The upcoming budget in July 2024 is expected to and offer India the opportunity to position itself as a global force to be reckoned with by building on the strong economic performance of the last decade.
Here are some of the expert opinions from some of the industry veterans on expectations of the budget .
Mr. Avneet Singh Marwah, CEO, Super Plastronics Pvt Ltd
“The Union Budget of 2024 holds a critical role in ensuring India maintains its status as the world’s third-largest economy. India’s contribution of $3.7 trillion to the global economy, within a total of $100 trillion, coupled with its largest population of young individuals, presents substantial untapped potential. To unlock this potential, it is crucial for the government to stimulate consumption. Drawing on the successful implementation of GST reforms, an anticipated reduction in the GST rate for LED TVs larger than 32 inches, from the current 28% to 18% in Budget 2024, is expected. This adjustment aims to encourage consumer spending in the electronics sector. Additionally, expanding Production-Linked Incentive (PLI) schemes to include smart TVs, refrigerators, and washing machines is essential to foster broader market growth and enhance manufacturing capabilities.
Furthermore, there is a proposal to review income tax slabs to increase disposable income for taxpayers. This move is anticipated to spur higher expenditure and elevate overall consumption levels across various sectors of the economy. Together, these measures are designed to harness India’s economic potential, empower its youth demographic, and strengthen its global economic standing.”
“A low corporate tax rate will incentivize both global and domestic businesses to establish manufacturing facilities in India by reducing the early startup costs and enabling them to maintain price competitiveness. This would further advance the “Made in India” campaign and encourage businesses to introduce cutting-edge and technological know-how to India, improving productivity and quality. Additionally, it is very important to scale the existing PLI scheme for electronics to encourage Indian manufacturers.”
Mr. Varun Gupta, Co-Founder of BOULT
As we look forward to the upcoming budget, I am filled with hope and anticipation. I believe that extending support for the (PLI) scheme is crucial for nurturing an entrepreneur-friendly ecosystem within the wearables segment.
We’ve seen remarkable success in the semiconductor sector, which inspires us to achieve similar milestones in our industry. Major tech firms are increasingly choosing to relocate their manufacturing to India, drawn by our nation’s supportive policies. This shift has allowed us to reclaim nearly half of the market share previously held by global competitors. We at BOULT, aim to strengthen the entire electronics value chain and reduce our reliance on PCB and other components sourced from China.
Moreover, I am also excited about the potential influx of foreign capital, which we believe will catalyse significant growth within the startup sector. I am optimistic that with continued support, our industry can thrive, contributing to a vibrant and self-reliant economy. We look forward to collaborating with the government to make this vision a reality.
We eagerly await the upcoming Budget, hoping for initiatives to boost the electronics manufacturing industry. Differential tax rates and an expanded Production Linked Incentive (PLI) can promote local manufacturing, attract investment, drive innovation, and create jobs. Incentives based on overall revenue and reduced corporate tax rates will help businesses thrive. Simplifying compliance, prioritizing R&D, and optimizing supply chains are essential for the consumer durables industry to flourish.
Lowering GST on these products from 28 percent to 18 percent will boost sales and stimulate economic growth. Clear policies and stable regulations will encourage new product launches and meet evolving consumer needs. A comprehensive approach will build a robust economy, create high-quality devices, and foster national prosperity.”
Mr. Ravi Kunwar, Vice President – India & APAC, HMD Global (The Home of Nokia Phones)
“As we anticipate the Interim Union Budget 2024, HMD Global holds optimistic expectations for the Indian smartphone market. Foreseeing an extension or enhancement to the Production Linked Incentive (PLI) policy, we aim to fortify local production and encourage an indigenous components supply chain. The budget’s positive impact on operations, particularly in local manufacturing, is anticipated, though precise planning hinges on final announcements. Our wish-list emphasizes more incentives for local production, encouragement for components manufacturing within India, and support for exports. In the face of potential changes, we stand ready to make necessary adjustments, anticipating a budget that builds upon existing policies for stability and growth. HMD Global remains committed to contributing to India’s self-reliance and the global success of its smartphone industry.”
Mr. Mukesh Taneja, CEO AND CO-FOUNDER AT GT FORCE
As we approach the Union Budget 2024-25, GT Force, an emerging player in the electric two-wheeler segment, views this as a critical juncture for India’s EV industry. With the short-term EMPS 2024 set to end on July 31, 2024, we urge the government to introduce a robust, long-term successor to this scheme that addresses the evolving needs of the EV ecosystem. This new framework should not only continue demand incentives for consumers but also focus on supply-side interventions to boost domestic manufacturing and innovation. Specifically, we anticipate increased budgetary allocation for expanding EV charging infrastructure nationwide, as this remains a key factor in boosting consumer confidence in electric mobility. We also hope to see incentives for battery technology development and localization of EV components, which are crucial for reducing costs and enhancing the competitiveness of Indian-made EVs. Furthermore, we expect the government to consider reducing GST rates on EV components and batteries from the current 18% to 5%. This tax rationalization would help offset the potential price increase resulting from the conclusion of subsidy programs and keep EVs affordable for the masses. For startups like GT Force, we hope to see targeted initiatives that support R&D, provide easier access to capital, and offer production-linked incentives. These measures would enable us to scale operations, innovate rapidly, and contribute more significantly to India’s EV manufacturing capabilities. Moreover, we anticipate policies that promote the integration of EVs with renewable energy sources and support the development of a circular economy for EV batteries. This holistic approach would not only boost the EV industry but also align with India’s broader climate goals and commitment to sustainable development.
