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Tag: Budget 2024

Expert Analysis on the Budget 2024

Mr. Jitesh Agarwal, Founder of Treelife

 “The abolition of angel tax is a landmark decision that will significantly strengthen India’s position as a global startup hub. Currently, India ranks third globally in the startup ecosystem, with 1,17,254 startups and more than 100 unicorns. The removal of the angel tax will alleviate the tax burden on investors, making it easier for startups to raise early-stage funding.This move is expected to attract more domestic and international investments, fostering innovation and accelerating the growth of the startup ecosystem in India”

Ms. Garima Mitra , Co- Founder of Treelife

 ” With the Indian space economy currently valued at around $8 billion, holding a 2% share in the global space economy, the government’s commitment to expanding it by five times over the next decade is a transformative initiative. The establishment of a ₹1,000 crore venture capital fund is a strategic move that will significantly bolster the sector. This fund aims to foster innovation, support startups, and attract global investments, positioning India as a key player in the global space economy. Additionally, the exemption of customs duties on 25 critical minerals and reduction of BCD on two will boost the processing and refining of essential minerals for sectors like space, further supporting this growth. With the potential to reach $44 billion by 2033 and capture about 8% of the global share, this initiative is expected to drive advancements in space technology, create high-tech jobs, and stimulate economic growth. At Treelife, we are enthusiastic about the opportunities this brings to boost entrepreneurial endeavors and advance technological progress in the country. For more insights, our detailed report ‘India’s Space Odyssey: A Launchpad for Innovation and Growth’ delves into the latest trends, funding mechanisms, and regulatory framework in India’s space technology sector.”

Prashant Sachan, Founder and CEO, Sri Mandir

 “As the Indian budget paves the way for economic growth and opportunities, with a positive sentiment towards startups, we are delighted to be a part of the ecosystem and be able to contribute to the growth trajectory. At Sri Mandir, our efforts are aimed at developing services that help people in India and around the world, in their spiritual and devotional journeys. With the government’s focus on developing Bihar and Odisha as prominent tourist destinations, our network of temples in the region like Deo Surya Mandir among others, will attract more and more devotees to offer puja and chadhava services and enable them on their spiritual journey. We have over 20 million satisfied devotees and will continue to strive to bring happiness, peace, and contentment to even more individuals through enriching temple experiences,”

Zahara Kanchwalla, co-founder & CEO, Rite Knowledgelabs Limited

 I wish to congratulate Madam Finance on the budget, especially on two aspects. As a start-up entrepreneur, I believe the increased credit limits on MSME (Mudra) loans will significantly enhance ease of doing business and create more business opportunities.

Moreover, as a working mother, I am particularly pleased with the announcement regarding the establishment of working women hostels and creches in collaboration with industry. This initiative is a significant step towards promoting gender equality and encouraging higher participation of women in the workforce. This is truly a forward-thinking measure”.

Roshan Aslam, Co-founder & CEO of GoSats

 Mr. Mohammed Roshan Aslam, Co-founder & CEO of GoSats, feels abolishing Angel Tax and reducing Corporate Tax offers a unique opportunity for Indian startups to grow at an unprecedented rate, “The financial blueprint put forward by the Union Budget is highly favourable to the startup ecosystem in India. The Angel Tax has been one of the limiting factors for Indian startups, and doing away with it offers a unique opportunity for entrepreneurs to ensure scalability and attract angel investments. Furthermore, the Union Budget proposes to reduce the corporate tax rate on foreign companies from 40% to 35%, aligning with long-term business goals and FDI inflow, assisting the entrepreneurial spirit further.

Mukul Goyal, Co founder of Stratefix Consulting

 “The Union Budget 2024 presents an ambitious framework aimed at revitalizing India’s economic landscape, particularly for MSMEs, startups, artificial intelligence, and job creation. With a proposed allocation of ₹22,000 crore for the MSME sector, this budget has the potential to catalyze significant growth and innovation.

However, while the expansion of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is commendable, it could have been further enhanced by introducing specific incentives for eco-friendly technologies, which are crucial for aligning economic growth with sustainability.

The budget’s focus on ease of doing business is promising, with measures to streamline regulatory processes and extend tax holidays for startups. Yet, the absence of substantial changes in GST rates is a missed opportunity. Simplifying compliance and reducing the GST burden on essential goods for MSMEs would have provided immediate relief and improved cash flow management.

Moreover, while the introduction of employment-linked incentives and a ₹2 lakh crore allocation for job creation is noteworthy, the framework for skill development remains insufficient. A more robust approach to job-ready education and targeted training programs is essential to bridge the growing employability gap, particularly in high-demand sectors like AI and renewable energy.

Additionally, the budget lacks a comprehensive strategy to address the potential job displacement caused by AI advancements. A proactive approach, including retraining programs and direct benefit transfers for affected workers, could have been beneficial.

 while the Union Budget 2024 lays a strong foundation for growth, it is imperative that the government prioritizes effective implementation and creates synergies across sectors. By addressing these gaps, we can ensure that the coming fiscal year transforms not just the economy, but also the lives of millions of Indians.”

Mr. Anand V.S., Managing Director, NOCIL Limited

 He has over 25 years of experience in the chemical industry, covering business management, sales and marketing, strategy, and operations. He has held various roles at BASF, both in India and internationally, and was previously the Managing Director of Chemetall India (a BASF Group Company).

Balajee Bobba, Director, Bobba Group

 “We commend the government for its visionary Union Budget 2024-25, which strategically emphasizes infrastructure, manufacturing, and skill development. The spotlight on the logistics and supply chain sector is crucial for India’s growth trajectory. Introducing e-commerce export hubs and industrial centers under the Vikas Bhi, Virasat Bhi scheme is a praiseworthy approach to bolster MSMEs and foster regional development. The government’s commitment to green energy and EV infrastructure marks a significant step towards sustainable logistics. Additionally, the focus on technology and innovation will enable the industry to leverage AI, enhancing warehousing and optimizing every facet of the supply chain. At Bobba Group, we are enthusiastic about these initiatives and look forward to capitalizing on these opportunities to drive innovation, generate employment, and promote balanced economic growth.” –

Prateek Rastogi, Co-Founder & CEO of Greenday

 The 2024 budget further strengthens the government’s commitment to agriculture and startups, with a significant focus on climate-resilient agriculture. This is a tremendous boost for biofortified varieties, which are the beacon of hope for climate resilient farming.

The emphasis on agricultural research is particularly exciting for us at Greenday. Our mission to enhance the nutritional value of food while supporting farmers is closely aligned with these initiatives. This will help us create nutrion dense and climate resilient farms that meet the growing demand for sustainable and nutritious food.

The removal of the angel tax and the major push for agri startups make this an ideal time for investors to dive into this sector. The budget’s increased allocation for agricultural infrastructure and support for innovation will drive remarkable growth over the next five years.

For Greenday and our Better Nutrition brand, this budget provides the perfect environment to scale operations and bring more innovative products to market. We are helping farmers create and market differentiated varieties, which is essential for improving food security and nutrition.

The focus on digital infrastructure and ease of doing business is another significant win for startups. Streamlined processes and better connectivity will enable us to reach more people, faster. It’s an exciting time to be in the agri-tech space, and we’re eager to leverage these new opportunities to drive growth and create lasting change.

Overall, the 2024 budget lays a strong foundation for innovation and growth in agriculture and startups. It’s a pivotal moment, and I’m optimistic about the future it promises for companies like Greenday.

Nirmit Parikh, CEO & founder, apna.co

 “The Union Budget FY2024-25 underscores job creation as a critical priority, mirroring our shared focus on skilling and employment. The substantial Rs. 1.48 lakh crore allocation for education, employment, and skill development marks a significant stride forward. Introducing five schemes aimed at skilling over 40 million youth within five years, backed by an outlay of Rs. 2 lakh crore, is a monumental step toward shaping a skilled and future-ready workforce.

Moreover, the initiative to establish working women hostels and crèches in collaboration with the industry is a progressive move that will enhance workforce participation among women and promote gender equity. The partnerships for women-centric skills programs and the provision of market access for female SHG businesses are especially commendable, empowering women to play a more significant role in our economy. The three employment-linked incentive schemes, which support first-time job seekers, job creation in manufacturing, and employee support, are poised to drive significant employment growth.

Additionally, the emphasis on accelerating the growth of the rural economy, supporting MSMEs, and promoting tourism will further amplify employment opportunities across diverse sectors. This comprehensive approach reflects a visionary strategy to build a robust, inclusive, and dynamic economy that benefits all.”

Budget 2024 Sets the Tone of Developed India by 2047 And MSMEs to Remain Among Top Priority

MR FAIZ

Mr. Faiz Askari , Founder of SMEStreet shares an overview on Modi 3.0’s Budget 2024 presented by FM Nirmala Sitharaman on 23rd July 2024.

Mr Askari stated, “The Union Budget 2024 sets forth an ambitious blueprint aimed at transforming India into a developed nation. Central to this vision is substantial investment in infrastructure, encompassing transportation networks, energy projects, and digital connectivity, all designed to bolster economic growth and enhance nationwide connectivity. The healthcare sector sees a significant boost, with increased funding for public health infrastructure, expanded health insurance coverage, and improved access to essential medicines, ensuring a healthier population. Education and skill development are prioritized, with allocations for digital education, vocational training, and higher education to cultivate a skilled and future-ready workforce.

In alignment with global sustainability goals, the budget promotes a green economy through initiatives encouraging renewable energy adoption, carbon emission reduction, and sustainable practices. This includes incentives for electric vehicles, solar energy projects, and the integration of green technologies. Agriculture and rural development receive focused attention, with measures to improve credit access for farmers, modernize agricultural practices, and enhance rural infrastructure, aiming to double farmers’ incomes and secure food supplies.

To drive technological advancement and innovation, the budget invests in research and development, supports startups, and fosters a culture of innovation, enhancing India’s global competitiveness. Financial inclusion initiatives ensure broader access to banking and financial services, particularly for underserved and rural populations, through digital banking and financial literacy programs.

Social welfare schemes are bolstered to support marginalized and vulnerable populations, with increased provisions for affordable housing, social insurance, and aid for senior citizens and differently-abled individuals. The ease of doing business is improved through streamlined regulatory processes, reduced bureaucratic hurdles, and incentives to attract entrepreneurship and foreign investments. National security is strengthened with increased defense spending, modernization of the armed forces, and enhanced border security measures.

From SMEStreet’s perspective, the Union Budget 2024 is particularly promising for the MSME sector. The enhanced allocation for the Credit Guarantee Scheme is seen as a crucial step in bridging the credit gap for small businesses, ensuring they have the necessary financial support to thrive. Tax relief measures and simplified compliance procedures are expected to ease the financial burden on MSMEs, fostering a more conducive environment for growth and formalization. Investment in digital infrastructure will enable MSMEs to adopt digital tools and technologies, enhancing their competitiveness in a rapidly evolving market. Skill development programs tailored for MSMEs are poised to upgrade the workforce, promoting productivity and innovation within the sector. Additionally, export promotion measures, streamlined regulatory processes, and incentives for green technologies are set to empower MSMEs, driving their growth and sustainability. Overall, SMEStreet views the budget as a comprehensive plan that not only aims to build a developed India but also ensures that MSMEs play a pivotal role in this transformation.”

Industry Leaders’ Reactions to Budget 2024

Vaibhav Shah, Fund Manager, Torus Oro PMS

Post Economic Survey released yesterday with a specific mention of the rise in speculation and capital market activity, there was nervousness among players that capital gains may be rejigged. The latest announcement with respect to increase of capital gains rate is negative as it has caught everyone by surprise. Also from a stable regime now we are witnessing changes to the regime which raises further doubts on the continuity of the rate regime.

