As India prepares for the Union Budget 2024, industry leaders, economists, and policymakers share their insights. The pre-budget estimates present key projections on fiscal policy, economic reforms, tax changes, and sectorial impacts. The budget is expected to push initiatives for various segments of the economy in line with the Viksit Bharat 2047 Vision, along with maintaining its fiscal prudence. The Make in India initiative is a cornerstone of the government's vision to make the Indian economy a global manufacturing powerhouse. The Budget for the Union Territory of Jammu and Kashmir will also be presented on July 23. Here are the key insights shared by the top Industry leader about the Union budget 2024.
Sanjay Choudhari, Chairman, SBL Energy
"As we operate in a high-risk industry landscape, the industry eagerly looks forward to targeted support in the upcoming budget. We advocate for subsidies or incentives to alleviate high production costs and encourage investments in safety measures. Increased funding and specific allocations within PSU initiatives are critical for sustainable growth. The industry needs adherence to stringent safety protocols and often seeks regulatory reforms or relaxed norms to streamline operations without compromising safety. Additionally, prioritizing support for training and skill development programs is essential for the industrial explosive sector to enhance safety standards and operational efficiency."
Sameer Gandotra, Founder & CEO, Frendy
“The upcoming budget is going to be crucial to brace the momentum of consumption, especially in rural. The government should certainly double down on its agricultural and rural development initiatives, which inevitably would boost income levels and consumer spending. I hope we get more clarity on formulating the National Retail Policy, which, in my opinion, would be a game-changer! Affordable and low-interest credit, stability of tax rates (GST) for staples, and push for digitization are what the Indian retail space needs to continue the consumption wave.”
Uday Sharma, Chief Commercial Officer, Allcargo Gati Limited
"The logistics subsector is undergoing numerous changes to address infrastructure and technology challenges. As the lifeline of the MSME sector, the logistics and supply chain industry plays a crucial role in efficiently delivering their products and enabling them to reach the market or their destination. MSMEs rely heavily on their third-party logistics providers to operate smoothly, as they often face limitations due to a lack of capital or resources.”
“The upcoming budget should create an environment where MSMEs can flourish with well-developed logistic infrastructures based on sustainable practices. We expect the budget to prioritize investments in infrastructure development, digitalization, and skill development, which will further empower MSMEs. Our commitment goes beyond providing logistics; we actively support programs that enhance operational efficiency and competitiveness for MSMEs. Through various initiatives like capacity-building workshops, digital transformation projects, and skill development programs, we strive to grow and sustain MSMEs."
Sanjay Vyas, Executive Vice President and Managing Director, Parexel India
“We are witnessing a dynamic shift in the pharmaceutical landscape. The industry's push for R&D incentives is a welcome sign. With this focus in mind, a similar allocation of budget towards these areas is expected from the upcoming budget. With the Indian Pharmaceutical sector trying to reach the $ 130 Billion target by 2030, there is a renewed spirit of research in the areas of cell and gene therapy, new molecular entities, biologics, and biosimilars. A strong focus on innovation will not only propel India's generics market but also make it a hub for ground-breaking therapies."
We're particularly interested in collaborations that leverage India's strengths in clinical research infrastructure and patient diversity. By fostering a collaborative environment between industry, research institutions, and the government, we can unlock India's potential to become a global leader in pharmaceutical innovation.
"The budget can also focus on technological advancements such as Gen AI, where the government can boost investments in AI, identify new research areas for the pharma sectors, and additionally promote academia-industry collaboration. The budget can also focus on implementing centralized data repositories for the country, such as Electronic Health Records (EHR) and a centralized medical record database, to maintain transparency and avoid discrepancies,” adds Sanjay.
Abrarali Dalal, Director & CEO, Sahyadri Hospitals Pvt Ltd
“The upcoming budget represents a significant opportunity to strengthen India’s healthcare infrastructure, drive growth, and enhance our resilience. We anticipate significant investments in public health infrastructure, primary healthcare facilities, and essential medicines. Moreover, promoting telemedicine and digital healthcare solutions will be vital in making healthcare more accessible and efficient to everyone.”
Abrarali says, “We also foresee major advancements in areas such as Home and Transit Care Services and the rapidly expanding field of Medical Tourism. With India aspiring to be the world’s medical tourism hub, policies that will simplify processes at Indian embassies, provide insurance recognition for Indian healthcare providers, and establish facilities such as welcome desks at airports in major cities will be instrumental. PM's vision of setting up 3,000 hospitals in Tier 3 towns with 100-150 beds each is yet to be achieved. To make this happen, the government should provide incentives to the private sector, such as affordable electricity, low-cost land, accessible loans, and streamlined approval processes. Enhanced budget allocations could significantly improve healthcare accessibility and affordability across Tier II and Tier III cities also, along with the metro cities.”
Aparna Reddy, Executive Director, Aparna Enterprises Ltd
“The government's commitment to infrastructure development, particularly in tier-2 and tier-3 cities, holds immense potential to transform India's landscape. This focus on inclusive growth through ‘Viksit Bharat’ will unlock new opportunities and propel the nation forward. However, rising costs of raw materials present a big hurdle. The upcoming budget brings a strategic opportunity to address this challenge. Reducing the GST on essential building materials like steel, cement, and aluminum would significantly benefit the sector and contribute to cost-effective infrastructure projects across the country, ensuring rapid and world-class development.”
“Similar solutions can help revitalize the real estate market, where rising construction costs have impacted affordability. Lowering the GST on these materials, coupled with increased domestic production, would incentivize developers and stabilize the supply chain. This would translate into increased consumer demand and a more vibrant real estate sector. Looking towards a sustainable future, we also strongly support increased investment in research and development of eco-friendly construction materials and technologies. Incentivizing companies that prioritize environmental responsibility will be a significant step toward a greener future for the construction industry. By working together, the government and the industry can leverage the upcoming budget to ensure continued infrastructure growth, a thriving real estate sector, and a sustainable future for India,” adds Aparna.
Dr. Kshitiz Murdia, CEO & CO-Founder of Indira IVF
“Our nation's healthcare sector demonstrated significant growth last year with increased global investments, expanding accessibility, and establishing itself as a leading force in the Asia-Pacific region. However, alongside these successes, there's a hidden global challenge emerging—a rapid decline in fertility rates and an aging population, mirroring demographic shifts seen worldwide.”
“In India, around 33-34 million people encounter infertility at some point in their lives. This underscores the urgent need for greater attention to Assisted Reproductive Technology (ART). Despite the escalating nature of this issue, public awareness at the grassroots level remains surprisingly low. Many couples are deterred from pursuing in vitro fertilization (IVF) due to its prohibitive costs, highlighting the necessity for government-subsidized insurance schemes focusing on infertility and ART to make treatments more affordable,” adds Kshitiz.