Union Budget 2024 - Business News Week

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Union Budget 2024: What the Experts Have to Say

Jul 24, 2024 by Mansi 0 Comments #Covestro India, #Expert, #Union Budget 2024

Dhiren Jatakia, Head of Finance and Accounts, Covestro India

“The Union Budget 2024 is a progressive step towards fostering economic growth and sustainability. Revamping the Tax structure & custom duty will bolster business confidence and investment in India.
The focus on skill development, energy transition and the development of small modular nuclear reactors aligns well with our commitment to sustainability. Additionally, the enhanced support to MSMEs and the introduction of employment-linked incentives will significantly benefit our workforce and supply chain.
Overall, the budget’s emphasis on innovation, infrastructure, and inclusive growth presents promising opportunities for Covestro India.”

Rajendra Gandhi, Managing Director, Stovekraft

“We appreciate the government’s budget initiatives for the focus on the manufacturing sector, women’s empowerment, and new job creation. The establishment of working women’s hostels aimed at boosting women’s participation in the workforce are progressive step that will greatly benefit our industry. Additionally, the incentives for new employment in manufacturing, tied to EPFO contributions for the first four years, promise to significantly boost job creation. Furthermore, the customs duty exemptions on critical minerals will reduce production costs and enhance competitiveness. These measures collectively reflect a strategic and innovative approach to fostering growth and development within the manufacturing sector.”

Manish Mehan, CEO & MD, TK Elevator India says

“The Indian real estate sector is expecting the Union Budget 2024–25 to improve liquidity, such as enhanced funding for the Special Window for Affordable and Mid-Income Housing (SWAMIH) fund, which has been crucial in reviving stalled projects. It presents substantial steps under the PM Awas Yojana-Urban, and rural development initiatives are poised to significantly transform the housing landscape in India. With an investment of ₹10 lakh crore addressing the housing needs of 1 crore families and the construction of 3 crore additional houses, the elevator industry is set to witness a surge in demand, driving growth and innovation within our sector.
Moreover, the significant allocation of ₹11,11,111 crore for capital expenditure on infrastructure, along with the encouragement for the government to make similar contributions, highlights their commitment to strong infrastructural development. This increased effect will undoubtedly impact the elevator industry, offering us remarkable opportunities to improve urban mobility and support the evolving urban infrastructure”

Sanjay Agrawal, Head Presales and CTO at Hitachi Vantara India and SAARC, and Chair of SNIA

The government’s focus and plans to foster a robust manufacturing ecosystem in India is reflected in the interim budget presented. The budget’s emphasis on digital infrastructure, skilling, and industrial parks aligns perfectly with our strategy of a digitally transformed and globally competitive manufacturing sector. We are committed to supporting India’s industrial growth journey by providing cutting-edge solutions that enhance operational efficiency, data-driven decision-making, and supply chain resilience. Hitachi Vantara’s expertise in IT infrastructure, data management, and industrial automation is uniquely positioned to help manufacturers capitalize on these opportunities and contribute to India’s economic prosperity.

Divyesh Dalal, Managing Director & Head – Global Transaction Services, SME & Institutional Liability Business, DBS Bank India

The measures announced in the Union Budget underscore the government’s commitment to empowering MSMEs, the backbone of our economy. The introduction of the credit guarantee scheme is an encouraging step towards making capital more accessible. Additionally, the provision of collateral-free term loans for purchasing machinery and equipment will tangibly enhance the operational capabilities of MSMEs by enabling technology upgrades.

Further, lowering the turnover thresholds mandatory for onboarding on the TReDS platform will allow more MSMEs to access the benefits of this system. The establishment of e-commerce export hubs is poised to further equip enterprises with the tools and support needed to expand into international markets. By making their products more accessible globally through e-commerce platforms, Indian businesses can tap into new opportunities with offshore customers across markets. DBS Bank India is well-positioned to support MSMEs given the focus on supporting the 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.”

Shridhar Venkat, CEO, The Akshaya Patra Foundation

The National Means cum Merit Scholarship Scheme has received a significant boost, with ₹377 crore allocated for 2024-25. This increase aligns beautifully with our own Akshaya Patra Scholarship Program. Together, these initiatives will help talented students from economically weaker sections continue their education beyond schooling, reducing dropouts and nurturing potential.
The PM POSHAN (formerly Mid-Day Meal) scheme has been allocated ₹12,467.39 crore for 2024-25. This represents a significant 24.67% increase from the revised estimate of ₹10,000 crore in 2023-24. This substantial investment in our children’s nutrition is heartening. As key implementers of the mid-day meal program, we at Akshaya Patra are energized by this commitment.

These strategic allocations, coupled with the five-year extension of the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), form a comprehensive approach that directly addresses multiple Sustainable Development Goals. By combating hunger and promoting education, we’re making significant strides towards SDG 2 (Zero Hunger), SDG 4 (Quality Education), and SDG 10 (Reduced Inequalities). At Akshaya Patra, we’re more motivated than ever to collaborate with the government in these crucial areas. This budget takes us another step closer to achieving the Zero Hunger SDG and ensuring quality education for all.’

Mr Rahul Kejriwal, Executive Director, Remsons

“The growth-oriented budget with continued reforms and infrastructure development with fiscal prudence and increased outlay of capital expenditure will go a long way. As the increase in Government’s expenditure will percolate in to more demand for both passenger and commercial vehicles, which would really a big boost for auto components sector. As a part of reforming direct tax structures, the budget has put more money in the hands of consumers and this would definitely spur the demand for passenger vehicles. Meanwhile, the Production Linked Incentive (PLI) scheme for the automobile and auto components industries drew an investment of Rs 67,690 crore, according to the Economic Survey 2023-24.”

Kapil Makhija, MD & CEO of Unicommerce

“The government’s focus on building a digitally enabled India is evident in the measures announced during Budget 2024. Encouraging the country’s e-commerce sector by reducing TDS to 0.1% for e-commerce operators, supporting MSMEs by setting up e-commerce export hubs, leveraging the digital footprint of online enterprises to evaluate credit eligibility, elimination of equalization levy for supply for goods and services via e-commerce are notable changes that will support growth of India’s e-commerce sector.”

Mr. Rishabh Kothari – Additional Secretary, Shri Ram Chandra Mission

“The budget session today has proposed supporting the development of temple corridors which will enable development of spiritual tourism within the proposed economic policy framework. According to the Ministry of Tourism, spiritual tourism in India has seen a rise post-Covid era. With the ease of restriction on lockdowns and travel, the numbers of spiritual tourists grew from 677 million in 2021 to 1,439 million in 2022 generating revenues of US$16.2 billion in 2022, up from US$ 7.9 billion as noted by the Ministry of Tourism. This contributed $199 billion to India’s GDP in 2022-23 financial year alone. Spiritual tourism has a rising potential of market size with an expected annual growth of 9-10% and generating livelihoods. It is estimated that by the end of this decade more than one hundred million people would have jobs in the spiritual tourism sector in India. Both Central and State Governments have worked in developing the infrastructure and connectivity through high-speed trains and setting up airports in smaller cities. Foreign tourists have been given easier access and interest-free loans to states to put up malls and shops for unique products have been brought in. It is very encouraging to see this kind of growth not only as an economic booster, but also that more and more people are seeking spiritual wellness from within the country and overseas as well. Provisions for promoting mental health as being an aspect of spiritual and holistic wellness must also be mandated through dedicated retreats and wellness centers.”

Sachin Alug, CEO, NLB Services

“Union Budget 2024-25 highlights the government’s commitment to transform India’s employment landscape through its strategic focus on diverse segments like- youth, women, MSMEs, and tourism sector. With ‘Yuva’ as one of the four critical points for the Union budget, the Finance Minister’s ambitious plan to create jobs for 4.1 crore youth, supported by a ₹2 lakh crore allocation, is a game-changer. This includes important action points such as incentives for 30 lakh first-time employees, the establishment of working women hostels, and the enhancement of MGNREGA to ensure 100 days of wage employment for manual workers.

The commitment to skilling youth is equally impressive, with plans to upskill 20 lakh youth and provide higher education loans up to ₹10 lakh for 1 lakh students annually. This investment in education and skill development will significantly boost employability and economic potential. Moreover, the proposed scheme to provide internship opportunities to 1 crore youth in 500 top companies with Rs. 5000 per month as internship allowance and one-time assistance of Rs. 6000 will further help in achieving employment goals.

Furthermore, the budget’s support for over 4.4 crore MSMEs, coupled with a ₹100 crore guarantee fund, is set to uplift this sector, with currently reporting 19.09 crore jobs. The initiative will increase the number of jobs by 12-15% in the MSME sector. Additionally, the focus on infrastructure development and improved connectivity is expected to elevate India’s status as a global tourism destination, generating further employment in both the tourism and infrastructure sectors. This will further boost employment in the tourism sector by 15-20%, creating roles such as Tour Operator, Business Development, Travel Consultant, Hospitality Manager, Destination Marketing, and Tour Guide, and the 10-12% growth in the infrastructure sector with roles like Civil Engineer, Architect, Project Manager, and liaison officer, etc.

Collectively, these initiatives represent a bold and essential step toward a more inclusive and dynamic economy. They will not only address immediate employment needs but also lay the foundation for long-term economic prosperity and growth.”

Mr. Pankaj Jathar, Chief Executive Officer, NIIT Ltd.

“The budget announcement has laid a strong foundation for advancing education, skilling, and employment opportunities and is truly commendable. The allocation of Rs 2 lakh crore for the five employment and skilling schemes, along with Rs 1.48 lakh crore for education, employment, and skilling, underscores the government’s dedication to the country’s youth and its commitment to propel growth. The new centrally sponsored scheme aimed at skilling 20 lakh youth over five years will significantly contribute to fostering a skilled workforce. This significant step is the need of the hour to bridge the gap between education and the skills essential to equip the youth to be industry-ready. These initiatives will help us maximize our education and skilling efforts, propelling the next phase of growth for the Indian economy.”

Akshay Adhalrao, Managing Director, Dynalog India

“The Government’s strategic focus on job creation in the manufacturing sector is a crucial step towards boosting India’s economic landscape. By providing employment incentives for first-time employees and introducing a comprehensive credit guarantee scheme for MSMEs, we are paving the way for Indian businesses to expand operations and thrive without the burden of collateral or third-party guarantees. This support is vital for fostering innovation, enabling MSMEs to become key contributors to the nation’s growth trajectory. The emphasis on skilling and employment in this Budget further underscores a transformative step towards unlocking India’s immense potential. The comprehensive internship scheme for one crore youth will open invaluable opportunities for young Indians to gain essential skills and experience. This move will be crucial in creating a workforce that is not only educated, but also industry-ready. Moreover, the government’s dedication to enhancing women’s participation in the workforce through specific skilling programs and infrastructure support is commendable. As someone who values inclusivity, I believe that empowering women to actively contribute to our economy is essential for achieving balanced and sustainable growth. I believe these initiatives are promising steps in developing a resilient and empowered workforce that will be instrumental in driving the nation’s economic success.”

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Union Budget 2024: Expert Reactions and Perspectives

Jul 24, 2024 by Mansi 0 Comments #Expert Reaction, #Perspectives, #Union Budget 2024

AltGraaf Jayaprakash, K, Chief Growth Officer, AI Growth Limited (Parent company of altGraaf)

We are delighted by abolition of angel tax. This would boost investments in the startup ecosystem and create jobs. We are also delighted to see that government is moving towards parity in taxation between financial asset classes as well as non-financial assets. Additionally, credit boost to MSME sector with guarantees, reduction of corporate tax rate on foreign companies from 40% to 35% and some minor improvements to New tax Regime promotes job & economic growth.”

Ravi Kaushik, Executive Director, Head of Asia Investments, Flourish Ventures

“This is a very progressive step in the right direction by the finance minister. This will not only open up opportunities for startups to freely raise capital from India’s thriving middle class, but also significantly reduce disputes and tax uncertainties. We wholeheartedly welcome this step.”

Mr. Prassann Daphal, CEO, Recyclekaro

“The government’s announcement of a 25% waiver on customs duty for nearly 25 critical minerals is poised to drive demand across various renewable sectors, including energy storage solutions, electric vehicles (EVs), high-tech electronics, defense, and space. This initiative will bolster the refining and processing of these minerals, strengthening a resilient supply chain ecosystem.

Additionally, the establishment of a ‘Critical Mineral Mission’ aims to oversee domestic production, recycling, and international acquisition of critical mineral assets. The mission will prioritize technology development, skilled labor, and an expanded producer responsibility framework, including Extended Producer Responsibility (EPR), which will benefit the e-waste and battery recycling sectors.

This well-planned budget reflects a strong commitment to supporting the critical minerals sector, which is crucial for advancing greener transformations.”

Mr Tushar Choudhary, Founder & CEO, Motovolt Mobility Pvt. Ltd.

‘We commend the Union Budget 2024-25 for its announcement to fully exempt customs duties on 25 critical minerals, including lithium, essential for EV battery manufacturing. This move is expected to significantly reduce battery costs and bolster domestic manufacturing capabilities. Furthermore, the incentives for hiring first-time employees are a welcome initiative that will stimulate job creation in the manufacturing sector. This initiative will not only help build a skilled workforce but also support our expansion plans by ensuring we have the talent needed to drive innovation and productivity.The ‘Purvodaya’ plan is another robust initiative that underscores the government’s commitment to fostering growth and innovation across the eastern states. By reducing import costs and encouraging regional development, this plan represents a significant step forward for our industry and the economy as a whole. Additionally, our products in the micro-mobility segment will benefit greatly from these measures, enabling us to offer more affordable and efficient solutions to consumers. This will particularly enhance our ability to cater to the urban and semi-urban markets, providing sustainable and cost-effective transportation options.Overall, these measures reflect a forward-thinking approach that will benefit the entire EV ecosystem, from manufacturers to consumers, and contribute to sustainable economic growth. By addressing critical supply chain issues and promoting regional development, the government is laying a strong foundation for the future of electric mobility in India. We are optimistic that these initiatives will drive significant advancements in technology and infrastructure, ultimately leading to a cleaner, greener, and more prosperous nation.’

Tom Joseph, Co-Founder of USDC Global

“The allocation of Rs 1.48 lakh crore in the budget is a positive move. As a company focused on designing skill-based courses for Higher Education Institutions, I appreciate the government’s emphasis on skill development and the introduction of new courses and programs aligned with this goal. We are eager to collaborate with the government in creating these new courses.

