"The recent budget announcements mark a significant stride for the manufacturing sector, especially for MSMEs. The focus on facilitating term loans for machinery purchases and financing technology support for MSMEs is commendable, as it will enhance productivity and competitiveness, enabling smaller enterprises to scale up their operations and contribute more effectively to the economy.
Employment and skill building are crucial, and the incentives for job creation in manufacturing, linked to EPFO contributions for employers hiring 30 lakh youth, are strategic. The provision of rental housing for industrial workers through PPP mode addresses a vital need for affordable living arrangements.
The emphasis on increasing women's workforce participation is particularly noteworthy. Establishing hostels and women-specific skilling programs will help bridge the gender gap and provide women with the necessary resources and opportunities to thrive in the industrial sector.
Lastly, the focus on nine priorities, from employment and skilling to next-gen reforms, as well as the Critical Minerals Mission reflect a holistic approach to generating ample opportunities.
Overall, these budget measures align with Taural India's vision of fostering growth, innovation, and inclusivity in the manufacturing sector."
----- Bharat Gite, MD and CEO of Taural India.
Ms Nehal Mota, Co-Founder Finnovate
The full budget presented by Nirmala Sitharaman on July 23rd had some important implications for financial and investment planning. Broadly, there are 3 ways in which this budget could impact financial planning.
Firstly, the budget raised income tax slabs under the new tax regime and made income up to Rs3 lakhs fully tax-free. This tweak is expected to save Rs17,500 in tax for salaried persons. Combined with the raising of standard deduction limit from Rs50,000 to Rs75,000, it will give more investable savings for salaried persons.
Secondly, the increase in STT on derivatives was always coming after warnings from the SEBI chairperson. The STT on sale of options was raised 16-fold from 0.0625% to 0.10%. At the same time, the STT on sale of futures was hiked from 0.0125% to 0.02%. These two moves are likely to curb retail speculation in F&O and push them into serious financial planning.
The most important was the capital gains tweak. LTCG was raised from 10% to 12.5% neutralized by exemption limit hiked from Rs1 lakh to Rs1.25 lakh. In addition, STCG tax was raised from 15% to 20%. This is likely to dilute the TINA (there is no alternative) value of equity investing and push people into more rational asset allocation across equity and debt. That is the big contribution from this budget for financial planning.
One interesting feature was the simplification of capital gains on real estate. While LTCG tax on real estate was cut from 20% to 12.5%. This was neutralized by scrapping of indexation benefits.
Mr. Kushal Patel, Managing Director, Axita Cotton, said, "The Finance Minister announced the development of twelve new industrial parks under the National Industrial Corridor Development programme. These parks will be equipped with complete infrastructure, and 'plug and play' parks will be established in or near 100 cities. These provisions will significantly boost industries across the spectrum, and we commend the budget for its strong focus on industrial growth.
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."
Mr. Raj Singhal, Co-founder & CEO of Footprints Childcare
I am pleased with the Union Budget 2024's revisions to tax slabs and the increased standard deduction. These give parents more disposable income to invest in their children's early education, a critical developmental stage. This financial relief will support access to quality preschools, enhancing overall development and future success.
Furthermore, the reengineered skill loan scheme with loans up to INR 7.5 lakh, supported by a government-promoted fund guarantee, ensures 25,000 students annually access a dynamic workforce. Additionally, the comprehensive education loan scheme of up to INR 10 lakh for higher studies, with an annual interest subvention of 3% through e-vouchers, benefits one lakh students. Together, these measures create a robust foundation for educational growth from early childhood through higher education.
Ankit Patel, Co-Founder & CBO of eFeed -
While Budget 2024 introduced several measures for the agricultural sector, it notably fell short in addressing the specific needs of cattle farmers. To increase their income, the government should consider targeted subsidies for cattle feed, investment in veterinary healthcare, and incentives for sustainable farming practices.
Sriram PH, Co-Founder & CEO at DaveAI
I believe Budget 3.0 is a forward thinking one, especially with a focus on digital infrastructure, innovation and research & development. The roadmap towards a developed country is promising for entrepreneurs building from India. The proposal to abolish the Angel tax will play a key part in facilitating an environment that boosts investments and ease of doing business. We expect robust implementation of initiatives proposed to enable a strong environment fostering deep technology investments in the country.