Right from Regulators to Economic Survey, equity market activity was highlighted as a barometer for increased speculation and participation of the masses. The budget put the final nail to the coffin by announcing rise in capital gain tax which has created increased nervousness among investors regarding its applicability and also about the continuity of the rate regime

Overall budget touched upon various important aspects like rural development, employment, women empowerment, fiscal consolidation, capex continuity etc. Fiscal consolidation path is a welcome move which was revised lower than interim budget. Initiatives in rationalization of tax structure is a step in the right direction. Inspite of coalition overhang, capital expenditure was maintained at the same level. So overall the narrative was clear on the growth aspect and the efforts will be made towards transforming the economy. Hike in capital gain tax took markets by surprise adding nervousness around the rate regime.

Mr. Navneet Munot, MD & CEO, HDFC AMC

Union Budget aimed to strike a fine balance between fiscal prudence and growth impetus. Budget has focused on continuing SIP i.e. Sustainable development, Inclusive growth and Prudence (fiscal consolidation). Spotlight on skilling and job creation could help India reap rewards of its demographic edge. While digesting the taxation changes, equity markets will shift focus back on earnings trajectory and other macro-economic developments. Continuing commitment to fiscal consolidation could bode well for the bond market.

Budget has focused on continuing SIP i.e. Sustainable development, Inclusive growth and Prudence (fiscal consolidation). Spotlight on job creation will help India reap rewards of its demographic edge.

Kamal Bali, President & MD – Volvo Group in India

It is one of the most thoughtful, pragmatic and inclusive budgets, that addresses most sections of our society and economy. A growth oriented budget which continues to be large on infrastructure capex, and on schemes for skilling & employment generation, yet fiscally responsible with a good glide path, for controlled inflation & macroeconomic stability.

Piyush Bothra, Cofounder & CFO, Square Yards

Today’s budget announcement brings several positives for the real estate sector. The allocation of INR 10 lakh crore towards PMAY, plans for transit-oriented development (TOD) in 14 major cities, and a framework for brownfield redevelopment to revitalize older neighborhoods will facilitate the sustainable growth of cities. These measures are expected to invigorate real estate activity, particularly in the residential segment, over the coming year.

However, some critical expectations remain unmet. Revising and expanding the upper tax bracket, currently capped at INR 15 lakh and taxed at a steep 30% under both regimes, and updating the limits for home loan deductions could have further stimulated residential demand and provided additional relief to homebuyers.

Mr. Meenu Singhal, Regional Managing Director, Socomec Innovative Power Solutions, Greater India

“Today’s budget announcement marks a pivotal moment for India with funding focus on 9 priorities including Productivity and resilience in Agriculture, Employment & Skilling, Human Resource Development and Social Justice, Manufacturing & Services, Urban Development, Energy Security, Infrastructure, Innovation, Research & Development and Next Generation Reforms generating ample opportunities for all.

This budget paves way for a significant growth towards a ‘Viksit’ Bharat. With one lakh crore fund being allocated for research and innovation, it will help in providing a substantial sustainable growth opportunity for our country by 2047. The policy highlighting on the use of appropriate energy transition will help in balancing the imperatives of employment leading to a more organized growth and environmental sustainability.

The budget’s emphasis on providing skilling programmes will empower the youth in obtaining quality employment opportunities. We appreciate government’s move to reduce the corporate tax for foreign companies from 40 per cent to 35 per cent. This endeavour will improve the overall business environment, making it conducive to foreign direct investments into the country which will create more employment opportunities for the youth and stimulate economic growth. The Angel Tax abolition would also super charge the startup ecosystem”.

Vikas Bajaj, President of Association of Indian Forging Industry (AIFI)

 ” We welcome the budget presented today, which lays out a comprehensive roadmap for ‘Viksit Bharat’ across key sectors including manufacturing and services. The emphasis on promoting MSMEs through enhanced credit support and infrastructure development is particularly commendable. These measures will not only bolster job creation but also enhance competitiveness, paving the way for a robust industrial growth trajectory. For the manufacturing sector, the proposed incentives for additional employment will significantly boost job creation and strengthen the manufacturing ecosystem. The special attention given to MSMEs, particularly labour-intensive manufacturing, through financing, regulatory changes, and technology support, is a crucial step toward enhancing global competitiveness.

The introduction of a credit guarantee scheme for MSMEs, providing up to ₹100 crore without collateral, along with the new credit assessment model and enhanced Mudra loan limits, will ensure broader financial inclusion and stability. The commitment to developing ‘plug and play’ industrial parks and reducing customs duty on key raw materials like ferro nickel and blister copper will lower production costs and enhance competitiveness. Additionally, the financial support for shifting micro and small industries to cleaner forms of energy and the facilitation of investment-grade energy audits in 60 clusters, with expansion to 100 clusters, will greatly benefit MSME units in the forging sector. Overall, this budget is a significant step towards ‘Viksit Bharat,’ and we at AIFI are optimistic about its positive impact on the forging industry and the broader manufacturing sector.”

Murali Iyer, Country CFO, IKEA India.

“The budget demonstrated commitment to supporting MSMEs and women via access to finance, infrastructure and skilling support. Innovative schemes, such as internship opportunities for youth and the development of Digital Public Infrastructure reflect the government’s forward-thinking approach. Significant investments in infrastructure and tax relief measures, such as an increased standard deduction for salaried employees, will increase disposable income for consumers, providing a boost to retail. Additionally, the focus on climate sustainability through a roadmap for transitioning industries is most welcome. We believe the focus on manufacturing, youth, skilling, employment generation, sustainability, and women empowerment will lead to a more inclusive growth and economy.”

Mr. Farrokh N. Cooper, Chairman and Managing Director, Cooper Corporation Pvt. Ltd. 

 “The reduction in the corporate tax rate for foreign companies from 40% to 35% is a commendable move that will attract more foreign investments into the country, fostering growth in the manufacturing sector. The proposed rationalization of capital gains taxation and the simplification of tax procedures will also enhance the ease of doing business. Additionally, the emphasis on fostering employment through various initiatives is highly encouraging. The allocation of funds towards skill development and vocational training programs will equip the labour force with the necessary skills to meet the industry’s evolving demands. As a leading engine and component manufacturer, we are hopeful that these measures will lead to increased investments, job creation, and a more skilled workforce within our sector.”

Vishal Mehta, Chairman and Managing Director, Infibeam Avenues Ltd

The budget is exceptionally commendable for the advancement of Digital India. The budget has introduced a comprehensive financial and technology support package for MSMEs, which is poised to accelerate digitalization across the country. The Honourable Finance Minister has taken a significant step by initiating the establishment of E-Commerce Export Hubs through a Public-Private Partnership (PPP) model for enabling MSMEs and traditional artisans to market their products internationally. The introduction of a credit guarantee scheme for MSMEs in the manufacturing sector, with coverage up to Rs 100 crore, is a substantial boost for small businesses in India. And development of a new assessment model where MSME’s digital footprint scoring has been linked up to the MSME credit by Public Sector Bank, will further enhance their participation in digitalization through e-commerce and the adoption of digital payments. Moreover, the enhancement of Mudra loans for entrepreneurs and the expansion of SIDBI branches across major MSME clusters will foster healthy business growth in the coming years. Finally, the reduction in the turnover threshold for buyers’ onboarding the TReDS platform will facilitate MSMEs in raising working capital through their trade receivables, thereby not only promoting business growth but will also boost digital business growth.”

Vishwas Patel, Joint Managing Director, Infibeam Avenues Ltd and Chairman, Payment Council of India (PCI)

It’s a good budget and we welcome it. Abolishment of Angel Tax from 1st April 2025, announced for all classes of investors is a huge relief for the start-up ecosystem. Reduction of TDS rate on e-commerce operators to 0.1 percent from 1 percent is also very helpful for our industry. Under the new tax regime, standard deduction hike to Rs 75,000 from Rs 50,000 is also good as well as salaried employees will save Rs. 17,500 in income tax. Overall we welcome it as we see it as a positive step for nation growth.

Sudarshan Lodha, Co-founder and CEO, Strata

The government’s focus on infrastructural development, with an impressive allocation of ₹11,000 crore, is set to significantly boost investor interest in tier II and III properties. This strategic investment will enhance connectivity and liveability, making these regions increasingly attractive for real estate investments.

The reduction of the Long-Term Capital Gains (LTCG) holding period from three years to one year introduces greater flexibility, particularly benefiting investments in Real Estate Investment Trusts (REITs). This change is expected to make REITs more appealing, encouraging increased participation in the sector. Additionally, the increase in the capital gains exemption limit from ₹1 lakh to ₹1.25 lakh per year for the middle and upper-middle classes provides valuable benefits, offsetting the impact of the raised LTCG tax rate.

Overall, these measures reflect the government’s progressive mindset on real estate investment. By promoting REITs and SM REITs, the government aims to position these investment avenues at par with those in developed economies, where REITs have achieved significant market penetration. This forward-thinking approach underscores a commitment to enhancing infrastructure and optimizing tax regulations to drive market growth and investor engagement

Reny Varghese, CAO, Zynova Shalby Hospital

 Exempting three additional medicines from customs duties is set to ease the financial burden on cancer patients and their families opening doors to accessible treatment options and successful prognosis of the disease. Many patients are already facing financial crisis due to repeated hospital admissions, and long-term treatment, so exempting custom duties on these life-saving drugs will save lives, reach the patient faster, and will be affordable for them. This is a great decision taken by the government to improve patient care and highlights its commitment to prioritize the health of the nation. In parallel to this, adjusting the Basic Customs Duty (BCD) on x-ray tubes and flat panel detectors will be a game-changer move and will revolutionize diagnostic capabilities within medical facilities. This step will make these components affordable and will motivate local manufacturers to innovate and produce high-quality imaging equipment akin to international standards. The ripple effect of these initiatives in the budget will play a pivotal role in enhanced patient outcomes through timely diagnoses, and reducing the burden from the healthcare system.

Dr Sangita Reddy, JMD, Apollo Hospital Group

  ” Exempting three cancer medications from customs duties is a promising strategy and undoubtedly a good move taken by the Government to improve the accessibility and affordability of treatment options for this fatal disease that causes higher mortality and morbidity rates in India. Recognizing the mortality linked to cervical cancer, the focus is on preventive care with initiatives aimed at increasing cervical cancer vaccinations among young girls highlighting a paradigm shift towards early intervention. However, the previous budget had announced health coverage for people over 70 up to five lakhs and the innovation fund, which is critical for healthcare. It was a monumental step taken to address the healthcare needs of an increasingly aging population and provide treatment under Ayushman Bharat Yojana. A proactive approach is required when it comes to dealing with the health of senior citizens and improving their quality of life.

Mr. Farrokh N. Cooper, Chairman and Managing Director, Cooper Corporation Pvt. Ltd

 “The reduction in the corporate tax rate for foreign companies from 40% to 35% is a commendable move that will attract more foreign investments into the country, fostering growth in the manufacturing sector. The proposed rationalization of capital gains taxation and the simplification of tax procedures will also enhance the ease of doing business. Additionally, the emphasis on fostering employment through various initiatives is highly encouraging. The allocation of funds towards skill development and vocational training programs will equip the labour force with the necessary skills to meet the industry’s evolving demands. As a leading engine and component manufacturer, we are hopeful that these measures will lead to increased investments, job creation, and a more skilled workforce within our sector.”

