Budget 2024-25 LIVE: Long-term capital gains tax hiked to 12.5% from 10%

The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, has earmarked a substantial package of Rs 15,000 crore for Andhra Pradesh, providing a significant boost to the long-stalled Amaravati capital project. This financial injection is set to rejuvenate the ambitious vision of Chief Minister N. Chandrababu Naidu, who has long championed the development of Amaravati as a world-class capital city.

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Union Budget 2024: Finance Minister Nirmala Sitharaman took India’s startup ecosystem and venture capitalists by surprise when she announced the complete abolition of the draconian Angel tax.

"To bolster the India startup ecosystem, to boost entrepreneurial spirit and support innovation, I propose abolishing angel tax for all classes of investors," the Finance Minister said in her seventh consecutive budget speech.

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Finance Minister Nirmala Sitharaman announced on Tuesday that the fiscal deficit for 2024-25 is projected to be 4.9 per cent of GDP. Presenting the Union Budget for 2024-25, she also revealed that the government aims to reduce the fiscal deficit to 4.5 per cent by 2025-26.

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As Finance Minister Nirmala Sitharaman in her Union Budget 2024-25 speech, made some big-bang announcements for the state of Bihar, experts suggest that the Rs 26,000 crore allocation for the development of road infrastructure and building airports will provide a boost to the state. Republic Business brings to you a larger picture of Bihar’s developmental scenario and whether the Budget will bring tangible changes to the state?

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Union Budget 2024: Finance Minister Nirmala Sitharaman introduced the NPS Vatsalya scheme as part of the 2024 Union Budget. This plan allows parents and guardians to open National Pension System (NPS) accounts for their minor children, boosting early savings and investment habits.

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Union Budget 2024-25: Kamal Bali, Managing Director of Volvo India, lauded the Indian government’s 2024 budget for its focus on employment generation and skilling initiatives, highlighting its potential impact on the manufacturing sector. In an exclusive interview, Bali stressed the comprehensive and growth-oriented nature of the budget presented by Finance Minister Nirmala Sitharaman.

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Finance Minister Nirmala Sitharaman announced on Tuesday that the securities transaction tax (STT) on futures and options (F&O) trading will be increased from October 1, aiming to discourage retail investors from engaging in the risky segment. The move addresses concerns about excessive retail interest in the F&O market. 

"It is proposed to increase the rates of STT on the sale of an option in securities from 0.0625 per cent to 0.1 per cent of the option premium, and on the sale of a futures in securities from 0.0125 per cent to 0.02 per cent of the price at which such futures are traded," Sitharaman said while presenting the Union Budget for 2024-25.

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In a move to reduce the fiscal deficit to 4.9 per cent of GDP, Finance Minister Nirmala Sitharaman has announced that the Centre has marginally reduced its gross borrowing target from the markets for 2024-25 to Rs 14.01 lakh crore.  The new target represents a reduction of Rs 1.4 lakh crore compared to the previous estimate of Rs 15.43 lakh crore for the financial year 2023-24. 

Click here to read the key takeaways from the Budget 2024-25.

Lt Gen AK Bhatt (Retd.), Director General, Indian Space Association (ISpA), said, "The Union budget's vision to grow India's space economy by fivefold in the next decade demonstrates the government's strong commitment to this sector. We previously advocated for increased financial incentives to support the burgeoning space startups in the country. The announcement of a Rs 1000 crore VC fund is a step forward, addressing the funding challenges faced by these nascent ventures in this capital-intensive domain.” 

“Additionally, the proposal for establishment of 12 industrial parks across India we hope will include the space sector as this will provide a substantial boost to the space and satellite manufacturing industry, which has long called for the creation of space parks. These measures are pivotal for the growth and development of India's space ecosystem," added Bhatt. 

“While the Budget sidesteps the long-standing demands of the real estate sector, the focus on job creation, skilling and employment-linked incentives, boost to infrastructure, urban redevelopment and relaxation in income tax slabs are the big reforms that will indirectly provide a fillip to the real estate sector. The call to State Governments to reduce Stamp Duty and initiate land-related reforms that include urban planning, usage, building bylaws, and GIS mapping of land records are steps in the right direction that will not just help the sector but also be a strong growth propeller for the Indian economy,” said Samir Jasuja, Founder & CEO, PropEquity. 

Budget 2024: The government on Tuesday allocated Rs 6.21 lakh crore for the defence sector in the financial year 2024-25, marking an increase from the previous year's outlay of Rs 5.94 lakh crore. The capital outlay for defence has been set at Rs 1.72 lakh crore, constituting 12.9 per cent of the total budget of the government of India for the upcoming fiscal year.

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The Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman, has received positive feedback from Amul MD Jayan Mehta. Highlighting the budget's continuity and strategic focus, Mehta appreciated the government's clear direction towards inclusive growth, particularly through the promotion of cooperatives.

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Indian shares ended a volatile session lower on Tuesday, as gains in consumer stocks due to budget promises of higher rural spending were unable to offset the market downturn caused by an increase in taxes on equity trading. The NSE Nifty 50 ended 0.12 per cent lower at 24,479.05, while the S&P BSE Sensex settled 0.09 per cent lower at 80,429.04. Both indices experienced mild fluctuations throughout the day as the federal budget was presented, but dropped 1.6 per cent after the government announced higher taxes on capital gains from equity investments and derivatives trading.

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Budget 2024-25: Comments by Trishneet Arora, CEO and Founder, TAC InfoSec

The robust planned spends on digitisation across sectors as emphasised in the Union Budget will percolate to the enhanced need of cybersecurity across government departments, public and private enterprises. In line with the Prime Minister’s dream of Vikasit Bharat, there have been several allocations across energy, banking and innovation spaces. With cybersecurity being at the epicentre of nation’s and corporate safety, it will be safe to say that the time for the Bharat-first security solutions is now. Besides, the abolition of Angel Tax will also be a boost to the investment ecosystem for young and promising Indian entrepreneurs.

Comments by Manoj Kumar Singh, Chief Secretary cum Infrastructure & Industrial Development Commissioner of Government of Uttar Pradesh

We commend the Finance Minister’s announcement on promoting pumped storage projects.  Uttar Pradesh already has a robust policy in place for pumped storage, and this new initiative will empower our ongoing projects. This policy will significantly enhance electricity production capabilities and ensure a reliable power supply, aligning perfectly with our commitment to sustainable energy solutions.

He further added, "This initiative will bring substantial benefits to the people of Uttar Pradesh, notably our farmers, by facilitating improved irrigation and more stable energy access. By supporting the seamless integration of renewable energy into the grid, we can ensure a brighter and more sustainable future for all.

Budget 2024-25: Comment by Atif Shamsi, CEO & Founder at OuchCart

It is an integral part of ease of doing business reforms, and subnational deregulation aimed at reducing the compliance burden of MSMEs. As of now, compliances run to over 750 annually for MSMEs, with an estimated ₹12 lakh crore cost incurred for the same. The maze of these regulations has reportedly retarded their growth—it is stated that about 64% of MSMEs reported compliance as a huge challenge. Streamlined, these two processes can help save billions in compliance costs and hundreds of work hours annually. This is also in step with India's vision to break into the top 50 in the World Bank Ease of Doing Business rankings from its current position of 63rd. Coupled with simplification of regulations at the state level, it has the potential to unlock the actual potential of the MSME sector accounting for 95 percent of India's industrial units. Coupled with access to credit, this could be transformative for the 63.4 million MSMEs in India.

