Budget 2024 Expectations Live Updates: Aviation sector expert reflects on impact

“The salaried class has always kept high expectations from the budget, but the last few budgets have been quite disappointing in terms of opportunities to optimize tax and potential for long-term savings with higher returns,” said Mahesh Krishnamoorthy, Managing Director, Core Integra.

“Few asks could include raising the basic exemption slab to at least 5 lacs and simplifying the tax rates to 10%, 20% and maximum 30% along with eliminating the surcharge and cess. Sec. 80C limits could be enhanced to at least 3 lacs from the current 1.5 lacs. Interest limits on housing loans and principal repayments could be enhanced further. Income Tax Returns could be simplified for Employees who have no other source of income other than salary, the submission by Employer along with TDS as applicable must be considered as auto filing of returns,” said Krishnamoorthy. 

“Budget 2024 is a defining moment for the pharmaceutical sector in India. We look forward to robust support toward R&D and innovation through higher fiscal incentives and reduced GST on critical inputs to spur growth, foster technological advancement, and further fortify India’s leadership in global healthcare, said, Harshit Jain, Founder & Global CEO, Doceree

Ishver Dholakiya, Founder and MD, Goldi Solar, said, “With climate change as one of the key global concern, we believe the green energy charter will be on priority in the upcoming union budget 2024 as India currently at 150 GW has set an ambitious target of achieving a renewable energy capacity of 500 GW by 2030. Further, with a focus on ‘Make in India’, and improving ease of doing business, India has become one of the preferred destinations for global companies and is on the road to becoming the third third-largest economy in the world with a GDP of $5 trillion making green energy a top focus to achieve its Net Zero goals. PM Narendra Modi’s recent address in Russia underlined India’s commitment to renewable energy. In fact, the Government’s focus has been clear with the recent progressive policy and regulatory reforms such as ALMM, PLI scheme, PM Surya Ghar, PM Suryoday Yojana and more.

“At Quantum, we are optimistic about the upcoming budget 2024-25 and anticipate favorable announcements and clear policy implementation. We look forward to targeted incentives, like FAME 3.0, which could make electric two-wheelers more affordable for everyday commuters, thereby expanding our market presence. Additionally, reducing GST on EVs and offering higher purchase subsidies could remarkably boost consumer adoption. As an industry player, we anticipate more support for local battery production and innovation, which are critical for the sustainability and cost-effectiveness of EVs. Increased backing for the ‘Make in India’ initiative and the localized manufacturing of our electric two-wheelers could enable Indian EV manufacturers like us to create more efficient and sustainable mobility solutions that can compete with international brands and are accessible to a broader consumer segment. Simplifying and enhancing financing options for EV purchases will also play a crucial role in boosting adoption rates. Furthermore, we hope for policies that support the development of a robust charging infrastructure, including incentives for renewable energy-powered charging stations, to ensure seamless and eco-friendly commutes. Support for research and development, as well as export incentives, will help us innovate and expand our global footprint. Such comprehensive measures could enhance the overall EV ecosystem and support the transition to electric transportation, making green commuting a reality for millions. –said Mr.Chakravarthi C. Managing Director, Quantum Energy

V.P. Singh, Program Director for PGDM and Professor of Managerial Economics and Statistics at the Great Lakes Institute of Management, emphasizes that one of the primary hurdles to realizing the ‘Viksit Bharat’ (Developed India) vision is the significant disparity in IQ levels between India and competing nations. India, with an average IQ of 77 and a global rank of 96, faces stiff competition from China, which boasts an average IQ of 104 and ranks 5th globally.

Singh asserts that substantial efforts are required to elevate the national IQ level, especially given the crucial role of cutting-edge technologies in driving global growth. Beyond general IQ improvements, Singh advocates for enhancing the nation’s Artificial Intelligence quotient, necessitating a substantial boost in the education sector this year.

