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Tag: Post-Budget 2024

Post-Budget 2024: Expert Comments -Real Estate Sector

As we move forward from the unveiling of Budget 2024, experts in the real estate sector are sharing their evaluations and expectations. In this collection of expert quotes, we present a broad spectrum of opinions to help you understand the anticipated effects of the budget on real estate industry and what it means for the year ahead.

Sanjay Chatrath, Managing Partner, Incuspaze

We welcome the initiatives announced in the Budget 2024-25, which are set to significantly impact the real estate sector. The government’s continued focus on infrastructure development and urban planning will facilitate the expansion of flexible workspace solutions across the country. The retention of infrastructure spending at ₹11.1 trillion, equivalent to 3.4% of GDP, and the allocation of ₹1.5 trillion for interest-free loans to states for infrastructure spending are commendable steps that will drive growth in the sector.

The significant investment by the Central Government over the years in building and improving infrastructure has had a strong multiplier effect on the economy. Maintaining strong fiscal support for infrastructure over the next five years will further enhance this impact. The encouragement for states to provide similar support, backed by long-term interest-free loans, will ensure that infrastructure development remains a priority across the nation.

Moreover, the promotion of private investment in infrastructure through viability gap funding and enabling policies will create a conducive environment for further growth. The development of Digital Public Infrastructure (DPI) applications for credit will also support the digital and technological advancements necessary for the future of flexible workspaces.

These measures, along with the clarification on GST and electricity charges, are expected to streamline operations and reduce ambiguities, ultimately benefiting our clients by providing more cost-effective and transparent service structures. We are confident that these initiatives will not only drive growth in the flexible workspace industry but also contribute to the broader economic development of emerging urban centers.”

Mr Aman Sarin, Co-chair, Housing and Urban Development Committee, PHDCCI and Director & CEO, Anant Raj Limited

  The budget presented by the Finance Minister brings various positive developments. It demonstrates the government’s commitment to providing housing for all, infrastructure development, and sustaining economic growth.
Key measures such as the reintroduction of subsidies under PMAY, policies for rental housing, digitization of land records, and stamp duty rationalization for women homebuyers are extremely positive moves. These initiatives will serve as major catalysts in driving the overall real estate sector.

Mr Dhaval Barot, MD & CEO of Bharat Realty Venture Pvt Ltd

 “We look forward to welcoming the points on the urban housing sector from FM Shrimati Nirmala Sitharaman’s first Union Budget 2024-2025 of Modi 3.1. We appreciate the steps taken by this year’s Union Budget 2024-2025 in the housing market. Listed as Priority 5, FM Sitharaman spoke on services for 100 large cities for urban development. In addition, the government has allotted ten lakh crore rupees for one crore houses for the urban poor.

These are advanced and modern policies for ensuring that all people have adequate shelter, a basic need of human life.

The government has also slashed stamp duty for women, which will now empower more women to become homeowners, giving them freedom and power to take control of their own lives. This reflects the third pillar of the Viksit Bharat scheme, with power being given to Mahila (women) for all-encompassing equitable development.”

Rajiv Agrawal, Founder Partner of Saarathi Realtors

 The finance budget for 2024-25 was majorly focused on employment, skilling, MSME, and middle-class tax structure under the new regime. An allocation of ₹1.48 lakh crore for education, jobs, and skill development was announced and all this will see increased investment in the realty sector with increased need for housing. The FM’s announcement of a Rs10 lakh crore investment in urban housing under PM AWAS Yojana Urban 2.0 is a major boost for India’s real estate sector. Additionally, the PMAY 2.0 will benefit lakhs of slum dwellers in Mumbai by providing them access to affordable and quality housing. The budget emphasizes integrating lower-income communities into the formal housing market by
giving homes to the weaker sections living in slums through effective arbitration and right evacuation solutions. This will enhance their quality of life and contribute to the overall urban development and social upliftment of Mumbai’s slum areas,”

Shrinivas Rao, FRICS, CEO, Vestian 

 “Announcements under the Union Budget 2024-25 are a step towards achieving the goal of Vikshit Bharat by 2047. The budget continued its focus on infrastructure development and provided impetus to employment generation with an aim to bridge the skill gap and boost the Indian economy.”

Mr. Rao added, “The budget witnessed several announcements which may boost demand for real estate assets – A budget allocation of INR 10 lakh crore to develop one crore urban houses under PMAY, improved transparency in rental housing markets, digitization of land records, and reduction in stamp duty. Additionally, sustainability gained momentum through the government’s push for clean energy, which may also be reflected in the real estate sector. All in all, the focus on infrastructure development will directly or indirectly have a positive impact on the real estate sector too.”

