Various Sectors, Including Healthcare, Infrastructure and Personal Finance, Present Their Wishlist
The forthcoming Budget for the fiscal year 2024-25 is scheduled to be presented on February 1st, with Finance Minister Nirmala Sitharaman at the helm. The Finance Minister faces the delicate task of striking a balance between fiscal prudence and populist measures, navigating the fine line that accommodates both economic imperatives and the expectations of the electorate.
The challenge is to craft a budget that satisfies the economic sensibilities while addressing the aspirations of the voters.
|Expectations and Wish List
|Vineet Agarwal stresses the need for a targeted approach in the interim budget for India’s logistics sector growth. – Emphasizes dual focus on physical and digital infrastructure, incentives for multimodal logistics, and robust skilling initiatives.
|Saurabh Saith urges rationalizing IT slabs to augment disposable income and advocates for a renewed focus on Production-Linked Incentives (PLI) in the food processing sector.
|Global Capability Centers (GCCs)
|Calls for entitlement of GST credit on capital goods and immovable property for GCCs. – Advocates for the removal of credit restrictions on employee-related expenses to alleviate working capital constraints.
|Anticipation for enhancements in basic exemption, standard deduction, and upward revisions in limits for Sections 80C and 80D. – Focus on relief in children’s education, hostel allowances, and bolstered home loan deductions to alleviate financial burdens.
|Emphasizes the crucial role of diagnostics in the healthcare ecosystem. – Calls for a visionary approach to support innovation, enhance accessibility, and uphold the highest standards of diagnostic services.
|Deepak Sharma highlights the importance of expanding Public Private Partnerships (PPPs) to accelerate India’s infrastructure growth. – Calls for a focus on laying the foundation for a new energy landscape. – Emphasizes that continued emphasis on PPPs will play a pivotal role.
|Green Energy (CBG)
|Mahesh Girdhar proposes a grid system for Compressed Biogas (CBG) production and off-take, backed by sustainable incentives. – Advocates for incentivizing green credits for industrial use and implementing taxes for fossil fuel-based molecules. – Emphasizes the importance of carbon credit trading.
|Calls for initiatives in Union Budget 2024-25 to boost the adoption of digital payments, especially in tier 2 and beyond regions. – Suggests policies incentivizing a conducive environment for fintech startups to innovate. – Expects regulatory frameworks to combat digital fraud and establish a safer digital payment environment. – Specifically calls for a standardized Know Your Customer (KYC) framework across all financial services.
“Transformative Measures: Vineet Agarwal Stresses Targeted Approach in Interim Budget for India’s Logistics Sector Growth”
Vineet Agarwal, Managing Director of Transport Corporation of India Ltd., emphasizes the imperative for a targeted approach in the upcoming interim budget to elevate India’s logistics sector. He underscores the need for a dual focus on “constructing both physical and digital infrastructure, providing incentives for multimodal logistics to reduce carbon emissions, and implementing robust skilling initiatives for the 22 million individuals employed in the sector.”
“As we eagerly anticipate the unveiling of the Interim Union Budget, the logistics sector stands on the brink of transformative measures that will propel our trajectory towards a USD 5 trillion economy. This impending budget represents a significant opportunity to reaffirm our dedication to improving the ease of doing business.
While DPIIT’s recognition of India’s encouraging logistics cost is noteworthy, it is imperative to broaden our perspective beyond cost considerations alone. A strategic allocation of resources towards infrastructure, competence, and traceability is indispensable for sustained progress.
Despite India’s commendable 38th position in the World Bank’s Logistics Performance Index, our concentration must deepen on the factors driving performance and productivity. To enhance EXIM trade and bolster competitiveness, we must sustain the momentum in investments and digitalization. Such an approach will facilitate swift progress towards a more resilient and sustainable transport and logistics ecosystem for India,” he states.
Seize the Opportunity: Saurabh Saith Calls for Rationalizing IT Slabs and Emphasizes PLI for FMCG Growth
Saurabh Saith, CEO of Orion India, urges the government to consider rationalizing IT slabs to augment disposable income, thereby providing a boost to consumption. He specifically advocates for a renewed focus on Production-Linked Incentives (PLI) in the food processing sector, asserting that it would encourage companies like Orion India to invest more in capital expenditures and plan greenfield projects.
“I believe that reinstating the government’s emphasis on PLI in the food processing sector is crucial. This initiative will incentivize companies in the food industry, such as ours, to increase capital expenditure and undertake more greenfield projects. It is pivotal for fostering growth and innovation within the FMCG industry,” expresses Saurabh Saith.
He further emphasizes the potential benefits of rationalizing IT slabs to increase disposable income for the vast middle class, fostering higher consumption. “This measure may not only benefit food companies and FMCG but also provide a stimulus to various consumption-led industries. We eagerly anticipate a budget that not only addresses current challenges but also propels the FMCG sector towards sustained growth and facilitates new investments,” he concludes.
