Budget 2024 Expectations Highlights: Pharmaceutical industry seeks increased allocations in upcoming interim budget

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Vishnu Manchu - Pro-Chancellor, Mohan Babu University says, a critical challenge in education sector is the need for up-skilling and job-ready graduates, leading to a focused government approach on skill development and youth education. Strategic resource allocation is crucial to produce graduates with essential skills, emphasizing practical training in technology, healthcare, and engineering. Investing in technological infrastructure, particularly in AI adoption, is vital for a skilled workforce. Addressing the shortage of qualified teachers is a priority, requiring investments in teacher training programs and incentives for educator retention. The budget could incentivize NRF under the NEP offers opportunities for meaningful industry-academia collaboration. Fostering data sharing and technical support for researchers to drive innovation and bridge the gap between academic research and industry needs is another aspect to focus on, he added

Sandeep Jain, Managing Director, Akums Drugs & Pharmaceuticals said simplifying international market access will empower pharmaceutical companies to play a more substantial role globally, thereby contributing significantly to the nation's economic growth. He said, the industry looks forward to initiatives that streamline and speed-up export processes.

Sandeep Jain, Managing Director at Akums Drugs & Pharmaceuticals says, the pharma industry seeks a roadmap that acknowledges pivotal role of budget in healthcare from upcoming interim budget. They also expect a push towards sustainable growth and innovation, said Jain. A significant boost in healthcare spending tops our list of priorities. Increased allocations are crucial not only to strengthen our healthcare infrastructure but also to ensure quality healthcare services reach every corner of our diverse nation, he added.

Gaurav Rege, General Manager, Radisson Blu Palace Resort & Spa, Udaipur said, the travel and hospitality industry in India is experiencing significant growth, driven by factors such as rising disposable income and increased interest from global investors. The hospitality industry expects a notable challenge hindering the growth of India's hospitality sector is the absence of GST credit for hotel construction from interim budget. He said, rationalizing GST rates and allowing for GST credit could make hotel stays more affordable and will improve accessibility for tourists but also stimulate further investment in the sector, ultimately increasing the organized hotel supply in India. The upcoming Union Budget provides a strategic opportunity to strengthen the tourism sector, positioning it as a robust pillar of India's economic and cultural identity. Building on the momentum from the Union Budget 2023, the Finance Minister has the chance to not only elevate India's tourism industry but also establish a resilient, inclusive, and sustainable ecosystem that benefits all stakeholders, he added.

Rajeev Kamra. Head of Marketing, Alyke App said, Indian startup sector expects sustained government support through different stages of startup growth. The forthcoming budget holds the potential to address this need importance of leveraging existing schemes like the Startup India Seed Fund Scheme (SISFS). He said, we anticipate the budget will prioritize strategies to enhance AI-driven innovations and look forward to the provision of extra funds, streamlined tax regulations, and simplified regulatory requirements, all aimed at fostering entrepreneurship and facilitating robust growth.

Babina N.M, Chief Medical Officer, Jindal Naturecure Institute said, as the naturopathy industry continues to play a pivotal role in India's evolving health and wellness landscape, we anticipate the upcoming budget to address critical challenges and seize growth opportunities in holistic wellness.Collaborative efforts among investors, government bodies, and consumers will be crucial for unlocking the full potential of the naturopathy market. Addressing infrastructure and workforce challenges and emphasizing standardization and quality control will enhance credibility and foster sustainable growth. This strategic approach will meet our nation's evolving healthcare needs and ensure the continued growth and efficacy of the naturopathy treatment

Government is likely to announce in the upcoming interim Budget a substantial increase in the agricultural credit target to Rs 22-25 lakh crore for the next fiscal and ensure every eligible farmer has access to institutional credit. Currently, the government provides interest subvention of two per cent on short term agri-loans of up to Rs 3 lakh for all financial institutions. This means farmers are getting a farm loan of up to Rs 3 lakh at a concessional rate of 7 per cent per annum.

Statiq CEO, Akshit Bansal said, the auto sector expects interim budget is grounded in urgent need for transformative reforms in the auto sector, specifically geared towards nurturing a green and clean energy segment. We anticipate the government to align its policies with the net-zero goal and sustainable development, he added

--We anticipate railways to be focused on reducing the dependency on roads.

--Efficiency to be gained through increased speed of 50kms /hours from 25kms / hour

--Innovation in express transportation is needed to support e-commerce volume.

--Coastal and waterways development will continue.

--Logistics Park to replace ICD and CFS over a period to make an ecosystem for MSME manufacturers and general trade.

--Dedicated road corridors to promote industrial belt linkages and faster movement of goods from produce to markets.

