Arun Antony, Founder - YEStack Venture Studio - "Just as founders need absolute clarity to execute, startup investors need absolute clarity on what happens to their capital throughout the startup journey. The Government of India's Budget 24-25 provides this much-needed clarity on startup investments, making it a highly welcome move.
- The removal of the Angel Tax is a strategic step towards positioning India as a global hub for innovation, increasing domestic capital formation, and enhancing the availability of early stage capital for startups.
- The government has finally standardized treatment of capital gains by applying a uniform long-term capital gains tax rate of 12.5% for resident and non-resident investors, as well as for listed and unlisted securities.
- Exciting to see the introduction of the Variable Capital Company (VCC) structure for AIFs in India at GIFT IFSC.
Thanking the Government of India for these welcome steps that would boost investments into the startup ecosystem, especially from investors who were previously reluctant due to a lack of clarity.Global and domestic funds, global LPs, resident Indians, and non-resident Indians can now treat startup investments in India as an asset class with absolute clarity when constructing their investment portfolios. This will undoubtedly create an environment for a strong inflow into startups or AIFs focusing on the same. We at YE STACK look forward to an exciting decade of building startups with our founders and capital allocators."
Smita Shetty Kapoor, CEO & Co-founder, Kelp said, "The latest Union Budget marks a transformative step forward, particularly for the HR sector and our mission at Kelp. The abolition of the angel tax and the consolidation of charity tax exemptions will simplify financial operations and promote innovation.
Moreover, the government's ambitious plans to invest ₹2 lakh crore in skilling and employment schemes over the next five years are both commendable and inspiring. With initiatives aimed at reaching 4.1 crore youth, including a comprehensive internship scheme for one crore individuals, we are witnessing a substantial commitment to developing a skilled and industry-ready workforce.
At Kelp, where our core focus is on creating safe, happy, inclusive and productive workplaces, these developments align perfectly with our vision. The new budget reflects a supportive environment for both businesses and employees, reinforcing our dedication to fostering workplaces where every individual can thrive and contribute meaningfully. We look forward to leveraging these opportunities to drive positive change and further our mission of building exceptional work environments."
Budget Reaction Quote on the BCD reduction for mobile phone and related part industry
~ By Ravi Agarwal, MD and Founder of Cellecor Gadgets Limited
India is on the cusp of becoming a world leader in the mobile phone industry, excelling not just in consumption but also in innovation and production. Reducing Basic Customs Duty (BCD) on mobile phones, mobile PCBA, and chargers to 15% marks a new era for our industry. This balanced approach fosters growth, ensures affordability, and will have a multifaceted impact, promoting India as a global leader in mobile phone production and consumption. This initiative aligns with the vision of a 'Vikshit Bharat,' emphasizing self-reliance and robust domestic production. By making manufacturing more cost-effective, we are not only driving economic growth but also empowering our workforce and setting the stage for India to lead globally in the mobile phone industry.
Moreover, the reduction of the TDS rate for e-commerce from 1% to 0.1% will enhance cash flow and streamline operations, supporting the sector's growth. With India's e-commerce market expected to hit $120 billion by 2026, and mobile commerce driving 70% of this growth, these changes are timely. The introduction of e-commerce export hubs will strengthen India's global trade position, offering infrastructure to boost exports.
At Cellecor Gadgets Limited, we are excited to leverage the recent budget initiatives to expand our reach, optimize operations, and enhance our technology. These measures not only reflect the government's commitment to advancing a dynamic digital economy but also align with our goals of growing our product portfolio and delivering superior value. We look forward to supporting the government's efforts in elevating the mobile phone industry and witnessing its transformative impact on the economy.
Over the past six years, the Indian mobile phone industry has achieved remarkable milestones, including a three-fold increase in domestic production and a nearly 100-fold jump in exports. This growth underscores the sector's maturity and crucial role in India's economy. By reducing the BCD, the government addresses high import duties, paving the way for enhanced competitiveness and innovation. This will lower production costs, enabling manufacturers to offer more affordable, feature-rich devices, which is vital in a market like India, where affordability drives consumer adoption. With over 750 million smartphone users and a projected market volume of $77.27 billion by 2027, the growth potential is immense.
The mobile phone industry has long faced challenges from high taxes and duties, hindering growth. The current reduction in BCD should mitigate these issues, allowing companies to invest more in R&D and bring cutting-edge technology to India. This reduction will also stimulate domestic manufacturing, creating job opportunities and skill development. Additionally, it will attract global companies to establish manufacturing units in India, reinforcing the country's position as a global manufacturing hub.
1. Mr. Viren Choudary, CEO of Readywire
"We welcome the Union Budget's special focus on MSMEs and startups. The initiatives to facilitate continued bank credit during stress periods and the increased Mudra loan limits are particularly commendable. The abolition of Angel Tax will undoubtedly bolster the startup ecosystem, encouraging more innovation and investment. These measures reflect the government's commitment to fostering growth and resilience in India's entrepreneurial landscape, and we are optimistic about the positive impact this will have on the sector."
2. Ayush Gupta , CEO of Swopstore
The Union Budget is a game-changer for Indian startups! Abolishing Angel Tax and reducing corporate tax for foreign companies from 40% to 35% will boost investment and innovation.
Simplifying taxes for foreign shipping companies will also open up new opportunities in maritime and tourism sectors. As a young entrepreneur, I'm thrilled to see the government's commitment to making India a startup hub.
These reforms can lead to a 20-25% growth in the startup sector, helping us scale faster, access global markets, and create more jobs. Kudos to the government for taking bold steps to propel India's startup revolution!
3. Pankaj Jha, Managing Director of MAXHUB
"The abolition of Angel Tax is a significant relief and a crucial step towards fostering a supportive ecosystem for innovation and entrepreneurship. Additionally, the reduced corporate tax rate for foreign companies will enhance India's appeal as a destination for international businesses and investors. This strategic move is anticipated to attract substantial global investment."
