While the industry as such goes head-over-heels praising the government some sound caution on the promises.
Here is a collection of industry voices.
Anand V.S., Managing Director, NOCIL Limited: The recent budget announcement by the government, which aims to skill 20 lakh youth over 5 years and upgrade 1,000 Industrial Training Institutes, is a significant move towards empowering the next generation. A highly skilled workforce becomes crucial as the chemical sector continues to evolve with technological advancements and innovation. Proficiency in the latest technologies and innovative techniques is vital for maintaining competitiveness. Skilled professionals are also essential for navigating stringent environmental and safety regulations, ensuring compliance, and avoiding costly penalties.
Managing the complex chemical processes involved in chemical manufacturing requires a skilled workforce to ensure high-quality production while minimising errors and safety risks. As sustainability becomes increasingly important, skilling in green chemistry and environmentally friendly processes is necessary to meet the demand for sustainable products and reduce environmental impact.
The Chemicals & Petrochemicals sector in India, with a current market size of around $220 billion, is expected to grow to $300 billion by 2030. For companies like NOCIL, a leading player in the rubber chemicals sector, these advancements are particularly pertinent. Our commitment to innovation and quality aligns with the need for a skilled workforce that can adapt to emerging markets and new applications.
By aligning course content with industry needs, the government’s budget allocation, which includes a total central outlay of Rs 2 lakh crore and a Rs 60,000 crore Skill Enhancement scheme, will modernise ITIs and support a skilled workforce. This initiative is expected to drive growth and contribute to the overall development and competitiveness of the chemical industry, benefiting both the youth and companies like NOCIL, as well as the sector at large.
Arjun Bajaj, Director – Videotex: The Union budget has highlighted manufacturing, infrastructure, and innovation as key priorities, signalling a strategic focus on these areas. However, the television manufacturing sector feels somewhat overlooked, as anticipated incentives and support were not fully addressed. Despite this, the budget’s emphasis on skilling and workforce development within the manufacturing sector is a positive step, fostering hope for future growth.
This focus on enhancing workforce skills aligns with the goal of positioning India as a global manufacturing hub. The government’s commitment to employment and employability is reflected in a ₹1.48 lakh crore provision, which includes incentives for job creation and EPFO contributions aimed at boosting the industrial and manufacturing sectors.
With fiscal support for infrastructure set at 3.4% of GDP, the budget aims to strengthen the foundations necessary for driving growth across various industries, including electronics manufacturing. Improved infrastructure, coupled with a skilled workforce, is expected to enhance the efficiency and competitiveness of the electronics manufacturing sector, paving the way for sustained industrial growth.
- P. Nandakumar, MD and CEO of Manappuram Finance: The Finance Minister’s decision to slash import duty on gold to 6% from 15% in the Union Budget 2024-25 will boost the business of gold loan companies going forward. In my view, the decision will set off an uptick in gold buying cycle in the short-to-medium term and will be mirrored in the retail sales of gold in the upcoming festive season. Consumers will use this window to buy ornaments to meet their pent-up demand. Demand for gold loans from households is more a function of their requirement for money to meet contingencies than just prices. Secondly, reduction in gold prices at the retail end is not significant to impact LTV offered by gold loan companies. This means that lower prices will neither trigger margin calls nor will it lead to repricing or restructuring of existing loans. Finally, it is geo-political factors that exert a predominant influence on gold prices.
Manikkan S, Executive Director & CEO, Radiance Renewables: The budget announcements by the Finance Minister reflect a strong and consistent commitment to renewable energy, building upon the foundation laid by the Modi 2.0 government. The launch of the PM Surya Ghar Muft Bijli Yojana is a significant step towards reducing our dependence on fossil fuels and aligning with global climate goals. This initiative, which aims to provide free electricity up to 300 units for over one crore households, sends a clear message of policy continuance and support for the renewable energy sector.
We are also encouraged by the government’s decision to partner with private energy companies and provide substantial R&D funding for new energy technologies. This will drive innovation and support the development of critical materials essential for the sector’s growth.
Overall, this budget sets a robust framework for advancing India’s clean energy transition, enhancing investor confidence, and promoting sustainable development. We remain committed to contributing to India’s vision of a Viksit Bharat, leveraging innovation and dedication to renewable energy to drive a resilient and green future.