Union Budget 2024-25: Comment by Vineet Arora, who manages the Singapore-based NAV Capital Emerging Star Fund

The budget is a well-balanced one, with a significant emphasis on growth and MSME. This focus is crucial for India's economic development and the generation of employment opportunities. Another noteworthy aspect is the government's attention to infrastructure development, with a substantial allocation for capital expenditure, which accounts for around 3.4% of GDP. The government has successfully combined high capex and met the expectations of its political allies. It has also catered to the needs of the middle class. However, the increase in STCG and LTCG may have a negative impact in the short term, but it is expected to help in stabilizing the market and attracting investors with a long-term perspective on the Indian economy.

Budget 2024-25: Comments by Dr. Apoorva Ranjan Sharma, Co-founder, and Managing Director of Venture Catalysts++

Today's budget announcement by the Finance Minister is a game-changer for India's space economy and startup ecosystem. Finally after 13 years the draconian angel tax has been abolished providing a major relief for Investors, startups, encouraging more early stage investments and reducing financial burdens. This move fosters a more conducive environment for innovation and entrepreneurship, demonstrating the government's commitment to nurturing a vibrant startup ecosystem. However, we need to wait for the final print to understand the impact.

At Venture Catalysts, we are thrilled by the government's ambitious plan to expand the space sector fivefold over the next decade. The establishment of a Rs 1,000 crore venture capital fund is a bold step that will provide the necessary capital to fuel innovation and growth in this critical industry. This fund will enable startups to scale operations, invest in cutting-edge research, and bring groundbreaking technologies to market.

We are committed to supporting entrepreneurs driving this revolution and look forward to partnering with the government to ensure India leads the global space economy.

Budget 2024-25: Comments by Veer Mishra, Founder of PLUS

The Union Budget has delivered a mixed bag for the market. While the reduction in customs duty on precious metals is expected to boost investor sentiment, the changes in the taxation of financial instruments could dampen enthusiasm. The abolition of angel tax is a major positive for startups and the overall investment climate. However, the new tax regime for long-term capital gains could impact investor returns. The market is likely to remain volatile in the near term as investors digest these announcements.
 

Sagar Agarwal, Co-Founder and Managing Partner of Beams Fintech

Beams Fintech welcomes the government's decision to abolish the angel tax, a move that brings significant relief to the startup ecosystem. This progressive step will undoubtedly encourage more investments, reduce financial burdens, and create a more favorable environment for innovation and entrepreneurship. It reflects the government's commitment to fostering a vibrant startup culture and supporting the growth of new ventures.

The announcement regarding long term capital gains tax rate being brought down to 12.5% for financial assets, as opposed to the previous rate of 20% with indexation benefit, is a positive development for financial investments and especially funds like ours (private equity and venture capital funds). The reduced tax rate means a direct reduction in the cost of the sale of assets. This will result in higher overall returns and lower taxation for investors, which is beneficial for everyone, individuals, investors and private asset managers such as us.

At Beams Fintech, we believe that these changes, taken together, demonstrate a balanced approach by the government to stimulate economic activity while ensuring a fair tax regime.

Amid the flow of post-budget industry reactions, Janmahay Sinha, Chairman of the Boston Consulting Group, has expressed relief and satisfaction with the Union Budget 2024, highlighting its strong movement towards fiscal consolidation. 

"The overall movement on fiscal consolidation has been accelerated," he said, noting that the fiscal deficit target has surpassed expectations, reaching 4.9 per cent, with a further reduction to 4.5 per cent target for the next year.

Asserting that internships for one crore youth was a step for making them job-ready, Prime Minister Narendra Modi on Tuesday said that the Union Budget 2024-25 will give a new boost to education and skill development. 

Prime Minister Narendra Modi said, "In the last 10 years, 25 crore people have come out of poverty. This budget is for the empowerment of the new middle class. The youth will get unlimited opportunities from this budget. Education and skill will get a new scale from this budget. This budget will give power to the new middle class. This budget will help women, small businessmen, MSMEs."

Comment by Prashant Bhonsle, Founder of Kuhoo Edufintech

Kuhoo applauds the government's initiative to provide a 3% interest subvention on loans up to Rs 10 lakh for higher education. This will significantly reduce the financial burden on students, making quality education more accessible. Moreover, the new centrally sponsored scheme under the Prime minister's package for skill development, in collaboration with state governments and industry, is a commendable step. Over the next five years, this will equip students with essential skills, enhancing their employability.

The allocation of Rs 1.48 lakh crore for education, employment, and skilling in the Union Budget reflects a strong commitment to building a robust and inclusive education system. At Kuhoo, an education loan platform, we are dedicated to supporting these transformative initiatives and empowering students to achieve their educational and career goals.
 

Comment by Kirang Gandhi, Personal Financial Mentor

The 2024 Budget has increased the short-term capital gains (STCG) tax to 20% and the long-term capital gains (LTCG) tax to 12.5%. This has caused some market instability as investors react to the higher taxes. While the goal is to raise more revenue, these changes might discourage short-term trading and make long-term investments more attractive, potentially changing how the market behaves in the coming months.

Comment Mamta Shekhawat, Founder of Gradding.com

It is the first budget of the Modi 3.0 cabinet. The youth are one of the main focus points in this budget. The future of the nation has high expectations amid all the ongoing crises in the country. The budget highlights include 5 job schemes along with skill development of 4.1 crore youth. Moreover,  1.48 lakh crore rupees for education, employment and skilling are allocated. However, the revision of the skilling loan scheme will give up to 7.5 lakh rupees loan to 25000 students every year. The students who are ineligible for any scheme will get financial support of 10 lakh rupees to pursue higher education at domestic institutes.

The continuous effort of the government is worth appreciating, as the centrally sponsored schemes will benefit 20 lakh youth in the period of 5 years. The announced upgrade of 1000 industrial institutes will help shape the careers of the youth. Aspiring students can avail themselves of internships in the top 500 companies across Bharat in the next 5 years with an allowance of INR 5000. The students who are looking to go abroad can even stay here as 12 industrial parks are sanctioned under the National Industrial Corridor Development Programme.

Till the time, IT parks are being built, you can pursue education in your dream land Further, you can assure your future in India with the help of various schemes mentioned and sanctioned in this budget. The extended financial support will allow the students to pursue the course of their choice without financial hindrances. The alignment of the course content and design will help the students to be industry-ready and overcome workplace challenges. However, the new courses are expected to align with the international skill requirement so that many paths will be open across the globe.

Comment by Siddharth Maurya, Founder & Managing Director of Vibhavangal Anukulakara Private Limited

EPFO finds a place in the 2024-25 budget, and probably its function is also linked to education and employment. Therefore, this Rs 1.48 lakh crore along with the Rs 3,000 monthly reimbursement scheme becomes a massive public investment in human resources. This approach finds a comfortable place in the globally practiced integration of social security with skill development.

Coupling the EPFO contribution to new employment, the Government would be using Social Security measures as a lever for job creation.

Result-oriented continuation of Schemes of Interim Budget will hint that perennial vision exists towards Workforce Development, which must in principle proceed to address fundamental challenges like Youth Unemployment and Underemployment. This policy therefore creates a win-win situation for both employers and employees, possibly leading to accelerated economic growth and improvement in the overall quality of employment in India through increased participation in the formal sector.

Benchmark indices declined on Tuesday after the government proposed to raise the tax on capital gains and on trading derivatives, which analysts said could hit the markets in the short-term.

The Union Budget for 2024-25 has hiked the Long-term capital gains tax to 12.5 per cent from 10 per cent, while short-term capital gains tax on some assets would be 20 per cent.

