20th July 2024- As the Union Budget 2024 is knocking on the door and set to be unveiled on July 23rd, various sectors and stakeholders are keenly anticipating measures that will stimulate economic growth and address key challenges facing the country. Expectations are high for increased public investment in infrastructure projects, which could generate employment opportunities and drive industrial growth. Additionally, there is a strong demand for tax reforms to simplify compliance and alleviate the burden on businesses, particularly small and medium enterprises (SMEs). The agricultural sector is hopeful for enhanced support through subsidies, improved irrigation facilities, and better access to credit. In light of global economic uncertainties, there is also a call for policies that will strengthen the manufacturing sector and encourage domestic production. Moreover, citizens are looking forward to increased allocations for healthcare and education to enhance the quality and accessibility of these essential services. Overall, the Union Budget 2024 is expected to strike a balance between growth and fiscal prudence, aiming to foster an inclusive and sustainable economic environment.
Mr. Kunal Arya, Co-Founder & Managing Director, ZELIO Ebikes
“As we approach the budget 2024-25, the EV industry is eagerly anticipating several key measures to drive growth and adoption. Increased subsidies will make electric vehicles more affordable for a broader range of consumers, fostering widespread adoption. Expanding the network of charging stations, especially those powered by renewable energy, is essential for supporting the EV infrastructure and addressing range anxiety. Reducing the GST on batteries and components will lower costs, making electric vehicles more accessible to the masses. Simplifying financing options for EV purchases will further encourage adoption by easing the financial burden on consumers. Promoting fleet electrification can significantly cut emissions and showcase the viability of electric vehicles for commercial use. Export incentives will help Indian EV manufacturers compete globally and expand their market reach. Additionally, skill development programs are vital for building a knowledgeable workforce to support this growing industry. Enhanced R&D grants and support for innovation in EV technology will ensure India remains at the forefront of the global EV revolution. We believe these measures will collectively propel the EV sector towards a sustainable and prosperous future.”
Sohail Mirchandani, Chief Operating Officer & Co-Founder, Ekostay
“The travel and tourism industry has been experiencing robust growth post-pandemic, presenting an opportune moment for the upcoming Union Budget 2024-2025 to further this momentum. Strategic investments in our sector can unlock significant economic opportunities, boost employment, and enhance India’s tourism landscape.
A uniform GST rate of 12% on hotels & homestays would greatly simplify compliance and eliminate price disparities caused by fluctuating room rates. Currently, the tiered GST system based on hotel room tariffs creates confusion and administrative challenges, with room rates varying between 12% and 18% GST depending on the season. Simplifying this to a single rate would benefit both businesses and consumers, fostering a more consistent and transparent pricing structure.
Furthermore, allowing online travel agents (OTAs) to register through their central head office instead of obtaining state-wise GST registrations would reduce administrative burdens and increase efficiency. The current regulation, which compels OTAs to establish a physical presence in each state, leads to high administrative costs and places national OTAs at a disadvantage compared to international competitors.
We also urge the government to address the GST discrepancies between e-commerce operators and direct bookings, which currently disincentivize digital transactions. For instance, a customer pays a 5% GST charge when booking a non-AC bus through an e-commerce platform, while this charge is zero for direct bookings from bus operators. Harmonizing these rates would support the Digital India initiative and promote fair competition.
Moreover, allowing Tax Collected at Source (TCS) credit to be used against salary income tax would provide much-needed relief to taxpayers. Currently, TCS credit can be used against advance tax but not against income from salaries, creating an imbalance that needs rectification.
Encouraging corporations to invest their CSR funds in developing and improving tourist destinations can lead to sustainable development while offering tax benefits. A weighted deduction under income tax and input tax credit under GST on CSR funds deployed to improve tourist destinations would garner larger participation from the private sector. This symbiotic relationship not only helps preserve tourist sites but also ensures all-around sustainable development.
Tax incentives for adopting sustainable practices would also align with India’s commitment to the United Nations Sustainable Development Goals, particularly SDG 11 (Sustainable Cities and Communities) and SDG 13 (Climate Action). By offering incentives that promote eco-friendly measures in the tourism sector, such as energy-efficient lighting, water-saving devices, and waste-reduction practices, the Hon’ble Finance Minister would encourage the industry to contribute to these global goals.
The hospitality sector deserves industry status to accelerate growth, recognizing its substantial contributions to GDP, employment, and foreign exchange revenues. Reducing GST, funding skill development, and promoting sustainable tourism are crucial steps for driving the sector forward. Additionally, recognizing the sector as an industry would provide significant thrust for companies to reinvest in growth, encourage more investments, and bolster job creation.
