Union Budget 2024: Tax incentives, growth measures on the CMO wish list
As the Union Budget for 2024-2025 looms on the horizon, the marketing and advertising fraternity is closely monitoring the developments with keen interest and cautious optimism. Scheduled for unveiling on July 23, 2024, this budget arrives at a critical juncture for the industry, which has been navigating a rapidly evolving landscape shaped primarily by digital transformation, shifting consumer behaviours, and the ongoing impact of global economic trends. Industry leaders and professionals are hopeful that Union Budget 2024 will introduce policies and incentives that support innovation, enhance digital infrastructure, and address the challenges faced by advertisers in a dynamic market. Key areas of focus include potential changes in advertising taxation, increased funding for digital marketing initiatives, and support for small and medium-sized enterprises (SMEs) in the marketing space. Ashish Bhasin, Founder The Bhasin Consulting Group says, “I hope that it is a growth-oriented budget, which puts more money in the pockets of the consumer. Because generally, if the economy does well, then advertising does well. The rule of thumb is that advertising tends to grow 1.5 times the rate of the GDP growth. So for example, if GDP is growing at 7%, advertising will go around 10 or 11%. So the more the GDP grows, the better it is for advertising.” He also feels that advertising has to be seen as an investment and not as an expenditure. “And therefore, some tax incentive or some tax benefit has to be allowed on it just as it is done for, let's say, research and development or R&D,” Bhasin added. The community is eager to see how the government plans to stimulate economic growth, which in turn could lead to increased advertising spend and more robust consumer engagement. Another hope from marketers’ end is to see how sustainability picks pace in the budget going forward, considering ‘sustainability marketing’ is a growing discussion across boardrooms. Rajat Abbi, Vice President – Global Marketing, Greater India & CMO, Schneider Electric India said, “As we look ahead to the upcoming budget, our expectations are firmly rooted in the government’s commitment to sustainability and energy efficiency. We believe that the government is and will play a pivotal role in encouraging companies to adopt and drive forward sustainability initiatives. Providing incentives for businesses that invest in energy-efficient technologies and sustainable practices will accelerate the transition to a greener economy but also help the country achieve its goal of becoming net-zero by 2070.” There’s also a lot of hope and expectation from the marketing community’s end, to build India’s martech and adtech capabilities. Sajal Gupta, Chief Executive, Kiaos Marketing says, “The AdTech and MarTech domains require continuous innovation and significant investment in research and development over a long-term commitment, focusing on future revenue generation. The industry seeks government support through incentives and provision of tax breaks to foster innovation.” Furthermore, according to Gupta, this sector has the potential to create new employment opportunities for the youth. Therefore, it is imperative for the government to invest in the development of programs aimed at enhancing skills in these emerging fields. Bhasin agrees that India is well on its way towards becoming the adtech and martech capital of the world. He explained, “Almost all villages either have been or will be linked by fiber cable. And therefore, the internet is going to reach the nooks and corners of the country. Even at a base level, I expect another 150 to 200 million people will join the internet in the next maybe two to three years. Thus, India has great potential to become the ad tech and martech capital of the world with the skills and capabilities that we have. Incentives in that area would be huge. On the tech front from a startup perspective, Amit Khatri, Co-Founder, Noise adds 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,” Khatri added. With high stakes and significant expectations, the forthcoming budget holds the promise of shaping the future trajectory of the industry, either by providing the necessary boost for growth or by imposing constraints that could stifle creativity and expansion. As the sector braces for the announcement, the anticipation is palpable, and the potential impacts are poised to resonate across the entire marketing and advertising ecosystem.
Tags : Union Budget Rajat Abbi Sajal Gupta Advertising And Marketing Amit Khatri Ashish Bhasin Union Budget 2024