Tag Union Budget 2024

With the announcement of Budget 2024 now behind us, industry experts are sharing their initial thoughts on the proposed economic measures. This year’s budget has generated a spectrum of reactions from leaders across different sectors, each providing valuable viewpoints on its anticipated effects. In this roundup of expert quotes, we highlight their analyses and predictions, offering a glimpse into how the budget might shape the business landscape and economic outlook for the year ahead.

Viswanath PS, MD & CEO, Randstad India:

“The sharp focus on employment in this year’s budget, particularly through the Employment Linked Incentive Schemes, is a transformative step for job creation in our country. By investing in skilling and bridging the talent demand-supply gap, the budget paves the way for a more robust and future-ready workforce. The provision for internships with top 500 companies, coupled with an internship allowance, will empower our youth with the necessary skills and experience for the ever-evolving job market. Furthermore, the creation of industrial parks in 100 new cities along with the establishment of dormitories and women’s hostels will ensure that companies have access to the right talent, while also enhancing women’s participation in the workforce. The decision to allow companies to use their CSR funds for training and internships is a commendable move, reinforcing the commitment to fostering a skilled and employable generation. All in all, there are a lot of positive takeaways for both employers and the talent community from the announcements made in this budget. It is indeed a significant milestone in driving employment-led growth and shaping a prosperous future for India.”

Anirban Aditya, Chairman, Aditya Group:

“The Union Budget 2024 marking a significant step forward for education and skill development, with Rs 1.48 lakh crore allocated for education and a plan to skill 20 lakh youth over the next five years. Initiatives like financial support for higher education, the e-voucher system, and direct benefit transfers for first-time employees enhance accessibility and formal employment opportunities. The Rs 3 lakh crore allocated for women-led schemes, including hostels for working women, is commendable. With a 30% increase in the budget for education, skilling, and employment, we at Aditya Group with Aditya Group of Schools, are enthusiastic about contributing to this transformative journey.”

Mr. Sanjay Dighe, CEO of Krystal Integrated Limited Services:

“The Union Budget 2024 presented by Finance Minister Nirmala Sitharaman outlines a comprehensive vision for India’s growth, with a strong emphasis on job creation, skill development, and social justice. The government’s focus on employment generation and upskilling initiatives is particularly encouraging for the facility management and staffing sector.

The introduction of three key schemes under the Prime Minister’s package is a significant step towards boosting the job market. The government’s commitment to support 210 lakh first-time employees, incentivize job creation in the manufacturing sector, and reimburse employers for additional hires will undoubtedly stimulate employment opportunities. The plans to upgrade 1,000 Industrial Training Institutes and the new centrally sponsored scheme to skill 20 lakh youth over five years are welcome moves. These initiatives, coupled with the focus on women’s participation in the workforce through working women hostels and specific skilling programs, will foster a more inclusive and skilled labour force. These progressive measures lay a strong foundation for building a more prosperous and skilled India.”

Mahankali Srinivas Rao (MSR), CEO, T-Hub:

“Budget 2024 marks a significant milestone for the Indian startup ecosystem, with initiatives that will undeniably foster innovation and growth. The abolition of the Angel Tax for all classes of investors is a pivotal move that will create a more supportive environment for angel investments, ultimately benefiting startups and paving the way for India to become a global innovation hub. The establishment of a ₹1,000 crore venture capital fund dedicated to boosting the space sector is another forward-thinking initiative. This substantial investment will propel growth in the space economy by supporting innovative startups and groundbreaking research, positioning India at the forefront of space technology and exploration.

Moreover, the introduction of the Anusandhan National Research Fund and a financing pool of ₹1 lakh crore to spur private sector-driven research and innovation is a game-changer. This fund will power basic research and prototype development, driving commercial-scale innovation and enabling startups to bring cutting-edge solutions to the market.

At T-Hub, we are excited about these developments and the positive impact they will have on our vibrant startup ecosystem. These initiatives will provide startups with the necessary resources and support to thrive, innovate, and contribute significantly to India’s economic growth and technological advancement.”

Mr. Niranjan Kirloskar, Managing Director, Fleetguard Filters Private Limited:

The Union Budget presented today aligns well with the Government’s vision of a Viksit Bharat. The budget highlights several positives aimed at boosting economic growth, employment, sustainability, and inclusive development.

Special focus and reiteration of skilling, employment, manufacturing, strong infrastructure development, agriculture, and R&D, among other mentions, should positively reassure companies to focus on investing in all levels of its employees – especially newer ones, and also concentrate on becoming future-proof, by investing in rigorous research and development.

In addition to the above, proposing a climate taxonomy or climate finance to encourage greener businesses and, in turn, create a greener economy in the long run, signifies the important role of Indian companies in the fight against global climate change and aligns with global ESG goals which can make Indian companies attractive for FDI. Overall the government aims to balance economic growth with sustainability and inclusivity ensuring long-term benefits across various sectors.“

Mr. Amar Ambani, Executive Director, YES SECURITIES:

“Barring the capital gains tax dampener for the investor community and removal of indexation benefit, the Union Budget was balanced and consistent in policy. Brushing aside concerns around more populism, the target set for the fiscal deficit at 4.9% is a huge positive. Agriculture package of Rs1.5 lakh crores is along expected lines and will help provide a fillip to the rural economy. The slight relaxation in personal income tax slabs helps on the consumption front as well. There has been a material push in uplifting the financial health and borrowing ability of MSMEs. The capital expenditure outlay of the government of 3.4% as a percentage of GDP is also robust and in line with their policy. Notably, the government is focusing on further digitizing the economy with land and house registry. I sense an even better budget next year, with the finance minister mentioning about a comprehensive review of the Income Tax Act to simplify taxation and reduce disputes, as well as a customs duty rate structure overhaul to correct inverted duty structures.”

Mr. Priyam Patel, MD, NK Proteins Pvt Ltd (Tirupati Edible Oils):

“The Union government has maintained a strong focus on enhancing agricultural productivity and resilience. The substantial allocation of Rs 1.52 lakh crore for agriculture and allied sectors underscores this commitment. Initiatives for self-sufficiency in pulses and oilseeds, particularly groundnut, sesame, and sunflower, are pivotal for Atmanirbharta in the edible oil sector. The emphasis on digital crop surveys and strengthening storage and marketing infrastructure will greatly benefit farmers, ensuring a robust and stable agricultural sector. These measures will significantly support the growth and stability of our industry, fostering sustainable development and economic growth.”