 Badal Yagnik, Chief Executive Officer, Colliers India

 The Union Budget 2024-25 clearly defines the nine priority areas revolving around employment & upskilling, inclusive growth, augmentation in manufacturing, urban development, infrastructure growth, innovation and newer reforms. This lays the foundation for future budgets and envisions India’s growth trajectory over the next five years. The capital outlay of over INR 11 lakh crore for infrastructure at 3.4% of GDP will boost equitable real estate growth in Tier I and II cities.

Housing continues to be one of the focus areas in the budgetary announcements. Under the PMAY scheme, INR 10 lakh crore has been allocated for the development of 3 crore additional houses. This will drive construction in the urban and rural areas with cascading effect on allied sectors. PPP financing and VGF for rental housing will help in meeting the housing needs of the poor while reducing the burden of the government through the traditional route. Rationalization of stamp duty across states with an emphasis on women homebuyers will boost home-buyer sentiment across major cities of the country. Furthermore, announcements related to industrial parks & corridors and infrastructure development in temple corridors should provide opportunities for all real estate stakeholders. Additionally, revision in tax slabs and increase in deduction limits under the new tax regime can potentially enhance disposable income and drive-up real estate investment across asset classes especially residential real estate.

Sankey Prasad, Chairman & MD, India & CMD – Middle East, Colliers Project Leaders

  In addition to infrastructure development, the Union Budget 2024-25 has focused on employment generation, skilling, manufacturing augmentation, innovation and inclusive growth. On the real estate front, additional allocations under PMAY scheme, rationalization of stamp duty charges for women-home buyers and focus on rental housing catering to industrial workers bodes well for the residential segment. Interestingly, bolstered by government policy support and infrastructure developments, spiritual tourism is poised to be a critical growth driver for the development of several temple towns in India. Announcements related to industrial parks and corridors can potentially add vigor to the industrial & warehousing segment. Moreover, increase in disposable income under the new tax regime through additional deductions and slab revisions can amplify investments across real estate asset classes including REITs.

Amit Goyal, Managing Director, India Sotheby’s International Realty

 The budget strikes a delicate balance: prioritizing infrastructure, job creation, and MSMEs while maintaining fiscal discipline. The commitment to reduce the deficit to 4.5% and below over the next few years by FM Nirmala Sitharaman, is commendable. This ensures long-term economic stability, high credit rating and FDI inflows for India. In a young nation with a large youth population (40% under 25!), skilling and job creation are crucial.

For real estate transaction, bringing down the long-term capital gains tax from 20% to 12.5% is a welcome step, even if it comes with removal of indexation benefits. This will encourage more liquidity in property transactions. Higher uniformity in long term capital gains tax across different asset classes was a long standing ask of investors.
The push for digitization, efficient land management, and modernized bylaws is also a boost for urbanisation and real estate. This will improve ease of property transactions and strengthen municipal finances through increased property taxes.

 Mr. Sunil Dewali, Co-CEO of Andromeda Sales & Distribution Pvt Ltd, parent company of Andromeda Realty Advisors

  The Finance Minister’s announcement to make housing more affordable, with a ₹2.2 lakh crore push under the PM Awas Yojana-Urban, is a major step forward. Addressing the needs of one crore poor and middle-class families with a ₹10 lakh crore investment over five years, it reflects a robust approach to urban development. Encouraging states to reduce high stamp duty rates, especially for women buyers, is progressive. Digitizing land records, GIS mapping, and urban housing initiatives, alongside workforce skilling, will boost the real estate sector. Significant infrastructure investments and simplified FDI rules will drive private investment, fostering economic growth and stability.

Mr. Prashant Sharma, President, NAREDCO Maharashtra

 “We commend the Union Budget 2024-25 for its comprehensive approach towards job creation and boosting consumption, which are positive developments for the real estate sector. The Finance Minister’s announcement of a PM Package with five schemes focused on employment and skilling, with an allocation of Rs 2 lakh crore, and a significant provision of Rs 1.48 lakh crore for education, employment, and skilling, is a welcome move. These initiatives will undoubtedly create a ripple effect, enhancing the economic landscape and increasing demand for residential and commercial properties.

The government’s commitment to making housing more affordable, with a Rs 2.2 lakh crore push under the PM Awas Yojana-Urban, is a significant step forward. Addressing the housing needs of one crore poor and middle-class families with an investment of ₹10 lakh crore, including central assistance of ₹2.2 lakh crore over the next five years, reflects a robust and inclusive approach to urban development.