Dilshad Billimoria, Founder, Managing Director, and Chief Financial Planner at Dilzer Consultants Pvt Ltd
"The 2024 budget brings significant changes that will impact investors and salaried individuals. At Dilzer, we view these adjustments as important steps in shaping India's financial landscape. The revision of the Long Term Capital Gains Tax rate to 12.5% with an annual exemption of ₹1.25 lakhs for listed securities held over 12 months could encourage more long-term investments, aligning with our wealth creation philosophy. We await clarification on Short Term Capital Gains taxation for comprehensive planning.
For salaried employees, the increase in Standard Deduction to ₹75,000 is a welcome relief that could boost disposable income. At Dilzer, we're committed to helping our clients navigate these changes effectively. We'll be analyzing the budget's finer details to provide tailored advice on integrating these new provisions into our clients' financial strategies, ensuring we continue to create personalized, long-term plans that adapt to the evolving fiscal environment while meeting individual objectives.
Rutvi Sheth, Director, Advait Greenergy Private Limited
Rutvi Sheth, Director, Advait Greenergy Private Limited, says, "The 2024 budget's allocation of Rs. 600 crore for the National Green Hydrogen Fund marks a significant milestone in India's journey towards net-zero emissions by 2070. At Advait Greenergy, we view this as a transformative opportunity for the sustainable energy sector, perfectly aligning with our mission to provide innovative infrastructure solutions for the power and telecom industries.
As leaders in overhead transmission line solutions and renewable energy infrastructure, Advait Greenergy is well-positioned to play a crucial role in India's Green Hydrogen initiative. This fund will accelerate the development of Green Hydrogen, green ammonia, and carbon capture technologies, areas where our expertise in power transmission and distribution will be invaluable. We are committed to driving the transition towards a greener, more sustainable future."
Rajesh Singla, CEO & Founder of Planify
The budget, presented by Finance Minister Nirmala Sitharaman, has introduced several pivotal reforms aimed at reshaping the financial landscape.
One of the most notable changes is the hike in the tax rate for equity investments held for less than one year, which has been increased to 20% from the previous 15%. For shares held for more than 12 months, the long-term capital gains (LTCG) tax has been raised to 12.5% from 10%. This adjustment is expected to impact investor behavior, potentially leading to a more cautious approach in short-term trading.
Additionally, the budget has seen a hike in the Securities Transaction Tax (STT) on futures and options (F&O) securities by 0.02% and 0.1%, respectively. This move, aimed at curbing rampant F&O trading, resulted in a sharp market reaction, with a 400-point drop immediately following the announcement. The increased STT rates mean that equity and index traders will now face double the tax for their trades, which could lead to a more stabilized market in the long run.
In a significant boost for the startup ecosystem, the budget has abolished the angel tax, a move that is expected to encourage more venture capital (VC) funds and investors to support early-stage startups. This bold move addresses a long-standing concern in the startup community and aligns perfectly with our mission to democratize startup investments. By removing this significant barrier to capital raising, the government has paved the way for increased domestic and foreign investments in Indian startups. This decision, coupled with the existing valuation methods for non-resident investors, creates a more favorable environment for innovation and growth.
Rajesh Singla emphasizes that these changes, while initially challenging, are crucial for long-term economic stability and growth. "The abolition of the angel tax is a welcome move that will undoubtedly spur innovation and investment in the startup sector. As a platform connecting investors with promising startups, we anticipate this change will catalyze a new wave of entrepreneurial activity and investment opportunities in India," he states.
By aligning with the government's roadmap, Planify aims to contribute significantly to the growth of the startup ecosystem and, consequently, the broader economy.
Mr Neeraj Raja Kochhar Chairman & Managing Director of Viraj Profiles Pvt. Limited
The government's Rs 1.48 lakh crore provision for employment and employability, particularly in recognizing first-time employees and incentivizing job creation, is a significant boost for the steel industry. As a leader in stainless steel manufacturing, we at Viraj welcome these initiatives that will strengthen our workforce and enhance productivity. The focus on sustainability and heavy engineering also resonates with our commitment to eco-friendly practices and cutting-edge technology. This budget sets a positive trajectory for the steel sector, supporting our mission of 'Make in India for the World' while contributing to sustainable industrial growth.
