope it will favor the e-commerce industry. While the government has worked towards building e-commerce infrastructure to provide equal opportunities in previous tenures, there is still more to be done. Budgetary support for the growth of the Open Network for Digital Commerce (ONDC) would be a great starting point.

Investing in cybersecurity to protect e-commerce platforms and consumers from fraud and data breaches is another crucial area. 

I would love to see incentives for environmentally friendly practices, such as sustainable packaging and eco-friendly logistics, including the use of renewable energy in warehouses and delivery vehicles."

Budget 2024 Expectations: Agam Chaudhary, founder and CEO of Two99

"As we approach the Union Budget 2024-25, I am optimistic about a fiscally prudent plan that stimulates growth through strategic demand and supply-side incentives. In particular, tax rebates and incentives for MSMEs are crucial to liberate capital for reinvestment, fostering innovation and resilience within this vital sector, which accounts for 30% of India’s GDP and employs over 110 million people.

Investments in digital infrastructure are paramount, including the establishment of large-scale GPU clusters, which will position India as a leader in the AI revolution. With the global AI market projected to grow at a CAGR of 42.2% from 2020 to 2027, enhancing our AI capabilities is essential for staying competitive. Additionally, a focus on skill development tailored to the internet economy is essential. By leveraging our demographic dividend, we can ensure that our workforce is equipped to thrive in an era dominated by digital advancements, where digital literacy and advanced tech skills are becoming increasingly critical."

Budget 2024 Expectations: 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.

Budget 2024 Expectations: Smitha Shetty, Regional Director - APAC - Achilles Information Ltd

The upcoming budget is anticipated to bolster support for MSMEs and prioritize supply chain sustainability. Enhanced infrastructure development, streamlined regulations, workforce upskilling, and increased investment in innovation-driven technologies will be pivotal in fostering MSME sector growth.

At Achilles, we champion policies that strengthen supply chain resilience through our managed services, ensuring organizations maintain robust risk mitigation strategies. We empower MSMEs to surpass industry benchmarks, unlocking substantial capital for growth while fostering a sustainable, innovation-centric MSME community.

We envision a budget that encompasses eco-friendly incentives, advanced digital infrastructure for seamless logistics operations, and equitable trade practices. Such policies will fortify supply chains and bolster the competitiveness of MSMEs in the global marketplace.

Budget 2024 Expectations: Prashant Kumar, MD & CEO, YES BANK

“The Union Budget 2024 is expected to play a crucial role in shaping India's economic future. This is especially as the tax revenue collections have remained robust and the government is also armed with a bumper dividend from the RBI. The government is expected to remain committed to the reforms process and be focused on eight key areas: sustainable growth, financial sector, infrastructure and investment, women, youth & farmers, last-mile connectivity, inclusive development, and economic expansion – all essential towards achieving 'Viksit Bharat' by 2047.

The government has exhibited its commitment towards fiscal discipline, much necessary to signal economic stability and build investor confidence. However, the government is also expected to balance this objective together with the needs for economic growth and providing adequate outlays for key social sector programs, in an effort towards inclusive growth and ensure that the benefits of economic development reach all segments of society. In this context the government is likely to lay stress on ensuring skill developments, focus on enhancing the strength of the manufacturing sector via sharpening the PLI scheme and provide adequate support for small business to grow.  

At YES BANK, we are prepared to support the government’s push for enhancing digital infrastructure and promoting financial inclusion. This aligns with our commitment to bringing advanced banking services to underserved regions and supporting initiatives in green mobility, affordable housing, healthcare, and education. These efforts will not only spur economic growth but also ensure holistic development.

We are particularly excited about growth in manufacturing and support for MSMEs, which are vital for job creation and economic dynamism. YES BANK stands ready to contribute to India's journey towards becoming one of the world's largest economies.”

Budget 2024 Expectations: Vinod Sood, MD, Hughes Systique Corporation:

The upcoming Budget 2024 holds immense promise for companies specializing in full-cycle engineering for products and R&D services, encompassing programming, testing, verification, technical support, design, and technology consultancy. The industry anticipates increased funding for R&D projects through larger grants and tax breaks, which could spur significant technical innovation. A reduction in the corporation tax rate would also be highly beneficial, fostering a more favorable environment for investment and expansion, particularly for startups and IT enterprises.

Industry leaders are enthusiastic about advancements in digital infrastructure, such as the introduction of 5G and enhanced internet connectivity. These improvements are expected to boost productivity and enable companies to offer cutting-edge solutions to their clients. Policies supporting collaboration between businesses and academia could further accelerate the development of new products and technologies.