Further, LTCG not taxable limit has been increased from Rs 1 lakh to Rs 1.25 lakh.

Capital gains as of now now taxed from 10 per cent to the highest nominal rate of 30 per cent, depending on the holding period, which varies from one to three years.

Fiscal deficit 2024-25 is estimated at 4.9% of GDP. The aim is to reach the deficit below 4.5%: FM Sitharaman.

Tourism has always been a part of our civilisation. Our efforts to position India as a global destination will also create jobs and unlock opportunities in other sectors. I propose Vishnupath temple at Gaya, and Mahabodhi temple in Bodhgaya are of immense spiritual importance. We will develop corridors there on the model of the successful Kashi Vishwanath corridor to make them a world-class tourist destination. A comprehensive development initiative for Rajgir and Nalanda, in Bihar will be pursued. We will support tourism in Odisha that has scenic beauty, temples, craftsmanship, natural landscapes, wildlife sanctuaries and pristine beaches.: FM Sitharaman

The government has proposed to set up a venture capital fund of Rs 1000 crore for the space economy: Union Finance Minister Nirmala Sitharaman.

In the Budget announcement today, Finance Minister Nirmala Sitharaman outlined a sweeping set of initiatives aimed at boosting youth employment and incentivising job creation in the Union Budget 2024. This marks the first budget of Prime Minister Narendra Modi’s third term and Sitharaman's seventh as Finance Minister.

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Finance Minister Nirmala Sitharaman on Tuesday began presenting the Union Budget 2024-25 with a focus on the agricultural economy and a boost to employment. The FM announced five new schemes with a central outlay of Rs 2 lakh crore. She announced a Rs 26,000 crore investment for four road-building projects, new medical colleges, and airports in Bihar.

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In a move aimed at boosting employment and promoting workforce participation, the government unveiled three new employment-linked schemes as part of the Union Budget for 2024-25. Finance Minister Nirmala Sitharaman, while presenting the budget on Tuesday, July 23, outlined key initiatives designed to support youth entering the job market, enhance women's workforce participation, and develop climate-resilient agriculture.

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PM Suryaghar Muft Bijli Yojana has been launched to install rooftop solar panels to enable 1 crore households to obtain free electricity upto 300 units each month. This scheme will further encourage it: FM Sitharaman.

The Government will launch a scheme to provide internship opportunities to 1 crore youth in 500 top companies with Rs 5,000 per month as internship allowance and one-time assistance of Rs 6,000: FM Sitharaman.

For facilitating term loans to MSMEs, a credit guarantee scheme will be introduced. The scheme will operate on the cooling of credit risks of such MSMEs. A self-financing guarantee fund will provide to each applicant cover of up to Rs 100 crore while loan amount may be larger: FM Sitharaman

3 crore additional houses under PM Awas Yojana in rural and urban areas in the co8untry have been announced for which the necessary allocations are being made: FM Sitharaman.

Will facilitate spherical financial support through multi8;lateral development agencies. In current FY, Rs 15000 crore will be arranged with additional amounts in future years. Govt committed to financing and completion of Polavaram Project which is the lifeline for Andhra Pradesh and its farmers: FM Sitharaman.
 

New airports, medical colleges and sports infrastructure in Bihar to be constructed. Additional allocation to support capital investments will be provided. Request of Bihar Govt for external assistance from multilateral development banks will be expedited: FM Sitharaman

Mudra loans to be enhanced to Rs 20 lakh from Rs 10 lakh: FM Sitharaman

Our govt has made efforts to fulfil the commitments in Andhra Pradesh Reorganisation Act. Recognising the state's need for capital, we will facilitate special financial support through multilateral agencies. In the current FY, Rs 15,000 crore will be arranged with additional amounts in future years: FM Sitharaman.

On the Amritsar-Kolkata industrial corridor we will support the development of an industrial nod at Gaya in Bihar. It will catalyse the development of the easter region. We will also support the development of road connectivity projects- Patna -Purnea expressway, Buxar- Bhagalpur highway, Bodhgaya- Rajgir-Vaishali- Darbhanga and an additional two-lane bridge over river Ganga in Buxar for Rs 26,000 crores: FM Sitharaman

Govt to bring 3 schemes for employment-linked incentives as part of PM's package. These will be based on enrollment in the EPFO and focus on recognition of first-time employees and support to employees and employers.

Scheme A: First-timers

This scheme to provide one-month wage to all persons newly entering workforce in all formal sectors. Direct benefit transfer of one month's salary in 3 instalments to first-time employees as registered in the EPFO will be upto Rs 15,000. The eligibility limit will be a salary of Rs 1 lkakh per month. Scheme is expected to benefit 210 lakh youth.

Scheme B: Job creation in manufacturing

This scheme will incentivise additional employment in manufacturing sector linked to employment of first0-time employees. Incentive will be provided at specified scale directly both to employee and employer wrt EPFO contribution in the first four years of employment. Scheme expected to benefit 30 lakh youth entering employment and their employers.

Scheme C: Support to employers

This will cover additional employment in all sectors. All additional employment within a salary Rs 1lakh/month will be counted. Govt to reimburse to employers upto Rs 3000/month towards EPFO contribution for two years towards EPFO contribution for each additional employee. Scheme expected to incentivse additional employment of 50 lakh persons.

Scheme D: Skilling & collaboration with state govts

20 lakh youth will be skilled over a 5 year period. 1000 industrial training institutes will be upgraded in hub and spoke arrangement with outcome orientation. Course content to be aligned with the skill needs of industry. Model skill-loan scheme to be revised to facilitate loans upto Rs 7.5 lakh with a guarantee from a Govt promoted fund.

Govt to bring National Corporation Policy for systematic orderly, and all round devel0pment of corporative sector … This year, I have made a provision of Rs 1.52 lakh crore for agriculture and allied sector: FM Sitharaman

Aims implementation of digital public infrastructure for coverage of farmers and their lands in three years. During this year, digital crop survey for Kharif using DPI will be taken up in 400 districts: FM Sitharaman

Budget to focus on employment, skilling, MSMEs and the middle-class: FM Sitharaman

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India's inflation remains stable and continues to move towards the 4% target: FM Sitharaman

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People of India have reposed their faith in the government led by PM Narendra Modi and re-elected for a historic 3rd term under his leadership: FM Sitharaman.

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“Over the years, we have learnt to not have high expectations from this government's budgets. We will have to see what they come up with…,” says Congress MP Shashi Tharoor.

All eyes are on Finance Minister Nirmala Sitharaman who is set to present Union Budget 2024-25. According to sources following announcements are likely to be made during the budget:

• New bullet corridor
• Ayushman bharat to include all senior citizens
• PLI scheme for manufacturing sector to be strengthened
• New PLI for toys and leather goods sector
• Rural demand to be targeted
• Kisan credit card limit could go up from Rs 3 lakhs to Rs 5 lakh
• A new digital agricultural mission might be announced
• Election promises to be fulfilled

Finance Minister Nirmala Sitharaman arrives in Parliament to present Union Budget 2024. Earlier in the day, she called on President Droupadi Murmu before heading towards the Parliament.

As Finance Minister Nirmala Sitharaman is set to announce the Union Budget 2024 approaches, capital market experts Sushil Kedia and Ajay Bagga, in an exclusive conversation with Arnab Goaswami, Editor-in-Chief, Republic Media Network, have voiced concerns regarding India's complex taxation system and its impact on market sentiment and business forecasts.

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Finance Minister Nirmala Sitharaman meets President Droupadi Murmu at Rashtrapati Bhavan, ahead of the Budget presentation at 11 am in Parliament.