Mr. Rajiv Kaul – Executive Vice Chairman, Whole Time Director and CEO said, "In a seasonally weak quarter, we continue to deliver strong revenue growth and maintain a high-quality margin profile. Our Managed Services & Technology Solutions business has grown 30%+ and is on track to cross INR 1000 Cr revenue in FY25. Overall, we are reasonably confident of revenue growth being in the 15%-19% range, to achieve our guidance of INR 2,600-2700 Cr revenue for FY25."
"Dr. Jaskiran Arora, Dean- Education Quality, BML Munjal University, said, 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"
The Union Budget 2024's support for emerging technologies such as AI, blockchain, and IoT is evidence of the government's forward-thinking approach. This will undoubtedly accelerate India's journey towards becoming a global tech powerhouse. - Glenn Gonsalves, CEO of RedSwitches.
The 2024 budget's abolition of the angel tax is a strategic move that will invigorate India's startup sector. This policy shift will attract more angel investors, fostering innovation and growth. At RedSwitches, we applaud this decision and anticipate it will drive substantial advancements and opportunities within the startup community. - Glenn Gonsalves, CEO of RedSwitches.
By removing the angel tax in the 2024 budget, India has taken a monumental step towards supporting startups. This change will enhance investor confidence and catalyze a wave of new ventures and innovations. RedSwitches is excited about the future prospects this policy will unlock for the startup ecosystem in India. - Glenn Gonsalves, CEO of RedSwitches.
The removal of the angel tax is a game-changer for the Indian startup ecosystem. It signals the government's commitment to fostering innovation and supporting the growth of new businesses, making India an even more attractive destination for investment. - Glenn Gonsalves, CEO of RedSwitches.
Budget Takeaways by Sakchi Jain- CA and Financial Educator:
Overall Budget 2024 Takeaway: The recent budget announcement for 2024 introduces bold reforms and targeted initiatives to fuel growth across various sectors. The comprehensive review of the Income Tax Act over the next six months aims to simplify the tax landscape for everyone.
The budget focuses on key areas like the poor, women, youth, and farmers. For youth, five new schemes, including a comprehensive internship program in top companies and employment-linked incentives, promise to boost opportunities. Women-specific skilling programs aim to increase workforce participation.
The attention given to MSMEs and the manufacturing sector is commendable, with a credit guarantee scheme, term loans for machinery, and a technology support package. In the financial sector, raising the Mudra loan limit and providing financial support for higher education loans will benefit small business owners and students.
Sustainable agriculture is a priority, with initiatives like transforming agricultural research for productivity and climate resilience, and introducing one crore farmers to natural farming over the next two years.
The reduction of TDS rates on e-commerce transactions from 1% to 0.1% will ease compliance burdens for online merchants. The proposed removal of Angel Tax is a relief for startups and innovation, although changes in capital gains taxes may not be well-received by investors.
Additionally, the budget removes custom duty on cancer patient medicines and mobile phones, making these more affordable. Overall, this budget addresses nine critical areas: agriculture, employment, inclusive development, manufacturing and services, urban development, energy, infrastructure, innovation and R&D, and next-generation reforms.
"Angel Tax" has been a significant concern for startups in India, impacting those that rely heavily on external funding. Under Section 56(2)(viib) of the Income Tax Act, 1961, this tax treats investments received from external investors as "income from other sources" and taxes it at a rate of 30%. This has been particularly challenging for young startups, especially in their early stages when they're already grappling with operational expenses.
This tax has burdened many promising ventures. However, there's exciting news for all of us championing innovation and entrepreneurship. Finance Minister Nirmala Sitharaman has proposed to remove the Angel Tax, a move that marks a significant step in our journey towards becoming a global hub for innovation.
This decision aims to create a more supportive environment for startups and address the concerns raised by the investor community. I believe the abolition of the Angel Tax on all classes of investors is not just a tax reform, it's a strategic move to fuel the ambitions and growth of India's startups
Income Tax
The recent budget announcement is a bold move, especially with the comprehensive review of the Income Tax Act over the next six months, aiming to make it more lucid and concise. The changes in the standard deduction, increased from Rs 50,000 to Rs 75,000, and the revised tax slab, raising the 5% tax rate limit from Rs 5 lakh to Rs 7 lakh, are beneficial for salaried employees. However, the capital gains tax regime has been almost completely revamped with increased tax rates, which might not be received positively by investors. Despite the exemption limit being increased from Rs 1 lakh to Rs 1.25 lakhs, the higher tax rates on long-term and certain short-term capital gains could dampen investor sentiment.
Additionally, income from the buy-back of shares will now be chargeable as dividend in the hands of the recipient investor, with the cost treated as a capital loss, introducing a new dynamic for investment strategies. The increase in Securities Transaction Tax (STT) rates on options and futures could also deter frequent trading.
On a positive note, the reduction of the TDS rate on e-commerce operators from 1% to 0.1% and the proposal to remove the Angel Tax is a significant step towards fostering innovation and entrepreneurship, Moreover, the reduction of the corporate tax rate for foreign companies to 35% aims to make India a more attractive destination for foreign investment.
Lastly, the implementation of the "Vivad se Vishwas" scheme for resolving tax disputes and the reduction of customs duty on mobile phones, PCBs, and chargers to 15%, along with the exemption of customs duty on medicines, are commendable steps towards easing the tax burden and improving the business environment.
Devashish Sharma, CEO and founding member of Taggd- "This year's budget, with its significant emphasis on job creation and employability, is a powerful testament to India's strategic vision for the future. The new internship program, aiming to skill 10 million youth over five years, is a bold step towards bridging the education-employment gap. Additionally, incentives for EPFO contributions and employer reimbursement schemes underscore a strong commitment to job creation in the manufacturing sector. These measures and the Prime Minister's skilling initiatives are set to equip our workforce with the skills needed for a rapidly evolving job market. The budget's focus on women's participation and support for women-led businesses will drive both empowerment and inclusive economic growth. This budget is a robust blueprint for India's future, prioritizing employment, skill development, and inclusive growth. We eagerly anticipate both contributing to and benefiting from these initiatives."
