BUDGET 2024: A CATALYST FOR FINANCIAL INNOVATION AND FINTECHS

The Indian government has been implementing significant reforms in the Budget to strengthen the economy and enhance the International Financial Services Centre (IFSC)’s global competitiveness. These reforms aim to support India’s ambitious economic growth objectives and pave the way for becoming a developed nation. The 2024 Budget is eagerly anticipated by foreign organizations looking to enter India and the IFSC, aiming to expand their presence not only in India but globally.

Expectations and Potential Way Forward

IFSC

Leveraging Further Tax Benefits: One of the key reforms proposed is the exemption of withholding tax on payments to IFSC units within the IFSC, regardless of the payee’s residency status. A simple declaration during the setup phase will streamline regulatory processes and create a conducive business environment within the IFSC. This exemption is crucial for IFSC units benefiting from tax holidays, providing increased liquidity and reducing compliance burdens. Units established in the IFSC before the IFSCA’s inception should have extended and continuous tax exemptions.

Fostering Investor Confidence: Clarity is needed on the classification of investments in Family Investment Funds (FIFs) under the overseas investment regime to designate them as Overseas Portfolio Investment. With the RBI cautious about outward flows from IFSC, efforts should focus on streamlining regulations and offering certainty to investors. Regulatory clarity is essential for attracting foreign investments and strengthening IFSC’s position as the preferred international finance hub.

Balancing Inbound and Outbound Investments: Although there is an established tax framework for inbound investments into IFSC, there is a notable gap in the tax treatment of outbound funds originating from these centers. Addressing this gap is crucial for aligning India’s IFSCs with global financial centers and enhancing their competitiveness in attracting outbound investments.

In conclusion, these recommended reforms will lay a solid foundation for developing a robust financial regime for investors in the IFSC.

INDIA

Empowering India’s FinTech Sector: India’s FinTech industry is poised to contribute $400 billion by 2030, significantly advancing the goal of becoming a $5-trillion economy. With increasing concerns in cybersecurity, the upcoming Budget should focus on implementing a national cybersecurity policy, fostering public-private partnerships, training programs, and subsidies to encourage investments in research and development, and ensuring strict data protection norms to safeguard sensitive information.

FinTechs expect incentives such as exemptions for smaller companies from GST filings, tax benefits on total expenditure for companies focusing on last-mile empowerment, and increased capital availability to operate in underserved areas like rural credit, digital payments, and digital lending. Allocating higher funds and incentivizing AI adoption to boost India’s competitiveness will further stimulate innovation, promote financial inclusion, and solidify India’s global FinTech leadership, leading to the overall development of a dynamic and diverse financial ecosystem.

India’s ongoing support for the FinTech industry and efforts to address cybersecurity concerns are laying the groundwork for a strong and resilient financial system essential for sustaining long-term economic growth.

Considerations

These reforms will create a favorable environment for financial innovation, attract global investments, and propel India towards a $5-trillion economy. These Budget expectations demonstrate India’s commitment to leveraging the IFSC for economic transformation and moving towards a self-reliant Atmanirbhar India, as advocated by the country’s Prime Minister.

As always, expectations are high for the annual Budget, providing the government an opportunity to establish a framework for boosting economic growth through policy announcements and addressing the country’s structural challenges.

Introduction

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Duis nec condimentum risus. Maecenas feugiat lectus in quam tincidunt, ut finibus lectus tempor. Vestibulum ante ipsum primis in faucibus orci luctus et ultrices posuere cubilia Curae; Nulla facilisi. Nunc a imperdiet turpis, vel laoreet sapien. Donec in ultricies justo.

Background

Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas. Nullam id vestibulum orci. Curabitur varius mi vel mauris eleifend, tempus pulvinar odio tincidunt. Proin metus mauris, fermentum ac ultricies a, imperdiet ac nunc. Nullam scelerisque, sem non feugiat suscipit, justo justo feugiat purus, nec laoreet urna purus vel lorem.

Methodology

In hac habitasse platea dictumst. Integer et purus a ex sollicitudin posuere. Proin nec laoreet metus. Etiam consectetur velit sapien, in scelerisque purus volutpat vitae. Curabitur vel quam id turpis feugiat ornare nec nec enim. Nulla facilisi. Nunc urna diam, mattis ut nisi vitae, tincidunt condimentum felis.

Results

Fusce sagittis, nunc et laoreet finibus, nisi elit tristique magna, ac tincidunt erat sem in libero. Vestibulum id purus scelerisque, accumsan felis non, pellentesque orci. Cras lectus dui, lobortis vel varius nec, tempor id sapien. Sed mollis erat sed erat congue, in porttitor sapien vehicula.

Discussion

Nulla nec nisi nec sem tristique sodales. Sed rutrum sem id odio cursus euismod. Nunc rhoncus lacus a commodo dapibus. Curabitur placerat odio id viverra faucibus. Integer sapien leo, dictum at tempor nec, tincidunt sit amet ante.

Conclusion

Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas. In hac habitasse platea dictumst. Vivamus sit amet orci eu mauris consequat pretium. Integer euismod, tortor eget malesuada malesuada, purus dui ultricies nibh, quis lobortis odio quam non lorem. Sed euismod diam id mi sollicitudin, vitae rhoncus dolor consectetur.

Concluding Thoughts:

In conclusion, Instagram hashtags are a powerful tool for boosting your visibility and engagement on the platform. By using a mix of niche, industry-specific, and trending hashtags, you can increase the reach of your posts and attract new followers. Be strategic with your hashtag selection, and don’t be afraid to experiment to see what works best for your content.

Remember to also engage with other users who are using the same hashtags, and participate in trending conversations to further increase your exposure. With a thoughtful approach to hashtag usage, you can elevate your Instagram game and grow your following in no time.

Related viral Instagram hashtags:
#instagood, #photooftheday, #tbt, #love, #picoftheday, #instadaily, #beautiful, #fun, #instalike, #happy