Students studying abroad, particularly in Ukraine, Israel, the UK, Canada, and Australia, have recently faced major challenges. Therefore, the government’s decision to offer education loans of Rs 10 lakh for pursuing higher studies in India is a commendable step. This initiative will encourage students to study in India where they will have a conducive learning environment and eventually it will reduce brain drain. Additionally, the 3% reduction in education loan interest will alleviate financial stress for students and allow them to focus more on their studies.

Announcing internship opportunities to 1 crore youth in 5 years by the government is a transformative step, this will provide youths an invaluable exposure to diverse professional environments. This industry engagement will enhance employability and practical skills

As an Edtech startup we believe that the removal of the Angel Tax by the government is anticipated to significantly benefit the Edtech sector. This announcement is expected to attract more domestic and international investors. This influx of capital can help Edtech companies expand their operations. It may also inspire more individuals to launch new Edtech ventures”.

Suman Bannerjee, CIO, Hedonova

The Union Budget 2024, while aiming to balance growth and equity, presents a complex mix of policies with varied impacts. The revised income tax slabs, offering relief for the middle class, are countered by significant changes in capital gains taxation. Short-term capital gains tax has been increased to 20%, and long-term capital gains tax is now 12.5% for specific assets, potentially discouraging investment. Additionally, the hike in Securities Transaction Tax (STT) from 0.1% to 0.2% for equity transactions and increases for futures and options trading could further dampen market activity and trading volumes.

Substantial allocations for infrastructure, with a capex outlay retained at Rs 11.1 lakh crore, and job creation initiatives, including a Rs 2 lakh crore allocation over five years, signal a strong commitment to economic stimulation. However, the efficacy of these measures depends heavily on effective implementation and the actual absorption of funds. The budget also emphasises women-centric schemes, with Rs 3 lakh crore allocated, and agricultural resilience, with Rs 1.52 lakh crore for agriculture and allied sectors, reflecting an inclusive growth agenda.

Despite these initiatives, the fiscal deficit target of 4.9% of GDP raises concerns about fiscal prudence and debt sustainability, particularly in a global economic environment fraught with uncertainties. The commitment to lowering duties for properties purchased by women and setting up industrial parks indicates a push towards socio-economic equity, but the actual impact remains to be seen. Ultimately, the Budget’s success hinges on efficient execution and the government’s ability to navigate external economic challenges while achieving its ambitious domestic goals.

Sandeep Lanjewar, Director, Palladium India

The budget announcement has brought smiles to MSMEs with its focus on sector development, employment promotion, and skilling. To address the need for better MSME-specific credit access, the government has introduced measures such as setting up 24 SIBDI branches, enhancing the Mudra Loan limit to INR 20 lakh for re-applicants who have repaid earlier loans, and providing up to INR 100 crore in guarantee cover for each applicant MSME through a credit guarantee scheme for the manufacturing sector, without collateral or third-party guarantees. The government has also reaffirmed employment and skilling as priority areas, with a 5-job scheme agenda worth INR 2 lakh crore, a revision of the Model Skill Loan scheme with additional allocations for e-vouchers for loans up to INR 10 lakh in domestic institutions, aiming to equip youths with skills at early stages in their education journey to build a future-ready workforce.

Furthermore, the government’s focus on infrastructure to promote skilling and MSMEs is a key highlight of the budget. Proposed interventions include upgrading 1,000 ITIs, establishing e-commerce hubs for accessing international markets, enhancing digital public infrastructure for credit, e-commerce, and legal compliance, and investing in infrastructure to support women-led development. Additionally, the budget proposes a new assessment model for MSME credit by public sector banks, which will rely on the digital footprint of MSMEs rather than the traditional asset and turnover criteria. This model is seen by many as a unique selling point of the budget. Overall, the budget appears promising for the country’s economic growth over the next five years.

Kailas Patil, Director, Palladium India

I welcome the Union Budget’s increased capital allocation for the Ministry of Road Transport and Highways (MoRTH) in FY25, rising to ₹2.78 lakh crore from ₹2.70 lakh crore in FY24. This significant investment underscores the government’s commitment to enhancing the nation’s infrastructure and addressing critical transportation needs. This investment will make our roads better, including national highways and expressways.

The Ministry has been allocated ₹ 270 crore in Road Transport and Safety fund for road safety initiatives, marking a 6.5 % increase from the previous years revised allocation of ₹ 256 Crore. This funding is intended to support safety programs, provide relief to accident victims, and enhance the safety infrastructure on national highways. The focus on road safety measures, backed by targeted funding for the installation of intelligent traffic systems and comprehensive safety programs, aligns perfectly with our Road Safety Practice to reduce road accidents and enhance commuter safety.

The expansion of Metro Rail projects and the emphasis on electric vehicle infrastructure further underscore the government’s commitment to sustainable and efficient public transport systems.

The 2024 Budget is a significant step forward, and as industry stakeholders, it is our collective responsibility to leverage these investments to build a better transport system that’s safe, efficient, and works for everyone.

Md. Sajid Khan, Director – India, ACCA (Association of Chartered Certified Accountants)

“The Union Budget for FY25 marks a significant milestone in the government’s ongoing efforts to drive India towards a ‘Viksit Bharat’ by 2047. Building on the momentum from the interim budget, the FY25 Union Budget demonstrates the Indian government’s sustained commitment to skilling, education, and employment with a substantial allocation of Rs 1.48 lakh crore towards these critical areas. As India continues on this growth trajectory, the role of skilled accountants will be crucial in driving business innovation, ensuring financial sustainability, and navigating emerging technologies in fintech, AI and sustainable accounting practices. Additionally, the introduction of a new assessment model for MSME credit, leveraging digital footprints, has the potential to unlock financing opportunities for this vital sector.

We are encouraged by the government’s efforts to create a future-ready workforce in accounting and finance, equipped with the skills needed to navigate emerging technologies and drive business innovation. Overall, this budget strikes a balance between short-term growth imperatives and long-term strategic vision, and we believe it will have a positive impact on India’s economy.”

Prajodh Rajan, Co-Founder & Group CEO, Lighthouse Learning

“The FY25 Union Budget marks a pivotal step in addressing the educational, skilling and employment needs of our nation. The significant allocation of ₹1.48 lakh crore for education, employment, and skilling reflects a strategic investment in our country’s future, particularly in equipping our youth with the skills necessary to thrive in an evolving job market. The comprehensive scheme for internships with top companies for the country’s youth is a visionary approach that will provide our youth with invaluable hands-on experience and exposure to real-world challenges. However, while the budget has taken commendable strides in terms of skilling, the absence of specific measures for early childhood education remains a critical gap. We hope that the future budgets will place a stronger emphasis on this foundational phase to ensure holistic development for India’s young generation.

As a franchise-run business with women entrepreneurs, we are encouraged by initiatives increasing women’s workforce participation and fostering an inclusive environment. Supporting women entrepreneurs is both a social and economic imperative, as women-led businesses can significantly contribute to growth. By facilitating market access and skilling opportunities for women, the government nurtures a robust ecosystem where women can thrive and lead with confidence. With effective implementation and collaboration between stakeholders, we are confident that we can create a world-class education system that prepares India’s students for success in the 21st century.”

Rajesh Khosla, CEO, AGI Greenpac

“The Union Budget 2024 presents a promising outlook for India’s manufacturing sector. Increased allocations for infrastructure and technology are significant steps towards solidifying India’s position as a global manufacturing hub.

The focus on employment-linked skilling initiatives is particularly encouraging. By incentivizing job creation, the government is empowering young talent and fostering a more productive workforce.

We are optimistic that these measures will create a robust manufacturing ecosystem and contribute to India’s economic growth. AGI Greenpac is well-positioned to capitalize on these opportunities and further expand its operations.”

Professor Manish Gangwar, Indian School of Business, Executive Director-ISB institute of Data Science

“The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, stands out for its strong emphasis on job creation. Through a series of innovative schemes and forward-thinking policies, this budget aims to generate substantial employment opportunities and address the existing skill gap in the workforce.

A key highlight is the introduction of three “Employment Linked Incentive Schemes” designed to provide direct financial support to both employees and employers. These schemes include support for first-time employees, incentives for manufacturing sector jobs, and financial reimbursement for employers hiring additional staff.

Recognizing the critical role of skill development and practical training in enhancing employability and productivity, the budget emphasizes the upgradation of ITIs and internships in top companies. Over the next five years, 1,000 Industrial Training Institutes (ITIs) will be upgraded, focusing on improving outcomes and quality. Additionally, 1 crore youth will gain valuable on-the-job experience through internships in top companies. The budget also plans to develop investment-ready “plug and play” industrial parks in or near 100 cities to stimulate job creation and a conducive environment for businesses to set up operations and generate jobs.

The Union Budget 2024 is a forward-looking plan. By introducing targeted employment schemes, enhancing skill development programs, and developing industrial parks, the government aims to not only provide immediate employment opportunities but also focus on a skilled and resilient workforce for the future to drive India’s long-term economic growth.”

Professor Bhagwan Chowdhry, Indian School of Business (ISB)

The Union Budget did not offer big surprises, but a positive way of looking at it is that a few good initiatives that we expected came through. The removal of Angel Tax was an anticipated but welcome move for startups. A focus on job growth by providing incentives to the private sector, for example, paying the first month’s salary, was also welcome. The focus on skilling is also essential for India. So the language of the Union Budget is consistent with that, but this ultimately matters if it is executed well. Here the details of how this will be achieved will evolve over time. This is not a simple nut to crack, but is absolutely essential.

Satyendra Prasad Narala – Managing Director, Regency Ceramics

“The Finance Minister’s announcement of a ₹10 lakh crore investment in urban housing through PMAY Urban 2.0 is a significant boost for India’s real estate sector and related industries such as Ceramics and Tiles Manufacturing. This substantial infusion, including ₹2.2 lakh crore to rejuvenate the affordable housing segment and is expected to drive demand for construction materials and stimulate growth in sectors like ceramics, fostering innovation in construction technologies for affordable housing.

Moreover, the enhanced focus on middle-class families is likely to encourage diverse housing types and urban design solutions.

In tandem with this, the focus on MSMEs is commendable. The introduction of a credit guarantee scheme for MSMEs in the manufacturing sector, along with support for E-commerce export hubs, will fuel growth and competitiveness. However, while welcoming these measures, we urge additional support for sectors like Ceramics to ensure sustainable growth.”

Mr. Umesh Revankar, Executive Vice Chairman, Shriram Finance

“The Union Budget, as expected, was in-sync with the announcements made in the interim budget earlier this year. The budget focusses particularly on Employment, Skilling, MSMEs, and the Middle Class with sustained efforts to be made across nine specific areas to achieve the vision of a Viksit Bharat.

This budget provides special attention to MSMEs and manufacturing, particularly labour-intensive manufacturing for which a solution that includes financing, regulatory changes and technology support for MSMEs to help them grow and also compete globally has been devised. While a number of initiatives have been taken by the Government for the MSME sector, the most significant announcement is the development of a new credit assessment model for MSMEs based on digital footprints easing their access to funds.

It is heartening to see that apart from the focus on Employment and Skilling of the youth, the Finance Minister extended their extensive support to the agriculture sector by committing to the development of large-scale clusters near consumption areas as critical strategies to improve supply chain efficiency in agriculture.

Infrastructure development has been at the core of India’s growth and the Government’s provision of Rs. 1.50 lakh crores for long-term interest free loans to support the states in their resource allocation and provision of viability gap funding, favourable policy and regulations will help attract private investments in the sector.

This budget, in a nutshell, has identified key areas which need to be supported to ensure all-round growth, identified issues that are hampering the growth and looked at finding logical, rational and viable solutions for these issues.”

Mr. Raman Bhatia, Founder & MD, Servotech Power Systems Ltd

“The Union Budget 2024 was built on the foundation of Viksit Bharat. A strong focus was put on solar energy. The remarkable achievement of PM Surya Ghar Muft Bijli Yojana with 1.28 crore registrations and 14 lakh applications reflected the growing public awareness and alignment with the government’s vision of a solar-powered India. As a leading solar panel manufacturer, this motivates us to make solar energy more adoptable, affordable, and accessible nationwide. The exemption of customs duty on lithium, a crucial mineral used in the renewable energy sector, will reduce costs, making lithium-based technologies more affordable. The pumped storage policy which includes pumped storage projects for electricity storage will facilitate the smooth integration of the growing share of renewable energy into the overall energy mix, paving the way for a sustainable energy future. Imposing customs duty on the import of solar glass for solar cell and module production will promote domestic manufacturing and boost the economy. The increase of BCD on non-biodegradable PVC flex banners from 10% to 25% is a commendable step towards environmental conservation. Power projects including setting up of a new 2400 MW power plant at Pirpainti, Bihar will add Bihar in the category of solar powered states, overall enhance the power quotient, add to the existing power capacity and create jobs. Overall, the budget highlighted the remarkable changes that will contribute to the development of a nation we all envisioned.”

Mr. Ajinkya Firodia, Managing Director, Kinetic Engineering Ltd.

“The Honourable Prime Minister has announced various good schemes and initiatives aimed at sustaining and accelerating India’s growth. Noteworthy among these is the reduction in corporate tax rates for foreign companies, a move that promises to facilitate the influx of technology and bolster the Make in India initiative.

The NPS Vatsalya program is another exemplary initiative, enabling parents to invest on behalf of their children, who can access these funds upon reaching adulthood. This program encourages savings for future generations, acknowledging that while individuals may neglect to save for themselves, they are often diligent in securing their children’s futures.

Additionally, the simplification of FDI rules is a strategic measure to attract foreign investment, strengthen the Rupee, and enhance technological self-sufficiency in the long term. A substantial budget of ₹2.66 lakh crore has been allocated for rural development, including infrastructure improvements, which is expected to drive overall economic growth and prosperity.

The government’s continued focus on digitization is evident in the announcement to digitize land records, a move poised to benefit the real estate sector. The special attention given to MSMEs, the backbone of India’s manufacturing sector, is also commendable. The introduction of a credit guarantee scheme for MSMEs and the facilitation of term loans for machinery purchases are crucial steps to address the challenges of working capital availability and encourage expansion.

India’s economic growth remains a beacon of resilience, underpinned by the government’s vision to promote MSMEs, rural development, and foreign investment. These measures collectively contribute to a stronger, more self-sufficient nation with a long-term perspective.

