Kahraman Yigit, Co-Founder and CEO of Olive by Embassy: “India’s 2024 budget should prioritize revitalizing the hospitality sector, emphasizing sustainable tourism and infrastructure development. Incentives for digital innovation and skill training are vital to cater to the post-pandemic era’s demands, ensuring long-term industry resilience and job creation.”
Rampraveen Swaminathan, MD & Chief Executive Officer, Mahindra Logistics Ltd.: “The upcoming interim budget offers a unique opportunity to balance economic growth priorities and fiscal consolidation. Prioritizing capital expenditure in key infrastructure projects, alongside financial incentives like PLI, tax benefits, and subsidies, can drive innovation in logistics. Building a ‘One India’ logistics ecosystem and integrating initiatives like the National Logistics Policy and Sagarmala Project are crucial to enhancing India’s global Logistics Performance Index ranking.
To reinforce India’s potential as a manufacturing powerhouse, the budget needs to focus on domestic manufacturing and prepare the logistics sector for service integration, growth in fulfillment logistics, and multi-modal transportation adoption. The government should also consider automation investments, especially in technologically advanced warehouses, which can position India as a logistics innovation leader.
We anticipate government announcements for the EV industry, which may include tax incentives, charging infrastructure subsidies, and financial support for R&D. A holistic regulatory framework for last-mile delivery and formal recognition of the gig workforce under labor laws are essential for fair employment practices in the digital economy. A forward-thinking budget aligned with these expectations will enhance the logistics sector and contribute to India’s global competitiveness and economic prosperity”.
Aditya Virwani, COO, of Embassy Group: “A focus on infrastructure development, affordable housing, and ease of doing business during the upcoming Budget will be instrumental to shaping the sector’s trajectory.
Overall, we anticipate a strong emphasis on policy measures that encourage sustainable development, smart cities, and digitization within the real estate landscape. A reduction in home loan interest rates and repo rates, coupled with special bank and EMI discounts, will be key to supporting continued growth. Recognizing millennials as the driving force in the property market, revising the price cap for affordable and mid-segment homes can invigorate their home-buying spirit.
A hike in the tax rebate on home loan interest under Section 24 of the Income Tax Act, from Rs. 2 lahk to Rs. 5 lakh, will also catalyse housing demand. Additionally, tax breaks and a review of Goods and Services Tax (GST) rates will make affordable housing more accessible and enhance the financial viability of such projects. Considering Bengaluru as a Metro will offer higher HRA benefits to individuals as well as attract more talent to the city since there will be tax relief amidst the loan burden on house property.
Further, in alignment with the global shift towards sustainability, we look forward to incentives or subsidies for green building certifications and renewable energy installations in commercial real estate projects. We propose bringing REIT units to parity with listed equity. Reducing the holding period for long-term capital gain benefits from 36 months to 12 months would make REITs more attractive to investors. For SEZs, we are seeking simplified compliance through a single window clearance system, concessional tax rates, or tax breaks for both developers and SEZ units to ease the denotification process. This would streamline processes, making SEZs more attractive for investment.
Our expectations align with the national agenda for economic revival, and we look forward to policies that foster a conducive environment for both domestic and foreign investments.”
Aasif Malbari, CFO, Godrej Consumer Products Limited: “The upcoming Union Budget of 2024 will serve as an interim budget until the completion of the General Elections later in the year. However, I expect the budget to navigate the immediate challenges faced by sections of the economy while fostering a vision for longer sustained economic growth. To support more inclusive economic growth the government could consider proactive measures aimed at controlling inflation and stimulating consumption in the larger economy. A consumption boost will lead to a cycle of sustained economic growth in the long run. Furthermore, attention should be directed towards enhancing rural job creation and consumption, enhancing incentives for capital expenditure, and incentivizing innovation and research and development (R&D). Aligned with the aspirations of India@100, the budget should also allocate larger resources for supporting exports and greater job creation in both rural and urban markets. This would boost local production and cultivate a resilient and inclusive economy.”
Yatin Gupte, Chairman & Managing Director, Wardwizard Innovations & Mobility Ltd.: “The visionary stance of the Union Budget 2023-24 towards sustainable mobility played a pivotal role in the successful realization of the target of 1 million electric two-wheelers, providing crucial support to the industry. Looking ahead to the Union Budget 2024-25, there is anticipation for a further boost in support for Electric Vehicle (EV) infrastructure in the country. Optimism surrounds the potential reduction in both input and output Goods and Service Tax (GST) for EVs and spare parts—a move that would significantly enhance accessibility and broaden the reach to the masses. Additionally, hopes are high for increased financing opportunities, propelling research and development to a larger scale. This, in turn, would open doors for substantial investments in the ecosystem, accelerating India’s overall adoption of electric vehicles. A crucial aspect lies in the call for added incentives specifically directed at Indian Original Equipment Manufacturers (OEMs), aiming to stimulate advancements in localizing EV technology, fortifying the indigenous industry, and contributing to a more self-reliant and progressive economic landscape for the industry.”
Spokesperson: Kami Viswanathan, President – MEISA, FedEx Express: “FedEx advocates for a strategic allocation towards infrastructure development for more efficient multimodal logistics. Additionally, we emphasize a focus on digitization in the logistics sector to accelerate speed and ease of doing business.
Recognizing the impact of the National Logistics Policy and PM Gati Shakti’s National Master Plan, alongside prioritizing road, sea, and rail cargo infrastructure, we see the expansion of airports as exciting avenues for growth. We urge a consistent budgetary emphasis on expanding airport infrastructure for cargo, strengthening regional airports, and developing dedicated transshipment hubs to optimize belly and freight capacities. We underscore the importance of digitally advancing customs clearance processes through cutting-edge technologies such as artificial intelligence, machine learning, blockchain, and big data. This approach promises improved risk management, compliance, efficiency, and analytics.
As India targets lowering logistics costs and a top 25 global rank by 2030, we anticipate budget initiatives that will sustainably boost manufacturing and trade, particularly benefiting and incentivizing SMEs. We also anticipate initiatives towards greater trade facilitation and further fostering a business-friendly environment aligning with the USD 5 trillion economy goal.”