“Unlocking Growth: GCCs’ Advantage with GST Credits on Capital Goods and Immovable Property, and Liberated Employee-Related Expense Credits”
Facilitating the entitlement of GST credit pertaining to capital goods and immovable property, coupled with the elimination of credit restrictions on expenses associated with employees, constitutes vital prerequisites for Global Capability Centers (GCCs). The allowance of GST credits on capital goods and immovable property is crucial to optimizing operational efficiency and financial prudence for GCCs. It is imperative to highlight that concerted efforts are currently underway to advocate for the elimination of credit restrictions on employee-related expenses, an issue that is actively being presented to the government.
In line with industry expectations, the removal of credit restrictions on employee-related expenses is a paramount consideration for GCCs, as it holds the potential to significantly alleviate working capital constraints for these entities. This strategic alignment is essential for fostering a conducive business environment and harmonizing with the government’s overarching objective of promoting tax efficiency and facilitating international trade. Deloitte emphasizes the significance of such measures in its articulated expectations, underlining the positive impact they can have on the operational landscape of captive GCCs.
Relief in education, hostel allowances, and boosted home loan deduction:
In the context of the 2024 budget for India, characterized by a global recession and a 6.4% fiscal deficit, the Finance Minister is faced with the imperative of adopting a nuanced approach. Striking a delicate balance between fostering economic growth, addressing tax concerns, and providing relief to citizens is of paramount importance.
While the prospect of introducing a new 25% high-income tax slab appears unlikely, there is a prevailing anticipation for enhancements in the basic exemption, standard deduction, and upward revisions in limits for Sections 80C and 80D. Moreover, an additional focus on providing relief in the areas of children’s education, hostel allowances, and bolstered home loan deductions is deemed essential to alleviate the financial burdens faced by the populace.
“Empowering Healthcare: Advocating for Strategic Investments in Diagnostics in the Upcoming Budget”
In anticipation of the forthcoming budget, the healthcare sector is advocating for a dedicated allocation of resources to fortify infrastructure and technology, particularly within the diagnostic industry. This crucial juncture is perceived as instrumental in shaping the future landscape of healthcare in our nation.
Maneesh Bagai, the Chief Operating Officer at Ampath Labs, emphasizes the significance of this pivotal moment, highlighting the indispensable role of diagnostics in the overall healthcare ecosystem.
The sector envisions a budget that reflects a visionary approach, acknowledging the critical importance of diagnostics. The expectation is for policymakers to accord priority to strategic investments that support innovation, enhance accessibility, and uphold the highest standards of diagnostic services. This collective effort is aimed at ensuring a robust and forward-looking healthcare framework for the nation.
“Deepak Sharma, Schneider Electric’s MD, CEO & Zone President, Drives India’s Infrastructure Growth: A Strategic Outlook on Public Private Partnerships (PPPs)”
Deepak Sharma, Managing Director, CEO & Zone President of Schneider Electric, emphasizes the importance of expanding Public Private Partnerships (PPPs) to accelerate India’s infrastructure growth and ambitions. Against the backdrop of India’s resilient economy, projected to grow at 7.3% in the current financial year, Sharma anticipates initiatives in the upcoming budget that will contribute to the country’s sustainable development. He particularly underscores the need for a focus on laying the foundation for a new energy landscape and highlights that continued emphasis on PPPs will play a pivotal role in achieving these objectives.
“Revolutionizing Green Energy: Mahesh Girdhar, CEO of EverEnviro, Proposes Innovative Grid System for Compressed Biogas Production and Off-take, Backed by Sustainable Incentives”
Mahesh Girdhar, Managing Director and CEO of EverEnviro Resource Management Pvt Ltd, advocates for a framework for a grid system, similar to solar, to facilitate Compressed Biogas (CBG) production in one location and off-take in another. Girdhar believes that such an approach, while maintaining the green properties of the molecule, has the potential to be a game-changer. He suggests incentivizing green credits for industrial use and implementing taxes for those using fossil fuel-based molecules to encourage the widespread adoption of green energy. Girdhar also emphasizes the importance of carbon credit trading and a faster implementation of the Green Credit Programme to attract additional investments and support the development of the CBG sector.
“Empowering Fintech Growth: Unveiling Strategic Initiatives in Union Budget 2024-25 for Accelerating Digital Payments and Strengthening Trust”
In the realm of fintech, a leader calls for initiatives in the Union Budget 2024-25 that focus on boosting the adoption of digital payments, especially in tier 2 and beyond regions. The leader suggests policies that incentivize a conducive environment for fintech startups to innovate and build inclusive products and solutions for consumers and businesses. Additionally, there is an expectation for the introduction of regulatory frameworks to combat digital fraud and establish a safer digital payment environment, thereby reinforcing user trust in digital transactions. The leader specifically calls for the implementation of a standardized Know Your Customer (KYC) framework across all financial services, aiming to enhance efficiency and promote financial inclusion securely.