On the other hand, The silence on extending the FAME scheme or similar EV adoption incentives is concerning for the auto industry’s electric vehicle push. To achieve a greener India, we urge the government to swiftly address this by continuing and strengthening existing programs like EPMS or FAME subsidies.”

Mr. NS Rao, Group CFO, Ramky Group

We applaud the Finance Ministry and the Indian government’s enduring dedication to economic progress. Their decision to retain the Rs 11.11 lakh crore capex outlay for infrastructure over five years, alongside fiscal support, is warmly welcomed. This commitment, along with attracting private investment through viability gap funding and a market-driven financing framework, promises a bright future for infrastructure. Furthermore, the allocation of 3.4% of GDP to infrastructure, along with Rs 1.5 lakh crore in long-term, interest-free loans to states, empowers the industry to innovate and deliver cutting-edge projects that drive economic growth and job creation. The significant aspect is the emphasis on plug-and-play industrial parks, water, sewage and municipal solid waste treatment, paving way for SDG fulfillment and circular economy.

Mr. Y. R. Nagaraja, Managing Director of Ramky Infrastructure Limited

“Ramky Infrastructure Limited commends the Government of India’s vision for propelling overall economic growth. The Viksit Bharat mission’s nine priorities unveil a wealth of opportunities for both public and private entities through enabling policies and fiscal support.

One of the most important aspects of the infrastructure industry is the government’s unwavering commitment to skill development and the substantial capital expenditure outlay of ₹11.11 lakh crore designated for infrastructure developments. The sanctioning of twelve “plug and play” industrial parks, fully equipped with necessary resources promises to significantly enhance the nation’s manufacturing capabilities and generate a surge in employment opportunities. The roadmap for developing similar parks in 100 cities indicates a decentralised approach to industrial development, one that actively incorporates private-sector partnerships.

Furthermore, we applaud schemes like PM Awas Yojana, which addresses housing needs in both urban and rural areas. The government’s commendable allocation of Rs 2.66 lakh crore for rural development will facilitate the provision of essential infrastructure. In conclusion, Ramky Infrastructure Limited firmly believes the 2024 union budget paves the way for inclusive and sustainable growth across the nation”.

Dr Azad Moopen, Founder & Chairman, Aster DM Healthcare

With 66% of the Indian population still under the age of 35 and an estimated 7-8 million youth entering the job market annually, Union Budget 2024-25 provides a much needed impetus to advancing employment opportunities and youth upskilling, supported by focus on comprehensive development for the country. Although healthcare did not seem to have a major focus this time, it is promising to see the 12.5% hike in budget allocation for the sector at Rs. 89,287 crores as compared to the last Budget.

In a period of maintaining the status quo, the government is taking bold strides with initiatives outlined in the Interim Budget 2024, including the establishment of new medical colleges, the promotion of vaccines for cervical cancer, expanded maternal and child care schemes, and the innovative “You Win” platform for immunisation.

Additionally, the proposed reduction in customs duties on X-ray tubes and flat panel detectors for domestic X-ray machine production, alongside the exemption of three cancer medicines from customs duty, marks a significant relief for cancer patients nationwide. This progressive budget underscores a commitment to fostering inclusive growth within the healthcare sector, striving to bridge the rural-urban divide and ensure equitable access to essential services.

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Union Budget 2024: Experts Share Their Reactions

Jul 24, 2024 by Mansi 0 Comments #Expert, #Reaction, #Union Budget 2024

Mr Kuldeep Jain, Founder and CEO, Build Capital

“Many urban housing development projects would need short or mid – term financing, which can be filled up by financial institutions. This will give a fillip to India’s untapped financing market in the real estate sector. Further, the rental housing scheme for industrial workers would also accelerate rental housing projects.”

Avneet Singh Marwah, CEO of SPPL, Exclusive brand licensee of Blaupunkt TVs in India

The Union Budget 2024 demonstrates a strong commitment to job creation in the manufacturing sector. By providing targeted incentives for EPFO contributions, the government aims to generate significant employment opportunities for both employers and the 30 lakh young people entering the workforce. This initiative reflects a strategic approach to meeting employment needs in our rapidly evolving economy.

With a substantial allocation of INR 2 lakh crore towards skilling programs, the budget emphasizes equipping our workforce with the skills necessary to succeed in a competitive global market. The focus on Micro, Small, and Medium Enterprises (MSMEs) is further supported by the introduction of a credit guarantee scheme, designed to enhance the financial stability and growth potential of the vital enterprises.

Additionally, the budget’s focus on the middle class is evident through tax relief measures, such as an increase in the standard deduction for salaried individuals and additional benefits under the new tax regime. These measures aim to boost disposable income and stimulate consumer spending, thereby fostering economic growth.

In summary, the Union Budget 2024’s initiatives in the manufacturing sector represent a forward-thinking strategy to create sustainable jobs, enhance skills, and support MSMEs. These measures are poised to play a crucial role in empowering our youth, strengthening the middle class, and guiding the nation towards a prosperous future.

Prerna Kalra, Co-founder and CEO Daalchini Technologies

The Union Budget 2024 marks a significant and encouraging shift towards inclusive and equitable growth. The budget’s emphasis on job creation through EPFO contribution incentives promises to generate opportunities for 50 lakh youth, including a substantial number of women. This is a pivotal moment, opening doors for greater female participation and advancement in the workforce.

A new centrally sponsored scheme to skill 20 lakh youth over the next five years, coupled with the upgrade of 1,000 ITIs to offer industry-relevant courses, will prepare a workforce ready for emerging sectors. This initiative is particularly valuable for women seeking to acquire new skills and excel in various fields.

Moreover, the facilitation of term loans for machinery purchases is a welcome development for entrepreneurs. This support will help scale up operations, invest in innovative technologies, and boost productivity, driving growth and success for businesses.

The allocation of over 3 lakh crore for schemes benefiting women and girls is especially inspiring. It highlights a robust commitment to supporting women entrepreneurs and addressing their needs across various sectors. This investment in women’s empowerment will foster entrepreneurship and contribute to broader socio-economic development.

Overall, the Union Budget 2024 reflects a progressive vision for India, emphasizing job creation, skill development, and inclusive growth.

Rajat Grover, Founder & CEO, Elite Marque

The Budget 2024 introduces new opportunities for vegetable production and its supply chain. By incentivizing innovation and streamlining the market entry process, this initiative aims to boost production and improve the efficiency of distribution networks. Startups in agri-marketing and logistics will play an important role in connecting farms to homes, using technology to optimize supply chains and ensure fresh produce reaches consumers efficiently.

Due to the hike in global interest rates, investments in Indian agritech startups fell by 45% between FY 22 and FY 23. With this amendment, we expect increased visibility from VCs and investors, seeing the government take initiatives in this space. More agriculture-focused incubation centers should emerge in Tier 2 and Tier 3 cities, providing startups with direct benefits in building technology, mentorship, grants, and R&D. This will also encourage talented individuals from these regions to contribute to the agritech sector, fostering innovation and growth.

The MSME credit scheme will provide vital financial support to new ventures. With easier access to credit, startups can invest in infrastructure, technology, and skilled manpower, accelerating their growth and contributing significantly to economic revitalization. This approach not only supports scalability but also strengthens the economy by fostering a competitive and resilient MSME sector. We will see more business initiatives from Tier 3 and Tier 4 cities, the scheme will attract more talented individuals from these areas, enriching the startup ecosystem with diverse and dynamic talent.

Ratan Singh Sehgal, MD, Hybon elevators & escalators Pvt Ltd.

The budget’s focus on developing cities as ‘Growth Hubs’ through economic and transit planning is an important initiative. By partnering with states and implementing town planning schemes, this approach aims to upgrade urban infrastructure and stimulate economic development at the micro level. The expansion of the tourism corridor will benefit the hotels and restaurant industry. Increased construction of hotels, motels, and tourism spots will expand global footprints and stimulate local economies. This will lead to job creation and attract investments from corporates into these states. The government has also planned to invest ₹26,000 crore in Bihar, which will also see improvements in infrastructure such as airports and highways.

Job creation and manufacturing in Tier 3 and 4 cities will attract and retain local talent, fostering economic growth and development. The government’s plan to invest in these regions, including the Amritsar Kolkata Industrial Corridor and the development of an industrial node at Gaya, aims to generate economic opportunities and contribute to the vision of Viksit Bharat. Infrastructure development at the micro level will enhance connectivity and create a conducive environment for businesses to thrive, further driving economic activity and job creation.

Union Budget 2024 represents an approach to addressing India’s urban housing needs and supporting economic growth. The allocation of ₹10 lakh crore for Urban 2.0 is notable, with plans to construct 1 crore (10 million) houses for the urban poor, alongside an additional 3 crore houses under the Pradhan Mantri Awas Yojana (PMAY). This commitment will improve living conditions across both rural and urban areas, reflecting the government’s dedication to enhancing housing accessibility and quality.

In the manufacturing sector, the introduction of the Credit Guarantee Scheme for MSMEs, a new assessment model for MSME credit, and the enhanced limit for Mudra Loans under the ‘Tarun’ category are significant measures. These initiatives will provide support to small and medium enterprises, facilitate job creation, and strengthen the economic foundation. Additionally, Scheme B, which offers incentives for EPFO contributions for first-time employees and employers for the first four years, is expected to benefit 30 lakh youth, further boosting employment.

Overall, the Union Budget 2024 sets a path towards a prosperous and inclusive future for India, with targeted investments and strategic initiatives aimed at enhancing economic opportunities across the country.

Dr. Gautam Kanodia, Co-Founder of Kanodia Group

“The government’s strategic focus on infrastructure, with an allocation exceeding INR 11.11 lakh crore, approximately 3.4% of India’s GDP, is highly commendable. This significant investment is set to not only enhance the nation’s infrastructure but also generate numerous employment opportunities, particularly within housing projects. Such initiatives are poised to catalyze economic growth and elevate living standards, The government’s commitment to inclusive development is clearly reflected in these provisions.

Sehul Bhatt, Director-Research at CRISIL Market Intelligence and Analytics

“Government estimates an investment of ~Rs 10 lakh crore under the Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0 for an additional 1 crore affordable houses over the next 5 years. The central assistance of Rs. 2.2 lakh per house announced in the Budget is higher than the Rs. 1.5 lakh per house disbursed during the last 8 years. Three crore additional houses planned under the PM Awas Yojana in rural and urban areas are expected to support cement demand.

Allocations under PMAY-U and Pradhan Mantri Awas Yojana-Gramin in the fiscal 2025 budget are higher than the revised estimates of fiscal 2024 by ~36% and ~70%, respectively. This will translate to ~20 million tonnes of cement demand in the current fiscal, or 4-6% of pan-India demand as of FY24. Further, allocations under PMAY-U and PMAY-G in the fiscal 2025 budget are ~15% and ~8% higher than the allocations in the interim budget.

Under the Pradhan Mantri Gram Sadak Yojana, the launch of phase-IV to provide all-weather connectivity to 25,000 villages is also a positive development for the sector and will support incremental cement demand. Given housing forms 55-60% of total cement demand, the impetus to affordable housing through the Pradhan Mantri Awas Yojana will keep cement demand on track for 7-8% growth in the current fiscal.”

Mr. Pradeep Bakshi, MD & CEO, Voltas Limited

“The Union Budget 2024 reflects a forward-thinking approach that will significantly benefit the consumer durables industry and bolster our efforts towards sustainable development. The full exemption of customs duties on 25 critical minerals, including lithium, copper, cobalt, and rare earth elements, is a substantial boost for sectors reliant on these materials, such as high-tech electronics and renewable energy. This policy will not only enhance the availability of these essential resources but also stimulate domestic processing and refining capacities, driving innovation and reducing costs.

Furthermore, the emphasis on energy transition, including the expansion of exempted capital goods for solar panel manufacturing, aligns well with Voltas’ commitment to sustainability. While the non-extension of exemptions for certain solar components reflects a move towards encouraging domestic manufacturing, it also underscores the need for continued investment in domestic production capabilities.

The budget’s focus on substantial investment in manufacturing, presents a promising outlook for the industry. Voltas is optimistic about the positive impact of these policies on the electronics sector and looks forward to contributing to these ambitious goals.”

Mr. Rajiv Gupta, Managing Director, Wave Group

The Budget 2024-25 is very encouraging for the real estate sector, focusing on infrastructure development in rural and urban areas. The thrust on building three crore additional housing under the PM-AWAS yojana is an essential step in bridging the housing gap for the poor and middle class. The Rs 10 lakh crore overall allocation to urban housing will bolster the growth momentum. The suggestion to state governments to lower stamp duties, particularly for properties purchased by women, will undoubtedly boost sales. The budget lays the foundation for sustainable real estate growth, promoting cities as growth hubs of new India.

Dr. Atish, Director of JAGSoM, on the Union Budget’s focus on skilling, education, and MSMEs

“The Union Budget 2024-25 demonstrates a strong commitment to education, skill development, and entrepreneurship, which are crucial for India’s economic growth and global competitiveness. The allocation of ₹1.48 lakh crore for education, employment, and skilling is a significant step towards building a knowledge-based economy.
The revision of the Model Skill Loan Scheme and the introduction of e-vouchers for higher education loans are welcome moves. These initiatives have the potential to significantly increase access to quality education and address the growing demand for skilled professionals in India’s expanding digital economy.
The ambitious internship program targeting 1 crore youth over five years will go a long way in bridging the skill gap. This initiative can enhance graduate employability. As per the World Economic Forum, 50% of all employees will need reskilling by 2025 due to the adoption of technology. This internship program could play a vital role in preparing our workforce for future job markets.
The Anusandhan National Research Fund, with a financing pool of ₹1 lakh crore, is a crucial step towards boosting India’s research capabilities. This is particularly important as India aims to increase its R&D expenditure from the current 0.7% to 2% of GDP.
The focus on MSMEs through the credit guarantee scheme is commendable. MSMEs contribute about 30% to India’s GDP and employ over 111 million people. Strengthening this sector will have far-reaching economic impacts.
As educators, we are encouraged by these initiatives. They align with the need for industry-relevant education, industry exposure, and innovation. However, the budget could have addressed issues like the facilitation of International faculty teaching in India and thus help reduce the no. of Indian students going abroad for Higher Education which currently stands at 1.5 million a year.
Also, a social stock exchange for private universities could have enabled fund flow, in a sector having limited access to funding.”

