It looks like the budget is quite comprehensive, aiming to cater to various sectors and individuals alike, say industry captains.
Himmath Jain, Co-Founder & Director, AS-IT-IS Nutrition: The Budget 2024’s revised taxation policy is a significant step forward for the nutrition industry, fostering growth and innovation. By simplifying tax structures and offering incentives for health-focused businesses, the government has created a more conducive environment for companies. These changes will enable us to invest more in research and development, improve product offerings, and ultimately provide better value to our customers. Additionally, the focus on reducing tax burdens for SMEs will help us scale operations more effectively. We are optimistic that these policies will drive sectoral growth and support our mission to deliver high-quality, affordable nutrition to every household in India.
The Finance Minister has also announced that the government will launch a comprehensive scheme to provide internship opportunities in the top 500 companies to 10 million youth for a duration of 12 months. This initiative is the government’s way of introducing a solution similar to the Agniveer program to address the burgeoning issue of vanishing job opportunities. If executed well, it has the potential to add significant value to both job seekers and employers.
Zeeshaan Pathan, Group MD and CEO of World Development Corporation : The new budget 2024 is going to transform business operations for good. The initiative to incentivize reforms for improving productivity of factors of production also look promising. The internship scheme integrates CSR with business operation and will create a skilled talent pipe for the youth, that will facilitate early identification of talent to drive growth in the long run. The establishment of an integrated tech platform for IBC will hold significance to the cause of creditors and stakeholders by bringing uniformity and transparency in the process of resolution and enhancing recovery rates. Looking at the bigger picture of the budget, and considering the focus on road connectivity and infrastructure, the productivity and resource management for industries will be power-driven backed by increased support to investment by private players.
Prashant Kumar, MD & CEO, YES BANK: This Budget gets full marks for the choice of areas that the government would want to support in its effort to gradually move India towards its ultimate Viksit stage. This Amrit Kaal has come to India due to its strong demographic dividend and the large number of youths joining the employment force. This needed interventions on all aspects – not only to provide formal education to the youth, but also to encourage the perfect skill mapping. Of note is the support being provided in the budget to MSMEs to scale up and compete with the world by enabling funding to the segment. Doubling the limit for Mudra loans also need to be called out as this will enable small businesses to develop.
Rajan Pental, Executive Director, YES BANK: We welcome the significant measures introduced in the Union Budget, by the Honourable Finance Minister, to bolster MSMEs and the manufacturing sector, enhancing their growth prospects and global competitiveness. The launch of the Credit Guarantee Scheme, which provides term loans up to ₹100 crore without requiring collateral, will notably reduce risk for banks and expand their lending opportunities, facilitating greater investment in essential machinery and equipment.
The new credit assessment model, which leverages digital footprints, represents a transformative shift in evaluating MSME creditworthiness. This innovation will streamline the credit process and extend support to MSMEs that lack formal accounting systems, making credit access more inclusive and efficient. Additionally, the enhancement of Mudra loan limits to ₹20 lakh and the provision for continued credit support during periods of stress are designed to stabilize borrowers and reduce the likelihood of non-performing assets. These measures will help maintain operational continuity and foster growth.
The reduction of the TReDS onboarding threshold to ₹250 crore will significantly improve MSME liquidity by facilitating the conversion of trade receivables into cash. Meanwhile, SIDBI’s expansion to cover 168 major MSME clusters will broaden credit access and strengthen financial inclusion. Overall, these strategic measures are expected to drive substantial MSME growth, spur innovation, and fortify India’s economic resilience. For the banking sector, these changes present valuable opportunities for increased engagement with MSMEs, while mitigating risk and enhancing financial stability.”
Please find appended quote from Mr. Indranil Pan, Chief Economist, YES BANK: The Budget takes a leaf out of the strategic direction to sustainable growth that has been penned by the Economic Survey. Thus, even with one eye on the fiscal consolidation, the government announced structural measures to boost employment – not only in terms of numbers but also quality, addressed the need to scale up MSMEs through credit facilitation to the sector – even for MSMEs that do not strictly have a formal accounting system. To aid small business, the mudra loan limits have also been enhanced. We believe that this is a budget for the longer term while near term consumption boost comes through providing benefits to income taxpayers. The Budget also promises structural reforms in the factors of production and use market forces to boost the growth story. Equity market participants may not have been happy with the Budget as the STT, LTCG tax rates go up. However, this was government’s way of casting its tax net wider. We see a reduction in the market borrowing programme by Rs 120 bn while net T-bill issuance is lowered by Rs 1 tn over the interim Budget. The reduction in the net T-bill issuance may aid domestic liquidity and push down short-term rates while long tenor rates may remain sticky.