In conclusion, by addressing these key issues, the Hon’ble Finance Minister can ensure that the hospitality industry continues to thrive and contribute to India’s economic and sustainable development goals. A strategic and supportive budget will not only enhance the industry’s competitiveness but also position India as a premier global tourist destination.”
Mr. Arindam Chakraborty, COO of Catering Collective
“The “Wed in India” and “Meet in India” proposition presents a promising opportunity for the wedding industry, encompassing hotels, standalone venues, and planners. As the Budget 2024 approaches, several key points warrant attention to fully capitalize on it:
GST Inputs on Capital Expenditure, Expenses, and F&B Sales :
Currently, F & B business does not receive input credit towards F & B sales or expenses. If would be highly beneficial if input credit towards F & B sales as well as on expenses – both Opex and Capex in nature are considered for our F & B business
Currently, F&B is charged at 5% GST, while other wedding-related services (venues, planning, decor, etc.) are charged at 18% GST. Standardizing GST at 5% across all services would significantly boost the wedding industry by making it more accessible and affordable for consumers. This would encourage more people to invest in their weddings, driving industry growth. This would also get a lot of unorganised vendors under the ambit of the GST regime
Infrastructure Improvements in Tier 2 & 3 Cities:
Enhancing connectivity via air and road will encourage exploration of these locations, leading to improvements in hotels and venues infrastructure. These cities definitely have untapped potential. Destination weddings reaching Tier 2 & 3 cities will also allow guests to conduct their family weddings at their place of birth (recent example being the Anant Ambani & Radhika Merchant wedding at Jamnagar), which in turn will help growth of local industries
The thriving destination wedding industry necessitates enhanced infrastructure. This includes opening more heritage sites/government-owned sites for empanelment for exclusive F & B catering, thereby positioning India as a premier destination for celebrations. Even global state level events could happen at multiple and culturally rich heritage sites spread across the length and breadth of ‘Incredible India’”
Keyur Shah, CEO – Precious Metals Business, Muthoot Pappachan Group.
“Government should give serious consideration to boost the Indian Gold Recycling Sector in order to reduce India’s over dependence on imports. There is huge stock of unused Gold amongst Indian households that has not yet been successfully tapped in a sustainable manner. Incentivizing Organized Sector Players (for a level playing field in a largely unorganized marketplace), removing Capital Gains Tax at a Consumer level on sale of their old Gold to encourage them to bring it out of the lockers, fixing the long pending executional challenges in the Gold Monetising Scheme and so on, are few steps that should be considered.”
Mr. Vijay Kumar Agarwal, the Founder and CEO of Makoons Group of Schools
The education sector is at a crossroads, waiting for legislative moves to virtually turn the tide as we prepare for subsequent funding. Makoons Group of Schools sees training funding as a strategic imperative for the country’s development, not just an expense. We demand that the government’s main priorities are to expand access to special education, help with creative teaching strategies, and promote virtual literacy in all areas. These programs are critical to equipping our children with the data and competencies needed to thrive in a rapidly changing international economy. Furthermore, incentivizing private sector participation in education infrastructure development and teacher training will be critical steps toward meeting universal education objectives. We look forward to a budget that demonstrates a strong commitment to our country’s future through robust educational reforms and long-term investments.
Mr. Apurv Modi, Managing Director & Co-Founder of ATechnos Group.
“As we approach Budget 2024, we are optimistic about the anticipated reforms and their potential impact on the mar-tech sector. The expected income tax rate cuts and the proposed increase in the income threshold to ₹5 lakh are promising developments. These measures will enhance disposable income, stimulate consumer spending, and drive growth across industries, including mar-tech.
With the Modi Government starting its newly re-elected term, there is considerable anticipation for policies that further technological innovation and digital transformation. We hope to see initiatives that simplify the ease of doing business and support the growth of digital infrastructure. Such steps will create a robust environment for mar-tech companies to innovate and expand, ultimately contributing to the broader digital economy.
Budget 2024 has the potential to be a pivotal moment for the industry, and we look forward to the positive changes it may bring.”
“As an industry leader focusing on the production of large diameter carbon steel pipes for vital energy infrastructure, MAN Industries is eagerly anticipating the upcoming budget’s renewed emphasis on renewable energy. We strongly support policies that promote technological advancements, expand renewable energy projects, and enhance manufacturing capabilities in eco-friendly technologies. A well-structured budget has the potential to attract significant investments in sustainable energy solutions, thereby strengthening India’s pursuit of energy security and environmental sustainability. MAN Industries is fully committed to leveraging our expertise to contribute to these efforts and ensure resilient infrastructure to meet the evolving demands of the renewable energy sector.”