Mr. Priyam Patel, MD, NK Proteins Pvt Ltd (Tirupati Edible Oils):

“The Union government has maintained a strong focus on enhancing agricultural productivity and resilience. The substantial allocation of Rs 1.52 lakh crore for agriculture and allied sectors underscores this commitment. Initiatives for self-sufficiency in pulses and oilseeds, particularly groundnut, sesame, and sunflower, are pivotal for Atmanirbharta in the edible oil sector. The emphasis on digital crop surveys and strengthening storage and marketing infrastructure will greatly benefit farmers, ensuring a robust and stable agricultural sector. These measures will significantly support the growth and stability of our industry, fostering sustainable development and economic growth.”

July 22, 2024 – Finance Minister Nirmala Sitharaman is set to present the  Union Budget 2024 on Tuesday, July 23, 2024. This budget, the first for the newly elected government, comes at a crucial time when India continues to hold its long-term growth promise amidst global uncertainties. Key economic indicators, such as a fiscal deficit target of 5.1% of GDP for FY25 and a robust macroeconomic scenario, position India as one of the fastest-growing large economies.

Key Highlights to Watch For:

Tax Reforms: Taxpayers are eagerly awaiting significant tax reliefs. Expectations are high for a hike in the standard deduction limit and tweaks to the income tax slabs to ease the financial burden on the middle class.

Economic Projections: The budget will likely reaffirm the fiscal deficit target of 5.1% of GDP for FY25, aiming to achieve 4.5% of GDP in FY26.

Current Account Deficit: With crude prices remaining range-bound, the current account deficit is expected to remain around 1% of GDP. Robust services exports might even turn the deficit positive in some quarters.

Inflation Management: While core inflation has come down, food inflation remains elevated. The budget is expected to address measures to control food inflation, with a focus on the impact of climate change on crop yields and input costs for farmers.

Infrastructure and Investment: Anticipate significant announcements in infrastructure development and investment to bolster economic growth and create job opportunities.

Social Welfare and Agricultural Support: Measures to support the agricultural sector and social welfare programs will likely be highlighted, especially considering the uneven weather patterns affecting crop yields.

Finance Minister Sitharaman’s presentation tomorrow will be closely watched for how it balances growth aspirations with fiscal prudence, aiming to sustain India’s economic momentum in a globally uncertain environment.

Rajarshi Bhattacharyya, Co-Founder, Chairman and Managing Director, ProcessIT Global:

“Cybersecurity is one of the biggest risks we face today, and it is crucial to encourage and incentivize both private and public enterprises to invest more in cybersecurity technologies. To achieve this, we need the government to support cybersecurity service providers with accessible loans and tax incentives which will boost overall investment in this critical domain. Additionally, startups and SMEs require assistance in implementing cybersecurity measures and solutions. Government agencies should prioritize investing in digital infrastructure development, focusing on high-speed internet and 5G networks to ensure a secure and resilient digital future. These measures should be a key focus in the upcoming union budget.”

Chetan Jain, Founding Executive Director, and Managing Director, Inspira Enterprise

“As we approach the Union Budget announcement, it is imperative that we focus on fortifying India’s digital infrastructure across critical sectors with increased budgetary allocations, prioritizing cutting-edge technologies and robust infrastructure development. In alignment with the Digital Personal Data Protection Act (DPDPA), this budget should promote the design and implementation of comprehensive cybersecurity programs, reinforcing the legal framework for data privacy. Furthermore, tax incentives for organizations investing in cybersecurity are crucial to strengthening our defense mechanisms. Additionally, significant support is needed to cultivate cybersecurity talent through targeted skill development initiatives. The budget should also enable further impetus with policies that support innovation in Generative AI (GenAI), particularly in transforming the cybersecurity landscape”

Mr. Manikanth Challa, Founder & CEO, Workruit

As the Union Budget 2024 approaches, the recruitment and startup ecosystem eagerly anticipates further advancements in technology and innovation. In recent years, the integration of AI and machine learning has revolutionized the hiring process, making it more efficient, inclusive, and accessible. Our expectations from this budget are centered on continued support for digital infrastructure and technology-driven solutions that can streamline recruitment and foster entrepreneurial growth.

Reflecting on last year’s budget, which laid a solid foundation for digital transformation by allocating funds for AI research and promoting startup ecosystems, we hope this year’s budget will build upon those initiatives. Specifically, we are looking for increased investment in AI research and development, enhancing talent acquisition, and matching candidates with the right opportunities more accurately.

However, it is evident that many colleges and educational institutions are still lacking in technology, infrastructure, and resources. For instance, several institutions struggle with outdated computer labs, limited access to high-speed internet, and insufficient training programs for both students and faculty. These gaps hinder the ability of institutions to adequately prepare students for a tech-driven job market. Last year’s budget did not allocate sufficient funds to address these critical areas, leaving a significant portion of our educational infrastructure under-equipped for the future.

We believe that the upcoming budget should prioritize substantial investments in educational technology and infrastructure. This includes upgrading computer labs, ensuring widespread access to high-speed internet, and providing robust training programs for digital skills. By doing so, we can better prepare our future workforce to meet the demands of a rapidly evolving job market.

Harry Bajaj, Founder and CEO, Mobec

“As we approach the upcoming Union Budget, India’s electric vehicle (EV) sector stands at a pivotal juncture. The sector has grown remarkably over the last year thanks to 100% FDI, new manufacturing hubs, improved charging infrastructure, and advantageous laws and incentives. The government’s proactive stance, particularly through the production-linked incentive (PLI) scheme, has significantly boosted the manufacturing of EVs, components, and batteries.

According to a study by the Centre for Energy Finance (CEEW-CEF), the Indian EV market is poised to become a $206 billion opportunity by 2030. This highlights the importance of continued government support to ensure sustainable and rapid growth. The FAME II scheme was instrumental in setting the foundation for EV adoption in India. With its conclusion in March 2024, the interim EMPS scheme’s reduced subsidies have posed challenges for the industry. As a result, we are looking forward to the introduction of FAME III, which will provide subsidies comparable to FAME II, to revitalise the industry and develop charging infrastructure nationally.

Furthermore, the future budget should prioritize incentivizing firms to use EVs for last-mile delivery operations. Developing robust manufacturing capacity to fulfil expanding demand is equally important. Although progressing, India’s EV ecosystem is still in its early phases and requires a competent workforce for production and after-sales services. Large-scale upskilling and reskilling programs are required to provide the workforce with the skills needed for this changing business. We expect that the budget will include considerable funding for these programs, allowing India to continue to lead in the global transition to clean mobility. The government can help unleash the full potential of the EV industry by supporting innovation and infrastructure development, which drive economic growth and environmental sustainability.