"...In budget, what are they going to do for the farmers, unemployment, inflation and how will it be controlled? How will this issue be addressed, the way the rupee is falling, nothing is being done about the medium and small industries. Will this budget be for some selected friends of PM Modi like the previous budget, this is what we are waiting for...," says Congress MP Pramod Tiwari.

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J&K budget copies arrive in Parliament; Union Finance Minister Nirmala Sitharaman will present the estimated receipts and expenditure (2024-25) of the Union Territory of Jammu and Kashmir (with legislature) in Parliament today.

Image credit: ANI

"We expect that this budget will be proven to be a milestone in the journey of Viksit Bharat. The economic survey that was presented yesterday made it clear that our growth rate has increased to 8.2 which was 6.5, earlier; the employment rate has decreased and all our economic activities have strengthened. The budget that'll be presented today, will benefit Uttar Pradesh as well..." said Uttar Pradesh Finance Minister Suresh Kumar Khanna. 

Finance Minister Nirmala Sitharaman heads to Rashtrapati Bhavan to call on President Draupadi Murmu, ahead of Budget presentation at 11am in Parliament.

Finance Minister Nirmala Sitharaman along with her team with the Budget tablet outside the Ministry of Finance in North Block.

She will present the Union Budget today at around 11 AM in Lok Sabha.

Benchmark indices opened higher on Tuesday ahead of Finance Minister Nirmala Sitharaman's budget announcement.

As of 9:19 am, Sensex was trading 176.38 points higher at 80,678.45 and Nifty 50 was trading 43.7 points higher at 24,552.95.

Minister of State for Finance Pankaj Chaudhary has said that the upcoming Union Budget for 2024-25, marking the first budget of Prime Minister Narendra Modi's third term, will reflect the guiding principle of "Sabka Saath Sabka Vikas" (Together with All, Development for All). 

Finance Minister Nirmala Sitharaman is set to present the budget, which will be anchored in PM Modi's vision of fostering inclusive growth and development across all sectors of society.

Despite Nifty trading in the red for most of the session, FIIs were net buyers, investing Rs 3444 crore. Gift Nifty is on the rise this Tuesday morning, with bullish hopes pinned on the Finance Minister's economic blueprint, which could propel Nifty to the 25000 mark. The market anticipates a fiscal deficit reduction to 4.5% of GDP by 2025-26. FM Sitharaman is expected to deliver a balanced budget focused on job creation, capex, manufacturing, infrastructure, the rural economy, and deficit control. 

Key Q1 results from BAJAJ FINANCE, HUL, ICICI PRULIFE, M&M FIN, SRF, and TORRENT PHARMA are due today. Investor confidence is growing amidst economic dynamism, with significant gains in Nifty levels and market cap since 2014. Preferred trades include buying Nifty and Bank Nifty in specified zones, with aggressive targets highlighted. BALRAMPUR CHINI, COFORGE, and NTPC are poised for a potential breakout.

Finance Minister Nirmala Sitharaman has arrived at the Ministry of Finance, set to present the Union Budget 2024 today. Her arrival marks the final preparation before delivering the budget address, which is anticipated to outline key fiscal policies and economic strategies for the upcoming financial year. 

Finance Minister Nirmala Sitharaman has departed for North Block to present the Union Budget 2024. As she heads to the venue, anticipation builds around her address, which is expected to outline the government's fiscal policies and economic strategy for the upcoming financial year. 

Sitharaman's speech will be keenly watched for its potential impact on economic growth and market dynamics.

Chief Economic Advisor V Anantha Nageswaran arrives at the Ministry of Finance, ahead of the Union Budget presentation
 

GIFT Nifty is trading slightly higher, up by 0.1 per cent or 24 points, at 24,536 ahead of the Union Budget 2024. Investors are cautiously optimistic, anticipating key economic reforms and fiscal measures from Finance Minister Nirmala Sitharaman's presentation, which could influence market sentiment further.

“If not this time when? This is high time that common people get some tax relief. Government need to focus on the 66 per cent of India living in rural India which is growing at 4 per cent over the last five years whereas urban India is growing at 8-9 per cent. The purchasing power of people is going down. Even though we have a consumption class in the country, the fraction is not that high and I am hopeful that the government will focus on this,” said Ajay Bagga, Market Expert. 

Stock market on Budget day: Budget days are marked with volatility with sectors and stocks reacting budget proposals announced during the Finance Minister's speech. The Union Budget is one of the most anticipated events in the Indian financial calendar. Over the past decade, the performance of the Indian stock market on Budget day has reflected investor sentiment and market expectations.

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The Finance Minister will also present, under subsection (1) of Section 3 of the Fiscal Responsibility and Budget Management Act, 2003, copies of the following documents in both English and Hindi: the medium-term fiscal policy strategy statement and the macroeconomic framework statement.

Finance Minister Nirmala Sitharaman is set to present the Union Budget 2024 in Parliament today at 11:00 AM. This marks her seventh consecutive budget presentation, a record-breaking achievement surpassing former Prime Minister Morarji Desai's six budget presentations. Here’s how you can catch all the action live. 

Live Streaming Details

You can follow the live updates of the Union Budget 2024 through the Republic TV news channel along with Republic TV and Republic Business Live stream. 

Republic TV and Republic Business YouTube channel will broadcast the speech live on television, YouTube, and social media platforms.

Live updates will also be available on Republic World and Republic Business’s official website.
 

“Even though this is a coalition government, things are moving as before and no major change is visible as of now. In post-COVID-19, India’s focus on boosting the supply chain has given us an upside over other economies that were putting money in the hands of people to drive consumption. Now, that the recovery has happened there are more chances of change in tax slabs, and the consumption-led story being introduced, and that is going to be the focus of the budget,” said Rajiv Gupta, Senior Economist. 
 

Manoranjan Sharma, Chief Economist, Infomerics Ratings, said, “Even though the Finance Minister will aim to continue to have good momentum, there will be a sharper focus on economic growth, structural transformation, along distributive equity. For India to grow in a sustained manner, all four engines of consumption, investment, government expenditure, and net exports have to work in coordination.” 

Sharma also shared that he expects some relief for common taxpayers and a boost to MSMEs. 

“One of the biggest expectations is to fulfil the guarantees that the Prime Minister has promised in the last six months during the campaign. The PM will try to deliver on his promises, and this might be reflected in the budget,” said Ajay Dua, Former Commerce Secretary, GOI 

“We are on the right path despite global headwinds. The Economic Survey has drawn attention to the need to keep consumption increasing. The Finance Minister will face challenges on one hand to increase consumption and, on the other, to incentivise the private sector,” added Dua.  

Even as the Indian stock market ended on GIFT Nifty, the futures contract linked to Nifty 50 index, has been trading higher ahead of Union Budget announcement.

As of 6:45 am, GIFT Nifty was trading 0.18 per cent higher at 24,555.5 on the NSE International Exchange.

Input by Delphin Varghese - Co-founder and Chief Revenue Officer, AdCounty Media

The Indian advertising industry is projected to grow at a CAGR of 9.86 % and surpass the 1 lakh crore mark by 2025. This upward trend can be attributed to digital advertising which has emerged as one of the fastest growing segments in the world. Digital is dominating the APAC ad market and it is anticipated to grow at 8.5% in 2024.

