What Industries Are Expecting from Union Budget 2022 -23

The date of Union Budget 2022-23 is yet to be announced, but as per the previous practises we are assuming it will be announced on 1st February 2022. The economy of the country has been adversely affected because of Covid 19 and now Omicron. Industries are having a huge expectation from the government for some promising changes.

Let's throw some light on what are the expectations of different industry players from the upcoming budget.
 

Health & Wellness sector:

Vijender Reddy Muthyala, Co-Founder and CEO DrinkPrime :

The Government through programs such as Jal Jeevan Mission-Har Ghar Jal has been focusing on the laudable initiative of giving people access to potable water. While we have made great strides in building out access especially in rural areas, accessibility to drinking water remains a challenge. The government needs to provide incentives to inspire startups to tackle this issue. Only through a cohesive public and private partnership will we be able to solve this basic human right. One area the Government should investigate is the GST and other taxes levied on providers of drinking water. Water is an essential basic human necessity and should be taxed accordingly. DrinkPrime would like to work with the government to make drinking water more accessible and affordable to all Indians.

Darpan Saini, CEO, Phyt.health :

Medical expenses have increased over the past two years with Covid taking center stage. Many have lost jobs or have taken pay cuts, resulting in financial stress on families. To ease these problems, the government needs to make digital healthcare affordable.

A special focus on making health insurance affordable by reducing GST on premiums from 18% to 5% is a viable option. The government should make health insurance applicable for telehealth services such as doctor consultations or online physiotherapy to help patients recover from the comfort of their home. This is crucial for patients who can't visit a doctor due to Covid restrictions. Moreover, the FM could also look to increase the limit of deduction under Section 80D from Rs. 50k to 1 Lakh - This could help the common man combat the rising healthcare costs.

Education sector:

Ashwini Jain,CEO & Cofounder, ForeignAdmits :

With the idea of creating a huge impact of “Make in India”, it is important to understand the role of start-ups too. The start-ups and their new ideas to contribute to the economy and localization need proper funding and budget too. Many of the economy-related issues would be solved with better start-up conditions in the country. Not only would we be able to boost localization at its best, we would also be able to create jobs, more career opportunities, and customize the production according to the needs of our citizens. There are some important factors that the government needs to keep in mind during the upcoming fiscal year budget discussion. Some of them are reducing the GST, giving more funding to the start-ups, and making the public data accessible for us. Start-ups should also get equity and interest-free loans in the growth stage so that they can help in contributing to the country’s economy.

FinTech sector:

Mandar Marathe, CEO, Koppr: 

For the common man of India, medical expenses have increased over the past two years. Many have lost jobs or have taken pay cuts, resulting in additional financial stress. To alleviate these concerns, the government needs to make healthcare affordable & accessible.A special focus on making health insurance affordable by reducing GST on premiums from 18% to 5% is a viable option. The government could also look to increase the limit of deduction under Section 80D from Rs. 50k to 1 Lakh.
A significant allocation of the budget should be made towards bolstering the healthcare infrastructure of the nation. From the current 1.8% of GDP spends, the FM minister should further raise it to 3%.Apart from healthcare, the Modi government could do wonders to bring in more domestic equity investments by reducing the rate of capital gains tax from 10% to 5% or do away with LTCG tax altogether.

Mr Bhavik Vasa Cofounder, GetVantage:

Small businesses and now startups are the key pillars of the Indian growth story. Democratising access to capital and increasing liquidity thru priority sector lending for SMEs & startups is key to this budget and for the consumption economy to bounce back thru these turbulent times.

Human Resource sector:

Vicky Jain, Founder, uknowva :

The pandemic has disrupted every sector and one thing that everyone wants from the UnionBudget 2022-23 is to bring the economy back on track.  While every sector has faced its own ups and downs over the past year, there is one sector that has witnessed immense growth and potential i.e. technology and automation. The technology and automation sector has become a significant contributor to the country's mission of digital empowerment. Given the role of the technology sector in the growth of Digital India, it is expected that the government may implement effective and favorable policies, in creating the digital infrastructure and the ecosystem to support innovation.
 

