As the Union Budget 2024 approaches, anticipation is mounting across various sectors of the Indian economy. This pivotal financial blueprint, set against a backdrop of global economic fluctuations and domestic aspirations for growth, holds the promise of addressing key challenges and unlocking new opportunities. The budget will not only outline the government’s fiscal strategy but also set the tone for India's economic trajectory in the coming year.
In light of this, we have gathered insights from industry experts across diverse sectors to share their pre-budget expectations and recommendations.
These perspectives aim to provide a comprehensive understanding of the critical areas that need attention and the potential measures that could drive sustainable growth and development.
Experts from sectors highlighting their priorities and the policy interventions they believe are crucial for fostering resilience and innovation.
Sandeep Chachra, Executive Director, ActionAid Association
Coming after a long and closely fought General Election, which has seen the NDA Government come back to power for the third time, the 2024 Budget to be presented on 23 July 2024 is an important opportunity to focus on the well-being of marginalised communities. As the first budget of the new Government, there is a great opportunity to lay down pathways for long term initiatives that strengthen both urban and rural economies.
In rural economies, there needs to be provision for ensuring sustainable livelihoods for farmers and agricultural workers through investment in rural infrastructure, agriculture and sustainable farming practices. There is a need to re-vitalize efforts for the equitable distribution of land, and paramount is the need to empower women farmers and women-led agricultural enterprises. We also need budgetary allocations for promoting climate-resilient agriculture. We hope for initiatives that promote digital literacy, provide access to technology and facilitate e-governance in rural areas.
At the same time, sustainable infrastructure development is also required in urban centres, with employment generation and social welfare. We hope for budgetary provisions to strengthen and expand social security measures for vulnerable communities, including health insurance and pension schemes, as well as enhancing the quality of education both in cities and villages, with a specific focus on skill development programmes that empower youth for employment and entrepreneurship.
Furthermore, there is a need to focus on job creation in both rural and urban India by enhancing rural employment guarantees and initiating similar schemes in urban areas to advance the right to work. ActionAid Association’s People’s Agenda Campaign, which promotes social justice, inclusion, and the rights of diverse marginalised communities, emphasises the necessity of specific provisions to address the unique needs of De-Notified Tribal Communities, ensuring their inclusion in these employment initiatives.
As change-makers, we also advocate for ensuring accessible and quality healthcare services for all, no matter where they live. Prioritising investments in urban infrastructure, skill development and digital literacy will empower communities, foster economic growth and enhance the overall quality of life in urban areas.
We urge the Finance Ministry to align budgetary allocation with the principles of justice, equality and non-discrimination, including addressing systemic issues that perpetuate poverty and patriarchy. We advocate for a participatory and consultative approach in the budgetary process, ensuring that the voices of marginalised communities are heard.
Vinesh Menon, CEO, AMPERSAND Group & Co-Chair Person CII
The Indian K-12 school education sector needs an urgent lifeline to meet the expectations of over 250 million school-going children. The interim budget in February 2024 for education was disappointingly lower than initially planned, with the allocation for school education at ₹72,000 crore, marking a growth of less than 1% from 2023-24 to 2024-25. This figure remains well below the 1964 Kothari Commission recommendation of 6% of GDP.
My dream budget for school education would introduce disruptive policy changes to create an equitable balance between private and public schools. Genuine private school operators should be allowed better structures and flexibility to start more schools. Additionally, investments must focus on innovation and technology to deliver education to remote areas where physical infrastructure is lacking. Currently, salaries consume nearly 85% of government spending on schools, leaving little room for transformative expenditures.
Initiatives like DIKSHA should be enhanced through public-private partnership (PPP) models, and programs like SWAYAM and SWAYAM Prabha must be revisited for better learning experiences. While the PM SHRI schools initiative is commendable, its numbers may fall short unless the process is refined for more productive budget utilization.
Other areas, such as GST, should be re-evaluated and removed from the education delivery value chain. As a young nation, the platform we provide for educating our children and youth will determine the country's future. I sincerely hope Budget 2024-25 will catalyze transformative changes in school education.
Aryan Suri, Director - Sales Operation, Space Creattors Heights
As the budget draws near, the co-working space sector is optimistic about reforms that can bolster the real estate market and support the growing demand for flexible workspaces. In the post-pandemic world, co-working spaces have become crucial for businesses seeking adaptable and cost-effective office solutions. We hope the budget will introduce incentives for real estate developers to invest in and expand co-working infrastructures. This includes potential tax benefits, subsidies for green building initiatives, and simplified regulatory frameworks. Such measures will not only enhance the growth of co-working spaces but also stimulate the overall real estate market by attracting diverse business tenants. Furthermore, encouraging co-working spaces in tier 2 and 3 cities can drive regional development and reduce urban congestion. We are eager for a budget that recognizes the evolving dynamics of work and supports innovative real estate solutions that align with modern business needs.
Sridhar Samudrala, Founder, Hecta
As we look forward to the Union Budget 2024-25, there are several critical areas that need attention to enhance the real estate sector's efficiency and transparency. Allocating more funds for the technology infrastructure of the registration and stamps departments is imperative. Buyers are currently paying 6% to 11% in stamp duty, and they should at least have seamless online access to verify past ownership records, encumbrances, circle rates, prohibited areas, and other pertinent details.