Sustainability must remain at the heart of this growth. By championing EV adoption and bolstering the necessary infrastructure, we not only reduce our carbon footprint but also set the stage for a greener, more sustainable future. The upcoming budget is a critical opportunity to solidify India’s position as a leader in the global transition to clean mobility.”

Prasun Sikdar, MD & CEO, ManipalCigna Health Insurance

“Right to Health is a part and parcel of Right to Life under Indian Constitution. The government has two primary objectives (a) ensure wider access to healthcare services at affordable prices and adequate quality (b) Reduce the out-of- pocket expenditure. Keeping this in mind, the National Health Policy has proposed an increase in public expenditure to 2.5% of GDP by 2025. Despite some progress over the years, India’s healthcare spending is still low compared to the global average, necessitating a substantial boost in healthcare spends. Thus, in the upcoming union budget, we expect the Finance Minister to announce higher allocation of funds for healthcare compared to what was proposed in interim budget to meet the targets of the National Health Policy.

Addressing the second objective, reducing out-of-pocket expenses, is equally critical. Currently, these expenses are still high relative to global standards, indicating a considerable protection gap. Private health insurance is vital in bridging this gap. The insurance regulator, IRDAI has also set a vision of achieving Insurance for All by 2047, marking a century of India’s independence. Thus, our sincere submission to government is to reduce the current 18% GST rate on essential service like Health Insurance. Further, specific segment considerations are also required especially for middle-income and senior citizen segments who are struggling to meet the rising healthcare costs. Lowering the GST burden on the health insurance premiums will be a huge respite for missing middle and senior citizens to get access to quality healthcare they need and help to significantly boost insurance penetration across India by driving affordability.”

Mr. Tarun Chugh, MD & CEO, Bajaj Allianz Life Insurance

Over the past decade, India has achieved remarkable economic growth, with GDP consistently exceeding 6% and surpassing many global economies. As we approach this budget, we anticipate measures that will sustain and simultaneously accelerate this long-term growth, benefiting individuals and businesses alike, with a strong emphasis on job creation. Addressing inflation is crucial for securing a robust financial future for individuals, as it will enable them to have more money in hand, towards savings and investments for their long-term goals and financial security.

With increased earning power and disposable income, Indian citizens will be able to invest in versatile life insurance products for their peace of mind and financial goals. Given the under penetration of life insurance in the country, there is substantial room for sectoral growth.

As an industry, some of our budget expectations from the finance ministry is to consider lower GST on life insurance products. Additionally, in the pension products category, with the objective of securing post-retirement financial needs of the individuals, we urge the government to align life insurance annuity or pension products with the National Pension Scheme (NPS) and allow the similar additional deduction of Rs. 50,000 or more for life insurance annuity or pension products under Income Tax.

We also request the ministry to introduce Long Term Capital Gain taxability for all high value traditional life insurance plans (more than Rs.5 lakhs aggregate annual premium), in line with high value ULIPs. This will bring in uniformity and tax efficiency for insurance customers at par with other similar financial products in the market.

Mr. Praveen Jaipuriar, CEO of Continental Coffee Limited

“In the forthcoming Union Budget 2024, we expect initiatives that will promote sustainable and inclusive growth while tackling inflation in the country. According to a consumer industry analysis report, India is one of the largest retail markets in the world, expected to grow to US$1.41 trillion by 2026. Despite the growing purchasing power in the country, there remains a significant disparity between urban and rural consumption patterns. To address this difference in the FMCG sector, the Government can work towards improving infrastructure, promoting employment generation, and increasing financial inclusion. These efforts will help revitalize the economy.

The FMCG sector anticipates the rationalization of GST. Lowering GST on products like packaged foods would not only make goods more affordable but also boost consumption, leading to higher sales volumes. Additionally, the coffee manufacturing Industry expects the government to help boost consumption by adopting measures like lowering the GST on Instant Coffee, decreasing the import duty on green beans, and last but not least, adopting measures to increase green bean acreage and throughput. These strategies will help to produce more coffee beans, both in quantity and quality, to meet market demand and potentially improve the sustainability and profitability of coffee production,”

Devyani Jaipuria Pro-Vice Chairperson of Delhi Public School

Given the current economic climate and the pressing need for educational reform, we eagerly anticipate the upcoming budget to prioritize substantial increases in funding for education. We urge the government to aim for a significant allocation boost, especially for higher education institutions. Enhancing infrastructure, bolstering research capabilities, and ensuring overall educational quality are pivotal for our nation’s growth trajectory. We hope to see a commitment towards achieving the optimal allocation of 6% of GDP to education, paving the way for transformative reforms and the establishment of new educational institutions, particularly in the K-12 segment.”

Ajay Singh – School Principal – The Scindia School

“Education goes beyond imparting knowledge; it’s about equipping students with the skills needed to excel in an ever-changing world. As we approach the Budget 2024 announcement, we have high hopes for increased funding in the education sector, particularly in areas that foster skill development and innovative learning methods.

We believe that substantial investment in digital infrastructure, vocational training, and teacher development programs will significantly enhance the quality of education. Such initiatives are critical for preparing students to meet the demands of the future job market. Moreover, we support policies that encourage partnerships between educational institutions and industries. These collaborations can provide students with hands-on experience and practical skills that are crucial for their professional success. I am optimistic that the upcoming budget will prioritize education and skill development, ensuring that the students are well-prepared to contribute meaningfully to society and the economy.”

Siddharth Chaturvedi -Director at AISECT

As we approach this year’s budget, it is crucial to prioritize investments in skill development and education. The rapidly evolving job market demands a workforce equipped with contemporary skills and practical knowledge. By allocating substantial resources to vocational training, digital literacy programs, and industry-academia partnerships, we can empower the youth and drive inclusive growth. Key areas of focus should include expanding government-sponsored programs in future skills, increasing opportunities for apprenticeships, and allocating funds for the integration of the National Education Policy (NEP) in Higher Education Institutions (HEI) and expanding vocational education in schools. Additionally, linking entrepreneurship programs with loan facilities, promoting research with government grants and reducing GST on online courses will further strengthen the educational framework.

This budget should highlight an ecosystem where education and skill training go hand in hand ensuring that students are not just degree holders but also industry-ready professionals.

NS Satish, President, Haier Appliances India.

