Indian Industry wishlist for Budget 2024: Tax relief, EV push & skill upgradation

Indian industry leaders are eagerly awaiting the upcoming budget, with a diverse set of priorities and wishlist. Companies like IKEA are looking for a skilled and sustainability-focused workforce, while Meesho wants more government support for startups. Bajaj Electricals hopes for increased consumer spending power, and Haier Appliances prioritizes infrastructure and manufacturing development.

UpGrad calls for educational reforms, improved skills training, and a flourishing startup environment. Even the informal waste management sector seeks modernization through strategic resource allocation.

With expectations encompassing tax relief, electric vehicle industry boosts, and more, this budget holds the power to significantly influence India's economic trajectory.

IKEA

Susanne Pulverer, CEO and CSO of Ikea India says, "At IKEA India, we are optimistic about the upcoming budget's potential to prioritize key areas that will drive quality and innovation in the industry. We look forward to the continued rapid expansion of infrastructure, particularly digital infrastructure, across the country. Additionally, we aim to deepen the Make in India initiative to help us cater to both domestic and export markets, and advocate for provisions that promote sustainable practices, including incentives for eco-friendly materials and green manufacturing. Investments in vocational training are essential to equip our workforce with contemporary skills. Lastly, initiatives aimed at increasing consumer income will definitely boost purchasing power and stimulate demand.”

Bajaj Electricals

Bajaj Electricals CEO Anuj Poddar calls for a budget that prioritizes boosting domestic spending power, especially for the middle class and rural citizens.

“Boosting domestic consumption should be a strong theme of the upcoming Budget. Over the recent years, we have seen a lot of focus on capex outlays and infrastructure sectors. It is now time for the Budget to also provide momentum to mass consumption – by providing more spending power to rural and middle-class citizens. There are many levers to do this, without affecting our fiscal balance which is very healthy at present. Our categories (FMEG) are highly dependent on the consumer demand environment and will gain from budgetary measures that boost middle-class and rural demand.” states Poddar.

Haier

NS Satish, President of Haier Appliances India, emphasizes the consumer durables industry's desire for a budget that prioritizes infrastructure, manufacturing incentives, and digitalization. He argues these measures will create a robust market environment, benefiting both domestic appliance makers and India's overall economic growth.

“As the Union Budget approaches, the consumer durables industry is optimistic about increased infrastructure spending and the extension of PLI schemes to boost economic growth. The durables segment is currently under-penetrated, presenting a significant opportunity for demand generation. The industry is also hopeful that the government's emphasis on 'Make in India' and 'Digital India' initiatives will align with the growing consumer preference for locally manufactured products. Such focus will not only enhance global competitiveness for Indian players but also significantly boost employment," he says and adds, "At Haier India, we look forward to a budget that creates a stable and growth-oriented environment, facilitating ease of doing business and driving economic activity and demand generation. These measures will provide the much-needed impetus for sustained growth in the consumer durables sector.”

Meesho

Meesho's CFO, Dhiresh Bansal urges the government to amplify its support for startups. He emphasizes that these measures are crucial to propel India's technological growth and reach its $5 trillion dollar economic goal.

"Meesho remains optimistic about the government's commitment to fortifying India's growing startup ecosystem. Acknowledging the pivotal role startups play in steering India towards a 5 trillion-dollar economy, we recognize the need for sustained government support. India's technological contribution to GDP is growing but remains in its early stages compared to other nations. The government's involvement in encouraging venture capital and angel investment is commendable, and we believe that further emphasis on these initiatives will gradually elevate the number of startups in India," states Bansal.

"To foster continuous expansion, we advocate for an all-encompassing strategy. Moreover, simplifying the processes associated with tax compliance and lowering tax rates, especially during the initial operational years, will ease the financial strain on startups, cultivating a more advantageous business environment. Lastly, with regard to talent attraction, a reduction in taxes related to Employee Stock Ownership Plans (ESOPs), presently standing at around 40%, will heighten the attractiveness of startups to skilled professionals, thereby contributing to the development of our vibrant ecosystem. This multifaceted approach aims to establish a conducive environment for startups, nurturing innovation, job generation, and sustainable economic.”, he adds.

upGrad

Mayank Kumar, co-founder of upGrad expects a substantial increase in funding for K-12 education, aligned with NEP recommendations, to revolutionize the quality and accessibility of education for every child, fostering a generation of future-ready learners. He also wishes for a boost in skill development programs through robust public-private partnerships, with a special focus on empowering government employees with cutting-edge emerging technologies. The budget should also prioritize initiatives to encourage and increase women's participation in STEM fields, creating a more diverse and inclusive workforce.

Kumar highlights the importance of making upskilling a "national habit" According to him, implementation of attractive tax benefits and incentives, akin to Section 80C deductions will help to make upskilling and lifelong learning an integral part of Indian culture. This will not only address the existing talent gap but also foster a culture of continuous learning and adaptation in the face of rapid technological advancements.