Kaushik Das, Founder and CEO of AAO NXT, East India’s premier OTT platform: The 2024 Union Budget presents a forward-thinking approach, especially in the realms of technology, regional development, and digital innovation. The reduction of Basic Customs Duty on mobile phones and related components to 15% is a significant step that will lower costs and enhance accessibility to digital devices, which is crucial for platforms like AAO NXT. Additionally, the government’s commitment to supporting the development of regional storytelling and the tourism sector, including backing the development of Nalanda in Bihar and extending support to Odisha’s tourism, aligns perfectly with our vision to showcase Odisha’s rich cultural heritage through digital content.
Moreover, the initiative to set up a ₹1,000 crore venture capital fund for space economy highlights the government’s dedication to fostering innovation and technological advancement. This, coupled with the enhanced focus on employment-linked skilling programs and the emphasis on energy security, will undoubtedly create a conducive environment for startups and established companies alike. These measures will not only boost the regional OTT landscape but also propel us towards our goal of making AAO NXT a global platform for localized content.
Overall, the budget’s focus on promoting digital infrastructure, regional development, and innovation reflects a robust framework for sustainable growth and positions India as a leader in the digital entertainment space.”
Apurv Modi, Managing Director & Co-Founder of ATechnos Group: The Union Budget 2024 focuses on nine key priorities and demonstrates a comprehensive approach to India’s growth and development. I am excited about the emphasis on Innovation, R&D, and Next Generation reforms. These priorities align perfectly with the digital revolution that’s reshaping our economy.
The focus on Manufacturing and Services, coupled with Urban Development and Infrastructure, creates fertile ground for technological advancements. We see immense potential for digital solutions to drive efficiency and innovation across these sectors.
Also, the budget introduces a new mechanism to facilitate the continuation of bank credit to MSMEs during their stress period. This is a crucial step in ensuring that MSMEs, which form the backbone of our economy, receive the necessary financial support to navigate challenging times. The introduction of a new MSME guarantee plan to enable loans up to ₹100 crore further underscores the government’s commitment to supporting small businesses. The increase in the limit of Mudra loans from ₹10 lakh to ₹20 lakh is another significant measure that will empower small businesses and entrepreneurs, enabling them to expand their operations and contribute to economic growth.
In the taxation domain, the removal of the Angel Tax on all classes of assets is a welcome move, promoting a more favorable investment climate. The standard deduction limit has been increased to ₹75,000 from ₹50,000, providing much-needed relief to taxpayers. Additionally, the lowest slab in the new tax regime has been increased to ₹3 lakh from ₹2.5 lakh.
Moreover, the government’s decision to allocate ₹2 lakh crore for job creation over the next five years is a significant step towards addressing unemployment and fostering economic stability.
The synergy between these priorities and the digital realm will be key. Whether leveraging AI for better urban planning, using IoT for energy management, or developing innovative solutions for employment generation, the digital sector stands ready to contribute significantly to realizing this vision.”
Sohail Mirchandani, Chief Operating Officer & Co-Founder of Ekostay, a homestay venture: The 2024 Union Budget brings transformative changes that hold great promise for the hospitality and homestay sector. As a co-founder of EKOSTAY, I am particularly excited about the implications of these developments for our business.
The government’s substantial allocation of Rs 50,000 crore towards infrastructure development, including a major boost to urban infrastructure through the PM AWAS Yojana Urban 2.0, will significantly enhance connectivity and accessibility. This is especially beneficial for the homestay industry, as improved infrastructure will make our unique, personalized accommodation options more accessible to travellers.
Furthermore, the emphasis on the ‘Make in India’ initiative and the Production Linked Incentive (PLI) scheme will likely foster economic growth and improve consumer spending power, which could lead to increased demand for experiential stays like ours.
Overall, these budgetary measures are set to support and elevate the homestay sector, providing EKOSTAY with exciting opportunities to expand and offer even more exceptional experiences to our guests.
S Anand, Chief Executive Officer and Founder of PaySprint, a fintech venture: As we eye on the budget 2024 today, we shift our gaze to the improvements in the manufacturing and services sector, where FM Nirmala Sitharaman announced the credit support for MSMEs, increasing the loan limit from ₹10 lakh to ₹20 lakhs, especially for those, who have availed and repaid loans under Tarun Category. I believe enhancing the mudra loan limit is a strategic move that supports the backbone of the Indian economy. It fosters a conducive environment for growth, innovation, and competitiveness, ensuring that these enterprises can contribute robustly to the nation’s economic development.
Additionally, this declaration will witness an increase in capital access that will enable these businesses to expand operations, invest in innovation, and create more jobs, thereby solidifying economic growth. In light of this, it rewards responsible borrowing behaviour, enhancing MSME owner’s confidence and encouraging growth. While simultaneously, helping MSMEs adopt new technologies, improve productivity and compete globally. Overall, this policy strengthens the resilience and competitiveness of MSMEs, reinforcing their crucial role in India’s economic development. With this newfound development, SprintNXT wishes to strengthen the MSME sector with its innovative solutions and pave the way for a simplified path towards the business banking switch it endorses.
