Union Budget 2024: What Industry Leaders Expect
By : DC Web Desk
Update: 2024-07-23 03:35 GMT
Ahead of Budget 2024, we spoke to industry leaders to understand their expectations across sectors that are witnessing unparallelled growth. The leaders comment on what challenges they face and what catalytic opportunities they wish to witness in the Union Budget 2024.
Mr. Asish Pradhan, President, Siegwerk Asia
The packaging industry in India is at a pivotal juncture, experiencing rapid growth and innovation. The Union Budget comes at a time when the sector is witnessing drastic growth in the country. The robust growth of the packaging sector is supported by the rising demand in FMCG, e-commerce, and sustainable packaging solutions. There is a pressing need for policies that support sustainable packaging solutions, infrastructure development, and technological advancements. We expect this budget to address critical areas that include the simplification of GST and favourable tax policies, which help keep momentum in this sector high. These measures will not only enhance the industry's global competitiveness but also drive environmental responsibility and economic growth.
Karun Tadepalli, CEO and Co-Founder, byteXL
Catalyzing India's economic trajectory, startups have been pivotal, creating nearly a million jobs in recent years and propelling us to the 40th spot on the Global Innovation Index. Ahead of the Union Budget, addressing Angel Tax by reducing or abolishing it would amplify funding efficiency and safeguard founder equity. Amplifying financial backing for rural startups promises accelerated growth and expanded employment opportunities. For the edtech sector, slashing GST would significantly lower deployment costs, especially benefiting tier 2 and 3 educational institutions in adopting cutting-edge technologies. Introducing more schools into the schemes like Atal Innovation Mission (AIM) and increasing the grants for the prototype development, market research and capacity building would foster the innovation ideas at a young age. Additionally, prioritizing resources for vacant engineering college seats and optimizing existing infrastructure will fortify our educational landscape, pivotal for national advancement.
Satyendra Prasad Narala, Mg. Dir, Regency Ceramics Ltd
We would expect the Budget 2024 to address the MSME sector issues - especially the challenge of delayed payments from customers and ensure they adhere to payment timelines of 45 days. The budget should contain provisions to ensure the financial health of MSMEs - working capital at subsidized interest, abolishing cooling period for banks to extend loans, etc. There is also a need to revamp the production-linked incentives (PLIs) by reducing import duties on raw materials.
Specifically to the ceramic tile sector, as fuel is a significant component of production cost, we urge the government to bring Natural Gas for industrial consumers under the GST tax regime. The increased housing under the PM Awas Yojana and providing facilities for middle class citizens of the country to buy / build homes is expected to boost demand for the ceramic industry in India and enhance production capabilities.
We expect Budget 2024 to rationalise inverted duty structures across sectors and improve India's manufacturing competitiveness and aid domestic manufacturing.
Saurabh Marda, Founder & MD, Freyr Energy
As the ambitious PM Surya Ghar Yojana, launched by Prime Minister Narendra Modi picks up pace, there is a rapid increase in households across India, adopting rooftop solar to claim subsidies. This covers up to 40% of the installation cost with additional financing options to further ease the adoption in tier 2 and tier 3 markets. The scheme is expected to benefit 1 crore households across the country aiming to achieve India's goal of attaining net-zero emissions by 2070. Improved integration of DISCOM's with the National portal will play a significant role in helping customers transition to solar quickly. In addition to this, providing incentives to local solar cell manufacturers will be important, because it ensures that supply will keep up with the upcoming demand for solar modules with made in India cells. Finally, continuing the subsidy scheme and other similar initiatives for the next few years will help companies in this sector scale up and will help India meet its net zero goals ahead of schedule.
L Srinath Reddy, Managing Director, Raminfo Limited
“Our priorities are centered around simplifying GST compliance, particularly for small businesses providing services across multiple states. We are primarily concerned with policy adjustments in the 2024 budget that would streamline these processes. In financial terms, we advocate for protections for businesses that work with the government. Specifically, we believe that once bills are certified and submitted, the government should be mandated to pay them within a defined time frame. While the 45-day rule for MSME payments is a positive development, its implementation is currently more effective in the private sector than within government operations. We strongly urge the extension of this policy to all MSMEs working with the government, ensuring that certified and approved bills are paid within the established time frame. This adjustment would significantly enhance the financial stability and operational efficiency of MSMEs engaged in government contracts.