Mahesh Fogla, Executive Director, Patel Integrated Logistics Limited

“The budget’s initiatives to reduce stamp duty will lower costs for warehouses and other facilities, boosting infrastructure development. Increasing Mudra loan limits from 10 lakhs to 20 lakhs will enhance support for MSMEs, fostering sustainable growth. The setting up of an Integrated Technology Platform to improve the outcome under the Insolvency and Bankruptcy Code (IBC) will facilitate the recovery of outstanding for operational creditors too. Furthermore, discouraging excessive speculation activity in the stock market will redirect energies towards other economic activities, contributing to a more sustainable growth of the economy.”

Srivardhan Khemka, Director, Sanjivani Paranteral

“The Finance Minister has shown a strong commitment to facilitating higher participation of women in the workforce in the Budget 2024. As a company with 60% women in our workforce these measures will undoubtedly create a more supportive and inclusive environment for women, enabling them to contribute more effectively to the economy. Additionally measures such as organizing women-specific skilling programs and promoting market access for women, SHG enterprises is a step in the right direction. By focusing on skilling and market access, the government is empowering women to not only enter but thrive in the workforce. We look forward to supporting and participating in these initiatives, which will enhance the capabilities of our female employees and, in turn, drive the overall growth and success of our industry.”

Mr Deepak Gupta, General Partner, WEH Ventures

“To bolster the Indian startup ecosystem, the proposal to abolish the so-called Angel Tax for all classes of investors is a significant step forward. The Angel Tax has long been a point of contention, discouraging early-stage investments due to the perceived risk and additional financial burden it imposed. Eliminating this tax can foster a more conducive environment for startups, encouraging more investors to participate and support innovative ventures.
Additionally, the hike on Long-Term Capital Gains (LTCG) for unlisted equities could be net positive for investors. By narrowing the tax rate delta between listed and unlisted equities, this move can create a more level playing field and attract more investments into venture capital and private equity. This alignment can benefit the broader investment landscape, making it more attractive for investors to diversify into unlisted equities, thereby providing crucial funding to startups and growth-stage companies.
Overall, these measures can drive more investment into the Indian startup ecosystem, providing the necessary capital for innovation and growth while simplifying the tax landscape for investors.”

Rajat Mehta, Chairman, JITO Incubation and Innovation Foundation (JIIF)

“The decision to abolish Angel Tax for all classes of investors is a positive step towards fostering a more supportive environment for startups in India. It aims to reduce financial hurdles for early-stage investments and boost investor confidence, which is crucial for stimulating entrepreneurial growth and innovation. This move signals India’s commitment to nurturing startups and attracting investments, potentially leading to job creation and economic expansion in the long run. Additionally, the ₹1,000 crore venture capital fund for the Space Economy highlights the government’s proactive approach in supporting strategic sectors and encouraging entrepreneurial ventures.”

Shahzad Nathani, Head of Operations & Partnerships, Shardeum

This is a commendable step by Finance Minister Nirmala Sitharaman towards upskilling and empowering the youth over the next five years. Blockchain, web3, and other emerging technologies are crucial in this initiative as they represent the future of industry and commerce. By integrating these technologies into our skilling programs, we ensure that our youth are not only prepared for today’s job market but are also equipped to drive innovation and efficiency in the industries of tomorrow. These technologies provide transparency, security, and decentralization, which are essential for fostering trust and driving economic growth in the digital age. Furthermore, this initiative will make the youth internship-ready for some of the top companies in India, contributing to a Viksit Bharat.”

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Expert Reactions to the Union Budget 2024

Jul 24, 2024 by Mansi 0 Comments #Expert, #Reaction, #Union Budget 2024

Mr. Prashant Ruia, Director, Essar Capital

“The Union Budget has articulated nine strategic priorities aimed at driving robust economic growth, create significant job opportunities and improve the employability of youth. Maintaining a fine balance between the requirement of energy transition & needs of energy security, is commendable. By investing in innovative and clean technologies, the aim clearly is to shape a dynamic, resilient, and future-ready Indian economy.”

Mr. Anil G Verma, Executive Director and CEO, Godrej & Boyce

The first full budget of the new Government was a balanced one with the Government delicately balancing the needs of the economy through its focus on the nine priority areas of agriculture, employment, inclusive development, manufacturing and services, urban development, energy, infrastructure, innovation and R&D, and next generation reforms.

The reduction in FY25 fiscal deficit target from 5.1% to 4.9% is macro-positive. The capex outlay kept unchanged as Rs.11.1 lakh crore, shows the government’s unwavering focus on investments to drive the economy forward.

With a provision of Rs.1.48 lakh crore, employment and employability have been given a major fillip which indeed is the need of the hour. A new scheme offering internship opportunities at 500 top companies for 1 crore students over the next five years will go a long way in boosting employability.

The Government’s intention to partner with the private sector to develop small modular reactors is a good step emphasising the importance of nuclear energy in India’s energy mix. Moreover, the Rs.1000 crore venture capital fund to promote space technology is a welcome step in encouraging greater participation of the private sector in India’s burgeoning space sector, where we have the potential of being the global leader for satellite launches.

The Budget has managed to pave the way towards an inclusive economic growth, through measures that will encourage greater private sector participation while maintaining the fiscal glide path to 4.5% fiscal deficit in FY26.

A slew of measures aimed at MSMEs is likely to ease the pressure on this crucial sector of the economy contributing 30% to India’s GDP.

The increase in standard deduction from Rs.50,000 to Rs.75,000 and favourable change in the tax slabs under new regime will increase disposable income in the hands of consumers which is likely to boost consumption. This will provide the necessary impetus towards larger private investments in capacity building.

The Godrej Enterprises Group looks forward in contributing towards the vision of Viksit Bharat 2047.

Saurabh Marda, Co-founder and Managing Director Freyr Energy

“The recent budget has been highly favorable for the energy sector, with the government setting an ambitious goal of achieving 500 GW of renewable power by 2030. A key component of this plan is encouraging homeowners to adopt solar energy, facilitating a swift transition to solar power. To support this, the government has allocated ₹70,000 crores in subsidies for homes that switch to solar energy. This is a crucial and forward-thinking initiative for the country’s future, and we express our gratitude to the government for taking this significant step”.

Dr. Saloni Wagh, Director, Supriya Lifescience

“This budget represents a pivotal move towards a Vikasit Bharat, emphasizing progress through targeted support for Garib (poor), Mahilayen (women), Yuva (the youth) and Annadata (farmers). Key focus areas include employment, skill development, MSME growth—vital for GDP and exports—and middle-class upliftment.

The full exemption of basic customs duties on three cancer treatment medicines is a notable advance, promising substantial benefits for both the pharmaceutical sector and cancer patients. With a ₹2,143 crore allocation under the Production Linked Incentive (PLI) scheme, India is set to lead globally in pharmaceuticals, with the domestic market projected to reach USD 130 billion by 2030. These steps are vital for achieving our $5 trillion GDP goal in three years and $7 trillion by 2030.

Moreover, the Prime Minister’s package, Significant funds—₹2 lakh crore for employment and skill development, and ₹1.48 lakh crore for education—are allocated to drive job creation. Enhanced focus on women’s workforce participation through dedicated hostels and targeted skilling programs is also commendable. These initiatives are expected to deliver a skilled workforce crucial for innovation and precision industries.

The budget also prioritizes innovation, R&D, and education, fostering advancements across public and private sectors. The government’s commitment to these areas aims to boost research, enhance education quality, and develop a competent workforce. This emphasis will propel India’s technology and manufacturing sectors, positioning the country as a major global manufacturing hub.”

Shri. Rahul V. Karad – Managing Trustee, MAEER, Executive President, MAEER’s and MIT World Peace University & Chief Initiator, MIT SOG

“We welcome the Finance Minister’s progressive budget, which demonstrates a strong commitment to education, employment, and skilling with an allocation of ₹1.48 lakh crore.

This significant investment highlights the government’s dedication to nurturing talent and fostering growth. The introduction of financial support for higher education will help make higher education more accessible. Furthermore, the emphasis on developing digital public infrastructure applications will drive productivity and innovation, benefiting various sectors such as education and health.

We call for clear guidelines on attention towards creative avenues to fund and promote a mandated Industry-Academia Partnership for mutual benefit. This will help boost the initiative to skill one crore youth through internships with top companies and the Prime Minister’s Internship program to provide valuable practical experience and skill development.

Overall, this budget aligns with our vision of ‘Viksit Bharat,’ paving the way for a robust and inclusive development trajectory.”

Sanjay Kumar, CEO, Geospatial World

The Union Budget 2024-25 outlines a forward-looking and ambitious roadmap for India’s growth, innovation, citizen welfare, women empowerment, skill development, and social inclusion.
The country is set on the trajectory of resilient growth through consistent focus on land records digitalization, agro innovation, energy transition and security, rural empowerment, urban regeneration, and strengthening the vital manufacturing sector. Geospatial plays an indispensable role across all these pillars of citizen participation, social development, and engines of economic transformation.
The budgetary outlay has enhanced the role and scope of geospatial in India’s developmental journey.
Geospatial technology and space applications will play an integral role in harnessing the country’s untapped potential, driving equitable socio-economic development throughout the vast and diverse geographic terrain, boosting connectivity, creating opportunities for young entrepreneurs, and bridging the various divides.
Geospatial and its convergence with next-gen technologies will be critical towards achieving the milestone of Viksit Bharat by 2047. It will also accelerate automation, leading to more impactful grassroot solutions and newer business paradigms.
INR 1,000 crore outlay for a Space Economy Venture Capital Fund is a laudable step in the right direction. Through investment, hand-holding, market access, state-of-the-art technology development, and start up incubation, we can foster a conducive New Space ecosystem that will turn India into a global innovation and R&D hub for NewSpace, catapulting the country to greater heights, and diversifying our space offerings.

Saurabh Rai, CEO of Arahas

The budget outlines a comprehensive plan for modernizing land records, which includes the digitization of cadastral maps and GIS mapping of urban land records. This initiative will not only streamline land transactions but also enhance transparency and efficiency in land management. The digitization of land records with GIS mapping is a game-changer for improving accuracy and accessibility. It provides a solid foundation for advanced geospatial analytics, which can leverage to offer innovative solutions in urban planning and resource management.

The Indian government’s commitment to the space economy is evident with the proposal to set up a venture capital fund of ₹1,000 crore. This fund is designed to support private sector-driven research and innovation at a commercial scale. The establishment of a venture capital fund for the space economy opens new avenues for collaboration and innovation. Arahas is excited about the possibilities this creates for developing advanced space technologies and contributing to India’s growing presence in space exploration.

In the realm of agriculture, the budget proposes a digital crop survey in 400 districts, alongside the issuance of Jan Samarth-based Kisan Credit Cards. This initiative is aimed at improving data governance and resource allocation in agriculture. The introduction of the Unique Land Parcel Identification Number (Bhu-Aadhaar) for all lands, along with the survey of map sub-divisions as per current ownership, is a significant step towards modernizing land records. This initiative will simplify land ownership verification and transactions. Modernizing land records through Bhu-Aadhaar and digital surveys will enhance land management efficiency and reduce administrative bottlenecks.

Mr. Ankit Kumar, CEO, Skye Air Mobility

The budget presents big opportunities in agriculture, infrastructure, and deep tech sectors. The focus on boosting agricultural productivity is likely to drive the use of drones for crop surveying, precision spraying, and monitoring. This could transform farming, increase yields, and reduce resource waste.

The major infrastructure investment, especially in Northeast states, opens new doors for drone applications. Drone logistics are expected to play a key role in improving access to healthcare, e-commerce, and other essential services in remote areas. This aligns with the government’s goal of inclusive development and could greatly enhance the quality of life in hard-to-reach regions.

The budget’s emphasis on the deep tech sector is seen as a boost for innovation in drone technology. This could lead to advancements in AI, machine learning, and IoT integration with drones, enhancing their capabilities and expanding their uses. One of the most exciting prospects is using drones for transporting perishable goods. The industry expects that drone technology could cut perishable wastage by over 50%, tackling a major issue in India’s agricultural supply chain.

Mr. Manikanth Challa, Founder & CEO, Workruit

“The Union Budget 2024-25 marks a significant advancement in the government’s approach to employment and skill development. With Rs 1.48 lakh crore allocated for education, employment, and skilling initiatives, the government is clearly committed to empowering the youth and enhancing their employability.

One of the standout announcements is the launch of a scheme to provide internship opportunities to 1 crore youth, including placements in Fortune 500 companies. This initiative offers invaluable industry exposure and practical experience, significantly boosting the employability of our young professionals.

The introduction of the three Employment-linked incentive schemes is a substantial improvement over last year’s broader initiatives. Scheme A’s Direct Benefit Transfer of 1-month salary up to Rs 15,000 for first-time employees registered in EPFO provides immediate financial support. Scheme B, which incentivizes job creation in manufacturing, offers direct benefits to both employees and employers, fostering industrial growth. Scheme C’s support to employers, with reimbursements up to Rs 3,000 per month for EPFO contributions for each additional employee, is a strong incentive for workforce expansion.

Upgrading 1,000 industry training institutes in a Hub and Spoke arrangement will bridge the skill gap and prepare youth for future jobs. The emphasis on women-led development and AI-driven upskilling for women highlights a commitment to gender equality and inclusive growth.
At Workruit, we are excited about these progressive measures and look forward to leveraging them to revolutionize India’s recruitment landscape through AI and digital tools.”

Mr. Madhavan Menon, Executive Chairman, Thomas Cook (India) Limited (Thomas Cook, SOTC, Sterling Holidays and TCI)

This year’s Union Budget has opened new doors to development, specifically for domestic and inbound tourism. With the focus on special development funds/ programs for the socio-cultural-religious potential of iconic temple corridors including Gaya’s Vishnupad & Mahabodhi temples into world-class pilgrim and tourist destinations (to be modelled on the success of the Kashi Vishwanath temple corridor), the Government of India’s intent is encouraging. Additionally, the comprehensive development of the Rajgir Jain Temple site; rejuvenation of the historical gem of Nalanda & Nalanda University into a major religious-tourist centre, would have a multi-pronged impact. While positioning India as a vibrant global tourism destination, it will also accelerate job creation and economic opportunities for allied sectors.

