The Union Ministry of Finance. File
| Photo Credit: SHIV KUMAR PUSHPAKAR

Ahead of the presentation of the Union Budget, the Finance Ministry has announced changes that will provide greater flexibility to scientific Ministries to import and buy equipment necessary for research.

These changes, in the General Finance Rules (GFR), follow demands made for years by scientists, who have often said that restrictive rules on the purchase of research equipment had slackened the pace of research productivity.

The GFR, which are prescribed by the Finance Ministry, define the conditions under which public procurement is conducted, and they are periodically updated. The new exemptions are specific to the “scientific Ministries”, and include the Department of Science and Technology, Department of Biotechnology, Department of Scientific and Industrial Research, Department of Atomic Energy, Department of Space, Ministry of Earth Sciences, Defence Research and Development Organisation, Indian Council of Agricultural Research, Department of Health Research including Indian Council of Medical Research, and institutions conducting post-graduate research affiliated to Ministries.

The first of the changes are in raising the threshold price of goods that may be bought without going through a tendering process. Until May 20, when the relaxations came into effect, the threshold was ₹25,000. It has now been raised to ₹1,00,000.

The second is that for goods priced between ₹25,000 to ₹250,000, a purchase committee consisting of three members nominated by the Head of Department must survey the market to establish that it offers the most value for money and quality. That limit has now been raised from ₹100,000 to ₹10,00,000. However, and this is the catch most scientists are not quite happy with, these relaxations are only applicable once it is established that the required goods are unavailable on the Government e-Marketplace (GeM). The GeM is a government mandated website, such as the Amazon online marketplace, which lists sellers of India-made or assembled goods, and is administered by the Ministry of Micro, Small and Medium Enterprises. A general grouse against the use of GeM, particularly by scientists and researchers, is that they often need extremely customised equipment which often has to be imported, and may otherwise compromise the quality of research experiments.

“The increased upper limits are certainly welcome but the overall processes remain unchanged. For example, we cannot avoid GeM. For scientific institutions, we need a completely different set of guidelines, and this has been communicated by various bodies, including the Principal Scientific Advisor’s Office to the Finance Ministry,” L.S. Shashidhara, Director, National Centre for Biological Sciences, Bengaluru, said.

A senior official who is part of the scientific bureaucracy in India said on condition of anonymity that of the six demands presented to the Finance Ministry, four had been met, and there was a fair chance they would be reconsidered in the future. “The Finance Ministry is open to suggestions but they have a more holistic view. GeM is brought in to prevent misuse,” the official said.

New Delhi:

The Indian Chamber of Commerce (ICC) has suggested the government to rationalise customs duties in various sectors including steel, solar battery, aluminum, and lithium cells in a bid to boost domestic manufacturing.

Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget for financial year 2024-25 on July 23.

ICC President Ameya Prabhu said protective measures are needed for the growth of domestic industry in sectors including steel, solar battery, aluminum, and lithium cells.

“There is a need for rationalization of customs duty in these specific sectors in a holistic manner. Huge potential is there to boost domestic manufacturing and make India a global hub for manufacturing,” Mr Prabhu said.

He added that levies on raw materials impact domestic players particularly the downstream firms.

He also asked for correction in inverted duty structure by cutting down duty on mixed petroleum gas from 5 per cent to 2.5 per cent.

“To boost domestic manufacturing, there is a need to increase duty on polymers – polyvinyl chloride, polyethylene terephthalate, polypropylene and polyesters to 10 per cent. This will help in reducing import dependency and will drive India towards self-sufficiency in the petrochemical manufacturing segment,” Mr Prabhu said.

Talking about the importance of the aluminium foil sector, the President said the domestic industry has been facing severe losses as there is anti-dumping duty on raw materials whereas the finished goods are not subject to any duties on imports from China.

“This dual effect has resulted in extensive net losses to the companies that have made significant investments into this industry,” Mr Prabhu noted.

On the taxation side, the chamber has suggested setting up a commission to review the Income Tax Act 1961 in its entirety and simplify the provisions.

“This is an old Act. Every year in the Budget, amendments are made which has made this Act complex to understand. These amendments have resulted in many anomalies which in turn have given rise to a large number of legal cases,” the chamber has said.

Prabhu further recommended the government not to impose tax on dividends.