Prem Kumar Vislawath - CEO and Founder, Marut Drones
We would like to see easing of regulations for both manufacturers and buyers in the sector, and of course, easy financing for drones for commercial use. There is a need for 100 percent subsidy to farmers on drone training certification programmes through the Skill India initiative. We would also expect that the PLI scheme should be extended to component manufacturers as well. We would also like to emphasize the necessity of allocating substantial funds for Research & Development in the drone technology sector.
Mr. Asish Pradhan, President, Siegwerk Asia
The packaging industry in India is at a pivotal juncture, experiencing rapid growth and innovation. The Union Budget comes at a time when the sector is witnessing drastic growth in the country. The robust growth of the packaging sector is supported by the rising demand in FMCG, e-commerce, and sustainable packaging solutions. There is a pressing need for policies that support sustainable packaging solutions, infrastructure development, and technological advancements. We expect this budget to address critical areas that include the simplification of GST and favourable tax policies, which help keep momentum in this sector high. These measures will not only enhance the industry's global competitiveness but also drive environmental responsibility and economic growth.
Karun Tadepalli, CEO and Co-Founder, byteXL
Catalyzing India's economic trajectory, startups have been pivotal, creating nearly a million jobs in recent years and propelling us to the 40th spot on the Global Innovation Index. Ahead of the Union Budget, addressing Angel Tax by reducing or abolishing it would amplify funding efficiency and safeguard founder equity. Amplifying financial backing for rural startups promises accelerated growth and expanded employment opportunities. For the edtech sector, slashing GST would significantly lower deployment costs, especially benefiting tier 2 and 3 educational institutions in adopting cutting-edge technologies. Introducing more schools into the schemes like Atal Innovation Mission (AIM) and increasing the grants for the prototype development, market research and capacity building would foster the innovation ideas at a young age. Additionally, prioritizing resources for vacant engineering college seats and optimizing existing infrastructure will fortify our educational landscape, pivotal for national advancement.
Satyendra Prasad Narala, Mg. Dir, Regency Ceramics Ltd
We would expect the Budget 2024 to address the MSME sector issues - especially the challenge of delayed payments from customers and ensure they adhere to payment timelines of 45 days. The budget should contain provisions to ensure the financial health of MSMEs - working capital at subsidized interest, abolishing cooling period for banks to extend loans, etc. There is also a need to revamp the production-linked incentives (PLIs) by reducing import duties on raw materials.
Specifically to the ceramic tile sector, as fuel is a significant component of production cost, we urge the government to bring Natural Gas for industrial consumers under the GST tax regime. The increased housing under the PM Awas Yojana and providing facilities for middle class citizens of the country to buy / build homes is expected to boost demand for the ceramic industry in India and enhance production capabilities.
We expect Budget 2024 to rationalise inverted duty structures across sectors and improve India's manufacturing competitiveness and aid domestic manufacturing.
Saurabh Marda, Founder & MD, Freyr Energy
As the ambitious PM Surya Ghar Yojana, launched by Prime Minister Narendra Modi picks up pace, there is a rapid increase in households across India, adopting rooftop solar to claim subsidies. This covers up to 40% of the installation cost with additional financing options to further ease the adoption in tier 2 and tier 3 markets. The scheme is expected to benefit 1 crore households across the country aiming to achieve India's goal of attaining net-zero emissions by 2070. Improved integration of DISCOM's with the National portal will play a significant role in helping customers transition to solar quickly. In addition to this, providing incentives to local solar cell manufacturers will be important, because it ensures that supply will keep up with the upcoming demand for solar modules with made in India cells. Finally, continuing the subsidy scheme and other similar initiatives for the next few years will help companies in this sector scale up and will help India meet its net zero goals ahead of schedule.
