Union Budget 2024

We observed good traction in the E2W segment with the sales crossing million units while FAME II was on and the government should look at furthering the attention to E2W, since it contributes to the largest volume of sales of vehicles in India and EV volumes have been down since the slashing of subsidy and end of FAME II.

Sridhar V, Partner, Deals Consulting, Grant Thornton Bharat

Given that India is a banking led economy, initiatives around liberalisation of foreign direct investment, rationalisation of foreign bank tax rates amongst others will help boost capital flows in the country, which will further accelerate the goals towards Amrit Kaal that the government set out for India.

Vivek Iyer, Partner and Financial Services Risk and NBFC Industry Leader, Grant Thornton Bharat

There is still room for consolidation with the public sector banks to bring about greater efficiencies. This will also help us create large banks from an India standpoint, that can look at playing a larger role at a global level. We cannot build global supranational banks from India without consolidation.

Vivek Iyer, Partner and Financial Services Risk and NBFC Industry Leader, Grant Thornton Bharat

While initiatives around green deposit and green lending have been underway, it would be important for the government to focus on transition finance, which is the key requirement to move away from traditional carbon-intensive energy frameworks to low carbon footprint frameworks.

Vivek Iyer, Partner and Financial Services Risk and NBFC Industry Leader, Grant Thornton Bharat

Passenger cars have been outside of the FAME programme and the expectation is there to have this segment covered albeit with a cap on the cost of the vehicle. One should also add to say that all this without support for investments in Infra for EV like charging stations and battery technology may not mean much. There has been a fair amount of shift in consumer interest to EV and one expects the current government to continue with their goal to achieving green mobility

Sridhar V, Partner, Deals Consulting, Grant Thornton Bharat

EPF/ PPF contributions are a common and popular investment destination for individuals, the expectation is to get the same covered in the New tax regime to make the regime more popular.

Akhil Chandna, Partner, Tax, Grant Thornton Bharat

A greater capital push in welfare schemes could enhance purchasing power in rural markets, benefiting the FMCG industry.

Naveen Malpani, Partner, Consumer and Retail Leader, Grant Thornton Bharat

Extended industry status to the hospitality industry along with enabling provision of affordable-rate infrastructure funds for the private sector would go a long way for large scale developments.

Tejinder Gupta, Partner and Tourism & Hospitality Industry Leader, Grant Thornton Bharat

We hope for a substantial increase in the overall health budget to reach at least 3 percent of GDP to address existing gaps comprehensively. Strengthening rural healthcare infrastructure and expanding the reach and coverage of Ayushman Bharat, would be a significant step towards further bringing down the out-of-pocket medical expenditure and ensuring Universal Health Coverage.

Bhanu Prakash Kalmath S J, Partner and Healthcare Services Industry Leader, Grant Thornton Bharat

India’s domestic pharmaceutical market, valued at over $50 billion and growing at 8-10 per cent annually, is a global health powerhouse, supplying medications to over 200 countries. Rising private investments, strong M&A, and PE activity, particularly in biosimilars, CDMOs, and API businesses, reflect a positive outlook for the sector. To solidify this position and ensure future growth, the industry looks to the upcoming budget with high expectations.

Bhanu Prakash Kalmath S J, Partner and Healthcare Services Industry Leader, Grant Thornton Bharat

If the government could come up with ways to generate jobs by tweaking a PLI scheme for MSMEs, SHGs and JLGs, it can help India in countering Chinese imports.

Ramendra Verma, Partner and Leader, Public Sector Consulting, Grant Thornton Bharat

The government should use the budget to plug the critical gaps in the credit ecosystem and resolve issues related to CGTMSE support, delayed payments and onboarding to the TReDS platform and delay in dispute resolution.

Padmanand, Partner and Social Sector Leader, Grant Thornton Bharat

The Budget should allocate funds for administrative reforms aimed at reducing bureaucratic inefficiencies. Implementing e-governance solutions and simplifying procedures can make public services more accessible and user-friendly. For example, introducing a single-window clearance system for business permits can streamline the process, encouraging entrepreneurship and boosting economic growth.