Kundan Shahi, CEO, LegalPay: The Finance Minister’s announcement to strengthen the Insolvency and Bankruptcy Code (IBC) and enhance tribunal efficiency is a crucial step for India’s financial sector. These reforms, along with the integration of digital public infrastructure, will boost creditor confidence and ensure timely insolvency resolutions.
At LegalPay, we support these initiatives, which align with our commitment to providing innovative legal and financial solutions that drive market growth and resilience.
Shivani Sharma, Chefprenuer, Founder – Gourmestan
Globally, the rising cost of food ingredients has strained the F&B industry. The distribution of 109 new high-yielding and climate-resilient varieties of 32 field and cultivation crops to farmers can help to contain this uptick, and the cost benefit can passed on to consumers. The government has also proposed to initiate one crore farmers into natural farming, supported by certification and branding – this makes organic food more accessible, while being able to buy from certified brands enhances consumer trust. The income tax benefits under the new regime could afford more disposable income for consumers, indirectly translating into improved F&B spends
Mr. Bhavesh Shah, Joint Managing Director, Today Global Developers
“In the Budget 2024-25, the move to moderate stamp duty charges and lower stamp duties for women home buyers is a commendable step towards empowering women to invest in real estate and support their home-buying aspirations. However, the real estate sector had also hoped for measures such as reduced material costs, subsidies, and other benefits to further boost growth. Bringing back the interest subsidy under the Credit Linked Subsidy Scheme is a positive step. With home loan rates going up, this subsidy will give much-needed push for affordable housing segment. The PMAY Awas Yojana Urban 2.0 initiative is a positive development that will undoubtedly uplift and support housing for the LIG and MIG categories.
Darshan Ghodawat, CEO and Managing Director, AVA Global Logistics LLP.
The recent budget’s proposal to establish e-commerce export hubs is a significant step towards streamlining logistics and simplifying export clearances. These hubs, designed as bonded zones, will play a crucial role in reducing re-imports with substantial support from the private sector. Set up in a public-private partnership mode, this initiative is poised to benefit exporters by enhancing warehousing solutions and boosting overall exports. Further, the budget’s focus on strengthening vegetable supply chains through producer organizations and start-ups highlights a commitment to supporting agricultural growth and logistics by ensuring a robust supply chain.
Mukul Goyal, Co founder of Stratefix Consulting: The Union Budget 2024 presents an ambitious framework aimed at revitalizing India’s economic landscape, particularly for MSMEs, startups, artificial intelligence, and job creation. With a proposed allocation of ₹22,000 crore for the MSME sector, this budget has the potential to catalyze significant growth and innovation.
However, while the expansion of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is commendable, it could have been further enhanced by introducing specific incentives for eco-friendly technologies, which are crucial for aligning economic growth with sustainability.
The budget’s focus on ease of doing business is promising, with measures to streamline regulatory processes and extend tax holidays for startups. Yet, the absence of substantial changes in GST rates is a missed opportunity. Simplifying compliance and reducing the GST burden on essential goods for MSMEs would have provided immediate relief and improved cash flow management.
Moreover, while the introduction of employment-linked incentives and a ₹2 lakh crore allocation for job creation is noteworthy, the framework for skill development remains insufficient. A more robust approach to job-ready education and targeted training programs is essential to bridge the growing employability gap, particularly in high-demand sectors like AI and renewable energy.
Additionally, the budget lacks a comprehensive strategy to address the potential job displacement caused by AI advancements. A proactive approach, including retraining programs and direct benefit transfers for affected workers, could have been beneficial.
In conclusion, while the Union Budget 2024 lays a strong foundation for growth, it is imperative that the government prioritizes effective implementation and creates synergies across sectors. By addressing these gaps, we can ensure that the coming fiscal year transforms not just the economy, but also the lives of millions of Indians.
Aditya Dadia, Founder, Alwrite: This a forward-looking budget for entrepreneurs and entrepreneurship. I welcome the announcement made by Finance Minister Nirmala Sitharaman to abolish the angel tax for all classes of investors as that will help in attracting more start-up investments in the country. Being in the start-up sector, I understand that this move will particularly be beneficial for the early-stage start-ups especially amid a funding winter season.
Other provisions such as credit guarantee scheme for MSMEs and formulated package to finance technology support to MSMEs will further foster growth across all major sectors and support economic development.