Mr. 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 piple 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.
Kunal Jhunjhunwala, Founder, airpay -
"In the Union Budget 2024, the Finance Minister introduced a forward-thinking strategy designed to empower MSMEs and stimulate broader economic growth through a series of groundbreaking initiatives. This budget strongly emphasises bolstering technological infrastructure, introducing robust credit guarantee schemes, and facilitating collateral-free financing. These measures reflect a proactive commitment to fostering entrepreneurial spirit, advancing the principles of digital self-reliance under 'Atmanirbhar Bharat,' and propelling technological innovation across sectors. Start-ups, especially in fintech, are pivotal in driving the country's growth. The government's move to extend the date of incorporation for income tax benefits to start-ups and to increase the benefit of carrying forward losses for start-ups to 10 years is a visionary step. This will significantly strengthen the start-up ecosystem, underscoring the importance of their contribution to economic development and innovation.
These initiatives are commendable for their potential to create a conducive environment for economic expansion and job creation. By enhancing access to technology and financial support, the budget aims to amplify the capabilities of MSMEs, enabling them to thrive amidst evolving market dynamics. This strategic approach strengthens India's economic resilience and positions our nation as a global leader in fostering sustainable growth and innovation. Moreover, the credit guarantee scheme from the MSME ministry, where the government guarantees part of the loans for small and micro enterprises, is a significant step towards easing credit access and promoting financial inclusion. This benefits small businesses that need capital to grow, further solidifying the foundation for a robust and dynamic economy and demonstrating the government's commitment to financial inclusion."
Quote by - Sammeer Pakvasa, Managing director and CEO- Eleganz Interiors
The 2024 Union Budget brings promising developments that align with our commitment to excellence at Eleganz Interiors. The allocation of Rs 50,000 crore towards infrastructure development is particularly exciting for us, as it will significantly enhance opportunities for design and fit-out projects. Initiated in 1988, Eleganz Interiors has consistently aimed to set the benchmark in the commercial interior design and fit-outs. With Sammeer Pakvasa's leadership since 1999, we have been at the forefront of transforming spaces in India and Singapore. The increased focus on infrastructure and urban development will not only bolster our industry but also enable us to leverage new opportunities for creativity and innovation. We look forward to contributing to and benefiting from the heightened investment in our sector, which will undoubtedly support our mission of delivering unparalleled design solutions and exceptional value to our clients.
Khadim Batti, Co-Founder & CEO, Whatfix -“The Union Budget 2024 is a significant step forward for the tech and startup ecosystem. Its pro-development stance directly addresses key industry expectations. We applaud the government's progressive vision to foster a more dynamic and innovative startup landscape across the nation.
The abolition of the Angel Tax is a critical move, providing much-needed relief to startups during the funding winter. Simplifying FDI and overseas investment rules, along with promoting the Indian rupee for global transactions, will further bolster investor confidence.
We are thrilled to see the startup ecosystem’s expectations realized with the revised ESOP taxation structure. This change will incentivize talent retention and significantly boost employee morale. Streamlined regulations, transfer pricing, and employment procedures will create a more conducive environment for businesses to thrive.
We are particularly impressed by the government’s strategic focus on human capital development. The proposed skilling of 20 lakh youth and the upgrade of 1,000 industry training institutes are pivotal steps towards creating a future-ready workforce. By aligning education with emerging technologies and industry demands, the budget positions India to become a global talent hub. This strategic investment will undoubtedly catalyze job creation, drive economic growth, and strengthen India's position in the global value chain.
Overall, this budget reinforces our belief in India's potential to become a $7 trillion economy by 2030. The Indian SaaS industry is well-positioned to flourish under these supportive policies. We are excited to contribute to India's digital transformation and global leadership.”
Union Budget 2024-25: by SBI Capital Markets (SBICAPS).
Executive Summary
After several Budgets focused primarily on infrastructure capex, the Union Budget for FY25 broadened its scope. It aims to boost employment in manufacturing and services sectors, enhance rural consumption, improve MSME financial penetration, and promote the new direct tax regime. The Budget also addresses financial stability by revising the capital gains regime. Supported by strong tax revenues from robust economic growth, the Budget does not compromise on fiscal consolidation. The fiscal deficit target for FY25 stands reduced to 4.9% of GDP (down from 5.1% in the Interim Budget), with net borrowings slightly decreased. The government's intent is to put India on a smooth, stable, and equitable path towards becoming a developed nation by 2047.
Burgeoning receipts buoyed by momentous economic growth as bumper dividends provide a kicker
Tax buoyancy, driven by an expanding tax base, formalisation of the economy, improved compliance, and strong economic growth, is expected to increase gross tax revenue by 10% [FY25BE vs. FY24P], primarily owing to higher income tax collections. Estimates for corporation tax and GST have been marginally reduced for FY25BE vs. Interim. Additionally, a fuel excise duty cut in Mar'24 has kept growth in this component minimal along with customs duty due to rationalisation. Overall, net tax revenue is budgeted slightly lower than in the interim budget, growing slower on-year compared to gross tax revenue, owing to higher transfer to States. We see limited upside to these revenue estimates.
Non-tax revenues estimates have been taken sharply upwards to Rs. 5.45 trn in FY25BE vs. Rs. 4.0 trn in FY25BE (Interim), buttressed on dividends and profits nearly doubling to Rs. 2.9 trn in FY25BE vs. Interim. This meant that total receipts (ex. debt) are set to see an increase to Rs. 31.3 trn
Expenditures rationalized to broad-base growth and create skilled human capital base, even as capex concentration continues
Total expenditure for FY25BE is projected at Rs. 48.2 trn, an 8.5% y/y increase. Capital expenditure remains unchanged from the interim budget at Rs. 11.1 trn, significantly higher than Rs. 9.48 trn in FY24P, while revenue expenditure is increased to Rs. 37.1 trn. The growth in capex continues to outpace that in revenue expenditure, reflecting a strategic re-allocation aimed at maintaining high-quality expenditure. Notably, within capex, Ministry-wise allocations for Roads, Railways, Defence, and Communications remain unchanged from the Interim Budget.
