Union Budget 2024

With the Union Budget 2024-25 just around the corner, the sustainability and climate solutions industry is urging the government for crucial support. In a pre-budget press note, World of Circular Economy (WOCE), underscored the industry's key demands, emphasizing the need for funds, incentives, and robust policies. The primary goal is to expedite India's transition towards decarbonization and address challenges faced by companies operating in sustainability.

Challenges Faced by Sustainability SMEs

"Companies in the sustainability sector, especially SMEs, are facing multiple challenges, including immediate financial burdens and securing necessary resources. Urgent government intervention is needed to overcome these challenges and facilitate the seamless integration of sustainable practices. The absence of timely support could lead to severe repercussions, including penalties and economic losses in global market competitiveness," said Anup Garg, Founder and Director, World of Circular Economy (WOCE).

Explaining the need, he stated, "More than 50% of the clients that our industry engages with are SMEs, and 85-90% of them hesitate to adopt sustainability solutions. This is largely attributed to the absence of significant government initiatives in terms of reporting carbon emissions and the lack of corresponding incentives."

Industry Demands for the Upcoming Budget

1. Introduction of Input Tax Credit:

Request to provide input tax credit for using green fuel in manufacturing processes.

2. Subsidized Loans:

Request to provide subsidized loans for investment in green technologies.

3. Incentivizing Traceability Initiatives:

Incentivize carbon-intensive factories for traceability initiatives in the raw material supply chain.

4. Direct Tax Concessions for Compliance:

Request to provide direct tax concessions to businesses complying with ESG, BRSR, and other sustainability compliances.

5. Incentives for SMEs:

Provide incentives, especially for SMEs, to opt for digital solutions that play a compelling role in helping businesses report their ESG metrics more efficiently.

6. Promoting Research and Development:

Allocate funds for research and development in greener technologies, encouraging sectors like transportation, energy, and manufacturing to transition to sustainable practices.

7. Formation of Carbon Market Framework:

Incentivize bodies and organizations developing the carbon market framework aligning with emerging global sustainability regulations.

8. Promoting Decarbonization Tools:

Direct tax incentives for companies promoting the use of decarbonization tools and digital technologies for reliable carbon data.

9. Tax Holiday:

Tax holiday for five years for those startups that are building and promoting sustainability solutions.

As India steers towards a greener future, these demands underscore the industry's commitment to sustainability and the vital role of government support in driving this transformative agenda.