From Mutual Fund Sector To Infrastructure Capex: Top Union Budget 2024-25 Expectations

The country is currently focusing on the Union Budget 2024-25, which PTI reports is expected to be presented in Parliament in the second half of July. According to the agency, pre-budget conferences between industry chambers and Finance Minister Nirmala Sitharaman are scheduled for June 20. The country is thrilled to see Narendra Modi start his third term as prime minister and is expecting government help in the upcoming budget. Industry insiders from a variety of sectors have revealed their expectations for the Union Budget below.

Chakrivardhan Kuppala, Cofounder and Director, Prime Wealth Finserv Pvt Ltd

The upcoming budget should prioritise economic recovery with increased infrastructure spending and robust support for MSMEs. In the mutual funds sector, which has seen Assets Under Management (AUM) grow to ₹57.26 trillion as of April 2024, there is a need for policies that boost investor confidence. This includes tax incentives, regulatory clarity, and promoting financial literacy. Additionally, ensuring sustainable growth through environmental, social, and governance (ESG) investments can further strengthen the sector.

Dhwani Mehta, Founder & Director, OpportuneHR

With over 6.3 crore enterprises, India's MSME sector has emerged as a crucial and dynamic sector of the economy. The MSMEs are important because they foster entrepreneurship and generate self-employment opportunities. As we look forward to the next fiscal budget, we hope the government will introduce additional reforms to enhance MSMEs' growth and resilience. We expect the new Finance Minister to focus on key areas that will help SME to strengthen enterprise security - Protect MSMEs from external risks such as cybersecurity threats, economic shocks, and supply chain disruptions.

Additionally, we want Modi 3.0 to encourage adopting best practices for data security and risk management for small businesses. There should also be a focus on streamlining regulatory processes and reducing bureaucratic hurdles for MSMEs. We hope that Modi's third term will advocate for fostering collaboration between government, academia, and the private sector at the grassroots level to create a more supportive ecosystem for MSMEs. These measures will be instrumental in ensuring future sustainable growth and resilience for MSMEs.

Dr. Jay Goyal, (Eye Surgeon, LASIK & Retina Specialist), Director, Surya Eye Hospital

The healthcare sector has always been the cornerstone of a thriving nation. As the new Finance Minister takes charge, we anticipate the government's support through increased funding and policy support. India's healthcare sector must strengthen its infrastructure, invest in advanced medical technologies, and ensure affordable care for all citizens. A robust healthcare system is vital for our population's well-being and the country's overall growth. The eye care market in India is currently valued at $67.53 million. It is projected to experience an annual growth rate of 5.18% from 2024 to 2029. This growth is driven by Indian consumers becoming more conscious about their eye health and seeking professional eye care services. The rising prevalence of eye-related issues, such as myopia, cataracts, and glaucoma, has increased the demand for eye care products and services. Additionally, growing awareness about the importance of regular eye check-ups and the availability of advanced diagnostic and treatment options have further boosted customer preferences for eye care. Therefore, we urge that the upcoming health budget place special focus on the growth of the eye care sector in India.

Rohit Chauhan, Director, Cannarma

As Narendra Modi begins his third term as Prime Minister, we are excited and hopeful for government support in the upcoming budget. The hemp-based products industry is currently experiencing growth and is valued at $9.1 billion. As more people become aware of the benefits of hemp, it can achieve the target of being a trillion-dollar market by 2030. We hope the next Finance Minister announces significant investment in research and development and progressive steps towards legalisation. These measures are crucial for the growth and innovation of hemp products, which can significantly contribute to the economy and sustainable practices.

Vaibhav Jain, CEO, Aayush Bharat

The Aayush based healthcare and wellness sector is expected to reach $70 billion by next year. We are standing at a critical juncture and need the right support and guidance from the government. This will help us to lead a transformative impact on holistic health practices in India. We urge the next Finance Minister to introduce a special package to bolster the Ayush sector in the upcoming budget. With this, Aayush infrastructure, research, and accessibility can be improved greatly. In addition, we hope that Ayush products will receive subsidies and that there will be incentives to support Ayush startups. The government's support will prove to be an important milestone that will preserve our traditional wellness practices and integrate them into mainstream healthcare.

Shruti Jain, CSO, Arihant Capital

The NDA-led Modi government, now in its third term, is set to present the budget in mid-July. Expectations are high for populist measures due to the coalition government. Although no one can really be sure what the budget will unfold, this budget will be all about balancing reforms and growth.

Anticipated measures include supply-side reforms, boosting manufacturing, implementing labour laws, skill development, and creating employment opportunities, particularly in low-skilled, labour-intensive manufacturing. The government is expected to continue its fiscal consolidation efforts by increasing revenue. They would also focus on boosting rural spending, as these areas are yet to recover their purchasing power since the pandemic.

We expect the government to continue prioritisation on infrastructure capex, focus on defense and agriculture sectors, and strategic sale of central public sector enterprises (CPSEs), including Shipping Corporation, NMDC Steel Ltd, IDBI, BEML, HLL Lifecare and PDIL.