Budget 2024 Highlights: Fintech industry awaits initiatives for digital infrastructure and financial inclusion

The Satcom Industry Association-India (SIA-India), in its memorandum, has pushed for a substantial increase in India’s space budget, from the current $1.4 billion to an ambitious $62 billion. This, the SIA-India said, will align India’s space spending with global leaders, specifically the United States. 

The rationale underlying this proposition underscores the potential to engage the private sector, drive technological advancements, and position India as a formidable force in the rapidly expanding global space economy.

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R Dinesh, President of the CII said,”Equitable growth has been one of the core focuses of this government. Whether it’s from the rural side or sectors needing support and growth, that’s an expectation we all have for this Interim Budget.”

Sanjiv Puri, President Designate of CII said that investment to build rural infrastructure will be helpful to the Indian economy. He said, “Weather events have been bothering rural areas, impacting agriculture and incomes. A strong movement for enhancing agriculture resilience, through a public-private partnership model, is needed.”

R Dinesh, President of the Confederation of Indian Industry (CII) in discussion with CNBC-TV18 said, “I think this government has been very focused. The Prime Minister himself has made it very clear that AI in India will be used in the best manner possible, responsibly.”

“If you look at how we have derived the advantage out of the digital transition, and also utilisation of digital public infrastructure, I believe we can take the lead on the AI side,” Dinesh added.

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This Budget is expected to prioritise fiscal discipline and avoid populist measures. However, there is optimism for potential relief in the realm of personal income tax, particularly in the New Tax Regime, hopes ClearTax’s Avinash Polepally.

Roshan Shah, co-founder and CEO of VoloFin said, “The fintech industry is the backbone of India’s economic growth and resilience. We expect the Interim Budget 2024 to recognise the potential and challenges of fintech and provide an ecosystem to support and enable it to operate.”

“VoloFin supports the continuous growth of exporters, from SMEs to large corporations, across industries and geographies, and delivers instant liquidity with no collateral through our state-of-the-art technology platform. We hope that the government will facilitate the adoption of trade financing, simplify tax and compliance standards, and promote financial digitization and innovation.”

“We anticipate the Interim Budget 2024 to align with the government’s mission of uplifting the underprivileged and urge the government to introduce beneficiary schemes, especially as the General Sabha election approaches, focusing on the socio-economic empowerment of the marginalised.”

“We hope for policies supporting our growth, particularly in Tier 2, 3, and 4 cities, aiming to integrate rural communities into the formal banking system. Incentivising FinTech dedicated to empowering SMEs through financial and technical interventions would mark a significant stride.

Addressing loan disbursement including loans against gold/jewellery, we recommend regulations fostering collaboration between traditional banks and digital lenders for accessible loans,” Anuj Arora, Co-founder & COO, SahiBandhu Gold Loans said.

“As we approach Budget 2024, we anticipate a continued focus on advancing India’s digital public infrastructure, a key pillar for realising the $5 trillion economy dream. I look forward to enhanced government initiatives fostering financial inclusion benefiting ‘Bharat’, not just India,” said Sarvjeet Virk, Co-founder & MD, Finvasia.

“On the tech front, I hope to see further progress in establishing AI Centres of Excellence. I also expect more policies to enable public-private partnership to boost end-use-cases of generative and predictive AI and increase its adoption in India. The fintech industry, as usual, will be the flag bearer of innovation,” Virk added.

“The landscape of online new car sales has experienced a substantial surge over the past 4-5 years, driven by an increasing preference for consumers buying cars digitally. We are expecting some key developments from the budget like a reduction in the GST rate that will support home-grown players in investing in newer technologies for enhanced mobility offerings on a global scale. Then, re-evaluation of the import structure for electric vehicles is also sought to address disparities in GST rates, providing a much-needed boost to the start-up community through government loans and investments. As an online new car market player, we are closely monitoring these developments, recognizing their potential impact on the electric vehicle market. Our commitment is to adapt our platform to the evolving landscape, ensuring that our customers have access to the latest and most sustainable automobile options. We look forward to the Union Budget introducing measures that not only support the growth of the electric vehicle industry but also contribute to a more sustainable and eco-friendly future,” Gaurav Aggarwal, CEO and Founder, CarLelo, A Capri Loans Venture said.

Laudating the measures that have helped the countrymen climb the ladder due to macro-economic stability and ensuring that the common man aspires to and achieves the economic upliftment it deserves, Murmu shared that the last decade has “enhanced the pride of our countrymen.”

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“In view of the upcoming interim Union Budget, we would like to appeal to the government to increase the education sector’s budget, and reduce the GST slab from 18% to 5% on educational products and services. Our aim is to establish a strong foundation for the country’s children, particularly those from economically disadvantaged backgrounds. Additionally, given the evolving world and our shifting approach to education, driving a change to ensure affordable and quality education at scale needs more collaboration for public and private sectors. For this, reducing the GST on educational services would also remove financial strain on parents, promoting affordability. Apart from this, focusing on collectively enhancing youth skills to increase employability and reduce skilling gaps is imperative for the Indian economy’s growth,” Prateek Maheshwari Co-Chair India Edtech Consortium (IEC), Co Founder- Physics Wallah (PW) said.

Highlighting the work of the Narendra Modi government, Murmu congratulated the Prime Minister for passing of the women’s reservation bill. “My government is working at every level to empower women,” says President Murmu.

Although domestic travel has skyrocketed in India, In-bound tourism is yet to recover to pre-COVID levels. This is something the hotel and tourism industry is expecting even as Finance Minister Nirmala Sitharaman is expected to present an interim budget.

As Finance Minister Nirmala Sitharaman prepares to present a vote-on-account budget on February 1, 2024, the hotel and tourism industry anticipates measures for the revival of inbound travel.

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India’s success with Chandrayaan-III and plans for the Gaganyaan mission have heightened expectations for Budget 2024. The Satcom Industry Association-India has proposed a substantial increase to India’s space budget, aiming for $62 billion to align with global leaders. Last year, the Finance Minister allocated ₹12,543.91 crore to the Department of Space.

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Ahead of the upcoming Interim Budget 2024, India is setting its sights on tapping into the gender dividend, recognising the pivotal role women play in the nation’s development. Prime Minister Narendra Modi has made this clear by saying that this Budget session is going to be the celebration of ‘Nari Shakti’.

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