Finance Minster Nirmala Sitharaman will present the Interim Budget on February 1.
Credit: PTI Photo
New Delhi: India Inc wants Finance Minister Nirmala Sitharaman to announce more measures in her interim Budget to boost manufacturing, earmark larger funds for infrastructure development, and accord more focus on social sector schemes, while giving relief on taxation front.
Sitharaman, who has already presented five annual Budgets, will be unveiling an interim Budget for fiscal 2024-25 on February 1 in the Lok Sabha. It will be the last major economic document before the next general elections.
Industry says that it is imperative for the government to take measures to boost economic growth in the country as India marches towards becoming the third largest economy in the coming years.
Industry body CII has suggested launch of 'National Mission for Advanced Manufacturing' to enhance quality and productivity in manufacturing.
"The mission should strengthen the ecosystem for building a technologically advanced manufacturing industry and accelerate the adoption of transformative technologies in the manufacturing sector," it said.
It has also made a case for expanding PLIs to labour-intensive sectors, such as apparel, toys, footwear for boosting employment generation, and to sectors with large imports but domestic capability, like capital goods, chemicals, to reduce import dependence.
Another leading industry chamber FICCI said the capital expenditure outlay in the last Union Budget 2023-24 was increased by 37.4 per cent to Rs 10 lakh crore. Further, latest GDP release reported encouraging data on capital formation.
"...India is at an important inflection point and given the current global developments and associated headwinds, the government should continue to lay major thrust on public capex (on physical, social and digital infrastructure) in the forthcoming budget," it said.
Last month, Sitharaman had indicated that the Budget to be presented on February 1 would not have any "spectacular announcement" as it would be a vote-on-account in the run-up to the general elections.
On expectations from the Budget, Pavan Choudary, Chairman of Medical Technology Association of India (MTaI) said India’s current tariff duty structure on medical device imports is very high.
He said the high customs duty regime adversely impacts the costs of medical devices which contradicts the government’s efforts to provide low-cost healthcare available to the masses through schemes like Ayushman Bharat (PMJAY).
"Therefore, we request the government that for products where the ability to import substitutes is still some time away, the customs duty rate should be reduced," Choudary said.
Akshat Khetan, Founder, AU Corporate and Legal Advisory Services Limited (AUCL) said tourism promotion, Digital India push, and housing for all are expected to receive increased allocations.
These would be balanced with more proactive fiscal deficit control measures as well as targeted reforms augmenting demand in the e-commerce space.
"Certain measures can also be expected to address India’s increasing influence with regard to key global conversations, leveraging trade and cultural legacy as a key bulwark towards enabling a more holistic discourse in terms of both economic development and social well-being," Khetan said.
A brief Budget session of Parliament, the last of the 17th Lok Sabha, will be held between January 31 and February 9.
Saurabh Rai, CEO, Arahas Technologies said as India prepares to unveil its 2024 Budget, there's an air of expectancy among the Geographic Information Systems (GIS), space, and drone industries.
"Poised at the forefront of technological evolution, these sectors are integral to the country's economic growth. The forthcoming budget is viewed as a pivotal moment, offering tailored solutions to their distinct needs and setting the stage for transformative developments and sustained advancement," he said.
Sitharaman on Wednesday participated in a traditional 'halwa' ceremony, marking the final stage for preparation of the interim Budget 2024. The ceremony is an annual ritual in which traditional dessert 'halwa' is prepared and served to officials and staff members of the finance ministry who are involved in the preparation of the Budget.
Dharmesh Shah, CEO, Hero Realty said the real estate industry's outlook for 2024 remains positive after the top seven cities saw record-breaking sales of 4.77 lakh housing units, but the upcoming general elections may impact demand and growth in residential real estate.
"To continue the buoyancy, an industry status for the housing sector, a single-window clearance for housing projects, and an increase in the tax rebate under Section 24 of the Income Tax Act to Rs 2 lakh is the necessity," he said.
On what he expects from the finance minister, Ankit Kumar, CEO, Skye Air said the drone startup community is eagerly eyeing key expectations that could revolutionise the industry.
"Foremost among these is the call for a Production-Linked Incentive (PLI) exclusively tailored for the service sector. Such a scheme would not only attract investments but also catalyze job creation, fostering a rapid integration of drones in critical domains like healthcare and agriculture," he said.
Rahul Mehrotra, Managing Director and CEO at Religare Housing Development Finance Corporation expects a comprehensive reform in capital gains tax, signalling a commitment to optimizing fiscal policies.
"The government is set to usher in a tech-driven era in agriculture, introducing innovative projects aimed at enhancing efficiency and productivity in this crucial sector, ensuring a technologically advanced and sustainable future," Mehrotra said.
Post elections, the new government will be presenting the final Budget for 2024-25, which may include major policy initiatives, and tax proposals to propel India towards a $5 trillion economy, and also to become the world's third largest economy.