In her Interim Budget 2024 speech, Finance Minister Sitharaman highlighted the Indian economy’s transformation, focusing on women, youth, the poor, and farmers. The government lifted 25 crore people out of poverty in a decade, provided free food to 80 crores through various schemes, and facilitated Direct Benefit Transfers of ₹34 lakh crore via PM Jan Dhan Yojana, saving ₹2.7 lakh crore. Key initiatives included support for artisans and street vendors, upskilling 1.4 crore youth, empowering rural women with financial schemes, and expanding healthcare coverage. Economic measures encompassed infrastructure development, housing subsidies, agricultural advancements, and renewable energy initiatives. The budget prioritized fiscal consolidation and capital expenditure at ₹11.11 lakh crore while maintaining tax rates. Plans for achieving Net Zero by 2070 included offshore wind energy and e-vehicle sector expansions. Borrowing targets for 2024-25 have been set at ₹14.13 lakh crore gross and ₹11.75 lakh crore net.
With the Union Budget 24-25 set to be presented by FM Sitharaman on July 23, 2024, expectations are that the government will continue reforms and investments to sustain economic momentum and enhance governance efficiency with better and more inclusive tax reforms and taxpayer services. We hope the budget reflects a comprehensive approach towards economic resilience and inclusive development across various sectors to propel India towards sustainable growth.
Industry Speaks: Budget 2024 Expectations Highlights
Union Budget 2024-25: Focus on Employment, Infrastructure, and Innovation with Upskilling, SME Support, and Fintech Growth
Gaurav Jalan, Founder & CEO, mPokket
“Following from the Interim Budget earlier this year and the challenges of the economy in the recent past, the upcoming full budget is expected to focus on employment, infrastructure and innovation. We expect the government to double down on initiatives relating to upskilling of youth to improve employability. Alongside this, increasing jobs is expected to be the core government agenda. We expect this to be through a dual approach of easing credit access to small and medium businesses to catalyse their growth and through incentives on research and investments from the private sector. We expect the government to also focus on the disposable income of the middle class by revisiting direct taxation rates. This shall drive a sustained domestic consumption-led growth for the economy. Additionally, we believe the government shall continue to view positively the contribution of fintech as a key driver of easy access to credit and their potential to create employment. We therefore expect a favourable approach to investments in the sector and clarity on the open regulatory discussions to propel India towards becoming a global fintech hub.”
Union Budget 2024-25: Enhance National Cybersecurity with Funding, Incident Reporting, and Startup Collaboration Initiatives
Ritesh Kumar, Founder & CEO, Cyfirma
“I am looking forward to seeing how the upcoming budget addresses the nation’s urgent cybersecurity needs amidst rapid digital transformation. India needs significant investment in building a national cybersecurity framework for enterprises, SMEs and startups to ensure all businesses have access to essential resources and guidelines. Supporting this, there is a critical need for adequate funding for a robust incident reporting policy, as that would facilitate timely and transparent reporting of cyber incidents, allowing minimising the damage and help in building a resilient cybersecurity infrastructure. For all these, the budget should include co-innovation funding for cybersecurity startups that would facilitate the development of new security solutions. By doing so, India can accelerate the development and deployment of advanced cybersecurity technologies. It is crucial that the government take initiatives to integrate cybersecurity startups into federal and enterprise sectors. As collaborating with the government and cybersecurity firms can help these startups scale their solutions, offering larger entities innovative and agile security approaches. These collaborations can combine expertise and resources to advance cybersecurity measures and bolster defence against cyber threats. And finally, the Budget should prioritise funding framework and guidelines to address the AI’s cybersecurity challenges while fostering innovation”
Union Budget 2024-25: Strengthen Cybersecurity with Funding, Education, and Innovations for Critical Infrastructure Protection
Pankit Desai, CEO & Co-Founder, Sequretek
“Emphasis should be on enhancing national cybersecurity infrastructure by providing dedicated funding for both government and private sector to prevent data breaches and cyberattacks, especially in critical areas such as banking, energy, healthcare, and transportation. This involves investing in cybersecurity education at universities and technical institutions and providing training and certifications courses at subsidised rate to ensure continuous skill development and a robust pipeline of cybersecurity professionals. Investments should also go to protecting critical infrastructure with advanced threat detection and response systems to build resilience and recovery plans to quickly restore services in the event of a cyberattack. For this it is necessary to encourage cybersecurity innovations by providing financial incentives and establishing incubation centres to support growth of new cybersecurity businesses. Along with this, funds should be deployed to raise awareness about cybersecurity practices among businesses and the general public through workshops and seminars in collaboration with industry experts”.