Within revenue expenditure, the focus remains on building long-term assets. Higher allocation to PMAY-U and significant increase of total transfer to States shows resource allocation priority. Expenditure on agriculture and allied activities is increased to Rs. 1.5 trn, up 3.4% from FY24BE (Interim), with an emphasis on using technology in the sector. Notably, the government has decreased subsidies allocation, and no additional funds were allocated for PM-KISAN. The allocation for MGNREGA remains unchanged but could see an increase based on trends observed in YTDFY25.
Spending on education is projected to increase by approximately 15% [FY25BE vs. FY24RE], emphasizing skill-building for employment-generating sectors. Measures were announced to ease credit flow to MSMEs, especially during times of stress. Additionally, monetary incentives for first-time employees in low-paying jobs and their employers were introduced. The fair allocation for healthcare remains largely unchanged, highlighting the commitment to creating durable human capital to drive growth.
Equitable development goal and strategic self-reliance ushers in greater attention to select regions
Several initiatives were announced under the Purvodaya scheme for the East. Bihar received multiple benefits, including road projects worth Rs. 260 bn, a 2,400 MW power plant costing Rs. 214 bn, and new airports, medical colleges, and sports infrastructure. Andhra Pradesh will receive Rs. 150 bn through MLIs in FY25 for capital development, completion of industrial corridors, and the Polavaram Irrigation Project. Additionally, offshore mineral mining will be promoted with the launch of auctions for these blocks along with setting up Critical Mineral Mission.
Revised indirect taxation regime could have implications for the external sector
Customs duties on precious metals like gold and silver have been reduced to 6%. Additionally, the BCD on mobiles, certain electronics inputs, and some base metals has been cut. The list of duty-exempt capital goods for solar cell and module manufacturing will be expanded, and customs duties on 25 critical minerals have been fully removed. While the impact on domestic value addition would vary in different sectors, these changes could increase imports and widen the trade deficit.
Major rejig in tax regime in the interest of simplification and revenue mobilisation
LTCG on financial and non-financial assets will now be taxed at 12.5% (up from 10%), including listed equity shares, equity-oriented funds, and business trusts. LTCG on property sales and gold is reduced from 20% to 12.5%, but the indexation benefit is removed. STCG on certain financial assets are increased from 15% to 20%. Income from share buybacks will be taxed as dividends for investors. The securities transaction tax (STT) on options sales is increased to 0.1% (from 0.0625%) and on futures to 0.02% (from 0.0125%). These measures aim to rationalise and simply the taxation besides higher revenue mobilisation on back of buoyant capital markets.
On direct taxes, the new tax regime for personal taxpayers is further incentivized by increasing the standard deduction and adjusting tax slabs. The angel tax is abolished along with lower LTCG on unlisted shares, benefiting startups and private market activity. Corporate tax rates for foreign companies are reduced, and the equalization levy on e-commerce firms is removed.
Roadmap of fiscal consolidation is set in stone ensuring bond markets rejoice
The government has reduced its fiscal deficit target for FY25BE to 4.9% of GDP, aligning with the goal of reaching 4.5% by FY26. As a result, gross Union borrowing is cut by Rs. 120 bn [vs. Interim] to Rs. 14.01 trn. Net borrowing for FY25BE is set at Rs. 11.63 trn [Interim: Rs. 11.75 trn], representing a slight decline. The budget effectively balances higher revenue distribution between increased expenditure and deficit reduction. Consequently, we expect 10-year yields to remain range-bound in the near term.
Overall, the Budget maintains high-quality expenditure while rationalizing and reallocating funds to prioritize capacity creation in physical and human assets, employment generation, and equitable growth. Leveraging buoyant revenue receipts and strong capital markets, the government simplified and rationalized the tax structure to enhance financial stability. This approach enabled a further reduction in the fiscal deficit target for FY25BE to 4.9%, ensuring India remains on a clear path to fiscal consolidation
Neha Patil - Founder, Progen Ventures & Angel Investor
Angel tax has finally been abolished by the Hon. FM in this year's budget. This will help in the expansion of Angel investments in the country and improve the funding sentiment in a strong manner. In addition, the launch of a 1000cr space tech fund and support for startups in the vegetable supply chain will enable innovation in these sectors and bring good startups from these sectors to the forefront. Overall, the ecosystem is headed towards a positive trajectory.
Mr. Amit Sehgal, Co-founder and CEO of PharynxAI commented on the recent Union budget 2024 "Union Budget 2024 announcements are a big thumbs up for the Indian startup ecosystem. The removal of the Angel Tax is a game-changer for early stage funding and will make it easier for us to get the critical financing we need to scale. It's a step that will certainly help us in driving more innovation and creating more jobs in India. The drive to streamline the GST tax structure is also a beneficial initiative. Simplifying regulations and providing more assurance to foreign direct investment (FDI) will help draw in more inflows from abroad, crucial to employment and GDP growth as the country strives to become the global leader in AI. Increased Mudra loans to Rs 20 lakh for successful entrepreneurs within the TARUN category is another commendable move. It will foster improved capital accessibility for entrepreneurs who have exhibited their capacity to meet their financial obligations. In a nutshell, this budget has made great efforts to boost innovation, entrepreneurship, and economic growth in India.
He further added "Although, all the proposals are pointing in the right direction, a sector specific push would have created a corridor towards the future growth. More emphasis towards Technology and AI driven sectors could bring more FDI which in turn would boost our economy by creating more jobs and will improve our foreign reserves.
Overall, the budget exhibits significant prospects of fostering innovation, entrepreneurship and economic prosperity and should act as a catalyst in achieving India's dream of becoming global AI champion"
S. Sunil Kumar, Country President of Henkel India for your kind consideration.
“The Union Budget offers a strategic roadmap to consolidate India's economic gains and propel it towards new heights. It has identified several key growth catalysts such as Manufacturing & Services, Employment & Skilling, Infrastructure Development, Innovation, and Research. Collectively, these will advance the nation towards a ‘Vikshit Bharat’, reflecting a commitment to sustainable and inclusive growth through targeted investments and strategic development”.