Deepak Chaudhary, Founder of Urban Tots
"With the upcoming budget presentation by Finance Minister Nirmala Sitharaman, the Modi 3.0 government's focus on revamping the PLI scheme to include more labor-intensive sectors is promising for industries like toys. The significant increase in allocation, projected to reach Rs 14,167.1 crore in FY25, signals a robust support framework for MSMEs and job creation. At Urban Tots, we are optimistic about the potential benefits this policy shift will bring, enabling us to scale operations, boost employment, and contribute to India's economic growth"
Manikkan S, Executive Director & CEO, Radiance Renewables-"The recent 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."
"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." - Mr. Satish Bhatia, Co - founder & CEO ,The Malabar Coast.
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.
Siddarth Pai, Founding Partner, 3one4 Capital, & Co-Chair, Regulatory Affairs Committee, IVCA budget quote.
"IVCA's tireless advocacy efforts have been recognised in this Budget.
Budget 2024 has announced a slew of measures for startups and investors in startups, many of which have been long-pending asks.
The removal of angel tax sans conditions must be celebrated as a major win. Companies raising capital from April 1. 2024 onwards won't have to suffer the threat of angel tax. The extension of "Angel Tax" to foreign investors resulted in a massive drip in funding. Aligning capital gains rates between listed and unlisted equity is a major win for the Startup ecosystem. For far too long has the differential tax rates been a cause of concern, leading to investments in listed companies as opposed to unlisted ones. Investments in unlisted companies goes into new asset creation, hiring and sales. Aligning the tax rates recognizes this contribution and will result in more funding to Indian startups.
The buyback changes seek to tax buybacks in the hands of the shareholders as dividends, with the original cost becoming a capital loss. This has removed buybacks as a tax-free source of income for investors. But this is inline with the rationalizations across the world on this.
AIFs in GIFT IFSC can look forward to a Variable Capital Company (VCC) Structure, a globally recognized and accepted vehicle for investment funds. Trusts were not conceived for the complex operations of VC/PE funds and the VCC structure will make GIFT IFSC even more attractive. The Section 68 exemption to GIFT IFSC AIFs, on par with SEBI AIFs, is a welcome move. Section 68 seeks to tax unexplained cash credits and was linked to the Angel Tax section. The lack of exemption to GIFT IFSC AIFs was an oversight which has been rectified.
Budget 2024 has delivered fundamental changes to Startups and Capital Gains regime, with the FM promising to revamp the Income Tax Act, 1961 to make it "more concise, lucid, easy to read and understand". These changes were the first step towards it."
Today's budget introduces pivotal initiatives for the e-commerce sector, notably addressing the skills gap and enhancing MSME operations. The creation of E-Commerce Export Hubs through PPPs aligns seamlessly with ShopClues' mission to expand global market access for MSMEs and traditional artisans.
The focus on women-specific skilling programs and market access for women-led enterprises is commendable. Aligning course content with industry needs, particularly in e-commerce, will enhance digital literacy and technical proficiency among MSMEs. Collaborative efforts with local institutions and e-commerce platforms like ShopClues will drive these initiatives, promoting economic empowerment.
Furthermore, reducing the TDS rate from 1% to 0.1% and removing the Equalisation Levy are significant reliefs for online sellers , fostering a favorable environment for online transactions and enhancing global competitiveness. Overall, the budget paves the way for a robust and inclusive digital economy-Anuraag Gambhir, Managing Director, Shopclues.
Mr. Sumit Mukhija - Executive Director and Chief Executive Officer, STT GDC India says, "The Union Budget 2024 outlines a forward-looking vision for the digital development of India. The government's commitment to investing more than ₹11.11 trillion in infrastructure, including digital infrastructure, aligns perfectly with the increasing needs of our data-focused economy. STT GDC India is especially enthusiastic about the emphasis on AI and innovation with initiatives such as the ₹1 lakh crore funding pool for private sector-led research. The focus on training 41 million young people in 5 years with a budget of ₹2 trillion will establish a strong pool of talent for the technology sector. The policy document aligning energy transition pathways with employment and sustainability reflects our dedication to eco-friendly data centres. As a leader in data centre services, STT GDC India is in a position to have a significant impact on aiding India's digital transformation and sustainable growth agenda."
