Budget 2024 expectations from business leaders across India

The buzz around Interim budget 2024 is growing up as the day of interim budget is nearing. Already, some couple of business leaders had shared their expectations from the budget. As a follow-up to the same, here are more business leaders sharing their expectations from the budget.

Naivedya Agarwal, Co-founder & CEO, Runaya group

The Government of India has taken commendable strides, implementing favourable policies that have catalysed the evolution of a vibrant startup ecosystem within the nation. While acknowledging these achievements, we earnestly encourage the government to persist in its support, fostering an environment conducive to ongoing innovation and growth in the startup landscape.

A critical facet requiring attention is the existing exemption, currently applicable solely to Domestic Startup Companies registered post 1st Oct 2019, thereby omitting LLPs and entities registered before Oct 2019. Our plea to the government is to extend this provision to encompass LLPs, promoting an inclusive startup and business culture. Additionally, in alignment with the government’s commitment to nurturing startups, a reconsideration of eligibility criteria for entities registered post-2016 would further enhance the ecosystem’s cohesion.

Acknowledging the dynamic nature of startups, an extension of the exemption timeline linked to manufacturing commencement from 31.03.2024 to 31.03.2025 is proposed. This adjustment recognizes the burgeoning startup landscape, providing a more realistic timeframe for startups to establish manufacturing units and contribute meaningfully to the economy.

Furthermore, the turnover limit for tax exemption eligibility warrants review. Suggesting alignment with MSME provisions for medium enterprises, we propose an increase in the turnover limit from Rs 100 Cr to Rs 250 Cr. This adjustment aims to level the playing field, facilitating the growth of startups into larger entities without compromising on associated benefits.

P Venkatesh, Director, Thought Leadership, Maveric Systems Limited

In anticipation of Budget 2024 being a Vote on Account, we do not foresee major announcements but expect a continuation of fiscal prudence and a commitment to addressing the people’s needs. It is crucial to ensure that allocations for key employment generation schemes, such as MGNREGA, PMGKRA, and NRLM, mirror the levels of the preceding fiscal year, emphasising stability and sustained support for crucial programs.

The budget should maintain a focus on schemes like –

• Production Linked Incentive (PLI) scheme that provides incentives to companies to encourage manufacturing activities based on their production performance.
• High-risk, High reward that supports startups with potential for high impact but also high risk
• PRISM (Promotion of Innovation in Small & Medium Enterprises) aimed at fostering innovation in small and medium enterprises.
• Biotechnology Ignition Grant focused on supporting early-stage startups in the biotechnology sector.

In line with our expectations, the budget should prioritise subsidies for the poor, encompassing essentials like food, fertiliser, and petroleum. This commitment to supporting the under-served is integral to ensuring social welfare and stability. Additionally, the budget should concentrate on sustainable income growth in rural households, reinforcing the government’s commitment to inclusive growth. By aligning with these principles, Budget 2024 can play a pivotal role in fostering economic development and promoting an inclusive and resilient society.

Bharath Rao, Co-Founder & CEO, Emobi

One of the foremost things that the industry is keenly expecting is the changes in the FAME 2 subsidies in the Union Budget 2024. This is one of the most significant aspects and the entire ecosystem is waiting to understand how the subsidy terms will be tweaked and extended. A significant trend which I foresee will bring a new twist to the market is the rise of battery swapping companies.

Another aspect I urge the Government to consider is the difference in GST rates. Currently. EVs sold with included batteries have a 5% GST, while those sold without, especially for battery-swapping, face an 18% GST. Additionally, purchasing lithium batteries separately incurs an 18% GST, compared to the 5% GST when included in the EV purchase. This makes it difficult for companies investing in battery-swapping technology. The industry is looking forward to a budget that levels the playing field, encourages new ideas, and pushes the EV industry toward a sustainable and balanced future.

Shreya Sharma, Founder, Rest The Case

Amidst the forthcoming general elections in India, it’s important to note that the final budget will follow post-elections. Hence, the final budget will be after the election and the one that happens in February will be a temporary one.

The Finance Minister’s presentation of the Vote on Account to Parliament serves as an advance grant from the Consolidated Fund of India, bridging short-term expenditure until the new comprehensive Budget is planned post the elections.

With the new government formation in the pipeline, there’s widespread anticipation for a pro-investment budget, aligning with recent trends. With the general elections being so close, major decisions in the February budget might be limited. However, there’s a possibility of potential relief in the realm of personal income tax, potentially involving a restructuring of tax slabs and rates.