Union Budget 2024-25: Real Estate, EV To Healthcare, What These Sectors Expect From Nirmala Sitharaman's Seventh Budget

NDA Formed government for the third consecutive time

The Bharatiya Janata Party (BJP) formed the government in the center for the third consecutive time after the National Democratic Alliance (NDA) got the majority mark in the recently concluded general election of 2024. The 2024 general elections did not give a majority to a single party like in 2014 and 2019 where BJP crossed the 273-seat mark, which is a majority mark in a 545-seat Lok Sabha assembly, on its own. After the election result, Narendra Modi took charge as Prime Minister for the third consecutive time.

Each sector is optimistic about the 2024-25 budget

Earlier in February this year, Sitharamam, who retained the finance portfolio, presented the interim budget where she did not make any major announcements as the BJP was confident to return to power. Now, As the BJP returned to power, sectors like real estate, Electric Vehicle, Consumer Electronics, Information Technologies, Automobiles, Agriculture, Banking and Finance, Startups, and others have huge expectations from the forthcoming budget. Most industries are seeking the continuation of previous schemes and more supportive policies. Meanwhile, salaried individuals and the middle class are expecting relief in the income tax slab.

Below, we have listed some expectations of the industries from the Union Budget 2024-25

Consumer Electronics Sector

NS Satish, President, of Haier Appliances India, demands an extension of PLI to boost economic growth.

“As the Union Budget approaches, the consumer durables industry is optimistic about increased infrastructure spending and the extension of PLI schemes to boost economic growth. The durables segment is currently under-penetrated, presenting a significant opportunity for demand generation. The industry is also hopeful that the government's emphasis on 'Make in India' and 'Digital India' initiatives will align with the growing consumer preference for locally manufactured products. Such focus will not only enhance global competitiveness for Indian players but also significantly boost employment," said Satish

Lalit Arora, Co-founder, of UBON, expects policies that will foster innovation and growth.

"As we approach the Union Budget 2024, we are optimistic about policies that will foster innovation and growth in the consumer electronics sector. We hope for initiatives that support digital infrastructure development, enhance manufacturing capabilities under the 'Make in India' initiative, and provide incentives for sustainable and eco-friendly technologies. A focus on reducing import duties on critical components and encouraging R&D investments will be pivotal in positioning India as a global hub in the consumer electronics segment. We look forward to a budget that not only drives industry growth but also makes advanced technology accessible to all," said Lalit.

Education Sector

Viranica Manchu, Founder & Director at New York Academy seeks support to ensure robust investment in international curriculum development.

"As an International School in India, we look forward to the upcoming Union Budget with optimism and anticipation. Key priorities include continued support for enhancing our infrastructure and ensuring robust investment in international curriculum development. We urge the government to streamline visa processes and regulatory frameworks to attract and retain global talent, which is vital for our diverse learning environment. Investments in digital learning tools and technology integration will further empower our students to excel in an interconnected world. Additionally, fostering partnerships with foreign educational institutions and promoting cultural exchange programs will enrich our educational offerings and nurture global citizenship among our students. These initiatives will contribute to the country's overall educational landscape globally," said Viranica Manchu.

Jaideep Kewalramani, COO & Head of Employability Business, TeamLease Edtech advices governmet to prioritise infrastructural development.

"The Govt should prioritize infrastructure development, startup ecosystem, create investment enabling policies, higher education support system and skill development for sunrise sectors like AI, Semiconductor and Green Economy. The growth rate of investment and jobs in these sectors will be fast paced and the focus should be on creating the talent pool. The job sentiment will remain positive with the exception of one or two industries that have a strong linkage to global headwinds and certain geopolitical situations. The industry will continue to demand a skilled workforce however talent mobility and lack of higher education remains a challenge in creating the match between jobs and job seekers. Thrust on work linked degree programs will help create a workforce that will serve the fast growing knowledge and digital economy. Businesses are keen on developing a strong talent supply chain that is career oriented. Workforce with Digital and AI skills will be in demand as businesses embrace the power of technology," said Jaideep.

Expectations of Startups

Aman Dhall founder of CommsCredible, who is also a Sports Mentor, Angel Investor & Indian Table Tennis Player seeks tax benefits and enhancement in funding availability.

“Recognizing the pivotal role played by young people in driving innovation and creativity, startups have emerged as a powerful force in creating employment opportunities. With the Indian startup ecosystem now ranked as the third-largest globally, I believe it is crucial for the upcoming Union Budget of 2024-25 to take certain factors into consideration. To fulfill India’s ambition of Viksit Bharat, it is crucial to ease regulations for startups, streamline procedures, provide tax benefits, and enhance funding availability. This will attract more entrepreneurs and investors, fostering job creation and economic growth. Enabling domestic capital participation through PSU investments in VC firms and offering capital gains tax exemptions on startup investments can further boost activity, potentially restoring pre-pandemic investment levels," said Aman Dhall.

Sachin Sharma, Founder and Director - GEM Enviro Management Limited expects that government should maintain the momentum on green growth in the upcoming budget.

"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," said Sachin.

Prassann Daphal , CEO at Recyclekaro demands a lower tax rate on lithium-ion batteries and extension of FAME program.

"The Goods and Services Tax (GST) on waste lithium-ion batteries is expected to be lowered from 18% to 5%, in line with the GST rate on lead-acid batteries, which is a significant anticipation. With this adjustment, the inverted duty structure will be corrected and recycling processes will become more economically viable," said Prassann.