CA Inderjeet Singh, Partner, AHSG & Co LLP:
"The Government has done a commendable job by relaxing individuals' income tax slab. It is a great decision for middle-income groups. This group has been struggling to save and barely managed to save with existing tax saving schemes. This refreshing change will allow them to have increased income and contribute to their economic stability. Also, a slight more tax relief should be considered for the middle class salaried people considering their low savings investments."
Yogesh Bhatia, CEO and MD of LML, a truly global brand set to enter the EV Industry-
"This Union Budget is a charging boost for the EV sector! Abolishing the Angel Tax will accelerate investments, while the new tax regime and increased standard deduction will electrify consumer demand. Exempting customs duty on critical minerals like lithium and cobalt will reduce production costs and make EVs more affordable. Incentivizing job creation in manufacturing will drive growth, and a simpler tax regime for foreign shipping companies will facilitate the import of EV components. Reducing corporate tax on foreign companies to 35% will attract global players to India's EV market. This Budget has put India's EV revolution in the fast lane!"
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."
Spokesperson - 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
Spokesperson - Mr. 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."
Spokesperson - Mr. 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.
Spokesperson - Balu Ramachandran Founder and CEO of OC Academy
I am encouraged by the 2024 Indian budget's commitment to advancing healthcare and education. The continuing funding for healthcare, reduction in taxes for cancer drugs and x ray's coupled with initiatives to promote digital health and skill development are all positive. The measures to enhance skills for the youth and funding to support higher education will ensure availability of more healthcare professionals in the country. We look forward to collaborating with the government and other stakeholders to enhance skill development and availability of talent to build a robust healthcare ecosystem that benefits all.
Spokesperson - Anup Patil, Co-founder & CEO Intangles
The Union Budget for 2024-25 demonstrates a robust commitment to strengthening the nation's workforce through significant investments in education, employment, and skilling. The allocation of Rs 2 lakh crore over five years to benefit 4.1 crore youth is a commendable initiative aimed at bridging the skills gap and fostering a more robust workforce.
Commitment to improving productivity through incentivized reforms and technological enablement will have far-reaching impacts on the manufacturing and services sectors. Prioritizing urban development and infrastructure, the government is laying the groundwork for enhanced connectivity and economic resilience. The Pradhan Mantri Gram Sadak Yojna Phase 4, which aims to provide all-weather connectivity to 25,000 habitations, underscores the focus on inclusive development. The overarching economic policy framework proposed by the government will set the stage for sustained growth and holistic development.
Spokesperson - Ashish Agarwal, MD & CEO - Seros
The Union Budget's focus on energy transition and sustainability is praiseworthy, balancing economic growth with environmental goals. We're optimistic about India's energy future and eager to collaborate with the government on policies for energy security, affordability, and accessibility to support national growth.
Additionally, the budget's ownership, leasing, and flagging reforms are crucial for the Indian shipping industry. Simplifying registration and incentivizing ship flagging will boost our national fleet's competitiveness, increase India's share in the global shipping market, and create substantial employment opportunities.
Spokesperson - Suman J, Partner, Xynteo
The 2024 Indian Budget demonstrates a strong commitment to sustainability and environmental, social, and governance (ESG) principles, integrating these priorities across various sectors. Significant allocations have been made towards green energy, sustainable agriculture, and waste management, reflecting a holistic approach to environmental stewardship. Additionally, the budget emphasizes social equity, with targeted interventions aimed at improving the livelihoods of marginalized communities through inclusive policies and social welfare programs. The move to introduce taxonomy for climate finance for enhancing the availability of capital for climate adaptation and mitigation is a welcome step. These initiatives align with global ESG standards and position India as a proactive player in the sustainable development arena.
Spokesperson - by S Pasupathi, COO, HirePro
"The Union Budget's substantial allocation of over ₹3 lakh crore for schemes benefiting women and girls underscores the government's commitment to advancing women-led development. This aligns with our recent report highlighting a positive trend of a 5% increase in women hiring from engineering campuses in FY23. We are particularly excited about the budget's provision for 1 crore youth to gain industry experience through internships with 500 top companies. This initiative bridges the gap between theory and practice and fosters a more inclusive hiring landscape.
