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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“My Government is working towards making India, a major space power of the world. This is a mode to make human life better. This is also an effort to increase India’s share in the space economy. Important decisions have been taken for the expansion of India’s space program. Several new space startups have been formed. The day is not far when India’s Gaganyaan will go into the space,” President Murmu said.

“Tourism is a sector that provides employment opportunities to the youth. A record number of tourists are reaching the northeast region. There is excitement among people about the Andaman Islands and Lakshadweep….Around 13 lakh devotees have taken darshan at Ayodhya Dham after ‘Pran Pratishtha’,” President Murmu said.

“The government is building modern infra on our borders. Our Forces giving befitting reply to terrorism and expansionism. The meaningful results of my government’s efforts for internal peace are in front of us. There is an atmosphere of security and safety in Jammu &Kashmir. There has been a huge drop in incidents of naxal violence,” President Murmu said.

“…My Government has also taken care of those who were far away from development, so far. In the last 10 years, electricity and road connectivity reached for the first time in thousands of tribal villages. Lakhs of tribal families have started getting clean water through pipelines only now. Under a special drive, my government is taking 4G internet connectivity to thousands of tribal-dominated villages…In tribal families, several generations have suffered from sickle cell anaemia. For the first time, a national mission has been started for this. Around 1.40 crore have had checkups under this, so far,” President Murmu said.

“In the past years, the world witnessed two major wars and faced a pandemic like Corona. Despite such global crises, my government kept inflation under control in the country and did not let the burden on common Indians increase…” President Murmu said.

“My Government believes that the grand edifice of a developed India will stand on four strong pillars – youth power, women power, farmers and the poor,” said President Murmu.

“…In the last 10 years, India saw the completion of several works towards national interest that had been awaited by the people of the country for decades. The construction of Ram Temple was awaited for centuries. Today, it has become a reality…Abrogation of Article 370 from J&K is history now,” President said.

“The achievements that we see today are the extension of the practices of the last 10 years. We heard the slogan of ‘Gareebi Hatao’ since our childhood. Today, for the first time in our lives, we see poverty being alleviated on a large scale,” President Murmu said.

Murmu said, ‘Make in India’ and ‘Aatmanirbhar Bharat’ have become our strengths. The President also lauds defence production crossing the ₹1 lakh crore mark.

“The last year was full of accomplishments for India. There were many successes – India became the fastest-growing economy. India became the first nation to reach the south pole of the Moon. The successful G20 Summit hosted by India strengthened the role of India in the world. India won more than 100 medals in Asian Games. India also got the Atal Tunnel,” President Murmu said.

“…This is my first address in the new Parliament building. This grand building has been built at the beginning of the Amrit Kaal. This has the fragrance of ‘Ek Bharat, Shreshth Bharat’…This also has the resolve to honour democratic and parliamentary traditions. Besides this, it also has the resolve to build new traditions of the new India of the 21st century. I am confident that there will be meaningful conversation on policies, in this new building,” President Murmu said.

“This time, Finance Minister of the country, Nirmala Sitharaman will present the budget with ‘disha-nirdeshak baatein’. I am of the firm belief that the country is going ahead by crossing new heights of progress every day. All-round and inclusive development is taking place. This journey will continue with the blessings of people…” PM Narendra Modi said.

Ahead of the Budget session, PM Narendra Modi addressed the media outside the Parliament.

“…At the end of the first session that was convened in this new Parliament building, the Parliament took a graceful decision – Nari Shakti Vandan Adhiniyam. After that, on 26th Jan we saw how the country experienced the capability of Nari Shakti, its valour, the strength of its resolve. Today, when the budget session begins, President Drouapdi Murmu’s guidance and tomorrow when Nirmala Sitharaman presents the interim budget – in a way this is a festival of the Nari Shakti,” he said.

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.

Indian funds, insurers and banks have increased their positions in longer-duration bonds in anticipation of the federal government’s interim budget being fiscally conservative with no pre-election spending surprises.

Finance minister is set to present the country’s federal budget for 2024/25 on Feb.1, with expectations of the government reducing its fiscal deficit by at least 50 basis points (bps) and keeping its gross market borrowings flat in the range of 15-15.5 trillion rupees ($186.47 billion).

Recent bond auctions saw bids that surpassed expectations, said Alok Singh, group treasury head at CSB Bank, suggesting the market is positioning for a favourable budget, especially for long-term bonds.