The proposal to encourage states to moderate high stamp duty rates and consider further reductions for properties purchased by women is a progressive measure. Incorporating these as essential components of urban development schemes will promote greater inclusivity and accessibility in the housing market.

The GST reforms, which have eased compliance and reduced tax burdens, have been instrumental in driving economic growth. The proposed rationalization of the tax structure, coupled with the new tax regime changes, including the increased standard deduction, will further benefit the salaried class and boost disposable income, positively impacting housing demand.

The sanctioning of 12 industrial parks under the National Industrial Corridor Development Programme, the facilitation of rental housing with dormitory-type accommodation for industrial workers in PPP mode, and the formulation of transit-oriented development programmes for 14 large cities are strategic moves that will enhance urban infrastructure and support industrial growth.

With significant infrastructure investments continuing over the next five years, including a provision of ₹11,11,111 crore for capex, we anticipate a multiplier effect that will drive private investment in infrastructure. The introduction of a market-based financing framework and simplified rules for Foreign Direct Investments will further facilitate economic growth and stability.

Overall, the Union Budget 2024-25 is a forward-looking and balanced approach towards Viksit Bharat that addresses key areas of employment, housing, urban development, and economic growth. We at NAREDCO Maharashtra look forward to the positive impact these measures will have on the real estate sector and the overall economy.”

Mr. Pritam Chivukula, Co-Founder & Director, Tridhaatu Realty and Vice President, CREDAI-MCHI

  “We wholeheartedly welcome the Finance Minister Nirmala Sitharaman Union budget 2024-25 which reflects market expectations, promoting an atmosphere conducive to economic growth.

The budget emphasizes the needs and aspirations of the Garib, Mahilayen, Yuva, and Annadata, highlighting the government’s primary priorities, and we applaud the government for the same. Keeping Viksit Bharat in mind, the Finance Minister mentioned urban development and infrastructure among some of the key focus areas of the government.

An outlay of 10 lac crore for urban housing under PM Awaas Yojana is a welcome move as it will give a significant boost in providing housing across major cities in the country. With a huge shift in the population moving from rural to urban areas, this move will immensely benefit in providing a roof over the head of our urban population.
The government has announced a Rs 2.2 lakh crore initiative to enhance housing affordability: Through the PM Awas Yojana-Urban, the housing requirements of one crore economically disadvantaged and middle-class families will be met, supported by an investment of ₹10 lakh crore. This comprehensive plan includes ₹2.2 lakh crore in central assistance over the next five years.

The 2.66 lac crore allocation for rural development and infrastructure will benefit people in rural India to become self reliant and uplift their living standards. This will discourage them from moving into urban areas and encourage overall development of the country.

Rental housing with dormitory type accommodation for industrial workers has been proposed under the PPP model. This is a step in the right direction, as it will provide affordable housing options for the industrial workers, who are at the bottom of the housing pyramid.

The Finance Minister stated that stamp duty for women buying a house has been lowered. This will encourage women to come forward and empower them in the home buying process.

The Finance Minister highlighted ongoing significant infrastructure investments, set to continue over the next five years. This year, ₹11,11,111 crore has been allocated for capital expenditure, amounting to 3.4% of GDP. States will be encouraged to match this scale of support based on their priorities. Private investment in infrastructure will be encouraged through Viability Gap Funding and a new market-based financing framework.

The Union Budget 2024-25 embodies a progressive strategy aimed at addressing crucial sectors while propelling the nation towards a more sustainable and promising future.”

Mr. Mehul Agarwal, Director & CEO, Dorby

 “ As a stakeholder in the surface décor industry, reforms and initiatives in the allied sectors like manufacturing, logistics, and infrastructure significantly impact our growth aspirations. The allocation of Rs 11 lakh crore, representing 3.4% of our GDP, for capital expenditure on infrastructure projects highlights the government’s dedication towards real estate and infrastructure growth and development. Significant allocations with Rs 15,000 crore dedicated to Andhra Pradesh’s development and Rs 26,000 crore for highway projects in Bihar including the Polavaram Dam project, new airports, medical colleges, and industrial nodes, reflect the government’s commitment to regional development as well. Enhanced infrastructure translates to improved logistics and supply chain efficiency, reducing transit time and costs.

Furthermore, the reduction in the turnover threshold for MSME buyers on the TReDS platform from Rs 500 crore to Rs 250 crore is another reform that stands to benefit the MSME sector significantly. This measure will improve liquidity and working capital management for MSMEs, enabling smoother cash flows and financial stability. Moreover, the introduction of a new credit guarantee scheme for MSMEs, providing guarantees up to Rs 100 crore for term loans without collateral, will facilitate access to finance for machinery and equipment purchases. The government’s continued focus on GST simplification and rationalization is a welcome move. We expect the reduced compliance burdens and logistics costs to enhance ease of doing business, enabling us to operate more efficiently.

