Union budget expectations – TRANSEARCH India
Spokesperson: Uday Chawla, Managing Partner, TRANSEARCH India
Sharing his expectations from the Union Budget, Mr. Uday Chawla, Managing Partner, TRANSEARCH India stated, “In 2024, significant salary increases are being planned for employees by Indian companies, despite the global economic slowdown. An approximately 9.8% salary bump is expected for employees, building on the noteworthy 10% increase observed in 2023.
However, the optimistic outlook for salaried leaders is met with a challenge due to the high-income tax policies in India. Personal income tax, ranging from 5% to 37%, and additional charges contribute to a notable tax burden. In contrast, countries like Hong Kong (15%), Sri Lanka (18%), and Singapore (22%) feature more favourable tax systems, rendering them attractive to top-tier talent. As we now transition to remote working and the globalization of businesses, there is a tangible threat that senior talent may be attracted to relocate to such countries that offer the most efficient tax structures and superior work-life quality and balance.
As India strives to position itself as a global powerhouse, there is a recognized necessity for policies aimed at mitigating the tax burden on salaried employees, particularly senior leaders. The pressing requirement of the hour lies in the meticulous crafting of policies that transcend mere attraction, emphasizing the importance of nurturing and retaining top-tier talent. This strategic approach stands as an indispensable element in fortifying the nation’s competitive edge on the global stage.
While major announcements may be postponed until after the 2024 General Elections, the interim Union Budget presents a significant opportunity to address ongoing concerns and establish a foundation for future economic growth.”
Union budget expectations – ANSR
Spokesperson: Mr. Lalit Ahuja, CEO ANSR
“Export incentives
Boosting export benefits, like the ones under section 10AA of the IT Act (which is now scrapped), can help GCCs in India grow and thrive. This will keep India a top place for global business.
The reduced tax rate of 15% currently enjoyed by newly established domestic manufacturing companies should be extended to newly formed GCCs. This aims to encourage the inception and smooth operations of these centers, fostering their growth and contributing to economic development.
Infrastructure
With the Tier 1 cities getting saturated, it will be encouraging if the budget can introduce steps to enhance the infrastructure and connectivity measures. Boosting infrastructure development in Tier 2 and Tier 3 cities like Jaipur, Ahmedabad, Kochi, and Indore, among others, is vital for furthering the growth of GCCs. While Bengaluru, NCR, Hyderabad, Pune, Chennai, and Mumbai remain prime GCC destinations, expanding infrastructure and connectivity measures in these emerging cities would open new avenues for GCC development. Incentivizing the establishment of GCC parks and hubs in these regions can diversify opportunities and foster balanced growth across the country, ensuring a more inclusive and distributed GCC landscape.
GIFT City
The IFSC unit’s setup in the GIFT City, India offers various tax benefits like exemptions on corporate tax, tax holiday for ten years, reduced Minimum Alternative Tax (“MAT”), etc. increasing the profitability and hence the growth of the business houses. Extending these tax advantages to other industries is crucial to unleash GIFT City’s complete potential as a center for GCCs and to support economic expansion.
Startup ecosystem
We anticipate the budget to prioritize incentives for the startup ecosystem, fostering innovation. We need a more favorable capital gain tax system that encourages easy access to capital. The government should also consider tax exemptions in FDI and maintain a sharp focus on start-up infrastructure development. As innovation has emerged as the primary focus area in GCC strategy, start-up collaboration gives GCCs access to newer technologies that can help further the innovation agenda of the enterprise. With GCC revenue expected to scale up to $100 billion by 2030, it is important for the government to take prudent steps to help start-ups, thus creating more fertile soil for GCCs. “
Union budget expectations – All India Gaming Federation
Spokesperson: Roland Landers, CEO, All India Gaming Federation
Standing at the dawn of a digital revolution, the union budget is an opportunity to fuel the trajectory of India’s online gaming ecosystem. Looking forward to the same; Mr. Roland Landers, CEO, All India Gaming Federation stated, “There have been significant regulatory strides in the online gaming sector, and we anticipate progressive allocations to be made towards the sector in the upcoming union budget, including towards the implementation of IT Rules for online games and the establishment of self-regulatory bodies. Additionally, we look forward to budgetary allocations aligned with the AVGC policies, in line with the recommendations of the AVGC Task Force’s report from the Ministry of Information and Broadcasting.
Given the highly positive outlook for this industry, there is much for the gaming sector to anticipate. We envision this budget to be a symphony of support, by aligning regulatory clarity with fiscal incentives and strengthening legal infrastructure to encourage growth. With the right notes, the online gaming industry can be a cornerstone of Digital India and serving as a catalyst for the government’s vision of Amrit Kaal – a five trillion-dollar economy.