L Srinath Reddy, Managing Director, Raminfo Limited
“Our priorities are centered around simplifying GST compliance, particularly for small businesses providing services across multiple states. We are primarily concerned with policy adjustments in the 2024 budget that would streamline these processes. In financial terms, we advocate for protections for businesses that work with the government. Specifically, we believe that once bills are certified and submitted, the government should be mandated to pay them within a defined time frame. While the 45-day rule for MSME payments is a positive development, its implementation is currently more effective in the private sector than within government operations. We strongly urge the extension of this policy to all MSMEs working with the government, ensuring that certified and approved bills are paid within the established time frame. This adjustment would significantly enhance the financial stability and operational efficiency of MSMEs engaged in government contracts.
Prem Kumar Vislawath - CEO and Founder, Marut Drones
We would like to see easing of regulations for both manufacturers and buyers in the sector, and of course, easy financing for drones for commercial use. There is a need for 100 percent subsidy to farmers on drone training certification programmes through the Skill India initiative. We would also expect that the PLI scheme should be extended to component manufacturers as well. We would also like to emphasize the necessity of allocating substantial funds for Research & Development in the drone technology sector.
As a drone startup, Marut is also looking for faster approvals, especially in the urban air mobility space and a reduction in interest rates for drone loans. The current GST rate of 18% on agricultural machinery is a significant burden for Indian manufacturers. We expect reducing this rate to 3%, which would provide much-needed relief and promote domestic production. Additionally, we call for more initiatives similar to the Drone Didi Yojana to accelerate the adoption of drone technology. More such schemes will facilitate quicker integration of advanced technology, driving innovation and efficiency.
Dr. Krishna Prasad Chigurupati, Chairman and Managing Director, Granules India Limited
"India's pharmaceutical industry, recognized as the 'pharmacy of the world,' is on the verge of a major transformation. Indigenous manufacturers are evolving with superior, cost-effective products. As a fast-growing sector, it is poised to become a global leader.
To achieve this goal, the Indian government needs to take bold strides, including creating innovation zones with benefits and infrastructural support, and encouraging collaboration between public and private entities. The pharmaceutical industry needs more investment, and the government must incentivize and fund cutting-edge drug research and development. Streamlining regulations to speed up approvals for new treatments and investing in educating a workforce skilled in pharmaceutical innovation are crucial. Simultaneously, authorities need to weed out players that don’t conform to high-quality drug standards accepted globally, to become more credible and contribute to export earnings. These efforts will usher in a new era of Indian pharmaceutical leadership, characterized by path-breaking outcomes. The industry can then be part of India’s ambitious Viksit Bharat journey.
The Indian manufacturing sector is projected to contribute USD 800-900 billion to the GDP in the next 4 to 5 years. India has the potential to become a hub for sustainable manufacturing, contributing to the fight against climate change. We are at a tipping point of transformation that integrates sustainability with advanced technologies. This approach is essential to address the global climate crisis. As an industry leader, Granules India exhorts the Union Government to aggressively pursue its ambitious renewable energy and green hydrogen projects. This will demonstrate the country's commitment to sustainable development, economic growth, energy independence, and global leadership in reducing carbon emissions."
Great Learning – Hari Krishnan Nair, Co-Founder
Skill development is paramount for the sustained growth and competitiveness of our economy. Historically known as the back office of the world, India has been a vital hub for outsourcing services. With the increasing number of global companies establishing their Global Capability Centers (GCCs) in India, we are presented with a plethora of job opportunities for our youth. However, to fully leverage these opportunities, it is imperative that the skills of the Indian workforce meet global standards. By becoming a talent powerhouse, India can attract more investments, foster innovation, and drive economic growth. Equipping our workforce with cutting-edge skills not only enhances employability but also positions India as a preferred destination for high-value projects and international business operations, thereby significantly contributing to the country's economic prosperity. Hence, making skill development accessible and affordable becomes of utmost importance. In this budget, I hope the government takes measures to reduce GST on upskilling and reskilling programs. Lowering this tax burden will make these programs more affordable, encouraging greater participation and investment in personal development. Additionally, incorporating upskilling programs into educational loan schemes is crucial. Currently, these programs do not fall under the purview of educational loans, resulting in higher interest rates for learners. By including them in educational loans, we can make these programs more accessible and affordable, significantly alleviating the financial burden on individuals seeking to enhance their skills.