He added that during his tenure so far the ICC has spread its wings further nationally and internationally and become a truly world-class chamber. “We have opened 25 chapters globally in countries including New Zealand, the US, Europe, Australia, Korea and Middle East nations,” he said.
 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Congress leader Jairam Ramesh. File
| Photo Credit: ANI

Continuing its attack on the economic policies of the Narendra Modi government ahead of the first budget of the NDA government on July 23, the Congress on Wednesday said that “India has been locked into a cycle of low investment since 2014” due to a combination of “erratic policy, rampant cronyism, and the ED/IT/CBI raid raj”. The party said the country needs a new liberalised approach to political economy.

Congress general secretary (communications) Jairam Ramesh said the single most important statistic that explains India’s inability to grow faster since 2014 is the “sluggish investment rate”.

“India has been locked into a cycle of low investment since 2014, due to a combination of erratic policy, rampant cronyism, and the ED/IT/CBI raid raj,” Mr. Ramesh said in a statement.

Low investment drags down the medium and long-term GDP growth rates, which in turn brings down wages and consumption growth, he said.

The biggest component of investment, Mr. Ramesh said, the private domestic investment, has been in doldrums since 2014. In comparison to the UPA years, when the investment was in the 25-30% range of the GDP, it has been reduced to 20-25% of the GDP range, he said.

“This is, however, only part of the story. Since at least 2016, multinational companies across the world have been looking to divest from China and invest in other developing countries. India, with a large and growing labour pool, was at the right place at the right time – but this generational opportunity to garner FDI and become a manufacturing and export-oriented economy has been squandered,” Mr. Ramesh said.

Instead of India, Bangladesh and Vietnam have capitalised and have walked away with the benefits, he said. “Sops like corporate tax cuts and PLIs can’t compensate for a freer society, polity, and economy – one that is free from demonetization-like masterstrokes, cronyism, and Raid Raj,” Mr. Ramesh said. Marginal policy tinkering will not work, he said.

Congress leader Jairam Ramesh. File
| Photo Credit: ANI

This year’s Union Budget will be judged by what it does to revive and rejuvenate India’s Micro, Small and Medium Enterprises (MSMEs), the Congress said on July 16.

In a statement, Congress general secretary Jairam Ramesh said that through a “combination of deliberate policy and wilful neglect”, the Narendra Modi-led government has systematically bludgeoned the MSME sector that accounts for 30% of India’s GDP, about 45% of its exports, and employs 12 crore people. Demonetisation, the “botched” implementation of GST, the COVID-19 lockdown, “rampant oligopolisation”, and cheap Chinese imports have all contributed to the near destruction of the sector, he said.

“Consequently, MSMEs are faced with high tax rates, severe credit crunch, high input prices, and widespread closures. Unsurprisingly, their contribution to GDP today is the lowest it has been in decades,” Mr. Ramesh said. 

GST 2.0 needed

The party’s wishlist of measures to revive the sector includes the extension of the non-performing assets (NPA) classification period for loans to MSMEs from 90 days to 180 days. The Congress called for GST 2.0 with a single, moderate rate, and relief for small taxpayers like MSMEs. The party also wants dedicated funds to create MSME export capacity, and enhanced funding for start-ups.

“The self-anointed non-biological Prime Minister and his government must revisit their economic agenda, shed their cronyism, and end their whimsical policymaking. This Budget will be judged by what it does to revive and rejuvenate India’s MSMEs,” Mr. Ramesh said.

Union Finance Minister Nirmala Sitharaman will present the budget next week.
| Photo Credit: PTI

Import holidays, GST exemption for components of launch vehicles, productivity-linked incentives (PLI) and government stepping in as a customer are some of the expectations of the private space sector from Finance Minister Nirmala Sitharaman as she presents the Union Budget next week.

“More money for space-related acquisitions, tax holidays, import holidays, and PLI scheme for space,” Pixxel Space co-founder and CEO Awais Ahmed told PTI when asked about his wishlist for the budget.

Industry bodies Indian Space Association (ISpA) and Satcom Industry Association (SIA-India) have sought greater government expenditure on the space sector in the form of an anchor customer for the nascent private sector.

“ISpA calls for a commitment from the government to procure and adopt space technology solutions across various governance areas such as agriculture, disaster management, infrastructure planning and development monitoring, urban development, and remote area connectivity,” ISpA director general Lt Gen Anil . Bhatt (retd) said.

Mr. Bhatt also sought extension of GST waiver on satellite launch services to other critical components of satellites, ground systems, and launch vehicles.

He also wanted the finance minister to consider tax exemptions/tax holiday and custom-duty exemptions for space sector firms and reduction of tax rate on interest on foreign borrowings.

