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Budget 2024 Expectations: Diverse Voices Echoing Hopes Across Sectors

24th January 2024, 04:44:52 PM IST

As the anticipation builds for the unveiling of Budget 2024, voices from various sectors echo their expectations, providing a glimpse into the diverse hopes that shape India’s economic landscape. Here’s a snapshot of key insights from industry leaders and experts:

1. Insurance Sector Calls for GST Revision:
Rakesh Goyal, MD of Probus Insurance Broker, advocates for a reduction in the Goods and Services Tax (GST) on insurance products. The current 18% GST rate is considered high, and the industry looks forward to a more consumer-friendly revision. Goyal emphasizes the need for greater flexibility in health insurance deductions and specific deductions within Section 80C, paving the way for a favorable environment for both insurers and policyholders.

2. Boosting Education Loans for Overseas Studies:
Rohit Sethi, Director at ESS Global, anticipates an increase in the maximum loan amount available for studying abroad. The move aims to support students opting for programs with high tuition costs or in expensive locations. Sethi highlights the potential inclusion of subsidized interest rates to make education loans more accessible, with the decision influenced by the government’s priorities and overall budgetary considerations.

3. Fiscal Consolidation and Infrastructure Focus:
Deepak Agrawal, CIO Debt at Kotak Mutual Fund, expects the government to adhere to its fiscal consolidation glide path. With a predicted fiscal deficit to GDP ratio for FY25 in the range of 5.3% to 5.5%, Agrawal emphasizes the continued focus on capital expenditure. He also anticipates borrowing requirements to be met with flows from the J P Morgan Emerging Market Bond Index, starting from June 2024.

4. Empowering Fintech and Digital Lending:
Ranjan Kumar, Head of Accounts & Finance at RupeeRedee, highlights the importance of facilitating easier and more cost-effective credit access for fintech players. The sector seeks adjustments, including more flexible Loan-to-Value (LTV) ratios, tax breaks, and a framework for data sharing. These measures are seen as crucial for stimulating growth in the fintech industry and fostering innovation.

5. Startup Ecosystem and Access to Capital:
Yogesh Gupta, Chief Business Officer at Bimaplan, anticipates policies attracting both domestic and foreign capital to foster growth in the startup ecosystem. The wishlist includes tax credits for early-stage startups, addressing concerns like angel tax, and substantial changes in medical insurance premiums for a more affordable and accessible healthcare landscape.

6. Digital Lending Sector’s Key Role:
Roshan Shah, Co-Founder & CEO of VoloFin, emphasizes Budget 2024 as crucial for unlocking the full potential of the digital lending industry. The sector looks forward to policies promoting responsible lending practices, enhancing data security, and ensuring equitable access to credit, positioning it as a dynamic force in driving economic resilience.

7. Focus on Women Empowerment:
Ramneek Singh Ghotra, Chief Growth Officer at Finvasia Group, calls for improved access to capital for women. The expectations include a robust focus on skill development, rural entrepreneurship, and measures to strengthen social security, accessible healthcare, and financial inclusion for women.

8. Healthcare Infrastructure in Rural Areas:
Barkha Amin, Trustee at Bhailal Amin General Hospital, Vadodara, stresses the need for allocating 3% of GDP towards uplifting the medical and healthcare ecosystem, especially in rural areas. The expectations also include a reduction in custom duties on imported medical devices to 2.5% to encourage technology-led hospitals.

9. Privatisation of PSU Banks and MSME Sector Support:
Jyoti Prakash Gadia, Managing Director at Resurgent India, advocates for privatisation of select PSU banks and fiscal support for the MSME sector. The MSME sector expects cheaper finance, support in supply chain management, and expansion of the One District One Product (ODOP) plan for national-level incentives.

10. Revamping Public Transport Infrastructure:
Manish Rathi, Co-Founder and CEO of IntrCity SmartBus, calls for a budgetary framework to develop centralized bus terminals on national highways. The proposal aims to enhance essential public transport infrastructure, creating convenient boarding points and facilitating the shift from private cars to public transport.