Additionally, introducing tax incentives for properties purchased from the non-performing assets (NPAs) of banks would greatly benefit buyers. When buying from a bank, transactions are conducted through banking channels with tax-paid amounts, and registration is done for the sale price paid to the bank. This differs significantly from secondary purchases, where a substantial black money element often exists. Special tax deductions should also be considered for entities that assist banks in liquidating real estate against non-performing assets. These measures would not only improve transparency and accountability but also stimulate growth and investment in the real estate sector."
By implementing these initiatives, we can drive significant positive change in the real estate market, fostering a more transparent, efficient, and investor-friendly environment."
Kaushal Mehta, Managing Director, Walplast
"As we approach Union Budget 2024-25, it is imperative to continue bolstering the construction and infrastructure sectors, which are pivotal for India's economic growth. Under the leadership of Hon'ble PM Shri Narendra Modi, we anticipate strategic initiatives that will bolster the accessibility and affordability of building materials, streamline regulatory framework, and incentivize sustainable practices. Investment in smart infrastructure and innovative construction technologies will be crucial in addressing urbanization challenges and improving the quality of life for millenials. By fostering a robust infrastructure ecosystem, the government can not only stimulate economic activity but also pave the way for India to emerge as a global leader in sustainable and resilient construction practices."
Mrinaal Mittal, Director, Unity Group
"As we approach the budget, the real estate sector eagerly anticipates reforms that can drive growth and address current challenges. In FY 2023, the real estate market contributed approximately 7% to India's GDP, with projections indicating this could reach 13% by 2025. However, to achieve this growth, the industry requires significant support. We urge the government to consider tax relief for both homebuyers and developers, which could invigorate the market and spur investment. Currently, the housing shortage in urban areas stands at around 10 million units. By introducing incentives for affordable housing, the government can help bridge this gap. Furthermore, easing liquidity issues for developers through financial support and policy simplifications can accelerate project completions. Real estate is a critical driver of economic stability, and with the right measures in the budget, it can significantly contribute to India's post-pandemic recovery and long-term prosperity."
Roshan Singh Bisht, Co- Founder & CEO, Asort.com
As we anticipate the 2024 Union Budget, we look forward to Modi 3.0 continuing to support the growth of the e-commerce industry. The previous terms have seen significant strides in digital infrastructure and ease of doing business, and we hope this budget further accelerates these initiatives. By focusing on improving logistics, fostering innovation, and providing incentives for technology adoption, the government can enhance the competitiveness of Indian e-commerce on a global scale. Additionally, policies that support small and medium-sized enterprises (SMEs) and promote digital literacy will be crucial in driving inclusive growth and ensuring that the benefits of e-commerce reach every corner of the nation. We are optimistic that the upcoming budget will lay a robust foundation for a thriving digital economy."
Piyush Gupta, CEO, VOSMOS
"As India moves forward under Modi 3.0, our economy demonstrates remarkable resilience amidst global challenges. While addressing inflationary pressures, our strong fundamentals endure, and we adapt with agility. We foresee substantial growth opportunities and a landscape ripe for innovation.In the forthcoming fiscal year, we anticipate steady economic expansion propelled by technological advancements, heightened consumer spending, and strategic investments across pivotal sectors. Mindful of potential challenges, our outlook remains optimistic as we harness emerging prospects to foster sustainable growth."
Asutosh Katyal, CTO and Executive Director, Capacit'e Infraprojects Limited
"As we step into the third term of the Modi administration, the real estate sector anticipates a transformative Union Budget 2024-25. This budget presents a unique opportunity to bolster housing and infrastructure development. We expect policies that enhance affordability, streamline regulations, and offer tax incentives to stimulate investment in both residential and commercial projects. The government's continued focus on urban renewal, smart cities, and sustainable development will be crucial in driving growth. Additionally, addressing the challenges of land acquisition and financing will further strengthen the sector's foundation. A progressive budget will not only invigorate real estate but also significantly contribute to India's overall economic growth and resilience."
Harsh Pandey, Managing Director, Takumi International
"The recent economic reforms have positioned India as the fastest-growing economy among G20 nations, with an impressive growth rate of 7.3% in FY22 and 7.2% in FY23. However, the global recession has begun to impact our job market, particularly in the corporate and manufacturing sectors, as offshore business has reduced by at least 50%. As the world's 5th largest economy, and with expectations to become the 3rd largest by 2027, India's rapid growth is driven by domestic demand, a thriving service sector, and a growing middle class. For Budget 2024, we anticipate relief measures for the middle class and significant support for farmers and SMEs, crucial for sustaining our economic momentum."
Dr. Vandana Singh, director global corporate key account management, Saudia Cargo
As the upcoming budget approaches, the aviation industry anticipates crucial reforms to support its post-pandemic recovery and long-term growth. Key expectations include the rationalisation of the tax structure, particularly by bringing aviation turbine fuel (ATF) under the GST to reduce operational costs. Investment in airport infrastructure, especially in tier-2 and tier-3 cities, is essential to enhance connectivity and stimulate regional economic development. Additionally, increased funding for skill development programs will ensure a steady supply of qualified professionals, crucial for the industry's growth. Streamlined regulations to improve the ease of doing business and financial incentives to foster innovation are also critical. A forward-thinking budget with these strategic interventions will significantly bolster the aviation sector's resilience, driving its recovery and future success as a vital component of the economy.