Therefore, the Union Budget 2024 ought to direct its focus towards the digital ecosystem encompassing initiatives to broaden infrastructure, bolstering digital and physical marketing initiatives, to help brands connect with their audiences at scale. Also, exemptions in taxes and duties like subsidies or accessible credit could significantly benefit the advertising sector and boost employment opportunities through startups. With the rampant growth of AI, the need to develop a robust cybersecurity infrastructure to protect consumer data while leveraging personalisation is now more crucial than ever.

Comments by Hariom Seth, Founder, Tagglabs

The government must promote new technology experiences such as AI, AR, VR and mixed reality. Entrepreneurs can build apps, websites and experiences that not only solve ground-level problems, but also act as a platform for various advertisers to create more engaging and memorable brand engagements. Policymakers, however, should also support these entrepreneurs with data security/privacy and promotion of their platforms. If a platform provides engaging and fundamentally useful experiences to the public, these platforms automatically build trust with the users becoming a more effective mode of brand promotion for advertisers.

Advertisers cannot just play 2D content on these platforms but experiment with interactive/gamified, 3D assets and environments. Promoting new technologies will inspire the people to solve real-world problems by experimenting with them. However, it does concerns about data privacy, biases, job displacement and other ethical issues. AI-driven solutions might increase efficiency but they collect vast amounts of data which will indeed create data security concerns. Also, biases might seep into AI algorithms leveraged by these platforms. Ethical concerns regarding inappropriate product placement might also crop up in platforms utilising AR and VR.

Comments by Anup Garg, Founder and Director, WOCE (World Of Circular Economy)

As the 2024 Union Budget approaches, the World of Circular Economy (WOCE), a global leader in sustainable solutions, urges the government to prioritise sustainable investments for micro, small, and medium-sized enterprises (MSMEs). MSMEs contribute 30% to India's GDP and significantly impact the nation's carbon footprint, crucial for achieving India’s net-zero goals.

Anup Garg, Founder and Director of WOCE, states, "Government intervention is vital to integrate sustainable practices and ensure global competitiveness. MSMEs face financial and resource challenges, making it essential for the government to support sustainable investments."

MSMEs account for nearly 90% of businesses worldwide, contributing over 60% of CO2 emissions annually, including 110 million tonnes in India alone. “WOCE aims to help MSMEs reduce Scope 3 emissions—the indirect emissions from supply chains. With proper advisory and solutions, a global reduction of 10-15% in Scope 3 emissions is achievable,” says Garg.

He adds, “MSMEs are the economy's backbone but often lack sustainability guidance. Our solutions help large corporates and MSMEs comply with ESG requirements, improve sustainability ratings, and drive global decarbonisation." Last year, WOCE Solutions measured 127,511,197 kg of CO2e, including 23,923,100 kg from Scope 3 emissions.

WOCE urges the government to consider the following budget demands:

1. Introduce a five-year tax break for MSMEs embracing green technologies
2. Incentivise companies with a five-year year tax break, reinvesting profits up to Rs 1.5 crore in the sustainability domain
3. Establish a green curation fund to support companies switching to renewable energy
4. Provide relocation compensation to companies moving to hinterlands
5. Compensate MSMEs up to INR 15,000 for each job (up to INR 30,000/month remuneration) created in sustainable manufacturing
6. Provide direct tax concessions to carbon-intensive manufacturers complying with ESG and sustainability standards
7. Offer incentives for MSMEs to adopt digital solutions for efficient ESG reporting

A beginning has already been made by WOCE in the ESG space. It has introduced an AI-powered platform called esgpro.ai to enable India Inc to actively engage in sustainability, especially as ESG reporting requirements become more stringent. The right support can accelerate India’s transition to a sustainable economy.

The Executive Director of Century Ply - a leading manufacturer of wood panel and decorative products - Keshav Bhajanka, in an exclusive interaction with Republic Business on Monday, speaks about the primary expectations from the upcoming budget for 2024 slated on Tuesday, challenges faced by the manufacturing industry, the Make in India initiative, and much more.  

"We should look at the budget in two parts - short-term and long-term. In the long term, the government has been investing in the past two years in a substantial manner on the infrastructure. I think this commitment to improve our infrastructure and to increase long-term spending on infrastructure is going to help all industries including manufacturing, real estate, etc," said Bhajanka. 

Read the full story here. 

To improve insurance penetration and affordability in India, the insurance industry is looking forward to tax relief on insurance products. Varun Dua, Founder and CEO of ACKO Insurance in an exclusive conversation with Republic Business “Nation Wants to Grow” highlighted key areas where changes could benefit both the industry and consumers.

Read the full story here. 

Automotive Components Manufacturing Association (ACMA), the apex body representing India’s auto component sector, has also submitted its recommendations for the forthcoming Union Budget 2024-25 to the Ministry of Finance as also to the Ministry of Heavy Industries, the nodal ministry for the automotive industry. 

In its recommendations to the government, ACMA has proposed several key measures to further bolster the sector. 

Read the full story here. 

As Union Budget 2024 approaches, experts are strongly advocating for an increase in the Section 80C deduction limit. The move aims to ease the tax burdens faced by the middle class amidst rising living costs and constrained tax exemptions.

Read the full story here. 

Ajay Kanwal, CEO & MD Jana Small Finance Bank has said that there should be a specific tax programme for savings in banks.  

In a pre-budget interview with Republic Business, Kanwal said this would help bring more cash into the banking system.  Stating that the country has been sharp on fiscal prudence, Kanwal said having a growth-oriented Union Budget is the most likely answer.  

Read the full story here. 

Sudhir Sitapati, Managing Director and CEO of Godrej Consumer Products in an exclusive conversation with Republic Business “Nation Wants to Grow” highlighted the need for Budget 2024 to focus on enhancing domestic consumption, particularly within India's rural economy. 

Sitapati highlighted that while India's GDP grew by about 8 per cent last year, domestic consumption lagged at only 4 per cent. This disparity, he suggests, is indicative of slower growth at the bottom of the economic pyramid, which poses challenges for the overall economic health of the country.

Read the full story here. 

The Economic Survey 2023-24 has highlighted the substantial uncertainty AI brings to workers across all skill levels, cautioning that this will create challenges for India's sustained high growth rates in the coming years and decades.

In the preface, Chief Economic Advisor V. Anantha Nageswaran said that "deploying capital-intensive and energy-intensive AI is probably one of the last things a growing, lower-middle-income economy needs." He added that the corporate sector must consider how AI can augment rather than displace labour.

Chandni Chowk BJP MP Praveen Khandelwal described the Economic Survey presented by Union Finance Minister Nirmala Sitharaman in Parliament as an important document for a developed India. He stated that the Economic Survey is a significant step towards Prime Minister Narendra Modi's vision of a developed India, which clearly shows the rapidly growing GDP and the declining unemployment rate.

Khandelwal said, "This Economic Survey has placed special emphasis on the private sector, PPP, and the agriculture sector, and the country's GDP growth is estimated to be between 6.5 to 7 per cent, which is a positive sign for trade and the economy."

Reacting to the Economic Survey 2023-24 tabled in Parliament, Sanjiv Puri, President of the Confederation of Indian Industry (CII), expressed confidence that India's GDP growth for FY25 will exceed the forecast provided in the Survey. He suggested that under certain conditions, the economy could achieve an 8 percent growth rate.

"The Survey is positive about the India growth story, and I am confident that India's GDP growth for FY25 will surpass the forecast given in the Survey. It has the potential to reach 8 percent, driven by excellent macro-financial management and a facilitative policy environment that includes a thrust on capital expenditure and inflation control," Puri said. He added that a consensus on the reform agenda among the central government, state governments, and the private sector is key to achieving sustained growth of 7 percent or more.