Digii – Hemant Sahal, CEO & Founder
As the first budget of Modi 3.0 approaches, we are filled with excitement and anticipation for a progressive vision for Vikshit Bharat @ 2024. We hope to see major investments aimed at accelerating the adoption of the National Education Policy (NEP) through the integration of technology and the capacity building of stakeholders in Higher Education Institutions (HEIs). With AI revolutionizing industries, we look forward to the government placing a special emphasis on introducing robust infrastructure and allocating resources to upskill the workforce, as well as imparting AI skills and competencies to students. This forward-thinking approach will be crucial in equipping our nation for the future and ensuring that India remains at the forefront of global innovation and development.
Dr. Krishna Prasad Chigurupati, Chairman and Managing Director, Granules India Limited
"India's pharmaceutical industry, recognized as the 'pharmacy of the world,' is on the verge of a major transformation. Indigenous manufacturers are evolving with superior, cost-effective products. As a fast-growing sector, it is poised to become a global leader.
To achieve this goal, the Indian government needs to take bold strides, including creating innovation zones with benefits and infrastructural support, and encouraging collaboration between public and private entities. The pharmaceutical industry needs more investment, and the government must incentivize and fund cutting-edge drug research and development. Streamlining regulations to speed up approvals for new treatments and investing in educating a workforce skilled in pharmaceutical innovation are crucial. Simultaneously, authorities need to weed out players that don’t conform to high-quality drug standards accepted globally, to become more credible and contribute to export earnings. These efforts will usher in a new era of Indian pharmaceutical leadership, characterized by path-breaking outcomes. The industry can then be part of India’s ambitious Viksit Bharat journey.
The Indian manufacturing sector is projected to contribute USD 800-900 billion to the GDP in the next 4 to 5 years. India has the potential to become a hub for sustainable manufacturing, contributing to the fight against climate change. We are at a tipping point of transformation that integrates sustainability with advanced technologies. This approach is essential to address the global climate crisis. As an industry leader, Granules India exhorts the Union Government to aggressively pursue its ambitious renewable energy and green hydrogen projects. This will demonstrate the country's commitment to sustainable development, economic growth, energy independence, and global leadership in reducing carbon emissions."
Great Learning – Hari Krishnan Nair, Co-Founder
Skill development is paramount for the sustained growth and competitiveness of our economy. Historically known as the back office of the world, India has been a vital hub for outsourcing services. With the increasing number of global companies establishing their Global Capability Centers (GCCs) in India, we are presented with a plethora of job opportunities for our youth. However, to fully leverage these opportunities, it is imperative that the skills of the Indian workforce meet global standards. By becoming a talent powerhouse, India can attract more investments, foster innovation, and drive economic growth. Equipping our workforce with cutting-edge skills not only enhances employability but also positions India as a preferred destination for high-value projects and international business operations, thereby significantly contributing to the country's economic prosperity. Hence, making skill development accessible and affordable becomes of utmost importance. In this budget, I hope the government takes measures to reduce GST on upskilling and reskilling programs. Lowering this tax burden will make these programs more affordable, encouraging greater participation and investment in personal development. Additionally, incorporating upskilling programs into educational loan schemes is crucial. Currently, these programs do not fall under the purview of educational loans, resulting in higher interest rates for learners. By including them in educational loans, we can make these programs more accessible and affordable, significantly alleviating the financial burden on individuals seeking to enhance their skills.
Digii – Hemant Sahal, CEO & Founder
As the first budget of Modi 3.0 approaches, we are filled with excitement and anticipation for a progressive vision for Vikshit Bharat @ 2024. We hope to see major investments aimed at accelerating the adoption of the National Education Policy (NEP) through the integration of technology and the capacity building of stakeholders in Higher Education Institutions (HEIs). With AI revolutionizing industries, we look forward to the government placing a special emphasis on introducing robust infrastructure and allocating resources to upskill the workforce, as well as imparting AI skills and competencies to students. This forward-thinking approach will be crucial in equipping our nation for the future and ensuring that India remains at the forefront of global innovation and development.
Masood Mallick, CEO, Re Sustainability Limited (ReSL).
