Budget 2024 Expectations Highlights: As the Union Budget 2024 approaches, various sectors are abuzz with expectations for significant policy shifts and financial allocations. Finance Minister Nirmala Sitharaman took part in the traditional ‘halwa’ ceremony, marking the final stage of preparing the Union Budget 2024-25. The Budget is set to be presented in the Lok Sabha on July 23rd. In the lead-up to the presentation, ‘halwa’ is prepared and served to the officials and staff of the finance ministry involved in the budget’s preparation.
Budget 2024 Expectations : Sunil Bedi, Founder, JMD Group says rising real estate costs frequently result in higher rent, which puts more strain on tenants’ finances in light of the approaching 2024 budget.
He further went on saying that India is anticipated to have a significant impact on the housing sector, particularly in terms of tax relief.
Mr Bedi hopes that there might be an increase in the deduction limit for interest paid on home loans, which currently stands at ₹2 lakhs per annum and an increase in this limit would provide greater relief to homebuyers.
It’s hard to say housing will get more affordable.
He believes higher property prices often translate into increased rent, putting additional financial pressure on tenants.
Commenting on the GST imposed on the services provided, he claims that since no services are provided in a joint development, there should be no GST applied. Why pay GST when we are already paying stamp duty on agreements in JDAs?, he queries.
To encourage the construction of affordable housing, the budget could offer extended or new tax incentives to developers who focus on this segment. This might include tax holidays or reductions in GST rates for affordable housing projects, he concludes.
Budget 2024 Expectations : Ashish Kakkar, CEO & Co- Founder, Harmony Systems says on Sustainability, Business Ecosystem and GST Reduction
In order to maximize the long-term benefits of joining GVCs, India has been actively working to move upstream of the manufacturing value chain over the past few years. As a result, government initiatives were especially directed towards the manufacturing sector, with positive results. We expect this momentum to continue with the upcoming budget focusing more on building a business ecosystem, ensuring a business-friendly environment. With India’s ambitious clean energy targets and commitments under the Panchamrit goals, there are expectations around GST reductions. For Indian furniture manufacturers, following international standards and attracting eco-sensitive consumers can make their products more sustainable than ever as global markets increasingly gravitate toward sustainability. The government is anticipated to speed up its Free Trade Agreement negotiations with Oman, the UK, the EU, the South African Customs Union, and the Gulf Cooperation Council in order to support export and meet the aggressive $2 trillion export target by 2030.
Budget 2024 Expectations : Arvind Khanna, Director, Interior Inc says on MSME, Technology and Rural & Urban Employment
As the budget is around the corner, the MSME sector, especially small and micro enterprises in furniture manufacturing, is looking forward to increased budgetary allocations. They want more marketing and exhibition incentives to showcase their products and expand market reach. MSMEs contribute 30% to the Indian economy and employ over 110 million people. The furniture industry in this sector is a reflection of India’s rich cultural heritage as it combines traditional craftsmanship with modern technology, supports rural and urban employment and has huge export potential. Recent surveys show that 70% of MSMEs face challenges in marketing due to lack of funds. By allocating more funds towards marketing and exhibition support the government can empower these enterprises and boost growth and competitiveness. This will be in line with India’s vision of becoming a $5 trillion economy by 2025.
Budget 2024 Expectations : Mehul Sethi, Principal Designer, Remax Furniture says on Make in India initiative, Tax incentives and Job Opportunities
The “Make in India” initiative is expected to be reinforced in the upcoming Union Budget. This initiative can significantly benefit the Indian furniture sector by fostering local production. According to DPIIT, the furniture industry in India was valued at ₹1,34,250 crore in 2020, with a projected growth rate of 12.91% from 2021 to 2026. By promoting local manufacturing, the government can help reduce the import bill, which stood at approximately ₹12,750 crore for furniture and bedding products in FY2020. Additionally, increased domestic production can create job opportunities and boost the GDP contribution from the manufacturing sector, aligning with the target to increase the sector’s share to 25% of GDP by 2025. This coupled with potential tax incentives and subsidies outlined in the budget, can enhance the competitiveness of Indian manufacturers in the global market, ultimately leading to a more self-reliant and robust furniture sector.
Budget 2024 Expectations : Gaurav Batra, Manager, ExportersIndia.com says on Global Trade Market and MSME
Exporters in India are expecting a few major measures in the coming budget to push growth. Expectations include enhanced export incentives, cutting red tape in customs procedures, and improved trade infrastructure.
“For the Micro, Small, and Medium Enterprises, which serve as a building block for the export sector in India, access to credit would rise, the burden of compliance would lower, and indeed schemes would make them entitled and bring in competitiveness in the markets around the world,” says Mr. Batra.
Other than that, exporters also look towards the budget for support in the form of tax relief, better initiatives on the access of markets, and mitigation of the impact of global trade disruptions. Overall, the budget is expected to focus on creating an export-friendly environment, ensuring sustained growth, and global market penetration for Indian exporters and MSMEs, he concludes.
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