Union Budget 2024-25: Accelerate EV Delivery with Policy Continuity, Lower GST, and Robust Charging Infrastructure
Akash Gupta, Co-Founder & CEO, Zypp Electric
“To achieve net-zero carbon emissions, the government must focus on maintaining policy continuity. Inclusion in the priority lending scheme and reducing GST for EV services from 18% to 5% will accelerate EV-led delivery adoption. Recognizing last-mile delivery as a distinct sector under logistics policies is essential, given that one-third of shipments fall within this category. Establishing industry standards, supporting gig delivery partners with tailored schemes, and implementing standard operating procedures (SOPs) will enhance efficiency and foster growth in this vital but often overlooked segment of the logistics industry. An extension of the existing EMPS scheme will result in better stakeholder sentiment and investor confidence. With increased government support in driving localization to cut down costs, infrastructural advancements in terms of establishing a robust charging infrastructure, which will further aid in boosting customer awareness, and focusing on job creation will foster strong collaborations and necessitate substantive developments for the EV sector.”
Union Budget 2024-25: Boost EV Adoption with PLI Schemes, Tax Reforms, and Expanded Charging Infrastructure
Niranjan Nayak, Managing Director, Delta Electronics India
“As we look forward to the Union Budget 2024, our expectations focus on the critical need for transformative reforms in the auto sector, specifically aimed at fostering a green and sustainable energy segment. With a firm commitment to reducing pollution and addressing climate change, we anticipate the government will align its policies with the net-zero goal and sustainable development.
The implementation of PLI schemes specifically for EV charging companies is crucial. Expanding EV infrastructure is essential for promoting widespread EV adoption in India, and financial incentives will significantly boost the growth of our charging network. We also hope for tax reforms that support our industry and encourage consumers to transition to electric vehicles. Developing a robust EV charging ecosystem, particularly in Tier II and Tier III cities, is vital. Prioritizing open data standards and APIs for charging networks will ensure interoperability and enhance user experience. At Delta Electronics India, we are dedicated to contributing to this transformative journey by providing innovative, reliable, and efficient charging solutions. With supportive budget measures, we can strengthen our charging capacity more accessible for all, paving the way for a sustainable future.”
Union Budget 2024-25: Priority Status, Incentives, and Funding Boost for Waste Management Sector
Sandeep Patel, Founder and CEO, Nepra Resource Management
“The waste management and recycling sector is critical for India’s sustainable growth trajectory. We anticipate the Union Budget 2024 will accord it the requisite priority by classifying it as a priority sector, allowing CSR investments in waste management PPPs infrastructure creation, and enhancing credit accessibility through robust debt guarantees. To stimulate and incentivise private investment, the introduction of outcome-linked tax incentives, including the promotion of Extended Producer Responsibility (EPR) and sustainability bonds, is crucial. Further, establishing a dedicated platform on the Social Stock Exchange for waste management and recycling initiatives can unlock significant capital. These measures, coupled with a dedicated Viability Gap Funding, will catalyze the sector’s growth, create a circular economy, and address India’s pressing waste management challenges.”
Union Budget 2024-25: Boosting Solar Industry with Tax Benefits and Manufacturing Incentives
N.P Ramesh, COO and Co-Founder, Orb Energy
“As we approach the Union Budget, the solar industry eagerly anticipates pivotal measures to accelerate India’s renewable energy goals. Key priorities include enhancing residential solar adoption with proposed personal income tax benefits up to 3 lakhs. This can be considered instead of current subsidy of Rs.78,000. For commercial and industrial (C&I) sectors, increasing depreciation benefits to 60-80% from the current 40% will incentivize substantial investments in solar installations, bolstering sustainability efforts across businesses.
The removal of anti-dumping duties on raw materials for solar modules is crucial to enhancing manufacturing competitiveness and reducing dependency on imports. Additionally, a proposed 7-year tax holiday for investments in PV module or solar cell production will stimulate domestic manufacturing capabilities, fostering job creation and economic growth. These strategic measures not only strengthen India’s position in renewable energy but also pave the way for a sustainable and resilient energy future. They underscore our commitment to innovation and sustainability, ensuring a greener and more prosperous tomorrow for all.”
Union Budget 2024-25: Prioritize Sustainable Growth with Green Investments
Dr Miniya Chatterji, Founding Director, Anant School for Climate Action, and CEO, Sustain Labs Paris
“In the Union Budget 2024, it would be important to prioritize initiatives that drive sustainable growth. Investments should focus on renewable energy projects, green infrastructure, and sustainable agriculture. Another good move could be a reduction in the GST levied on renewable energy components. Additionally, provisions should be made to promote skilling and innovation in the field of sustainability”.
Union Budget 2024-25: Boost EV Sector with Subsidies, Incentives, and Investment for Sustainable Mobility in India
Hyder Khan, Director & CEO, Godawari Motors
“With the Central & State government’s strong push towards a greener future, we have high expectations from the upcoming budget for the EV sector, particularly for those who believe in the ‘Make in India’ model. As we approach the 2024 budget, the electric vehicle industry stands at a pivotal juncture. We are looking for continued support and substantial policy enhancements to accelerate the transition to sustainable transportation.
We urge the government to consider increased subsidies for electric two-wheelers and three-wheelers, as well as incentives for domestic manufacturing and R&D initiatives. Additionally, investments in charging infrastructure and battery technology will be crucial to overcome existing barriers to widespread EV adoption. Our vision is to make clean and affordable mobility accessible to every citizen, and with the right fiscal measures, we can make significant strides toward achieving this goal. We are hopeful that the upcoming budget will reflect a strong commitment to fostering innovation and growth within the EV sector, ultimately contributing to a greener and more sustainable future for India.”