“As the Union Budget approaches, the consumer durables industry is optimistic about increased infrastructure spending and the extension of PLI schemes to boost economic growth. The durables segment is currently under-penetrated, presenting a significant opportunity for demand generation. The industry is also hopeful that the government’s emphasis on ‘Make in India’ and ‘Digital India’ initiatives will align with the growing consumer preference for locally manufactured products. Such focus will not only enhance global competitiveness for Indian players but also significantly boost employment.

At Haier India, we look forward to a budget that creates a stable and growth-oriented environment, facilitating ease of doing business and driving economic activity and demand generation. These measures will provide the much-needed impetus for sustained growth in the consumer durables sector.”

19th July 2024- As the Union Budget approaches, expectations are high across various sectors for significant policy announcements and fiscal measures to drive economic growth. Key areas of focus include infrastructure development, tax reforms, and initiatives to boost digital transformation. Industry leaders are hopeful for increased government spending to enhance job creation and support for startups and small businesses. Additionally, there is a call for streamlined regulations and incentives to attract foreign investment, along with measures to bolster the manufacturing sector under the ‘Make in India’ initiative.

Comments From Industry Experts

Anil Joshi, Managing Partner, Unicorn India Ventures

“The venture capital industry is very young and has certain expectations from the Honourable Financial Minister. Removal of Angel Tax has been a long standing demand of the industry. Stakeholders of the ecosystem have made representation to the Govt with an aim to find a solution for the same. In most cases, the investments at early stages are made to young companies and with limited resources. It becomes tedious and non productive for everyone, more so it also discourages potential investors to invest because of fear of coming under tax authorities scrutiny. It’s a long pending demand and we wish Hon. FM takes it up in the upcoming Budget. The solution will encourage many potential tax payers to open up to the investment of this asset class.

Additionally some of the demands are long pending like favourable consideration to GST on management fee and adjustment of management fee toward expenses while calculating income or gains. The industry also demands in the current budget bringing long term gain at par with listed entities. The VC community would prefer speedier approval on overseas investment as the current process takes too long.”

Manoj Agarwal, Co- founder and Managing Partner, Seafund

“I have high hopes for the upcoming budget to strengthen the deep tech ecosystem in India. The government has made encouraging statements about supporting this sector, and I believe it is crucial to provide more backing at the seed stage. Deep tech startups often require significant research and development, which may not attract early-stage investment from the private sector. A dedicated fund of funds to support investors who are willing to take the plunge into deep tech is vital.

Additionally, simplifying the taxation framework for startups, ESOPs,and investors is essential. In many European countries, investors receive tax benefits for investing in startups, either directly or through funds. Similar provisions in India could stimulate more domestic investment. Moreover, we need to address the issue of ‘reverse flipping’ for businesses built in India but headquartered abroad. Facilitating an efficient and tax-effective way for these businesses to return to India could significantly benefit our economy and the government’s revenue in the long run. As we address these concerns, a simplified GST tax regime for the funds and doing away with angel tax will free up a lot of domestic capital towards early stage funding, which is needed today more than ever as we see funding winter thawing at a snail’s pace.”

Mr Sudeep Chandran, Founder and CEO of YOURS

Real estate is a crucial sector for the economy, and the government should introduce proposals to maintain the current upward trajectory of demand in this sector. Allocating funds for infrastructure development in metros, suburbs, tier II cities, and holiday destinations is essential to drive real estate demand.

Additionally, co-ownership and fractional ownership are becoming increasingly popular in India. The government should implement better rules and regulations, along with incentives, to regulate and promote these innovative property ownership models.

Amit Prakash Singh, Co-Founder & Chief Business Officer, Urban Money

The real estate sector is a cornerstone of our economy, serving as one of the largest employers. We eagerly anticipate significant reforms in the upcoming budget under the new government. Securing industry status will unlock a plethora of legal and administrative benefits, along with much-needed tax incentives. Also, while government’s focus on affordable housing under PMAY is commendable, recalibrating strategies in light of escalating construction costs is imperative for sustained inclusiveness and effectiveness. Moreover, enhanced tax reliefs and increased deductions on home loans, currently capped at INR 2 lakhs, are pivotal in stimulating demand and supporting prospective buyers. With these measures in place, the real estate sector is poised to contribute meaningfully to India’s journey towards a 5 trillion-dollar economy.

Sunny Garg, Co-founder, CRIB

There are various areas that need the finance minister’s consideration, and the Budget presents an opportune moment to make these changes and improvements.

One critical area where startups expect relief is in simplifying the taxation framework for startups, as well as the tax treatment of ESOPs. Removing or rationalizing the angel tax would also help significantly and enhance the availability of funds domestically, which is very crucial for early-stage funding.

In the current funding climate, access to funding has become a major challenge for startups. We expect the Finance Minister to introduce initiatives aimed at enhancing funding sources, whether government-backed or from domestic and foreign venture capitalists.

Furthermore, government support could greatly benefit the sector by reducing corporate tax rates for startups and enhancing the eligibility scope under Section 80-IAC for startups.

Shrinivas Rao, FRICS, CEO, Vestian

“We anticipate a budget that tackles pressing issues, boosts demand, and drives sustainable growth. As per the announcements in the interim budget, it is evident that the government will continue to focus on infrastructure development to make India a USD 5 Tn economy in the upcoming years and turn the country into a ‘Viksit Bharat’ by 2047. To achieve this goal, the real estate sector is likely to play a pivotal role.

After resuming a third term, the government has already announced the construction of 3 crore new units under PMAY. This shows the government’s commitment towards the real estate sector. Demand for residential units is expected to increase further, if the government increases tax exemption limits for home loans in the Union Budget 2024-25. Moreover, granting industry status to the real estate sector would ease availability of funds and increase participation of foreign investors.”

Swati Saxena, Founder & CEO – 4Thoughts Finance

As we approach the 2024 India Budget, we are cautiously optimistic about the potential measures that will be announced. We believe this budget presents a pivotal opportunity to bolster economic growth and investor confidence. We anticipate the government’s focus on stimulating key sectors such as infrastructure, healthcare, and technology, which are critical for long-term sustainable development. An important announcement that we expect is on ESOPs (Employee Stock Ownership Plans). These are employee incentives that companies use to attract, reward, and retain talent. ESOPs also enable employees to become shareholders and benefit from the company’s growth. Most of the new generation companies give part of company stake as ESOPs to senior employees, who work as well as promoters, but end up losing 40% value vis-a-vis promoters who can enjoy long-term capital gains (LTCG) advantage on equity. This situation needs to be rectified to enable them to earn higher margins.