Ashok Rajpal, Managing Director – Ambrane India: In her Budget speech on July 23, 2024, Finance Minister Nirmala Sitharaman proposed reducing the basic customs duty on mobile phones and chargers from 20 per cent to 15 per cent. This move is expected to boost exports and enhance global competitiveness while also increasing domestic adoption by lowering costs. The finance minister emphasized the maturity of the Indian mobile phone industry and highlighted a strong focus on manufacturing, R&D, and innovation, particularly within the MSME sector. These measures are poised to drive substantial growth in the consumer electronics and mobile accessories industries, positioning India as a leading manufacturing hub.
Rakesh Goyal, Managing Director, Probusinsurance.com: For the insurance sector, there weren’t any big announcements as expected by the industry, like a reduction in the goods and services tax (GST) on premiums or an increasing net of Ayushman Bharat to the middle-class segment. However, the budget has proposed a reduction of 5 percent to 2 percent of tax deducted at source (TDS). This move will result in fewer TDS claim filings and higher payouts for policyholders as the policy matures. However, the middle class, in particular, had high expectations for today’s budget to provide some tax relief. However, the announcement of an increase in both short-term and long-term gains on specified financial assets served as a dampener.
Sachin Sharma, Founder and Director – GEM Enviro Management Limited: The recent budget marks a significant advancement in the waste management sector, particularly in tackling e-waste and plastic waste. By emphasizing the recycling of critical minerals, the budget aims to reduce our reliance on imports. Key initiatives include technological upgrades, workforce development, and the establishment of an extended producer responsibility framework with appropriate financing. However, building a robust supply chain and fostering effective connections between recyclers, manufacturers, and waste producers remains crucial. The budget’s focus on sustainable growth and the promotion of a circular economy highlights a strong commitment to long-term environmental stewardship and resource efficiency.
Amit Uplenchwar, Director, Kalpataru Projects International Ltd.: Energy security and infrastructure have been highlighted as top priorities in the budget proposal by the Hon’ble Finance Minister. Alongside the allocation of INR 11 lakh crore for capital expenditure, the government has pledged to maintain strong fiscal support for infrastructure investment. The provision of INR 1.5 lakh crore for long-term interest-free loans to states for infrastructure development is a positive announcement that will significantly boost state-level projects. It is encouraging to see the government promoting niche areas in the renewable energy ecosystem, such as pumped storage hydro projects and modular nuclear reactors. Moreover, the commitments to enhance private investment in the sector through viability gap funding, enabling policies and regulations, and a market-based financing framework will attract private capital and stimulate business growth within the domestic market. A big thumbs-up to this futuristic budget!
Nita Kapoor, CEO, International Spirit Wine Association of India: Employment and Skilling as a priority under Viksit Bharat sends out a strong signal that the government is keen to mitigate the crisis of rising unemployment , and low skills. The alcobev industry welcomes the formal announcement in the budget to keep ENA outside the purview of central tax.
Sanjeev Dasgupta, CEO of CapitaLand Investment India: The government’s commitment to establish ‘plug and play’ industrial parks and ‘Cities as Growth Hubs’ will unlock significant investment opportunities and drive demand for modern commercial spaces in the country. With added benefits, this move will also incentivize global firms to strengthen their manufacturing hubs in India.
Additionally, the proposed ‘Transit Oriented Development’ will be a promising step towards decongesting cities, and creating a vibrant landscape for investment. Faster implementation, with a focus on regions such as Bangalore, Mumbai and NCR will be imperative to sustain and accelerate the pace of industrial development and new workforce integration.
Vaibhav Gupta, Partner, Dhruva Advisors: Big changes have been announced on capital gains taxes. While long term capital gains taxes have been reduced for residents on unlisted shares and real estate, it is interesting to note that the long term capital gains tax for non-residents on unlisted shares has been increased from 10% to 12.5%. This will clearly impact returns of FDI investors. Removal of cost indexation on all assets is a very significant change which will impact real estate returns in a big way! At the same time, for Indian promoters wanting to sell their unlisted businesses, the reduction in the tax from 20% to 12.5% is a very welcome change. It brings listed and unlisted share sales at par. The other important change is that any capital gains on bonds and debentures will also be treated as short term capital gains which shall be taxed at the applicable tax rates. While changes in buyback were anticipated, however treating buyback as dividend and allowing capital loss of the cost of purchase to the shareholders is likely to reduce the attractiveness of a buyback. Reduction of the holding period to two years for long term capital gains should be a big positive for the real estate sector. Lastly, the taxability of share transfer in an offer for sale has been clarified to provide that the cost offset will be based on indexation till FY2018, which brings this at par with the sale post listing.