Union budget expectations – Witzeal technologies
Spokesperson: Ankur Singh, Founder & CEO, Witzeal Technologies
Union Budget 2024 stands at a crucial juncture for deciding the future of the online gaming industry in India. Sharing his expectations from the Union Budget, Ankur Singh, Founder & CEO, Witzeal Technologies stated, “We eagerly await the upcoming budget, particularly with regards to finding a resolution of ongoing concerns related to taxation to create a predictable and attractive business environment.
Apart from that having an investment in programs and initiatives to nurture skilled professionals and build a robust gaming workforce will go a long way in boosting the growth prospects of the entire industry especially startups like us. Also, we urge the government to look into advancements aligned with the AVGC policies, as recommended by the Task Force, to boost the entire AVGC ecosystem.
Lastly, we encourage the government to consider incentivizing responsible gaming practices within the industry. Promoting responsible gaming technology and consumer education initiatives through tax benefits would strengthen the sector’s commitment to player safety and ethical conduct.
Union budget expectations – VBev
Spokesperson: Mr. Sumedh Singh Mandla, CEO, VBev
Holding an optimistic outlook for the forthcoming budget and expecting it to recognize the potential of the liquor industry, Mr. Sumedh Singh Mandla, CEO of VBev, expressed: “As we eagerly await the unveiling of the 2024 Union Budget, our optimism is not merely aspirational but grounded in the anticipation of a transformative fiscal plan that propels growth, nurtures innovation, and champions sustainability. We envision a forward-looking policy that fortifies entrepreneurship, enhances infrastructure, and creates an environment conducive to the flourishing beverage sector.
Our emphasis is on a tax policy that not only fuels industry growth but harmonizes seamlessly with responsible practices. Looking beyond borders, the budget holds the potential to strategically address international trade dynamics. Advocating for impactful Free Trade Agreements (FTAs) with other nations to unlock new opportunities for the beverage sector, elevating global competitiveness, and opening new markets for Indian beverages. A well-balanced tax structure, supportive policies, and strategic international collaborations will not only elevate our industry but also make substantial contributions to India’s economic development.
I firmly believe that a forward-looking fiscal policy can act as a catalyst for transformative change, providing the necessary momentum for businesses to flourish and pave the way for a more prosperous and luminous future.”
Union budget expectations – CredAble
Spokesperson: Nirav Choksi, CEO & Co-founder at CredAble
“Last year, the Union Budget tabled by the Honourable Finance Minister, Nirmala Sitharaman was a progressive one, listing the seven top priorities that would guide the government through the Amrit Kaal.
Ranking as the third largest FinTech hub, India is at the forefront of global growth. FinTechs in India have demonstrated remarkable resilience over the years, backed by timely regulatory support and strong business fundamentals. India’s distinctive digital public infrastructure has been an undeniable driving force behind the upward trajectory of the FinTech sector.
The upcoming Union Budget in 2024 presents an opportune moment to chart the course for the sustainable growth of FinTechs in the Indian economy. Introducing incentives for FinTechs committed to empowering underprivileged SMEs through financial and technical support would be a much-welcomed move. Additional measures, such as maintaining the profitability of state-owned banks, enhancing credit guarantee schemes for MSMEs, introducing PLI schemes, and augmenting subsidies for small businesses, are eagerly anticipated. The financial services industry also expects key announcements pertaining to the management of Non-Performing Assets (NPAs).
Despite the finance minister signaling a lack of major announcements in the forthcoming budget before the 2024 general elections, the FinTech sector remains optimistic about the government’s commitment to implementing policies that foster sectoral growth, enhance outreach, and amplify India’s digital presence.”
Union budget expectations – Credilio
Spokesperson: Mr. Aditya Gupta, Founder & CEO at Credilio
“We are optimistic about the upcoming budget and hopeful that the focus on fortifying digital financial infrastructure demonstrates a commitment to advancing financial technology.
After the recent regulatory enhancements, allowing tax breaks should create a conducive environment for fintech innovation, empowering FinTechs to explore new avenues responsibly.
We would be eager to see emphasis on incentivizing fintech in under-serviced areas which complements our objective of creating a robust distribution infrastructure for financial inclusion. Thus, government support is pivotal in catalysing positive change at the grassroots level.
Recognition of fintech’s role in empowering MSMEs and SMEs, coupled with targeted incentives for Tier 2, 3, and 4 cities, should highlight a strategic push toward lasting financial inclusion.
Additionally, the consideration of permitting NBFCs to offer credit cards acknowledges fintech’s evolving landscape, showcasing a commitment to adapting to changing financial dynamics will be a big win for the financial sector and the nation.”