The Budget also appreciated the underleveraged potential of Odisha’s tourism industry by supporting the state’s rich heritage-history, spirituality, craftsmanship and natural beauty.

Recognizing the high potential domestic cruise segment, the Union Budget announcement proposed a simpler tax regime to support/incentivize foreign cruise companies operating in India’s waters.

We’re optimistic about the significant allocation of INR 11.11 lakh crore (constituting 3.4% of India’s GDP) towards infrastructure development. The development of road, rail, air, and waterways will ensure a boost to access/connectivity and affordability, and force multiplier benefits for tourism and allied sectors.

When introduced, TCS was considered disadvantageous to salaried employees as their cash flows were negatively impacted. Post the Budget announcement, salaried employees can now avail of immediate credit of TCS paid on account of their foreign travel – against TDS on salary, enhancing the purchasing power of Indian consumers.

The discontinued SEIS scheme should have been reinstated, as this is meaningful towards encouraging inbound tourism, foreign exchange receipts and a force multiplier for employment generation.

We are disappointed to note that key pillars in India’s Tourism agenda – Aviation & Hospitality were not mentioned as part of the Budget and both standardisation of GST rates on hotel tariffs to 12% and the reduction of ATF remained unaddressed.

Mr. Rohit Arora, Co-Founder & CEO, Biz2Credit and Biz2X

“ The Finance Minister must be commended for the FY2024-25 Budget’s focus on skill development, job generation and MSMEs. For this, Rs1.48 lakh crore has been allocated for education, employment and skilling initiatives, with five schemes dedicated towards these objectives. Moreover, a new Centrally-sponsored skilling scheme is meant to benefit two million youth over five years. Additionally, a new credit guarantee scheme for MSMEs in manufacturing will be introduced to offer guarantees of up to Rs100 crore. This credit guarantee scheme is aimed at facilitating term loans for the purchase of equipment and machinery by MSMEs without guarantee or collateral. This is a most welcome measure since the availability of affordable credit has been a major constraint for MSMEs. Other laudable moves include the opening of new SIDBI branches within three years covering all major MSME clusters for direct credit. This will help in easing liquidity problems in specific clusters. The decision to open e-commerce export hubs for traditional artisans and MSMEs is also beneficial. Moreover, the government’s focus on simplifying tax regulations is a game-changer for small and midsize enterprises, providing the clarity needed to plan and invest with confidence. This clarity will drive innovation and attract investments across various sectors. The emphasis on boosting manufacturing, supporting local industries, and encouraging domestic production is essential for reducing import dependency and strengthening our industrial base. Overall, this balanced approach addresses immediate economic challenges while laying a solid foundation for long-term growth, reflecting a dedicated effort to build a resilient and dynamic economy. All the above measures are bound to provide a big boost to MSMEs across India.”

Akshay Munjal, Founder & CEO, Hero Vired

“I applaud the Government’s strong emphasis on education, skilling, and employment in the Union Budget 2024. Amid growing concerns about the impact of AI on job creation, the substantial allocation of Rs. 1.48 lakh crore for these sectors demonstrates a significant commitment to developing India’s human capital. The introduction of various schemes to promote skilling and job creation is poised to significantly boost economic growth. Additionally, the comprehensive scheme providing internship opportunities in 500 top companies to 1 crore youth over five years, funded partly through CSR, is a welcome initiative. This will give the youth valuable exposure to real-life business environments and diverse professions, further enhancing their employment prospects while ensuring a future-ready workforce.”

Mr. Nitin Mohan, Co-founder and Director, Blackberrys

Quote: “Blackberrys welcomes the Government’s forward-looking Budget 2024, which emphasizes key sectors crucial for economic growth. The increased focus on infrastructure development, digital initiatives, and boosting manufacturing capabilities aligns with our commitment to innovation and expansion. We believe these measures will create a conducive environment for business growth and economic resilience. As a brand rooted in quality and progress, Blackberrys looks forward to contributing positively to India’s journey towards self-reliance and global competitiveness.”

Dr. Jaskiran Arora, Dean- Education Quality, BML Munjal University for your perusal and approval

“The budget marks a pivotal moment for India’s education sector, reflecting a robust commitment to enhancing opportunities for the youth. The allocation of Rs. 1.48 lakh crore for education, employment, and skilling underscores a strategic shift towards holistic development. The introduction of financial support for loans up to ₹10 lakhs for higher education, particularly for those excluded from existing government schemes, is a game-changer. The e-vouchers offering a 3% annual interest subvention for one lakh students will make higher education more accessible and affordable, potentially transforming countless futures.

The proposal to open working women hostels in collaboration with industry underscores a strong commitment to supporting female workforce participation and creating a more inclusive environment for women.

The budget’s focus on upskilling, with a revised Model Skilling Loan scheme and the upgrading of 1,000 industrial training institutes, reflects a clear intent to enhance employability. By aiming to skill 20 lakh youth over the next five years, this budget sets the stage for a more skilled, competitive workforce, ultimately driving economic growth and innovation”

Mr. Prassann Daphal, CEO, Recyclekaro

“The government’s announcement of a 25% waiver on customs duty for nearly 25 critical minerals is poised to drive demand across various renewable sectors, including energy storage solutions, electric vehicles (EVs), high-tech electronics, defense, and space. This initiative will bolster the refining and processing of these minerals, strengthening a resilient supply chain ecosystem.

Additionally, the establishment of a ‘Critical Mineral Mission’ aims to oversee domestic production, recycling, and international acquisition of critical mineral assets. The mission will prioritize technology development, skilled labor, and an expanded producer responsibility framework, including Extended Producer Responsibility (EPR), which will benefit the e-waste and battery recycling sectors.

This well-planned budget reflects a strong commitment to supporting the critical minerals sector, which is crucial for advancing greener transformations.”

Mr Ketan Kulkarni, Chief Growth Officer, Allcargo Group

“Finance Minister Nirmala Sitharaman, provided enough fuel for India’s current growth ride. With the budget focussing specially on job creation and skilling, agriculture, infrastructure, research and technology, the ride should gain momentum. Without changing the Capex allocation which was significant compared to the revised estimates, increased outlays in many sectors like infra and manufacturing will boost spending. The government has also reiterated its determination to pull down the fiscal deficit in the coming years. As every sector has something to cheer about in general, logistics also should gain from the overall growth trajectory. The positive spurs makes the budget balanced, positive and forward-looking”.

Capt. Saanjay Mandavia – CMD, flybig

“While the UDAN scheme allocation has been adjusted, we appreciate the government’s efforts to boost the MRO sector and regional connectivity. The uniform 5% GST rate on aircraft components and extended timelines for repairs will significantly benefit regional airlines. These changes demonstrate the government’s understanding of our sector’s needs. We remain optimistic about regional aviation’s future in India and look forward to continuing our work in connecting underserved areas.”

Mr Ravichandran Purushothaman, President, Danfoss India

We welcome the forward-looking and growth-oriented Union Budget 2024, presented by the Finance Minister. As part of India’s new blueprint for holistic growth, the increased focus on urban development, infrastructure, innovation, and next-generation reforms will have a multiplier effect on the economy.

With a strong emphasis on energy security, industrial development, and MSME support, India is poised for sustainable growth and development.

Agriculture and Allied Sectors: The Government’s substantial allocation of ₹1.52 lakh crore towards agriculture and allied sectors is to be lauded. Initiatives such as natural farming, pulses, and oilseeds missions, along with the development of digital public infrastructure, are crucial for enhancing productivity and sustainability.

Enhanced focus on food security, irradiation, and safety testing labs will revolutionize India’s food landscape, ensuring quality and accessibility.

Urban Development and Infrastructure: The budget’s emphasis on urban development and infrastructure growth is a significant step towards driving economic expansion. The focus on smart cities and industrial development presents ample opportunities for our energy-efficient solutions.

Energy Security and Industrial Development: We welcome the government’s prioritization of energy security and industrial development, which aligns perfectly with our expertise. Danfoss India is poised to play a vital role in India’s green transition through our innovative energy-efficient technologies. We are committed to supporting industrial growth while ensuring that it is sustainable and environmentally friendly.

Climate Resilience: The government’s commitment to climate resilience and sustainable growth is commendable and the focus on climate-resilient agriculture and flood mitigation measures underscores the government’s dedication to environmental sustainability

Leveraging our nine plus decades of expertise, we are committed to driving sustainable development and innovation in India’s green transition. We are eager to actively participate in these transformative initiatives, deploying our energy-efficient technologies to create a more sustainable future.

Mr Yatin Gupte, Chairman & Managing Director, Wardwizard Innovations & Mobility Ltd

“We at Wardwizard Mobility welcome the Government’s progressive and forward-thinking Union Budget 2024-25. The commitment to maintaining strong fiscal support for infrastructure projects over the next five years is a significant boost for the automotive sector. The announcement to fully exempt customs duty on critical materials, such as rare earth metals including lithium, can further incentivize electric mobility. We are looking forward to receiving the benefit of this exemption along with the sectors mentioned by the Hon’ble Finance Minister. The focus on increasing women’s participation in the workforce will also benefit the sector. The Union Budget 2024-25 presents tremendous growth opportunities for all sectors, and Wardwizard Mobility is committed to contributing to India’s journey toward a cleaner, more inclusive, and sustainable future.”

Mr. Masood Mallick, CEO, Re Sustainability Limited (ReSL)

“At Re Sustainability, we applaud the government’s continued focus on environmental sustainability and endorse the creation of the critical mineral mission. This mission, with its emphasis on extended producer responsibility, technology advancement, workforce development, and appropriate financing mechanisms bolsters industry efforts to recycle critical minerals. These initiatives foster a circular economy and lessen our nation’s reliance on imported critical minerals.

Furthermore, the government’s plans to expand solid waste management projects and services to 100 major cities underscore its commitment to enhancing the quality of life for the burgeoning urban population. These comprehensive efforts signal a promising future for sustainable development in our country.”

Jaya Vaidhyanathan, CEO, BCT Digital

Budget 2024 has introduced nine main priorities to boost the economy, including notable rewards for taxpayers who have opted for the new regime. From a banking and fintech perspective, it has tabled several positives:

The emphasis on Digital Public Infrastructure for applications, including credit, is welcome. It will help formalize lending processes, thereby expanding the market share for banks and fintech players. A vision for the financial sector has been announced to enable our country to become a fintech powerhouse. The success of UPI and the JAM trinity needs to be monetized at a global level. While it’s still early days, this is good news. The announcements regarding taxonomy for climate risk are welcome, as it is important to have a homegrown framework for climate risk rather than adopting those from countries with different climate and industry conditions to ours.

Overall budget 2024 has brought forth some interesting perspectives, setting the stage for a transformative financial landscape ahead, focused on growth and development.

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Insights from Experts on the Union Budget 2024

Jul 24, 2024 by Mansi 0 Comments #Expert, #Insight, #Union Budget 2024

Ms. Mallika Srinivasan, Chairman and Managing Director, TAFE

“It is very heartening to see that the budget focuses substantially on focus important priorities namely agriculture, women, youth and poor. The emphasis on the aforesaid areas will put us on a robust path towards holistic development and support the journey of our country of being the third largest economy as envisioned by the Prime Minister under the roadmap for ‘Viksit Bharat’.

I would like to welcome the attention given to boost rural demand through the focuses allocation of Rs 1.54 lakh crore to the agriculture sector particularly for entry level tractors & two wheelers, which is vital to Indian small farmers. On the same note, significant increase in allocation towards MNREGA is a very welcome step.

Given our nation’s success with the digital public infrastructure in transforming farming through crop advisory & market prices, as a private sector initiative under CSR, we would be happy to partner closely with the Central and State governments to take these initiatives forward.

On a segment of the economy which is vulnerable to the vagaries of climate, agriculture research, release of new high-yielding climate resistant varieties and improving irrigation will aid in building resistance which is sustainable.

My special word of compliments to the government for their sustained efforts in continuously ensuring higher minimum support prices (MSP) for all major crops with 50% margin over the costs, is a clear demonstration of the “Atmanirbharta”.

I sincerely commend the finance minister for presenting a progressive, growth oriented and inclusive budget.”

Alison Barrett MBE, Director India, British Council

“The Union Budget 2024 stresses the critical importance of holistic development and higher education in driving inclusive and sustainable growth. There is a clear focus on empowering women through skilling programmes, increased workforce participation, and collaborative industry initiatives. The introduction of E-vouchers for higher education loans is a transformative step towards ensuring equal access to quality education. We remain committed to partnering the Government and working together to create opportunities that enable and empower all young people to thrive and contribute significantly to local and global progress,”

Ms. Sanjana Desai, Executive Director of Mother’s Recipe

“The 2024 budget brings a sense of optimism and growth opportunities for the FMCG sector. The proposal to abolish the so-called angel tax for all classes of investors will significantly bolster the entrepreneurial spirit and support innovation within our industry. Additionally, the increase in the standard deduction for salaried employees will enhance consumer purchasing power, which is beneficial for our brand as it may lead to increased demand for our products. We appreciate the government’s efforts to simplify taxation and promote a more business-friendly environment.”

Vishvanathan Subramanian, CFO & Director, PayMate

The government’s projection of a 4.9% fiscal deficit for the current year, with a target of 4.5% for the next, underscores its commitment to fiscal discipline. This strategic approach is expected to bolster investor confidence, attract FDI, and foster a conducive environment for economic growth in the coming years.

The honourable FM has proposed eliminating angel tax which will be a boon for India’s startup ecosystem. This move will facilitate early-stage funding, especially for the fintech startups, accelerating their growth and encouraging them to create innovative products which will improve India’s financial inclusion and bring the country a step closer to the Digital India dream.

MSMEs are the engine propelling the economy, credit is the essential fuel. And the credit to MSMEs without collateral is an outstanding move which will enhance access to much-needed capital, fostering growth for them. The self-financing guarantee fund of Rs 100 crore will help MSMEs in covering their CAPEX needs without requiring collateral or a third-party guarantee.

The aggressive steps towards skilling and employment of the youth in India are applausive. A comprehensive scheme offering internships in 500 leading companies to one crore youth will significantly address the skill gap in Indian companies. The skilling initiatives announced today will make the nation’s youth more tech-savvy, thereby potentially reducing the skill gap in the fintech sector. By reducing employer costs, providing wage support, and providing direct incentives, the government will not only enhance their employability but also potentially accelerate economic growth by increasing consumption, driving formalization, and improving productivity.

