Budget 2024: India Inc. expects the government to focus on digital and physical infrastructure in the upcoming budget

India Inc. expects the upcoming budget to focus on the digital economy, research and development and push in the logistics sector to lead the country towards a $7 trillion economy goal.

Union Finance Minister Nirmala Sitharaman, in the first full budget of PM Narendra Modi-led NDA government’s third term should focus on digital as well as physical infrastructure to drive growth and innovation feels the industries.

“To achieve a $130 billion industry by 2030, the budget should prioritise research and development, following the example of last year’s Promotion of Research & Innovation Program (PRIP) Scheme,” said Srivardhan Khemka, Director of Sanjivani Paranteral Ltd.


“Considering the pharmaceutical sector’s reliance on exports, we expect credit schemes and policies to support international trade. Simplifying access to international markets will strengthen India's role in the global pharmaceutical industry,” adds Khemka.

To boost industrial activities, industries are also expecting a push for physical infrastructure, in terms of creating multiple logistic hubs.

“It is essential to implement policies and develop infrastructure that promote the growth of the aircraft leasing sector in India, addressing fleet management and expansion,” said Mahesh Fogla, Executive Director of Patel Integrated Logistics. “The budget should prioritize investment in constructing new airports and leveraging tier II airports to foster regional aviation development,” he adds.

Also, apart from physical infrastructure, there is a greater expectation for the push for digital infrastructure, especially to help the micro, small and medium enterprises (MSMEs) get the required funding for their operation and expansions.

“Most of MSMEs aren’t traditionally credit-ready, and banks lack the infrastructure to reach them. Therefore, stronger digital methods of credit assessment can bridge the credit gap. This ensures MSMEs are credit-ready, thereby making risk assessment easier for financial institutions,” said Sundeep Mohindru, Promoter & Director, M1xchange.

Echoing Mohindru, Raj P Narayanam, Founder of Zaggle Prepaid Ocean Services said digital banks in India will play a crucial role in bridging the gap between traditional banks and fin-techs.