Dr Sudhir Mehta Founder and Chairman EKA Mobility , Pinnacle Industries for your consideration

“Today’s union budget marks a significant milestone in India’s journey toward becoming a $5 trillion economy and solidifies its role as a global growth engine. The government’s comprehensive approach to supporting various sectors, especially MSMEs and start-ups, is commendable. The introduction of a credit guarantee scheme for MSMEs, which facilitates term loans without collateral or third-party guarantees, is a game-changer. By reducing the turnover threshold for mandatory onboarding on the TReDS platform from Rs 500 crore to Rs 250 crore, the government is making it easier for smaller MSMEs to benefit from this essential online platform. Additionally, opening 24 new SIDBI branches will enhance support for MSME clusters across the country. Likewise, the abolition of the ‘Angel Tax’ for all investors in start-ups is another progressive move, offering substantial relief and encouraging greater investment in innovation and entrepreneurship. While, in agriculture, the allocation of ₹2.66 lakh crore for rural development and the focus on climate-resilient crop varieties reflect a forward-thinking strategy. The initiative to introduce 1 crore farmers to natural farming over the next two years, supported by certification and branding, will contribute significantly to the sector’s sustainability and productivity. Overall, these measures underscore the government’s commitment to fostering economic growth, supporting innovation, and driving sustainable development across sectors.”

Vikas Bajaj, President of Association of Indian Forging Industry (AIFI)

 ” We welcome the budget presented today, which lays out a comprehensive roadmap for ‘Viksit Bharat’ across key sectors including manufacturing and services. The emphasis on promoting MSMEs through enhanced credit support and infrastructure development is particularly commendable. These measures will not only bolster job creation but also enhance competitiveness, paving the way for a robust industrial growth trajectory. For the manufacturing sector, the proposed incentives for additional employment will significantly boost job creation and strengthen the manufacturing ecosystem. The special attention given to MSMEs, particularly labour-intensive manufacturing, through financing, regulatory changes, and technology support, is a crucial step toward enhancing global competitiveness.

The introduction of a credit guarantee scheme for MSMEs, providing up to ₹100 crore without collateral, along with the new credit assessment model and enhanced Mudra loan limits, will ensure broader financial inclusion and stability. The commitment to developing ‘plug and play’ industrial parks and reducing customs duty on key raw materials like ferro nickel and blister copper will lower production costs and enhance competitiveness. Additionally, the financial support for shifting micro and small industries to cleaner forms of energy and the facilitation of investment-grade energy audits in 60 clusters, with expansion to 100 clusters, will greatly benefit MSME units in the forging sector. Overall, this budget is a significant step towards ‘Viksit Bharat,’ and we at AIFI are optimistic about its positive impact on the forging industry and the broader manufacturing sector.”

Anurag Garg, Country Head & Managing Director, Vitesco Technologies India

 “We welcome the Union Budget 2024 and commend the government’s budgetary priorities aimed at fostering innovation, research, and development in the manufacturing sector. The initiatives announced today, such as the credit guarantee scheme and reduction in customs duties on critical raw materials, are poised to strengthen India’s manufacturing ecosystem. These measures will not only incentivize additional employment in the manufacturing sector but also provide the necessary financial and technological support to MSMEs, allowing them to compete globally and contribute significantly to the economy.

Additionally, the establishment of investment-ready industrial parks and the reduction of input costs through customs duty cuts will boost domestic manufacturing and export competitiveness. We look forward to leveraging these opportunities to drive sustainable growth and technological advancement in the automotive industry, aligning with our vision for a prosperous and ‘Viksit Bharat’.”

Mr. Sampad Swain, Co-founder and CEO, Instamojo

“The Ministry of Finance has unveiled a forward-looking and optimistic Union Budget 2024 designed to advance the digital economy and support the MSME sector. With ‘inclusive development’ as one of its nine pillars, this budget lays a strong foundation for accelerated financial inclusion and the expansion of the credit ecosystem. The focus on providing funding through banks to MSMEs is a commendable initiative, ensuring ongoing support for a sector that contributes over 30% to India’s GDP and serves as a vital engine for economic growth, job creation, and livelihood support. Additionally, the establishment of e-commerce export hubs for MSMEs and small artisans to sell their products internationally will significantly enhance productivity and empower the country as a whole.”

Mr. Uma Shankar Patro, Senior VP – Finance, InfoVision

“InfoVision applauds the government’s commitment to advancing innovation and digital transformation with the allocation of 5% of the Universal Services Obligation Fund towards telecommunications technology R&D. The renaming of this fund to Digital Bharat Nidhi highlights the critical role of a digital-first strategy in driving economic growth.We are particularly encouraged by the introduction of the Jan Vishwas Bill 2.0 and the incentives for states to adopt Business Reforms Action Plans and embrace digitalization. These initiatives are set to significantly enhance the ease of doing business and will have a profound positive impact on the IT sector, further strengthening India’s digital economy. InfoVision fully supports these progressive measures and remains dedicated to contributing to and benefiting from these transformative efforts”

Mr Pinkesh Kotecha, MD & Chairman, Ishan Technologies

 “The Union Budget 2024-25 brings several promising developments for the IT and Telecom sector. With the country’s aim to become a digital-first nation, we welcome the government’s commitment to leveraging technology for improving productivity and bridging inequality over the past decade. We acknowledge the importance of digital infrastructure for inclusive growth that will help enhance opportunities beyond urban India.

The government’s commitment to enhancing data governance will help boosting data centers and undoubtedly support the rising data-intensive needs of our country. Moreover, the focus on increasing FDI will spur investments in technology innovations, furthering India’s growth as a tech hub. The slew of measures to boost employment for Youth, the establishment of working women hostels, and skilling loans with government guarantees, will drive more women and youth participation in the IT sector. These initiatives are crucial for building a skilled workforce ready to meet the demands of our evolving industry.

Having

we were hoping for an increased attention to two pressing issue – rise of AI and cybersecurity. These will be crucial aspects that will help India build a robust and secure digital infrastructure that can support India’s aspirations of becoming a USD 5 trillion economy. Overall, the Union Budget 2024-25 takes significant strides in the right direction, and we look forward to seeing these initiatives unfold. At Ishan Technologies, we remain committed to driving innovation and growth in line with the government’s vision for a digitally empowered and inclusive nation.”

What Experts Are Saying About Budget 2024

Anirudh A Damani -Managing Partner – Artha Venture Fund

“The removal of the angel tax will make it significantly easier for us to complete transactions faster and streamline the investment process. Previously, the requirement for income tax officers to understand and assess valuations led to unnecessary conflicts and delays, involving CAs, valuers, and tax officials. Valuation assessments were never meant to fall within the purview of income tax officers, and this change eliminates those complications. This simplification allows us to focus on our primary job—investing in and supporting innovative startups—without the burden of navigating through cumbersome tax regulations.

As a venture capital fund, we see the Indian Budget 2024’s tax reforms as a major boost for the VC, PE, and startup ecosystem. The increase in LTCG tax rate for financial assets to 12.50% and STCG to 20% may pose challenges for listed investments. Still, it’s a significant advantage for other financial products like startups and Alternative Investment Funds. The reduction in LTCG tax from 20% to 12.50% for these investments will result in substantial savings and increased IRR, fostering growth and innovation. While we await the detailed budget, this move is a long-awaited positive development that will make India an even more attractive destination for global investors and drive further growth in the venture capital and private equity sectors.”

Ratna Mehta – Managing Partner, Fundalogical Ventures

“Abolition of angel tax will provide a boost to the budding Indian startup ecosystem. It will encourage the flow of capital without tax leakages, especially relevant at a time when the funding crunch is impacting startup liquidity. It is key to establish India as an innovation hub and leader v. follower for new and breakthrough ideas. Focus of the budget is on sustainable growth with employment generation, of continuity and stability. The changes on the capital gains tax structure was unexpected, especially during a time when the fiscal position of the economy seems to be in check.

The logistics and supply chain is the lifeline of India’s growth story. The budget’s identification of infrastructure, manufacturing, and skilling as key areas for long-term development and subsequent allocation is a step in making India the logistics and manufacturing powerhouse of the world. As a fund focused on investing in supply chain and logistics, we are bullish on backing innovative entrepreneurs building the support ecosystem of India’s supply chain. The government’s move to set up E-commerce export hubs to be set up for enabling MSMEs to export their local products is a huge step in the direction of driving growth through innovation and building on new-age trends to drive MSME growth.

 Ashish Singhal, Co-founder, Lemonn and CoinSwitch

“We welcome the Union Budget 2024-25 as a pro-development budget bringing great news for startups. As a founder and angel investor, I’m thrilled that the Angel Tax has been abolished. This will significantly bolster the entrepreneurial ecosystem in India.

The emphasis on digital public infrastructure and the digitalization of the economy will greatly benefit tech startups like ours, which are focused on developing population-scale apps for Indians.

However, the securities markets face challenges with the increase in short-term capital gains tax from 15% to 20%, the rise in long-term capital gains tax from 10% to 12.5%, and the hike in STT on F&O. The immediate market reaction has been less than positive.

Regarding crypto, we had hoped the government would reduce taxation to align it with other asset classes. Unfortunately, this has not been addressed, representing a missed opportunity to support startups and investors in the crypto space.

We are still examining the finer details of the budget to fully understand its broader implications.”

Roland Landers, CEO, All India Gaming Federation

The All India Gaming Federation (AIGF) welcomes the focus on skilling in the 2024 Budget. There remains a significant skill gap in India’s gaming industry, and the increased emphasis on skilling initiatives is a promising step towards bridging this gap. Centrally sponsored schemes for skilling youth, women-focused programs, the establishment of industrial training institutions, and the provision of internships are all set to create a more skilled workforce. These initiatives will play a crucial role in helping India achieve its Vision India@2047.

 Mr. Tarun Singh, Managing Director of Highbrow Securities

The Union Budget has impacted the buoyant stock market, but its effect feels more symbolic than substantial. The fundamental impact on investors will be negligible, as any changes in capital gains taxation will soon be factored into future plans. The market sentiment will remain conducive for investors. However, the budget’s opportunistic flavour cannot be ignored.

On a brighter note, the budget’s incremental yet pivotal steps towards fostering an inclusive manufacturing and MSME landscape are commendable. The proposed initiative lays a sustainable and secure foundation for investors to explore emerging opportunities within this vital economic segment.

One of the key standout aspects of this budget is its respect for the existing consumption patterns. In the market realm, consumption is king, and any disturbance to this trend could ripple negatively across the economic spectrum. By preserving the status quo here, the budget has safeguarded the ongoing consumption story that fuels market growth. The Stock Markets, thus, can absorb minor setbacks and continue on a bullish path, backed by stable and robust consumer demand.

In my opinion, this budget is neither extravagant nor groundbreaking, but sometimes, not rocking the boat is an act of wisdom. This Union Budget may not sparkle with dramatic flair, but its understated elegance might very well be the unsung hero of our economic narrative this year.

I am anticipating a favourable year ahead, with markets expected to benefit from sustained consumption and emerging opportunities in the revitalised MSME and Manufacturing sectors

Abhay Parnerkar, CEO, Godrej Tyson Foods Ltd

 “The Union Budget’s emphasis on agricultural development, particularly the creation of large-scale vegetable production clusters, is a significant step forward in strengthening the country’s food value chain. This initiative aligns perfectly with our vision of a robust and sustainable food ecosystem. Additionally, the focus on natural farming is commendable and will undoubtedly contribute to the overall health and well-being of our nation with enriched farm to table experiences for consumers. We are optimistic about the potential of these initiatives to enhance food security, improve farmers’ livelihoods, and drive economic growth. I also firmly believe the growth in frozen food category will reduce wastage and nutrition loss in the food value chain”

Amar Nagaram, Founder and CEO of Virgio

 “The Finance Minister’s budget theme, with its emphasis on Employment, Skilling, and MSMEs, showcases a forward-thinking approach that is well-suited to the evolving needs of the Manufacturing and D2C industries. This budget, aligned with the Viksit Bharat vision during the Amrit Kaal, introduces several key incentives aimed at boosting job creation and enhancing workforce skills. The special focus on MSMEs will provide critical support for innovation and expansion, facilitating growth across various sectors. Importantly, the abolishment of the Angel Tax will play a pivotal role in supporting startups, easing fundraising, and encouraging more investment in innovative businesses. Overall, this growth-oriented budget represents a significant step toward creating a more inclusive and dynamic economy, fostering opportunities for businesses and entrepreneurs alike.”