“The prompt implementation of the Space Activities Act is crucial for addressing legal and standards related issues, providing a clear regulatory framework for the industry,” Mr. Bhatt said.

“The Budget should prioritize measures to propel the commercial space sector, with a focus on nurturing deeptech space startups,” SIA-India president Subba Rao Pavuluri told PTI.

Arpan Sahoo, co-founder and chief operating officer of space startup KaleidEO, said while current tax and customs exemptions benefit systems and sub-systems, there is a need to extend these to component levels.

“This is crucial for startups operating with limited resources, allowing them time to scale over the next decade,” Mr. Sahoo said.

“As a sunrise industry, more demand generation from the government is essential to drive non-linear growth,” he said.

SIA-India director general Anil Prakash made a strong pitch for a substantial increase in the space budget to align with space-faring nations, alongside dedicated funds for local manufacturing and capability building.

Mr. Prakash urged the government to recognize the potential of market segments such as rural broadband, enterprise connectivity, maritime, aviation, and disaster management.

“A portion of the unutilized Universal Service Obligation Fund could be allocated for satellite services to improve connectivity and bridge the digital divide in rural/remote areas of the country,” he said.

ISpA also said a Digital Public Infrastructure and Digital Public Goods approach for Earth observation based geospatial analytics and insights can unlock value and innovation to several stakeholders well beyond the space sector.

As of the end of March 2024, NBFCs had a CRAR of 26.6%, a GNPA ratio of 4.0% and a return on assets (RoA) of 3.3%. (Representational image only)

Ahead of the upcoming Union Budget scheduled to be presented on July 23, the Non-Banking Financial Company (NBFC) sector is expecting enhanced financial inclusion and reinforcing digitalisation efforts to sustain the sector’s growth.

Finance Industry Development Council (FIDC), which represents the industry, has suggested establishing a special refinancing body, just as the government has created National Housing Bank (NHB) for housing finance companies.

On the other hand, the sector this year has seen stringent regulatory action from the Reserve Bank of India (RBI). Additionally, speaking at an event in May this year, RBI Deputy governor J. Swaminathan cautioned the NBFCs not to be overly reliant on algo-based credit models. However, the apex bank, in its 29th Financial Stability Report (FSR) said that the NBFCs are well capitalised, giving an edge to the financial sector in the country.

As of the end of March 2024, NBFCs had a CRAR of 26.6%, a GNPA ratio of 4.0% and a return on assets (RoA) of 3.3%.

“The growth of the Indian NBFC industry is significantly influenced by robust financial inclusion, consumer demand and improving trade balances. The upcoming Union Budget should emphasise enhancing financial inclusion across the country, implementing policy reforms, and reinforcing digitalisation efforts to sustain the sector’s growth.

Financial and digital inclusion will enhance credit access by increasing convenience and reducing turnaround times,” said Rakesh Kaul, CEO, Clix Capital.

“The government must consider incentivising and promoting such measures so that NBFCs can carefully take advantage of global integration, ensuring sustainable growth and financial inclusion across India’s diverse economic landscape,” said Jitendra Tanwar, Managing Director & CEO of Namdev Finvest Private Limited.

He further added that the government must consider incentivising and promoting such measures so that NBFCs can carefully take advantage of global integration, ensuring sustainable growth and financial inclusion across India’s diverse economic landscape.

Expressing his confidence in the Budget this year, Krishan Gopal, CFO, Aye Finance, said, “I believe this Budget will lay the groundwork for India’s vision of development by 2047. We expect the Government to recognise the efforts of NBFC lenders that are transforming micro-enterprise lending in India by providing customised credit lines, announcing schemes and subsidies and even considering classifying them as Priority Sector Lenders.”

“Despite strong competition from banks, non-banking financial companies (NBFCs) have shown remarkable resilience in retaining a significant market share. To drive further growth, we seek policies that promote responsible credit utilisation, enhance access to credit for underserved communities, and foster financial literacy among customers,” said Mathew Muthoottu, MD Muthoottu Mini Financiers Limited.

”NBFCs are expecting the Budget to carry provisions that spur consumption, such as via tax relief etc.; implement initiatives that enable growth of NBFCs serving priority sector clients; and undertake widespread campaigns aimed at inculcating good credit behaviour amongst the country’s growing borrower base,” opined Neha Juneja, Co-founder and CEO, IndiaP2P, on her Budget expectations.