Similarly, incentivizing research and development of next-generation technologies like AI, ML, robotics, etc. could help leverage India’s cost-effective science and engineering talent to develop strategic capabilities in scientific and industrial research. Special provisions and schemes need to be introduced to increase Digital Education and relevant Digitization to foster employment generation as well as re-employment. Another important area to focus on is the upskilling and reskilling of the existing workforce. There has been a lot of change in the way we operate and do business post COVID. It’s quite clear that the skill gap from education to corporate remains quite huge. This gap is now increasing with the AI-driven work culture setting in. Youth unemployment is close to 20 percent and that’s quite alarming. Adequate allocation for upskilling and reskilling is the need of the hour.

FMCG Sector:

Mr Griffith David – Founder and MD, Habanero Foods:

In the past year, the Indian government has taken several initiatives to revive the economy. I applaud its recognition of and commitment to the MSME sector. MSMEs provide the foundation for an Atmanirbhar Bharat and are the heart of the Indian economy. Along with ensuring that MSMEs receive adequate financial support, we also expect the government to implement reforms to promote domestic manufacturing.

The Indian FMCG sector has tremendous potential, especially in the packaged foods segment. It is the fourth largest industry in India today. Today, the government provides subsidies for capital investments in food processing units by MSME. Although this is a much-required support provided to the industry, the reality is that the process is laden with red tape, and thus, it is difficult for MSMEs to actually gain access to and benefit from these subsidies. Ideally, this subsidy should be linked directly to the bank where the MSME avails of the loan. Subsidies could be added automatically during bank loan disbursements, simplifying the whole process and allowing MSMEs to grow.

Additionally, testing the final product for safety and ensuring it meets all guidelines is an expensive endeavor for MSMEs in the packaged foods sector. The price increases are the result of imported equipment used by labs. The government and FSSAI should set up test labs and subsidize these fees, and allow industry groups like CFTRI and others to set up these facilities in every state so that MSMEs don't have to pay so much.

As health, wellness and convenience continue to be main trends, FMCG companies are strengthening their core brands as consumers gravitate towards trusted brands that offer quality, purity, and hygiene, continuing a trend that started during the pandemic last year. Demand and consumption are on the rise across both rural and urban markets, so we are looking forward to 2022 with optimism.

Beverage Sector:

Ms Varna Bhat - Founder & CEO of Blisswater Industries Private Limited (parent company of Rahasya Vodka):

It is crucial that this Budget ensures stability and supports growth as India Inc. seeks to recover from an overall economic slump. It is likely that the government will provide incentives to each sector, and I sincerely hope that it implements progressive, industry-friendly policies to help the Indian liquor industry prosper and grow.

India has witnessed the launch of over 50 homegrown liquor labels in the twelve months, which is testament to the entrepreneurial spirit of our nation. Although one of the largest contributors to state revenues, the liquor industry is a soft target for taxation due to its discretionary nature, and for most parts has always been subject to restrictions.  I urge the government to support the hospitality, tourism, and liquor industries - all of which contribute to India's global significance.   Although the government benefits from excise revenues, especially as it is heavily state controlled, considering the impact the pandemic has had on the restaurant sector and the tourism industry, I sincerely hope the budget doesn't introduce any further obstacles to revenue generation.

When it comes to new age brands and craft products, higher raw material and input costs are damaging to domestically manufactured craft spirits. Reforms such as reductions in excise duties, inflationary pressure caps, etc. are still on the wishlist to ensure a level playing field vis-à-vis large established brands.

BPO IT Sector:
Mr Animesh Jain, Chief Delivery Officer - India & Americas, [24]7.ai :

As India Inc. looks to bounce back from an overall economic slump, it is crucial that this Budget ensures stability and gives impetus to growth. The government will likely incentivize each sector, but as the global epicenter for ITeS, the performance of the Indian ITes industry will be vital. Businesses are continuously evolving to adapt and remain relevant in response to the pandemic, and this metamorphosis has completely altered the business environment.

[24]7.ai is investing in cloud tools and technologies that allow employees to work from anywhere, creating a hub-and-spoke model for the ITeS sector.
Employees can effectively function remotely, opening the door for us to hire from locations previously unexplored due to our geographical constraints. Hybrid operating models are here to stay, and the current a dynamic business environment calls for equipping employees to conduct business from their homes. Besides maintaining the office infrastructure, the employer must now bear additional expenses for setting up home offices - such as ergonomic furniture, internet connection, etc. I urge the government to provide an exemption on any additional costs in setting up employee home offices.