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.
Niraj Bagri, Partner, Dhruva Advisors: In continuation of strengthening the Make in India initiatives, the Budget has made several changes to address the anomaly of inverted duty structure in Customs laws targeting specific sectors like nuclear, solar energy, leather and textile industries, marine exports etc. It has also proposed a comprehensive revamp of customs duty structure to be carried out in next six months to rectify the inverted duty structure and reduce disputes. Another welcome measure is acceptance of self-certificate, as provided by the new trade agreements, as sufficient proof of certificate of origin. This should reduce the ambiguity and subjectivity in assessment of imports under Free Trade agreements.
The changes in GST law have been carried out largely to implement the changes proposed by the 53rd GST Council meeting. Thus, provisions allowing input tax credit to be taken till 30th November 2021, classifying no supply of transactions between co-insurer and lead insurer, exemption from compensation cess on supplies to SEZ developers, units etc have been duly incorporated.
By aligning the time limit for raising GST tax demand to a uniform period of 42 months and permitting the input tax credit of taxes paid under such demand irrespective of allegations of fraudulent intention is likely to discourage the indiscriminate use of issuing tax notices alleging malafide intention.
Permitting authorized representative like employees, legal counsel or chartered accountants to appear in response to summons issued should provide relief from the practice of summoning senior officials of the company even though they may not be best suited to provide responses on tax matters.
Sandeep Bhalla, Partner, Dhruva Advisors: The amendments to sections 148, 148A, and 149 in the Finance Bill 2024 aim to streamline the reassessment and re-computation processes under the Income Tax Act.
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 labour, 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.
Rohit Nagdewani, Founder, Fresh From Farm: The comprehensive review of the agricultural research setup, as announced by Ms. Sitharaman, is a monumental step towards transforming Indian agriculture. I believe that the focus on raising productivity and developing climate-resilient varieties will significantly address the challenges faced by our sector. The inclusion of funding in challenge mode, extended to both the private sector and domain experts, ensures that innovative solutions will be developed and implemented effectively. This initiative will not only enhance crop production but also fortify our efforts in cultivating resilient varieties of fruits, ensuring sustainability and growth for the future.
Amith Agarwal, Co-Founder & CEO, StarAgri: I commend the government and Madam Finance Minister for presenting a progressive and bold budget. As an agri-entrepreneur, I appreciate the emphasis on releasing high-yielding and climate-resilient crop varieties for farmers. This initiative will enable farmers to cultivate crops naturally, reducing the reliance on large amounts of pesticides. Furthermore, the focus on modern agricultural technologies will equip farmers with new methods, thereby enhancing their contribution to the GDP. The emphasis on achieving self-reliance (Atmanirbharta) for oilseeds such as sesame, mustard, and sunflower is crucial. This strategy not only transforms crop patterns but also significantly boosts farmers’ incomes, contributing to India’s self-reliance and strengthening its food security programme.
Satish Bhatia, Co-founder of The Malabar Coast,: We are thrilled with the Union Budget’s focus on driving economic growth, consumer spending, and tourism development, which will have a positive impact on the FnB industry. At Malabar Coast Restaurant, we expect increased footfalls, sales, and online ordering growth, driven by initiatives like digital payments, GST rate reduction, and skilling programs. We look forward to expanding our customer base, enhancing customer experience, and showcasing our culinary offerings to a wider audience, particularly in the mid-to-premium dining segment. Overall, we are optimistic about the future prospects for Malabar Coast Restaurant and the industry as a whole.
Shalya Gupta, CEO, PHF Leasing Limited: This budget focuses on job-creation and we welcome the steps that will ensure that the first timers / interns / youth will get a level playing field. The PM Package for Employment linked Incentives is a brilliant way to incentivise private and public sector in skilling of the youth of the country, so that they are able to eke out a respectable living. Companies like ours which hire and skill a large number of first time job seekers will benefit and be rewarded. It will also encourage companies to hire more youngsters, which will make a sizeable dent to the issues of joblessness and employability.