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Budget 2024: Sectoral Expectations and Key Insights

As India eagerly awaits the unveiling of Budget 2024, various sectors are on the edge of their seats, anticipating Finance Minister Nirmala Sitharaman’s announcements that will sculpt the economic landscape for the upcoming fiscal year. From agriculture, infrastructure, and healthcare to education, finance, and manufacturing, each sector carries its unique set of expectations, hopeful for allocations and reforms that will fuel growth, innovation, and societal well-being.

Roadmap for Growth and Inclusion:
Nilesh Shah, Managing Director of Kotak Mahindra AMC, emphasized the need for a growth-centric Vote on Account. Shah urged for investments in crucial areas such as road, railway, water, renewable energy, digital education, and healthcare. Proposing funding through asset monetization and divestment, he stressed the importance of unlocking savings invested in gold to enhance internal resources and reduce dependence on global capital.

Startup Ecosystem Optimism:
Dhiresh Bansal, CFO of Meesho, expressed optimism about the government’s commitment to fortifying India’s startup ecosystem in Budget 2024. Acknowledging the pivotal role startups play in India’s journey towards a 5 trillion-dollar economy, Meesho highlighted the necessity of sustained government support. Emphasizing the importance of venture capital and angel investment, Bansal advocated for simplified tax compliance processes and reduced tax rates, particularly during startups’ initial operational years.

IT Sector’s Digital Aspirations:
Amit Prasad, Founder and CEO of SatNav, shed light on the IT sector’s expectations, anticipating a focus on digital infrastructure investments, support for research, skill enhancement, and nurturing innovation hubs. The sector looks forward to increased funding for cybersecurity, advancements in technologies like AI, IoT, and 5G, as well as favorable regulations for startups. Amit Prasad urged the government to incentivize educational institutions to diversify their programs to meet the evolving needs of the IT industry.

Data Protection and Digital Economy:
Amit Relan, Co-Founder and CEO of mFilterIt, emphasized the need for a cohesive policy framework to protect user privacy and stimulate innovation in the digital economy. With the introduction of the data protection bill, the sector anticipates regulations aligning with global standards. Additionally, focus on emerging technologies like AI is expected, positioning India as a hub for digital advancements.

Healthcare Revolution:
Saurav Kasera, Co-Founder of Clirnet, highlighted the potential for the Union Budget to revolutionize healthcare accessibility in remote areas. Advocating for incentives to make healthcare training affordable, he proposed measures like special GST categories for healthcare education and deductions in direct taxes for training expenses. Increased budget allocations for digital health infrastructure and telemedicine were also emphasized.

Mental Health in Focus:
Ritu Mehrotra, Founder & CEO of United We Care, stressed the importance of mental well-being in the upcoming budget. Recognizing mental health as a societal and economic necessity, Mehrotra called for prioritizing mental wellness by offering mental health insurance. Leveraging generative AI tools, she highlighted the potential to make mental health accessible to everyone.

Climate Change and Nature-Based Solutions:
Shailendra Singh Rao, Founder & MD of Creduce, expressed hope for continued focus on climate change with an emphasis on nature-based solutions. Anticipating job creation opportunities, technological advancements, and encouragement for the sector, Singh Rao emphasized the importance of balancing economic growth with environmental sustainability.

Sustainable Mobility Initiatives:
Greg Moran, CEO and Co-Founder of Zoomcar, looked forward to innovative policies that accelerate sustainable mobility solutions. He anticipated Budget 2024 to drive economic resilience through cost-effective solutions and mobility apps, reinforcing India’s commitment to green and smart choices.

Startup Ecosystem Empowerment:
Sourabh Deorah, CEO & Co-founder of Advantage Club, anticipated strategic investments and policy reform incentives to empower the startup sector. Favorable tax structures, access to funding, and strengthened digital infrastructure were highlighted as key elements to foster a thriving ecosystem for startups.

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