In continuation to this, the 2024 Union Budget introduces a range of significant measures that are set to revolutionize the fintech sector. At PaySprint, we are particularly excited about the implications of these changes. The government’s Rs 50,000 crore investment in infrastructure development will greatly enhance the digital and financial frameworks essential for fintech growth.
The abolition of the angel tax is a noteworthy development, fostering a more favourable environment for investment in fintech innovations. Furthermore, the simplification of tax regimes, including the merger of charity exemptions and the revision of long-term capital gains tax to a rate of 12.5%, will streamline financial operations and create a more predictable landscape for our industry.
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.
Sandeep Garg, Co-founder & CEO, Blostem: The 2024 Budget’s abolition of the Angel Tax is set to create a more supportive environment for angel investments, significantly benefiting the entire startup ecosystem. This removal will facilitate startups in raising funds and investing in their growth, thereby fueling job creation. Additionally, MSME lending through new assessment models based on the digital footprints of MSMEs, rather than relying solely on assets or traditional credit appraisal methods, is expected to spur a new wave of fintech and banking innovation in MSME credit. This approach will help bridge the credit gap in the MSME sector. The government’s focus on creating digital public infrastructure in areas such as e-commerce, health, law, logistics, and lending will further digitize the Indian economy, providing numerous opportunities for startups to innovate.
Kesava Reddy, Chief Revenue Officer, E2E Networks Ltd – Cloud computing platform: Digital Public Infrastructure (DPI) is crucial for the future of our nation, and we are pleased to see the government taking significant steps in this direction. By integrating AI with DPI, the government will efficiently serve the bottom of the pyramid, ensuring that every citizen is reached in their native language. This initiative marks a transformative era in public service delivery, bringing inclusivity and accessibility to the forefront. We are proud to support this journey of building a new India, Nava Bharat Nirman Yatra, as it paves the way for a more connected and equitable society.”
Hiranmay Mallick, CEO, Tummoc – Public Transit App: The Union Budget 2024 is a significant step forward for the mobility, transit, and startup sectors. I am particularly excited about the investments in rural and urban infrastructure, which will enhance connectivity and reduce congestion. The PM Surya Ghar Muft Bijli Yojana will lower EV charging costs, promoting sustainable mobility. The abolition of angel tax is a major win for startups, encouraging investment and innovation. Additionally, the increased allocation for MSMEs and focus on technology support will foster a more robust startup ecosystem. However, increased taxes on certain financial instruments might challenge us. Overall, the budget supports sustainable growth and innovation, setting a positive trajectory for India’s future.
Pulak Jain Co-founder, Chief Business Officer and Head Strategy, TransBnk: It looks like the budget is quite comprehensive, aiming to cater to various sectors and individuals alike. The mixed reactions suggest there are both positives and negatives depending on the perspective. For individuals, there seem to be some gains alongside certain setbacks. However, the overarching goal appears to be fostering growth for Indian businesses, which is crucial for the economy’s overall health. This focus reflects a strategic approach to ensure sustainable economic development.
From the Startup ecosystem perspective, Steps like abolishing angel tax will help eliminate a barrier for early-stage investments in startups, encouraging more angel investors to support innovative ventures.
Also, lowering corporate tax rates for foreign companies makes India a more attractive destination for foreign direct investment (FDI). This can lead to increased investments in various sectors such as manufacturing, services, infrastructure, etc. Higher investments can spur economic growth, create jobs, and improve overall business environment competitiveness.
Anthony Fernandes, Founder of Shaalaa.com: The announcement of government-funded loans up to Rs 10 lakh for higher education is promising, but clarity on the sanctioning criteria is crucial. With a significant Rs 2 lakh crore allocation over five years to boost employment and skill development, and Rs 1.48 lakh crores allocated this year for education and skilling, the budget focuses on empowering youth. Model skill loan schemes benefiting 25,000 students annually and the expansion of medical institutions in Bihar highlight commitments to education and healthcare. These steps are essential for nurturing a skilled workforce and promoting inclusive growth.”
Rahul Malodia Founder and CEO, Malodia Business Coaching: Finance Minister Nirmala Sitharaman announced the abolition of Angel Tax for all investors in the Union Budget 2024-2025. This aims to boost investment in startups and promote innovation nationwide. The budget also allocates Rs 2 lakh crore to empower youth and strengthen the economy. It includes plans for 1 crore internships over 5 years with monthly allowances and skill-enhancement aid. Additionally, financial support for higher education loans and interest subsidies on e-vouchers ensures education accessibility. Emphasizing skills, SMEs, and digital infrastructure, the budget aims to enhance growth and global competitiveness for India’s youth.