Mr Rahul Garg, CEO & Founder-Moglix
Corporate India is eagerly anticipating the upcoming budget, hoping it will continue to prioritize infrastructure development, which is crucial for sustained economic growth. They also seek increased support for MSMEs, recognizing their role in job creation. Additionally, easing and streamlining the licensing process for electronics imports is needed to enhance efficiency.
From the startup perspective, they are integral for a Viksit Bharat. The recent $7 Bn funding raised in H1 2024 showcases promising growth potential. To further accelerate this momentum, the elimination of the Angel Tax on startups would be a welcome move as it can increase domestic capital formation and ease of doing business.
Lastly, there is a need to expand the scope of the PLI scheme. By including labour-intensive sectors and those with strong linkages to MSMEs, PLI scheme could be a game changer for the manufacturing industry in India as it fosters innovation and will drive exports and employment generation. PLI schemes have the potential to act as accelerators for high-quality job creation while giving a substantial boost to domestic manufacturing. Additionally, the industry is also looking forward to incentivisation in manufacturing sector to boost consumption.
Mr. Kishan Jain, Director at Goldmedal Electricals
As we embark on a new fiscal year, we are optimistic about the government’s potential measures to boost growth and innovation in the home automation and smart home electrical sector. With the India Consumer Electronics Market valued at USD 80.8 Billion in 2024 and projected to reach USD 149.1 Billion by 2033, the sector is poised for substantial growth. We anticipate this will boost robust advancements in smart home technologies, resulting in modernizing our electrical infrastructure. These advancements will elevate consumer living standards and also position India competitively in the global smart home industry. The Indian real estate sector has undergone a significant transformation in recent years, with a spotlight on the flourishing luxury housing segment. This surge in demand for premium properties underscores the increasing appetite for high-end electrical products. Therefore, we are hopeful that the upcoming budget will include measures to promote the integration of smart innovation in luxury real estate developments, further driving demand for advanced electrical products. Significant investments in energy transformation initiatives are expected, which is crucial for achieving India’s ambitious goal of net-zero carbon emissions by 2070. This will accelerate the adoption of energy-efficient solutions powered by cutting-edge technology and automation. Additionally, policy measures and tax incentives can significantly boost domestic manufacturing and promote sustainable practices within the consumer durables and fast-moving electrical goods (FMEG) sectors. This is essential for forging a greener, more sustainable future. Expenditures in Industry 4.0-specific skill-development initiatives are anticipated as well, promoting widespread employment and propelling national economic expansion .”
Mr. Akash Gupta, Co-Founder & CEO, Zypp Electric
To achieve net-zero carbon emissions, the government must focus on maintaining policy continuity. Inclusion in the priority lending scheme and reducing GST for EV services from 18% to 5% will accelerate EV-led delivery adoption. Recognizing last-mile delivery as a distinct sector under logistics policies is essential, given that one-third of shipments fall within this category. Establishing industry standards, supporting gig delivery partners with tailored schemes, and implementing standard operating procedures (SOPs) will enhance efficiency and foster growth in this vital but often overlooked segment of the logistics industry. An extension of the existing EMPS scheme will result in better stakeholder sentiment and investor confidence. With increased government support in driving localization to cut down costs, infrastructural advancements in terms of establishing a robust charging infrastructure will further aid in boosting customer awareness, focus on job creation will foster strong collaborations and necessitate substantive developments for the EV sector.
“With close to 25% of the global workforce coming from India over the next decade, skill development and empowerment should be a strategic imperative. A skilled workforce is crucial for economic development. As technology rapidly advances, we need to prepare young people with a mix of education and skills to help meet the future needs of our economy. Now is the time to bolster digital literacy by establishing dedicated centres of excellence.
Looking ahead to Budget 2024, another area that calls for a greater emphasis is research and development (R&D) initiatives to enhance our competitiveness especially in AI. I remain optimistic that the government will introduce more ground-breaking and transformative initiatives, thus elevating AI use cases and intellectual property creation. By accelerating AI innovation, we can enhance the country’s technology development ecosystem and provide a major boost to sectors including healthcare and automotive among others.
In addition to AI, we must also elevate the country’s technology development ecosystem by strengthening the semiconductor space, which can provide a greater boost to sectors including healthcare and consumer electronics among others.
As we focus on advancing technology, sustainability should always remain top of mind. The need of the hour is to focus on sustainability and energy efficiency solutions to reduce carbon emissions. Now more than ever, there is a need to prioritize sustainable development and green initiatives, such as electric vehicles and renewable energy projects.
Together, we have the opportunity to shape a future where India leads in technological advancements and innovation.”
Mr. Yug Bhatia CEO and founder of controlZ
“I believe that a robust policy framework that defines standards, certifications, warranties, and taxes is crucial for the growth of the refurbished smartphone industry in India. From this Budget 2024, we predict a reduction in the GST rate to make refurbished devices more affordable and accessible to a wider audience. We are also expecting that the government will boost credit access and financing options, along with collateral-free and low-interest loans to the refurbished smartphone players. We propose that the government provide tax benefits and subsidies to the refurbished smartphone players who invest in R&D, AI to promote innovation and technology adoption in this sector. Lastly, we advocate for a focus on the circular economy and its environmental benefits, viewing it not just as a business opportunity but as a collective responsibility to make this sector more organized.”
Mr. Pankaj JHA, Managing Director of MAXHUB
“As a leading provider of educational technology solutions in India, MAXHUB eagerly anticipates the upcoming budget’s focus on bolstering digital education. We hope to see robust allocations for EdTech infrastructure, comprehensive tax reforms benefiting electronics manufacturing, and initiatives fostering R&D and skill development. These measures not only enhance educational outcomes but also strengthen India’s position in the global digital economy.”
Covered By: Mobility India / Budget
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