In summary, the Budget for 2024 can significantly impact the product design and R&D sectors by providing financial incentives, enhancing infrastructure, and encouraging innovation. These measures will not only benefit tech businesses but also drive the overall growth of the Indian IT sector. Notably, the government has reiterated its commitment to launching the Rs 10,000 crore IndiaAI Mission within the next two to three months, laying a solid foundation for future technological advancements. The government's active efforts to establish this mission underscore its dedication to positioning India as a global leader in AI and technology.

Budget 2024 Expectations: Divyesh Dalal, Managing Director & Head – Global Transaction Services, SME & Institutional Liability Business, DBS Bank India.

 "The upcoming Union Budget presents an opportunity to boost the growth of India's MSME sector. Measures like Production-Linked Incentives, Export promotion, Digital India campaign, simplification of tax structure and Skill development will bolster the global competitiveness of MSMEs. We are optimistic about the continued thrust on digital adoption, financial inclusion, green policies, market access and concerted efforts to foster entrepreneurship. These will help integrate MSMEs deeper into global value chains while incubating new ideas and sparking innovation. We hope to see measures that will augment enterprise resilience and cyber security, considering emerging external risks. As a trusted partner to this segment, we will continue to support MSMEs and help them maximise new opportunities that will emerge from the Budget."

Budget 2024 Expectations: Sanjay Sinha, Founder at Citrus Advisors

“This Budget is expected to outline the 5-year vision of the Government and a roadmap to achieve it. I expect that there will be a lot of emphasis on infrastructure and job creation. It is likely that aided by the bountiful dividend from RBI and the spectacular tax collection of almost Rs 35 lakh crores in FY24 the FM may announce a fiscal deficit target of less than 5% for FY25. We have seen bond yields beginning to react after the inclusion of India in the JP Morgan Bond Index. A sub 5% deficit will enthuse the markets even more.”

Budget 2024 Expectations: CA Krishnan R - Director & CEO- Unimoni Financial Services Limited. 

"We anticipate that the budget will include additional strategic measures that build on the announcements made in the Interim Budget on airport development, long-term, interest-free loans to states for the construction of iconic tourist destinations, and initiatives to improve the infrastructure for tourism on our islands. 

Improving infrastructure, including highways, airports, and popular tourist spots, is essential to drawing in both domestic and foreign tourists. The upcoming budget offers a critical chance to maintain India's standing as a major global tourism destination while promoting equitable development throughout the country."

Budget 2024 Expectations: Gaurav Jalan, Founder & CEO, mPokket

“Following from the Interim Budget earlier this year and the challenges of the economy in the recent past, the upcoming full budget is expected to focus on employment, infrastructure and innovation. We expect the government to double down on initiatives relating to upskilling of youth to improve employability. Alongside this, increasing jobs is expected to be the core government agenda. We expect this to be through a dual approach of easing credit access to small and medium businesses to catalyse their growth and through incentives on research and investments from the private sector. We expect the government to also focus on the disposable income of the middle class by revisiting direct taxation rates. This shall drive a sustained domestic consumption-led growth for the economy. Additionally, we believe the government shall continue to view positively the contribution of fintechs as a key driver of easy access to credit and their potential to create employment. We therefore expect a favourable approach to investments in the sector and clarity on the open regulatory discussions to propel India towards becoming a global fintech hub.”

Budget 2024 Expectations: Shashank Singh - Co-Founder – Poshn

The Interim Budget of 2024 allocated ₹1.17 lakh crores to the Ministry of Agriculture, marking a ₹1997 crore increase from the previous budget. The upcoming budget is anticipated to maintain continuity in key measures outlined earlier. Focus areas include enhancing farmers' income, reducing food waste, managing price pressures, and fostering growth in micro and small food processors. Initiatives such as PM Kisan Nidhi Yojana and PM Fasal Bima Yojana, aimed at providing minimum income support and crop insurance respectively, are expected to continue. These measures are poised to bolster the agricultural and food processing sectors, driving efficient growth and sustainability.

Enhancing Agri Exports India, despite contributing 8.5% to global agricultural production, holds just a 2% share in the global agri-export market. This disparity necessitates targeted government interventions. Focus on key commodities like rice, wheat, and pulses is crucial to boost export competitiveness through improvements in crop quality, supply chain efficiency, and production enhancements.

Climate-Resilient Agricultural Practices India's agricultural sector has faced significant challenges due to erratic climatic patterns, impacting both kharif and rabi harvests in the recent past. Two such examples could be the early onset of southwest monsoon last year and El nino this year. Enhancing climate resilience is critical for mitigating these risks and ensuring sustainable growth in the sector.

Budget 2024 Expectations: 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.