Kumar also expects a comprehensive overhaul of the ESOP taxation regime, aligning it with the treatment of shares, to unlock the full potential of ESOPs as powerful tools for attracting, retaining, and motivating talent in the thriving Indian start-up ecosystem. He believes this move will further propel the start-up revolution and contribute significantly to India's GDP.

Kenvue

Manish Anandani, Managing Director of Kenvue India and South Asia wishes the budget should prioritize boosting disposable income through tax breaks. This would put more money in people's pockets, allowing them to buy more FMCG products, ultimately driving consumption and economic growth.

“The Union Budget 2024-25 should prioritize stimulating domestic demand by boosting disposable income through tax breaks. This will enhance their purchasing power, drive consumption and economic growth. The budget should also focus on enhancing infrastructure especially in the rural areas to ensure that essential health and everyday care products reach more households across India. Additionally, one needs to drive job creation in both rural and urban areas to build a robust economy. Together, these steps will revitalize the FMCG sector, promoting sustainable growth and resilience,” he states.

Schneider Electric

Rajat Abbi, Vice President, global marketing, greater India and Chief Marketing Officer of Schneider Electric India says, "As we look ahead to the upcoming budget, our expectations are firmly rooted in the government’s commitment to sustainability and energy efficiency. We believe that the government is and will play a pivotal role in encouraging companies to adopt and drive forward sustainability initiatives. Providing incentives for businesses that invest in energy-efficient technologies and sustainable practices will accelerate the transition to a greener economy but also help the country achieve its goal of becoming net-zero by 2070. At Schneider Electric, we are dedicated to being at the forefront of this movement, and we are hopeful that the budget will reflect and support these priorities."

CARS24

Gajendra Jangid, Co-Founder & CMO of CARS24 wants the budget to make electric vehicles more popular. This includes tax breaks for both consumers (lower GST) and businesses (income tax relief). Jnagid also anticipates more charging stations and a skilled workforce to make EVs a success. In addition, better infrastructure and less red tape would benefit the entire auto sector.

Jangid is of the opinion that substantial investment in skill development, particularly in digital skills and emerging technologies like AI and renewable energy, is crucial. "This budget should ideally include specific allocations for upskilling programs, infrastructure development in industrial hubs, and streamlined regulatory processes to facilitate smoother operations for businesses," he says.

Recykal

"There is an urgent need for policy intervention and strategic resource allocation in the upcoming budget to address the challenges faced by India's informal waste management sector. This sector is a critical component of the country's waste management ecosystem, with a significant portion of waste being managed by informal workers and small-scale enterprises. However, it faces issues such as inadequate infrastructure, manual processes, and limited access to modern recycling machinery," says Abhay Deshpande, Founder and CEO, Recykal.

He adds, "By rethinking import duties on waste recycling machinery, the government can incentivise the modernisation of the waste management sector. This can lead to the adoption of advanced technologies for sorting, processing, and recycling waste, thereby improving efficiency and reducing environmental impact. Additionally, aligning recycling efforts with green investments can further bolster the sector by attracting financial resources towards sustainable waste management practices."

According to Deshpande, new machinery and better systems could create more jobs, especially by giving those already working in waste collection a chance for better pay and training. At the same time, this shift would help India move towards a greener economy by reducing waste and pollution.

Mankind Pharma Limited

Arjun Juneja, Chief Operating Officer, Mankind Pharma Limited and Chairman, Pharma Committee, FICCI highlights the need for increased public healthcare spending to ensure wider access to quality medicines. He also proposes export incentives and expanded production-linked schemes to boost domestic manufacturing.

"Key priorities include increased R&D funding, strengthening healthcare infrastructure, and streamlining the GST framework. We urge the government to prioritize increased public healthcare spending, reaching 2.5% of GDP, to ensure wider access to quality medicines. Strengthening R&D infrastructure and fostering innovation are crucial for long-term success. Enhancing export incentives (RoDTEP) and expanding PLI schemes will promote local manufacturing. Regulatory reforms and a renewed focus on primary healthcare, particularly in rural areas, are essential for our sector's resilience. Attracting NRI medical talent back to India will solidify our position as a global pharma leader," he says.

Hero Vired

Akshay Munjal, Founder and CEO, Hero Vired advocates for continued prioritization of education, health, and skill development to cultivate a robust and globally competitive workforce.

He says, "Developing a strong tech infrastructure is critical for fueling growth and job creation in high-demand sectors like AI, cybersecurity, and big data. Our policies must equip our workforce with essential digital skills and technologies, enabling India to spearhead global advancements. By embracing research-driven skill development tailored to job creation, we can elevate the effectiveness of our education sector. Implementing a regulatory framework for EdTech should also be evaluated as it can bring organization, transparency, and efficiency to the sector, benefiting all stakeholders involved. T By adopting these measures, we can strengthen our education system holistically and position India as a global leader in digital skills, knowledge and technological innovation.”