Budget 2024: As Union Finance Minister Nirmala Sitharaman prepares to unveil the budget for the financial year 2024-25 on February 1, stakeholders across the FMCG, IT, and auto sectors eagerly await announcements that could shape their future. However, with the looming general election, this budget is expected to be interim in nature, with major policy overhauls likely deferred until July when the incoming government presents the full budget.
FMCG Sector Expectations
In the fast-moving consumer goods (FMCG) sector, stakeholders anticipate investments in digital infrastructure, skill enhancement, job creation, and support for MSME development. Additionally, increased allocations to schemes like the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and proactive measures in agriculture are sought to bolster rural household incomes and revive consumption spending.
IT Sector Expectations
Encouraging extended tax holidays for startups and incentives for research and development in artificial intelligence and deep technologies, stakeholders emphasize the necessity of fostering innovation. Additionally, skilling programs and partnerships in higher education, with a focus on digital skills, are seen as critical for enhancing India’s talent pool in AI and data science.
Auto Industry Expectations
The auto sector seeks simplification of the complex tax structure, particularly in the realm of electric vehicles (EVs). Requests include reducing GST rates on EV components and batteries, extending FAME subsidies, clarifying tax treatment on EV charging, ensuring eligibility for Input Tax Credit (ITC) on setting up charging stations, and lowering GST rates on entry-level two-wheelers. Additionally, auto component manufacturers advocate for a uniform tax rate on parts to mitigate disputes arising from differential tax rates.
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