The long-awaited moment is almost here - the Interim Budget 2024 is about to be unveiled. This budget holds great promise as it can shape India's economic trajectory and usher in a new era of growth and resilience. Finance Minister Nirmala Sitharaman will reveal this financial blueprint that goes beyond fiscal allocations. It is a decisive instrument that has the potential to reshape industries, instigate crucial policy reforms, and influence the nation's overall economic landscape. This transformative period has been marked by global challenges and domestic aspirations. Therefore, industries across the spectrum are poised to scrutinize this budget for indications of targeted measures, strategic allocations, and visionary policies. Each sector, from railways aiming for modernization to healthcare grappling with the burden of chronic diseases, anticipates the budget's implications on its trajectory. The government has the complex task of balancing economic recovery with sustainability. The Interim Budget stands as a pivotal document that will resonate far beyond the balance sheets, influencing the nation's course in the years to come.

Railways and Infrastructure

India's railway system has shown impressive progress and resilience, achieving a significant milestone in the fiscal year 2023-24. The railways have invested an unprecedented Rs 1,95,929.97 Crores in infrastructural development and passenger safety, utilizing 75 percent of its capital expenditure, which marks a remarkable 33 percent increase from the previous year. As the railway network navigates challenges and sets its sights on modernization, safety enhancements, and ambitious projects like the India-Middle East-Europe Economic Corridor, all eyes are on Finance Minister Nirmala Sitharaman to pave the way for a transformative era in India's rail infrastructure. Expectations are high for increased capital allocation, reaching record levels exceeding Rs 3 lakh crore, with a 25% surge from the previous fiscal year. The Interim Budget for 2024-25 is poised to play a pivotal role in shaping the future of Indian Railways.

Manufacturing and MSMEs

India's Micro, Small, and Medium Enterprises (MSMEs) are a vital part of the economy, contributing almost 30% to the GDP. However, despite their crucial role, MSMEs feel that more measures are needed to unlock their full potential. The MSME sector accounts for 29.15% of India's GDP till 2021-22, and they expect enhanced financial support from the upcoming interim budget. Industry experts suggest incentivized lending rates, credit guarantee schemes, and expanded funding channels to fortify the financial resilience of MSMEs. The post-pandemic landscape positions India as a promising manufacturing hub with the 'China plus one' strategy gaining prominence. To sustain growth, FICCI recommends extending the concessional tax regime and production-linked incentives for manufacturing operations. Moreover, FICCI suggests revising the mandatory registration criteria on the Trade Receivables Discounting System (TReDS) platform to Rs 250 crore, enabling more MSMEs to have accessible and cost-effective funds. As India charts its economic course, the forthcoming budget has the potential to drive MSMEs into key drivers of sustained growth.

Healthcare and Pharmaceuticals

The healthcare and pharmaceutical industries in India are also at a crucial point as the interim budget for 2024 approaches. While the government's commendable efforts such as the PMJAY scheme and a comprehensive healthcare approach are appreciated, there is a pressing need to address the increasing burden of chronic diseases, particularly cancer, which is growing at a concerning rate of 12%. It is suggested that the budget allocation of 3.5% to 4% of GDP should be focused on preventive healthcare infrastructure in underserved areas. The pharmaceutical industry, currently valued at $50 billion, has ambitious growth targets of $120-130 billion by 2030 and $450 billion by 2047. Some key expectations include GST and customs duty relief for advanced medical technology, incentivizing private sector participation in healthcare models, and expanding insurance coverage to include newer therapies. Additionally, the budget is eagerly awaited for increased allocations in research, development, and innovative initiatives to propel India towards its goal of becoming a global medtech hub.

Technology and Innovation

The technology sector is waiting for the interim budget, hoping for strategic measures to boost growth. Specifically, the industry is advocating for a focus on cybersecurity, digitization, and the implementation of production-linked incentive schemes to stimulate progress. Experts emphasize nurturing deep tech companies since they solve real-world complexities through advanced technologies. These ventures usually involve higher risk and longer gestation periods, so the sector expects increased support in the budget. Additionally, the budget is expected to highlight skilling programs and forge higher education partnerships to cultivate digital skills and aiming to build a robust talent base of over 50 million workers in AI and data science by 2030. To maximize the impact of emerging technologies, the development of advanced digital infrastructure across urban and rural areas is crucial. With sustained investments in skills training, research, and incentives for cutting-edge technologies, India can solidify its position as a global innovation hub, driving advancements in various sectors throughout the decade.

Taxation Reforms

There is a growing sense of excitement among people for the Budget, particularly in terms of expected changes in taxation policies. Stakeholders are eagerly waiting for potential changes in the income tax regulations. There is a notable focus on the existing complex seven-tier tax slabs, which has led to calls for a simplified and more understandable tax structure. The primary expectation is the revision of income tax slabs to address concerns about inflation and rising living costs. There is speculation that the government might increase the basic exemption limit to reduce the tax burden on lower-income individuals. Additionally, the government may introduce new tax slabs to foster a more progressive tax structure. The digital transformation of financial systems is expected to be a key theme, with a focus on leveraging technology for tax compliance and administration. Anticipated reforms include the incorporation of advanced data analytics and artificial intelligence tools to streamline tax assessments, enhancing efficiency and transparency. The 2024 budget may explore revisions in wealth tax to address wealth inequality, such as adjusting rates or expanding the scope of taxable assets, signaling a potential shift towards a more equitable fiscal landscape. The upcoming budget has the potential to bring transformative taxation reforms that could impact individuals, businesses, and the broader economic outlook.

Education and Skill Development

Anticipation surrounds, people expecting the government to prioritize the education sector in the upcoming Budget of 2024. Experts recognize the role of technology in transforming education, especially during the pandemic, and stress the need for sustained government support for technology-assisted learning. The key expectations include allocating funds for improving Information and Communication Technology (ICT) infrastructure and creating digital teaching resources. Apart from education, stakeholders also advocate for policies that promote women's empowerment, skill development, and economic growth. The previous Union Budget demonstrated the government's commitment to nurturing skilled professionals. The proposals for the upcoming budget aim to encourage collaboration between the National Digital University and EdTech companies, and provide tax rebates as incentives for such partnerships. The education sector also expects measures to bridge the digital gender gap, support women entrepreneurs, and improve overall education quality. With the EdTech sector currently valued at around $2.8 billion, policy support is vital to ensure a more inclusive, skilled, and technologically advanced future for India.