Additionally, the re-investment from sale of startups is exempted from tax only for Rs 10 cr investment in real estate. However, there is a need to encourage startup investments and make the sector more appealing. One way could be to enable re-investment in startups to get a boost through a tax exemption. We also see the automotive industry looking forward to some key measures in the upcoming budget, especially with the Faster Adoption and Manufacturing of Electric Vehicle (FAME). Increased support in R&D of the EV sector can also help boost India as a global leader in EV Technology.

The budget can also ensure greater sync between Dividend Distribution Tax (DDT), which is very high, and Long-Term Capital gains on equity which is very low. All these measures would prove beneficial to the liquidity availability in the economy and ensure its healthy growth.”

Dr Pruthvinath Kancherla, Co-Founder Affordplan

“The disparity in access to quality healthcare between Tier I cities and Tier II & Tier III cities remains a significant challenge. The upcoming budget of 2024 should be poised to eliminate such inequalities. Increased healthcare spending will support infrastructure development, enabling the establishment of new medical facilities and upgrading existing ones. This is expected to improve access to quality healthcare, particularly in rural and underserved areas. Additionally, the emphasis on digital health initiatives through the National Data Governance Policy will enhance the efficiency and accessibility of healthcare services. This digital transformation is anticipated to streamline patient care and administrative processes, reducing costs and improving outcomes.

The healthcare budget should be set at a minimum of 4%-5% of GDP to ensure adequate funding for a comprehensive range of healthcare services. This allocation is crucial for supporting essential healthcare infrastructure, medical personnel training, the availability of medicines, and the implementation of advanced medical technologies.

The 2024 Union Budget is expected to support further preventive healthcare measures such as expanded vaccination programs, public health campaigns for non-communicable diseases, investment in digital health tools, and enhanced nutrition and wellness programs.

These measures combined are expected to create a more powerful and equitable healthcare system, benefiting both providers and patients”

Manas Mehrotra, Founder, 315Work Avenue

The country is seeing a new office culture given the change in work patterns across the world and new preferences of the workforce. Understandably, the coworking industry has become more relevant than ever with the demand surging significantly in the recent times owing to its affordable pricing options and flexible work culture. Large enterprises too have shifted gears to coworking space as they embraced the hybrid work model to suit their organizational requirements. India continues to be the fastest growing flex office market in the APAC region and is set to account for one-fifth of the office market by 2030. Taking into consideration the popularity of hybrid working, we have a few expectations around GST and taxation from the upcoming Union Budget that can further accelerate growth of this sector.

In recent years, the entrepreneurial landscape has undergone a significant change and coworking spaces have emerged as a transformative force in India’s startup ecosystem. Some of the measures that we could look forward to include lower GST rate for small-scale coworking clients. This will significantly help the coworking industry boost their footprints by attracting small start-ups to be part of the industry as well as increase the revenue collection to the government. The salary upper limit of 25k could be enhanced to 40k and timeline from 3 yrs to 5 yrs to enable start-ups/coworking entities to enjoy the benefit of sec 80JJAA as these industries are generating a greater volume of employment. Input tax credit under GST is an important issue that concerns coworking sector. We expect the budget would enable coworking firms to claim input credit on work contract and construction services supplied so that it is passed on to companies who lease out space for coworking and thereby reduce their overall costs.

There are few other aspects that needs attention. Typically stamp and registration duties are high and since both the landlord as well as client agreements are subject to these charges, hence, either concession in such stamp duty rates or allowing twice the duty paid as expenditure under income tax will encourage even the small agreements to get registered. An important requirement for the coworking industry has been Lower/Concessional rate of TDS which will improve the working capital. Another measure that could be announced to intensify growth of the coworking sector is a further and continued extension of tax holiday for start-ups as they would be motivated to scale up their business and enhance investment.

We also believe that a significant push to infrastructure and single-window clearance system will help in faster establishment of coworking spaces in non-metro cities as well. Overall, the coworking sector, is expecting continued improvement in the ease of doing business which will play an important role in the growth of coworking industry in the near future. Going forward, we hope that the government looks at addressing regulatory concerns and encouraging more coworking firms to open-up through a series of both financial and non-financial incentives and ensure faster economic growth. As we move forward, the demand for coworking spaces is only set to witness greater traction from companies across segments.

Syed Sultan Ahmed, Founder and Chief Learner, LXL Ideas

To fully realize the transformative potential of technology in education, as envisioned in National Education Policy (NEP) 2020 and National Curriculum Framework (NCF), the government must take urgent steps to reduce the high GST burden on computers, edtech services, and innovative learning tools. Computers which are a basic requirement in education attract a GST of 18%. Edtech service providers also pay 18% GST. We need to energise our education system by bringing in new age learning tools like film, gaming, robotics etc into schools. All these segments attract a GST of 18% even if they are B2B models selling/delivering in school, thereby making it too expensive for schools to try out new methodologies in teaching and learning. These exorbitant taxes are significantly hindering schools from adopting essential digital infrastructure and pedagogical innovations. By creating a more favorable fiscal environment, the government can accelerate the integration of technology into classrooms, enhancing both the quality and accessibility of education.

Furthermore, India’s growth as a research hub and innovative destination depends on preparing its young population for global competition through language proficiency and international certifications. This calls for investment in language training programs, skill development initiatives, and global partnerships. In a world where borders are becoming increasingly permeable due to technological advancements, it is important that we also do the same with our minds. Additionally, reducing the cost of technology in education will make it more accessible to students from all socioeconomic backgrounds, fostering greater equity and inclusion.

Dr. Chandrika Kambam, Founder and Managing Director, Anastomos

“Healthcare is a rapidly growing sector in the country but needs attention from the government to ensure access to all sections of society. The healthtech sector in particular would benefit greatly from this focus as it is an emerging segment that will redefine healthcare delivery. As we look forward to the upcoming Union Budget, it is critical that we also focus on the professional development and growth of healthcare personnel in India as this would have a widespread positive impact on the healthcare sector. We expect a generous financial allocation and investment in bridging gaps that exist in the education, career growth, and upskilling of healthcare professionals. The budget could also propose investment in the establishment of a ‘Clinical Governance System’ that assists in the development of clinical protocols, monitoring of their implementation and outcome and the standardization of care delivery that helps in cost control. Policies that empower the diverse community of the healthtech sector — from students to seasoned practitioners—to enhance their professional prospects and growth through technology-enabled, personalized support in healthcare and its related sectors would be welcome.

