Budget 2024: Indian Middle Class To Industry Experts From Healthcare, Education And Other Sectors Share Expectations

Finance Minister of India, Nirmala Sitharaman will be presenting the Interim Budget statement for financial year 2024-25 on February 1, 2024. Currently, the nation awaits the government's financial plans, and allocations to each sector, and eyes the introduction of new policies for the coming year.

Meanwhile, we thought of bringing you the budget expectations from different sectors across India ahead of the budget announcement. We spoke to individuals from the middle class and experts from the healthcare, education and other sectors to understand the wishlist of India.

What Does The Middle Class Want?

Since the middle class forms a significant part of the population and a big contributor to the country's economic growth.The expectations of the middle class thus plays an integral role in the budgetary process as they reflect on the expectations of a significant part of the population.

The Indian middle class faces a myriad of challenges, from income disparities to the cost of living to debt accumulation among others. We spoke to some members from this segment of the country and interestingly, a reduction in GST is on every individual's wishlist.

"Reduction in Goods and Services Tax (GST) in India will be beneficial for all sectors. It will help the consume save money, boost consumer spending and also encourage investments, further improving economic growth," said Krishna Malik, a businessman.

"GST rate on food and restaurants makes us think twice before heading out to eat. As a consumer, I feel I am paying a hefty amount even if I am buying a pack of fries. A lower GST will help us save cost and spend more, further helping our nation to head towards a better economy," said Anukriti Srivastava, a corporate employee.

What Do Industry Leaders Want?

Food And Beverage Sector

Expectations: Reduction in GST, restoration of Input Tax Credit (ITC)

Simranjeet Singh, Director of CYK Hospitalities, said, "As restaurateurs, we anticipate a pre-budget focus on vital aspects affecting our industry. The current high GST on raw materials poses challenges, limiting the benefits derived. We hope for a revision to make it more conducive for growth. The cumbersome process of obtaining licenses for bars and restaurants requires streamlining and fostering a business-friendly environment. Additionally, the restoration of the Input Tax Credit (ITC) system would be a significant step in supporting the sustainability and prosperity of the restaurant sector. We look forward to measures that promote ease of doing business and contribute to the industry's overall development."

Healthcare Sector

Expectations: Reduction in GST, custom duty rates, government-funded health insurance schemes

Mr. Sanjay Bhutani, Board Member, MTaI & Managing Director, Bausch & Lomb said, “The rising demand for quality medical devices is driven by the growing demand for healthcare due to an increasing population, increased life expectancy, and lifestyle-related ailments. Also, initiatives like Ayushman Bharat (PMJAY) have further advanced the usage of medical devices and equipment. However, high taxes such as customs duty and health cess, along with GST, pose challenges for both patients and the industry. Therefore, we suggest a reduction in customs duty rates to 2.5% across all medical devices, to bring in more accessibility and affordability to Indians”.

Devlina Chakravarty, MD & CEO, of Artemis Hospitals, Gurugram said, "As we stand at the threshold of the 2024 Union Budget, Artemis Hospitals underscores the indispensable role of India's healthcare system in steering national progress. A strategic infusion of resources into healthcare can unlock immense potential, steering our nation towards a healthier and more dynamic future. Our expectation from the government is clear: With India's current healthcare expenditure at 2.1% of GDP, trailing behind the global average of 5-6%, a significant boost to at least 3% of GDP is vital. This step will be important in ensuring accessible and high-quality healthcare for all.”

Sudarshan Suchi, Chief Executive Officer, Bal Raksha Bharat, said, "As India strives towards becoming a developed nation, it is crucial to invest comprehensively in the well-being and development of its children. Hence, a holistic child budget for the fiscal year 2024-25 is proposed, targeting areas that align with the demographic dividend and youth empowerment through skill building. This budget could create a robust foundation for the nation's progress by focusing on the key pillars of skill development for the youth, child-centric health and nutrition, child protection and welfare, strengthening district child protection units with additional funding to provide emergency support, education for sustainable development, youth entrepreneurship and innovation, digital literacy for all, climate-resilient education infrastructure and empowering women and girls."

“A shortage of skilled healthcare professionals necessitates budgetary incentives for top medical institutions and research initiatives. This will not only bridge the gap but also encourage innovation and excellence in healthcare. Making health insurance premiums tax-deductible will incentivise individual and family coverage, broadening access to private healthcare services. Expanding government-funded health insurance schemes like Ayushman Bharat to cover a larger population segment will fortify healthcare equity and utilization. Allocating resources for research and development in cutting-edge medical technologies is imperative, creating an environment conducive to domestic innovation and adoption,” he added.

Hospitality Sector

Expectations: Support to startups, growing a collaborative ecosystem

"With demand all-time high in hospitality, we are expecting a transformative year ahead. The upcoming budget holds the key to unlocking innovation and progress. As pioneers in these industries, we approach the budget with optimism, anticipating policies that encourage investment in cutting-edge technologies to enhance guest experiences in our sector and elevate healthcare services. We seek a budget that fosters a collaborative ecosystem, providing support for startups to flourish and contribute meaningfully to the growth of these sectors. A forward-looking budget will not only fuel innovation but also create a resilient foundation for the future of hospitality in our nation,” said Dawn Thomas, Co-founder, VRO Hospitality.

