EU Budget 2024: Rising Expectations Across Sectors

15/07/2024- As India prepares for the upcoming EU Budget 2024which is to be presented by the Minister of Finance Nirmala Sitharaman in Lok Sabha on July 23, industry leaders, economists and policymakers share their insights and expectations. This much-awaited Budget promises to deliver win-win outcomes across sectors. Pre-Budget expectations are mounting with various industries coming out with their demands and aspirations. Stakeholders are closely watching how the Budget will address key economic challenges, boost growth and support sustainable development. As the Budget unfolds, the nation envisages strategic measures that will drive progress and prosperity in fiscal year 2024-25.

Comments from industry leaders:

Akshat Seth, Managing Director & CEO, HIL Ltd.

“The government has been strongly focused on an investment-led growth strategy in recent years, which has resulted in the development of high-quality infrastructure in the country. In the Budget 2023-24, the capital expenditure of Rs 10 lakh crore was almost three times higher than in 2019-20. Despite the fiscal challenges, the government has remained committed to infrastructure spending, allocating Rs 11.1 lakh crore in the interim Budget for 2024-25, an 11% increase over the previous year. This continued focus on infrastructure and productivity-oriented capabilities has had a significant multiplier effect on economic growth and job generation. Given the success of the past few years, we expect the government to maintain its focus on investment in housing, highways and rail corridors. This will boost long-term revenue growth and sustain demand for construction and housing materials in the country, and also promote innovation in the industry. We strongly believe that this will be a catalyst for progress in building materials, sustainable practices and job creation.

Devyani Jaipuria, Professional– Vice Chairman – DPS International Gurugram, DPS Sector 45 Gurugram and DPS Jaipur.

“Given the current economic climate and the urgent need for education reform, we look forward to the upcoming budget prioritizing significant increases in education funding. We strongly advocate that the government pursue significant increases in allocations, especially for higher education institutions. Improving infrastructure, strengthening research capabilities, and ensuring the overall quality of education are key to our country’s growth trajectory. We hope to see a commitment to achieving an adequate allocation of GDP for education, paving the way for transformative reforms and the creation of new educational institutions, especially in the K-12 segment.”

Khadim Batti, Co-Founder and CEO of Whatfix:

“ANDIndia’s growing SaaS industry, fueled by a startup ecosystem, is a key driver of digitalization and has high expectations from the upcoming Union Budget 2024. The industry is anticipating streamlined regulations, tax benefits for early-stage companies, and easier access to capital. A robust digital infrastructure with high-speed internet and data centers is also critical for SaaS operations, and continuous investment is essential to strengthen the ecosystem.

Apart from infrastructure, talent acquisition and development are key. The budget should prioritise the extension of angel tax for foreign investors as foreign investment is a significant driver of growth and innovation. We also expect a revision of the ESOP tax structure to reduce the burden on employees who exercise stock options, thereby attracting and retaining the best talent. Moreover, aligning the taxation of long-term capital gains (LTCG) for unlisted companies (including both ESOPs and equity investments) with the taxation of public companies would also encourage more investment in startups.

A much larger fund dedicated specifically to AI and other frontier technologies is essential. This ecosystem is key to propel India towards its aspirational $7 trillion economy by 2030. Adoption of advanced technologies such as AI and IoT is also encouraged as they are essential for increased productivity and global competitiveness.

Skilling the workforce remains a top priority. The current AI skills gap requires government initiatives to bridge the technical skills gap and encourage industry-academia collaboration. Prioritizing AI research equips the youth with a productive future in the 21st century economy. Further investment in Skill India Digital can expand workforce capabilities, support innovation in new technologies and keep India globally competitive.

I am confident that India can lead the global digital economy by fostering a robust digital ecosystem, increasing the ease of doing business and promoting continuous learning and innovation. By addressing these expectations, the Budget can enable the Indian SaaS industry to become a global innovation leader and cement India’s position as a digital leader.”