16th July 2024- As India gears up for the upcoming Union Budget 2024, scheduled to be presented by Finance Minister Nirmala Sitharaman in the Lok Sabha on July 23, industry leaders, economists, and policymakers are sharing their insights and expectations. This eagerly awaited budget has sectors across the spectrum optimistic about positive outcomes. Ahead of the budget announcement, expectations are pouring in from various industries, outlining their needs and hopes. Stakeholders are closely observing how the budget will tackle significant economic challenges, spur growth, and promote sustainable development. As the budget unfolds, the nation eagerly awaits strategic measures aimed at driving progress and prosperity in the financial year 2024-25.
Vineet Agrawal, co-founder of Jiraaf,
“A robust capital debt market is indispensable to realize India’s ambitious goal of achieving a $5 trillion economy, with retail investors playing a pivotal role in its realization. Currently, their participation stands below 4%, making it imperative to increase this figure fivefold over the next five years. Several measures can bolster this objective. First, eliminating TDS at source on bond repayments would encourage investment by reducing procedural hurdles. Second, extending taxation benefits akin to equity investments—such as inclusion in the 80C deduction limit, tax-free interest income up to a specified threshold, and lower LTCG taxation rates—would incentivize greater participation. Third, facilitating easier digital access to corporate and government securities would democratize investment opportunities, attracting a broader base of retail investors. Lastly, fostering a vibrant buy-and-sell market to enhance liquidity will further bolster confidence and attractiveness in debt instruments. Together, these initiatives can pave the way for a more inclusive and dynamic debt market, crucial for India’s economic growth aspirations.”
Vikas Singh – Chief Collection Officer, Propelld
Our focus remains steadfast on advancing co-lending partnerships, harnessing fintech innovations, and promoting inclusive access to education loans. These pillars are pivotal in fostering a resilient and digitally empowered financial ecosystem. Hence our expectation from the Union Budget 2024 is for a strategic roadmap and implementation plan that fosters collaborative efforts from all players within the fintech segment.
Mr. Uma Shankar Patro, Senior VP – Finance, InfoVision
“At InfoVision, we eagerly anticipate Budget 2024-25, hoping for transformative policies that bolster India’s digital economy. As a key player in the IT sector, we look forward to initiatives that foster innovation, strengthen digital infrastructure, and promote skill development. We expect the budget to prioritize investments in emerging technologies like AI/ML, Data analytics, 5G, Telemedicine, and cybersecurity, ensuring India’s global competitiveness. Additionally, measures for startups and SMEs in the IT sector will be crucial for fostering entrepreneurship and job creation. Embracing innovation, inclusivity, and sustainability, the upcoming budget can propel India towards becoming a global leader in the digital age”,
Mr. Shalya Gupta, CEO, PHF Leasing Limited:
I am expecting the budget to be in sync with the people aspirations from the Government’s unprecedented third term win. The focus, I believe, will be on strengthening the existing policy framework, focus on ease of business and put in the building blocks for a “Vikasit Bharat” by 2047.
Liquidity is a challenge faced by the NBFC segment since public deposits and ECBs have been restricted and there is an appeal to the Government to ensure that systems are put in place for creating a refinancing body for the segment, so that the goal of financial inclusion of all can be met. The Government should also incentivise the NBFC segment for investment in tech, focus on serving the underserved communities and meet the final goal of easier access to credit by all.
In the eMobility space, we hope that Government enlarges the scope of Faster Adoption and Manufacturing of Electric Vehicles (FAME 2), to include smaller players too in the segment. eRickshaws and eLoaders have transformed the Informal Public Transportation Systems in the rural and urban spaces.
Today, we are witnessing a massive growth in the number of e-rickshaws, but not all of these are registered, especially those used for intra-business purposes. The Government should make EV registration and insurance a mandatory requirement. Lowering the registration cost as a policy will promote more people opting for registration.
The Govt needs to focus on creating policies that are the same across the country and promote a strong regulatory framework that ensures that the E-Mobility sector continues to grow and contribute significantly to the sustainability goals as well.
Capt Ishver Dholakiya, Founder and MD, Goldi Solar.
“With climate change as one of the key global concern, we believe the green energy charter will be on priority in the upcoming union budget 2024 as India currently at 150 GW has set an ambitious target of achieving a renewable energy capacity of 500 GW by 2030. Further, with a focus on ‘Make in India’, and improving ease of doing business, India has become one of the preferred destinations for global companies and is on the road to becoming the third third-largest economy in the world with a GDP of $5 trillion making green energy a top focus to achieve its Net Zero goals. PM Narendra Modi’s recent address in Russia underlined India’s commitment to renewable energy. In fact, the Government’s focus has been clear with the recent progressive policy and regulatory reforms such as ALMM, PLI scheme, PM Surya Ghar, PM Suryoday Yojana and more.