The Union Budget's strategic investments, including ₹1.48 lakh crore for education, employment, and skill development, along with the upgradation of 1,000 ITIs, demonstrate a strong commitment to building a skilled and employable workforce. This alignment with the growing trend of increased women hiring will drive job opportunities, achieve sustainable economic growth, and enhance business benefits through a diverse and skilled talent pool. Such cross-sector collaboration is crucial in addressing the skills gap and promoting social equity, ensuring a more robust transition for students into high-demand roles.
Spokesperson - Mr. Arpit Paliwal, Director, HRS Navigation
We welcome the increased allocation and spending in healthcare as outlined in the recent budget. This commitment is a step forward in enhancing our healthcare infrastructure and patient care. However, while there is recognition of domestic manufacturing, the support for the 'Make in India' initiative within the healthcare sector remains insufficient. Moreover, the current budget allocation for deep tech innovations is not fully reflective of the sector's needs. To truly accelerate our progress towards self-reliance and establish India as a global leader in advanced medical technologies, a more robust investment in healthtech R&D and specific support for cutting-edge technologies are essential. Such measures would not only accelerate our domestic capabilities but also position us at the forefront of global healthcare advancements.
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."
Tetsuya Yamada, MD, OMRON Healthcare India-"We commend the healthcare initiatives outlined in the Union Budget. The increased allocation for health and wellness, coupled with a strong emphasis on digital health infrastructure & telemedicine, is a significant step towards boosting accessibility and efficiency of healthcare services through digital means. OMRON Healthcare has long been dedicated to empowering individuals with the tools needed to monitor and manage their health effectively. The proposed budget's support for innovations in healthcare aligns perfectly with our commitment to provide easily accessible and user-friendly health monitoring solutions. We believe that these measures will not only improve the quality of healthcare but also foster a culture of proactive health management among citizens. We look forward to contributing to this transformative journey and supporting the government's vision of a healthier, more resilient India."
Shridhar Venkat, CEO, The Akshaya Patra Foundation - mid-day meal NGO partner for GoI in government schools.
'The 2024-2025 budget brings positive direction for education and nutrition in India. Two aspects particularly excite us at Akshaya Patra:
- The National Means cum Merit Scholarship Scheme has received a significant boost, with ₹377 crore allocated for 2024-25. This increase aligns beautifully with our own Akshaya Patra Scholarship Program. Together, these initiatives will help talented students from economically weaker sections continue their education beyond schooling, reducing dropouts and nurturing potential.
- The PM POSHAN (formerly Mid-Day Meal) scheme has been allocated ₹12,467.39 crore for 2024-25. This represents a significant 24.67% increase from the revised estimate of ₹10,000 crore in 2023-24. This substantial investment in our children's nutrition is heartening. As key implementers of the mid-day meal program, we at Akshaya Patra are energized by this commitment.
These strategic allocations, coupled with the five-year extension of the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY), form a comprehensive approach that directly addresses multiple Sustainable Development Goals. By combating hunger and promoting education, we're making significant strides towards SDG 2 (Zero Hunger), SDG 4 (Quality Education), and SDG 10 (Reduced Inequalities). At Akshaya Patra, we're more motivated than ever to collaborate with the government in these crucial areas. This budget takes us another step closer to achieving the Zero Hunger SDG and ensuring quality education for all.'
"The budget for the manufacturing sector is highly encouraging. The significant allocations for infrastructure development and technology upgrades highlight the government's commitment to enhancing domestic manufacturing capabilities. Increased funding for the PLI (Production-Linked Incentive) scheme is expected to attract more investments and boost production capacity, enabling us to compete more effectively on a global scale. The reduction in e-commerce TDS will also alleviate the tax burden on businesses, facilitating smoother operations and fostering growth.
For the coffee manufacturing industry, while the budget announcement did not address some specific expectations, we remain optimistic. A future reduction in GST on products such as packaged foods and instant coffee, along with a decrease in import duty on green beans, would greatly support meeting market demand and improving the sustainability and profitability of coffee production. We look forward to continued dialogue and future measures that will further benefit our industry," said Mr. Praveen Jaipuriar, CEO, of Continental Coffee Limited.
Quote by Mr. Aneel Gambhir, CFO, DTDC Express Ltd:
"The Union Budget 2024–25 introduces a significant overhaul of tax structures and customs duties, a move set to bolster domestic production and enhance the global competitiveness of Indian products. The move is expected to stimulate growth and open new avenues for Indian exports to the international markets. Similarly, reductions or exemptions in Basic Customs Duty (BCD) for mobile phones, critical minerals, leather, textiles, etc. are set to increase domestic demand and in turn, accelerate logistics movements globally.