Dhaval Sheth, Partner, Public Sector Consulting (PSC), Grant Thornton Bharat

Incorporating IREDA and HUDCO under Section 54EC of the Income Tax Act will enable them to issue bonds eligible for capital gains tax exemptions. This inclusion can attract more investments, lowering their funding costs. As investors pursue these bonds for tax benefits, IREDA and HUDCO will strengthen their financial capacity to support renewable energy projects and urban development. This aligns with the government's strategy for Amrit Kaal and its broader goals of promoting sustainable infrastructure and economic growth.

Shabala Shinde, Partner and Real Estate & REITs Industry Leader, Grant Thornton Bharat

The Indian real estate sector is growing rapidly, projected to reach USD 1 trillion by 2030, driven by urbanisation, population growth, government initiatives, and the rise of asset tokenisation. Challenges include regulatory hurdles and financial strain. The REIT market, though nascent, is expanding with regulatory support and stable income prospects. Key trends include a shift towards organised players, focus on affordable housing, technological adoption, sustainable development, and tokenisation of real-world assets enhancing liquidity and investment access.

Shabala Shinde, Partner and Real Estate & REITs Industry Leader, Grant Thornton Bharat

Expect the Budget to focus on creating access to new asset classes from a mutual funds perspective in real estate and infrastructure.

Vivek Iyer, Partner and Financial Services Ecosystem Leader, Grant Thornton Bharat

Technically, labour law matters do not fall directly under the Union Budget, but the Budget speech is used as a communiqué to the public regarding the policy framework of the government. As most of the states are now ready with the draft rules, the Budget may announce a blueprint for the operationalization of new codes.

Akhil Chandna, Partner, Global Mobility Services, Grant Thornton Bharat

It would be good to see some announcements on the capital gains side but we expect it to be in the next budget rather than this year’s budget, given the need to stay the course on the fiscal consolidation path.

Vivek Iyer, Partner and Financial Services Risk and NBFC Industry Leader, Grant Thornton Bharat

There is a possibility that the government may increase the standard deduction. Currently, with a significant increase in inflation and the standard deduction remaining fixed at Rs 50,000 from an extended period, individuals are anticipating an increase in the standard deduction to Rs 1,00,000, which would provide some relief to the taxpayers.

Akhil Chandna, Partner, Tax, Grant Thornton Bharat

We are expecting reasonable deductions under the new tax regime i.e., health insurance premiums, life insurance premiums, home loan interest. We also expect an increase in deduction limits under Section 24 of the Income-tax Act, 1962 for interest paid on home loans from the existing Rs 2 lakh to Rs 3 lakh.

Akhil Chandna, Partner, Tax, Grant Thornton Bharat

With the introduction of the standard deduction in 2018 and the last increase in 2019 from ₹ 40,000 to ₹ 50,000, it is essential to raise the threshold to ₹75,000 now to align with current living costs and inflation. Raising the standard deduction can help improve people's purchasing power, especially those with fixed incomes like pensions.

Akhil Chandna, Partner, Global Mobility Services, Grant Thornton Bharat

The consumer industry is hopeful for rationalisation of the provisions of accelerated tax incentives for employment generation, simplified tax structures as well as adding incentives for the startups looking at reverse flip to Indian holding companies, retail-centric initiatives for digitisation simplifying the equalisation levy, TDS and TCS provisions. From a direct tax perspective, the interim Budget 2024 seems to have missed extending the concessional tax rate of 15 per cent for new manufacturing companies. Reflecting at the importance and impending growth of the sector, a clear ask from the Budget will be to reinstate the same. With technology and AI becoming critical for retail and ecommerce companies, the need of the hour is promoting digitisation for businesses and introducing accelerated tax breaks on digitisation expenditures.

Priyanka Duggal, Partner, Tax, Grant Thornton Bharat

Factors such as holding periods for different classes of assets, different income tax and surcharge rates depending upon the type of assets, income level of the taxpayers, etc., have added to the complexity of the entire capital gains calculation for the common man. This has resulted in an outstanding expectation to ease the capital gains taxation and align the holding period across asset classes, different income tax rates, and surcharges for different asset classes.

Akhil Chandna, Partner, Tax, Grant Thornton Bharat

It is essential to raise the threshold to Rs 75,000 to align with current living costs and inflation. Raising the standard deduction can help improve people's purchasing power, especially those with fixed incomes like pensions.

Akhil Chandna, Partner, Tax, Grant Thornton Bharat