Karthik Kondepudi, Partner at Herbochem

 “I appreciate the Government of India for supporting the MSME sector. It is a commendable step from the Government that now the MSMEs in the manufacturing sector will benefit to grow without any burden of collaterals, with the Credit Guarantee Scheme for MSMEs which will guarantee a cover up to ₹100 crore. The new way of assessing MSME credit using digital footprints for credit appraisal will be far better than conventional methods and increase credit availability for many businesses. Also, credit support during any stress period will ensure that operations of the MSMEs are kept continuous since this is an important factor influencing the survival and growth of businesses. Increasing the Mudra loans limit up to ₹20 lakh, strengthening the TReDS platform space and covering more clusters with SIDBI will fulfill the needed funds and working capital needs of the sector. The measures for establishing the food irradiation units and quality testing lab will strengthen the base of the food sector both in terms of quality and safety. In summary, this budget provides a solid ground for MSME to grow, compete internationally, and act as a major driver of the Indian economy.”

Gurjodhpal Singh, CEO, Tide in India

 “While the budget reflects a commendable focus on employment, skilling, and women, it is important to recognise that many of the policies will need a robust implementation. The increase in Mudra loan limits from ₹10 lakh to ₹20 lakh is a positive step for entrepreneurs, yet the on-ground implementation of the government’s policy directive needs stronger adoption at the grassroots level.

The government’s commitment to enhancing women’s participation in the workforce through initiatives like working women’s hostels and creches is a welcome development.

The allocation of over ₹3 lakh crore for schemes benefitting women and girls as well as setting up of women-specific skilling programmes to boost women’s participation in the workforce, signals a significant commitment to women-led development. However, there remains ample room for improvement in the execution and scope of these policies.

The introduction of a new assessment model for MSME credit is a step in the right direction, allowing for a more nuanced understanding of credit eligibility that extends beyond traditional metrics. Several fintechs and non-traditional financial institutions have been working on this front for a while now, so a collaboration between government and the fintech ecosystem to facilitate this would be a great post-budget action item.

In sum, while there are positive elements in this budget, there is still room for improvement in terms of the implementation and outcome of these initiatives. The journey toward comprehensive support for all sectors, particularly for women and MSMEs, is ongoing, and we look forward to seeing how these initiatives evolve in the future.”

Raj N, Founder at Zaggle

 “This budget is a holistic growth engine prioritizing education & skill development, women’s entrepreneurship, and the benefits and relief for the startup ecosystem. The elimination of the angel tax is a step in the right direction, as it eases investor concerns and promotes innovation. Moreover, the allocation of nearly ₹3 lakh crore towards initiatives that assist women and girls demonstrates the government’s commitment to women’s entrepreneurship.

In order to better correspond with industry demands, the budget for education and skill development will modernize 1,000 Industrial Training Institutes (ITIs) and offer internships to the youth at 500 top companies in the country. The government has prioritised the preparation of a workforce that is future ready. We also commend the government for announcing increased financial support to startups and MSMEs during periods of stress. Lastly, revised tax slabs and increased exemptions are welcome news for the salaried individuals, which will undoubtedly ease the financial strain on middle-class families, offering them much-needed relief.”

Akshay Mehrotra, Cofounder & CEO, Fibe, India’s leading fintech and consumer lending platform

 This year’s Budget has taken a forward-looking approach, aimed at building a self-reliant economy with MSMEs and startups as key drivers of Bharat’s next phase of growth. It is encouraging to see the Government’s focus on creating more jobs for the youth with enhanced focus on skill upgradation. This clubbed with the reduction in taxes for the salaried class signifies the strategy to support individuals in the middle-income group and younger professionals, leading to their professional development.

Furthermore, the efforts to promote sustainable energy solutions will give a boost to more ‘Make-in-India’ businesses and boost innovation in the clean energy space, creating more job opportunities for the youth. Besides, the focus on MSMEs is another step forward in driving the nation’s progress. The enhancement of Mudra loans to ₹ 20 lakh will fuel the growth of mid-level companies (INR 50 lakh to 2 crore revenue) and ensure they get enhanced opportunities. Lastly, the increase in capital gains tax will pose challenges for venture capitalists and investors, especially when exiting. On the other hand, the abolishment of angel tax will provide the much-needed boost to the startup ecosystem and help them thrive in India.”

Sachin Agrawal, Co-Founder & CEO at Bizongo

 “It’s a significant move that the government is putting special attention on MSMEs and the manufacturing sector through this budget. The newly announced credit guarantee scheme and term loans will enable MSMEs to purchase machinery and equipment without the need for collateral, which will further help the sector spur the industry’s growth. This initiative is expected to alleviate financial barriers for MSMEs, fostering increased productivity and technological advancement across the sector, which is essential for the country’s overall economic growth.”

Avinash Shekhar, CoFounder & CEO, Pi42

 This growth-oriented budget underscores the importance of upskilling and youth development as a foundation to Bharat’s progress. It is interesting to see that one crore youth will be skilled by India’s top companies within five years, and 20 lakh will receive specialized training over the same period. Learning new skills and tech is crucial for fostering innovation and driving the country’s growth. By equipping our youth with cutting-edge skills, we can ensure they are capable of developing and implementing new solutions that address contemporary challenges. Blockchain technology and crypto will play a pivotal role in empowering today’s youth, ensuring they are at the forefront of innovation and economic growth This not only enhances individual career prospects but also contributes to the nation’s competitive edge on the global stage thus contributing to a Vikshit Bharat.

Saransh Chaudhary, President, Global Critical Care, Venus Remedies Ltd and CEO, Venus Medicine Research Centre

The Central government’s decision to exempt three more cancer medicines from customs duty is a commendable step towards making cancer drugs more affordable and incentivising manufacturers by reducing their costs. We also welcome the Finance Minister’s announcement to include manufacturing & services and innovation, research & development among the nine priority areas identified by the government to ensure fast-paced growth in line with its vision of “Viksit Bharat”. Pharma manufacturing being India’s strength, we expect the government to build on it with its incentive-based approach. A renewed focus on innovation and R&D, on the other hand, will transform India into a value-driven economy, unleashing its immense potential wealth creation potential.

Mr. Sanjay Dighe, CEO & Director of Krystal Integrated Service Ltd

 The Union Budget 2024 presented by the Finance Minister demonstrates a comprehensive and forward-thinking approach, significantly impacting various sectors.

The government’s partnership with State Governments and Multilateral Development Banks to promote water supply, sewage treatment, and solid waste management projects in 100 large cities will fuel the demand for facility management services. These projects will require specialized skills and expertise in managing complex systems and infrastructure, aligning perfectly with the goals of skilling and employment outlined in the budget.

Moreover, the focus on industrial development, particularly the establishment of an industrial node in Gaya as part of the Amritsar-Kolkata industrial corridor, will drive the need for comprehensive facility management solutions to support the burgeoning industrial activities. This will not only involve managing and maintaining industrial facilities but also ensuring compliance with environmental and safety standards.

We are particularly optimistic about the focus on creating employment opportunities. The one-time wage incentive for first-time employees through DBT and the internship program launching in 500 companies for one crore youth over five years are commendable initiatives. Additionally, clarity on tax exemptions for services provided to government entities would be highly beneficial.

Overall, the strategic priorities set forth in the Union Budget will create a robust demand for facility management services, as the industry will play a critical role in supporting the growth and sustainability of India’s economic infrastructure.

Mr. Rohit Mali, Director, Firefly Fire Pumps

 “I am thrilled with the Budget 2024-2025 announcements that demonstrate a visionary commitment to MSMEs and labor-intensive manufacturing, essential pillars for India’s economic growth. The comprehensive package of financial, regulatory, and technological support signals a transformative era for MSMEs, enabling them to scale operations and compete globally.

Moreover, the Credit Guarantee Scheme for MSMEs in manufacturing, leveraging digital footprints for credit assessment, and measures to support MSMEs during stress periods are game changers that will foster innovation, expand access to credit, and sustain entrepreneurial resilience. Enhancements in Mudra Loans, mandatory onboarding on TReDS, and SIDBI branch establishments in MSME clusters will unlock working capital, improve credit access, and extend critical support nationwide.

In essence, this budget lays down a robust roadmap for MSMEs, propelling us towards the vision of ‘Viksit Bharat’. We at Firefly Fire Pumps are excited to align our efforts with these initiatives, fostering an environment where MSMEs can thrive and contribute significantly to India’s economic renaissance.”

Mr. Abheek Barua, Chief Economist and Executive Vice President, HDFC Bank

 The central focus of this budget has been on employment and associated issues like skill formation. The government’s efforts to reap India’s demographic dividend is visible in its push towards labour intensive production, its skilling initiative, incentivising formal job creation and increasing participation of women in the workforce. The budget estimate that these measures will help create 8 million jobs per year — which is line with the employment requirement that has been set out in the economic survey.

The change in income tax slabs along with the direct benefit transfer to first time workers, is likely to spur consumption, particularly for small ticket items, by increasing disposable incomes. The budget’s policy mix – including continued capex, job creation, support for manufacturing, agriculture, and rural development – is likely to be positive for India’s potential growth.

The government made no compromise on its capex plans despite the increased allocation to some of its allies. The commitment towards fiscal consolidation with a reduction in the fiscal deficit to 4.9% of GDP in FY25 is a positive for medium-term debt sustainability.

Although markets have been disappointed with the increase in the capital gains tax, this is line with the communication by different branches of the government and regulators to be cautious and prevent any excess build-up of risk in the system.

Dr. Silpi Sahoo, Chairperson, SAI International Education Group

 “The Union Budget 2024–25 shows a strong commitment to youth empowerment, acknowledging that it is essential to the success of our country. A 30% increase in funding to Rs 1.48 lakh crores has been allocated for education, employment, and skill development; this is a necessary and promising initiative. Students from low-income backgrounds benefitting from the provision of financial support for loans up to ₹10 lakh for higher education is a welcome move by the Government. Internship chances at 500 leading companies for 1 crore students during a 5-year period coupled with an internship allowance of ₹5,000 per month and a one-time aid of ₹6,000 will offer invaluable exposure and professional experience to the youth of India. Furthermore, the skilling project, which is a partnership between business and state governments, intends to improve 1,000 Industrial Training Institutes to train 20 lakh kids over the course of five years is a notable development in the Union Budget. I am sure that many students will benefit from the redesigned Model Skill Loan Scheme, which would provide loans up to ₹7.5 lakh backed by a government-sponsored fund. This will help the youth to be more professionally trained. Also, The Eastern region’s ‘Purbodaya’ plan and the emphasis on digitization and technology adoption prioritizing infrastructure, economic prospects, and human resource development will be a key to turn the region into a major player in the global economy. If these policies are implemented effectively, Bharat is on the path to attaining global leadership.”

Mr.Bantwal Ramesh Baliga, Group CEO of Acquaviva.