With a significant allocation of Rs 11.11 lakh crore towards capital expenditure for FY 2024-25, the government is paving the way for robust infrastructure development and sustainable economic growth in India. Over the next five years, the focus on large-scale projects has the potential to transform the economic landscape, reduce logistical costs, and improve the efficiency of transportation networks. It is also promising to see the government taking measures to boost job creation in the manufacturing sector, a key contributor to the country’s GDP.
The government has earmarked over Rs 3 lakh crore for schemes benefiting women and girls and boosting their participation in the workforce. It is a welcome development that will unlock productivity, promote social equity, and enhance India Inc's journey towards a more diverse and inclusive workplace. By leveraging the full potential of all talent, including women, industries can build a more robust and capable workforce.
Overall, the Union Budget 2024 outlines pathways to enhance India's long-term economic resilience and competitiveness, and to position it as a global economic powerhouse.
Mr. AK Tyagi, Founder, Chairman & Managing Director of Nuberg Engineering Ltd.-The Budget 2024 includes bold and progressive measures that deserve praise. In line with the dream of a Viksit Bharat, bringing in a policy paper on energy transition routes is a big move to balance growth environmental protection, and jobs. This complete approach will be key as we deal with the tricky scene of changing our energy use.
Auctioning offshore mineral blocks and creating a policy for electricity storage shows a practical approach to boost our energy infrastructure. These steps, along with efforts to add more renewable energy, will spark new ideas and make the sector more productive.
Working together on R&D for small modular reactors and looking into new tech is important. By putting money into Bharat Small Reactors and modular reactors, the government isn't just pushing nuclear tech forward, it's also opening doors for businesses to get involved. The success of PM Surya Ghar Muft Bijli Yojana and ongoing help for PM Awas Yojana Urban 2.0 show a real dedication to improving lives through better energy access and housing. The planned pumped storage policy will tackle the on-and-off nature of renewables, which you need for a power grid that won't let you down.
Also, NTPC's teamwork with BHEL to build an 800 MW plant using AUSC technology marks a big step forward in advanced power generation. Solar power stays a key part of our renewable energy goals, with a clear plan to reach 500 GW by 2030. This shows our dedication to cutting down on fossil fuel use and fighting climate change.
While the measures in Budget 2024 will advance renewable energy initiatives, achieve energy independence, mitigate environmental impacts, and create a resilient energy system for future generations, we wish more had been done to accelerate the development of Green Hydrogen. A greater emphasis on this promising technology would significantly bolster our sustainability efforts and reinforce our commitment to a greener future. This technology holds great promise, and putting more effort into developing it could really strengthen our sustainability goals and show our commitment to a greener future. Our goal is to build on the Budget 2024's progress by advancing renewable energy and boosting Green Hydrogen development. This will help us achieve a more sustainable and greener future.
Mr. Amit Porwal, Director at Aranyakaa Farms.
"The Urban Housing 2.0 initiative of PMAY is highly commendable. It is a clear indication that the government has a strong concern for urban housing issues, based on the allocation of ₹10 lakh crore with ₹2 lakh crore central assistance and subsidized rates. This is a big step towards solving the housing crisis for lower class in urban areas across the country.
Also, setting up digital agriculture infrastructure, annual digital crop surveys and mapping of farmers to their land parcels are progressive steps towards this direction. They will not only enable better credit risk assessment but also increase formal credit penetration in agriculture. A more robust and inclusive economic environment will be created as a result of these measures that will benefit urban as well as rural communities."
Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities-
"The rupee traded flat near 83.71. The dollar index remained stable around 104.15$, while crude prices traded slightly positive at 77.48$. The Union Budget provided support to the agriculture sector and railways, with a decent allocation to defense already made in February. This focus on domestic spending has helped avert a significant fall in the rupee. However, the cut in import duty on gold could negatively impact the government's revenue, as India is a net importer of gold. The rupee's sideways trend is expected to continue in the near term, with a range between 83.55 and 83.80."
Mr. Amit Saneja, CEO of Educate Online, said, "We welcome Budget 2024 and its strong focus on skill development for students. We are aligning our efforts to empower learners through quality education. The government's push for higher education and employment is a significant step forward. The initiatives, including support for skill development and educational loans, are clearly in the best interest of students. As an organization that bridges international education with local affordability, we are well-positioned to support these advancements. Our partnerships with global universities and our comprehensive learning platform are ready to contribute to India's educational evolution. We are committed to helping students benefit from these positive changes in the educational landscape."
Mr. Ashwin Sheth, Chairman and Managing Director, Ashwin Sheth Group- The Union Budget 2024 marks a momentous breakthrough for urban development and housing reassuring a promising future for the real estate sector. The comprehensive focus on efficient urban planning, including transit-oriented development and enhanced infrastructure for water supply, sewage, and waste management across 100 large cities, will elevate the quality of urban living. The substantial Rs. 26,000 crore investment in road connectivity projects is set to create a new growth corridor, significantly boosting real estate demand in emerging regions. We applaud the government's progressive initiative to urge states to moderate stamp duty rates and offer further reductions for properties purchased by women. Coupled with the proposed interest subsidy scheme for urban housing loans, this will revolutionize homeownership by making it more accessible. Furthermore, the commitment to developing a transparent and efficient rental housing market is a commendable stride that will benefit both property owners and tenants. As a leading real estate developer, we recognize these measures as transformative catalysts. The Indian real estate sector, poised to reach $1.04 trillion by 2029 and contribute 13 percent to the GDP by 2025, stands to benefit immensely from this holistic and forward-thinking approach to urban development and housing."
