Budget 2024 Expectations Live Updates: Healthcare, Fintech, Agritech, Green Energy and other sectoral expectations

“As India gears up for the upcoming budget, the tech industry anticipates a transformative phase that could set new benchmarks for innovation and growth. Expectations are high for increased allocations towards digital infrastructure, artificial intelligence, and cybersecurity, aiming to bolster India's position as a global tech hub. Industry leaders are hopeful for incentives to spur investments in startups and emerging technologies, furthering the vision of a digitally empowered society. Streamlined regulatory frameworks and policies promoting ease of doing business are anticipated to foster a thriving entrepreneurial ecosystem, driving sustainable growth and business innovation.”

"The pharmaceutical industry is optimistic about the upcoming budget, especially following the government's implementation of enhanced quality control measures like Good Manufacturing Practices and revised Schedule M. With the Indian pharma sector making significant strides globally, increased budget allocation can bolster our international standing. We anticipate initiatives incentivising R&D to support the local manufacturing of high-quality pharma products. Additionally, PLI schemes could greatly assist in establishing advanced manufacturing facilities and integrating cutting-edge technologies and machinery. These steps are vital for promoting innovation and sustainable growth within the industry"."

"Upcoming Budget to Strengthen Government Balance Sheet and INR, Drive Infrastructure and Defense Investments" Dr Vikas Gupta, CEO and Chief Investment Strategist, OmniScience Capital

Finance Minister Sitharaman is set to unveil the Union Budget 2024-25 on July 23, aiming to enhance consumption through potential adjustments in indirect tax rates. The continuation of the same government signals a sustained policy framework, focusing on fiscal consolidation, infrastructure development, social upliftment, and other key areas.

We expect the budget to continue to focus on fiscal consolidation and remain growth focused. Fiscal deficit is likely to be lower in the upcoming budget due to fiscal space created by the higher-than-expected dividend transfer by the Reserve Bank of India."

"As we anticipate the Budget 2024, we expect measures that will further propel India's economic growth trajectory. We look forward to initiatives that will bolster the financial ecosystem, including banking, insurance, and capital markets. These sectors are the backbone of our economy, facilitating capital flow and risk management. We hope to see policies that enhance market depth, promote wider participation, and encourage technological innovation in financial services. Additionally, we anticipate a continued focus on disinvestment and an expansion of the Production Linked Incentive (PLI) scheme to include more sectors, providing further impetus to the manufacturing sector.

Key economic priorities should include infrastructure development, job creation, and attracting foreign investments. These steps will be vital in maintaining India's position as one of the fastest-growing major economies. We also look forward to reforms that will simplify regulations and ease of doing business, particularly in the financial sector, to boost investor confidence and market stability. Lastly, potential adjustments to the tax structure for lower-income brackets could stimulate consumer spending and drive economic momentum, further reinforcing India's growth narrative.”

“At Eye-Q, we have time and again pressed for a well-rounded budget that would help the eye care sector address the critical needs of our population. With 62 million visually impaired persons and 8 million blind people, India bears approximately a quarter of the world's burden of blindness and vision impairment. As a leading eye care hospital chain, we eagerly anticipate the upcoming Budget 2024-25, hoping for transformative policies that tackle these pressing issues. We strongly advocate for large-scale door-to-door eye screening initiatives, which are essential for early detection and treatment. Additionally, the backlog of eye surgeries, exacerbated by the COVID-19 pandemic, urgently requires resolution, particularly in rural areas where access to healthcare remains limited. We also look forward to an infrastructure boost that will enhance the capacity of eye care facilities nationwide. Furthermore, support for research and development is crucial to advancing innovative treatments and technologies in eye care. Importantly, lowering GST and other import taxes on medical equipment and supplies would significantly reduce costs, making eye care more accessible and affordable. With these measures, we believe the budget can pave the way for a brighter, clearer future for millions of individuals, ensuring that quality eye care is within reach for all,”

"There is a pressing need for a growth-oriented tax environment to catalyze India's economic progress and from the Upcoming Union Budget, we expect The Finance Minister to look at reforming the Goods and Services Tax (GST) structure, including rationalization of rates and simplification of compliance procedures. The manufacturing sector is very capital-intensive and the introduction of tax holidays and enhanced input credits for upcoming manufacturing units will be crucial in stabilizing operations and expansion. Overall, industry friendly tax assessments can reduce the time and effort spent on compliance and in turn allow companies to focus on growth.

India's manufacturing sector will be a key contributor towards the goal of becoming a $10 trillion economy. The budget should emphasize making India self-reliant and become a global manufacturing hub, and in turn boost the Make-in-India initiative. Hence, policies that support local manufacturing will be helpful.