Nitin Aggarwal, CEO, TVS Infrastructure Investment Manager Private Limited.: It is heartening to see that the Union Budget has recognised the infrastructure sector’s pivotal role in India’s economic growth. The budget’s focus on developing the Eastern region, particularly through the establishment of industrial nodes in Gaya and Kolkata, aligns perfectly with our strategic expansion plans. This initiative, coupled with the enhancement of road connectivity projects, will significantly bolster the logistics network, driving efficiency and facilitating seamless operations in the Eastern regions.
The government’s commitment to developing investment-ready plug-and-play industrial parks and simplifying FDI rules will further position warehouses as a prime investment asset class. The anticipated inflow of foreign direct investment will support the sector’s growth, enhancing India’s global competitiveness. Additionally, the reduction in holding periods for units of Business Trusts (BTs) for the applicability of long-term capital gains tax is a move towards aligning REITs/InvITs with equities. This step can provide the relevant depth to REITs/InvITs as an investment segment for varied investor classes.
The budget’s emphasis on labour-intensive manufacturing and MSMEs is particularly noteworthy. The comprehensive package covering financing, regulatory changes, and technology support will empower our labour force, especially in Tier-2 and Tier-3 cities. Additionally, the announcement of e-commerce export hubs under a seamless regulatory and logistic framework is a game-changer. However, recognizing warehousing as an industry class and promoting sustainable practices would have provided more comprehensive support. Land reforms are essential for streamlining land deals and acquisitions, which are critical for developing large-scale warehousing facilities. Uniform land acquisition norms across states and simplified warehousing compliance processes would further catalyze the sector’s growth. Overall, the Budget lays a strong foundation for a resilient, sustainable, and globally competitive industrial ecosystem in India.
Kami Viswanathan, President, FedEx, MEISA: We welcome the reduction in corporate tax rates for foreign companies. The Union Budget 2024’s forward-looking proposals to balance infrastructure development, build a skilled workforce, promote environmental stewardship, and advance digitization are set to drive transformative growth. Allocating 3.4% of GDP towards infrastructure, strengthening the Jan Vishwas Bill 2.0, and incentivizing states to implement Business Reform Action Plans will create seamless trade corridors. Additionally, the abolition of angel tax will positively impact the startup ecosystem, fostering innovation and growth. A strong focus on supporting MSMEs and manufacturing will further strengthen India’s position in the global trade landscape.
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.
William Hall, Vice-President of Marketing & Digital: RCI EMEA, APAC & India: We applaud the Indian government’s visionary Budget 2024, particularly its transformative approach to travel and tourism. The focus on developing iconic spiritual and cultural destinations resonates deeply with our commitment to offering diverse and enriching travel experiences. The tax relief for cruise operators is a welcome move, fostering growth in this exciting sector. We are particularly encouraged by the emphasis on enhancing beach destinations, which aligns perfectly with our portfolio of coastal properties. This budget sets the stage for India to truly shine as a premier global travel destination, boosting international tourism and showcasing the country’s unique attractions.
Deeksha Ahuja- Founder, Encubay: The Union Budget 2024 has shown a commendable commitment to women’s development by introducing a range of women-friendly initiatives. The allocation of ₹3 lakh crore towards women-centric schemes is a significant step in the right direction, aimed at benefiting women and girls across various sectors. The introduction of working women hostels facilities is particularly remarkable, as it will facilitate higher participation of women in the workforce. This budget  focused approach towards large-scale development for women, ensuring they have the necessary support and opportunities to thrive. At Encubay, we are inspired by these measures and look forward to the positive impact they will have on empowering women and fostering an inclusive economy.
Priyanka Bhatt – Founder, Equations PR and Media: The Union Budget 2024, as presented by Finance Minister Nirmala Sitharaman, demonstrates a commendable focus on the middle class, employment, skilling, and the MSME sector. This year’s budget is a promising step towards bolstering India’s economic resilience and growth. The substantial allocation of Rs 3 lakh crore towards women-centric schemes is particularly noteworthy. This investment is poised to empower women across various sectors, driving gender equality and fostering inclusive development.
Rajesh Bharatiya, Co-Founder & CEO, Peoplefy: Honourable Finance Minister Nirmala Shitaraman’s 2024-25 Union budget proposals relating to skill development will contribute towards India’s workforce and economy by enhancing employability and fostering economic growth However, the budget does not specify how the new jobs would be created. India’s current demography generates more than 40 million new job seekers every year. Along with skilling, India needs a detailed strategy on new job creation.