To further shape the renewable energy sector, the government must focus on large-scale investments in domestic solar panel and component manufacturing facilities. This will not only shorten supply chains and reduce dependency on imports, but also create a cost-competitive advantage. Introducing new skill development programs, incentives, funding, import duties, subsidies, and crafting favourable policies that can boost R&D and innovation will further bolster the sector. We also recommend allocating the unutilized PLI funds towards smaller companies that meet specified criteria to support their entry into module and component manufacturing. This strategic distribution is crucial for boosting the capabilities of MSMEs in the renewable energy sector. Apart from this, budgetary allocations should address the growing need for support towards energy storage projects.”
Mr Pradeep Gupta – Executive Director & Head of Investment at Lighthouse Canton
“We expect the budget to be a balancing act between welfare spending & capex expenditure thus not distorting the fiscal prudence shown till now. The government will aim to provide the necessary impetus to lower the pyramid of consumption & rural recovery which has been a mixed bag so far. The Capex multiplier for India is 2.5 times hence continued momentum on that front will be a welcoming scenario that essentially ensures sustained quality of spending. We also expect an expansion of the PLI scheme to other sectors as well given the thrust around manufacturing at large. This is of critical significance given the $ 1 trillion export target set out by the Government of India by FY28, its spill-over effect & overall contribution to job creation. Lastly, any change in equity taxation to ensure standardization will not be well received and do not augur well for secular financialization of savings.”
Rahul Jain – CFO, NTT DATA Payment Services India
“In the upcoming Union Budget, the government should provide a subsidy on merchant discount rate (MDR) for Unified Payments Interface (UPI) and RuPay Debit card transactions to make the business model more viable for industry players. This will support the expansion and deep penetration of digital payments across India especially in rural areas. It should focus on strengthening the digital ecosystem by allocating funds to encourage fintech innovations, particularly in expanding use cases for UPI. Also, simplifying and fast tracking the licensing process, creating a proper mechanism to ensure safety of digital payments, setting up infrastructure and other targeted initiatives will provide further boost to digital transactions’ scale and volumes. We are confident that the Government firmly intends to give further impetus to this sunrise sector to promote digital economy, fintech, and technology-enabled development”.
Sandeep Chaudhary, CEO, PeopleStrong
“As India eagerly anticipates the Union Budget 2025, we hope the Government will prioritize investments in skill development, employment generation, the startup ecosystem, and sustainable development sectors. With India’s economy projected to reach the $5 trillion mark, it is crucial to channel substantial investment into transforming Tier 2 & 3 towns into economic hubs, formalizing labor participation, and increasing female workforce participation.
Developing a world-class education system is essential to preventing brain drain to foreign universities and retaining talent within the country. We anticipate a budget that prioritizes economic advancement, employment generation, and technological investments, paving the way for a progressive and inclusive India.”
Raj P Narayanam, Founder and Executive Chairman of Zaggle Prepaid Ocean Services Limited
“In the upcoming Budget, we anticipate that Digital Banks in India will play a crucial role in bridging the gap between traditional banks and FinTechs. They have the potential to offer a blend of innovative financial products, a seamless user experience, and the regulatory backing of a licensed bank.
Addressing potential challenges through a well-defined regulatory framework and a phased approach can pave the way for a more inclusive and dynamic financial ecosystem in India. This strategic approach aims to serve as a mid-gap solution between traditional banks and fintech companies, meeting the evolving needs of digital-savvy consumers. It will empower consumers with secure, convenient, and affordable banking services tailored to the demands of the digital era.”
Mr. Raghav Himatsingka(Co-founder, Raising Superstars)
“Budget 2024 holds significant potential for nurturing the entrepreneurial spirit in India. As a co-founder of Raising Superstars, I hope to see increased funding and support for early-stage startups, especially those innovating in edtech and early childhood development. Investing in these areas can catalyze growth and pave the way for a robust, sustainable entrepreneurial ecosystem. Prioritizing initiatives that support digital infrastructure, education technology, and startup incubation will not only drive innovation but also empower the next generation of leaders to build transformative solutions for our future.”
Sameer Gandotra, Founder & CEO, Frendy
“The upcoming budget is going to be crucial to brace the momentum of consumption, especially in rural. The government should certainly double down on their agricultural and rural development initiatives, which inevitably would boost income levels and consumer spending.I hope we get more clarity on the formulation of the National Retail Policy, which in my opinion would be a game-changer! Affordable and low interest credit, stability of tax rates (GST) for staples and push for digitisation, is what the Indian retail space needs to continue the consumption wave.”
+ There are no comments
Add yours