As many sectors pin their hopes on today’s Union Budget, which will be presented by Finance Minister Nirmala Sitharaman, her seventh budget and the first by the BJP-led NDA government since their re-election in June, brands and agencies have also outlined their pre-budget expectations, emphasising the need for the government to focus on economic growth and providing a significant boost to entrepreneurship and innovation, which will foster the overall startup ecosystem.
Additionally, they seek a special tax SOPs for the VFX and animation industry on international work orders, a boost for digital advertising, and certain policies to enhance India’s retail media landscape. Moreover, they have urged the government to address regulations around data usage and privacy, potentially shaping how retail media networks monetise their first-party data, regulate emerging technologies like AI in advertising, and establish a stringent regulatory framework to support the startup ecosystem while providing clear data privacy and security guidelines
Mautik Tolia, Managing Director, Bodhitree Multimedia highlighted, ”We are hopeful for measures that will boost our global competitiveness. Our expectations would be to increase the subsidies on international productions to attract more business. Special tax SOPs to be given to the VFX and Animation industry on their international work orders. We expect the establishment of a dedicated fund by the government to boost content creation and the media technology space, with a special focus on investing in AI and content creation, keeping the international markets as the target.”
Priyanka Salot, Co-Founder, The Sleep Company, emphasised that India is a booming economy and is doing far better than most developed nations in terms of GDP growth. In the upcoming Union Budget, the brand expects the government to focus heavily on economic growth, providing a significant boost to entrepreneurship and innovation which will lead to the growth of the overall startup ecosystem.
“Every industry is undergoing a tech transformation, especially with the boom in AI integration in products and services. It will be crucial to provide further boost to tech policies in order to foster innovation at startups. While the government has taken initial steps by introducing IndiaAI Mission, strategic collaborations and policy initiatives will elevate India’s position as a global tech hub. Besides, we look forward to the government to create a robust infrastructure and provide access to essential resources for the growth of the entrepreneurial ecosystem in the country,” Salot said.
Furthermore, she went on to say that there also needs to be focus on nurturing the tech talent not just in urban areas but also extending skill development programs in smaller towns. India has the world’s youngest population, and it will be necessary for industry stakeholders and the government to provide them with relevant platforms to showcase their skills and create job opportunities.
Talking about the mattress industry, Salot said, “The consumer is evolving, and they have started investing in products that they feel are good for them. As the country’s economy is poised for robust growth, people have more spending power leading to discretionary spending in households. Besides the growing health concerns and the change in consumer trend, we are confident that the mattress industry will continue to grow.”
Meanwhile, Russhabh R Thakkar, Founder and CEO, Frodoh World emphasised that they are anticipating a boost for digital advertising, given the government’s push for a digital economy.
“We expect increased allocations for rural broadband and 5G rollout, which could expand our addressable market. Compared to the last few months, we might see more support for local content creation and AdTech startups. The upcoming Union Budget may introduce policies that indirectly bolster India’s retail media landscape. We could see funding allocations aimed at strengthening digital infrastructure and data security, which are crucial for the growth of e-commerce platforms and their advertising capabilities,” Thakkar said.
“The budget might also address regulations around data usage and privacy, potentially shaping how retail media networks operate and monetise their first-party data. Beyond just digital, we anticipate targeted measures to boost the entire media ecosystem. A key area to watch is any announcement on regulating emerging technologies like AI in advertising. This could have far-reaching implications for personalization and ad fraud prevention. Lastly, given the global economic headwinds, the budget might include measures to attract more foreign investment in our AdTech sector, potentially accelerating innovation and growth,” he added.
Amit Khatri, Co-Founder, Noise underscored that India’s path to ‘Viksit Bharat’ hinges on nurturing technology breakthroughs through deep tech entrepreneurship. A Nasscom-Zinnov report shows that 14% of startup funding in the last five years has gone to deep-tech startups.
It is crucial for the new government to establish a strong regulatory framework to support the startup ecosystem and ensure efficient fund allocation to encourage strategic R&D efforts. Some improvisation in the National Policy on Electronics (NPE) can boost manufacturing by strengthening local smart wearable production and enhancing India’s global presence, he added.
Furthermore, he went on to say, “Guided by Aatmanirbhar Bharat, we additionally seek government support for extensively localising component production, fostering a lucrative environment where homegrown brands can lead globally. Incentivizing domestic production through tax breaks, subsidies, and R&D funding will enhance India’s manufacturing capabilities. We are ready to collaborate with the government to make India a global leader in the smart wearable industry, driving economic growth, creating jobs, and delivering innovative products that enhance millions of lives.”
On the other hand, Indraneel Gupta, Founder and CEO, Portl, said that currently, the prohibitive 18% GST on fitness equipment and services limits accessibility for many Indians. Reducing the GST to 5% could significantly lower costs, making these essential health resources more affordable.
“Lowering GST on fitness equipment will encourage more households to invest in home fitness solutions, promoting regular physical activity. Similarly, reducing GST on fitness services, such as personal training and nutrition coaching, will make these essential health services more accessible. These changes can lead to a healthier population, reducing the economic burden of non-communicable diseases, projected to cost India around $4.58 trillion between 2012 and 2030,” Gupta said.