Shanti Ekambaram, Deputy Managing Director Kotak Mahindra Bank; The finance minister prioritized nine key areas, aiming to benefit the poor, women, youth, and farmers. These areas include agriculture, employment, skilling, and manufacturing. The infrastructure outlay remained at 11 lakh crores, with a focus on housing. The fiscal deficit target of 4.9% is commendable, and the emphasis on the fiscal consolidation path is positive. However, the surprise twist was the Capital Gains tax: short-term capital gains at 20% and long-term gains at 12.5%. While this may impact sentiment in the short term, the overall focus on employment, development, and infrastructure promises long-term benefits. In summary, it’s a sensible budget that addresses key segments, sectors, and states while maintaining fiscal discipline.
Arjun Ranga, Managing Director, Cycle Pure Agarbathi: The budget for the fiscal year 2024-2025 has been unveiled, promising a comprehensive approach to advancing India’s growth journey. The creation of a new credit assessment framework will greatly increase the number of MSMEs eligible for credit. It will cover MSMEs without a formal accounting system as well, as compared to the traditional assessment system which determined credit eligibility based only on assets or turnover. The increase of the limit for Mudra loans to 20 lakh from the current 10 lakh will further serve to bridge financing challenges in the sector.
Traditional artisans are a critical component of India’s economy, and hold great potential to boost India’s exports and promote the country’s soft power on a global scale. In this context, the setting up of e-commerce export hubs through Private-Public-Partnerships to enable traditional artisans to sell their products in international markets is a welcome move. The promotion of digital public infrastructure and e-commerce export hubs is also particularly relevant, as it aligns with the growing trend of online retail and opens up new avenues for Indian retailers to tap into global markets.
The need of the hour is to provide vocational training and industry-relevant skills to improve the employability of India’s graduates, and the initiative to update 1,000 industrial training institutes in a hub and spoke model will definitely further our progress in this regard, while also boosting employment in Tier2 and Tier 3 cities. Currently, there continues to be a heavy dependence on metropolitans and soon-to-be-metropolitans for India’s skilled workforce, and this restructuring will help create a more distributed workforce with industry-focused hubs that leverage the unique geographical and demographic strengths of each small town and city.
While the budget’s promise to collaborate with industry partners to establish working women hostels and creches, organize women-specific skilling programs and promote market access for women self-help group enterprises is a welcome move, the formalization and concretisation of this into standard policy frameworks and employer incentives will determine its efficacy in bridging the gender gap in India’s workforce.
The progress of any economy is directly proportional to disposable income in the hands of its consumers, and in this regard, the government’s tax reforms promise to increase spending power, especially for the middle class.
Suresh Babu, CEO, Restolex: The Union Budget 2024 includes several measures aimed at boosting opportunities in the manufacturing and retail sector. India’s local manufacturing push necessitates the incentivisation of young professionals to dedicate their time and expertise to vital, nationally significant sectors. In this regard, the Finance Minister’s initiative to encourage the creation of jobs in the manufacturing sector is expected to result in the employment of an additional 50 lakh people in the industry. The initiative to update 1,000 industrial training institutes in a hub and spoke model will undoubtedly further our progress in this regard, while also boosting employment in smaller cities and towns.
The budget also presents a new broad-based credit guarantee scheme for term loans to MSMEs for procuring machinery and equipment that previously required collateral or third-party guarantees. This scheme will help in aggregation of credit risks and provide guarantee cover up to 100 crore rupee. This Initiative is sure to assist MSMEs in upscaling their operations and enhancing technology adoption with low levels of exposure to risk.
For retailers, the budget promises to streamline operations through its emphasis on urban growth and infrastructure upgrades, such as improved supply chain networks and logistics. This will enable more timely delivery of goods and higher consumer satisfaction. In this context of rising e-commerce spends, the promotion of e-commerce export hubs and digital public infrastructure gives Indian retailers new ways to reach international customers.
In taxation policy, the budget gives some relief to the employees who are getting salary and pensioners who have shifted to the new tax exemption rules and slabs. For the earned income, new hands and salaried employees, this standard reliefs shall be adjusted to ₹75, 000 and the allowance on family pensions to ₹25, 000 from previous ₹15, 000. These changes are predicted to impact approximately four crore taxpayers. These reforms will mean increased savings and spending power, especially among the middle class. This in turn will greatly boost local demand for consumer goods, pushing firms to boost local manufacturing and scale their businesses.
