Anticipation Peaks as India Gears Up for Union Budget 2024, Last Stop Before Lok Sabha Elections 2024

The Union Finance Minister, Nirmala Sitharaman, is set to present the Annual Union Budget in the Parliament on February 1, just a day away. This crucial financial statement is not only significant for outlining the government's economic policies and priorities for the upcoming year but also holds special importance as it precedes the looming Lok Sabha elections.

As India stands on the cusp of the next general elections, the expectations surrounding the budget are soaring, with citizens and industries keenly observing for any announcements that might sway voters or attract investments.

Union Budget 2024: Agricultural Sector in the Spotlight

One of the key sectors under scrutiny is agriculture, the backbone of the Indian economy. With the last budget before the elections, farmers, agri-businesses, and related industries are eyeing potential policy changes and financial allocations that could shape the future of the sector.

Shielding Agriculture from Climate Volatility

Weather Risk Management Services Pvt Ltd (WRMS) has been making strides in climate and agriculture risk management since its inception in 2004. Incubated by IIT Kanpur and with investments from SIDBI, UPL, ILO, and the Ford Foundation, WRMS has garnered recognition for its innovative solutions benefitting farmers across 22 states in India and 20 countries worldwide.

As the finance minister prepares to address the nation, WRMS is poised to leverage the budget to further its mission of enhancing productivity and ensuring secure incomes for farmers.

"The agritech sector, being the beacon of innovation, has witnessed significant strides in 2023. To propel this momentum, we urge the government to allocate substantial funds in the upcoming budget, focusing on the comprehensive development of the agritech ecosystem. By prioritising technological advancements and enhancing agriculture infrastructure, we can unlock the full potential of our second-largest contributor to the economy. Schemes promoting technology adoption, resource efficiency, reduced input costs, increased agricultural yields, and better forward-backward linkages are imperative. Additionally, subsidising crop insurance, offering financial support for the acquisition of drones and accessories, and providing a conducive environment for startups through R&D, tax benefits, and automation incentives will make agriculture a resilient, tech-led powerhouse." said Anuj Kumbhat, Co-founder and CEO, Weather Risk Management Services Pvt Ltd.

Basiz Fund Services: Navigating Financial Horizons with Expertise

In the agriculture financial realm, Basiz Fund Services stands out as a specialised fund accounting service provider. With a robust history of handling assignments totaling over $ 17 Billion in Assets Under Administration (AUA), Basiz has proven its mettle in the financial services industry. As the finance minister gears up to address the nation, the financial sector is keenly anticipating policies that may impact fund management, accounting standards, and global financial services.

Basiz Fund Services, which caters to the securities services arms of top global MNC banks, is positioned to respond to potential changes in regulations and financial reporting standards. With its comprehensive services covering various asset classes and global jurisdictions, Basiz is prepared to adapt to the evolving financial landscape shaped by the budget.

"We anticipate minimal revisions to the finance act, as the impending budget is an interim one. It will have some populist announcements tailored to appeal to the voters. The government's accomplishments in various schemes will be highlighted, showcasing their positive impact. In light of the election season, it is also reasonable to anticipate adjustments to the Minimum Support Price (MSP), particularly for key commodities such as wheat and rice. There is a likelihood of an upward revision in the allocation for crop insurance," said CA Aditya Sesh, Founder and Managing Director of Basiz Fund Service Private Limited.

"Notably, the Pradhan Mantri Kisan Samman Nidhi will see an increase to 8000 per year as minimum income support. This is because the GDP growth has been better than expected which gives the government the headroom to contain the Fiscal deficit," he added.

As the nation braces itself for the unveiling of the Union Budget, the agricultural and financial sectors remain poised for potential policy shifts that could shape their respective landscapes. The pre-budget sentiments from WRMS and Basiz Fund Services echoes with sentiments of agritech and fintech sectors.