According to the latest report by the CII, India’s Electronics Manufacturing is expected to reach USD500Bn by 2030. One of the key pillars of the growing electronics manufacturing industry is electronics manufacturing services (EMS), which includes services such as designing, manufacturing, testing, distributing and servicing electronic components and assemblies for OEMs. PLIs for the EMS sector will increase the contribution of the manufacturing industry towards our economy, and help create jobs, which is the need of the hour.

Extending incentives for research and development (R&D) and digitalization will contribute towards creating an enabling environment for expansion of the sector and also position India as a factory for the world."

“ We are hoping for the same things as we were with the Interim Budget in Feb, 2024. Rationalisation of capital gains tax down from the current 30% and of the TDS tax rate of 1%. Treating crypto at par with other financial asset classes like equity. A well-defined regulatory framework for crypto in the country, making crypto a suitable investment option for the common man as well as spurring industry investment in the crypto sector,” Khan said.

"Alyve Health Calls for Budget Focus on Preventive Healthcare Initiatives to Ease Burden on Indian Healthcare System

Alyve Health is keenly awaiting the upcoming budget to be presented by Finance Minister Nirmala Sitharaman. We urge the budget to prioritize the healthcare sector, specifically focusing on preventive healthcare initiatives. While the health budget has increased 12% to ₹86,175 crore in 2023-24, there is a significant disparity in healthcare services available in rural and urban India. Moreover, the rise in outpatient care costs, especially for lifestyle diseases such as diabetes, heart disease, and cancer, is straining the healthcare system. It makes a case for lifestyle management and preventive healthcare initiatives.

At Alyve Health, we're proud to provide innovative health plans for individuals, groups, and corporate employees. Our diverse range of plans is designed to help people stay healthy and foster healthy living habits, demonstrating our commitment to preventive healthcare. Given India's vast population, prioritizing preventive healthcare is essential. It can significantly reduce the burden on the existing healthcare infrastructure. Alyve Health believes investing in preventive healthcare and incentivizing startups that bring innovative solutions in this space is the right way.

As a company that offers customized health plans, we at Alyve Health hope the upcoming budget provides incentives for the preventive healthcare sector in India. Shashank Avadhani Co-founder & CEO, Alyve Health said that to benefit the users further, the government should consider waiving off GST for preventive healthcare plans, including annual health checkups, prescribed diagnostics, wellness plans, etc. This will reduce costs and encourage users to opt for these services proactively," Avadhani said.

Anish Mashruwala, Partner, JSA Advocates and Solicitors, said, “Given the continuity of the NDA government coming out of the recent elections, the safest bet for the banking sector is the continuity of the policy on infrastructure spend. Any additional spend there has a direct fillip to lending in the banking sector, with cascading effects in the industry supply chain verticals. Accordingly, the banking sector will hope that the growth decade of India continues with heavy infra spend. One other area that I believe the banking sector will look to is some guidance and guardrail policies around prolific digitisation. With the challenge of rising frauds in the industry and the onset of generative artificial intelligence, the banking sector while already gearing up for that would be looking for common policies establishing acceptable standards. Towards that, if the government could assist in sops on the spends to establish robust departments within the banks, it will incentivise the sector to embrace the challenges quicker.”

Aastha Dhowan, Partner, N.A. Shah Associates, said, “Increase in Basic Exemption Limit: Salaried individuals are hoping for an increase in the basic exemption limit under both the new and old tax regimes to provide relief from elevated inflation and rising living costs.”

· Enhancements in limits of Section 80C and 80D Deductions: Raising of deduction quantum for medical insurance premium from ₹25,000 to ₹50,000 for individuals and ₹50,000 to ₹75,000 for senior citizens​ would help in matching rapidly increasing cost of healthcare.

· Adjustments in Income Tax Slabs: Increase in the tax exemption limits will help middle-class taxpayers navigate increasing inflation in household items and rising cost of living especially in Metros.

· House Rent Allowance (HRA) and Standard Deduction: Increase in HRA exemption and standard deduction limits will reflect current rental costs and inflation numbers. Additionally, reclassifying cities like Bengaluru, Ahmedabad and Hyderabad as metros for HRA purposes could provide higher deductions for residents​ of these cities which are now akin to any traditional metro cities.

· Separate Deduction for School Fees: Proposal to de-couple school fees from Section 80C and offering payment of same a separate deduction would encourage spending on education and reflect sensitivity towards increasing cost of education​

· Streamlining Capital Gains Tax: Simplifying the complex capital gains tax regime by unifying tax treatments for various securities and simplifying indexation provisions​ would help in government’s long term goal of making laws easy to understand for the common man

· Increase in Deduction Limit Under Section 24(b) and 80EEA: Currently, individuals can claim a deduction of up to ₹2 lakh on interest paid on home loans for self-occupied properties. Increasing this cap can provide additional relief to homeowners amid rising interest rates and property prices. This adjustment could significantly reduce the tax burden on middle-class families and boost the housing sector by encouraging home purchases​. Further, Section 80EEA provides an additional deduction of ₹1.5 lakh for interest on loans for affordable housing. This is over and above the ₹2 lakh available under Section 24(b). Increasing this benefit to more realistic numbers, especially in metro cities would further support first-time home buyers in the affordable housing segment. It may be aimed at making housing more accessible and stimulating demand in the real estate market​.