While a transition to green energy is essential it is not enough. The same strategic focus must be extended to decarbonizing materials, which account for 40-45% of our carbon footprint.
Extended producer responsibility (EPR) programs that go beyond plastics, e-waste and ELVs: This requires producers, across all product categories, to take responsibility for the end-of-life management of their products, including disposal and recycling.
Green procurement policies: Governments and organizations can adopt policies that prioritize and mandate the purchase of products that have recycled content and are produced using circular economy principles.
Recycling funds: This involves the creation of funds to finance waste management and recycling initiatives (funded through environmental taxes or producer fees).
Resource efficiency mandates: Governments can establish mandates that require companies to reduce resource use and waste generation, incentivizing the adoption of circular economy practices.
Performance-based incentives: This involves rewarding companies that adopt circular economy practices, such as reducing waste and increasing resource efficiency. Hopefully, the Green Credit program referred to in the past Union Budget can be aligned along these lines.
Encouraging the use of sustainable and biodegradable materials: This includes policies to promote the use of materials such as recycled construction materials, recycled plastics, and compostable materials, which have a lower carbon footprint compared to traditional materials.
Encouraging innovation in low-carbon materials: Governments, private organizations, and universities should have a funded mandate to invest in research and development of new, low-carbon materials, such as sustainable alternatives to concrete, steel, and plastics.
Dr. Simmardeep S Gill, MD & CEO, Sterling Hospitals, Ahmedabad*
"The upcoming union budget is expected to bring important changes to the healthcare sector, addressing key needs and improving services. We need rationalized GST rates and lower import tariffs on diagnostic equipment to make operations smoother and encourage local production, reducing our dependence on imports.
India has a burden of diseases like cancer, with nearly 1.5 million new cases every year and the number might increase in the future. We need more trained oncologists and radiation therapy facilities to bridge the gap in cancer care. Similarly, cardiovascular diseases remain the leading cause of death. Investing in cardiology infrastructure and specialists is also necessary.
Beyond infrastructure, innovation is key. India's medical tourism sector, valued at $9 billion, showcases potential. Health tourism in India is on the rise as NRIs flock to hospitals for cost-effective treatment. Streamlining processes and infrastructure can further enhance this sector. Similarly, the robotic surgery market is projected to grow from USD 8 billion to USD 25.4 billion by 2030. While robotic surgery holds immense promise, affordability needs to be addressed. Investing in AI and machine learning can revolutionize diagnostics and personalized care. These technologies can improve diagnostic accuracy, streamline hospital operations, and personalize patient care, making healthcare more efficient and effective. Ultimately, we look forward to a budget that meets these expectations and helps us provide accessible, affordable, and high-quality care for everyone.”
Parmod Sagar, MD & CEO of RHI Magnesita India
“The Government’s continued commitment to infrastructure as a priority area for ‘Viksit Bharat’ highlights the sectors significance as growth driver. With a capital expenditure of over 11 lakh crore rupees already announced in the interim budget, representing 3.4% of GDP, the refractory industry looks forward to playing an important role in India's next phase of economic transformation. Furthermore, announcements made for the ‘next gen reforms’ such as economic policy framework are welcome as these will support in achieving the nations economic goals with the ethos of ‘Make-in-India”.
Kamlesh Talera, Founder of Mysore Saree Udyog,
“With the Union Budget 2024 approaching, we are hopeful for comprehensive measures from Finance Minister Nirmala Sitharaman. Key expectations include increased fund allocation to MSMEs, which dominate 80% of the market, and the extension of the PLI scheme to the garments sector to boost domestic manufacturing and exports. Reviving the Scheme for Integrated Textile Parks (SITP) is also anticipated to create world-class textile parks. While the extension of the RoSCTL scheme is welcomed, unchanged import duties and insufficient relief for the spinning sector remain concerns. Enhancements in allocations for trade promotion, rationalisation of GST rates for manmade fibres, and supportive measures for raw material issues are critical for the industry's growth and sustainability. Additionally, these initiatives will significantly contribute to India's GDP and help the nation achieve its ambitious goal of becoming a $5 trillion economy. The industry also looks forward to initiatives promoting green power to align with sustainability goals.”