Furthermore, the budget's support for MSMEs and the e-commerce sectors through financing, regulatory changes, and technology assistance will empower them to thrive and compete internationally. These measures will not only strengthen these sectors but will also support the logistics industry in facilitating seamless global trade."
Adarsh Sharma, Chief Business Officer, FS Life.-The budget has been a breath of fresh air for the startup ecosystem:-
1. Angel Tax abolished
2. E-commerce TDS reduced from 1% to .1% which will significantly help with cashflow
3. Most importantly, LTCG on unlisted stocks has been brought down to 12.5% from 20%, which brings startup investing at the same level with public markets. This will have a big role in opening up domestic LP capital flow & will also be great for founders/employees who will make money through liquidation events
Yes, there is a lot of unease around public markets with the increase in taxation there + the removal of indexation on real estate, but you get some & lose some. Might not be the best budget for public market investors, but great for private markets - which we needed to support more capital & more innovation in the startup ecosystem.
“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.”
– By Mr. Nitin Aggarwal, CEO, TVS Infrastructure Investment Manager Private Limited.
Chirag Agrawal, Co-Founder, TravClan
The Finance Minister's proposals to develop tourism corridors at Vishnupad Temple and Mahabodhi Temple, along with support for Nalanda as a tourist hub, represent a positive leap towards enhancing India's tourism infrastructure. These initiatives could stimulate local economies and attract more visitors, promising substantial growth for the travel and tourism sector.
At TravClan, we believe that integrating these developments with advanced technology is crucial. Incorporating digital tools for better visitor management and promoting seamless travel solutions could significantly enhance their impact.
While the focus on Odisha's tourism is commendable, a more comprehensive strategy that leverages technology to address the needs of modern travel agents and improve domestic tourism efficiency would be even more beneficial. The economic policy framework for next-generation reforms is a step in the right direction, but practical implementations will be key to fully realising these goals.
Overall, the budget shows great promise for the tourism sector, and adopting innovative solutions could amplify benefits and drive sustainable growth in the industry.
Mr. Saiyam Mehra, Chairman, All India Gem & Jewellery Domestic Council:
"The reduction in the basic customs duty on gold and silver to 6% and on platinum to 6.4% is a commendable move by the government. This was a long-standing demand from the All India Gems & Jewellery Domestic Council, which represents the entire gems and jewellery industry. The customs duty reduction will benefit domestic jewellery manufacturers, especially small and medium enterprises, encouraging them to transition gradually to the formal channel. Additionally, the Finance Minister has also increased the scope of working capital loans to SMEs and MSMEs, which will help these units expand their businesses in the future. The extension of the direct benefit transfer scheme to the manufacturing sector, with separate salary and Employees' Provident Fund transfers directly to the accounts of employers and employees, is a wonderful move. This will accelerate employment generation in India. Overall, this budget has focused on 9 key priorities of Viksit Bharat and we are proud to witness it."
Mr. Rajesh Rokde, Vice Chairman, All India Gem & Jewellery Domestic Council:
We admire Finance Minister Nirmala Sitharaman ji's Union Budget presented today, which stands out in several ways. Notably, after persistent efforts from GJC, the government has reduced customs duties on gold and silver to 6 % and on platinum to 6.4%. This move will provide significant relief to consumers who have been investing in alternative assets, encouraging them to return to gold investments. We are confident that household investment and savings in India will see an increase in the coming days.
Additionally, the expansion of working capital loans for SMEs and MSMEs in the jewelry sector will provide a much-needed boost. The increase in the personal income tax exemption limit will also benefit consumers and promote household savings. Overall, the Union Budget 2024 is commendable.
Quote from Durgesh Pandey, CFO, Web Werks – Iron Mountain Data Centers:
"We welcome the Union Budget 2024-25, which highlights the continued strong push towards digitization across sectors and infrastructure development. This will further provide a fillip to the data center industry, as digitization is the backbone for the growth of this sector. One of the key components is power for the data center industry, where renewable energy will prove to be a game-changer. The government's continued focus on energy transition to renewable sources is evident from the expansion of the list of exempted capital goods for the solar sector and initiatives for pumped storage to improve reliability and cost-effectiveness. Additionally, the full exemption of certain rare earth minerals used for making high-end equipment and batteries for data centers from custom duty is a significant move. This budget reflects the government's vision to drive technological advancements and digital inclusion across the nation.