Anticipating the allocation of additional funds for the sector, Pavitra Walvekar, the CEO of Kudos Finance, which is based out of Pune, said, “Key initiatives should include the allocation of additional funds to improve liquidity for NBFCs and the introduction of regulatory reforms to streamline operations and enhance transparency. These steps will bolster credit availability, particularly for underserved segments like MSMEs, and promote financial stability in the long run.”

Image for representation purpose only.

Doubling standard deduction to ₹1 lakh, increasing tax break on interest paid on housing loan and rationalisation of capital gains tax regime are some of the expectations that consultancy firm KPMG has from the Budget 2024-25 to be unveiled on July 23 in Parliament.

There has been a significant rise in medical expenses, fuel costs and overall inflation. Keeping in mind the increase in personal expenditure it is popularly expected to enhance the standard deduction to ₹1 lakh from the existing limit of ₹50,000, KPMG said in a note.

With the objective to have more net disposable income which can either be spent on consumer goods or channelised as savings, it is a popular expectation that the basic tax exemption limit under the default new tax regime be increased to ₹5 lakh from ₹3 lakh, it said.

With regard to housing loans, it said there is mounting pressure on the real estate sector with recent hikes in interest rates and regulatory reforms.

To alleviate these challenges and foster home ownership, it is suggested that the government may reconsider allowing deductions for interest on self-occupied housing loans even under the new default tax regime or enhancing the deduction in the old tax regime to at least ₹3 lakh, it said.

Irrespective of the tax regime, it said, the capital gains tax structure in India today is multilayered and has differential rates for different types of assets.

Even the period of holding for a capital asset to qualify as long-term (vis-a-vis short term) varies significantly e.g., for listed equity shares it is 12 months whereas for real estate it is 24 months and for debt instruments, it is 36 months, it said.

“While historically there may have been reasons for creating a complex structure in line with this government’s stated objective of simplifying the tax system it may be worthwhile to provide a more uniform capital gains tax structure [both in terms of period of holding and rate of tax],” it said.

From the customs standpoint, it expects continued focus of the government on alignment of tariff rate changes with the industrial policy objective of encouraging deeper value addition in India.

Coordination of change in Customs tariff rates and roll out of technical barrier to trade is also expected to continue, it said.

The production of solar panels with full value addition in India over the next five years is an achievable goal.
| Photo Credit: REUTERS

The Finance Minister’s Budget speeches have been giving increasing emphasis to green growth. This has followed Prime Minister Narendra Modi’s announcement at COP26 that India would have 500GW of fossil fuel-free capacity by 2030 and it would become net zero by 2070. Affirmation of these commitments in the Budget speech would send the right signals. For reaching net zero, the sooner the use of fossil fuels peak, plateau and then begins to decline, the lower would be the ultimate cost of getting to net zero for individual firms as well as the economy.

Major investment decisions by all investors need to appraise their options through this prism. This would prevent sub-optimal, lumpy, capital investments in the fossil-fuel economy.

Renewable Energy (RE) capacities are being created by private investment with declining costs in a competitive industry structure. RE combined with storage for round-the-clock supply is now cheaper than new thermal power. Scaling up and achieving 500 GW of fossil fuel-free capacity by 2030 requires a huge increase in the capacities for which RE bids need to be invited.

This intention with numbers should be announced. RE now requires large-scale storage as its generation is intermittent and inflexible whereas the demand to be met is variable. An ambitious plan for creating storage by the invitation of bids should also be in the Budget Speech. This would get potential investors to prepare for the large storage market that would be created. Both river and off-river hydro pump storage are attractive options. The technology of concentrated solar thermal energy being stored in molten salt to run a conventional thermal turbine has also become mature and cost effective. These storage projects have a large capital cost, a very long life and nominal running costs. The bid prices would be considerably lower if long-term rupee debt at fixed rates is made available to potential developers. The Finance Minister could announce this. Instruments such as government green bonds are already in place. Conceptually, government needs to assume some contingent liability for long-term fixed interest rate lending. India could become a global leader in large scale grid storage.

The ambition to become self-reliant should be a major theme of the Budget. The production of solar panels with full value addition in India over the next five years is an achievable goal. Our market size is large enough to support globally cost-competitive manufacturing with new, state-of-art production plants. The PLI (Production Linked Incentive) policy instrument should be crafted to get investors to put up plants with full value addition in India. One simple way of achieving this is for government to invite bids for procurement of solar panels with full value addition in India and for the supplies to be for five years from a future date giving reasonable time for a new plant to be built.