“We urge the government to implement these GST reductions, enhancing public health and boosting economic productivity through a healthier, more active workforce. It’s time to foster a culture of fitness and well-being, contributing to India’s economic and social development. Lowering GST rates is a strategic move towards a healthier, more prosperous nation,” he added.
Prateek Maheshwari, Co-Founder of PW, said that students that hail from Below Poverty Line (BPL) and Low Income Group (LIG) families should receive 100% GST exemption from all educational expenses, be it test-prep courses or job-oriented skill courses, as it takes away a significant portion of their net disposable income.
“The 18% tax slab is extremely high for a need as basic as education. The government should derive a mechanism to enable more students to receive quality education while making it affordable simultaneously. We welcome the GST exemption related to student housing, however, it is important to remove the ambiguities. It continues to be a grey area, given the student needs to continuously reside in that accommodation for a period of 90 days. While the aim is to benefit the students, this exemption lacks clarity on execution in terms of timeline,” Maheshwari said.
“The government should allocate budgets to boost job creation and make fundamental changes so that private players can help put the vision of Viksit Bharat into action. Additionally, in order to create affordable degrees with an aim to increase the Gross Enrollment Ratio (GER), student financing should be rationalised in Higher Education. The government should introduce academic performance-linked models of funding for Educational programs,” he added.
Abhinav Jain, Co-Founder and CEO, Almonds AI, said that in the rapidly evolving landscape of technology and innovation, startups are the engines of future economic growth.
“The upcoming budget presents a critical opportunity to fuel these engines, ensuring we keep pace with global advancements and lead the charge. Removing the debated ‘Angel Tax’ will significantly propel India’s ascent as a global hub of innovation and technology. Smart investments in our tech ecosystem today will shape tomorrow’s industries, creating jobs, driving innovation, and securing our position in the global digital economy,” he added.
Meanwhile, Amarendran Vummidi, Managing Partner, Vummidi Bangaru Jewellers, emphasised that the jewellery industry, a keystone of India’s economy, eagerly anticipates the upcoming budget.
“With gold exports being a significant contributor to the country’s revenue, we seek favourable government policies to enhance growth and sustainability. We look forward to incentives on gold jewellery exports to maintain its competitive edge. The industry also hopes for policies that will ensure affordable interest rates, enabling them to maintain liquidity and manage cash flows effectively. These measures will also be beneficial to create new jobs,” he added.
Ambika Sharma, Founder and MD, Pulp Strategy highlighted that she is keenly optimistic about the government’s support for the digital advertising sector. With digital advertising projected to drive significant growth in the marketing industry, she anticipates policies that enhance digital infrastructure and incentivise the adoption of advanced technologies like AI, AR, and VR.
“Furthermore, robust support for MSMEs, the backbone of our economy, will be crucial. Measures that provide financial relief and stimulate growth in the MSME sector will inevitably lead to increased marketing and advertising investments, driving overall economic progress. I also hope there will be a focus on providing funds to address delays in MSME payments, which is currently dragging the segment down and creating cash flow challenges,” she added.
Yasin Hamidani, Director, Media Care Brand Solutions highlighted that the advertising and marketing sector in India is anticipating several key measures in the upcoming budget to stimulate growth, foster innovation, and support digital transformation. The primary expectations include, providing tax incentives for investments in digital marketing tools and technologies to encourage the adoption of advanced digital strategies. Offering financial support and subsidies for small and medium-sized enterprises (SMEs) to adopt digital marketing solutions, ensuring they can compete with larger players.
“Other expectations include increasing funding for local content creators to promote homegrown talent and support the production of high-quality content. Introducing tax relief for companies investing in local content creation to encourage the development of culturally relevant advertising. Enhancing support for advertising and marketing startups through incubation programs, funding, and mentorship, fostering innovation in the sector. Offering tax incentives for research and development in advertising technologies to promote the creation of new tools and platforms,” Hamidani said.
Furthermore, he highlighted other expectations from the Union Budget including, simplifying regulatory and compliance requirements for advertising agencies to reduce administrative burdens and encourage business growth. Simplifying GST processes and reducing rates for advertising services to lower the cost of advertising campaigns. Establishing clear data privacy and security guidelines to provide a safe and transparent environment for digital marketing activities. Providing financial and technical support for companies to comply with data protection regulations, ensuring responsible use of consumer data.
“The government-backed training programs for digital marketing skills should be funded to enhance the workforce’s capabilities and address the sector’s skill gap. The collaborations between educational institutions and the advertising industry should be encouraged to develop relevant curricula and internship opportunities,” Hamidani said.
“Other expectations include, providing incentives for environmentally sustainable advertising practices, such as using eco-friendly materials and reducing carbon footprints. Encouraging companies to integrate corporate social responsibility (CSR) initiatives into their marketing strategies to promote social and environmental causes. Supporting advertising agencies to expand globally by providing export incentives and facilitating international partnerships. Initiatives to promote Indian advertising talent and creativity on international platforms to enhance the global reputation of the Indian advertising industry,” he added.
Hamidani stated that these expectations reflect the industry’s desire for a supportive budget that fosters innovation, digital transformation, and sustainable growth, positioning the advertising and marketing sector for future success in a rapidly evolving landscape.