· Pre-construction Interest Deduction: For those paying EMIs on under-construction properties, interest deductions are currently allowed in five equal instalments post-completion, subject to the overall ₹2 lakh cap. Revising this provision can allow more flexibility and higher deductions during the pre-construction phase to ease the financial burden on buyers during the construction period.

Deepak Patkar, MD & CEO of SMFG Grihashakti, said, “Affordable housing should be one of the most important long-term agendas for the country. Significant changes in socio-economic and urbanisation indicators necessitate a re-alignment of affordable housing definition in many of the cities and towns. There is also a need to appropriately incentivise developers to increase the supply of affordable green housing. Given the success of earlier PMAY scheme, we eagerly await the revised contours of the PMAY-U 2.0 scheme which promises to focus on improved targeting of beneficiaries and provide timely disbursement to completed homes. We hope that the Union Budget for 2024-25 would provide directions to consolidate efforts towards 'Housing for All' initiative across all strata.”

Raju Kumar, Energy Tax Leader, EY India on the energy sector, said, “As the Union Budget of India 2024 approaches, the energy sector anticipates pivotal announcements to bolster growth and sustainability. Building on the interim budget of February 2024, which allocated significant funds for solar and green energy projects and Viability Gap Funding for wind energy, the sector hopes for further enhancements. Policy support for the green hydrogen mission to address infrastructure, storage, and transportation related challenges would be important to establish India as a global hub for green hydrogen production. On GST front, important areas to consider would be reduction in GST on hydrogen to foster greater adoption and inclusion of natural gas within the GST framework. To bolster the ambitious rooftop solarization project, DISCOMs may receive financial thrust to develop a country-wide infrastructure for transmission and metering. With regard to e-mobility, while a call to strengthen e-vehicle ecosystem was already made as part of interim budget, potential unveiling of FAME III with a higher budget allocation than its preceding versions holds the potential to impact the Indian EV landscape profoundly. Additionally, policies promoting energy storage solutions and smart grid technologies could provide a much-needed impetus. To address energy security concerns, the budget might propose measures to boost domestic oil and gas exploration. These policy interventions, coupled with initiation of skill development programs to prepare the Indian workforce for energy transition would go a long way in realising India's objective of achieving Net Zero emissions by 2070.”

Gurjodhpal Singh, CEO, Tide India, said, “India's economic engine, the vibrant SME sector, is sputtering due to a lack of reliable data that could help with devising standardised measures for the development of this sector. While better access to formal and affordable credit along with digital transformation remain the centre point of expectations, this year's budget needs to prioritise on continued support for existing schemes and digitisation initiatives.”

“In essence, the budget should prioritise a four-pronged approach: empowering SMEs by bridging the credit gap, investment in cutting-edge technologies, more focus on women-led small businesses and ensuring inclusive growth.”

“Empowering SMEs with easier access to formal credit, promoting financial inclusion through digital literacy initiatives and fostering digital adoption will unlock their true potential. Moreover, the existing INR 10,000 Cr allocation is a commendable starting point, but to unlock the full potential of India's SME and startup ecosystem a higher fund allocation is crucial, especially in credit guarantee schemes.”

Investment in cutting-edge technologies

While the Startup India initiative has provided valuable support, a significantly larger dedicated fund is needed to truly propel India's AI and other frontier technology sectors. This ecosystem holds the key to propelling India towards its USD 7 trillion economy target by 2030. Similarly, further investment in Skill India Digital can enhance their workforce's capabilities, as fostering innovation in emerging technology is essential to keep India competitive on the global stage.

Gautam Mehra, Partner PwC India, commented, “In our analysis, we have taken a closer look at the role of technology, transparency and trust in reshaping tax functions for the future. The study demonstrates how each of these aspects contribute towards developing a sustainable business environment and also plays a key role in nation-building.

Divided into four parts, the study looks at the following aspects:

● ‘Three key levers to build trust with stakeholders’ examines the benefits of promoting tax transparency and tax-related disclosures in building trust.

● ‘Driving connected compliance through technology’ offers solutions to streamline tax compliance processes and enhance transparency.

● ‘Four ways AI can re-engineer the tax function’ highlights the indispensable use of AI in tax and underscores how the new order of the tax world will have technology at its heart.