Union Budget 2024-25: Strengthen Financial Inclusion with Enhanced Imperatives and Incentives for Banks and Tech Ecosystem
Ramki Gaddipati, CEO APAC and Global CTO & Co-Founder, Zeta
“India already boasts of some of the most impressive Digital Public Infrastructure (DPI) and payment rails today including ground-breaking new protocols such as Credit Line on UPI. As a provider of next-generation banking solutions to large financial institutions, we hope that the Union Budget 24-25 will introduce further imperatives and incentives for banks and the associated technology ecosystem to create even more financial inclusion for the underserved Indians.”
Union Budget 2024-25: Propel Viksit Bharat Vision with Tech Adoption, R&D, and Skilling for Global Leadership
Aalok Kumar, Corporate Officer & Sr. VP-Head of Global Smart City Business, NEC Corporation, and President & CEO, NEC Corporation India
“Earlier this year, the GoI presented an interim budget that reinforced its vision for ‘Viksit Bharat’ by 2047 – to accelerate India into a developed nation and foster inclusive economic participation among all citizens. As we await the full budget, we expect clear and decisive provisions to advance this vision, with technology at the heart of this transformation. We are optimistic that this Union Budget will prioritize the adoption of digital technologies across critical sectors, particularly in governance, to create a more inclusive, efficient, and participative framework. While technology continues to drive India’s socio-economic progress, the key lies in building the nation into the knowledge capital of the world through enhanced R&D and innovation efforts. This will require continued and rigorous investments into the nation’s talent-pool through concerted training, skilling, and upskilling endeavours. At NEC India, we remain committed to supporting this mission by partnering with our partner ecosystem and the public sector. Together, we aim to propel India’s journey towards global leadership, leveraging innovations in line with our focus – ‘In India, for India and From India, For Global’.”
Union Budget 2024-25: Strengthen Waste Management and Circular Economy with Enhanced Infrastructure and Streamlined Supply Chains
Sachin Sharma, Founder and Director, GEM Enviro Management Limited
“Building on the momentum of last year’s budget, which prioritized green growth, the upcoming Union Budget presents a significant opportunity to further strengthen India’s waste management infrastructure. However, significant challenges remain. Inadequate waste collection infrastructure and inefficient sorting and recycling systems continue to hinder progress. Valuable materials are still being discarded in landfills instead of being diverted for reuse.
To truly advance India’s circular economy goals, the government must encourage and support waste management agencies that are diligently working in this field. Additionally, streamlining the supply chain for e-waste and plastic waste is essential. This will foster a robust ecosystem where manufacturers, industry players, and recyclers can collaborate more effectively. While Extended Producer Responsibility (EPR) and the Waste Management Rules of 2016 have had a positive impact, more impactful compliance is needed to achieve truly meaningful results.”
Union Budget 2024-25: Boost the Electronics Industry with PLI Support, Export Enhancements, and Infrastructure Investments
Ashok Rajpal, Managing Director, Ambrane India
“For the Union Budget 2024-25, there is a strong sense of optimism within the electronics industry. The Government’s Production-Linked Incentive (PLI) schemes have already demonstrated their potential, driving remarkable growth, attracting investments, and enhancing our manufacturing capabilities. We anticipate continued support in the upcoming budget. To elevate our industry to global standards, it is imperative to enhance support for exporting ‘Made in India’ products. As the budget approaches, we look forward to policies that reinforce domestic manufacturing, foster innovation, and enhance our global competitiveness. Sustained backing for the ‘Make in India’ initiative remains crucial to our trajectory.
Critical investments in infrastructure and technology will be pivotal for the growth of the electronics manufacturing sector. Tax incentives and streamlined regulatory processes are essential for sustaining sectoral health. Emphasizing self-reliance in advanced technologies will further bolster local manufacturing efforts. We await the budget with optimism, expecting policies that strengthen our foundation for growth, innovation, and sustainable practices in electronics manufacturing.”
Union Budget 2024-25: Address MSME Late Payments with Holistic Solutions and MSME Data Stack to Enhance Cash Flow
Winny Patro, CEO and Co-Founder, Recordent India
“In the age of data and technology solving many problems for businesses, MSMEs are still struggling with delayed payments and are caught up in a vicious cycle of cash flow problems. An SME entrepreneur spends more time dealing with late payments than growing his business. Introduction of section 43B(H) had an impact around the end of financial year 2024 closing and will again only impact late payers during FY closings. Access to working capital and MSMEs samadhan filing, addresses the cash flow at the far end of the problem. There is a need to address the problem holistically like how the banking industry got better with timely payments due to credit bureaus. MSME data stack could be one of the solutions to reduce credit risk and avoid late payments. In addition to this, benchmarking payment terms based on sectors and nature of products/services could be another solution. Hoping that the upcoming budget gives importance to solve this massive problem of ₹10 lakh+ crore late payments stuck in the MSME sector in India”.