 The scheme introduced in the budget to incentivize the hiring of first-time employees is a game-changer for the manufacturing sector. By benefiting 3 million youths and their employers through direct incentives based on EPA contributions over four years, the government is not only encouraging job creation but also nurturing a skilled workforce. This initiative reflects the Modi-led NDA Government’s commitment to boosting economic growth and employment opportunities.
The budget’s announcement to prioritise the participation of women in the workforce is welcomed in sectors like hospitality and retail. This initiative aims to diversify the workforce and recognizes the contributions that women can bring to these sectors. The budget is paving the way for greater gender equality and economic empowerment within these industries.
Furthermore, the announcement to promote water supply, sewage treatment, and solid waste management projects for 100 large cities reflects an approach to infrastructure development. These initiatives will not only enhance urban living standards but also increase demand across various industries involved in construction, engineering, and environmental technologies.
Overall, the budget’s focus on incentivizing employment, supporting women’s participation in key sectors, and advancing urban infrastructure projects is set to catalyse industrial growth, create new job opportunities, and drive sustainable economic development. This forward-looking strategy positions India for long-term resilience and prosperity.

 Dr. Ajai Chowdhry, Co-Founder HCL, Founder & Chairman, EPIC Foundation and Chairman-Mission Governing Board, National Quantum Mission

 “The new budget is a game-changer! Significant impetus has been provided by the government to further strengthen the startup ecosystem. Happy to see support for Space Tech and a generous ₹1 Lakh Crore allocation for R&D in the private sector. The support for small nuclear reactors is commendable; moreover, the abolishing of the Angel Tax will go a long way in bringing greater investments, making it a big win for startups. Similarly, there’s great support for MSMEs and an impressive job-linked incentive scheme. The focus on Ease of Doing Business and the introduction of plug-and-play manufacturing infrastructure under PPP, along with worker dormitories, is a well-rounded approach to foster growth and innovation.”

 Dr V Veerappan, Chairman, IESA

 The Union Budget 2024 appears promising for the government’s commitment to making India a global powerhouse for electronics production. The funding for product development and the creation of an ecosystem for electronic components is an important step and will play a catalyst in product creation and building a component ecosystem. The budget allocation of Rs 1 lakh crore to support commercial private-sector research will serve as a critical impetus for the sustained momentum of the Electronics and Semiconductors sector, as well as for R&D, innovation, and technological advancement. We are in favor of the government’s prospective incentives for job growth in the industrial sector, as well as the direct benefit transfer plans for new employees. These measures will not only increase employment but also cultivate a culture of quality and innovation throughout the industry. On the FLIP side, India should be cautious on FDI from China in this strategically important sector.

Ashok Chandak, President, IESA

 IESA welcomes the budget’s strong focus on manufacturing, job creation, MSME support, women’s employment and rationalisation of customs duty. The initiatives mentioned are expected to act as catalysts for creating a new workforce in the thriving semiconductor and electronics sector which is facing an acute shortage of relevant skills. Additionally, allocating 1 lakh crore for research, removal of Angel tax, and support for prototypes will bolster local R&D, product innovation, and the startup ecosystem. However, caution is warranted regarding China’s FDI in this strategically vital sector. Any move to relax FDI norms for China in electronics and semiconductors could potentially stifle the emerging electronics components industry and have long-term implications for the telecom, defence, and aerospace sectors which are crucial for India’s security. IESA is working with MeitY on the new National Policy on Electronics and hope some of the measures for product development in the Electronics and Semiconductors verticals , Increased support toward enhancing local value addition and PLI for electronic components would get covered.

Dilip Gangaramani, Founder Director & CEO of Target Publications Pvt. Ltd.

He expressed appreciation for the recently announced interim budget. He said, “The government’s initiative to provide financial support for higher education loans up to Rs 10 lakh is commendable. This move will enhance accessibility to quality education. The allocation of Rs 2 lakh crore for employment and skilling initiatives is also a positive step towards addressing youth unemployment. Interestingly, the proposed comprehensive internship program for one crore youth is a commendable initiative, emphasizing its potential to bridge the gap between academia and industry. Overall, the budget’s focus on education, employment, and skill development aligns with the nation’s developmental goals and is a welcome step forward. These measures, if implemented effectively, can significantly boost India’s human capital development and contribute to a more skilled and employable workforce.”

Expert Reviews of Budget 2024

Samir Jasuja, Founder and CEO of PropEquity

While the Budget sidesteps the long-standing demands of the real estate sector, the focus on job creation, skilling and employment-linked incentives, boost to infrastructure, urban redevelopment and relaxation in income tax slabs are the big reforms that will indirectly provide a fillip to the real estate sector. The call to State Governments to reduce Stamp Duty and initiate land related reforms that includes urban planning, usage, building bylaws, and GIS mapping of land records are steps in the right direction that will not just help the sector but also be a strong growth propeller for the Indian economy.

Arijeet Talapatra, CEO, Transsion India.

Transsion India welcomes the Ministry of Finance’s decision to reduce the basic customs duty from 20% to 15% on mobile phones, mobile PCBA, and chargers. This policy change will significantly benefit both manufacturers and consumers, fostering a more competitive smartphone market and strengthen our position in the global market. This move will undoubtedly bolster the industry’s growth making smartphones more affordable and we remain committed to the ‘Make-in-India’ initiative to bring the best-in-class smartphones to the ever-evolving Indian market.

Hardika Shah, Founder & CEO, Kinara Capital –

 Focused on Women 

The Union Budget has made significant strides in promoting women’s economic participation. To this end, a number of initiatives were announced, supported by the allocation of more than INR 3 lakh crore for schemes benefitting women and girls. Initiatives like setting up working women’s hostels in collaboration with industries and the establishment of creches, organizing women-specific skilling programmes, and promoting market access for women SHGs are commendable steps towards addressing challenges faced by women. Another move that will have a positive impact on women’s participation in the workforce is the abolishment of the Angel Tax. Even today in India out of the 8,000 startups founded by women, nearly 75%, of which some are generating revenues exceeding $30,000 are still unfunded (Tracxn Report). This move will encourage greater participation of investors in the startup ecosystem including women-owned startups. The improvement in the funding ecosystem and the support offered through the different women-focused initiatives is also likely to have a ripple effect on job creation for women. According to Kinara Capital’s MSME Insights, which analyzed data from 44,821 MSMEs, women-owned enterprises create 11% more jobs for women than men-owned ones, and we can expect to see similar trends in the startup ecosystem. This second-level impact will add further impetus to the government’s intention of helping more women enter the formal workforce.

Focused on GST 

The implementation of the GST regime has proved to be beneficial for MSMEs, reducing the compliance burden and logistics costs. As stated in the 2024 Union Budget, the government remains committed to further simplifying and rationalizing the tax structure, with the goal of enhancing its benefits. The original vision of GST, encapsulated in the idea of One Nation, One Tax, is gradually being realized. As the GST continues to evolve, it will encourage more MSMEs to formalize, thereby increasing their creditworthiness. This, in turn, will facilitate access to formal credit, as well as government benefits and subsidies, supporting their growth and contribution to the broader economy.

Focused on FDI 

Today’s Union Budget announcement about the simplification of Foreign Direct Investment (FDI) rules and regulations to facilitate inflows is a particularly positive move for India’s growing economy. India experienced nearly USD $600 billion in FDI inflow from 2014-2023, nearly 2x the inflow compared to the previous decade. By easing the process for FDIs, the government is taking a significant step towards attracting more foreign capital, which is essential for boosting economic growth. Further, a boost to foreign investors will be the corporate tax reduction from 40% to 35% while the abolishment of Angel Tax for all classes of investors is a game changer. Removing this tax barrier will ratchet up the foreign investor interest just as India is gunning to become the world’s 3rd-largest in the next couple of years.

“The Union Budget 2024-25 presents a balanced approach to stimulating economic growth while maintaining fiscal prudence. The government’s commitment to reducing the fiscal deficit to 4.9% of GDP in 2024-25, down from 5.8% in the current year, signals a strong focus on macroeconomic stability. This fiscal consolidation path, coupled with the projected 8.2% GDP growth rate, creates a favourable environment for investments and economic expansion.

Arun Poddar, CEO, Choice International Ltd.

 The budget’s tax proposals are designed to boost disposable income and encourage savings. The increase in the standard deduction for salaried employees to ₹75,000 and the rationalization of capital gains tax, with a 12.5% rate on long-term gains for all assets, provide clarity and benefits for individual investors. For businesses, the abolition of angel tax for all classes of investors and the reduction of corporate tax for foreign companies to 35% are significant steps to attract investment. These measures, combined with the ₹11,11,111 crore allocation for infrastructure development, create a robust framework for economic growth and investment opportunities across sectors”-Arun Poddar, CEO, Choice International Ltd.

Mr Prakash Chhabria, Executive Chairman, Finolex Industries Ltd

 “The Union Budget 2024 presented by Finance Minister Nirmala Sitharaman sets a clear roadmap for India’s inclusive growth. The government’s focus on manufacturing, agriculture, and infrastructure development is commendable. The credit guarantee scheme for MSMEs and the establishment of e-commerce export hubs will significantly boost our industrial capabilities. For the agricultural sector, initiatives like digital crop surveys and promotion of natural farming align well with sustainable practices.

The budget’s emphasis on infrastructure, including the PM Awas Yojana’s ambitious housing targets and urban development focus, presents great opportunities for the pipe and fittings industry. We applaud the government’s commitment to water management, promoting water supply, sewage treatment, and solid waste management projects in 100 large cities. This initiative, along with plans for treated water reuse, demonstrates a holistic approach to water resource management. The measures for empowering women and youth, combined with substantial rural development allocation, promise inclusive growth. We look forward to contributing to these progressive initiatives as we work collectively towards building a more prosperous India.”

Mr. Saiyam Mehra, Chairman, All India Gem & Jewellery Domestic Council

 “The reduction in the basic customs duty on gold and silver to 6% and on platinum to 6.4% is a commendable move by the government. This was a long-standing demand from the All India Gems & Jewellery Domestic Council, which represents the entire gems and jewellery industry. The customs duty reduction will benefit domestic jewellery manufacturers, especially small and medium enterprises, encouraging them to transition gradually to the formal channel. Additionally, the Finance Minister has also increased the scope of working capital loans to SMEs and MSMEs, which will help these units expand their businesses in the future. The extension of the direct benefit transfer scheme to the manufacturing sector, with separate salary and Employees’ Provident Fund transfers directly to the accounts of employers and employees, is a wonderful move. This will accelerate employment generation in India. Overall, this budget has focused on 9 key priorities of Viksit Bharat and we are proud to witness it.”

Mr. Rajesh Rokde, Vice Chairman, All India Gem & Jewellery Domestic Council

 We admire Finance Minister Nirmala Sitharaman ji’s Union Budget presented today, which stands out in several ways. Notably, after persistent efforts from GJC, the government has reduced customs duties on gold and silver to 6 % and on platinum to 6.4%. This move will provide significant relief to consumers who have been investing in alternative assets, encouraging them to return to gold investments. We are confident that household investment and savings in India will see an increase in the coming days.

Additionally, the expansion of working capital loans for SMEs and MSMEs in the jewelry sector will provide a much-needed boost. The increase in the personal income tax exemption limit will also benefit consumers and promote household savings. Overall, the Union Budget 2024 is commendable.

Mr. Pankaj Kalra, CEO, EOGEPL 

 “The Union Budget’s emphasis on energy transition and sustainability is commendable. It highlights the importance of balancing economic growth with environmental sustainability through appropriate energy transition pathways. We remain confident about India’s energy future and eager to collaborate with the government on policies that ensure energy security, affordability, and accessibility, thereby supporting our Nation’s growth aspirations.”

