Industry Expectations From Budget 2024 - India

Since 2024 is an election year, we can expect the main budget under Modi’s government to be released on July 23rd after the interim budget that was announced in February. The Indian economy has been performing well and employment is increasing if RBI data is to be believed. Now that the Modi government has been elected for the third time consecutively, industries have major expectations from the upcoming budget.

The middle class has been long overlooked and this budget might bring tax relief for the middle-income group. Women and the farming sector are also expected to be focus groups in the budget.?

The budget is expected to address inflation and job concerns, especially in the rural economy. Let’s go through the budget expectations of different industries in the ensuing sections.

Real Estate

The real estate sector expects low input costs for steel, cement, and fuel. The sector has also been demanding industry status and a streamlined clearance system. A single-window clearance system will attract more investments in the industry as it will smoothen the flow of supply and demand and promote ease of doing business. Developers are also worried about the hefty GST on cement. The sector anticipates a reduction of GST on essential raw materials to reduce construction costs. Industry status will help the sector access loans at reduced interest rates.

E-commerce

India has a thriving e-commerce industry with the e-commerce market in India valued at $70 billion. With the budget slated to be announced on July 23rd, the e-commerce industry hopes the Open Network for Digital Commerce (ONDC) gains more momentum. The e-commerce sector expects the amendment of ecommerce policy. The MSMEs especially want to expand their reach beyond the brick-and-mortar model by leveraging the e-commerce model

Finance

The finance industry wants the budget to introduce measures that will boost the financial ecosystem and encourage technological innovation in financial services. Disinvestment policies should continue to stay in place and PLI scheme should cover more sectors to boost the manufacturing sector. More policies in favour of foreign investment should be introduced so economic growth gains momentum.

Industries hold high expectations from the upcoming budget, hoping for incentives that will boost operational efficiencies. From manufacturing to real estate, each sector anticipates specific reforms and incentives that will not only address their immediate challenges but also lay the foundation for long-term growth and sustainability. The budget needs to have a balanced approach, fostering innovation, boosting competitiveness, and ensuring inclusive development. After all, strategic fiscal policies play a crucial role in driving economic resilience and prosperity.

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