While such measures promise to boost demand and streamline production for retailers, a strong execution framework is necessary to ensure the operationalisation of the same.
Rohit Gupta, Vice President-Finance, HRIPL on the Union Budget 2024-2025: The Union Budget 2024-2025 is strategically designed to boost consumption and stimulate demand across various sectors. A key focus is on enhancing the agriculture sector and rural economy, while continuing to emphasize women empowerment, employment generation, and youth skill development. The MSME sector benefits significantly from an increased Mudra loan limit from INR 15 to 20 lakhs and the introduction of a credit guarantee scheme in the manufacturing sector. Rationalized taxes for individuals are set to increase disposable income, further driving consumption and fuelling demand for products and services.
Manish Kothari, Head – Commercial Banking, Kotak Mahindra Bank Limited: The Union Budget 2024-25 has stuck to the goal of long-term nation-building, focusing on providing continuity to the key socio-economic objectives outlined in the Interim Budget. While capex & infrastructure spend is the big theme for providing a multiplier effect to economic growth, the FM has taken a bottoms-up & granular strategy of growth by looking to transform agri productivity along with ground level build-out of agri infra, financing & marketing support; jobs for youth along with skill development to reap benefit from the demographic dividend; empower & aid women to join the workforce; push for employment generation through support to MSMEs at the bottom of the chain; use indirect taxes to support export; put a little extra in the hands of the middle class consumer; etc. The Budget has gone in depth to address structural issues of productivity, efficiency and resilience through well-thought out schemes and ideas, but managed to stay on the right side of the fiscal consolidation path. For me, the Budget has ticked all the right boxes for achieving long-term sustained growth!
Dharamveer Singh Chouhan, Co-Founder & CEO, of Zo World: The Union budget for the Financial year 2024-25 marks a significant boost for the tourism industry, underscoring the government’s commitment to transform India into a preferred global destination for tourists. The budget has allocated substantial resources to developing and enhancing tourist infrastructure, including scenic landscapes, historic temples, cultural heritage sites, wildlife sanctuaries, and pristine beaches across the country.
The government has announced its intention to preserve cultural landmarks, improve accessibility, and promote diverse tourist attractions through comprehensive development programs. This is highly encouraging for pioneers behind new-age techno-cultural movements.These initiatives are designed to create jobs, attract investments, and stimulate economic growth in related sectors such as hospitality, retail, and transportation. The overarching goal is to leverage India’s rich cultural and natural heritage to drive sustainable tourism, enhance India’s position as a global superpower. The strategy also puts the spotlight on tourism as “the” industry that will enable both cultural preservation, and long-term economic growth, while simultaneously championing the cause of diverse communities around the country.
These measures are commendable, and will undoubtedly boost confidence in both hospitality and tourism as lucrative startup sectors. At the same time, the Zo World community remains optimistic about enhancements that can propel this vision at least 10x, such as tax reductions for the hospitality industry (to encourage entrepreneurial strides in this direction), subsidies for startups that will contribute directly to the tourism sector, increased support for digital transformation in hospitality services, and additional funding allocation that will help market India’s diverse tourist destinations on the global stage.
Zo is excited to align its plans with such initiatives on a national scale, leveraging the enhanced infrastructure and increased tourism to expand its techno-optimistic hospitality footprint and offer truly unique & future-ready experiences across the map.
Mukul Goyal, Co founder of Stratefix Consulting:
“The Union Budget 2024 presents an ambitious framework aimed at revitalizing India’s economic landscape, particularly for MSMEs, startups, artificial intelligence, and job creation. With a proposed allocation of ₹22,000 crore for the MSME sector, this budget has the potential to catalyze significant growth and innovation.
However, while the expansion of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is commendable, it could have been further enhanced by introducing specific incentives for eco-friendly technologies, which are crucial for aligning economic growth with sustainability.
The budget’s focus on ease of doing business is promising, with measures to streamline regulatory processes and extend tax holidays for startups. Yet, the absence of substantial changes in GST rates is a missed opportunity. Simplifying compliance and reducing the GST burden on essential goods for MSMEs would have provided immediate relief and improved cash flow management.
Moreover, while the introduction of employment-linked incentives and a ₹2 lakh crore allocation for job creation is noteworthy, the framework for skill development remains insufficient. A more robust approach to job-ready education and targeted training programs is essential to bridge the growing employability gap, particularly in high-demand sectors like AI and renewable energy.