Lt. Gen. AK Bhatt (Retd.), Director General, Indian Space Association (ISpA)

 “The Union budget’s vision to grow India’s space economy by fivefold in the next decade demonstrates the government’s strong commitment to this sector. We previously advocated for increased financial incentives to support the burgeoning space startups in the country. The announcement of a ₹1000 crore VC fund is a step forward, addressing the funding challenges faced by these nascent ventures in this capital-intensive domain. Additionally, the proposal for establishment of 12 industrial parks across India we hope will include the space sector as this will provide a substantial boost to the space and satellite manufacturing industry, which has long called for the creation of space parks. These measures are pivotal for the growth and development of India’s space ecosystem.”

Agendra Kumar, Managing Director, Esri India

 “It was encouraging to see the focus given in the budget on Infrastructure, Energy sector and urban development. GIS plays a very important role in these sectors. The Finance Minister spoke about improving productivity in the agriculture sector and digital crop survey in 400 districts. GIS can be an important tool in these as well. The focus on rural land records, GIS mapping for urban land records, and the use of GIS for property tax collection also offer opportunities for the GIS industry. These will improve the income of cities which can be used to improve the quality of infrastructure in cities and to provide better living conditions to the citizens. The investment of more than Rs 11 lakh crores in infrastructure development is also a positive news for the GIS industry.”

A. Gururaj, Managing Director, Optiemus Electronics Ltd.

 “We welcome the initiatives announced in the Union Budget. The significant emphasis on manufacturing is heart warming and much needed for the growth of the economy. With the substantial expansion of the electronics manufacturing industry, the demand for a skilled workforce has become paramount. The announcement of various skilling initiatives and the scheme to incentivize additional employment in the manufacturing sector, particularly for first-time employees, will provide essential support to industries reliant on skilled workforce, especially in electronics. Furthermore, the proposal to reduce the Basic Customs Duty on mobile phones, mobile PCBA, and mobile chargers to 15% is a positive step. The measures laid out to support the MSME industries in particularly welcome to create a much needed supplier base for electronics within India. These measures collectively send out a strong message on the manufacturing sector and related eco system in India.”

Joyshree Das Verma, National President, FICCI FLO

 “This year’s budget marks a significant stride towards enhancing women‘s role in India’s economic development. The allocation of more than Rs 3 lakh crores for women-specific schemes and skilling programs underscore the government’s commitment to women-led development and enhancing economic inclusivity. The government is creating a supportive environment for women professionals through market access to women-led Self Help Groups and the establishment of working women’s hostels and creches in partnership with businesses. Furthermore, the reduction in duties for properties purchased by women and the introduction of the NPS Vatsalya scheme, which promotes long-term savings for minors, exemplify the government’s commitment to an inclusive financial landscape for women and their families. Schemes like PM Vishwakarma, PM SVANidhi, Mudra Yojana and Lakhpati Didi are a testament to the transformative impact of targeted financial support for women. FICCI FLO stands poised to collaborate closely with the government to ensure these initiatives translate into tangible benefits for women entrepreneurs. Together, we can accelerate the momentum towards gender equality and inclusive growth, enabling women entrepreneurs to thrive and contribute significantly to the nation’s economy”.

Kavitha Ramachandragowda, Co-Founder and Executive Director, Routematic

 “The Union Budget 2024-25 serves as a significant stride towards women’s empowerment, earmarking over ₹3 lakh crore for initiatives benefiting women and girls. By facilitating higher participation of women in the workforce through the establishment of working women hostels and creches in collaboration with industry, the government is creating supportive environments for women professionals. The government’s focus on higher education, women centric skilling, employability, and enhanced schemes for women entrepreneurs along with the abolition of the angel tax is commendable and will undoubtedly boost the startup ecosystem in India and representation of women in the Indian workforce.”

Neha Bagaria, Founder & CEO, Herkey

 “As a woman entrepreneur, I am deeply encouraged by the Union Budget 2024-25’s commitment to fostering women’s participation in the workforce. The dedicated focus on creating hostels and women-specific skilling programs reflects a significant step towards gender parity in business. Moreover, the new credit guarantee schemes for MSMEs, which remove the burden of collateral requirements, will empower countless women-led enterprises to grow and innovate. This budget not only addresses immediate economic needs but also lays a strong foundation for a more inclusive and equitable future. It is heartening to see such a comprehensive approach to unlocking the potential of countless women across India.”

Mr. Sumit Kumar, Chief Strategy Officer at TeamLease Degree Apprenticeship.

 “The recent budget announcement, featuring a transformative ₹2 lakh crore initiative, sets an ambitious precedent for reshaping employment and skilling opportunities in India. With a targeted outreach to 4.1 crore youth over five years, this initiative is poised to make a significant impact by seamlessly integrating education, skill development, and employment. The budget’s ‘Employment Linked Incentive’ schemes offer substantial support to first-time employees and their employers. Up to ₹15,000 in direct benefits will facilitate the transition of new entrants into the formal workforce, while additional incentives for job creation in the manufacturing sector and support for employers across various industries aim to promote widespread job creation and bolster economic activity. This forward-thinking approach aligns with the vision of a ‘Viksit Bharat,’ fostering an environment where every young Indian can contribute meaningfully to the nation’s growth and prosperity.

Furthermore, the budget underscores a strong commitment to increasing female participation in the workforce. It includes the establishment of working women’s hostels, creches, and women-specific skilling programs, along with support for women SHG enterprises. An impressive ₹3 lakh crore allocation for schemes benefiting women and girls highlights the government’s dedication to women-led development. The upgraded skilling program will enhance 1,000 Industrial Training Institutes and align their courses with industry needs, fostering skill development tailored to market demands. Revised Model Skill Loans and financial support for higher education through e-vouchers will provide crucial resources for career advancement. The comprehensive internship scheme, offering real-world experience to 1 crore youth and supported by CSR funding, is a welcome addition that bridges the gap between education and practical experience. Although these measures are commendable, simplifying apprenticeships could have made a significant impact in skilling the youth. Integrating apprenticeships could further strengthen the link between education and employment by offering structured, hands-on training opportunities. Together, these initiatives are set to address skill gaps, boost youth employability, and cultivate a more skilled and inclusive workforce, driving significant progress in India’s labor market and economic development.”

Ms Gunjan Agarwal, Co-founder of XYST

 “Abolishing Angel Tax will have a long-term impact on startup founders. This will not only motivate angel investors but also help to encourage entrepreneurial spirit in the Indian business domain. Additionally, the job generation push, coupled with the government’s financial assistance will help startups acquire more talented professionals, leading to cumulative growth in the long term. This Union Budget is full of opportunities for Indian startups pushing to become the next Unicorn, and governmental assistance is bolstering it to ensure success and growth.

Dr. Ashish Agarwal, Co-Founder & CTO, Weather Risk Management Services (WRMS)

 “Budget 2024-2025 marks a significant milestone towards a thriving and innovative agritech future, with a strong emphasis on climate resilience and adaptation. The introduction of 109 high-yielding, climate-resilient crop varieties and the comprehensive review of agricultural research for climate-smart seeds are substantial advancements for the sector.

The budget’s allocation of Rs 2.66 lakh crore for rural development and the promotion of digital infrastructure aligns well with our objectives. The focus on natural farming and the goal to engage one crore farmers in the next two years further supports sustainable agriculture.

Additionally, the budget underscores the importance of collaboration among the government, private sector, and research institutions to drive innovation and scalable solutions. To fully harness this progress, increased investments in IoT, AI, and data analytics are crucial. These technologies will enhance climate risk assessment and response, providing real-time data and predictive insights to improve climate adaptation strategies and ensure more effective interventions.

We are optimistic that these initiatives will drive economic growth and promote sustainable development.”

Nikunj Agarwal – Head – Fund Raise, Finance & Lending Alliances (Propelld)

 The Rs 1.48 lakh crore announced in Budget 2024 for education and employment and skill enhancement is welcoming news. The financial support for loans upto Rs 10 lakh for students aiming for higher education in domestic institutions. Further, it was announced that a guarantee from a government promoted Fund will be available Loans up to ₹7.5 lakh amount.
Such initiatives in the education and skilling financing sectors are widely praised and can be seen as crucial steps towards fostering the potential of the youth, who are integral to the future growth of our nation. These measures are expected play a pivotal role in advancing our country’s socio-economic development as a whole.

Mr. Sanjeev Srivastva, Chairman & Founder of Assotech Group, a leading real estate company.

 “The 2024 Union Budget marks a pivotal moment for the real estate sector, and as the Chairman & Founder of Assotech Group, I am both encouraged and excited by the government’s strategic initiatives. The substantial allocation of Rs 50,000 crore towards infrastructure development is poised to invigorate our industry, enhancing both urban and rural landscapes.

Moreover, the introduction of PM AWAS Yojana Urban 2.0 with a significant investment of Rs 10 lakh crore into urban housing underscores the government’s commitment to addressing the country’s urban housing needs. This initiative will provide a substantial boost to the real estate market, fostering growth and creating new opportunities for developers and investors alike.

The revised income tax slabs, including potential savings of up to Rs 17,500 per year for taxpayers, coupled with an increased standard deduction to Rs 75,000, are expected to enhance consumer purchasing power. This is likely to translate into increased demand for residential and commercial properties, further stimulating the real estate sector.

Additionally, with the focus on infrastructure development and the burgeoning real estate boom in states like Orissa, which is experiencing rapid growth and urbanization, we at Assotech Group are poised to leverage these developments. The enhanced financial environment and supportive government policies will enable us to continue driving innovation and delivering exceptional value in real estate.

In essence, these budgetary measures collectively represent a transformative opportunity for the real estate sector, aligning perfectly with our vision of creating impactful and sustainable real estate solutions.”

Kaushik Das, Founder and CEO of AAO NXT, East India’s premier OTT platform

 “The 2024 Union Budget presents a forward-thinking approach, especially in the realms of technology, regional development, and digital innovation. The reduction of Basic Customs Duty on mobile phones and related components to 15% is a significant step that will lower costs and enhance accessibility to digital devices, which is crucial for platforms like AAO NXT. Additionally, the government’s commitment to supporting the development of regional storytelling and the tourism sector, including backing the development of Nalanda in Bihar and extending support to Odisha’s tourism, aligns perfectly with our vision to showcase Odisha’s rich cultural heritage through digital content.

Moreover, the initiative to set up a ₹1,000 crore venture capital fund for space economy highlights the government’s dedication to fostering innovation and technological advancement. This, coupled with the enhanced focus on employment-linked skilling programs and the emphasis on energy security, will undoubtedly create a conducive environment for startups and established companies alike. These measures will not only boost the regional OTT landscape but also propel us towards our goal of making AAO NXT a global platform for localized content.

Overall, the budget’s focus on promoting digital infrastructure, regional development, and innovation reflects a robust framework for sustainable growth and positions India as a leader in the digital entertainment space.”

 Mr. Apurv Modi, Managing Director & Co-Founder of ATechnos Group

 “The Union Budget 2024 focuses on nine key priorities and demonstrates a comprehensive approach to India’s growth and development. I am excited about the emphasis on Innovation, R&D, and Next Generation reforms. These priorities align perfectly with the digital revolution that’s reshaping our economy.
The focus on Manufacturing and Services, coupled with Urban Development and Infrastructure, creates fertile ground for technological advancements. We see immense potential for digital solutions to drive efficiency and innovation across these sectors.

Also, the budget introduces a new mechanism to facilitate the continuation of bank credit to MSMEs during their stress period. This is a crucial step in ensuring that MSMEs, which form the backbone of our economy, receive the necessary financial support to navigate challenging times. The introduction of a new MSME guarantee plan to enable loans up to ₹100 crore further underscores the government’s commitment to supporting small businesses. The increase in the limit of Mudra loans from ₹10 lakh to ₹20 lakh is another significant measure that will empower small businesses and entrepreneurs, enabling them to expand their operations and contribute to economic growth.