"Stakeholders in the industry are pushing for the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) program to be extended and possibly expanded. This extension is essential to sustaining the momentum behind EV adoption and encouraging battery recycling," he added.

Finance Sector

Manoj Purohit, Partner & Leader, Financial Services Tax, Tax & Regulatory Services demands ease in deduction.

"Section 80LA provides for a deduction in respect of the income of International Financial Service Centre [IFSC] Units/ its investors in accordance with the provisions of this section. There has been plethora of regulatory changes introduced which have made it a lucrative investment destination. The income-tax holiday available to units in IFSC can be extended to make it attractive for foreign players, as the current tax holiday is for a very short-term period. For instance, Dubai International Financial Centre provides tax holiday for 50 years. Likewise, extending the tax holiday for another 5 to 10 years to IFSC units would surely make IFSC competitive with other global financial hubs, resulting in increase in India’s GDP, employment opportunities, an increase in forex reserves, and related economic benefits,"

Miniya Chatterji, Founding Director, Anant School for Climate Action, and CEO, of Sustain Labs Paris seeks focus on investing in renewable energy projects.

"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," said Miniya.

Retail Sector

"With the retail cosmetics sector predicted to expand to a size of USD 18.4 billion by 2032, legislative measures that will foster innovation and growth are the main focus of our pre-budget forecasts. Given the 15% annual growth rate in consumer demand for eco-friendly and health-conscious products, we want to see incentives for research and development in sustainable and natural products. Reducing import taxes on necessary finished products and raw materials will also assist in lowering the cost of high-quality cosmetics for the final customer. Import taxes can already increase the price of products by up to 30%; lowering them would be advantageous to consumers as well as businesses," Waqas Lasania, Founder of EuropeGirl Cosmetics

EV Industry

Ashwin Bhandari, CEO and co-founder of iVOOMi, an OEM brand in the EV industry demands integration of GST rates.

"In the upcoming budget, we propose a significant integration of GST rates for batteries and scooters, aiming to create a balanced sales taxation system while addressing key factors such as battery technology, supply chain efficiency, and market inventories. Additionally, we advocate for a targeted focus on demand-side incentives through FAME, specifically tailored for commercial users and middle-class markets with extensive daily usage".

Yogesh Bhatia, CEO and MD of LML, a global brand set to enter the EV Industry are demands for a greater emphasis on improving charging networks and advancing faster-charging technology.

"Looking ahead to the budget 2024, we are hoping for the prioritization of Charging Infrastructure and Technology which is critical in the pursuit of a sustainable and electric future. We urge the Government of India for a greater emphasis on improving charging networks and advancing faster-charging technology, which are evaluative for removing concerns about long charging times."

Real estate

Samir Bandari, Co-founder & Chief Financial Officer of hBits, a fractional ownership platform.

"The Indian government's budget for 2024-25 prioritizes both economic growth and fiscal responsibility. It sets an ambitious GDP growth target of 7.5%, reflecting confidence in the post-pandemic recovery. This optimism is backed by projections of strong domestic consumption and increased investments building on the 6.8% growth achieved in 2023-24," said Samir

"At the same time, the budget emphasizes fiscal consolidation. It aims to bring down the fiscal deficit to 5.9% of GDP, a step towards the government's goal of reaching 4.5% by 2025-26. This strategy balances the need for responsible spending with investments in crucial areas, as evidenced by a total expenditure of ₹45.03 lakh crore alongside an estimated revenue of ₹31.12 lakh crore (excluding borrowings). In summary, the 2024-25 budget outlines a comprehensive approach to accelerate economic growth while maintaining fiscal prudence," he added.

Sanjay Chatrath, Managing Partner, Incuspaze seeks restoration of input tax credit.

"We believe that Budget 2024 can be a transformative milestone for the flex workplace industry in India. We urge the government to restore the input tax credit for real estate, which will significantly reduce our operational costs and encourage more businesses to adopt flexible workspaces. Additionally, introducing green credits and financial incentives for green buildings will promote eco-friendly practices and reduce our carbon footprint."

Healthcare

"As we expect the announcement of the 2024 budget, it is necessary to concentrate on innovative technologies to further improve the healthcare sector. The trend of AI and ML is capable of changing the dynamics of Healthcare sectors, especially in remote diagnostics. Telehealth and digital health solutions have been embraced at a faster rate because of the COVID-19 pandemic, showing that they can be used to bridge rural-urban healthcare divides. By nurturing this sector, the government not only bridges the urban-rural healthcare divide but also democratizes access to quality healthcare nationwide", said Deepak Sahni, Founder of Healthians.

Rahul Misra, Founder of Vesta Elder Care hopes to see support for the healthcare industry.

"As we look forward to the Union Budget 2024-25, we hope to see continued support and enhancements in government initiatives for the healthcare industry. The interim budget's increased allocations for PMABHIM, Ayushman Bharat-PMJAY, and the PLI scheme reflect a strong focus on affordable healthcare and sustainable development. In 2024, the total expenditure of the industry has increased from ₹79,221 crore in 2023-24 to ₹90,171 crore in 2024-25, showcasing a significant commitment to improving healthcare services. In the upcoming Union Budget, we anticipate further steps to strengthen the healthcare infrastructure, enhance accessibility, and ensure the provision of quality care, especially for the elderly. Additional support for home healthcare services, advancements in medical technology, and training for healthcare professionals will be crucial in meeting the growing demand for comprehensive and compassionate care. We look forward to a budget that prioritizes the health and well-being of seniors too,”  said Rahul.

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