There is also an urgent need for a supportive regulatory framework for healthcare startups that encourages innovation while ensuring compliance. Tax incentives, grants, and dedicated incubation centers to foster growth within the healthtech ecosystem would enhance its growth in the larger healthcare sector. Additionally, the upcoming union budget presents a significant opportunity for the government to support the growth of startups driven by women entrepreneurs, especially in the healthtech sector. They can be empowered through targeted financial assistance, mentorship programs, and subsidy initiatives. Lastly, robust investments in cybersecurity infrastructure and regulations are essential to protect sensitive health data. Integrating healthtech solutions with government schemes like Ayushman Bharat would also enhance efficiency and expand access to quality healthcare across India.”

Ms. Sulajja Firodia Motwani, Founder and CEO of Kinetic Green

“The Government of India (GoI) has provided commendable support to kick-start the Electric Vehicle (EV) revolution in the past five years. However, to meet the ambitious target of increasing EV penetration from the current 6% to 30% by 2030, substantial additional measures are required.

We are anticipating the announcement of FAME 3 in the upcoming Budget to sustain and accelerate EV demand, especially since the current scheme is set to end on July 31. The industry urgently calls for the continuation of the FAME scheme with a clear roadmap for the next 3 to 5 years. This continuity is crucial for maintaining the momentum of investments and efforts towards EV adoption.

Furthermore, we request support for the development of charging infrastructure in key corridors of 10-15 major cities and surrounding highways. This will be pivotal in promoting the use of electric four-wheelers (e4W) and commercial vehicles (CVs) across India.

In addition, GST reforms has been an ask from the EV sector, specifically reduction of GST on lithium-ion batteries to 5% (from current rate of 18%) and the lowering of GST on EV charging services to 5%. These changes will significantly enhance the affordability and overall ownership experience of EVs for customers.

The combined impact of these measures will be instrumental in achieving the critical mass necessary for meeting the GoI’s 2030 EV target of 30 % EV and creating a sustainable EV ecosystem in India.”

Mr Shaji Varghese, CEO – Muthoot FinCorp Limited.

“We hope to see new initiatives for enhancing access to credit among MSMEs especially in the rural areas in this upcoming budget. More liquidity assistance to NBFCs, and credit guarantee to MSME lending can help enhance supply of credit . We anticipate continued budget allocations towards digital initiatives and technologies. Financial inclusion is a significant enabler for Viksit Bharat 2047 and while NBFCs are focused on the same, we expect the government to take some measures to increase credit supply there by enabling the SMEs and rural business development, thus contributing to nation’s growth.”

Sameer Gandotra, Founder & CEO, Frendy

“The upcoming budget is going to be crucial to brace the momentum of consumption, especially in rural areas. The government should certainly double down on their agricultural and rural development initiatives, which inevitably would boost income levels and consumer spending.I hope we get more clarity on the formulation of the National Retail Policy, which in my opinion would be a game-changer! Affordable and low interest credit, stability of tax rates (GST) for staples and push for digitisation, is what the Indian retail space needs to continue the consumption wave.”

Mr. Anand Nichani, Managing Director, Magniflex India

“India is the second most sleep-deprived country after Japan. Indian doctors and health practitioners are increasingly concerned about the implications of sleep deprivation, especially for the youth in our developing nation. To address this, we believe mattresses should be classified as medical products and included in the health and wellness sector. Providing subsidies and reducing the GST from 18% on sleep-essential products will enable many Indians to invest in quality mattresses, which have been proven by doctors to improve sleep and overall health. As the government begins its third consecutive term, we look forward to progressive, industry-centric schemes that will encourage the growth of small and mid-sized businesses in the healthcare and wellness segment.”

Rajiv Agrawal, Founder Partner, Saarathi Realtors

“Slum rehabilitation is a complex process that requires expert intervention for faster, simpler solutions. As we aim for ‘housing for all,’ we must prioritize the needs of the half of our city’s population living in slums. As an expert in slum redevelopment solutions, we urge the government to establish a system to facilitate quicker approvals, allow private entities for grievance redressal and evacuation of slums ensuring that slum dwellers get rehabilitated sooner, which will free up land parcels for newer infra projects in Mumbai with increasing population of city. Our solutions for slum redevelopment will help both State and Central Governments to provide housing to all,”

Aryaman Tandon, Managing Partner, Technology at Praxis Global Alliance

The shift towards AI and Deep Tech solutions is no longer a futuristic vision but an imperative reality. The impact of AI and Deep Tech extends beyond just technological advancements, it is transforming industries and revolutionizing work, changing the way businesses operate. It is poised to have a major impact on companies by reducing their average lifespan with accelerated rate of innovation making older companies obsolete and is also anticipated to cause a substantial job churn of around 24% across various industries, highlighting the underlying potential which they possess.

Manas Mehrotra, Founder, 315Work Avenue

The country is seeing a new office culture given the change in work patterns across the world and new preferences of the workforce. Understandably, the coworking industry has become more relevant than ever with the demand surging significantly in the recent times owing to its affordable pricing options and flexible work culture. Large enterprises too have shifted gears to coworking space as they embraced the hybrid work model to suit their organizational requirements. India continues to be the fastest growing flex office market in the APAC region and is set to account for one-fifth of the office market by 2030. Taking into consideration the popularity of hybrid working, we have a few expectations around GST and taxation from the upcoming Union Budget that can further accelerate growth of this sector.

In recent years, the entrepreneurial landscape has undergone a significant change and coworking spaces have emerged as a transformative force in India’s startup ecosystem. Some of the measures that we could look forward to include lower GST rate for small-scale coworking clients. This will significantly help the coworking industry boost their footprints by attracting small start-ups to be part of the industry as well as increase the revenue collection to the government. The salary upper limit of 25k could be enhanced to 40k and timeline from 3 yrs to 5 yrs to enable start-ups/coworking entities to enjoy the benefit of sec 80JJAA as these industries are generating a greater volume of employment. Input tax credit under GST is an important issue that concerns coworking sector. We expect the budget would enable coworking firms to claim input credit on work contract and construction services supplied so that it is passed on to companies who lease out space for coworking and thereby reduce their overall costs.

There are few other aspects that needs attention. Typically stamp and registration duties are high and since both the landlord as well as client agreements are subject to these charges, hence, either concession in such stamp duty rates or allowing twice the duty paid as expenditure under income tax will encourage even the small agreements to get registered. An important requirement for the coworking industry has been Lower/Concessional rate of TDS which will improve the working capital. Another measure that could be announced to intensify growth of the coworking sector is a further and continued extension of tax holiday for start-ups as they would be motivated to scale up their business and enhance investment.