● ‘Tax transformation 2.0’ outlines what a future-fit tax function could entail and its contribution to the organisation’s overall business transformation initiatives.

Apurve Mehra, CEO of Biogetica, ''We commend the government's commitment to advancing quality healthcare in India and are confident that the continued reforms and policies will bolster innovation and enhance regulatory efficiency. At Biogetica, we look forward to the upcoming Union Budget and hope it will bring positive changes to the healthcare and pharma sectors. We hope that India will lead the people of the globe into an evidence-based integrative medicine system that serves patients in ways that no single system or modality can."

"The government should focus on expanding the Ayush-based healthcare and wellness sector, which is projected to reach $70 billion by next year. As we stand at a critical juncture, the right support and guidance from the government are essential to leading a transformative impact on holistic health practices in India. We urge the Government and Finance Minister to introduce a special package to bolster the Ayush sector in the upcoming budget. This will significantly improve Ayush infrastructure, research, and accessibility. Additionally, we hope Ayush products will receive subsidies and that incentives will be provided to support Ayush companies & startups."

Samir Joshi, Dean, K J Somaiya Medical College and Research Centre, said, “In recent years India has expanded her health services a lot. With opening of new medical colleges, one for each district, the way has been created for quality healthcare in future. Now is the time to strengthen the healthcare infrastructure. The focus of the budget should be to strengthen each institution be it a government one or a private one. Manpower, equipment and building infrastructure should be strengthened at each of the Government Assets. More money should be allocated to enhance the coverage of Ayushman Bharat and similar health insurance schemes for those who can not afford the private health insurance.”

“The expectations of the general public from the modern health system are very high. It is not possible to fulfil them at any one institution. Therefore, budget should invest in efficient patient transport system. Digitization should be promoted to allocate appropriate healthcare facility to the neediest patients. In a country as large as India, both Government and Private facilities have to work in tandem to deliver effective services.”

Simmardeep S Gill, MD & CEO, Sterling Hospitals, said,  "The upcoming union budget is expected to bring important changes to the healthcare sector, addressing key needs and improving services. We need rationalized GST rates and lower import tariffs on diagnostic equipment to make operations smoother and encourage local production, reducing our dependence on imports.

India has a burden of diseases like cancer, with nearly 1.5 million new cases every year and the number might increase in the future. We need more trained oncologists and radiation therapy facilities to bridge the gap in cancer care. Similarly, cardiovascular diseases remain the leading cause of death. Investing in cardiology infrastructure and specialists is also necessary.

Beyond infrastructure, innovation is key. India's medical tourism sector, valued at $9 billion, showcases potential. Health tourism in India is on the rise as NRIs flock to hospitals for cost-effective treatment. Streamlining processes and infrastructure can further enhance this sector. Similarly, the robotic surgery market is projected to grow from USD 8 billion to USD 25.4 billion by 2030. While robotic surgery holds immense promise, affordability needs to be addressed. Investing in AI and machine learning can revolutionize diagnostics and personalized care. These technologies can improve diagnostic accuracy, streamline hospital operations, and personalize patient care, making healthcare more efficient and effective. Ultimately, we look forward to a budget that meets these expectations and helps us provide accessible, affordable, and high-quality care for everyone.”

Surjeet Thakur, Founder & Director of Triotree Technologies Pvt Ltd.

As we look towards the Union Budget 2024-25, the health tech industry in India holds significant expectations. The sector seeks a robust policy framework that fosters innovation, ensures quality healthcare, and supports the industry's growth to achieve its projected $50 billion mark by 2025. Key areas of focus include reducing import duties on medical devices, streamlining GST policies, and enhancing funding for research and development. Additionally, there is a call for increased investment in healthcare infrastructure, particularly in the form of medical device parks, to boost local manufacturing and reduce dependency on imports. By addressing these needs, the Union Budget can play a pivotal role in making India a global hub for health tech and ensuring accessible and affordable healthcare for all.

Specific expectations from the Union Budget include:

Regulatory Framework: Clear and supportive regulatory frameworks for HealthTech startups and companies, ensuring compliance while fostering innovation.

Research and Development (R&D) Incentives: Tax incentives and grants to encourage R&D in HealthTech, particularly for developing innovative solutions in healthcare delivery, diagnostics, and medical devices.

Cybersecurity Measures: Investments in cybersecurity infrastructure and regulations to protect sensitive health data in digital platforms.

Incentives for Startups: Supportive measures such as tax breaks, grants, and incubation centers to foster innovation and growth in the HealthTech startup ecosystem.

Integration with Ayushman Bharat Scheme: Mandating Integration of HealthTech solutions with government healthcare schemes like Ayushman Bharat to enhance efficiency and reach.