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With strong tax collections and a bumper dividend from the RBI, YES Bank and experts from the banking and finance sector have expressed their enthusiasm for the proposed support for manufacturing, MSMEs, and digital financial inclusion, underscoring the budget’s potential to enhance economic stability and foster long-term growth.
Read the expectations from the banking, and finance sector in detail:
Prashant Kumar, MD & CEO, YES BANK
The Union Budget 2024 is expected to play a crucial role in shaping India’s economic future. This is especially true as the tax revenue collections have remained robust and the government is also armed with a bumper dividend from the RBI. The government is expected to remain committed to the reform process and be focused on eight key areas: sustainable growth, financial sector, infrastructure and investment, women, youth & farmers, last-mile connectivity, inclusive development, and economic expansion – all essential towards achieving ‘Viksit Bharat’ by 2047.
The government has exhibited its commitment towards fiscal discipline, much necessary to signal economic stability and build investor confidence. However, the government is also expected to balance this objective together with the need for economic growth and provide adequate outlays for key social sector programs, in an effort towards inclusive growth and ensure that the benefits of economic development reach all segments of society. In this context, the government is likely to lay stress on ensuring skill development, focus on enhancing the strength of the manufacturing sector via sharpening the PLI scheme, and provide adequate support for small businesses to grow.
At YES BANK, we are prepared to support the government’s push for enhancing digital infrastructure and promoting financial inclusion. This aligns with our commitment to bringing advanced banking services to underserved regions and supporting initiatives in green mobility, affordable housing, healthcare, and education. These efforts will not only spur economic growth but also ensure holistic development.
We are particularly excited about growth in manufacturing and support for MSMEs, which are vital for job creation and economic dynamism. YES BANK stands ready to contribute to India’s journey towards becoming one of the world’s largest economies.
Rishabh Goel, Co-founder & CEO, Credgenics
As we look forward to the government’s upcoming budget announcement, our expectations are rooted in the need for sustaining retail credit growth, increasing the pace of adoption of digital financial services, and extending the policies that have been pivotal in driving the banking sector’s growth. We are optimistic that the Modi 3.0 government will introduce broad measures to further support credit growth, facilitate the speedy extension of financial services to the unbanked, and push further digital enablement of financial services. We anticipate policies that simplify the compliance framework to enable startups to focus more on innovation and sustainability. Additionally, we hope for incentives that encourage the widespread adoption of advanced technologies such as AI and machine learning, which can significantly improve efficiency and accuracy in debt management.
Moreover, strengthening the cybersecurity ecosystem is crucial to providing a secure environment for both lenders and borrowers. It will bolster consumer trust in digital financial services while ensuring the stability and security of digital transactions. We are optimistic that the forthcoming budget will prioritize the fintech sector’s growth, support technological advancements in financial services, and ensure a balanced regulatory environment. Such measures will not only benefit startups but also bolster the broader financial system’s resilience and adaptability.
Rayan Malhotra, Founder and CEO, NeoFinity
In anticipation of the 2024 budget, the financial region eagerly awaits reforms to solidify the boom and stability. India’s clean and concise capital gains tax regime is critical to strengthening capital markets. Simplifying tax systems and ensuring clarity will attract prominent traders and stimulate market interest.
In addition, finance is expected to raise awareness of the driving activities at IFSC GIFT City, making it a global financial hub. The potential impact of enhanced incentives and infrastructure development on attracting global organizations is significant, and this is expected to support financial services, making stakeholders feel excited and hopeful about the future of the financial sector.
The banking region is on a path to inspiration for modernization and performance ahead of the measures. Initiatives to promote virtual banking and reduce non-performing assets (NPAs) are essential for a healthier financial ecosystem. In addition, the sale of non-cash transactions is a problem. Authorities can embellish transparency and performance in economic transactions by incentivizing virtual banknotes and reducing reliance on coins.
Overall, the financial quarter envisages a budget that will help strengthen the capital market, modernize banking, and promote a cashless financial system. These measures will ensure sustained growth and competitiveness in the Indian monetary environment.