We also believe that a significant push to infrastructure and single-window clearance system will help in faster establishment of coworking spaces in non-metro cities as well. Overall, the coworking sector, is expecting continued improvement in the ease of doing business which will play an important role in the growth of coworking industry in the near future. Going forward, we hope that the government looks at addressing regulatory concerns and encouraging more coworking firms to open-up through a series of both financial and non-financial incentives and ensure faster economic growth. As we move forward, the demand for coworking spaces is only set to witness greater traction from companies across segments.

As we approach the Union Budget 2024, there is great anticipation regarding the government’s commitment to advancing clean mobility and sustainability in Indian Railways. In FY24, the overall rail market stood at ~US$ 31 billion, with rail logistics and transportation contributing ~US$ 22 billion and ~US$ 9 billion, respectively. In FY24, e-rail accounted for 66% of the total railway market and is expected to reach 85% penetration by FY30, valuing at ~US$ 49 billion out of an expected total railway market of ~US$ 58 billion. This robust growth trajectory underscores the critical role of green initiatives.

Budget allocations for Indian Railways have consistently increased, from US$ 19 billion in FY20 to US$ 29 billion in FY24, reflecting a compound annual growth rate (CAGR) of 12%. This growth, driven by the expansion of dedicated freight corridors (DFCs), high-speed rail (HSR) networks, and other infrastructural advancements, aligns with the objectives of the National Rail Plan.

Electrification remains a cornerstone of the sustainability strategy, with 96% of the route kilometres (RKM) already electrified and 21 states achieving complete electrification. Achieving 100% electrification in the upcoming Union Budget is imperative, along with expanding solar power initiatives and developing hydrogen and biofuel trains.

The upcoming budget is poised to be a pivotal moment for Indian Railways’ journey towards sustainability. With the right investments and initiatives, we can achieve substantial reductions in greenhouse gas emissions, energy consumption, and pollution levels, setting a benchmark for global rail systems.

Gurugram, India, 16th July 2024 – Over the last 2-3 years, the real estate sector has seen robust growth across various asset classes led by strong demand and a favourable economic environment. With the full-fledged Union Budget for 2024 just round the corner, the real estate sector is eagerly waiting for policy measures that could determine the sector’s trajectory and the likely outcome for the next few years. Indian real estate has continued to remain upbeat during the first half of 2024 across all asset classes, a reflection of prevailing optimism in domestic markets. Office and residential sector witnessed steady growth, while institutional investments remained sturdy asserting positive business sentiments. Office leasing activity in H1 2024 across the six major markets of the country has already almost touched 30 msf, almost 20% higher than the corresponding period in 2023. Stable interest rates, moderate inflation levels and strong high-frequency economic indicators further supported demand growth across key real estate verticals.

Delivering on the expectations of stakeholders, the Union Budget 2024 has the potential to become a defining moment and can play a crucial role in the sector reaching USD 1 trillion by 2030. Stakeholders’ expectations for Union Budget 2024 are across diverse aspects, and encompass focussed announcements on housing, infrastructure, sustainability, affordability & liquidity enhancement, taxation reforms and regulatory simplification.

“The upcoming Union Budget 2024, under the newly elected government, is set to focus heavily on infrastructure development, a critical aspect for the real estate sector. With real estate sector expected to contribute 13-15% of the Indian GDP by 2030, stakeholders are hopeful for grant of ‘infrastructure’ status, a long-standing demand. This could significantly ease access to institutional credit and reduce borrowing costs for developers, fostering growth and investments. Additionally, standardisation in definition of affordable housing can improve consistency in financing criterion across institutions and potentially simplify access to credit for interested homebuyers within the segment.”, said Badal Yagnik, Chief Executive Officer, Colliers India.

Housing sector expected to remain at the forefront during Union Budget 2024

The momentum in residential real estate across major cities has been on the upswing for the last few years. Homebuyers and developers expect further impetus from the government in the upcoming budget. Targeted measures can buoy homebuyer sentiment, providing a demand-side boost and simultaneously alleviate pressing developer concerns, providing a supply-side boost.

Homebuyers’ wish list for budget include:

• Separate & higher deduction for housing loan principal repayment (upto INR 500,000), currently capped at INR 150,000 under section 80C.
• Limit on tax deduction on interest paid should be increased from the current INR 2 lakhs to about INR 4-5 lakhs in case of self-occupied property.
• Extension of tax benefits under 80EEA which was applicable for loans (first time homebuyers in affordable housing segment) availed till March 2022 and increasing the current capping of INR 150,000.
• Standardisation and rationalisation in “Affordable Housing” definition across government schemes and financial institutions can help eligible homebuyers qualify for availing lucrative financing options in the particular category.
• Tax exemption on rental income to boost housing demand especially amongst investors.

Developers expect tax rationalisation and incentives for green buildings:

• GST reduction on key raw materials such as cement, steel and aluminium will help in controlling project costs.
• Re-introduction of Input Tax Credit (ITC) for under construction properties
• 100% tax holiday for affordable housing projects under Section 80IBA can be re-introduced.
• Increased fund allotment through SWAMIH fund for improving liquidity in stressed residential projects.
• Extension of PMAY timelines beyond December 2024 encouraging greater developer participation in affordable housing segment
•  For increased emphasis on sustainable development, tax holiday can be provided for green buildings. Incentivisation of green buildings through minimum alternate tax or tax breaks similar to infrastructure sector will be particularly beneficial.
•  For development of senior living facilities, provision of tax-based incentives, relaxation in development charges and other supportive policy measures will provide a thrust to developers and institutional investors to increasingly foray in the segment.

Industrial segment expects supportive government policies and concessional tax rates

Stakeholders expect supportive government policies and higher allocation in infrastructure expenditure to provide a thrust to the industrial and warehousing segment. With government’s continued focus on development of multi-modal logistics parks and logistics corridor, clear governance mechanisms and an enabling environment would be pivotal for successful implementation and timely completion of logistics infrastructure. Improved and effective logistics network can be critical in demand growth for warehousing spaces, particularly in tier I & tier II cities. MSMEs also expect rationalization of GST in the initial years of establishment, subsidized loans and reduction in income-tax slabs. Further, there could be an increase in allocation of funds towards upskilling and vocational training in manufacturing sector which will spur growth in the sector. Key expectations include:

• Rationalization of import-export tariffs expediting India’s integration into global supply chain.
• Rationalization of GST for MSMEs in the initial years of establishment
• Extension of concessional corporate tax rate of 15% for manufacturing start-up companies, which expired on March 31, 2024 to boost manufacturing in the country and support the Make-In-India initiative.