Budget 2023-24: The Economic Survey 2023-24 provides a comprehensive analysis of the performance of India's banking sector and the availability of credit. This article explores the key developments in the banking sector, highlighting improvements in asset quality, credit growth, and deposit growth.

Click here to read the full report.

Tax programme for savings: Ajay Kanwal, CEO & MD Jana Small Finance Bank has said that there should be a specific tax programme for savings in banks.  In a pre-Budget interview with Republic Business, Kanwal said this would help bring more cash into the banking system.  Stating that the country has been sharp on fiscal prudence, Kanwal said having a growth-oriented Union Budget is the most likely answer.

Click here to read the full report.

Economic Survey 2024: The Economic Survey has highlighted that India should harness the potential of the tourism sector as a crucial opportunity for job creation. Amidst the challenges faced by the services and manufacturing sectors due to AI advancements, protectionist measures, and supply chain issues, tourism presents a relatively straightforward avenue for employment growth.

Click here to read the full story.

Economic Survey on MSMEs: India's micro, small, and medium enterprises (MSMEs) continue to face extensive regulation and compliance requirements, according to the Economic Survey presented on Monday. Access to affordable and timely funding remains a major concern for these enterprises.

The Survey for 2023-24, tabled in Parliament, recommended reducing the compliance burden on MSMEs to improve their growth prospects. It suggested easing compliance requirements through a single-window mechanism for clearances, digitisation of processes, and equipping MSMEs to handle these processes more efficiently. Additionally, it called for grassroots-level facilitation to ensure market access for MSME products.

Click here to read the full article.

 Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE on the Economic Survey

India's economic performance in FY24 surpassed expectations, registering a robust growth rate of 8.2%. This momentum is noteworthy, considering three out of the past four quarters exceeded the 8% growth mark. The Economic Survey for FY25 projects a growth rate range of 6.5-7%, further solidifying India's strong macroeconomic fundamentals. Inflation is also anticipated to moderate to around 4.5%, reflecting a well-balanced economic environment. The survey acknowledges the real estate sector, particularly the residential segment, as a significant driver of private investment.

The survey emphasises the importance of continued collaboration between central and state governments, along with the private sector, to sustain this momentum. India's post-pandemic recovery has been orderly and expansive, a testament to the underlying resilience of the economy. Looking ahead to FY25, several indicators such as robust private consumption, increased bank lending activity, and improved corporate capital expenditure indicate towards a good year ahead.

Job market bounces back: The Indian labour market has witnessed notable improvements in recent years. According to the PLFS, the unemployment rate has fallen to 3.2 per cent in 2022-23, a notable decline from previous years, according to Economic Survey 2023-24. This reduction highlights the resilience of the job market as it recovers from the disruptions caused by the COVID-19 pandemic.

Click here to read the full report.

Affordable housing’s big bet: The Union Budget 2024 could mark a significant turning point for India's affordable housing sector, which has been on a decline in recent years. With the luxury home market thriving, affordable housing has been struggling, but new budget proposals might just breathe new life into it, say experts.

Click here to read the full report.

Trade deficit: India's trade deficit is expected to decline further as the Production-Linked Incentive (PLI) scheme is expanded, fostering a globally competitive manufacturing base across several product categories, the economics survey mentioned on Monday.  Despite ongoing geopolitical headwinds impacting merchandise exports, the fall in international commodity prices has ensured a lower trade deficit in FY24 compared to FY23. This positive trend is highlighted by the current account balance, which ended with a surplus of 0.6 per cent of GDP in Q4 of FY24.

Click here to read the full report.

Economic survey on obesity: The Economic Survey 2023-24 has raised concerns over the growing obesity rates in India and the increased consumption of highly processed foods rich in sugars and fats, noting that 54 per cent of the country's total disease burden is due to unhealthy diets.

Obesity presents a "concerning situation," and preventive measures are necessary to promote a healthier lifestyle, according to the survey tabled in Parliament on Monday by Finance Minister Nirmala Sitharaman.

Click here read the full story.

Eco Survey 2023-24: The Indian economy needs to create nearly 78.5 lakh jobs annually in the non-farm sector until 2030 to accommodate the growing workforce, according to the Economic Survey for 2023-24 presented on Monday.

Click here to read the full report.

PLI scheme in auto sector: According to the Economic Survey 2023-24 presented in Parliament, the Production Linked Incentive (PLI) scheme for the automobile and auto components sectors has accumulated investment proposals, that total Rs 67,690 crore. As of the end of March 2024, Rs 14,043 crore has been invested under the PLI scheme which aims to boost manufacturing in these critical sectors, says Economic Survey.

Click here to read the full report.

Economic Survey 2023-24: Financial intermediation is a cornerstone of economic growth, playing a vital role in the efficient allocation of resources. The Economic Survey 2023-24 sheds light on the intricate relationship between financial development and economic growth, stressing the importance of sound financial intermediation.

Click here to read the full report.

Economic Survey 2024: The nation’s economy is projected to grow at a rate of 6.5-7 per cent in the current financial year, according to the Economic Survey for 2023-24 presented by Finance Minister Nirmala Sitharaman, a day ahead of the Budget presentation.

Click here to read the complete report.

Economic survey on pharma: The Economic Survey 2023-24, presented in Parliament on Monday, highlighted the need for skill advancement, innovation, and a robust supply chain to drive the domestic pharmaceutical industry's growth, with the segment projected to reach $130 billion by 2030.

Click here to read the full report.

Union Budget 2024-25: The Economic Survey 2023-24 highlights significant monetary developments in India, stressing the impact of monetary policy transmission on lending and deposit rates. Here are the key aspects of these developments, their implications for the banking sector, and the broader economic context.

Click here to read the full report.

The Indian startup ecosystem and investors are anticipating progressive policies and measures from this year’s Union Budget. “As an active stakeholder in the world’s third-largest startup landscape, I look forward to key transformations in domains that concern early-stage startups the most, i.e., taxes and supporting policies,” said Prateek Toshniwal, Co-founder, IVY Growth Associates and Partner, MI CAPITAL Services. 

“Removal of angel tax which the unlisted companies pay on receiving funding from angel investors could help promote the growth of the startup ecosystem significantly in our country. Additionally, more streamlined regulatory frameworks and transformations in digital infrastructure could help MSMEs and SMEs upgrade their offerings and help attract investments from both domestic and international players,” added Toshiwal. 

Finance Minister Nirmala Sitharaman tables Economic Survey 2023-24 and Economic Survey 2023-24 statistical appendix in Lok Sabha

A day ahead of the Union Budget, Prime Minister Narendra Modi upheld India’s position as the fastest-growing economy. During his address, the PM said that India has consistently registered 8 per cent growth over the last three years, which has determined its economic success. He said that the Union Budget 2024 lays a roadmap for “Viksit Bharat”.

The PM said he was expecting a productive session of the Parliament, adding that the Viksit Bharat goal will be achieved by 2047. “The time for acrimony is over and all parties must work together for the development of the country,” said the PM. 

Comments by Vivek Agarwal, Global Policy Expert, Country Head, Tony Blair Institute For Global Change:

The 2024 budget will strike a strategic balance between domestic policy continuity and undying global uncertainties. Anchored by PM Modi’s third term, strong RBI dividends, and favourable global ratings, the budget is poised to fuel the government's commitment to sustainability and technological advancement.

Efforts to support India’s 2070 Net Zero target will likely feature significant investments to make electric and alternative fuel vehicles more affordable, increase funding for renewable energy projects like solar and wind power, and investments in green hydrogen and batteries.

