As the Union Budget 2024-25 approaches, various industries have voiced their expectations and recommendations. From real estate to clean mobility, and education to digital transformation, sector leaders highlight the need for strategic allocations and policy measures to drive growth and sustainability. This story collates expert inputs to present a comprehensive view of the budget’s potential impact on different sectors.

Real Estate: Enhancing Liquidity and Stimulating Demand

Mr. Pradeep Misra, CMD, Rudrabhishek Enterprises Limited (REPL), emphasizes the real estate sector’s need for improved liquidity and enhanced funding for the Special Window for Affordable and Mid-Income Housing (SWAMIH) fund. “Reviving stalled projects is crucial for the sector,” Misra states. He advocates for raising the home loan interest deduction limit from INR 2 lakh to INR 5 lakh, which would significantly benefit middle-income homebuyers. Moreover, aligning the GST on under-construction properties with ready-to-move-in properties, either by allowing input credit or reducing the GST rate from 5% to 1%, could stimulate demand.

The real estate sector also expects the revival of the Credit-Linked Subsidy Scheme (CLSS) under the Pradhan Mantri Awas Yojana (PMAY), which expired in 2022. This scheme previously benefited economically weaker sections and low-income group homebuyers, supporting the conversion of ‘kaccha’ homes into ‘pucca’ ones. Misra also recommends reintroducing a 100% tax holiday for affordable housing developers under Section 80-IBA and updating the definition of affordable housing to reflect current market dynamics.

Clean Mobility and Indian Railways: Advancing Sustainability

Aryaman Tandon, Managing Partner, Praxis Global Alliance, underscores the importance of clean mobility and sustainability in Indian Railways. The overall rail market, valued at approximately US$ 31 billion in FY24, is expected to reach US$ 58 billion by FY30, driven by green initiatives. Budget allocations for Indian Railways have grown significantly, from US$ 19 billion in FY20 to US$ 29 billion in FY24, reflecting a compound annual growth rate (CAGR) of 12%.

“Electrification remains a cornerstone of the sustainability strategy,” Tandon notes, with 96% of route kilometers already electrified. Achieving 100% electrification in the upcoming budget is imperative, along with expanding solar power initiatives and developing hydrogen and biofuel trains. The expansion of dedicated freight corridors (DFCs) and high-speed rail (HSR) networks aligns with the objectives of the National Rail Plan, positioning Indian Railways for a sustainable future.

Education: Funding and Technology Integration

Gaurav Bhagat, MD, Consortium Gifts, highlights the need for increased funding in education, building on last year’s record allocation. He advocates for a ₹50 billion fund specifically for rural schools to upgrade facilities and technology. “Tax breaks for loans covering not just higher education but also vocational and skill-based courses will be introduced,” Bhagat explains. Additionally, incentives for educational institutes to invest in technology and AI will enhance learning experiences.

New regulations targeting substandard training operators will ensure better quality control and protect the public from misleading practices. The budget is expected to focus on advancing higher education and research, with increased funding for digital learning platforms, establishment of research innovation hubs at universities, and enhanced scholarships for STEM students. Partnerships with global institutions aim to elevate India’s research capabilities.

Digital Transformation and Technological Advancement

Pinkesh Kotecha, MD & Chairman, Ishan Technologies, is optimistic about the continued emphasis on digital transformation in the upcoming budget. “The Interim Budget laid a strong foundation with its focus on empowering the youth through upskilling and reskilling initiatives,” Kotecha says. He anticipates further promotion of AI research, development, and implementation, ensuring India remains competitive on the global stage.

For SMEs and MSMEs in the IT sector, measures to streamline financial support, simplify regulatory processes, and encourage technological adoption are expected. With India emerging as a data hub, the development of Data Embassies, supported by the government’s upcoming IFSC in GIFT City, will enable private players like Ishan Technologies to participate actively in secure and efficient data management infrastructure.

Manufacturing: Enhancing Competitiveness and Export Potential

Rajesh Shah, Chairman & Managing Director, Euro Panel Products Limited, highlights the challenges faced by the Indian ACP sector, particularly in competing with its Chinese counterpart. “China remains the largest manufacturer of aluminum, which is sold at more cost-effective rates due to significant subsidies,” Shah explains. The Indian ACP sector, despite its potential for rapid growth, faces an uneven playing field.

The sector eagerly anticipates continued governmental support in the upcoming budget to enhance competitiveness. Subsidies and tax benefits on exports are crucial for the sector’s growth, enabling it to fulfill its potential as a major player in the manufacturing industry. This support will help level the playing field and capitalize on the sector’s popularity in key international markets.

Health and Wellness: Supporting Growth and Innovation

 

Harish Singla, Country Sales Manager, Forever Living Products (India), anticipates favorable policies in Budget 2024 to stimulate growth and innovation in the health and wellness sector. “Tax incentives and streamlined regulations will enhance ease of doing business,” Singla notes. Reducing GST rates on health and wellness products will likely boost consumer demand.

Increased support for digital infrastructure could improve online marketing capabilities, broadening reach and efficiency. Investment in skill development programs will empower distributors, driving entrepreneurship and job creation. A supportive budget could fortify the direct marketing ecosystem, propelling companies like FLP India towards greater success and customer satisfaction.

The Union Budget 2024-25 holds significant potential to drive growth and sustainability across various sectors. From real estate to clean mobility, and education to digital transformation, strategic allocations and policy measures are essential. By addressing the needs and expectations of different industries, the government can pave the way for a more prosperous and sustainable future for India.