--We are still away from calling India logistically seamlessly integrated. The same is to be fastened across different govt departments and stakeholders.

--Skill development to be part of the curriculum since the pace at which manufacturing is set to grow and support functions like logistics and supply chain as per best practice will only add more demand on skill sharpening, training, and attracting talents to this industry.

--MEC will be the game changer once the geopolitical situation improves, it will reduce India's dependency on the Suez Canal though will need to address many complex challenges.

--Soft infra providers to be awarded infrastructure status or similar benefits to maintain the expectation of the trade and global supply chain while reducing the cost of ops.

Rahul Singhal from SN Dhawan & Co LLP said, we are expecting some changes in individual taxation in the upcoming interim budget so that transitioning to new tax regime can be encouraged. Further, focus would be around Make in India campaign with possible benefit announcement to entities operating in sectors like solar panel, car batteries, etc. Additionally, one can expect some announcements around PLI schemes and MSME sectors to boost employment and growth, he said.

President of Career Launcher, Sujatha Kshirsagar said, we want 6% of the country's GDP to be dedicated to education. The industry also expects PLI schemes and tax benefits for domestically produced courses, she said. Besides, prioritising the professional development of teachers, particularly in digital-first teaching methodologies, is essential, she added.

Domestic paper and paperboard manufacturers are expecting a 25% hike in import duty paper products in upcoming budget. Industry players have also demanded imposition of a quality control order to check cheap imports.

Robust tax collections allow increased funding for social schemes like MGNREGA, rural roads, PM Kisan Samman Nidhi, adhering to fiscal consolidation goals.

Abhyuday Jindal advocates eliminating import duty on raw materials to ensure fair competition, proposing Basic Customs Duty on imports to counter sub-standard products.

To address the substantial demand-supply gap in healthcare, Gautam Khanna proposes crucial measures. Tax incentives for Healthcare Skill Development are essential, aiding workforce growth. Aligning healthcare with long-term financing options, similar to those in other infrastructure sectors, can fortify the sector's expansion. Additionally, granting depreciation benefits for investments in diagnostic infrastructure, incentivizing overall healthcare infrastructure creation, and enhancing ease of doing business for the private sector are vital steps to foster transformation in the healthcare industry.

Government of India aims Rs 10.2 lakh crore capex in FY25, a 10% YoY rise; Icra predicts impact on economic activity and GDP growth.

In its pre-Budget wishlist, the Confederation of Real Estate Developers' Associations of India (CREDAI) urges the government to boost the real estate sector by enhancing the tax exemption limit on both principal and interest payments for home loans. With the goal of stimulating demand for residential properties, CREDAI suggests revising the definition of affordable housing. The recommendations include an increase in the deduction under section 80C for principal repayment of housing loans beyond the current Rs 1.5 lakh limit. Additionally, CREDAI proposes a potential standalone exemption for such deductions. The association emphasizes the need for a review and adjustment of the affordable housing threshold, set at Rs 45 lakh in 2017, to align with current market dynamics.

Subburathinam P, Chief Strategy Officer - Staffing at TeamLease Services, highlights the significance of the FAME scheme in boosting EV manufacturing. There is optimism for a reevaluation of the 18% tax on lithium-ion batteries to make EVs more affordable. The EV sector has experienced a notable 50% growth in sales, constituting 6.4% of total automobile sales. Anticipated tax benefits raise expectations of doubling this growth. The continuation or expansion of the Production Linked Incentive (PLI) scheme is expected, along with an allocation of ₹800 crore under FAME II for fast-charging stations, aligning with the government's goal of promoting widespread EV adoption.

In the forthcoming Budget, the government is anticipated to persist in prioritizing capital expenditure, notably in the infrastructure sector, to bolster economic growth. Having allocated a record Rs 10 lakh crore for capex in the current fiscal year with a consistent rise, the upcoming budget is expected to earmark a significant amount for capital expenditure. Recognizing its multiplier effect on the economy and its ability to attract private investment, this approach aims to sustain the momentum in capital spending.

Approximately 175 subsidiaries of multinational corporations in India are set for a review of rules regarding the new global minimum taxes, according to a PwC study. These units fall under the purview of the Organisation for Economic Co-operation and Development (OECD) Base Erosion and Profit Shifting (BEPS) 2.0 Pillar Two regulations. The study highlights the impact of these evolving international tax norms on the operations and tax strategies of major multinational entities in the country.

India is poised to announce a social security fund for informal workers in the upcoming budget. Proposed in the yet-to-be-implemented Social Security Code of 2020, this move signifies a stride towards universal social security. Although the code awaits full rollout due to states yet to frame rules, the budget is expected to enable partial implementation of specific provisions, addressing the critical need for social protection among informal sector workers.