At Web Werks - Iron Mountain Data Centers, we are excited about the potential for growth and innovation that these initiatives will unlock, and we remain dedicated to supporting India's journey towards a robust digital future."
Sandeep Aggarwal, Founder & CEO, Droom.
Post-Budget Comments 2024: Start-Up Ecosystem
"The Union Budget 2024 has provided a much-needed boost to the Indian start-up ecosystem, aligning with PM Modi's vision of 'Viksit Bharat' by 2047. The abolition of the angel tax for all investor classes is a landmark decision that will foster greater investment, spur innovation, and support entrepreneurial spirit across the country. This long-awaited reform will undoubtedly attract more domestic and foreign capital into the start-up sector, addressing the scarcity of domestic capital.
Additionally, the expansion of the tax holiday eligibility under the Startup India scheme and the reduction of the corporate tax rate on foreign companies from 40% to 35% are crucial measures that will enhance the investment landscape. These initiatives, combined with the removal of regulatory bottlenecks, are poised to drive significant growth in the start-up ecosystem, contributing to India's economic development and global competitiveness."
Post-Budget Comments On E-commerce:
"The Union Budget 2024 has taken significant steps to strengthen the e-commerce sector, aligning with the vision of 'Viksit Bharat' by 2047. The reduction of TDS rate on e-commerce to 0.1% and the decriminalization of TDS delay are commendable moves that will simplify tax compliance and reduce the burden on businesses. The abolition of the 2% Equalisation Levy on e-commerce supplies from August 2024 will further promote fair competition and encourage international investments.
The establishment of dedicated e-commerce export hubs in PPP mode is a transformative initiative that will empower MSMEs and traditional artisans to access global markets, potentially increasing India's e-commerce exports to $350 billion by 2030. This budget reflects a pragmatic approach to boosting online trade and positions India as a formidable player in the global digital economy."
Nirmit Parikh, CEO & founder, apna.co, "The Union Budget FY2024-25 underscores job creation as a critical priority, mirroring our shared focus on skilling and employment. The substantial Rs. 1.48 lakh crore allocation for education, employment, and skill development marks a significant stride forward. Introducing five schemes aimed at skilling over 40 million youth within five years, backed by an outlay of Rs. 2 lakh crore, is a monumental step toward shaping a skilled and future-ready workforce.
Moreover, the initiative to establish working women hostels and crèches in collaboration with the industry is a progressive move that will enhance workforce participation among women and promote gender equity. The partnerships for women-centric skills programs and the provision of market access for female SHG businesses are especially commendable, empowering women to play a more significant role in our economy. The three employment-linked incentive schemes, which support first-time job seekers, job creation in manufacturing, and employee support, are poised to drive significant employment growth.
Additionally, the emphasis on accelerating the growth of the rural economy, supporting MSMEs, and promoting tourism will further amplify employment opportunities across diverse sectors. This comprehensive approach reflects a visionary strategy to build a robust, inclusive, and dynamic economy that benefits all."
"New and additional employment incentives across manufacturing and other sectors will encourage workforce growth and bolster the Make in India initiative. These incentives complement existing PLI schemes and provide additional income tax benefits for hiring more employees." By Vivek Iyer, Partner, Grant Thornton Bharat
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"Regulatory forbearance will allow banks to extend credit to stressed MSMEs in the SMA category due to external circumstances. Enhanced regulatory focus will ensure benefits reach deserving entities." By Vivek Iyer, Partner, Grant Thornton Bharat
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"The government has broadened the market for receivables discounting for MSMEs by lowering the threshold for more receivable buyers on the TREDS platform. Enhanced liquidity will help MSMEs manage their working capital better, enabling them to fund their growth aspirations. Public Sector Banks will develop independent credit scoring models based on MSMEs' digital footprint, leading to improved data quality and governance. We also expect increased regulatory scrutiny of these alternate credit scoring models." By Vivek Iyer, Partner, Grant Thornton Bharat
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