Sapan Gupta, Chief Financial Officer, Rodic Consultants

“The Union Budget 2024-25 places major emphasis on farmers, poor, women and youth of the country and various initiatives have been proposed to support the cause. Budget underscores the critical role of infrastructure in driving economic progress with substantial investments in railways, roads, and airports. The allocation of Rs 1.5 lakh crore for rail infrastructure and the expansion of the National Highway network will enhance connectivity, reduce logistical costs, and promote regional development.

The significant focus on the eastern regions, including Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh, will transform these areas into growth engines, aiding in the attainment of Viksit Bharat. Furthermore, the ₹50,000 crore allocated for urban infrastructure, smart cities, and urban mobility projects will improve urban living, create jobs, and stimulate economic activity.

The government’s commitment to infrastructure development is evident and pivotal for achieving long-term economic growth and prosperity.”

Mr. Sarvjit Singh Samra, MD & CEO, Capital Small Finance Bank

The Budget 2024 announcements mark a significant step towards strengthening India’s economic backbone, focusing on MSMEs, agriculture, and middle-income segments while maintaining fiscal prudence. Measures like credit guarantee schemes, regulatory changes, and financing/technology adoption will boost MSMEs. The allocation of ₹1.52 lakh crore for agriculture and initiatives like new high-yielding seeds, natural farming, and digital public infrastructure will enhance agricultural productivity and rural demand.

The employment-linked incentives for employees and employers, along with measures to facilitate higher participation of women in the workforce, will support job creation and skill development. The government’s commitment to fiscal discipline, aiming to lower the fiscal deficit to below 4.5% of GDP by 2025-26, will ensure sustainable economic growth.

Looking ahead, we expect the Budget 2024 measures to have a positive impact on India’s economic growth trajectory, with MSMEs, agriculture, and employment opportunities driving growth. We foresee India’s economic growth rate stabilizing at around 7-8%, driven by domestic consumption and investment. We look forward to supporting the growth aspirations of MSMEs, farmers, and individuals through our tailored financial solutions and expert guidance in Middle Income Segment.

Mr. Sandeep Ahuja, CEO, Atmosphere Living

Today’s Union Budget announcements have generated a positive buzz in the real estate sector. The direction to reduce stamp duty for women is expected to increase property ownership among women, promoting financial independence and gender equality. This initiative can boost demand in the real estate market, stimulating economic activity. Additionally, it encourages joint ownership, leading to more equitable property distribution within households. Also, along with announcement of developing a National Industrial Corridor is likely attract investments, create job opportunities, and enhance the overall economic landscape. The emphasis by the FM on connectivity will surely lead to increased infrastructure development. New corridors in all modes that are in development and will be crucial for India’s growth and development. Finance Minister Nirmala Sitharaman announced significant changes in the Union Budget concerning property sales. The indexation benefit, which allowed property sellers to adjust the purchase price for inflation using the Cost Inflation Index (CII) issued by the Income Tax Department, has been removed. This means there would be equitable taxed and ensure transparency. In addition, the rate of long-term capital gains tax on property sales has been reduced from 20 percent to 12.5 percent. These changes are likely to have a substantial impact on the real estate market, influencing the way property transactions are taxed.
The digitization of land records and other technological reforms within the regulatory framework will greatly improve transparency in the real estate sector. These announcements, along with a focus on the affordable housing segment, are poised to drive growth and create a more robust and transparent real estate market in India.

Mr Baroruchi Mishra, Group CEO, NET Enterprise

Overall a balanced budget aimed at job creation which in turn will lead to increased consumption and propel growth. It also has a good focus on energy transition.

1.Focus on Water Management including solid waste management for large cities is particularly heartening. Proper implementation of the solid waste management will key to success.

There is great scope for 3 way collaboration here – Centre,States and private sector. The agencies that need to implement this will need to get innovative with the technology choices – proven techs like chemical recycling of single use plastics, plasma gasification of solids wastes etc should be evaluated. This should not be mired into the bureaucratic red tape as this can lead to reduction in fossil fuel use if done correctly.

2. Aspiration to involve private sector in modular nuclear reactors for green energy is a positive step in energy transition.

3. Instead of promising free electricity @300 units for I Cr households under PM Surya Ghar Bijli Yojna, the government should have announced more enabling subsidises for solar panel installations and battery procurement. And let the population get addicted to using Solar as much as they can. The word “free” is toxic for the economy and kills enterprise.

4. Emphasis on Climate Finance is good; Banks and lending Financial institutions should not stall the noble intent of the government.

I assume “ mitigation related investments” will cover carbon capture and storage (CCUS) as this is the only pathway to carbon reduction in the hard-to-abate sectors like cement and steel. Widespread use of DRI for making green steel will take at at least 10-15 years; we cannot wait that long as the EU’s Carbon Border Adjust Tax will hit steel exports by 2026. US and other countries may follow suit making our steel exports uncompetitive.

Counterfactual aspirational in some cases but clearly on the right tract ,I would say.

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Union Budget 2024: Comments by Experts

Jul 24, 2024 by Mansi 0 Comments #Comment, #Expert, #Union Budget 2024

Rushabh Gandhi, MD & CEO at IndiaFirst Life Insurance

This Union Budget is aimed at enhancing employment, skill development, MSMEs, and the welfare of the middle class. By raising the standard deduction and adjusting tax slabs, taxpayers under the new regime will face lower tax burdens, thus improving their disposable income, which bodes well for consumer spending.

The introduction of a clause pertaining to non-deductible expenses in Section 37 for life insurance companies may lead to tax litigation. The proposed hike in Capital Gain Tax is expected to impact the tax liabilities for ULIP policyholders. However, the ULIP holders purchasing policies with premium of less than 2.5 lakh p.a. can continue to avail benefits under Section 10 (10D) and are not liable to pay any tax on maturity.

The decrease in TDS rate from 5% to 2% on policy payouts is anticipated to boost customers’ liquidity, which is a welcome move

Murty LVLN, MD & CEO, Dvara KGFS

“The Union Budget 2024 has acknowledged the need to support MSMEs and improve skill training, especially among the rural population. Significant focus is given to the agricultural sector to increase digital public infrastructure which will push more farmers to be a part of the registry making the agriculture sector more transparent. This move will pave the way for fintechs and agricultural fintechs to support farmers with better financial offerings. We welcome the government’s initiative to introduce a new mechanism for MSMEs to continue seeking bank credit during stress period to ensure smooth functioning. The continuous focus of the budget on the MSME sector, to compete globally, will result in a positive incentive for the rural parts of the country, thereby, increasing the rural GDP.” –

Rohit Taneja, Founder and CEO, Decentro

“The 2024 Union Budget showcases the government’s dedication to fostering innovation and technological growth. It focuses on SMEs and manufacturing with initiatives like the self-financing guarantee fund and enhanced PSB capabilities for the SME assessment. A five-scheme package supports financing, regulatory changes, and technology, amplifying Make In India movement that is a huge tail wind for infrastructure building companies like us.

These measures, coupled with the extension of tax benefits for startups, indicate a promising environment for digital growth. At Decentro, we see this as a prime opportunity for fintech to contribute deeper across India’s digital infrastructure and double down on the technology-driven reforms that have boosted productivity and financial inclusion over the last decade.

We are particularly excited about the potential to leverage these initiatives further to enhance the fintech infrastructure and drive seamless integrations across banking.”

Mr. Kishan Jain, Director, Goldmedal Electricals

“We extend our sincere gratitude to the Honourable Finance Minister for presenting the forward-looking Budget 2024. The focus on bolstering manufacturing practices through targeted incentives and policy reforms represents a significant step towards fostering growth and innovation within the consumer electronics sector.

This budget not only addresses the prevailing industry challenges but also lays a solid foundation for a more prosperous and sustainable future in manufacturing. With the government’s strategic vision and commitment to fostering a conducive environment for business development, we are optimistic about the promising opportunities this budget will offer to both the sector and the broader economy. We look forward to contributing to and benefiting from this transformative journey.”

Sachin Alug, CEO, NLB Services

“Union Budget 2024-25 highlights the government’s commitment to transform India’s employment landscape through its strategic focus on diverse segments like- youth, women, MSMEs, and tourism sector. With ‘Yuva’ as one of the four critical points for the Union budget, the Finance Minister’s ambitious plan to create jobs for 4.1 crore youth, supported by a ₹2 lakh crore allocation, is a game-changer. This includes important action points such as incentives for 30 lakh first-time employees, the establishment of working women hostels, and the enhancement of MGNREGA to ensure 100 days of wage employment for manual workers.

The commitment to skilling youth is equally impressive, with plans to upskill 20 lakh youth and provide higher education loans up to ₹10 lakh for 1 lakh students annually. This investment in education and skill development will significantly boost employability and economic potential. Moreover, the proposed scheme to provide internship opportunities to 1 crore youth in 500 top companies with Rs. 5000 per month as internship allowance and one-time assistance of Rs. 6000 will further help in achieving employment goals.

Furthermore, the budget’s support for over 4.4 crore MSMEs, coupled with a ₹100 crore guarantee fund, is set to uplift this sector, with currently reporting 19.09 crore jobs. The initiative will increase the number of jobs by 12-15% in the MSME sector. Additionally, the focus on infrastructure development and improved connectivity is expected to elevate India’s status as a global tourism destination, generating further employment in both the tourism and infrastructure sectors. This will further boost employment in the tourism sector by 15-20%, creating roles such as Tour Operator, Business Development, Travel Consultant, Hospitality Manager, Destination Marketing, and Tour Guide, and the 10-12% growth in the infrastructure sector with roles like Civil Engineer, Architect, Project Manager, and liaison officer, etc.

Collectively, these initiatives represent a bold and essential step toward a more inclusive and dynamic economy. They will not only address immediate employment needs but also lay the foundation for long-term economic prosperity and growth.”

Jayesh Jain, Group CFO, Balancehero India

“The Union Budget 2024 is a transformative step toward strengthening India’s economic fabric, emphasizing employment, skilling, and MSMEs. The allocation of ₹2 lakh crore for job and skill development schemes over the next five years will empower the youth and foster a skilled workforce, essential for driving innovation in the fintech sector. The budget’s focus on social justice and inclusive human resource development ensures growth benefits reach every segment of society.
For the fintech industry, simplified tax exemption regimes and TDS adjustments will streamline operations, creating a more favourable business environment. Abolishing the angel tax for all classes of investors is a ground breaking move to bolster the Indian start-up ecosystem, boost entrepreneurial spirit, and support innovation. Initiatives to develop cities as growth hubs and significant investments in urban housing and infrastructure will stimulate economic activities and provide a robust foundation for sustainable growth. Enhanced support for MSMEs, including the new credit guarantee scheme, will bolster the backbone of our economy, driving innovation and job creation. This budget sets a promising trajectory for inclusive growth, positioning India as a resilient and forward-looking economy.”

Tarun Chugh, MD & CEO, Bajaj Allianz Life

“The FM has secured a few critical aspects for the future readiness of the country in terms of strengthening the start-ups eco-system, focus on new age technology, space tech and encouraging clean tech. There was a significant focus on sectors like agriculture, infrastructure at large as well as developing skills and generating employment, which will have a positive compounding effect on the economy going forward. It lays the groundwork for a robust and sustainable economic growth with India remaining one of the bright spots in the global economic landscape. All in all, I believe it has been able to deliver on the growth agenda in a significant manner.

Furthermore, the reduction in the fiscal deficit target to 4.9% for FY25, down from the 5.1% estimated earlier in February 2024 (interim budget) paves the way for increasing fiscal discipline and enabling sustainable economic growth. This will positively impact India Inc. especially the insurance segment as we believe it will enable many more customers save and invest adequately in our financial instruments to secure their future.”

Mr. Amit Sharma, Managing Director & CEO, Tata Consulting Engineers

“The Indian government’s transformative and futuristic initiatives are set to accelerate the growth of the nation’s infrastructure landscape while enabling technological advancement and ensuring a viable and sustainable energy transition. The 2024 Union Budget’s focus on green growth with a ₹35,000 crore investment, the adoption of nuclear, clean energy with Bharat Small Reactor (BSR) and Bharat Small Modular Reactor (BSMR), and private participation in the nuclear energy arena, incentivising the adoption of higher efficiency Advanced Ultra Super Critical (AUSC) thermal plants, and focus on Pumped Storage Projects (PSP) for renewable energy integration, alongside a national critical metals and minerals policy, and the promotion of domestic solar cell and module manufacturing, create a comprehensive roadmap for the energy transition in hard-to-abate sectors.

On the infrastructure front, the enhanced focus on water and waste management in 100 large cities, along with an investment of ₹10 lakh crore for the construction of 1 crore houses under Pradhan Mantri Awas Yojana-Urban 2.0, underscores the strategic approach towards transformative growth.

Tata Consulting Engineers has been a key player and thought leadership partner in these specific initiatives with the Government of India and leading industry players. Our efforts have been fully aligned and committed to these national priorities. Keeping the Vikasit Bharat vision clear, we see this as a progressive roadmap towards building a sustainable, technologically advanced, and resilient India. Tata Consulting Engineers is committed to our promise of ‘Engineering a Sustainable & Better Tomorrow.’”

Mr. Ashish Saraf, VP and Country Director

“We applaud the government’s special emphasis on skilling, research and innovation, complementing the ‘Viksit Bharat 2047’ vision, in the Union Budget 2024-25. The Budget’s commitment to skilling 20 lakh youth over the next five years through centrally sponsored schemes and the provision of skilling loans will pave the way for cultivating a strong and future-ready workforce. These measures will create pathways for youth to gain essential skills, enhancing employability. We also welcome the focus towards inclusive and holistic growth through a number of other announcements including employment-linked skilling schemes, internship opportunities to students in 500 top companies as well as the allocation of over ₹3 lakh crore to advance women’s roles.

Another key aspect of the budget is the establishment of the Powering Innovation, R&D Anusandhan National Research Fund. This will indeed provide a boost to private sector-driven research and innovation leading to development of cutting-edge technologies in the country. We commend these visionary steps and are committed to supporting India in nurturing a highly skilled workforce and deep-tech innovations by leveraging our local and global expertise and experience.”

