Real Estate industry

The real estate industry is eagerly anticipating the Union Budget, with the hope that it will bring about impactful measures to drive growth and address key concerns. One of the most crucial expectations is the potential revision of the capital gains tax structure, which could stimulate retail engagement in REITs and InvITs if rationalized. Recent reforms like amendments to SEZ rules and tax breaks are seen as potential catalysts for commercial real estate, especially in segments such as IT parks and commercial buildings. To alleviate cost pressures, property developers are seeking input credit availability during the construction phase, aiming to support the growth of the commercial sector, which is estimated to reach $40.71 billion by 2024. Additionally, the budget is expected to feature provisions and tax reforms fostering green real estate, sustainable housing, and business-friendly measures for commercial property developers. Policies and incentives encouraging investment in commercial real estate align with the national goal of achieving a $5 trillion economy. Stakeholders are hopeful that measures such as streamlined regulatory processes, attracting NRI investments, and industry status grants will further enhance transparency, finance access, and investment inflow. The real estate sector expects affordable housing, home loan tax rebates, and strategic investments in the upcoming Interim Budget 2024.

Space tech industry

India's space technology industry is growing rapidly and seeking favorable policies in the upcoming Interim Budget. It emphasizes the need for a more permissive policy for Foreign Direct Investment (FDI) similar to the defense industry, and production-linked incentives. The industry, represented by the Indian Space Association (ISpA), is urging for an expansion of the Goods and Services Tax (GST) exemption to cover satellite, launch vehicle, and ground equipment manufacturing. The industry recognizes the narrow profit margins and is requesting tax holidays, exemptions, and reduced tax rates. It specifically requests a decrease in the tax rate on external commercial borrowings to 5%, and a substantial cut in the withholding tax for the satellite sector from 10% to 2%. With 39 startups and major companies under the ISpA's representation, there is a collective push for clarity on FDI policies and a plea for customs duty relaxation to further stimulate the growth of the space tech sector.

Fast-Moving Consumer Goods (FMCG)

In the world of Fast-Moving Consumer Goods (FMCG), the focus for Budget 2024 centers on strategic investments and policy measures that can indirectly boost consumer spending. The FMCG sector is looking for digital infrastructure improvements, initiatives for skill development, job creation, and support for Micro, Small, and Medium Enterprises (MSMEs) to promote growth. The expected rise in allocation to the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and proactive schemes in agriculture aim to strengthen the farm economy, resulting in higher rural household incomes. Stakeholders are particularly interested in measures that support domestic manufacturing, including incentives for local production through schemes like the Production-Linked Incentive (PLI) for the food processing industry. Direct benefit transfers, such as subsidies for LPG cylinders and Ujjwala Yojana, and recognition of the gig economy in labor laws are expected to be key components for the FMCG sector's recovery and long-term sustainability. As the nation eagerly awaits the announcement of Budget 2024, the expectations and aspirations across sectors reflect a collective vision for inclusive growth and a resilient economic future.

Startup

The upcoming Interim Budget will have a significant impact on the startup ecosystem, which is a crucial driving force behind India's economic growth. Startups are eagerly awaiting tax benefits and fiscal incentives that will support early-stage funding. They hope for measures that will optimize taxes and enable carry-forward losses, which will create an environment that fosters long-term growth. Startups are also calling for dedicated funds that are tailored to support sustainable growth, as they are committed to innovation and viability in the long run. As artificial intelligence becomes increasingly important, startups are looking for initiatives to leverage its transformative potential. They are emphasizing the need for tech industry incentives to encourage innovation. Additionally, they want better funding opportunities and a simplified GST structure to align with the dynamic nature of the startup landscape. The Budget recognizes the important role that startups play in reshaping the Indian economy. The focus on local manufacturers, especially in the food sector, reflects the shift towards supporting domestic production. Consumers prefer local manufacturers, which highlights the significant impact of this sector, positioning India as a hub for innovation and entrepreneurship. With over 116,679 DPIIT-recognized companies, India's startup ecosystem is poised for continued growth, and the Interim Budget is eagerly awaited as a catalyst for further progress.

Closing: The unveiling of the Interim Budget 2024 is a crucial moment for India, where fiscal decisions transcend immediate financial considerations and have a transformative impact across different industries. The budget's implications are far-reaching, as sectors such as railways, manufacturing, healthcare, technology, and real estate eagerly anticipate the policy reforms and financial allocations that will shape their future. The government's strategic approach to taxation, education, and skill development underscores the potential for inclusive growth. As India looks to become a $5 trillion economy, the Interim Budget carries the weight of expectations for sustainable practices, resilient industries, and a visionary economic roadmap. Beyond the numbers and allocations, this budget demonstrates India's commitment to progress, innovation, and adaptability, setting the stage for a dynamic and prosperous future. The Interim Budget is not just a financial document; it is a compass guiding the nation toward a path of economic resurgence, policy evolution, and comprehensive development.