Prady, CEO and Managing Partner, NP Digital India said, "The Union Budget 2024-25 marks a significant step forward in shaping India's economic future. By prioritizing education, employment, and skilling, the budget lays a strong foundation for nurturing talent and fostering innovation across sectors, including digital marketing. The new mechanism to ensure continued bank credit to MSMEs during periods of stress is a vital support system that will help sustain and grow small businesses. The reduction in corporate tax rates from 40% to 35% will undoubtedly boost business confidence. Moreover, the relief provided by the revised tax slabs and increased standard deduction in the new tax regime will benefit individual taxpayers and enhance their purchasing power. This budget reflects a balanced approach to driving economic progress and addressing key areas of concern."
Dhawal Jain, Co Founder of Mave Health for the Healthcare, Technology and Startups sector pasted below:
"Enhanced Public-Private Partnerships and Support for Healthtech Innovations"
Mave Health appreciates the government's forward-thinking Union Budget 2024-25, especially the collaboration with the private sector to develop small and modular nuclear reactors. This innovative approach is a great example for other industries, including healthtech.
The Rs 90,658.63 crore allocation to the Union Health Ministry is promising, but more initiatives are needed to enhance mental health services and infrastructure. The budget's focus on boosting domestic investments is a positive step for the Indian startup ecosystem. However, addressing corporate tax and redomicile taxation is crucial for creating a startup-friendly environment.
The rise of startups in the BFSI sector, driven by innovations like UPI, highlights the potential of tech-driven solutions. We hope for continued government support for healthtech innovations, similar to the focus on new technologies in the nuclear energy sector.
We look forward to collaborative efforts that not only enhance the healthtech landscape but also ensure that startups like Mave Health can contribute meaningfully to the nation's growth and well-being."
Chemical and Agriculture- On Behalf of Madhur Singhal, Managing Partner, Chemical and Agriculture, Praxis Global Alliance
-The focus on developing high-yielding and climate-resilient crop varieties is a monumental step for our agricultural sector. The introduction of 109 new varieties of field and horticultural crops will revolutionize productivity and sustainability for our farmers, making us more resilient in the face of climate challenges. The government's commitment to enhancing natural farming practices by supporting 1 crore farmers is a forward-thinking approach that aligns with our industry's goals for sustainable agriculture."
-"The establishment of 10,000 bio-input resource centers will empower our farmers with the tools and resources needed to transition to more organic and sustainable farming methods. These initiatives underscore the government's dedication to ensuring food security and self-reliance in oilseed production, a crucial aspect for India's agricultural landscape."
1. "The 2024-25 budget's robust allocation of ₹20 lakh crore for agricultural credit reaffirms the government's dedication to strengthening the agricultural sector. This investment is set to provide farmers with the financial support needed to enhance productivity and ensure food security."
2. "The budget's focus on promoting natural farming techniques and sustainable practices represents a forward-looking approach to agriculture. By integrating traditional wisdom with modern innovation, the government is paving the way for a greener and more resilient agricultural sector."
3. "With increased funding for agricultural infrastructure and rural development, the budget addresses critical needs in the agricultural sector. This support will not only boost productivity but also improve the overall quality of life for farmers and rural communities."
4. "The emphasis on expanding irrigation facilities and improving crop insurance schemes underscores the government's commitment to mitigating risks and enhancing agricultural resilience in the face of climate change and market fluctuations."
5. "The budget's provisions for agricultural technology and research signify a significant push towards modernizing farming practices. This investment in innovation is expected to drive efficiency and sustainability, positioning India's agriculture for long-term growth."
Financial Services for Madhur Singhal, Managing Partner, Financial Services, Praxis Global Alliance
> "The development of a comprehensive financial sector vision and strategy document is a significant step towards preparing the sector for future growth. This initiative will undoubtedly foster a more robust and resilient financial ecosystem capable of meeting the economy's demands."
> The introduction of the NPS-Vatsalya plan provides a unique opportunity for parents and guardians to invest in their children's future, ensuring financial security and encouraging long-term savings habits."
Private Capital For Madhur Singhal, Managing Partner, Private Capital, Praxis Global Alliance
The simplification of Foreign Direct Investment (FDI) rules is a welcome move that will undoubtedly attract more overseas investors, providing a much-needed boost to our private capital markets. This will open new avenues for growth and innovation, positioning India as a more attractive destination for global investors."
> "The proposed Variable Capital Company structure offers an efficient and flexible mode for financing, which is a game-changer for industries like aviation and maritime. This will enhance our competitiveness and ensure we remain at the forefront of global private equity opportunities."
"We are particularly encouraged by the 2024-25 budget's announcement of a ₹100 crore credit guarantee scheme for manufacturing MSMEs. This initiative will significantly enhance access to finance for small and medium-sized enterprises in the manufacturing sector, enabling them to scale operations and innovate. At Praxis Global Alliance, we believe this support is crucial for driving growth and competitiveness within the sector, and we look forward to leveraging these opportunities to further strengthen our contribution to the industry."
Healthcare and Lifesciences for Aryaman Tandon, Managing Partner, Healthcare, Praxis Global Alliance
> "The full exemption of three more cancer medicines from custom duties is a commendable move that will significantly reduce the cost burden on patients and enhance access to essential treatments. This demonstrates the government's commitment to making healthcare more affordable and accessible."**
> "The budget's focus on affordable medicines and support for the domestic pharmaceutical industry will foster innovation and competitiveness, driving growth in the healthcare sector while ensuring the well-being of our citizens."
"The 2024-25 budget's focus on the healthcare sector, with an allocation of ₹85,000 crore and increased support for pharmaceutical research, is a significant boost for the industry. As a leading company in the healthcare space, we are particularly encouraged by the government's commitment to enhancing public health infrastructure and supporting innovation in pharmaceuticals. This budget paves the way for collaborative efforts to advance healthcare delivery, expand access to essential medicines, and drive breakthroughs in treatment."
Tourism for Madhur Singhal, Managing Partner, Consumer and Internet , Praxis Global Alliance
The 2024-25 budget's strategic investments in tourism infrastructure and promotion reflect a strong commitment to revitalizing India's tourism sector. By enhancing facilities and supporting sustainable tourism initiatives, the government is poised to attract global visitors and boost economic growth, creating vibrant opportunities for local communities and showcasing India's diverse cultural heritage.
