Budget 2024: What's on India Inc's wishlist and what's not?

With the union budget scheduled for announcement on 1 February, a sense of anticipation permeates various sectors as industry stakeholders eagerly await the unveiling of allocations and measures aimed at bolstering innovation and support.

The upcoming budget, deemed as an interim budget preceding the 2024 general elections, holds particular significance as it marks the final budget of the Modi government's second term. 

As Finance Minister Nirmala Sitharaman prepares to present her sixth consecutive budget, we reached out to marketers across diverse sectors to uncover their expectations and desires encapsulated in their 'Budget 2024 wish list'. What incentives or benefits are they seeking to manifest for their respective industries? Additionally, what aspects would they rather the budget address or eliminate?

Key players in the Indian industrial landscape, spanning FMCG, gaming, esports, and advertising sectors, share their outlook on the policies they hope will catalyse growth and effectively address specific challenges within their domains. Simultaneously, concerns related to subsidies and heightened taxation are articulated as well.

 

 On the wishlist- Fantasy Gaming aligns well with the PM’s digital economy vision. We expect the upcoming Budget will address the recent GST amendment, aiming for tangible positive outcomes. Furthermore, we seek government support to boost the sector by attracting heightened foreign investments, aligning seamlessly with the overarching vision of the government's digital economy.

 

Our goals are not separate, they are pixels on the same screen. By providing tailored government support to the online gaming industry, we solidify a win-win partnership. This joint effort fuels the government's digital economy vision while injecting the sector with resources that unlock its full potential.

 

On the Budget do-away wishlist- Our overarching wish for the Budget is to address 28% GST on deposits which has created waves in the industry. We expect reconsideration by the government which will eventually help in the establishment of a conducive environment for industry's revival.

 

 

Angshu Mallick, managing director and CEO, Adani Wilmar  

 

The FMCG sector is optimistic and looks forward to a market that is less volatile in 2024. The expectations from the upcoming Union Budget 2024 continue to be progressive, as we eagerly anticipate many transformative measures from it. The annual budget also offers a timely opportunity to set the direction for sustainable growth and empowerment, especially in the rural sector. Rural demand has been slower than expected. Inflation has hit consumption. With the higher expectation of the Rabi crop harvest, we anticipate rural demand to pick up. We recognise the vital role rural economies play in India’s economic growth and emphasise the need to introduce measures that would further boost consumption in these areas. New policies are anticipated that safeguard the interests of oilseed farmers and the oleochemical industry while effectively addressing challenges faced by rural communities. This, in turn, will have a positive ripple effect on industries connected with rural landscapes. The thrust on capital expenditure would be welcomed, as it not only spurs economic growth but also ensures inclusive development.

 

A level playing field for manufacturers could be achieved by categorising imports like palm oil, stearic acid, soap noodles, oleic acid, and refined glycerin under the restricted-items list or implementing a 25% import duty on finished products as opposed to raw materials. Additionally, the suggestion is to grant duty-free import privileges for raw materials to entities equipped with processing facilities. This move is expected to stimulate innovation and boost competitiveness, thus promoting the Make-in-India movement.

 

The proposed focus on bolstering investments in the Open Network for Digital Commerce (ONDC) and digital public infrastructure aligns with the ever-evolving landscape of consumer behaviour, ensuring our industry stays ahead in the digital age.

 

Adani Wilmar is eager for outcomes in the budget, nurturing a vision to establish a comprehensive framework that fosters growth and long-term sustainability in the edible oils and FMCG industries.

 

Arjun Ranga, managing director, Cycle Pure Agarbathi

On the Budget 2024 Wishlist: 

1. Digital literacy initiatives: I wish to see the Budget allocate funds for digital literacy initiatives. Enhancing the digital skills of the general population can expand the market for digital marketing services and empower businesses to connect with a broader audience.

 

2. Research and development grants: Allocating funds or grants for research and development in digital marketing technologies can stimulate innovation within the industry. This could lead to the creation of cutting-edge tools and strategies, making India a hub for digital marketing excellence.

 

3. Tax Benefits for small businesses: Providing tax benefits for small businesses engaging in digital marketing activities can promote entrepreneurship and help these enterprises compete on a level playing field with larger corporations.

 

In terms of perks and benefits for the industry, I am hopeful for dedicated research grants aimed at enhancing data security in digital marketing, a move that could bolster consumer trust and safeguard sensitive information for businesses. Additionally, fostering global collaboration initiatives within the digital marketing space could open up new opportunities for Indian businesses, establishing partnerships with global players and strengthening India's presence in the global digital marketplace. Lastly, specialised support for digital marketing startups, including low-interest loans or grants, holds the potential to foster innovation and competition, paving the way for new players with fresh ideas and perspectives to contribute to the industry's growth.

 

Ashish Singhal, co-founder and group CEO, PeepalCo

 

Aditya Reddy, co-founder and CEO, Gamepoint

In order to transform the sports sector in India, it is imperative to encourage and incentivise private sports organisations. This can be made possible by reducing the GST on sports services from 18% to 12%, incentivising the establishment of sports goods manufacturing in India through a PLI scheme for sports equipment, and facilitating access to government, railways, and PSU sports facilities for the general public. If necessary, involving private organisations in managing these facilities under a PPP model can enhance both management and maintenance efficiency.

 

In line with the previous year (11% increase), the overall budget for sports is expected to increase by a double-digit percentage. Given that Prime Minister Modi announced India's intention to bid for the 2036 Olympics, it is expected that a significant amount will be allocated for capital expenditure to set up and upgrade existing sports facilities. 

 

Vikas K Gautam, CEO, Yuva Kabaddi Series

 

While the previous budget reflected a significant boost, my primary expectation for the upcoming budget is a strategic focus on grassroots development.  A significant investment is needed in sporting infrastructure especially at the grassroots level. The allocation of funds towards the training of coaches is crucial, given the current lack of infrastructure and the absence of internationally standardized coaching facilities. It is imperative to recognise that only well-trained coaches can cultivate athletes to compete at the international level. 

 

Emphasis on holistic development programs, focusing on talent identification and nurturing, nutrition, and sports science, to create a well-rounded ecosystem for aspiring athletes are some of the measures I would like to manifest for the industry. Transparent allocation of funds, with clear accountability mechanisms in place, can guarantee that the allocated budget is effectively utilised for its intended purpose.  With these measures, the budget can establish a strong foundation and I am optimistic that this budget will lay the groundwork for India to emerge as a global force in the sporting arena.