JULY 22, 2024 - As Finance Minister Nirmala Sitharaman prepares to present the Union Budget 2024 on July 23, various sectors of the Indian economy are eagerly anticipating a range of measures that could potentially boost growth and provide much-needed relief. Here's a closer look at the key expectations and potential changes--

Income Tax Relief- There is widespread hope among the common man and salaried individuals for substantial income tax relief. Given the rising cost of living and the impact of inflation, any reduction in tax rates or an increase in the standard deduction would be welcomed. Adjustments in tax slabs and exemptions are also being closely watched as potential tools to increase disposable income.

 Infrastructure Development- Infrastructure remains a critical area of focus. The government is expected to announce significant investments in roads, railways, and urban development projects. Enhanced allocation for smart cities, rural electrification, and water supply schemes could be pivotal in driving long-term economic growth and employment generation.

Social Welfare Schemes- Social welfare schemes are anticipated to receive a substantial boost, especially in sectors like healthcare, education, and housing. Enhanced funding for programs such as Ayushman Bharat, Pradhan Mantri Awas Yojana, and other social security initiatives could be on the cards to support the underprivileged and ensure inclusive growth.

MSME Support- Micro, Small, and Medium Enterprises (MSMEs) are crucial to India's economy, and there is a strong demand for compliance relief to ease their operational burdens. Simplifying GST processes, providing easier access to credit, and reducing regulatory hurdles could be key measures to support this sector's recovery and growth post-pandemic.

Aviation Sector Reforms- The aviation industry is looking for tax restructuring on aviation turbine fuel (ATF) to reduce operational costs and make air travel more affordable. Any reduction in taxes or introduction of subsidies could provide significant relief to airlines and boost the sector, which has been struggling with high fuel costs and fluctuating demand.

Gold Industry Expectations- The gold industry is hopeful for a cut in import duties, which could help reduce the cost of gold and curb smuggling. Lowering import duties would also benefit consumers and the jewelry industry, potentially boosting domestic sales and exports.

Electronics Manufacturing- The electronics manufacturing sector is pushing for policies that promote domestic production. Measures such as extending the production-linked incentive (PLI) scheme, reducing import duties on raw materials, and providing tax breaks for manufacturers could encourage more investments in this sector and reduce dependence on imports.

Focus on Sustainable Growth- Sustainable growth is a priority, with expected investments in renewable energy projects, green technologies, and environmental conservation initiatives. Policies promoting electric vehicles (EVs), solar energy, and waste management could be crucial in ensuring long-term ecological balance and economic resilience.

Research and Development (R&D) Investments- Investments in R&D are essential for fostering innovation and maintaining competitive advantage. Increased funding for scientific research, technology parks, and innovation hubs could accelerate advancements in various fields, from biotechnology to artificial intelligence.

 Corporate Tax Stability- The Confederation of Indian Industry (CII) has recommended maintaining corporate tax stability to foster a favorable business environment. Predictable and stable tax policies are crucial for attracting and retaining investments, and any significant changes could impact business sentiments.

As the Union Budget 2024 approaches, stakeholders across these diverse sectors remain optimistic about the potential measures that could drive growth, enhance competitiveness, and support the overall economic well-being of the nation.