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Union Budget 2024- Reaction Quote from Experts

Jul 24, 2024 by Mansi 0 Comments #Dr Pawan Goenka, #Expert, #Quote, #Union Budget 2024

Dr Pawan Goenka- Chairman, IN-SPACe (Indian National Space Promotion and Authorization Centre)

“The announcement of a focused venture fund of 1000 Crores will give a major boost to new entrepreneurs and NGEs in the space sector. At IN-SPACe, we look forward to supporting the growth of the space economy and nurturing an enabling ecosystem for NGEs. The fund along with the existing policies for the space sector will fuel technological innovation and create a fertile ground for NGE’s to thrive. “

Mr. P R Seshadri, MD & CEO at South Indian Bank

The Finance Minister has announced many impactful measures in the Union Budget. The proposal to rationalise both direct taxes and GST is heartening and may potentially lead to a truly progressive tax structure. The push for housing and employment is commendable. Similarly, the measures announced for improving credit delivery to MSMEs – enhancement of MUDRA loan limits and introduction of a credit guarantee scheme, will incentivise financial entities to lend to India’s small entrepreneurs. Besides, the Budget has made provisions to improve the rural economy, including increasing outlay under PMAY, and for agricultural research and rural development. The Union Budget has enough incentives to spur India’s youth, farmers, and business class to seek fulfillment of their aspirations. It will allow the economy to move ahead on its growth trajectory.”

Mr. Mehul Bheda, Partner, Dhruva Advisors

The recent capital gains tax revisions bring notable changes across various asset classes. While the increase in STT rates and the removal of indexation affect listed and unlisted securities respectively, the elimination of angel tax offers significant relief for investment planning and structuring. Additionally, the new tax treatment of buy-backs as dividends is expected to diminish their attractiveness. The broader tax impact on investments in non-financial assets such as real estate, gold etc, particularly the reduction in capital gains tax rate to 12.5% and eligibility period to 2 years for long-term assets, represent a mixed bag, balancing positive reforms with the drawback of removing inflation-linked indexation.

Mr. Ajitesh Korupolu, Founder & CEO, ASBL

Union Budget 2024 presents a balanced approach that supports sustainable growth in the real estate sector. The attention on augmenting tax incentives for first-time homebuyers and amplifying benefits for women is notably heartening as it invigorates market demand. The stress on affordable housing, expedited project approvals, and urban infrastructure development would definitely boost market efficiency, yielding benefits for both developers and homebuyers alike. Furthermore, the provision for upskilling initiatives is a commendable step that caters to the industry’s evolving requirement for a technologically adept workforce.

Dr Vivek Desai, Founder & MD, HOSMAC

The healthcare budget has seen a 12.5% increase (from 79,221 cr to 89,227 cr), fostering the development of public infrastructure in healthcare.
Additionally, a 7.5% rise in allocations (from 6800 cr to 7300 cr) for the Ayushman Bharat Yojana and a substantial 50% hike for the Ayushman Bharat infrastructure mission (from 2100 to 3200 cr) will expedite the advancement of digital health infrastructure.
The extension of duty exemptions for certain cancer drugs is a commendable step, significantly benefiting patients by reducing the high costs of chemotherapy and overall cancer treatment.
Moreover, the reduction in customs duty on X-ray tubes from 15% to 5% will lower capital expenditure in imaging and radiology, which are otherwise capital-intensive sectors.
Lastly, the increase in the PLI scheme outlay for the pharmaceutical industry, from ₹1,696 crore to ₹2,143 crore, will further enhance the “Make in India” initiative.

Ashutosh Pandey, Co-Founder, Life n Colors Pvt Ltd:

“Following the Budget announcement, there is a significant push to generate employment and expand the manufacturing base in the country. From a business perspective, the introduction of the credit guarantee scheme for MSMEs stands out as a potential game-changer for companies looking to enter the manufacturing sector. This scheme is expected to provide the much-needed financial support and boost to MSMEs, enabling them to scale operations and contribute to the broader economic goals.”

Chandan Kumar GV, Vice President of Client Engagement at Indxx

The 2024-25 budget is expected to focus on several key areas:
Research and Development: Plans to establish a Rs 1 lakh crore fund providing a 50-year interest-free loan to support India’s tech-savvy youth.
Deep Tech Initiatives: Operationalization of the Rs 1 lakh crore Deep Tech Fund aimed at boosting startups in cutting-edge technologies.
Tax Incentives: Push for fiscal support and streamlined input tariffs in the electronics sector. Expected reduction from seven tariff slabs to three, aligning with competing nations to enhance cost competitiveness, simplify trade, and attract global value chains.
The interim budget’s extension of tax benefits for startups, sovereign and pension funds, and investment units in GIFT City’s International Financial Services Centre (IFSC) until March 31, 2025, is seen as a valuable addition for startups.
Skill Development: Efforts to establish new IITs, IIITs, and IIMs to cultivate a skilled workforce in fields like artificial intelligence to meet industry demands.
These initiatives demonstrate the budget’s critical role in fostering startups and developing a robust IT ecosystem ready for global competitiveness and growth.

Prof Soumyo Mukherji, Senior Professor Department of Electrical Engineering & Director, , BITS Pilani Hyderabad Campus

“One of the main focus areas laid out by the finance minister for Viksit Bharat is innovation, research & development. To bolster R&D and strengthen India’s standing globally, the allocation of ₹1000 crore towards venture capital in space technology is a welcome move. So is the allocation for private led research. However, the latest economic survey underscores a critical reality stating that one out of every two Indian graduates lacks employable skills.
Upskilling for producing industry-ready graduates is an urgent need. Although some effort has been taken in that regard (in terms of internship scheme, new ITIs etc.), a budget with higher allocation for education and research would have been welcome.
It is only through efforts like this that, Make in India, Make for India, Export to the world”, will be a reality.

Mr. Riju Jhunjhunwala, CMD RSWM Ltd & MD Bhilwara Energy Ltd

“The Union Budget 2024 presents a holistic approach to India’s economic growth, with a strong emphasis on manufacturing, energy, and sustainability. The employment incentives for the manufacturing sector are poised to stimulate job creation and strengthen our workforce. The focus on nuclear energy development and indigenous thermal power technologies demonstrates a commitment to energy security and efficiency. The budget’s sustainability measures, particularly the rooftop solar scheme, are set to transform energy consumption at both household and industrial levels. Overall, this budget lays a solid foundation for industrial growth, aligning with our vision of a sustainable and innovative future for India.”

Uday Chawla, Managing Partner, TRANSEARCH India

“We welcome the Budget 2024-25 as a people-friendly and pro-development budget. This year’s budget has paved the way for India by focusing on employment and skilling opportunities. We appreciate the various initiatives announced by the Honourable Finance Minister, focusing on the nine critical priorities—ranging from productivity and resilience in agriculture to next-generation reforms—demonstrating a comprehensive approach to fostering sustainable growth and development.
For future leaders, these priorities offer a robust foundation to build upon and will create dynamic opportunities for innovation and leadership in these vital sectors. We believe that the budget, along with conducive policies and regulatory reforms, will facilitate research and development, and foster a culture of innovation, across sectors. With increased investment, the budget is poised to enhance employment opportunities and spur rising demand, especially for skilled leadership in these sectors.”

Prateek N Kumar, Founder and CEO, NeoNiche Integrated Solutions

“The recent Budget represents a comprehensive strategy aimed at fostering growth across various sectors of society. By focusing on employment, skilling, MSMEs, the middle class, the underprivileged, women, youth, and farmers, it presents a holistic and inclusive approach. The nine priorities outlined for the coming years—productivity and resilience in agriculture, employment and skilling, manufacturing and services, urban development, energy security, infrastructure, innovation and R&D, and next-generation reforms—underscore a commitment to well-rounded development. This emphasis on job creation and boosting consumption is set to significantly benefit the consumer goods, real estate, and automotive sectors. It’s an encouraging roadmap for our nation’s future.”

Nupur Maheshwari, Executive Partner, Lakshmikumaran & Sridharan Attorneys

“Amendments under the Customs Laws are geared towards ease of doing business, promote domestic manufacturing, support local value addition and increase the competitiveness of Indian goods in the International market. The rates of customs duties have been significantly reduced on the inputs used in India’s major export sectors such as seafood, leather and textiles (garments and footwear) to provide further fillip to these sectors. Further, export duty on rawhides and skins is being rationalized. To promote ‘make in India’, the customs duties on the inputs used in manufacturing PCBAs of mobile phones, connectors for manufacture of certain electronics, and critical minerals which are used in important and strategic sectors is proposed to be reduced. List of capital goods for use in manufacture of Solar panels in India is proposed to be expanded. The Finance Minister also proposed a phased manufacturing program for manufacture of X-ray tube and flat panel detectors in the medical sector. The time period of re-import and re-export of goods for use in warranty and repairs is proposed to be increased from 6 months to 1 year and 3 years to 5 years respectively”.

Ratan Jain, Executive Partner, Lakshmikumaran & Sridharan Attorneys

“The Finance Minister also proposed to conduct a comprehensive review for the next 6 months of the rates of duties under the Customs Act, 1962. Under the campaign ‘Digital India’, the Finance Minister also proposes to fully digitize all the taxpayer’s services provided by the Customs and the Income Tax Department and make them completely paperless. The Finance Minister also aims at further simplifying the procedures under the Customs Laws in India”.

Ujjwal Singh – Founding CEO, Infinity Learn by Sri Chaitanya

“We welcome the Budget 2024-25 as a people-friendly and pro-development budget. This year’s budget has paved the way for India by focusing on employment and skilling opportunities. We appreciate the various initiatives announced by the Honourable Finance Minister, focusing on the nine critical priorities—ranging from productivity and resilience in agriculture to next-generation reforms—demonstrating a comprehensive approach to fostering sustainable growth and development.
For future leaders, these priorities offer a robust foundation to build upon and will create dynamic opportunities for innovation and leadership in these vital sectors. We believe that the budget, along with conducive policies and regulatory reforms, will facilitate research and development, and foster a culture of innovation, across sectors. With increased investment, the budget is poised to enhance employment opportunities and spur rising demand, especially for skilled leadership in these sectors.”

Uday Chawla, Managing Partner, TRANSEARCH India,

“We welcome the Budget 2024-25 as a people-friendly and pro-development budget. This year’s budget has paved the way for India by focusing on employment and skilling opportunities. We appreciate the various initiatives announced by the Honourable Finance Minister, focusing on the nine critical priorities—ranging from productivity and resilience in agriculture to next-generation reforms—demonstrating a comprehensive approach to fostering sustainable growth and development.
For future leaders, these priorities offer a robust foundation to build upon and will create dynamic opportunities for innovation and leadership in these vital sectors. We believe that the budget, along with conducive policies and regulatory reforms, will facilitate research and development, and foster a culture of innovation, across sectors. With increased investment, the budget is poised to enhance employment opportunities and spur rising demand, especially for skilled leadership in these sectors.”

Prateek N Kumar, Founder and CEO, NeoNiche Integrated Solutions

“The recent Budget represents a comprehensive strategy aimed at fostering growth across various sectors of society. By focusing on employment, skilling, MSMEs, the middle class, the underprivileged, women, youth, and farmers, it presents a holistic and inclusive approach. The nine priorities outlined for the coming years—productivity and resilience in agriculture, employment and skilling, manufacturing and services, urban development, energy security, infrastructure, innovation and R&D, and next-generation reforms—underscore a commitment to well-rounded development. This emphasis on job creation and boosting consumption is set to significantly benefit the consumer goods, real estate, and automotive sectors. It’s an encouraging roadmap for our nation’s future.”

Nupur Maheshwari, Executive Partner, Lakshmikumaran & Sridharan Attorneys

“Amendments under the Customs Laws are geared towards ease of doing business, promote domestic manufacturing, support local value addition and increase the competitiveness of Indian goods in the International market. The rates of customs duties have been significantly reduced on the inputs used in India’s major export sectors such as sea food, leather and textiles (garments and footwear) to provide further fillip to these sectors. Further, export duty on rawhides and skins is being rationalized. To promote ‘make in India’, the customs duties on the inputs used in manufacturing PCBAs of mobile phones, connectors for manufacture of certain electronics, and critical minerals which are used in important and strategic sectors is proposed to be reduced. The list of capital goods for use in manufacture of Solar panels in India is proposed to be expanded. The Finance Minister also proposed a phased manufacturing program for manufacture of X-ray tube and flat panel detectors in the medical sector. The time period of re-import and re-export of goods for use in warranty and repairs is proposed to be increased from 6 months to 1 year and 3 years to 5 years respectively”.

Ratan Jain, Executive Partner, Lakshmikumaran & Sridharan Attorneys

“The Finance Minister also proposed to conduct a comprehensive review for the next 6 months of the rates of duties under the Customs Act, 1962. Under the campaign ‘Digital India’, the Finance Minister also proposes to fully digitize all the taxpayer’s services provided by the Customs and the Income Tax Department and make them completely paperless. The Finance Minister also aims at further simplifying the procedures under the Customs Laws in India”.

Ujjwal Singh – Founding CEO, Infinity Learn by Sri Chaitanya

“We welcome the Budget 2024-25 as a people-friendly and pro-development budget. This year’s budget has paved the way for India by focusing on employment and skilling opportunities. We appreciate the various initiatives announced by the Honourable Finance Minister, focusing on the nine critical priorities—ranging from productivity and resilience in agriculture to next-generation reforms—demonstrating a comprehensive approach to fostering sustainable growth and development.
For future leaders, these priorities offer a robust foundation to build upon and will create dynamic opportunities for innovation and leadership in these vital sectors. We believe that the budget, along with conducive policies and regulatory reforms, will facilitate research and development, and foster a culture of innovation, across sectors. With increased investment, the budget is poised to enhance employment opportunities and spur rising demand, especially for skilled leadership in these sectors.”

Mr. Amit Kapoor, Founder and CEO, Eupheus Learning

“The FM’s Budget for 2024-25, and the allocation towards education, employment, and skilling, is noteworthy. The focus on skilling the youth with the industry needs and providing education loans with an attractive subvention scheme is a game-changer.
At Eupheus Learning, we believe that identifying the right skills should happen inside classrooms in schools. An enabling environment of in-classroom and at-home learning ensures that our young learners get the infrastructure and support needed by them to work towards their respective aspirations. These measures from the government are a good step forward and we are sure that there will be percolation down to the school level in each district. This percolation will equip students with the skills they need to excel in their careers and contribute to the economy.”
“The FM’s Budget for 2024-25, and the allocation towards education, employment, and skilling, is noteworthy. The focus on skilling the youth with the industry needs and providing education loans with an attractive subvention scheme is a game-changer.
At Eupheus Learning, we believe that identifying the right skills should happen inside classrooms in schools. An enabling environment of in-classroom and at-home learning ensures that our young learners get the infrastructure and support needed by them to work towards their respective aspirations. These measures from the government are a good step forward and we are sure that there will be percolation down to the school level in each district. This percolation will equip students with the skills they need to excel in their careers and contribute to the economy.”

