The newly appointed Finance Minister, Nirmala Sitharaman, is preparing to plan the national budget, stressing the need for careful planning and thorough analysis. As reported by ANI, the budget is anticipated to be presented in Parliament by the third week of July.
During a meeting with Finance Minister Nirmala Sitharaman before the Union Budget, India Inc. requested several things. They asked for lower income taxes for the common man, more spending on building things like roads and bridges, and measures to control the rising cost of food. Industry leaders and associations also emphasized the importance of improving infrastructure to keep the economy growing well.
July Budget Expectations
Boosting MSMEs in the Upcoming Budget
Industry leaders emphasize support for micro, small, and medium enterprises (MSMEs) in the upcoming budget. Dhwani Mehta, Founder & Director of OpportuneHR, highlights the need to enhance enterprise security for MSMEs against risks like cyber threats and economic disruptions. She suggests fostering collaboration between government, academia, and the private sector to build a supportive ecosystem at the grassroots level. This, she believes, will ensure sustainable growth and resilience for MSMEs.
Lower Income Tax
Industry leaders are urging income tax relief for lower income brackets, simplifying employment-linked incentive schemes like Production Linked Incentive (PLI), and improving business ease. Recommendations also extend to agriculture and rural development.
Mutual Fund Sector
Chakrivardhan Kuppala, co-founder and director at Prime Wealth Finserv Pvt Ltd, emphasizes the need for the upcoming budget to prioritize economic recovery through increased infrastructure spending and robust support for MSMEs. He suggests policies that enhance investor confidence in the mutual funds sector, including tax incentives, regulatory clarity, and financial literacy promotion. Additionally, Kuppala advocates for sustainable growth through investments in environmental, social, and governance (ESG) initiatives.
Healthcare Sector
Dr. Jay Goyal, Director at Surya Eye Hospital, stresses the importance of increased funding and policy support from the government to strengthen India’s healthcare sector. He emphasizes the necessity to enhance healthcare infrastructure, invest in advanced medical technologies, and ensure affordable healthcare services for all citizens.
Recommendations by FICCI
Subhrakant Panda, former President of FICCI, advocates boosting growth momentum by stimulating demand, focusing on infrastructure development, controlling food inflation, supporting MSMEs, and prioritizing innovation and research and development in India. FICCI’s recommendations also highlight the importance of capital expenditure and innovation in driving economic growth.
Capital Expenditure in Focus
Assocham expresses confidence in the Narendra Modi government’s strategic focus on capital expenditure in the upcoming budget. President Sanjay Nayar emphasizes the importance of fiscal consolidation and strategic investments in critical sectors such as infrastructure, education, and healthcare to stimulate economic growth while maintaining fiscal discipline.
Real Estate
Mr. Ashwin Sheth emphasizes the importance of government initiatives to enhance housing affordability and stimulate demand in the real estate sector. He hopes for potential tax relief schemes and policy changes that reduce costs and rationalize taxes. These reforms are crucial for sustaining growth in the Indian real estate market and aligning it with changing economic dynamics and societal needs.
Research and Development (R&D)
Rohit Chauhan highlights the need for significant investment in research and development (R&D) and progressive steps towards legalization. These measures are vital for fostering innovation in hemp products, which can contribute significantly to the economy and sustainable practices.
AAYUSH Sector
Vaibhav Jain stresses the potential of the AAYUSH-based healthcare and wellness sector, which is expected to grow to $70 billion soon. He urges the government to provide support and guidance, including a special package in the upcoming budget. This package would enhance AAYUSH infrastructure, research capabilities, and accessibility. Jain also advocates for subsidies and incentives to support AAYUSH startups.
Easing of Licensing Requirements
Vivek Jalan, Chairman of the National Fiscal Affairs and Taxation Committee at the Bengal Chamber of Commerce and Industry, proposed making getting licenses for importing electronics easier.
The PHDCCI (PHD Chamber of Commerce and Industry) suggested implementing uniform labor laws across all states to make industries more competitive. They also recommended strengthening connections between universities and industries to boost research and development activities in the country.
Labor Reforms
PHDCCI recommends implementing the four labor codes uniformly across states to enhance industry competitiveness. They also propose extending the timeline for MSME non-performing assets (NPA) relief from 90 to 180 days. IMC Chamber focuses on steering India’s economic growth amidst global challenges like climate change, advocating for green transition strategies, and utilizing green resources for sustainable development.
These consultations and recommendations aim to shape the upcoming budget by addressing diverse sectoral needs and fostering economic growth in India.
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