Logistics industry is expecting steps that will further improve ease of doing business in the country, incentives and benefits for green initiatives in the sector, among others, in the Union Budget for 2024-25.
“There is significant scope to improve the ease of doing business by streamlining regulations and adopting digital processes. Simplifying and ensuring consistency in GST administration, greater clarity and standardisation in interpretation of customs procedures, and TDS regulations are crucial steps in this direction,” said R S Subramanian, Senior Vice President & Managing Director, DHL Express India.
The finance ministry in the forthcoming Union Budget needs to double the loan limit to Rs 20 lakh under the MUDRA Yojana, and expand the credit guarantee cover for unsecured loans for MSMEs from Rs 2 crore to Rs 5 crore.
MSMEs also want incentives from the government to help them sell products globally.
On expectations from the Budget, Navin Saini, chief business officer (Retail & MSME), Arka Fincap said the government will continue its agenda to provide a strong foundation for MSMEs, bolstering their growth.
Former finance minister Yashwant Sinha has said that the Union Budget should focus on taming inflation and accelerating economic growth.
Sinha emphasised that GDP should grow at 8 per cent to eradicate poverty in the country.
“Budget should talk about addressing the issues of inflation and accelerating growth,” said Sinha who was finance minister in the Vajpayee government.
With India looking to embrace artificial intelligence rapidly, cybersecurity players expect that the upcoming Union Budget will include measures to boost safety of the country’s digital space through further allocation of funds and incentives.
Innefu Labs, CEO and Co-founder Tarun Wig said the global focus on AI presents a critical juncture for India.
“The AI and ML (machine learning) models can be trained to identify and prevent ‘zero-day’ attacks. But this will require support from the government (in) nurturing and retaining top cyber talent, and empowering companies to invest in training AI models for cybersecurity,” Wig said.
Chatter on the Street is that excise duty or NCCD duty on cigarettes and other tobacco products could rise. For the alcohol segment, a more standardized tax structure across states, coupled with investments in responsible consumption initiatives, could unlock the sector’s full potential, said Tushar Bhandari, Associated Alcohols and Breweries. Read full report here
Ahead of the Budget, experts from the healthcare sector have emphasised the need for increased government spending, improved infrastructure, and enhanced innovation to build a robust healthcare system in India.
Apart from that, the Indian healthcare industry holds greater expectations from the Budget, right from affordability and accessibility to quality enhancements and more research and development.
Delhi Finance Minister Atishi has demanded Rs 10,000 crore from the Centre for infrastructure development, claiming the city government got nothing in return over the past year despite its income tax contribution of Rs 2 lakh crore.
Delhi also provided Rs 25,000 crore as central GST to the pool of taxes, the minister said during a press conference here.
Ahead of the presentation of the Centre’s annual budget, Atishi batted for release of more money to Delhi, saying it could be spent on infrastructure development in road, transport and power sectors as well as to beautify the city.
With Finance Minister Nirmala Sitharaman gearing up to present the first Budget of the Modi 3.0 government, industry players expect that the government would come out with proposals to boost the rural economy and earmark adequate funds for agri-infrastructure development.
The government has a capital expenditure target of Rs 11.1 lakh crore in the Interim Budget Estimate (IBE), said Ashish Modani, Icra’s senior vice president and co-group head – corporate ratings.
He said against the embedded growth target of 17.1 percent for FY2025 (over the preceding fiscal), the government’s capital expenditure declined by 14.4 percent on a year-over-year basis to Rs 1.4 lakh crore in April-May FY25 amid a volatile monthly trend.
“Further, the capex numbers are typically low in the monsoon months, thereby suggesting that the required monthly run-rate in the second half of FY2025 would be quite sharp to achieve the IBE for the fiscal. Consequently, ICRA believes that the government is likely to retain its capital expenditure target of Rs 11.1 trillion for FY2025,” Modani said.
Days ahead of the presentation of the Union Budget, the Congress on Friday alleged that it would be aimed at making a few crony capitalists richer rather than addressing concerns such as unemployment, rising inequalities and “drying up” of FDI.
Congress spokesperson Supriya Shrinate also alleged that this government has nothing to do with common people, farmers, youth, women and middle class, and claimed that the upcoming budget, like in the past years of the Modi government, is being prepared to build more monopolies in various sectors.
Disability rights activists expect a substantial financial support in the upcoming budget to address the needs of persons with disabilities to ensure their development.
Arman Ali, executive director of the National Centre for Promotion of Employment for Disabled People, stressed the need for earmarking budgets under central and state schemes across different ministries to ensure targeted funding for disability inclusion.
This, he believes, would address the diverse needs of persons with disabilities and ensure adequate support across multiple sectors.
Ali also highlighted the urgent need for allocations to improve accessible infrastructure, including community hospitals, primary health centres, district hospitals, and sub-district hospitals.
Individual taxpayers are primarily requesting a revision of income tax slab rates and an increase in Section 80C tax deduction benefits, which currently allow a Rs 1.5 lakh reduction in taxable income for specific investments and expenditures. The limit, last reviewed in 2014 by the NDA government, has not been changed since, leading to widespread anticipation of an increase this year.
Investors in FMCG companies have faced challenges due to food inflation, poor monsoons, and stagnant wages impacting rural demand. However, a shift in government focus towards the rural sector in the upcoming Budget, with increased social sector spending and welfare schemes, is expected to boost rural consumption. This could significantly benefit FMCG companies, particularly large-cap consumer staples and those expanding their geographical reach.
India’s economy is expanding at the fastest rate among major emerging economies, and tax receipts are higher, factors that could prompt Finance Minister Nirmala Sitharaman to increase spending in the new 2024/25 budget that will be presented to parliament on July 23. Read the report here.