Mr. N.P Ramesh, COO and Co-Founder of Orb Energy
“As we approach the Union Budget, the solar industry eagerly anticipates pivotal measures to accelerate India’s renewable energy goals. Key priorities include enhancing residential solar adoption with proposed personal income tax benefits up to 3 lakhs. This can be considered instead of current subsidy of Rs.78,000. For commercial and industrial (C&I) sectors, increasing depreciation benefits to 60-80% from the current 40% will incentivize substantial investments in solar installations, bolstering sustainability efforts across businesses.
The removal of anti-dumping duties on raw materials for solar modules is crucial to enhancing manufacturing competitiveness and reducing dependency on imports. Additionally, a proposed 7-year tax holiday for investments in PV module or solar cell production will stimulate domestic manufacturing capabilities, fostering job creation and economic growth.
These strategic measures not only strengthen India’s position in renewable energy but also pave the way for a sustainable and resilient energy future. They underscore our commitment to innovation and sustainability, ensuring a greener and more prosperous tomorrow for all.”
Ms. Sanjana Desai , Executive Director, Desai foods Pvt Ltd –
“As the budget announcement approaches, we hope it will boost consumer spending and support rural development, which are critical drivers for the FMCG sector. Reducing input costs and improving logistics infrastructure are essential for reaching our consumers efficiently. Incentives for skill development and job creation, especially in rural areas, will aid growth. New technologies adopted for agricultural processes, testing of raw materials especially the growing of spices without the use of banned pesticides will help our value-added products & the quality we serve our consumers in India & the world. We also look forward to provisions promoting sustainable practices and environmentally friendly initiatives. Support for R&D through tax benefits and grants are crucial for innovation and global competitiveness. We believe that Budget 2024 holds the potential to create a positive trajectory for the FMCG industry especially Indian processed foods and the wider economy.”
Dr. Krishna Veer Singh, Co-Founder & CEO, Lissun
At Lissun, we view the upcoming 2024-25 Union Budget as a crucial opportunity to revolutionize India’s approach to mental health. We expect a significant increase in budget allocation for mental health initiatives, particularly in awareness campaigns, accessibility improvements, and affordability measures.
Our hopes include integrating mental health services into primary healthcare, substantial investments in digital mental health solutions, and incentives for startups innovating in this space. We advocate for measures addressing the shortage of mental health professionals through targeted skill development programs and promotion of tele-mental health services. Policies mandating mental health coverage in insurance plans, increased funding for mental health research, and the establishment of a national mental health database are also key expectations.
We particularly emphasize the need for increased funding to support early diagnosis and intervention programs for children with autism and neurodevelopmental delays. Additionally, we hope the government will expand the number of seats and courses in universities, ensuring the generation of more high-quality therapists to meet the growing demand.
We also anticipate initiatives to integrate mental health education into school curriculums and workplace wellness programs. Prioritizing these aspects in the budget will enable India to make notable strides in building a mentally healthier society, fostering innovation, and improving care delivery across the nation….
Mr.Neeraj Tyagi, Co-Founder & CEO, We Founder Circle
From the over 100 investments we have made in early-stage startups, more than 50 are from tier 2, 3, and 4 cities, and based on our extensive experience of continuously investing in startups from these smaller cities, we recommend several key measures for Budget 2024-25. Primarily, there should be a focus on easing fundraising for startups in these regions, as they often face unique challenges compared to their urban counterparts. Streamlining access to capital will empower these startups to innovate and grow, thereby contributing significantly to local and national economies. Encouraging and incentivizing SEBI funds to invest in startups from smaller cities is another critical step. By providing tax benefits or other incentives to these funds, the government can attract more investment into underserved regions, promoting balanced regional development. Additionally, actively collaborating with local incubators will create robust support systems for startups. These incubators can offer tailored mentorship, networking opportunities, and resources that are crucial for the success of early-stage startups.These initiatives, coupled with the stability and predictability of government policies, will sustain the momentum in India’s vibrant startup ecosystem and push the boundaries of innovation across various sectors including fintech, SaaS, healthcare, education, clean energy, deep-tech research, and robotics.
Kunal Gupta, Head-Dhuri Plant, KRBL
“The upcoming 2024 Budget presents an opportunity for significant support in the agriculture sector. Increased funding for research can deliver improved crop yields and foster innovation in cutting-edge technologies. This, along with flexible export policies and Minimum Support Prices (MSP), can open new markets for Indian farmers and boost exports. However, a balanced approach is needed. While promoting exports and controlling inflation are vital, overdependence on fertilizer subsidies requires a shift towards sustainable practices. Additionally, farmer education, infrastructure upgrades, support for small farmers, and climate change adaptation are crucial for building a truly resilient and prosperous agricultural sector in India.”
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