We are excited about the budget's initiative to promote Nalanda in Bihar and Odisha as premier tourism destinations. This strategic focus will not only highlight the rich historical and cultural heritage of these regions but also drive sustainable economic growth through tourism. By investing in the development and promotion of these iconic sites, we are paving the way for enhanced global recognition and increased visitor engagement, benefiting local communities and preserving our national heritage.
"We welcome the 2024-25 budget's ambitious allocation of ₹70,000 crore for infrastructure development, which is a significant boost for our sector. The increased focus on expanding road and rail networks, along with the introduction of tax incentives for infrastructure projects, aligns perfectly with our company's strategic goals. This investment not only promises to enhance connectivity and operational efficiency but also provides a solid foundation for long-term growth and innovation in the industry. We are excited about the opportunities this budget presents and are committed to leveraging these developments to drive sustainable progress and deliver exceptional value to our stakeholders."
Technology for Aryaman Tandon, Managing Partner, Technology at Praxis Global Alliance
> "The government's emphasis on digital public infrastructure is a visionary step towards integrating technology into the backbone of our economy. By implementing digital crop surveys and creating farmer and land registries, we are setting the stage for a digital revolution in agriculture that will improve efficiency and transparency."
> "The advancement in digitalization across various sectors, from healthcare to education, will bridge the gap between urban and rural areas, providing equal opportunities and access to resources for all citizens."
Artificial Intelligence (AI)
1. "The 2024-25 budget's substantial investment in artificial intelligence marks a pivotal moment for India's technological landscape. By focusing on AI research and development, the government is setting the stage for India to emerge as a global leader in next-generation technologies.
Mobility for Aryaman Tandon, Managing Partner, Mobility, Energy, and Transportation, Praxis Global Alliance
> "The reduction of customs duty on key components like mobile phones and solar panels is a strategic move that will boost domestic manufacturing and drive the adoption of renewable energy. This aligns perfectly with our industry's goals of sustainability and technological advancement."
> "The government's focus on energy transition and strategic sector support will propel India towards a greener future, ensuring our energy security while fostering innovation in mobility and transportation."
-The 2024-25 budget's focus on advancing solar and thermal power reflects a significant leap forward for the energy sector. These measures not only bolster our commitment to sustainable energy but also pave the way for innovative advancements and increased efficiency. We are excited about the opportunities this budget creates for driving clean energy initiatives and contributing to India's energy future
Consumer for Madhur Singhal, Managing Partner, Consumer and Internet, Praxis Global Alliance
> "Promoting Farmer-Producer Organizations, cooperatives, and start-ups for vegetable supply chains is a crucial step towards modernizing our agricultural sector. This initiative will streamline the collection, storage, and marketing processes, benefiting both producers and consumers."
> *The emphasis on digital infrastructure will enhance the consumer experience across various sectors, from e-commerce to financial services, making transactions more efficient and accessible to a broader audience."
Next Gen Industrials (Automotive, Infrastructure, Engineering and Construction, Textiles, Discrete Manufacturing, Packaging, Manufacturing Services, Advanced Manufacturing)
> "The focus on next-generation reforms and digitalization in the manufacturing sector will propel India to the forefront of global innovation. By prioritizing advanced manufacturing techniques, we are ensuring that our industries remain competitive and future-ready."
> "The proposed land-related reforms and the integration of GIS mapping and IT-based systems for property management will revolutionize the infrastructure and construction sectors, leading to more efficient urban planning and development."
The emphasis on infrastructure development and technological advancement in manufacturing showcases India's commitment to becoming a global leader in next-generation industries. "With increased investments in infrastructure, automotive, and advanced manufacturing, the budget signals a new era of industrial growth and innovation in India. "The government's focus on enhancing industrial capabilities through technology and innovation is set to drive economic growth, creating new opportunities across sectors.
Metals and Mining for Madhur Singhal, Managing Partner, NextGen Industrials, Praxis Global Alliance
"The 2024-25 budget's substantial allocation of ₹70,000 crore for infrastructure development is a game-changer for the mining and construction sectors. This investment will drive growth and innovation, enabling us to undertake significant projects and enhance connectivity across the country. The focus on modernizing railways and expanding road networks will not only streamline operations but also open new avenues for the mining sector, supporting our efforts to meet global demands more efficiently. With these strategic investments, we are optimistic about the future, as they provide a strong foundation for sustainable development and economic progress in our industries.
Education for Madhur Singhal, Managing Partner, Consumer and Internet at Praxis Global Alliance
"We are pleased to see the Union Budget 2024-25 prioritize significant investments in education, including the allocation of ₹2.5 lakh crore for the sector. This substantial funding is expected to drive transformative improvements in educational infrastructure, teacher training, and student resources. Our company, [Your Company Name], views these measures as pivotal for enhancing educational outcomes and equipping students with the skills needed for the future. We look forward to collaborating with educational institutions to leverage these opportunities and contribute to India's growing talent pool."
For Madhur Singhal, Managing Partner, Consumer and Internet at Praxis Global Alliance
Real Estate
"The 2024-25 budget's focus on enhancing affordable housing with an allocation of ₹70,000 crore for infrastructure development is a significant boost for the real estate sector. This funding will not only accelerate the development of affordable housing projects but also stimulate demand across the real estate market. Our company is excited about the potential opportunities this brings and is committed to leveraging these investments to drive innovation and growth in the sector."
Startup
"With the introduction of new tax incentives and the extension of the 'Startup India' scheme, the 2024-25 budget is a game-changer for entrepreneurs. The enhanced funding for innovation and technology incubators will provide crucial support for startups, fostering a thriving ecosystem. Our company is poised to take full advantage of these initiatives, aiming to accelerate our growth and contribute to the vibrant startup landscape in India."