In the taxation domain, the removal of the Angel Tax on all classes of assets is a welcome move, promoting a more favorable investment climate. The standard deduction limit has been increased to ₹75,000 from ₹50,000, providing much-needed relief to taxpayers. Additionally, the lowest slab in the new tax regime has been increased to ₹3 lakh from ₹2.5 lakh.

Moreover, the government’s decision to allocate ₹2 lakh crore for job creation over the next five years is a significant step towards addressing unemployment and fostering economic stability.

The synergy between these priorities and the digital realm will be key. Whether leveraging AI for better urban planning, using IoT for energy management, or developing innovative solutions for employment generation, the digital sector stands ready to contribute significantly to realizing this vision.”

 Sohail Mirchandani, Chief Operating Officer & Co-Founder of Ekostay, a homestay venture:

“The 2024 Union Budget brings transformative changes that hold great promise for the hospitality and homestay sector. As a co-founder of EKOSTAY, I am particularly excited about the implications of these developments for our business.

The government’s substantial allocation of Rs 50,000 crore towards infrastructure development, including a major boost to urban infrastructure through the PM AWAS Yojana Urban 2.0, will significantly enhance connectivity and accessibility. This is especially beneficial for the homestay industry, as improved infrastructure will make our unique, personalized accommodation options more accessible to travelers.

Furthermore, the emphasis on the ‘Make in India’ initiative and the Production Linked Incentive (PLI) scheme will likely foster economic growth and improve consumer spending power, which could lead to increased demand for experiential stays like ours.

Overall, these budgetary measures are set to support and elevate the homestay sector, providing EKOSTAY with exciting opportunities to expand and offer even more exceptional experiences to our guests.”

Expert Opinions on Budget 2024

Following the release of Budget 2024, industry experts are now weighing in with their evaluations and forecasts. Discover how these thought leaders interpret the budget’s significance for our economic future.

Ankur Mittal, Cofounder, Inflection Point Ventures

 While we have to still read the complete change on the abolishment of angel tax but on the face of it, this action has the ability to bring lot of regulatory clarity which generally is appreciated by the investor communities across the world. This should help founders looking to raise capital both in domestic and international markets.

Subramaniam Thiruppathi, Director of Sales for India and Sub-Continent, Zebra Technologies

 “In the era of next-generation technologies such as AI, ML, robotics, and automation, the initiatives announced in the Union Budget 2024-25 are pivotal for preparing India’s talent pool to drive our economy towards the USD 5 trillion goal. With an allocation of ₹2 lakh crore for employment-linked skilling, incentives for creating 4 crore jobs in the manufacturing sector, and the introduction of the Model Skill Loan Scheme, our youth will have unprecedented opportunities for growth.

Additionally, the provision of internships and direct benefit transfers will ensure our workforce is skilled and financially supported. These comprehensive measures will build a robust, future-ready talent pool capable of spearheading India’s technological and economic advancement.“

Mr. Shujaul Rehman, CEO, Garware Technical Fibres Limited

 “As the Finance Minister rightly emphasizes, the transformation of agricultural research towards raising productivity and developing climate-resilient varieties is crucial for the future of our farming sector. At Garware Technical Fibres, we are committed to supporting this vision by providing innovative and sustainable solutions that enhance agricultural efficiency and resilience.”

Pulkit Arora, Director, CYK Hospitalities

 “Finance Minister Nirmala Sitharaman’s budget is a game changer for the tourism sector. India aims to establish itself as a world-class tourist destination, focusing on places that are of immense spiritual importance, which includes Vishnupath temple at Gaya, and Mahabodhi temple in Bodhgaya, and comprehensive development of the Kashi Vishwanath corridor, and the Brahmkunda of Rajgir and Nalanda, in Bihar.

The Indian Food and Beverage industry rises significantly each year. As India aims to promote world-class tourism experience, this would also benefit the F&B industry. The inflow of tourists – international or domestic would like experience the taste of the local food, which will eventually bring up the demand for local food vendors as well as reputed food brands. This would significantly result in economic and social growth. Also, there will be an increase in local employment opportunities to run successful food businesses and manage tourists in these cities.”

Vaibhav Shah, Fund Manager, Torus ORO PMS.

 “Overall budget touched upon various important aspects like rural development, employment, women empowerment, fiscal consolidation, capex continuity etc. Fiscal consolidation path is a welcome move which was revised lower than interim budget. Initiatives in rationalization of tax structure is a step in the right direction. Inspite of coalition overhang, capital expenditure was maintained at the same level. So overall the narrative was clear on the growth aspect and the efforts will be made towards transforming the economy. Hike in capital gain tax took markets by surprise adding nervousness around the rate regime”

Mr. Harsh Shah, CEO, IndiGrid

 “We welcome this significant change in rationalisation of the long term capital gain taxation for Business trusts in this budget. InvITs/REITs getting taxed at parity with equities will enhance their attractiveness for investors and will strengthen their position as platforms providing superior risk adjusted returns. We believe that this will also enable InvITs and REITs to become part of stock exchange indices, which will add significant liquidity and momentum.”

Mr. Ravi Mittal, CEO & Founder of QuackQuack

Mr Mittal feels abolishing Angel Tax will have favourable long-term implications for the Indian startup ecosystem, “This 2024-25 Union Budget is highly influential to ensure long-term success in the startup ecosystem. By doing away with the Angel Tax, startups have been enabled to encourage a renewed business approach and enhance valuation. This will enable startups to undertake expansion initiatives without concerns about taxation, while also attracting increased funding from angel investors. Furthermore, the centre’s emphasis on upskilling will provide a viable pipeline of trained professionals for startups, ensuring long-term growth and scalability

Vidita Kochar, Co founder at Jewelbox

 The recent reduction of customs duty on gold to 6% marks a significant advancement for the jewellery industry, enhancing its competitiveness and making it more accessible to consumers. This move aligns seamlessly with our commitment to providing high-quality, affordable lab diamond jewellery to our customers.

Additionally, the abolition of the angel tax is a laudable initiative that will invigorate India’s startup ecosystem. This change is poised to spur innovation, attract global investors, and provide a substantial boost to startups.

We are confident that these measures will significantly contribute to the growth and dynamism of both the jewellery sector and the broader startup community in India.

Sardar Taranjit Singh, Managing Director, JIS Group

 “The Union Budget 2024’s emphasis on education and skill development is a commendable step towards making quality education more accessible and affordable. The significant allocation of Rs 1.48 lakh crore for education and the plan to skill 20 lakh youth in five years will greatly benefit students and the broader education sector. The introduction of financial support for higher education and e-voucher systems will empower students to pursue their desired careers, while the internship opportunities will enhance youth skills and motivation. This comprehensive approach will undoubtedly garner a more skilled and employable workforce.”

Budget 2024 Reactions on MSME by Experts

The announcement of Budget 2024 has brought a wave of reactions from experts regarding its impact on the Micro, Small, and Medium Enterprises (MSME) sector. In this selection of expert quotes, we delve into their evaluations of the budget’s potential to drive growth, address challenges, and shape the future of MSMEs in the coming year.

 Delphin Varghese – Co-founder and Chief Revenue Officer, AdCounty Media

 The seriousness of the government in facilitating credit access to aggrieved MSMEs stands as a critical factor for survival and growth of the sector. While MSMEs are the backbone of the economy—contributing 30 per cent to GDP and 48 per cent to exports—it faces an estimated credit gap of ₹20-25 trillion by IFC estimates. There could be a gap bridged with the proposed multiple mechanisms; for example, credit growth to MSMEs was 11% year over year in FY2021. Better access to credit would have implications for massive job creation and economic stability if taken from over 110 million working in the MSME sector. This is opportune; 67% of MSMEs surveyed said that the pandemic hit them adversely. By ensuring credit flow, it would revive a sector that is important for achieving India’s goal of a $5 trillion economy.

 Atif Shamsi, CEO & Founder at OuchCart

 It is an integral part of ease of doing business reforms, and subnational deregulation aimed at reducing the compliance burden of MSMEs. As of now, compliances run to over 750 annually for MSMEs, with an estimated ₹12 lakh crore cost incurred for the same. The maze of these regulations has reportedly retarded their growth—it is stated that about 64% of MSMEs reported compliance as a huge challenge. Streamlined, these two processes can help save billions in compliance costs and hundreds of work hours annually. This is also in step with India’s vision to break into the top 50 in the World Bank Ease of Doing Business rankings from its current position of 63rd. Coupled with simplification of regulations at the state level, it has the potential to unlock the actual potential of the MSME sector accounting for 95 percent of India’s industrial units. Coupled with access to credit, this could be transformative for the 63.4 million MSMEs in India.

 Ridhima Kansal, director of Rosemoore

 It is of significant interest that the Economic Survey puts a focus on striking a fine balance between concerns over trade and security with China for MSME growth. Indeed, the Chinese share in India’s imports is about 30%, a large share of which comprises intermediate goods that are vital for MSMEs. Recent tensions along the border led to restrictions that affected 19% of India’s imports from China. This is what most affected the MSME sector, with 45% of them reporting some form of supply chain disruption. This call for balance underlines a complex interdependence, wherein the 70% of active Pharma Ingredients come from China and 80% of cells utilized in the solar sector are also manufactured there. The government is balancing this call for shielding MSMEs from dumping or unfair competition against access to vital inputs. This is a sensitive balancing act for 6.3 crore MSMEs in India, as it affects their competitiveness and survival not only in the domestic market but also in international markets.

Mr. Ketan Mehta, CFO of CredAble

 “We are delighted to see that the Union Budget 2024–25 has addressed many critical facets of the economy.

This year, the budget has truly put the spotlight on key issues facing the MSME sector in securing timely credit and has ushered in a plethora of opportunities for young entrepreneurs.

The government has proposed a new scheme under the Credit Guarantee schemes for MSMEs in manufacturing, providing MSMEs with collateral-free term loans for buying machinery and equipment. To further strengthen the financial stability of MSMEs, the limit for Mudra loans has been increased from INR 10 lakh to INR 20 lakh. Additionally, E-commerce export hubs will be set up to boost international trade. The government’s strategic move to provide internships and new schemes for the country’s youth, with a central outlay of INR 2 lakh crore, sums up its futuristic outlook.

The Union Budget has been extremely positive in recognising the role being played by MSMEs in India’s present and future. It’s also encouraging to see the government’s move to incentivise existing businesses and abolish the angel tax for all classes of investors, which will further aid the acceleration and globalisation of the startup ecosystem in the country.”

 Prakash Sankaran – MD&CEO of Invoicemart

“TReDS has made a significant impact in FY24 by facilitating MSME invoice financing exceeding Rs. 1 lakh crore. The Finance Minister’s mention in today’s budget speech of the government’s proposal to reduce the turnover threshold of buyers for mandatory onboarding on TReDS from Rs 500 crore to Rs 250 crore is a welcome move.

This change will now bring a large number of medium-sized corporates under the ambit of TReDS. Additionally, this presents an opportunity for NBFCs, which are very active in this space, to play a significant role as financiers on TReDS.”

 Mr. Rahul Garg, CEO & Founder, Moglix

 “The removal of angel tax is a welcome move for India’s startup ecosystem. This, coupled with the establishment of a ₹1,000 crore VC fund for the space economy, will foster innovation. The budget’s focus on manufacturing, with the introduction of plug-and-play industrial parks, is progressive. MSMEs will benefit significantly from the credit guarantee scheme, new assessment models by PSU banks, and increased Mudra loan limits. The substantial allocation of ₹11 lakh crore for infrastructure especially nature resilient is crucial for building a Viksit Bharat. The strategic shift towards nuclear energy as a major power source is visionary. Finally, the emphasis on cultural heritage through the development of the Vishnupad, Mahabodhi temple corridors, Rajgir, and Nalanda is a welcome addition.”

