As India prepares for Budget 2024, leaders from various industries are sharing their hopes for policies that could significantly reshape the country's economic landscape. Here’s a look at the expectations from different sectors:
Financial Sector: A Call for Fairness
In the financial sector, there’s a strong push to address disparities and improve efficiency. Akshay Sarma, CFO of Axio, highlights key areas needing attention:
- Tax Disparities: Resolve the different tax treatments between banks and NBFCs.
- TDS Exemption: Exempt NBFCs from TDS under section 194A to ease liquidity.
- Amalgamation and Demerger: Allow NBFCs to carry forward accrued losses, just like banks can under section 72A.
- ESOP Taxation: Simplify tax collection on ESOPs at the point of share sale to reduce the cash flow burden on employees.
- Digital NBFCs: Introduce tax reliefs and incentives to boost innovation in digital NBFCs.
Real Estate Sector: Seeking Industry Status
The real estate sector, a major contributor to GDP and employment, is looking for substantial support. Ashish Puravankara, MD of Puravankara Limited, outlines their needs:
- Industry Status: Grant industry status to unlock funding and boost mid-income and affordable housing.
- Tax Rebates: Provide income tax rebates on housing loans to support home buyers amidst rising salaries and interest rates.
Technology Sector: Developing Innovation and Skills
The technology sector is a key driver of India’s economic transformation. Sachin Alug, CEO of NLB Services, emphasizes the need for:
- Royalty Payments: Clear guidelines for royalty payments to attract investment.
- New Technologies: Policies promoting the adoption of cutting-edge technologies.
- Digital Infrastructure: Investment in broadband connectivity and advanced data centers for smart cities and e-governance.
- Skill Development: Clear definitions for online gaming and initiatives to boost digital payments and AI research.
Education Sector: Innovation and Accessibility
The education sector seeks reforms to make learning more accessible and future-ready. Abhimanyu Saxena, Co-Founder of InterviewBit and Scaler, highlights:
- Rural Internet: Invest in rural internet infrastructure.
- GST Reduction: Lower GST on online education to make learning more affordable.
- AI in Education: Government support for AI-powered learning tools and teacher training programs.
- Creativity Labs: Allocate budget for creativity and innovation labs in schools and colleges.
Startups and Social Entrepreneurship: Sustained Support
The startup ecosystem, especially in the social impact sector, looks for continued support. Vipul Nath Jindal, CEO and MD of Next Bharat Ventures, calls for:
- Patient Capital: Long-term, low-interest funding for social impact entrepreneurs.
- Policy Realignment: Streamlined policy frameworks and bureaucratic processes.
- Tax Incentives: Tax-based incentives to attract investments in social impact ventures.
Building a Viksit Bharat: Inclusive Economic Growth
Varun Babbar, MD of Qlik India and SAARC, stresses the importance of technology in the ‘Viksit Bharat’ initiative:
- Digital Adoption: Prioritize digital technologies across sectors for inclusivity and efficiency in governance.
- Ease of Business: Invest in policies that simplify doing business and empower startups.
- AI Development: Implement guidelines for safe, ethical, and responsible AI development.
Conclusion
As the Union Budget 2024-25 approaches, the expectations from various
sectors reflect the diverse needs of India’s business landscape. The
government’s response will be crucial in shaping the country's economic
trajectory, balancing sector-specific challenges with overall growth and
inclusivity. Industry leaders are hopeful that the upcoming budget will lay the
foundation for India's next phase of development and prosperity.