“Just as significant investments were made in agriculture in 2019 and capital expenditure in past budgets over the last decade, it is now imperative to focus on education,” Singh stated. He further highlighted that the knowledge economy’s proportion is rising globally, and increased spending on education will support growth across all sectors.

Vidya Mahambare, Union Bank Chair Professor of Economics and Director at the Great Lakes Institute of Management, has highlighted a significant target of the National Education Policy (NEP) to elevate the Gross Enrolment Ratio (GER) in higher education to 50% by 2035. Currently, GER stands at approximately 28%, representing the proportion of the 18-23 age group enrolled in higher education.

Mahambare emphasizes that while increasing the demand for higher education is crucial, India faces a severe shortage of quality educational institutions and qualified faculty. This supply crunch poses a significant challenge to achieving the NEP’s ambitious goal.

“Utilizing technology and expanding online education are the only viable solutions to accommodate millions of additional students seeking higher education,” said Mahambare. However, she pointed out that the government must implement robust supervisory measures to ensure the quality and effectiveness of higher education. Monitoring and improving learning outcomes in online education is particularly challenging compared to traditional methods, which themselves suffer from inadequate learning results.

Hitesh Avhad, Managing Director, Avhad Group, said, “The real estate sector serves as both a major catalyst for economic growth and a vital provider of employment in India. As we look towards the Union Budget 2024-25, there is an urgent need for the sector to be granted industry status, which would facilitate access to lower-cost financing and tax benefits. High taxes on essential materials such as cement and steel, particularly the 28% GST on cement, are inflating project costs and must be addressed to sustain growth.”

“Implementing a single-window clearance system would significantly streamline approval processes, accelerating project timelines and reducing costs. Additionally, enhancing tax benefits for homebuyers by raising the deduction limit for home loan interest payments and providing income tax relief on second homes would spur demand and make homeownership more attainable.”

“The sector’s growth is vital not just for economic metrics but for improving the livelihoods of millions, particularly casual laborers. By addressing these pressing issues in the upcoming budget, the government can ensure sustained growth in the real estate sector, drive job creation, and stimulate broader economic development.”

Nimesh Chandan, CIO, Bajaj Finserv Asset Management, said, “Indian economy is moving on a strong growth trajectory. This makes the government finances comfortable on the revenue side. The Budget is expected to maintain the fiscal deficit and borrowing targets same as the February interim budget. There could be some positive announcements on allocations towards rural economy. Also, there is a possibility of tax benefits for the lower income brackets. Focus on capital expenditure is also expected to continue with increasing central expenditure, persuading state level capex and also incentivising private capex. Overall, we are likely to see policy continuity.”

Vishal Bali, Executive Chairman, Asia Healthcare Holdings, said, “India’s Budget 2024-25 comes on the back of a changed political environment in India however India’s growth story and potential in a world reeling under economic pressure remains more optimistic than ever. This is an opportune time for India to strike a balance between capital conservation and undertaking some aggressive reforms. The government has already indicated that the forthcoming budget would be aimed at sustaining the current economic growth trajectory of India. Countries aiming for self-sufficiency by driving domestic manufacturing as well as consumption would be the ones to float through swiftly in this much-anticipated economic turmoil.”

Kapil Bardeja, CEO and Co-Founder, of Vehant Technologies, said, “Looking ahead to the forthcoming budget, the recent election results provide a unique opportunity to reflect on India’s evolving aviation industry. The interim Budget 2024, presented by Finance Minister Nirmala Sitharaman, aims to double airports to 149 and introduce 517 new air routes, highlighting a commitment to infrastructure as a driver of economic growth. A significant trend in recent budget allocations is the emphasis on modernization and indigenization. The government’s “Make in India” initiative has spurred the development and production of advanced technologies to enhance security within the country. There is a significant increase in budget allocation and this increase aims to tackle the changing security challenges and ensure the armed forces are fully equipped to handle any threat. This development not only promises to elevate passenger experience but also significantly boost tourism and create myriad economic opportunities. We are excited to contribute to this new chapter in India’s aviation story, ensuring security and seamless travel for all.”