Budget 2024 Wishlist: Top Sectors Share Hopes and Plans for Growth

As an investor, you’re probably eagerly awaiting Budget 2024, knowing its impact on various sectors could shape your investment decisions. Key areas like railways and agriculture, alongside emerging industries such as renewable energy and electric vehicles, are particularly important. You’ll want to pay attention to the budgetary allocations these sectors might receive and the growth strategies the government plans to implement. This analysis will help you understand what opportunities these key sectors might present based on the anticipated budgetary support and development plans.

Railways

• Expectations: Continued focus on modernization, safety upgrades, network expansion, and electrification.
• Why: To significantly enhance transportation efficiency, reduce travel times, and improve safety standards, paving the way for a safer and more efficient railway system.
• Growth Plan: Investment in high-speed rail corridors, existing infrastructure upgrades, and increased electrification to reduce carbon emissions.

Agriculture

• Expectations: Increased investment in agricultural research, infrastructure, irrigation projects, crop insurance schemes, and initiatives to boost farmers' income and productivity.
• Why: To address agricultural challenges, ensuring food security, and enhancing the livelihood of our farmers, thereby strengthening the backbone of our economy.
• Growth Plan: Development of advanced farming techniques, improved irrigation facilities, and better market access for farmers.

Infrastructure

• Expectations: New infrastructure schemes and national highway/expressway construction targets.
• Why: To stimulate economic growth, improve connectivity, and create jobs.
• Growth Plan: Expansion of road networks, construction of new highways, and urban infrastructure development projects.

Defence

• Expectations: Significant announcements for indigenous defence manufacturing.
• Why: To enhance national security and promote self-reliance in defence production.
• Growth Plan: Encouraging domestic defence manufacturing through incentives, partnerships, and investment in R&D.

MSME Sector

• Expectations: Schemes to improve supply chains, enhance manufacturing capabilities, and provide concessional loans or affordable credit.
• Why: To support small businesses crucial for employment generation and economic stability.
• Growth Plan: Facilitating access to finance, technological upgrades, and market expansion initiatives.

FMCG Sector

• Expectations: Schemes to boost rural consumption, protection for oilseed farmers, and support for the oleochemical industry.
• Why: To foster a stable market, and drive income generation and economic activity.
• Growth Plan:
• Capital Expenditure Focus: Support for private sector manufacturing and services
• Agriculture Accelerator Fund: Increased funding to improve farming practices

Logistics Sector

• Expectations: Sustainable growth measures focusing on electric vehicles and renewable energy.
• Why: To reduce carbon footprint and operational costs, promoting environmental sustainability.
• Growth Plan: Adoption of Electric Vehicles: Increase the usage of electric vehicles in logistics operations.

Renewable Energy Sector

• Expectations: Major announcements following the scheme for rooftop solar energy capacity. Aim to meet half of energy requirements through renewable sources by 2030.
• Why: To combat climate change and reduce dependency on fossil fuels.
• Growth Plan: Expansion of solar, wind, and other renewable energy projects, with incentives for private sector participation.

Oil and Gas Sector

• Expectations: Focus on green hydrogen, increased gas consumption, and infrastructure investments.
• Why: To facilitate the energy transition and ensure a sustainable energy future.
• Growth Plan:
• GST Inclusion: Demand for gas to be included under GST for price stabilization.
• Alternative Fuels: Emphasis on compressed biogas and development of a grid system framework for energy transition.

Healthcare Sector

• Expectations: Investment in Centers of Excellence and Innovation Hubs for medical research.
• Why: To promote advancements in medical science and improve healthcare outcomes.
• Growth Plan: Adoption of telemedicine and remote healthcare monitoring to enhance healthcare accessibility.

Travel and Tourism Sector

• Expectations: Simplified GST system with a consistent 12% rate for hotels, lower GST for internet reservations.
• Why: To streamline tax processes and promote ease of travel bookings.
• Growth Plan: Continued funding for UDAN roads, trains, and airports to enhance infrastructure.

Manufacturing Sector

• Expectations: Policies to encourage adoption of AI and IoT. Policies to rationalise tax structure, give emphasis on R&D and introduce schemes such as PLI to improve competitiveness in the domestic as well as global markets.
• Why: To enhance operational efficiency and competitiveness in global markets.
• Growth Plan: Investment in infrastructure to simplify supply chains and enhance operational effectiveness.

Fintech Sector

• Expectations: Policies to foster innovation, financial inclusion through a conducive regulatory framework, and improved public digital infrastructure.
• Why: To promote financial access and technological advancements in financial services.
• Growth Plan: Emphasis on blockchain, AI, and cybersecurity technologies to drive innovation and safety.

Education Sector

• Expectations: GST exemption on all educational expenses and emphasis on digital literacy and vocational training.
• Why: To equip the workforce with necessary skills for the digital economy.
• Growth Plan: Collaboration between industry and academia to improve workforce skills through skill development programs.

Real Estate Sector

• Expectations: Interest subsidy programs for home loans, tax incentives like inclusion in GST and additional tax relief for homebuyers, as well as reduction of regulatory bottlenecks
• Why: To stimulate housing demand and affordability.
• Growth Plan:
• Industry Status for Housing: Granting industry status to the housing sector.
• Simplified GST for Real Estate: Streamlining GST processes to boost transparency and ease of operations.