Technology, especially AI, will also be a key focus, aligning with shifts in the global economy. Expect support for infrastructure development in computing capacity and incentives for semiconductor manufacturing. A strong emphasis will likely be placed on reskilling and upskilling the workforce in areas ranging from data analytics to automation.

Support for agriculture and farmer incomes is expected to dominate, with proposals possibly including increased direct benefits to citizens to provide immediate relief and stimulate consumption. Measures may include higher rural wages, reduced restrictions on agricultural exports, and direct financial support to farmers.

The budget may also introduce GST reforms, optimizing tax slabs and potentially reducing rates, particularly for industries linked to sustainability efforts. Overall, the government’s approach to the budget aims to spur job creation, enhance consumption, and encourage startup growth, thereby aligning short-term relief with long-term strategic goals.

Dr. Satish Patil, Data + B2B GTM Expert, Founder and CEO, Kanlet, said “The first expectation is the continuity of the focus on AI, ML, and overall technology. The potential of increased investment in policies that empower startups and emerging technologies, such as artificial intelligence (AI), is immense. As AI continues transforming sectors like healthcare, finance, manufacturing, and education, it is crucial to implement proactive measures to ensure its responsible development. We need future AI guidelines that emphasise safety, ethical standards, and societal welfare while promoting innovation.”

“These steps are crucial to drive sustainable growth through data-driven insights and innovation. One of the critical areas where startups expect relief is in tax provisions. Startups also look forward to introducing policies that streamline regulatory approvals and facilitate smoother business operations. This could significantly reduce bureaucratic hurdles and enhance the ease of doing business. The upcoming budget is expected to introduce initiatives to enhance funding opportunities, including expanding government-backed venture funds, simplifying foreign investment regulations, and improving startups' access to credit.”

“The angel tax has been a significant deterrent for many domestic and international investors, leading to a cautious approach to funding early-stage startups. Removing this tax will create a more attractive investment environment and encourage the flow of much-needed capital into the startup ecosystem. Given the challenging times, it is crucial that the budget includes initiatives that stabilize employment and support talent acquisition. With around 10,000 employees laid off by startups in 2024, and funding across stages continuing to be constrained, these measures are not just important, but urgent.”

The Apple Farmers' Federation of India (AFFI) has called for a 100 per cent import duty on apples to protect local farmers. The government must decide on a minimum rate for apple sales, with the help of the much-needed Market Intervention Scheme (MIS), fruit growers associations have added.

Union Finance Minister Nirmala Sitharaman will be tabling the Economic Survey 2024-25 today (July 22), the first day of the monsoon session of Parliament.  The Economic Survey is an official report that puts forth an evaluation of the government’s financial performance and the state of the economy for the fiscal year ending March 31.

As Finance Minister Nirmala Sitharaman will present the Union Budget 2024-25 in the Parliament on Tuesday, marking the first significant policy announcement of Prime Minister Narendra Modi's third five-year term, the Budget could signal shifts in economic priorities. 

Talking about the industry expectations from the budget, Neeraj Akhoury, MD of Shree Cement Ltd said, “As we approach the Union Budget 2024-25, the cement industry is optimistic about significant allocations to housing and infrastructure, which account for over 80% of the demand for cement. The Interim Budget in February showed the government's commitment with an 11.1% increase in infrastructure capital expenditure, totalling Rs 11.11 lakh crore, or 3.4% of the GDP.”  

“We expect further spending on highways, roads, bridges, and urban development, alongside more funds for projects. The announcement of a cement corridor in the Interim Budget has been encouraging, and we hope for more steps to enhance transport integration, making the movement of cement and related materials more efficient,” added Akhoury

ONGC Videsh Ltd (OVL), the overseas investment arm of state-owned Oil and Natural Gas Corporation (ONGC), has acquired Norwegian firm Equinor's stake in an Azerbaijan oilfield and an associated pipeline for $60 million, the company announced in a statement.

OVL has signed a definitive sale purchase agreement (SPA) to acquire a 0.615 per cent participating interest (PI) in the offshore Azeri Chirag Gunashli (ACG) oil field from Equinor. The agreement also includes a 0.737 per cent share of the Baku Tbilisi Ceyhan (BTC) pipeline company through its wholly-owned subsidiary ONGC BTC Limited.

A boost to the Electric Vehicle (EV) policy of the country and continuation of various incentives for the auto sector is among the key expectations of the industry, said Jyoti Malhotra, MD, Volvo Car India. 
 

Asserting that Finance Minister Nirmala Sitharaman in her forthcoming Union Budget 2024-25 speech will have to ensure to creation of sufficient job avenues,  Nirupama Soundarajan, Founder and Partner, Policy Consensus Center said India will have to give a befitting reply to the criticism of being a slow job creator, which she said was possible by maintaining a big focus in the forthcoming Union Budget. 
 

Government should focus on creating ‘fund of funds’ to support investments in startups and sunrise sectors, Rajat Tandon, president of Indian Venture and Alternate Capital Association (IVCA) said while speaking during Republic Business pre-Budget panel discussion “Nation Wants to Grow”. In Union Budget 2022, Finance Minister Nirmala Sitharaman announced the introduction of blended financing for the deep tech sector, signalling the need for a structured fund of funds approach.

Tandon stressed on the importance of government participation in areas such as space tech, climate tech, biotech, agri-tech, and defence tech. "SIDBI and SRI have done phenomenal work, but there's a need for more Fund of Funds to meet industry demands," he noted.

We believe that the forthcoming budget will address the main issues facing the real estate industry, especially by giving homebuyers tax relief and expanding the deduction for house loan interest. Reforms aimed at increasing the availability of affordable housing, such as better financing for housing projects and expedited approval procedures, are also essential.

Further stimulating growth will be providing incentives for sustainable development and improving infrastructure in developing metropolitan areas. All things considered, these policies will not only stimulate the housing market but also increase the number of people who can become homeowners.

As the Union Budget 2024 approaches, we can anticipate significant tax reforms that simplify the current structure. Increasing the basic exemption limit and providing more tax-saving investment options will help individuals better manage their personal finances. Also, with the rise of digital finance, there is an expectation for the budget to promote digital financial inclusion.

This could involve incentives for digital payments and investments in technology infrastructure to make financial services more accessible. Citizens are looking forward to budget provisions that ease their financial burden. Expectations include higher tax deductions for essential expenses such as education, healthcare, and housing. These reforms will play a crucial role in helping people manage their finances more effectively, leading to a more stable and prosperous economic environment.

• We are hopeful that the finance ministry will increase the budget allocation beyond the current 13% to fund more initiatives in the education sector.
• Investments in Digital Infra and Expectations: Expectations include boosting digital infrastructure to facilitate skill development programs.
• Support for Edtech:  Edtech companies expect financial aid and tax relief, including a reduction in gst from the existing 18% to make online education more affordable.
• Lower Interest Rate: Lowering interest rates on educational loans will ease financial burden on students, opening doors for quality education.

As we approach the upcoming budget, it is crucial to prioritise the growth of digital payments through enhanced security measures and the establishment of a fraud data consortium. With the rapid expansion of digital payments, substantial resources must be allocated to fortify security infrastructure, ensuring that consumers and businesses can engage in transactions with confidence. The creation of a fraud data consortium would enable financial institutions and payment service providers to share information about fraudulent activities, fostering a collaborative effort to combat fraud.

As we look forward to the upcoming budget, we hope it will drive India's fintech revolution and promote inclusive growth. BLS E-Services is dedicated to providing financial and digital inclusion services through banking correspondents and government-to-citizen models. Our goal is to make financial services accessible to all, especially in rural and urban communities.