Additionally, the budget lacks a comprehensive strategy to address the potential job displacement caused by AI advancements. A proactive approach, including retraining programs and direct benefit transfers for affected workers, could have been beneficial.
In conclusion, while the Union Budget 2024 lays a strong foundation for growth, it is imperative that the government prioritizes effective implementation and creates synergies across sectors. By addressing these gaps, we can ensure that the coming fiscal year transforms not just the economy, but also the lives of millions of Indians.”
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.
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.
JAI ANDHRA! Jayadev Galla, Chairman, Amara Raja Group: Union Budget allocations for Andhra Pradesh is a step in the right direction. 15,000 Cr support for Capital development, commitment to financing & completion of Polavaram irrigation project, grants for backward districts and allocation of funds for various social & Infra development projects will significantly attract new investments and spur growth. We eagerly await to see the actual allocations for other projects, and fulfilment of commitments made in the AP Reorganisation Act. We look forward to continued support from the Centre as we work to rebuild the State.
Rishabh Kothari – Additional Secretary, Shri Ram Chandra Mission: The budget 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 centres.
Sushilkumar Agrawal, CEO, Ultra Soft Toys: As a toy manufacturer, we are happy with the 2024-25 Budget that concentrates on increasing local production. The tariffs imposed on imported toys and obligatory quality standards will drastically cut down our dependency on imports. The PLI (Production Linked Incentive) scheme is a game-changer as it attracts investments and improves our manufacturing capabilities. Additionally, these initiatives shall not only lead to growth and competitiveness but also foster the growth of strong indigenous toy clusters. We believe that such steps would lead to employment creation and make India a global player in the toy industry.
Radhika Kalia, Managing Director at RLG Systems India Private Limited: The allocation of over ₹3 lakh crore towards schemes benefiting women and girls in the Union Budget 2024 shows a strong commitment to women-oriented development programs. Such investment will enhance women’s role in economic activities and empower them to assume leadership roles. The government’s initiatives as reflected in the budget to promote inclusive human resource development and social justice should see the upliftment of women entrepreneurs, self-help groups, artisans, communities, and drive sustainable growth. As a result of these initiatives, we expect to see better participation of the workforce in the waste management sector also.
Sriram Iyer – CEO, HDFC Pension: The NPS proposals in Budget 2024 take significant steps towards the Government’s goal of making India a pensioned society by 2047.
The extra 4% contribution under the corporate NPS scheme offers salaried employees additional tax savings and boosts their retirement funds. This change also helps companies streamline their contributions exclusively towards NPS, making management simpler.
NPS Vatsalya is another notable innovation. It allows parents or guardians to contribute to a child’s pension from birth, ensuring a strong foundation for future retirement savings through compounded returns.
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.
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.
Davinder Juj, General Manager Eros Hotel New Delhi: We welcome the provisions presented in Union Budget 2024 by Finance Minister Nirmala Sitharaman, particularly the initiative to transform several iconic locations into world-class tourist destinations. This strategic move aims to attract businesses, support entrepreneurship, and create job opportunities for local communities. We also commend the government’s dedication to positioning India as a top global travel destination through targeted investments and strategic efforts. The development of prominent spiritual and cultural sites, along with the nation’s natural and scenic attractions, will attract both domestic and international tourists, bolstering the growth of the hospitality and travel sector.
Sanjay Borkar, CEO & Co Founder, FarmERP: The recent budget reflects a transformative vision for the agritech sector, prioritizing productivity and resilience in agriculture. The dedicated funds for agricultural research, particularly for developing climate-resilient crop varieties, showcase the government’s commitment to innovation. Support for agribusiness startups, especially in the vegetable supply chain, underscores a strategic focus on critical growth areas. Establishing 100 food quality and safety inspection labs marks a significant step towards ensuring the highest food safety standards. Additionally, promoting the sale of Indian crops overseas through e-commerce, supported by public-private partnerships, enhances India’s global competitiveness. The introduction of Digital Public Infrastructure (DPI) for a digital crop survey of the ongoing Kharif season across 400 districts, coupled with the expansion of the Kisan Credit Card scheme to five states, will improve farmers’ access to credit and facilitate the adoption of new technologies. This holistic approach aims to drive the sector towards a more resilient and sustainable future, benefiting farmers and consumers alike.
Saurabh Marda, Co-founder and Managing Director Freyr Energy: The recent budget has been highly favourable 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.