“In anticipation of the upcoming Union Budget 2024, the hospitality sector in India stands at a crucial juncture, showcasing significant growth prospects. According to a recent report by the Hotel Association of India (HAI), the sector is poised to contribute a substantial $1,504 billion to the country's GDP by 2047, marking a noteworthy increase from $65 billion in 2022. To ensure the continued development of the hospitality industry, several key expectations deserve attention. These include allocating funds for essential infrastructure development, revisiting the current tax structure to stimulate demand, increasing budgetary support for tourism promotion, enhancing digital infrastructure, and encouraging sustainability initiatives. We also anticipate that in the upcoming budget earmark resources for skill development and establishing robust training infrastructure, the government can empower the workforce, stimulate job creation, and fortify the foundation of a skilled talent pool within the hospitality sector. This strategic focus on human capital development will not only support the industry's expansion but also positively impact India's economic landscape by fostering innovation, excellence, and long-term sustainability,” said Mr. Davinder Juj, General Manager, Eros Hotel, New Delhi.

Education Sector

Expectations: Provision for learning courses, measures to address educational gaps

"We are looking forward to important schemes being introduced in the education sector this year. More students are now keen on being a part of professional and skill development courses. From becoming an influencer to being a social educator, students are now looking at different career options. This being the current situation, there is likely to be a high demand for professional courses. There should be a provision in the budget for such courses," said Srishti Dixit, Assistant Professor.

“The education sector witnessed a significant boost in the last budget, marked by the highest-ever allocation. We are optimistic that this year will bring additional momentum to the sector, introducing a range of measures to address educational gaps, foster increased employment, and promote overall economic growth. Anticipation surrounds Union Budget 2024, seen as a catalyst propelling India's education sector to global leadership. Positioned to strategically respond to transformative trends, the budget has the potential to shape a future-ready education system aligned with 21st-century demands. We hope it will generate opportunities, meet the aspirations of the youth, and drive growth and job creation. We firmly believe that the government is committed to building on the reforms initiated in alignment with the National Education Policy 2020, leading to better learning outcomes,” said Aditi Srivastava, President, Pearl Academy.

Beauty Sector

Expectations: Investment in R&D and investment in the well-being and development of children

Mr Sanjeev Ingti, Director and Co-founder, Eliea Wellness said, "The Union Budget of 2024 presents a pivotal opportunity for India to steer its economic trajectory towards innovation and sustainable development by placing a strategic emphasis on Research and Development (R&D). A robust investment in R&D is not just an expenditure but a forward-looking investment that can catapult India into a knowledge-driven economy.

One of the pressing issues that the budget should address is the geographical concentration of R&D activities. Currently, the lack of R&D infrastructure in remote areas is impeding the growth of startups. By allocating funds for establishing research centers and incubation hubs in such areas, the government can unlock the latent potential of innovators who might otherwise be excluded due to geographical constraints. This decentralisation of R&D facilities can stimulate local economies, foster entrepreneurship, and bridge the urban-rural innovation divide.”

Human Resource Sector

Expectations: Policies promoting diversity and inclusion in the workplace, strategies to encourage innovation in HR practices

“The HR sector's pre-budget expectations from the Government for 2024 revolve around policies that reduce compliance complexity, foster talent development, and support startups through more inclusive and flexible fiscal incentives. These changes are crucial for creating a more dynamic and responsive HR landscape in India's rapidly evolving economic environment. Additionally, it is also expected of the governing body to take proactive measures to encourage women to re-enter or remain in the workforce. Introducing tax incentives for employee training programs to promote skill development and upskilling and taking initiatives supporting employee wellness and mental health are two other areas that bear consideration. The industry also looks forward to policies promoting diversity and inclusion in the workplace and strategies to encourage innovation in HR practices. The HR industry also anticipates budgetary support for strategic talent development initiatives, including Executive Coaching, to groom high-potential employees and cultivate leadership skills within the organization. Addressing these expectations is crucial for fostering a conducive and progressive work environment, contributing to overall economic growth”, said, Vandana S Ahuja, Organisational HR Adviser & Executive Coach (ICF), Executive Director, Metamorph Dynamics Consulting.

Technology Sector

Expectations: Increase in global renewable energy capacity

"Aligning the budget with technology-driven initiatives can accelerate progress toward net-zero targets. Investing in research and development of innovative technologies, such as advanced energy storage solutions and grid optimization systems, will be instrumental in achieving these ambitious goals. The government's commitment to tripling global renewable energy capacity by 2030 should be underpinned by robust technology-driven strategies that enhance the efficiency, scalability, and sustainability of renewable energy sources," said Mr Shashank Donthi, CEO, Hynetic Electronics.

With that, we wrap up the perspectives of experts from various sectors. What are your expectations from the budget this year? Share your thoughts with us on our social media handles. For more from 2024's Interim Budget, stay tuned to HerZindagi.com