This journey requires technology, security, trust, and government support. We believe that tax incentives for entities engaged in financial inclusion would be beneficial. Additionally, we seek a uniform lower GST slab for services rendered to citizens and tax incentives for entities involved in financial inclusion and government-to-citizen services. These measures would contribute to our efforts in imparting financial and digital literacy, ultimately creating a lasting social impact.

As we approach the Indian Union pre-budget, it is crucial to bolster our cybersecurity infrastructure. The evolving digital threats demand robust support and incentives for the cybersecurity sector. I urge the government to prioritise investments in infrastructure, advanced training, and innovation in cybersecurity. Strengthening our cybersecurity framework will protect national interests and enhance India’s global reputation in digital security. Robust cybersecurity measures are essential for fostering cross-border trust, enabling secure international collaborations and trade. By positioning India as a leader in cybersecurity, we can build a resilient digital ecosystem that benefits both our nation and the global community.

With the Union Budget 2024 on the horison, we anticipate a strong government focus on cybersecurity, data privacy, and responsible AI development. The Data Protection Data Privacy (DPDP) Bill and new legislation on deep fakes are commendable steps forward.

We urge increased investment in cybersecurity infrastructure and human capital development. With cyber threats escalating, it's vital to educate businesses and government entities about risks and provide cutting-edge cybersecurity solutions and skilled professionals. The budget should prioritise funding for educational and training programs to build expertise in AI and cybersecurity.

Addressing the skills gap and resource shortages in organisations is crucial. Expanding the pool of skilled professionals and encouraging the adoption of modern managed detection and response solutions for 24/7 cyber protection are essential to safeguard our digital future.

While there are multiple verticals where we expect the government to highlight aspects in the current budget, these are such as the relaxation of angel tax regulations: This is a common expectation for all startups, not just gold-tech. The government might Increase the threshold for attracting angel tax, simplify the process for obtaining angel tax exemption certificates, and so on.

On the other hand, there should be an increased focus on digital gold such as incentives for paperless transactions, tax breaks for providers, and promotion of digital gold literacy. Also, there should be regulatory clarity with regards to streamlining KYC processes, clear tax implications for digital gold transactions, and Infrastructure development where the government might announce plans to improve digital infrastructure, which could benefit your startup by providing a more robust platform for your services. This could include wider internet access or initiatives to promote digital literacy.

Following are the expectations of the fintech sector from Budget 2024:

1. The fintech industry expects a well-defined strategy to strengthen digital infrastructure and promote digital payments for deeper financial inclusion.
2. The Fintech sector is expecting policy implementation around regulations and licensing processes.
3. The industry is expecting some relief, especially for the smaller companies in terms of GST filing, which will reduce the tax burden and costs on them. This involves extending support to microfinance institutions and small finance banks to meet their financial goals.
4. Enhance the process alignment between fintech companies and public sector banks.
5. Industry expects incentives that will promote their expansion in MSMEs which are underutilized till now.
6. Typically, fintech usually operates in urban areas. Now the industry wants the govt to implement policies that will promote and extend their reach to Tier 2,3 and 4 cities. So that they can integrate the rural population into the banking system.
7. Industry also expects credit for investments in technology-driven solutions that would help traditional banks to provide credits to fintech at much lower rates. Expectations are also revolve around investments in digital infrastructure, which will ultimately help in availing the loan in a duration that will be similar to making a UPI transaction, leading to a process that is efficient and fast.

With the Union Budget announcement on the horizon, elderly NGOs in India are urging the government to address the critical needs of the senior citizen population. Organisations such as Agewell Foundation and HelpAge India have submitted detailed proposals to Finance Minister Nirmala Sitharaman, stressing the necessity for increased financial support, healthcare, and social security for the elderly.

We at Infobip are optimistic about the government's continued focus on digital transformation and technological advancement in India. The country’s digital revolution has gained significant momentum, with AI advancements paving the way for growth opportunities. As AI becomes increasingly embedded in our daily lives, government backing will be crucial in driving innovation across industries. From AI-powered communication to broader tech applications, both emerging startups and established companies must leverage these technologies to enhance customer experiences.

We expect to see increased allocation for technologies such as AI, IoT, and cloud computing, which are crucial for India's global competitiveness. Additionally, we hope for initiatives that will enhance digital infrastructure, particularly in rural areas, to bridge the digital divide and unlock the potential of the country’s vast talent pool. As a global leader in omnichannel communication, Infobip stands ready to contribute to the digital journey and believes that a tech-focused budget will pave the way for unprecedented growth and innovation in the country's IT landscape.

As the newly elected government unveils its budget for FY25, the focus will be on balancing populist measures with maintaining economic growth, according to Centrum's FY25 budget preview. With robust tax collections and a significant surplus transfer from the Reserve Bank of India (RBI), the government is poised to target a fiscal deficit of 5 per cent, slightly lower than the 5.1 per cent projected in the interim budget.

Click here to read more.

As a Proptech fund, we advocate for increased policy intervention in the form of tax incentives to promote technology adoption within government-led infrastructure investments. Furthermore, we propose the establishment of a formal channel to facilitate collaboration between startups and real estate developers, incentivizing the adoption of technologies from Indian startups over those from global companies.

While the government has allocated substantial funds towards startup investments through various venture capital firms, we recommend earmarking portions of these funds, or creating separate allocations, for critical sectors in India. For instance, NABARD's approach to agri-tech investments could serve as a model. We suggest establishing regulatory bodies and support mechanisms for specific sectors to create fund-of-funds initiatives, thereby promoting technological innovation and company formation in these areas.

Our primary interest lies in real estate and infrastructure; however, other sectors such as finance, fintech, retail, and education could also benefit from such targeted support. We propose the creation of sector-specific fund-of-funds to stimulate growth and innovation across these diverse industries. 

As we look ahead to the upcoming budget, there is a sense of anticipation among us all. With a strong economic foundation and fiscal discipline, the Modi 3.0 government is expected to tackle key challenges like food inflation, unemployment, and agricultural stress while creating more jobs. One of our key priorities is to make savings, credit, and investments more accessible to strengthen and support the financial sector.

This entails the expansion of the financial sector's size, capacity and skills to establish a more robust and inclusive financial ecosystem. Fintech advancements with initiatives such as the PM Mudra Yojana, which has sanctioned 43 crore loans amounting to 22.5 lakh crore, as well as the Fund of Funds, Startup India, and the Startup Credit Guarantee Scheme give us a sense of optimism.

These initiatives emphasise financial inclusion and entrepreneurship. The GST reforms have also contributed to a more efficient and inclusive financial environment. These policies encourage entrepreneurship and strengthen our economic resilience. FM Sitharaman's report, which indicates an average real income increase of 50%, highlights the transformative power of financial empowerment.

The budget for the year 2024 aligns with the tenet of 'Citizen First, Minimum Government, Maximum Governance', ensuring a sustained and inclusive expansion. It positions India as a leading global economy with a strong, dynamic, and innovative vision.

The latest round of FICCI’s Economic Outlook Survey has put to the fore an annual median GDP growth forecast for the year 2024-25 at 7.0 per cent. As per the outlook, the median growth forecast for agriculture and allied activities has been put at 3.7 per cent for 2024-25.

Welcome to Republic Business' rolling coverage on Union Budget 2024. Finance Minister Nirmala Sitharaman will present her seventh Union Budget in a row on Tuesday, July 23, 2024. Watch this space closely for all the latest updates and expert comments regarding India's annual budget.