With assured offtake at a price which gives returns, the investment would become risk free, resulting in a good investor response. This government procurement would not be in contravention of our WTO commitments. Repeated bids should be used to create a competitive industry structure as has been done for development of grid scale solar projects and to get lower prices through competition. There should, if required, be a willingness to initially pay somewhat higher prices compared with the price of panels imported from China. The use of these government-procured panels can be made mandatory for the roof-top solar panel programme for one crore households announced early this year, for the government subsidised Kusum programme for using solar panels for pumping groundwater for irrigation, by the Railways, in government buildings, defence establishments and campuses of government-financed institutions. The Budget could also announce the goal of becoming self-reliant in the production of batteries for electric vehicles and the electronics that go into them over the next five years by extending and fine-tuning the PLI and FAME (Faster Adoption and Manufacturing of Electric Vehicles) programmes.

National Hydrogen Mission

There is an ambitious well-funded National Hydrogen Mission. This is positioning us well for the use of green hydrogen produced at a globally competitive cost for downstream carbon free production. This gives us an opportunity to leapfrog and become a competitive green manufacturing hub for the new, green global economy that would replace the existing fossil fuel-based economy. We need to outgrow our traditional mindset and welcome, rather than oppose as a new non-tariff barrier, the new European tax on import of goods depending on the carbon content of the entire value chain going into its production, the CBAM (Carbon Border Adjustment Mechanism). Indian industry has been very progressive in trying to reduce its carbon footprint and aiming at becoming net zero. Many have been going in for captive solar plants and the use of electric vehicles. But firms, especially MSMEs, exporting to Europe would gain by government support in reducing their carbon footprint. The Budget speech should announce government’s intention to do so. For this government would have to create expert groups for each industry segment which would evolve the pathway for induction of new technologies in the whole value chain. The easy part would be mandating real time supply of carbon free electricity, albeit at a higher price, by all electricity supply companies for industrial customers who demand such electricity. A small firm could buy carbon-free electricity for production and electric vehicle charging stations could use such electricity making the logistics of the supply-chain carbon-free. For capital investments for using a low/zero carbon production process a dedicated financing facility may be created. Where necessary government could provide credit guarantees and/or an interest subsidy depending on the sector expert group’s assessments.

We could then hope for a surge in the export of low-carbon goods. We may achieve the success in the export of manufactured goods that has been eluding us so far. Our journey to net zero would proceed faster.

(The writer is Distinguished Fellow, TERI)

Congress general secretary Jairam Ramesh. File
| Photo Credit: PTI

The Congress on July 12 said the forthcoming Budget must address fundamental questions such as why private investment is “very sluggish” and private consumption is not picking up as the party dismissed claims that economic growth is accelerating sharply and large numbers of jobs being created.

Union Finance Minister Nirmala Sitharaman is scheduled to present the Budget for 2024-25 in the Lok Sabha on July 23.

Congress general secretary, in-charge communications, Jairam Ramesh said, “The non-biological PM’s cheerleaders and drumbeaters claim that economic growth is accelerating sharply and that jobs are being created in large numbers. But if this was the case — and it is not — Why is private investment, a key engine of economic growth, still so very sluggish recording a 20-year low during April-June 2024? Why is private consumption, another key engine of economic growth, not picking up except at the high end,” Mr. Ramesh asked.

“Why have household savings plummeted to record lows and household debt shot up to record highs? Why have rural wages continued to fall and why is the wage share of national income declining?” he said, adding, why is manufacturing as a share of GDP at a record low and still decreasing? Why has the informal sector lost 17 lakh jobs in the last seven years? Why did unemployment reach a 45-year peak, with unemployment for young graduates at 42%?” the Congress general secretary said.

“These are fundamental questions that the forthcoming Budget will have to address while the Finance Minister sings praises of the non-biological PM,” Mr. Ramesh said.

On Thursday, the BJP claimed that around 12.5 crore jobs were created in the last 10 years of the Modi government and cited the latest Reserve Bank of India report to assert the creation of “five crore jobs in 2023-24 alone”.

Several experts have urged the government to provide tax relief to the common man to boost consumption and take steps to check inflation and accelerate economic growth.

The economy has recorded a growth rate of 8.2% in 2023-24. Earlier in February, Ms. Sitharaman presented an Interim Budget for 2024-25 in view of the Lok Sabha elections.

New Delhi:

More tax benefits for health insurance under the new tax regime, relaxation in payment norms for MSMEs and incentives for the agri-tech sector are among the stakeholders’ expectations from the first budget of the Modi 3.0 government.