“Infrastructure has consistently been at the core of the budget and this is reflected in the invariable increase in outlay every year. Increased allocations towards infrastructure for increasing connectivity through roads, rail, ports and airports under the aegis of flagship schemes such as National Logistics Policy (NLP) and PM Gati Shakti, are likely to drive significant real estate growth in smaller cities. Moreover, clear governance mechanisms and an enabling environment would be pivotal for successful implementation and timely completion of logistics infrastructure. The overall emphasis on infrastructure can unlock the potential of tier II and III cities, fostering economic growth and urban expansion,” said Vimal Nadar, Senior Director, Research, Colliers India.

Increased budgetary considerations for a sustainable future

Sustainability and green initiatives are becoming increasingly important worldwide, and India’s real estate sector is following suit. Promoting investment in green bonds and renewable energy can help India achieve net-zero emissions by 2070 and meet sourcing 50% of energy needs from renewable sources by 2030. The government can consider incentivising users to replace grey hydrogen with green hydrogen, providing incentives for R&D particularly with respect to energy storage and transmission. Other key expectations include:

•  Incentivising investment in green bonds and renewable energy business
• Extended subsidies for EVs under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme, including light to heavy commercial vehicles.
• Production-linked incentives for companies involved in EV charging stations and battery manufacturing. Viability gap funding for startups in battery swapping and on-demand battery technologies.

Enhancing ease of doing business in real estate

The upcoming budget should focus on enhancing the ease of doing business by further reducing compliance burdens. Simplifying the tax and regulatory framework for private equity players, venture capitalists, and start-ups will also help foster a healthy business environment. Key expectations include:

• Reducing excess compliance and adopting a single-window clearance mechanism for new businesses
• Expediting the digitization of land records, especially for industrial and commercial use

Keeping global uncertainties and financial volatilities in mind, overarching measures towards rationalization of taxes and increasing disposable income can be particularly well received. Expectations include measures aimed at easing the tax burden on individuals, possibly through revised income tax slabs, increased deduction limits, or other progressive reforms. Moreover, simplification of capital gains tax regime can also be a welcome move. Further, investments made in REITs can get tax exemption which can provide a thrust to retail investors.

In conclusion, the upcoming budget can build upon the groundwork that has been in progress for the last few years and take actionable measures towards the next phase of economic growth. Infrastructure, construction, and real estate, by virtue of the ripple effect, will continue to support India’s journey in becoming the third largest economy by 2030.

15/07/2024- As India prepares for the upcoming Union Budget 2024, set to be presented by Finance Minister Nirmala Sitharaman in the Lok Sabha on July 23, industry leaders, economists, and policymakers are sharing their insights and expectations. This highly anticipated budget has sectors across the board hopeful for beneficial outcomes. Pre-budget expectations are pouring in, with various industries outlining their demands and aspirations. Stakeholders are keenly watching to see how the budget will address key economic challenges, stimulate growth, and support sustainable development. As the budget unfolds, the nation anticipates strategic measures that will drive progress and prosperity in the financial year 2024-25.

Comments By Industry Leaders:

Akshat Seth, Managing Director & CEO at HIL Ltd.

“The Government, in recent years, has strongly focused on an investment-led growth strategy, resulting in the development of quality infrastructure in the country. In the budget for 2023-24, the capital expenditure outlay of Rs. 10 lakh crore was nearly three times the outlay in 2019-20. Despite fiscal challenges, the Government has remained committed to infrastructure spending, allocating ₹11.1 lakh crore in the Interim Budget for 2024-25, up 11% from the previous year. This continued focus on infrastructure and productivity-oriented capacity has had a significant multiplier effect on economic growth and employment generation. Considering the success of recent years, we expect the Government to sustain the push towards investments in housing, highways, and rail corridors. This will augment long-term income growth and sustain demand for home and building materials in the country and also promote innovation in the industry. We strongly believe this will catalyze advancements in construction materials, sustainable practices, and employment generation.”

Devyani Jaipuria, Pro– Vice Chairperson- DPS International Gurugram, DPS Sector 45 Gurugram & DPS Jaipur.

“Given the current economic climate and the urgent need for educational reform, we eagerly anticipate the upcoming budget to prioritize substantial increases in funding for education. We strongly advocate for the government to aim for a significant allocation boost, particularly for higher education institutions. Enhancing infrastructure, bolstering research capabilities, and ensuring overall educational quality are critical for our nation’s growth trajectory. We hope to see a commitment towards achieving an adequate allocation of GDP to education, paving the way for transformative reforms and the establishment of new educational institutions, especially in the K-12 segment.”

Khadim Batti, Co-Founder & CEO, Whatfix:

“India’s booming SaaS industry, fueled by the startup ecosystem, is a key driver of digitalization and has high expectations from the upcoming Union Budget 2024. Streamlining regulations, tax benefits for early-stage companies, and easier access to capital are anticipated by the industry. Robust digital infrastructure with high-speed internet and data centers are also critical for SaaS operations, and continued investment is essential to bolster the ecosystem.

Beyond infrastructure, talent acquisition and development are paramount. The budget should prioritize the expansion of the angel tax to foreign investors, as foreign investment is a significant driver of growth and innovation. We also expect revision in the ESOP taxation structure to reduce the burden on employees who exercise stock options, thereby attracting and retaining top talent. Additionally, aligning Long-Term Capital Gains (LTCG) tax treatment for unlisted companies (including both ESOPs and equity investments) with that of public companies would also incentivize greater investment in startups.

A significantly larger dedicated fund specifically for AI and other frontier technologies is critical. This ecosystem holds the key to propelling India towards its aspired $7 trillion economy by 2030. Incentives for adopting advanced technologies like AI and IoT are also advocated for, as they are vital for boosting efficiency and global competitiveness.

Skilling the workforce remains a top priority. The current gap in qualified AI professionals necessitates government initiatives to bridge the tech skill gap and encourage industry-academia collaboration. Prioritizing AI research empowers youth for a productive future in the 21st-century economy. Further investment in Skill India Digital can enhance workforce capabilities, fostering innovation in emerging technology and keeping India competitive globally.

I am confident that India can lead the global digital economy by fostering a robust digital ecosystem, enhancing the ease of doing business, and promoting continuous learning and innovation. By addressing these expectations, the budget can empower the Indian SaaS industry to become a global leader in innovation and solidify India’s position as a digital frontrunner.”