What fintech sector seeks from Budget; Healthcare sector’s Budget wishlist

Hello,

Something is rotten in the state of Denmark.

Coaching giant FIITJEE is seeing parents’ wrath after the organisation shut several of its centres in north India ahead of the crucial JEE examinations. While parents and teachers allege non-payment of dues, the institute has laid the blame on the management partners.

The coaching industry in India bloomed at the onset of this century to cater to the increasing demand from students and parents for additional academic support. The official GST collections from coaching institutions in India rose from Rs 2,240 crore in 2019-20 to Rs 5,517 crore in 2023-24, as per government data.

However, the shine is coming off.

Rajasthan's Kota, famous for its extensive coaching facilities for medical and engineering entrance exams, is experiencing a significant drop in student enrollment—down 40% from last year. According to reports, coaching institutes across India are witnessing a 20-30% drop in their NEET preparation programmes.

When one door closes, another opens. The coaching industry is now cashing in the competition to become a judge in India’s lower courts and tribunals as the demand for judicial services exams sees an uptick.

Meanwhile, a Bengaluru-based NGO provides entrance exam coaching to underprivileged youth free of cost by bringing volunteers from IIMs. 

ICYMI: Indian Army daredevils set world records on Republic Day.

In today’s newsletter, we will talk about 

• What fintech sector seeks from Budget 2025
• Healthcare sector’s Budget wishlist

Here’s your trivia for today: Where is the oldest mosque in India located?

Union Budget

What fintech sector seeks from Budget 2025

While the Budget 2024-25 introduced increased taxes on long-term and short-term capital gains, as well as a higher securities transaction tax, these changes aimed mostly at moderating market activities. 

This year, the fintech sector’s wish list for the Budget includes tax breaks, AI push, and digital lending reforms.

Expectations:

• Rohit Garg, Co-founder and CEO of Olyv, advocated for tax incentives for digital lending platforms and policies that enhance digital infrastructure and data-sharing frameworks, alongside promoting nationwide credit literacy programmes.
• Arpit Chug, CFO of Razorpay, called for the need for greater support for startups, particularly in research and development. “Startups investing in cutting-edge tech infrastructure should receive enhanced tax deductions and subsidies for R&D-related costs.”
• Beams Fintech Fund, an early-stage venture capital fund that invests in financial services, fintech, and SaaS companies in India, expressed optimism about initiatives for sustainable finance. “Green finance and ESG-aligned policies could position India as a global leader in fintech investments,” their spokesperson said. 

Union Budget

Healthcare sector’s Budget wishlist

Healthcare providers and other stakeholders hope the upcoming Union Budget will give the healthcare sector a boost in the form of reduced GST rates, relaxed customs duties, and increased funding. 

Key asks:

• The sector is hoping for a host of changes in the tax structure, including rationalisation of GST, tax concessions, and other benefits, apart from lowering import duty on advanced medical equipment. 
• The impact of concessions on insurance premiums paid—such as tax exemptions on premiums and GST concessions on services delivered under insurance—can bring a larger population into the system.
• Dr Sandip Shah, Joint Managing Director, Neuberg Diagnostics, says, “Key expectations include financial incentives to promote the development of advanced diagnostic technologies and enhanced funding for government-led screening programmes for non-communicable diseases and infectious conditions.”

News & updates

• Joint venture: Oracle and a group of investors including Microsoft are in talks to take over TikTok’s global operations. The deal would see ByteDance keeping a minority stake while “the app’s algorithm, data collection and software updates will be overseen by Oracle.”
• AI learning: With an eye on maintaining its competitive edge, Google has committed $120 million towards AI education. As part of these efforts, Google’s ‘Grow with Google’ initiative is expanding to offer courses specifically tailored to AI.

What you should watch out for

• Budget 2025: The Indian startup ecosystem has big expectations from the upcoming Union Budget. From the EV sector seeking subsidies for charging infrastructure, the education sector hoping for tax breaks, healthcare providers asking for GST reforms, and the investor community seeking clarity in regulations, entrepreneurs are hoping for big incentives from the Budget. The government will also release the Economic Survey 2024-25 on January 31 to highlight key trends across sectors.
• Q3 results: This week, around 140 companies will announce their third-quarter results. These include Tata Steel, Bajaj Auto, L&T, Adani Enterprises, Adani Ports, TVS Motor, Bajaj Finserv, Bajaj Finance, Maruti Suzuki, Tata Motors, IndusInd Bank, ONGC, Suzlon Energy, and Nestle India.

Where is the oldest mosque in India located?

Answer: The Cheraman Juma Mosque in Kodungallur, Kerala. It was built in 629 CE.

We would love to hear from you! To let us know what you liked and disliked about our newsletter, please mail [email protected]. 

If you don’t already get this newsletter in your inbox, sign up here. For past editions of the YourStory Buzz, you can check our Daily Capsule page here.