Finance Minister Nirmala Sitharaman is scheduled to present the full Budget for fiscal 2024-25 on July 23, which will be the first major policy document of the new government.

Anup Rau, Managing Director and Chief Executive Officer of Future Generali India Insurance Company said the deduction limit on health insurance premiums under Section 80D of the Income Tax Act has remained unchanged for the past nine years even though there has been a significant rise in healthcare costs across the country.

“It would be best if the limit for medical insurance is linked to inflation and gets revised automatically every year or once in a couple of years. Also, the benefits need to be extended to the New Tax regime since increasing health insurance penetration is critical. So, we hope the upcoming Budget to announce some hike in the deduction limit on health insurance premiums,” Rau said.

Tapan Singhel, MD & CEO of Bajaj Allianz General Insurance, said reforms like offering health insurance to employees at negotiated rates, reducing GST on health insurance premiums, and offering tax benefits like increased Section 80D exemption limits would make health insurance more affordable and accessible, especially for the ‘missing middle’ segment of our population.

“Additionally, for senior citizens, removing the limit on deductions for health insurance premiums would significantly ease their financial burden,” Singhel said.

The finance minister is likely to lay out the government’s economic agenda in the budget.

On expectations from Nirmala Sitharaman’s budget, D S Negi, CEO of Rajiv Gandhi Cancer Institute & Research Centre (RGCIRC), said the focus on reforming cancer care in India is crucial and it is important to prioritise funding for advanced treatments like immunotherapy and personalised medicine, ensuring more patients can access these cutting-edge therapies.

“Extending Ayushman Bharat to those aged above 70 years will be highly beneficial for senior citizens. However, the current coverage limit of Rs 5 lakh may not be sufficient for critical illnesses such as cancer, where treatment costs can range from Rs 15-20 lakh.

“Therefore, it is essential to consider increasing the coverage limit for critical illnesses like cancer to ensure adequate financial support for cancer patients,” Negi added.

The budget is likely to include steps to fast-rack reforms to make India a USD 5-trillion economy in the near future and turn the country into a ‘Viksit Bharat’ by 2047.

Ahead of the budget, Chairman of the Medical Technology Association of India (MTaI) Pavan Choudary said that customs duties and taxes levied on medical devices in India are one of the highest in the world which directly impacts patient affordability.

“On the other hand, countries like Singapore, Hong Kong, Italy, and Norway impose no such duties. Australia and Japan levy only a minimal 0.5 per cent duty, while in the United States, it stands at 2 per cent, and in China at 3 per cent.

“This stark contrast creates risk for illegal imports of medical devices in India that are not backed by legal and service guarantees. Furthermore, such trade would undercut the Indian government’s tariff revenue,” he said.

Vivek Jalan, Partner at Tax Connect Advisory Services LLP, said as per recommendations of Micro, Small & Medium Enterprises (MSMEs), Section 43B(h) in the Income Tax Act was introduced from AY 24-25. However, the alignment of the disallowance for payables under sections 43B(h) of the Act has been made with the MSME Act, which requires that payment has to be made to an SME within a maximum of 45 days.

“This is difficult in the present-day trade where a 60-90 days credit period is the norm.

“In this budget, it is expected that this provision will be relaxed/amended aligning the same with the CGST Act w.r.t. disallowance when payment to SMEs is not made within 180 days. Hence, in case a taxpayer does not pay an SME within 180 days, then the expense may be added back to his income,” he said.

In anticipation of the budget, Saurabh Rai, CEO of Arahas, has expressed high expectations for substantial investments in sustainability and geospatial technology.

“We anticipate significant allocations towards renewable energy projects and incentives for companies embracing green technologies,” he said.

Additionally, Rai said that boosting agri-tech innovations, providing tax incentives for tech companies and investing in human capital development is imperative for driving sustainable growth.

Sanjay Kumar, Founder and CEO of Geospatial World, said that to fully leverage the power of digital twin technology, it is crucial to allocate dedicated funds to it in the Union Budget.

“This allocation will facilitate the widespread adoption of digital twins, driving efficiency gains, cost savings, and improved decision-making in infrastructure projects. By investing in this technology, India can achieve significant long-term benefits, such as enhanced asset management, reduced downtime, and increased resilience to environmental challenges,” Kumar said.

Ms Sitharaman was given charge of the finance portfolio in the second stint of the Modi government after the 2019 general elections, becoming the first full-time woman finance minister in independent India.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)