The budget also emphasizes urban development through transit-oriented plans for 14 large cities with populations exceeding 30 lakh promoting urban expansion. This presents a promising market for the surface décor industry, as the increased real estate value will consequently lead to higher demand for construction & development. Lastly, the Finance Minister also announced a PM Package of five schemes aimed at facilitating employment and skilling, with a substantial allocation of Rs 2 lakh crore, aimed at creating jobs for the youth of the country. Employment and skilling, particularly in the blue-collar sector, is crucial for our industry where skilled labour undertakes product installation and finishing.”

Post-Budget 2024 Insights from Industry Leaders

As we process the details of Budget 2024, industry experts are offering their insights and analyses on the proposed economic strategies. In this collection of expert quotes, we present a broad spectrum of opinions to help you understand the anticipated effects of the budget on various industries and what it means for the year ahead.

Quote on behalf of Parimal Heda, Chief Investment Officer, Go Digit General Insurance

 The Union Budget 2024 has maintained its commitment to fiscal prudence yet announced various tax-friendly measures for the Indian taxpayers. From the perspective of the Insurance Sector, amendment made by the government to clarify various activities in insurance sector as neither a supply of goods nor a supply of services is an extremely positive measure for the sector. This will immensely reduce compliance and ongoing litigation burden and provide overall stability to the sector.
Rationalisation of tax deducted at source (TDS) from 5% to 2% for payment of insurance commission to individual agents will ensure additional income in the hands of such individuals for payments made by the insurers. TDS reduction to 2% for payment of bonus or proceeds made on life insurance policies upon maturity will also ensure higher receivables for individual policyholders.
Abolishment of angel tax for all classes of investors will provide a huge fillip to the start-up sector that in the past had witnessed funding winter. This will bring in the much-needed capital, especially from the foreign investors to the growing start-up ecosystem of the country and aid in their future growth.
Floods are one of the most common natural disasters in India. Identifying key states, the government has taken strong steps towards flood mitigation. As systemic risks of floods get mitigated over time through various measures like flood-controlled structures, it will aid insurance companies in underwriting the risks related to liability and property insurance better going forward.
New assessment model for MSME credit and announcement of credit guarantee scheme will also foster better insurance collaboration with lending companies and aid in better assessment of risks.
From an ancillary benefits point of view, the government’s proposal to boost domestic tourism and unlock economic potential of key destinations will have an ancillary impact on travel insurance as well and boost its uptake as bite-sized travel insurance products will likely become part of travellers’ planning.
The government’s aim to prioritise agriculture research and developing climate-resilient varieties of 32 field and horticulture crops will also have an ancillary effect on the crop insurance segment as losses over medium- to long-term will likely reduce from loss of crop due to climate-related incidents.
The Finance Minister’s financial sector vision and strategy document will also be another keenly watched policy by the BFSI sector to garner better insights on the agenda planned by the government for the remaining decade.

Anish Srikrishna, CEO, TimesPro

 “The Finance Ministry’s focus on youth development, job creation and the skilling of millions of young learners will establish a robust foundation for India’s economic strength and position it as a global hub for skills. The comprehensive package of schemes, with an estimated cost of Rs. 2 lakh crores, aims to facilitate employment and skilling initiatives, significantly contributing to job creation and skill enhancement across various candidate categories in the country. The direct benefit transfer of one month’s salary to new entrants in the workforce will help expand the base of formal employment, benefiting 2.1 lakh young people in India.

Higher education has a crucial role in executing these next-generation initiatives. EdTech platforms, in particular, have proven to be key differentiators in democratising education through innovative and cutting-edge technology. They are significantly upskilling Indian youth to enhance employability and contribute to executive learning, thereby creating a substantial upskilled workforce to power the economy and we look forward to Edtech’s continued participation in India’s growth narrative.”

Dr. Payal Kanodia, Chairperson, FICCI YFLO Delhi.

 “It is promising to see our vision align with the Modi government’s forward-thinking ideology. As the newly appointed Chairperson of YFLO Delhi, my dedication to women and child welfare has been amplified by this honour. I am committed to reaching 1 million people, focusing on livelihood opportunities, youth skill development, literacy, socio-economic empowerment, environmental conservation, and enterprise development. Modi 3.0’s focus on enhancing women’s workforce participation through initiatives like hostels and women-specific skilling programs is inspiring. At YFLO, in collaboration with Womenovator, we are encouraging private academic institutions to help post-graduate women overcome societal challenges and secure relevant work. Additionally, through M3M Foundation, new initiatives for promoting private investment in post-harvest activities and faster adoption of technologies like nano DAP to boost agricultural productivity will be scaled in Delhi NCR and border areas like Leh and Ladakh, benefiting women in rural areas.”

Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd

 This budget can be termed as prudent and holistic in each aspect the government’s decision to allocate ₹10 lakh crore under the PMAY Urban Scheme, targeting 3 crore houses and key focus on rationalising stamp duty for Home byers especially for women, underscores a robust vision for urban development and will help homebuyers would save the significant amounts, making home ownership more accessible.

At macro level sustained infrastructure impetus, reflected in the ₹11.11 lakh crore Capex allocation, we anticipate all these would create a multiplier impact and significant boost in the overall housing sector.

Additionally, a focus on rental housing in industrial parks via the PPP model, digitizing land records in cities will greatly improve transparency and ease property transactions.

Mr. Mohit Jain, Managing Director, Krisumi Corporation

 Urban centers, being the drivers of growth, saw major allocation and attention in the Union Budget 2024. More homes under PMAY (U), transit development, creative redevelopment of cities, industrial parks, rental housing for industrial workers, digitization of land records, development of industrial parks and call for moderation in stamp duty, particularly for women buyers are some of the measures that will usher Indian cities towards the path of modernization, enhancing livability and enabling them as growth and employment centers. The real estate sector, as partners in this development, will play a major role in contributing towards the government’s urban vision. The increase in Standard Deduction of Rs 25,000 to Rs 75,000 will be a sentiment booster for the sector, which is on a high and expected to perform well in the near future.

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.”

N D Mali, Founder, KDM

 “The budget will steer India towards a Viksit Bharat by 2047 through a slew of measures that boost consumption. Tax reduction of up to 15% on mobile phones, mobile PCBs, and chargers is expected to boost domestic manufacturing and benefit customers. The budget focus on employment, skilling and middle class will spur consumer spending, which, in turn, would stimulate economic growth. The fiscal prudence of 4.9% and increased outlay of capex will put more money in the hands of people and general consumer sentiment will increase. The budget will further charge the economy of Bharat.”

Hardika Shah, Founder & CEO, Kinara Capital

 It is very encouraging to see a number of announcements aimed at bolstering the MSME sector in the Union Budget 2024-25. The Finance Minister’s introduction of a credit guarantee scheme specifically tailored for MSMEs in the manufacturing sector is a particularly promising move. This initiative, which facilitates access to term loans for MSMEs to purchase machinery and equipment without the need for collateral or third-party guarantees, will incentivize formal lending at the last mile by mitigating credit risk. The creation of a self-financing guarantee fund to provide guarantees of up to INR 100 crores is also a game-changer in terms of delivering formal credit to small businesses. Equally commendable is the enhancement of the Mudra Yojana loan limit from INR 10 lakhs to INR 20 lakhs for entrepreneurs The government has already extended 43 crore loans amounting to around INR 22.5 lakh crores, and this move will expand the ambit of the scheme, empowering many more MSMEs with the necessary financial support.

One of the most forward-thinking aspects presented in the Budget with regard to MSMEs is the new assessment model for MSME credit. By enabling the development of capabilities to assess MSMEs for credit, rather than relying on external assessments, the government is paving the way for a more accurate and inclusive credit assessment process, a practice we at Kinara Capital have already adopted. Utilizing the digital footprints of MSMEs represents a significant improvement over traditional assessments based solely on assets or turnover, as the Finance Minister said, and it inclusively targets MSMEs without formal accounting systems, which is a huge step forward in driving financial inclusion at scale.

I am thrilled to see these initiatives, as they align perfectly with our larger vision of a more financially equal landscape by delivering access to formal credit to MSMEs. Our commitment to alternative credit assessment and last-mile facilitation resonates strongly with the government’s push towards financial inclusion for MSMEs through policy, tech, and financing support. We look forward to contributing to and benefiting from these progressive changes, driving growth and stability within the MSME sector.

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. Specially on the nuclear side, it positions India to replicate the renaissance that nuclear is experiencing in the US.

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 vs 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.

Dr. Sanjay Salunkhe, CMD, Jaro Education

 “The budget has struck the right balance to enhance the education and employment sector. The Finance Minister’s financial support for loans up to Rs 10 lakh for higher education in domestic institutions is a commendable initiative. This will provide ample opportunities for upskilling the youth and budget emphasis on education, skilling, and job creation will foster long-term growth for corporates like us who have been striving to make youth of the country employable.”