Mr Ratish Pandey, Business Coach and Founder, Ethique Advisory

 The expansion of the credit guarantee scheme for manufacturing sector MSMEs is a welcome step. It will enable MSME players to invest in plant and machinery, thereby enhancing their capacity for further growth.

The emphasis on employment and skill development will greatly benefit MSMEs by enabling them to hire more ‘employable’ individuals. The support for internships, along with the financial assistance for EPFO costs for new employees, will encourage the inclusion of more workers into formal employment structures.

Budget 2024 Reaction Quotes by Industry Experts

As the initial reactions to Budget 2024 start to take shape, we turn to industry experts to gauge the potential impacts of this year’s fiscal policies. The latest budget proposal has elicited a range of responses from business leaders, economists, and sector specialists, each offering unique perspectives on what lies ahead. In this collection of quotes, we present expert opinions on the budget’s implications, exploring both the opportunities and challenges it presents for various industries. Join us as we delve into these insights to uncover what Budget 2024 means for the future of our economy.

 Anirudh A Damani -Managing Partner – Artha Venture Fund

 “The government’s announcement of a ₹1,000 crore VC fund to boost the space economy and a ₹1 lakh crore R&D fund is a strong testament to the recognition that the space economy will be at the forefront of India’s ascent in the deep tech economy. This initiative underscores the success of ventures like Agnikul and provides significant momentum to their ambitious plans to launch a rocket a week and dominate the global nanosatellite delivery market. We are supremely excited to learn more about the finer details of this massive boost to the sector”.

 Ratna Mehta – Managing Partner, Fundalogical Ventures

 “The logistics and supply chain is the lifeline of India’s growth story. The budget’s identification of infrastructure, manufacturing, and skilling as key areas for long-term development and subsequent allocation is a step in making India the logistics and manufacturing powerhouse of the world. As a fund focused on investing in supply chain and logistics, we are bullish on backing innovative entrepreneurs building the support ecosystem of India’s supply chain. The government’s move to set up E-commerce export hubs to be set up for enabling MSMEs to export their local products is a huge step in the direction of driving growth through innovation and building on new-age trends to drive MSME growth. Interesting move from the Government to create industrial centres in historic hubs like Gaya of India as a part of ‘Vikas bhi, Virasat bhi.’ This will boost widespread infra development and logistics in these regions and create employment opportunities, reducing the urban-rural divide as well as encourage distribution of income”.

 Bhaskar Majumdar, Managing Partner, Unicorn India Ventures

 This is recognition of the growing need for a deeptech economy. However, alongside the R&D Fund, the government should look at the Intellectual Property regime. The much overdue Patent Policy needs to come out soonest to enable maximisation of R&D Fund.

 Anil Joshi, Managing Partner, Unicorn India Ventures

 The 1000 Cr fund of funds for space tech is testimonial to India’s capability in coming up with breakthrough solutions at low cost. This will certainly help space tech companies to look for much needed early stage capital to get started. This will certainly help mobilise over 4000 Cr, great move.

 Ankit Aggarwal, Founder & CEO, Unstop

 “I am glad to see Budget 2024’s focus on youth employment and skilling. The Rs 2 lakh crore allocation for employment schemes is the beginning to a brighter future.
The incentives for job creation and the plan to skill 20 lakh youth over five years is what we needed.The support for higher education loans and the push for women in the workforce is also a big plus. It feels good to see the government recognising the need to focus on key areas that can make our journey towards a skill based economy smoother.
It’s a great time to be young and skilled in India!”

  Adv. Mamta Binani, President of MSME Development

 Forum WB said, “The recently announced Union Budget for 2024-25 by Finance Minister Nirmala Sitharaman highlights a strong commitment to inclusive growth and economic resilience. We areoptimistic about the government’s initiatives aimed at empowering youth, boosting agriculturalproductivity, and enhancing women’s participation in the workforce. These measures are crucial for promoting inclusive growth and fostering a conducive environment for business growth.
The emphasis on increasing Minimum Support Prices for farmers, extending welfare schemes like PM Garib Kalyan Anna Yojana, and launching significant youth employment schemes with a ₹2 lakh crore allocation over five years demonstrates proactive steps to stimulate economic activity. The focus on agricultural productivity, skill development linked to employment, and promoting women’s workforce participation through targeted initiatives is expected to create favorable conditions for sustained business innovation and growth. Overall, the budget provides a solid foundation for economic stability and progress, aligning well with corporate goals for a dynamic and inclusive economy.

Vaibhav Shah, Fund Manager,Torus Oro PMS

 “Overall budget touched upon various important aspects like rural development, employment, women empowerment, fiscal consolidation, capex continuity etc. Fiscal consolidation path is a welcome move which was revised lower than interim budget. Initiatives in rationalization of tax structure is a step in the right direction. In Spite of coalition overhang, capital expenditure was maintained at the same level. So overall the narrative was clear on the growth aspect and the efforts will be made towards transforming the economy. Hike in capital gain tax took markets by surprise adding nervousness around the rate regime”

Mr. Dhriti Prasanna Mahanta, Vice President & Business Head, TeamLease Degree Apprenticeship

 The recent budget is a game-changer for India’s industrial sector, delivering a powerful focus on skill development and job creation. With an allocation of Rs 1.48 lakh crore aimed at skilling 20 lakh youth over five years and upgrading 1,000 industrial training institutes, the initiative is poised to address the sector’s pressing need for a highly skilled workforce.

The introduction of a one-time wage incentive for first-time employees, delivered through Direct Benefit Transfer (DBT), is set to boost formal employment by making it more attractive for industries to hire and train new talent. Additionally, the launch of internship programs in 500 companies, providing real-life exposure and a monthly allowance of Rs 5000, will create direct pathways to employment for young professionals. Companies will benefit from these programs through reduced recruitment and training costs, with 10 percent of the training expenses covered by CSR funds. This comprehensive approach ensures that industries gain access to a pipeline of skilled, industry-ready workers, which enhances productivity, drives innovation, and strengthens competitiveness.

By fostering a better-trained workforce, the budget will enable industries to meet evolving market demands more effectively, contributing to sustained economic growth and industry advancement.

Dr Srinivasan.K, Director -MBA ESG India

  ” Management colleges across the country exude confidence in the Union Education Budget 2024, presented by the Union Finance Minister Nirmala Sitharaman, emphasizing the need for innovative and access-based education. This commitment gets cemented for the future business leaders of our country due to the fact that an absolute allocation of ₹1.48 lakh crores has been made for education, employment, and skill development. The government has come forward with a scheme of providing loan assistance of up to ₹10 lakh for higher education in a domestic institution, therefore making the access to an MBA program easier and more accessible to a larger range of talent who dream of pursuing it. The most promising thing for MBA colleges is the introduction of a centrally funded scheme to train 20 lakh youth in five years in association with state governments and companies. This shall ensure that our students acquire industry-relevant skills to fill the gap between academia and professional practice. Apart from this, updating the 1,000 ITIs as per the need of the industry would further enhance the quality of management education.
The stipend amounting to ₹5,000 and a one-time allowance of ₹6,000 that the students would get under the internship scheme will provide immense hands-on experience to them. This will come along especially with encouraging companies to use their CSR funds for this initiative that would fan the creation of collaboration between MBA colleges and the corporate sector.
Overall, it makes India a global business and innovation hub by placing its students at the forefront in various industries.”

Bhaskar Majumdar, Managing Partner, Unicorn India Ventures

 This is recognition of the growing need for a deeptech economy. However, alongside the R&D Fund, the government should look at the Intellectual Property regime. The much overdue Patent Policy needs to come out soonest to enable maximisation of R&D Fund.

Anil Joshi, Managing Partner, Unicorn India Ventures

 The 1000 Cr fund of funds for space tech is testimonial to India’s capability in coming up with breakthrough solutions at low cost. This will certainly help space tech companies to look for much needed early stage capital to get started. This will certainly help mobilise over Rs 4000 Cr, great move. Angel Tax abolishment was long pending, glad that Hon. FM has heard industry voices and has finally abolished it. This will certainly help in expansion of angel investment in India and will take away a lot of burden from the minds of everyone on tax notice for tax paid investment. This will also free up a lot of domestic capital and improve the funding sentiment in a strong way.

Mayuresh Raut, Managing Partner, Seafund

 This was an albatross that hindered much needed capital to be deployed to deserving founders. Removal of this dreaded tax will give a huge fillip to startups in the country and free up investors to focus on the investments without having anxiety on how to deal with their implications. A few other things that work well for deep tech focused funds like us. The rooftop solar policy, the pumped storage policy and research and development for small & modular nuclear reactors, Bharat small reactors, R&D for small modular reactors, R&D for new technology in nuclear form a neat troika to alter the energy map of India. Especially on the nuclear side, it positions India to replicate the renaissance that nuclear is experiencing in the US.

Manoj Agarwal, Managing Partner, Seafund

 As a deep tech focused VC fund, FM announcing Rs 1000 crore space economy VC fund and R&D fund of Rs 1 lakh crore will work as a strong catalyst for startups in deeptech and space tech. This Budget has given attention to several demands of the industry which have been long standing. Rationalising of LTCG to 12.5% for all financial and non financial assets is also a step to bring parity between listed and unlisted companies. However, the biggest take away from the Budget is removal of angel tax. This will lead to ease in raising funding for early stage founders and will encourage more early stage investors and angels to look at startup investing as a fruitful asset class. In our view, this single announcement is a small step in the direction of making angel investment accessible for people with investment corpus which currently goes to markets and Mutual funds.

 Mayuresh Raut, Managing Partner, Seafund

 This was an albatross that hindered much needed capital to be deployed to deserving founders. Removal of this dreaded tax will give a huge fillip to startups in the country and free up investors to focus on the investments without having anxiety on how to deal with their implications. A few other things that work well for deep tech focused funds like us. The rooftop solar policy, the pumped storage policy and research and development for small & modular nuclear reactors, Bharat small reactors, R&D for small modular reactors, R&D for new technology in nuclear form a neat troika to alter the energy map of India. Specially on the nuclear side, it positions India to replicate the renaissance that nuclear is experiencing in the US.

 Manoj Agarwal, Managing Partner, Seafund

 As a deep tech focused VC fund, FM announcing Rs 1000 crore space economy VC fund and R&D fund of Rs 1 lakh crore will work as a strong catalyst for startups in deeptech and space tech. This Budget has given attention to several demands of the industry which have been long standing. Rationalising of LTCG to 12.5% for all financial and non financial assets is also a step to bring parity between listed and unlisted companies. However, the biggest take away from the Budget is removal of angel tax. This will lead to ease in raising funding for early stage founders and will encourage more early stage investors and angels to look at startup investing as a fruitful asset class. In our view, this single announcement is a small step in the direction of making angel investment accessible for people with investment corpus which currently goes to markets and Mutual funds

Alakshendra Singh, head of corporate communications, Eros Group

 The Union Budget 2024 presented today is a missed opportunity for India’s real estate sector. While the allocation of ₹10 lakh crore for urban housing under PMAY-Urban 2.0 is commendable, the central assistance of ₹2.2 lakh crore over five years falls short of what is required to truly address the housing crisis. The promise of three crore additional houses sounds grand, but the practicalities and previous execution rates raise serious doubts. Urban development is touted as a key pillar, yet the support for rental housing and regulatory frameworks remains weak. The initiative for working women hostels is positive but insufficient without a robust rental regulatory framework. The focus on industrial parks and infrastructure investments is promising, but the glaring omission of substantial incentives for private players in the rental housing market is disappointing. Fiscal deficit control is important, but not at the cost of bold and necessary reforms in the real estate sector.