Union Budget 2024: Key Expectations From Various Sectors
Finance Minister Nirmala Sitharaman will present the Union Budget 2024-25 on Tuesday. The budget holds significant importance across various key sectors including MSMEs, technology, agriculture, gold, and more. Stakeholders express expectations such as regulatory changes, incentives for R&D, and policy adjustments to foster economic growth.
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This Tuesday, Finance Minister Nirmala Sitharaman will present the Union Budget for 2024-25 in Parliament, the first of Prime Minister Narendra Modi's third term. Earlier this year, she presented an Interim Budget on February 1 to address the financial needs during the interim period.
As the Union Budget 2024 approaches, Indian financial markets, corporates, and entrepreneurs have voiced varied expectations from the government. Numerous stakeholders have participated in pre-budget consultations, emphasizing their role in liquidity, capital provision, and overall economic stability.
Addressing budget expectations, Prashant Bothra, CEO, and Founder of Fhero Accounting Solutions, discussed potential regulatory changes such as amendments to the Securities Transaction Tax (STT) and capital gains taxes. He urged for stricter regulations on futures and options (F&O) to curb speculative trading and suggested extending the Long-Term Capital Gains (LTCG) holding period for equity shares.
Ankur Saraswat, Research Analyst at Trustline Securities Limited, highlighted sector-specific measures like PLI benefits and reduced GST for agrochemicals, digitalization for IT, and increased spending on healthcare technology. The specialty chemicals industry seeks faster approvals for capital expenditure and R&D incentives, while the steel sector hopes for reduced raw material taxes and higher import duties on Chinese steel.
The MSME sector, vital for India's economic and social development, expects initiatives to ease business operations, lower compliance burdens, and streamline approval processes. Bothra emphasizes the need for an action plan supporting MSMEs, reduction of the Angel Tax, and funding mechanisms to fuel growth, alongside upskilling programs in automation, AI, and data analytics.
Saraswat added that the budget may impact startup investments, with enhanced allocations for digital infrastructure, AI, and cybersecurity. Public-private partnerships and tax incentives could also bolster the startup ecosystem.
In the bullion sector, expectations include continued pro-growth policies and ease of business. Sachin Jain from the World Gold Council anticipates budgetary measures boosting economic growth and gold demand, and urges reduction in gold import duty to combat illicit routes. Jain also advocates for the growth of the digital gold market through appropriate regulations.
Ajai Rana, Chairman of the Federation of Seed Industry of India, stresses the importance of R&D investments in agriculture. He calls for a supportive policy and regulatory framework, recognizing R&D-focused seed companies to encourage private-sector investment in agricultural research.
(With inputs from agencies.)
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