Construction & Interior Design
"The budget's allocation of ₹70,000 crore towards infrastructure development and the focus on modernizing construction practices are highly encouraging for the construction and interior design sectors. These investments are set to enhance project efficiencies and drive the adoption of advanced technologies. Our company is enthusiastic about these developments and is committed to aligning our strategies with the government's vision for sustainable and innovative construction practices."
We warmly welcome the Union Budget's recent announcement, it marks a transformative moment for the entire MSME (India's Micro, Small, and Medium Enterprises) sector. The government's focus on the three-year expansion of the Small Industries Development Bank of India's (SIDBI) branch network will provide some crucial resources and funding opportunities for beauty brands across the country. Additionally, the introduction of a new credit guarantee scheme offering term loans up to ₹100 crore without collateral is a game-changer for MSMEs investing in new machinery and equipment. Lastly, we are extremely enthusiastic about the new e-commerce export hub being established through a public-private partnership model. This will open up some fantastic opportunities for beauty brands to enter international markets and tackle global trade challenges. Together, these measures will create a vibrant environment for both emerging and established beauty brands, fueling growth and advancing India's economy."_Mr. Mihir Jain, Sales and Marketing Director, Insight Cosmetics
Abhishek Sinha, Co-Founder, HealSpan-A highly forward-looking Union Budget 2024 emphasizes employment generation, urban and rural sanitation, and infrastructure development. The manufacturing sector, particularly through SMB players, has received a significant boost from this budget. The revised mining policy on rare earth metals will have a dual impact on the renewable energy sector and electronics manufacturing in the country. We extend our gratitude to the Finance Minister for further simplifying income tax and abolishing the Angel Tax.
Tanmay Kumar, Chief Financial Officer, Shiprocket
"We commend our government's strategic initiatives aimed at fortifying India's manufacturing & services sector with a special focus on MSMEs contributing to 30% of the nation's GDP. The emphasis on optimising financing opportunities will give the much needed boost to the MSME sector enhancing their potential to contribute to the growing economy even further.
The budget outlines the facilitation of term loans to MSMEs through the introduction of the credit guarantee scheme and the self-financing guarantee fund to provide to each MSME a cover of up to ₹100 crore. This proves the government's commitment towards enabling MSMEs with global competitiveness and Aatmanirbharta.
The recognition of the impact of technology on the sector through the dedicated package announced to finance tech support to MSMEs, resonates profoundly with Shiprocket's mission of empowering MSMEs with technology. Furthermore, the setting up of eCommerce hubs in PPP mode will bolster the trade and export potential of Indian enterprises especially D2C brands. This will inch us closer to our aim of becoming a global manufacturing hub by 2030.
We are delighted to witness the growing focus of the government on sustainability through the facilitation of energy audits of MSME in 60 clusters and the dedicated financial support to help the clusters to shift to cleaner energy sources.
With over 11 lakh crore capital expenditure allocated on infrastructure, and a special ₹2.66 lakh crore allocated for rural development, including rural infrastructure will prove to be a positive development for the logistics sector. The development of Industrial Corridors will boost connectivity even further, strengthening reach in every nook and corner of Bharat.
Our Hon'ble FMs steadfast focus on GST for reducing compliance burden and logistics costs for trade and industry and enhancing revenues is a clear testament to the government's unwavering support to the growth of the trade & commerce sector.
At Shiprocket, we are deeply enthusiastic to contribute to the government's vision of 2047 and wholeheartedly support MSMEs in realising their full potential on the global eCommerce landscape."
Utkarsh Singh, Co-Founder & CEO of BatX Energies.
"BatX Energies applauds the recent budget announcement by the Indian government, which marks a significant stride towards a greener future. The reduction of Basic Customs Duty (BCD) and exemption of 25 essential minerals from custom charges is set to lower production costs for battery manufacturing and recycling, enhancing the affordability and accessibility of electric vehicles (EVs) in India. The strategic move will significantly impact India's EV market by lowering production costs, enhancing competitiveness, supporting domestic manufacturing, encouraging innovation, improving supply chain resilience, and promoting environmental sustainability. The budget aims to support the ambitious goal of achieving 30% electrification of the vehicle fleet by 2030, bolstered by initiatives like the Production Linked Incentive (PLI) scheme for urban mining in future, expected to expand recycling capacity to process 295,000 metric tons of dead batteries annually, generating significant employment and forex savings estimated at INR 31,835 crore by 2030.
These measures collectively position India not only as a leader in the global transition to sustainable and green mobility but also as a visionary pioneer shaping the future of clean energy and environmental stewardship. With this forward-thinking approach, India is poised to redefine the global landscape of sustainable development and green innovation. "
Ashok Chhajer, Chairman and MD of Arihant Superstructures, "The latest budget represents a significant change for the real estate sector, with a focus on affordable housing and improved accessibility. Key measures, such as increased provisions for homeownership and reduced stamp duties for women, are expected to have a substantial impact. These initiatives aim to address the housing needs of a wider demographic and create a more supportive environment for real estate development. The emphasis on affordable housing and reduced barriers for homebuyers is anticipated to stimulate the market and align with broader objectives of inclusive growth and increased homeownership."
Pavan Kumar, Founder and CEO, White Lotus Group, "The government's initiative to encourage states to reduce stamp duty, particularly for women, is a commendable step towards increasing home ownership among women. This move, combined with the simplification of FDI rules, is poised to significantly boost foreign direct investment into the country. With better access to capital, developers can price houses more competitively, making home ownership more affordable. These measures collectively mark a significant advancement in the housing sector, promoting economic growth and providing more opportunities for individuals and families to own their own sanctuaries."
Mayank Ruia, Founder and CEO of MAIA Estates, "The Union Budget 2024 introduces key measures to boost the real estate sector, including significant investments in urban infrastructure and housing. The budget's focus on green development and reduced stamp duties for women will promote sustainable projects and increase female home ownership. Additionally, the decision to lower the tax rate on long-term assets, including real estate properties such as land and buildings, from 20% to 12.5% is a commendable step forward, notwithstanding the withdrawal of indexation benefit. We are optimistic that these measures will drive growth and innovation in the real estate sector."