The government will present the much-awaited consolidated Union Budget 2024-25 in July. In February this year, the Union Finance Minister, Nirmala Sitharaman, announced an Interim Budget. The upcoming Union Budget 2024 is expected to highlight the new government's policy measures. The focus is likely to be on maintaining high growth rates and reinforcing India's position as the fastest-growing major economy in the world. Stay tuned for an in-depth analysis and key highlights as we explore the Union Budget, examining its implications for India's economy. Watch this space for insightful commentary and expert perspectives on the India Budget 2024.

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Decoding Union Budget 2024

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23 July 2024 | 4:00 - 5:00 pm

Our Leaders' POV on Union Budget announcements

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

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

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

Naveen Malpani, Partner, FMCG & Consumer Goods 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

We hope for substantial increase in the overall health budget to reh 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

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

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 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

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