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Union Budget 2024: Key Expectations and Anticipations

Jul 20, 2024 by Mansi 0 Comments #Union Budget 2024, #union budget 2024 25 expectations, #Union Budget 2024: Key Expectations and Anticipations

20th July 2024- As the Union Budget 2024 is knocking on the door and set to be unveiled on July 23rd, various sectors and stakeholders are keenly anticipating measures that will stimulate economic growth and address key challenges facing the country. Expectations are high for increased public investment in infrastructure projects, which could generate employment opportunities and drive industrial growth. Additionally, there is a strong demand for tax reforms to simplify compliance and alleviate the burden on businesses, particularly small and medium enterprises (SMEs). The agricultural sector is hopeful for enhanced support through subsidies, improved irrigation facilities, and better access to credit. In light of global economic uncertainties, there is also a call for policies that will strengthen the manufacturing sector and encourage domestic production. Moreover, citizens are looking forward to increased allocations for healthcare and education to enhance the quality and accessibility of these essential services. Overall, the Union Budget 2024 is expected to strike a balance between growth and fiscal prudence, aiming to foster an inclusive and sustainable economic environment.

union budget

Mr. Kunal Arya, Co-Founder & Managing Director, ZELIO Ebikes

“As we approach the budget 2024-25, the EV industry is eagerly anticipating several key measures to drive growth and adoption. Increased subsidies will make electric vehicles more affordable for a broader range of consumers, fostering widespread adoption. Expanding the network of charging stations, especially those powered by renewable energy, is essential for supporting the EV infrastructure and addressing range anxiety. Reducing the GST on batteries and components will lower costs, making electric vehicles more accessible to the masses. Simplifying financing options for EV purchases will further encourage adoption by easing the financial burden on consumers. Promoting fleet electrification can significantly cut emissions and showcase the viability of electric vehicles for commercial use. Export incentives will help Indian EV manufacturers compete globally and expand their market reach. Additionally, skill development programs are vital for building a knowledgeable workforce to support this growing industry. Enhanced R&D grants and support for innovation in EV technology will ensure India remains at the forefront of the global EV revolution. We believe these measures will collectively propel the EV sector towards a sustainable and prosperous future.”

Sohail Mirchandani, Chief Operating Officer & Co-Founder, Ekostay

“The travel and tourism industry has been experiencing robust growth post-pandemic, presenting an opportune moment for the upcoming Union Budget 2024-2025 to further this momentum. Strategic investments in our sector can unlock significant economic opportunities, boost employment, and enhance India’s tourism landscape.

A uniform GST rate of 12% on hotels & homestays would greatly simplify compliance and eliminate price disparities caused by fluctuating room rates. Currently, the tiered GST system based on hotel room tariffs creates confusion and administrative challenges, with room rates varying between 12% and 18% GST depending on the season. Simplifying this to a single rate would benefit both businesses and consumers, fostering a more consistent and transparent pricing structure.

Furthermore, allowing online travel agents (OTAs) to register through their central head office instead of obtaining state-wise GST registrations would reduce administrative burdens and increase efficiency. The current regulation, which compels OTAs to establish a physical presence in each state, leads to high administrative costs and places national OTAs at a disadvantage compared to international competitors.

We also urge the government to address the GST discrepancies between e-commerce operators and direct bookings, which currently disincentivize digital transactions. For instance, a customer pays a 5% GST charge when booking a non-AC bus through an e-commerce platform, while this charge is zero for direct bookings from bus operators. Harmonizing these rates would support the Digital India initiative and promote fair competition.

Moreover, allowing Tax Collected at Source (TCS) credit to be used against salary income tax would provide much-needed relief to taxpayers. Currently, TCS credit can be used against advance tax but not against income from salaries, creating an imbalance that needs rectification.

Encouraging corporations to invest their CSR funds in developing and improving tourist destinations can lead to sustainable development while offering tax benefits. A weighted deduction under income tax and input tax credit under GST on CSR funds deployed to improve tourist destinations would garner larger participation from the private sector. This symbiotic relationship not only helps preserve tourist sites but also ensures all-around sustainable development.

Tax incentives for adopting sustainable practices would also align with India’s commitment to the United Nations Sustainable Development Goals, particularly SDG 11 (Sustainable Cities and Communities) and SDG 13 (Climate Action). By offering incentives that promote eco-friendly measures in the tourism sector, such as energy-efficient lighting, water-saving devices, and waste-reduction practices, the Hon’ble Finance Minister would encourage the industry to contribute to these global goals.

The hospitality sector deserves industry status to accelerate growth, recognizing its substantial contributions to GDP, employment, and foreign exchange revenues. Reducing GST, funding skill development, and promoting sustainable tourism are crucial steps for driving the sector forward. Additionally, recognizing the sector as an industry would provide significant thrust for companies to reinvest in growth, encourage more investments, and bolster job creation.

In conclusion, by addressing these key issues, the Hon’ble Finance Minister can ensure that the hospitality industry continues to thrive and contribute to India’s economic and sustainable development goals. A strategic and supportive budget will not only enhance the industry’s competitiveness but also position India as a premier global tourist destination.”

Mr. Arindam Chakraborty, COO of Catering Collective

“The “Wed in India” and “Meet in India” proposition presents a promising opportunity for the wedding industry, encompassing hotels, standalone venues, and planners. As the Budget 2024 approaches, several key points warrant attention to fully capitalize on it:
GST Inputs on Capital Expenditure, Expenses, and F&B Sales :
Currently, F & B business does not receive input credit towards F & B sales or expenses. If would be highly beneficial if input credit towards F & B sales as well as on expenses – both Opex and Capex in nature are considered for our F & B business
Currently, F&B is charged at 5% GST, while other wedding-related services (venues, planning, decor, etc.) are charged at 18% GST. Standardizing GST at 5% across all services would significantly boost the wedding industry by making it more accessible and affordable for consumers. This would encourage more people to invest in their weddings, driving industry growth. This would also get a lot of unorganised vendors under the ambit of the GST regime
Infrastructure Improvements in Tier 2 & 3 Cities:
Enhancing connectivity via air and road will encourage exploration of these locations, leading to improvements in hotels and venues infrastructure. These cities definitely have untapped potential. Destination weddings reaching Tier 2 & 3 cities will also allow guests to conduct their family weddings at their place of birth (recent example being the Anant Ambani & Radhika Merchant wedding at Jamnagar), which in turn will help growth of local industries
The thriving destination wedding industry necessitates enhanced infrastructure. This includes opening more heritage sites/government-owned sites for empanelment for exclusive F & B catering, thereby positioning India as a premier destination for celebrations. Even global state level events could happen at multiple and culturally rich heritage sites spread across the length and breadth of ‘Incredible India’”

Keyur Shah, CEO – Precious Metals Business, Muthoot Pappachan Group.

“Government should give serious consideration to boost the Indian Gold Recycling Sector in order to reduce India’s over dependence on imports. There is huge stock of unused Gold amongst Indian households that has not yet been successfully tapped in a sustainable manner. Incentivizing Organized Sector Players (for a level playing field in a largely unorganized marketplace), removing Capital Gains Tax at a Consumer level on sale of their old Gold to encourage them to bring it out of the lockers, fixing the long pending executional challenges in the Gold Monetising Scheme and so on, are few steps that should be considered.”

Mr. Vijay Kumar Agarwal, the Founder and CEO of Makoons Group of Schools

The education sector is at a crossroads, waiting for legislative moves to virtually turn the tide as we prepare for subsequent funding. Makoons Group of Schools sees training funding as a strategic imperative for the country’s development, not just an expense. We demand that the government’s main priorities are to expand access to special education, help with creative teaching strategies, and promote virtual literacy in all areas. These programs are critical to equipping our children with the data and competencies needed to thrive in a rapidly changing international economy. Furthermore, incentivizing private sector participation in education infrastructure development and teacher training will be critical steps toward meeting universal education objectives. We look forward to a budget that demonstrates a strong commitment to our country’s future through robust educational reforms and long-term investments.

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

“As we approach Budget 2024, we are optimistic about the anticipated reforms and their potential impact on the mar-tech sector. The expected income tax rate cuts and the proposed increase in the income threshold to ₹5 lakh are promising developments. These measures will enhance disposable income, stimulate consumer spending, and drive growth across industries, including mar-tech.

With the Modi Government starting its newly re-elected term, there is considerable anticipation for policies that further technological innovation and digital transformation. We hope to see initiatives that simplify the ease of doing business and support the growth of digital infrastructure. Such steps will create a robust environment for mar-tech companies to innovate and expand, ultimately contributing to the broader digital economy.

Budget 2024 has the potential to be a pivotal moment for the industry, and we look forward to the positive changes it may bring.”

“As an industry leader focusing on the production of large diameter carbon steel pipes for vital energy infrastructure, MAN Industries is eagerly anticipating the upcoming budget’s renewed emphasis on renewable energy. We strongly support policies that promote technological advancements, expand renewable energy projects, and enhance manufacturing capabilities in eco-friendly technologies. A well-structured budget has the potential to attract significant investments in sustainable energy solutions, thereby strengthening India’s pursuit of energy security and environmental sustainability. MAN Industries is fully committed to leveraging our expertise to contribute to these efforts and ensure resilient infrastructure to meet the evolving demands of the renewable energy sector.”

Mr. N.P Ramesh, COO and Co-Founder of Orb Energy

“As we approach the Union Budget, the solar industry eagerly anticipates pivotal measures to accelerate India’s renewable energy goals. Key priorities include enhancing residential solar adoption with proposed personal income tax benefits up to 3 lakhs. This can be considered instead of current subsidy of Rs.78,000. For commercial and industrial (C&I) sectors, increasing depreciation benefits to 60-80% from the current 40% will incentivize substantial investments in solar installations, bolstering sustainability efforts across businesses.

The removal of anti-dumping duties on raw materials for solar modules is crucial to enhancing manufacturing competitiveness and reducing dependency on imports. Additionally, a proposed 7-year tax holiday for investments in PV module or solar cell production will stimulate domestic manufacturing capabilities, fostering job creation and economic growth.

These strategic measures not only strengthen India’s position in renewable energy but also pave the way for a sustainable and resilient energy future. They underscore our commitment to innovation and sustainability, ensuring a greener and more prosperous tomorrow for all.”

Ms. Sanjana Desai , Executive Director, Desai foods Pvt Ltd –

“As the budget announcement approaches, we hope it will boost consumer spending and support rural development, which are critical drivers for the FMCG sector. Reducing input costs and improving logistics infrastructure are essential for reaching our consumers efficiently. Incentives for skill development and job creation, especially in rural areas, will aid growth. New technologies adopted for agricultural processes, testing of raw materials especially the growing of spices without the use of banned pesticides will help our value-added products & the quality we serve our consumers in India & the world. We also look forward to provisions promoting sustainable practices and environmentally friendly initiatives. Support for R&D through tax benefits and grants are crucial for innovation and global competitiveness. We believe that Budget 2024 holds the potential to create a positive trajectory for the FMCG industry especially Indian processed foods and the wider economy.”

Dr. Krishna Veer Singh, Co-Founder & CEO, Lissun

At Lissun, we view the upcoming 2024-25 Union Budget as a crucial opportunity to revolutionize India’s approach to mental health. We expect a significant increase in budget allocation for mental health initiatives, particularly in awareness campaigns, accessibility improvements, and affordability measures.

Our hopes include integrating mental health services into primary healthcare, substantial investments in digital mental health solutions, and incentives for startups innovating in this space. We advocate for measures addressing the shortage of mental health professionals through targeted skill development programs and promotion of tele-mental health services. Policies mandating mental health coverage in insurance plans, increased funding for mental health research, and the establishment of a national mental health database are also key expectations.

We particularly emphasize the need for increased funding to support early diagnosis and intervention programs for children with autism and neurodevelopmental delays. Additionally, we hope the government will expand the number of seats and courses in universities, ensuring the generation of more high-quality therapists to meet the growing demand.

We also anticipate initiatives to integrate mental health education into school curriculums and workplace wellness programs. Prioritizing these aspects in the budget will enable India to make notable strides in building a mentally healthier society, fostering innovation, and improving care delivery across the nation….

Mr.Neeraj Tyagi, Co-Founder & CEO, We Founder Circle

From the over 100 investments we have made in early-stage startups, more than 50 are from tier 2, 3, and 4 cities, and based on our extensive experience of continuously investing in startups from these smaller cities, we recommend several key measures for Budget 2024-25. Primarily, there should be a focus on easing fundraising for startups in these regions, as they often face unique challenges compared to their urban counterparts. Streamlining access to capital will empower these startups to innovate and grow, thereby contributing significantly to local and national economies. Encouraging and incentivizing SEBI funds to invest in startups from smaller cities is another critical step. By providing tax benefits or other incentives to these funds, the government can attract more investment into underserved regions, promoting balanced regional development. Additionally, actively collaborating with local incubators will create robust support systems for startups. These incubators can offer tailored mentorship, networking opportunities, and resources that are crucial for the success of early-stage startups.These initiatives, coupled with the stability and predictability of government policies, will sustain the momentum in India’s vibrant startup ecosystem and push the boundaries of innovation across various sectors including fintech, SaaS, healthcare, education, clean energy, deep-tech research, and robotics.

Kunal Gupta, Head-Dhuri Plant, KRBL

“The upcoming 2024 Budget presents an opportunity for significant support in the agriculture sector. Increased funding for research can deliver improved crop yields and foster innovation in cutting-edge technologies. This, along with flexible export policies and Minimum Support Prices (MSP), can open new markets for Indian farmers and boost exports. However, a balanced approach is needed. While promoting exports and controlling inflation are vital, overdependence on fertilizer subsidies requires a shift towards sustainable practices. Additionally, farmer education, infrastructure upgrades, support for small farmers, and climate change adaptation are crucial for building a truly resilient and prosperous agricultural sector in India.”

Tag: Union Budget 2024