Union Budget 2024 : Post Budget Reaction / Quote from Market Leaders

“The logistics and supply chain is the lifeline of India’s growth story. The budget’s identification of infrastructure, manufacturing, and skilling as key areas for long-term development and subsequent allocation is a step in making India the logistics and manufacturing powerhouse of the world. As a fund focused on investing in supply chain and logistics, we are bullish on backing innovative entrepreneurs building the support ecosystem of India’s supply chain. The government’s move to set up E-commerce export hubs to be set up for enabling MSMEs to export their local products is a huge step in the direction of driving growth through innovation and building on new-age trends to drive MSME growth. Interesting move from the Government to create industrial centres in historic hubs like Gaya of India as a part of ‘Vikas bhi, Virasat bhi.’ This will boost widespread infra development and logistics in these regions and create employment opportunities, reducing the urban-rural divide as well as encourage distribution of income”.

This is recognition of the growing need for a deeptech economy. However, alongside the R&D Fund, the government should look at the Intellectual Property  regime. The much overdue Patent Policy needs to come out soonest to enable maximisation of R&D Fund.

• Anil Joshi, Managing Partner, Unicorn India Ventures

The 1000 Cr fund of funds for space tech is testimonial to India’s capability in coming up with breakthrough solutions at low cost. This will certainly help space tech companies to look for much needed early stage capital to get started. This will certainly help mobilise over 4000 Cr, great move

• Dr Srinivasan.K, Director -MBA ESG India
  Quote:
  

  “ Management colleges across the country exude confidence in the Union Education Budget 2024, presented by the Union Finance Minister Nirmala Sitharaman, emphasizing the need for innovative and access-based education. This commitment gets cemented for the future business leaders of our country due to the fact that an absolute allocation of ₹1.48 lakh crores has been made for education, employment, and skill development. The government has come forward with a scheme of providing loan assistance of up to ₹10 lakh for higher education in a domestic institution, therefore making the access to an MBA program easier and more accessible to a larger range of talent who dream of pursuing it. The most promising thing for MBA colleges is the introduction of a centrally funded scheme to train 20 lakh youth in five years in association with state governments and companies. This shall ensure that our students acquire industry-relevant skills to fill the gap between academia and professional practice. Apart from this, updating the 1,000 ITIs as per the need of the industry would further enhance the quality of management education.

  
  The stipend amounting to ₹5,000 and a one-time allowance of ₹6,000 that the students would get under the internship scheme will provide immense hands-on experience to them. This will come along especially with encouraging companies to use their CSR funds for this initiative that would fan the creation of collaboration between MBA colleges and the corporate sector.
  Overall, it makes India a global business and innovation hub by placing its students at the forefront in various industries.”
  

• Mr. Aditya Singh Ratnu, CEO at ZEVO-

  The budget announcement for FY 2024-25 is a promising development for India’s economy, particularly in terms of job creation and boosting consumption. At Zevo, we are encouraged by the government’s focus on sectors such as consumer goods, real estate, and automotive, which are poised to benefit significantly from these measures.

  The special attention given to MSMEs and manufacturing is a crucial step towards revitalizing these sectors. The introduction of a credit guarantee scheme for MSMEs in the manufacturing sector will provide much-needed financial security, enabling these businesses to expand and innovate. Facilitating term loans for the purchase of machinery is another commendable initiative that will help MSMEs modernize their operations and increase productivity.

  Moreover, the formulated package to finance technology support for MSMEs is a forward-thinking move that will drive digital transformation and enhance competitiveness. By providing the necessary resources for technological advancements, the government is empowering MSMEs to adopt cutting-edge solutions and stay ahead in a rapidly evolving market.

  We believe these initiatives will not only stimulate economic growth but also create a ripple effect across various industries. Increased job creation and consumption will lead to higher demand for consumer goods, real estate, and automobiles, thereby boosting these sectors and contributing to overall economic prosperity.

• Balkishan Sharma | Chairman & Founder at FVEG

   “As we watch FM Shrimati Nirmala Sitharaman present the Union Budget 2024-2025, we are filled with hope for the future of education in India. We happily acknowledge the progressive measures the government is taking to further the education of young Indians. The Union Budget 2024-25 proposes revising the Model Skill Loan Scheme to help 25,000 students every year. The government will also offer internships in 500 of India’s top companies. The companies can employ these interns through their CSR funds. As a support to employers, reimbursement of up to Rs 3,000 per month for two years towards their EPFO contribution for each additional employee will be provided. India’s large population challenges the count

• Mr. Harsh Shah, CEO, IndiGrid:

  “We welcome this significant change in rationalisation of the long term capital gain taxation for Business trusts in this budget. InvITs/REITs getting taxed at parity with equities will enhance their attractiveness for investors and will strengthen their position as platforms providing superior risk adjusted returns. We believe that this will also enable InvITs and REITs to become part of stock exchange indices, which will add significant liquidity and momentum.”

• Ms Gunjan Agarwal, Co-founder of XYST, “Abolishing Angel Tax will have a long-term impact on startup founders. This will not only motivate angel investors but also help to encourage entrepreneurial spirit in the Indian business domain. Additionally, the job generation push, coupled with the government’s financial assistance will help startups acquire more talented professionals, leading to cumulative growth in the long term. This Union Budget is full of opportunities for Indian startups pushing to become the next Unicorn, and governmental assistance is bolstering it to ensure success and growth.

• Mr Pratap Daruka – Chief Financial Officer, Tredence. 

  “The 2024 Union Budget has taken bold steps to boost the economy and promote growth across various sectors. The abolition of the angel tax is a welcome move for many new-age startups, alleviating a significant financial burden and encouraging more innovation and investment.

  Additionally, the ₹2 lakh crore package for skill development and employability through various programs is commendable and a significant move towards building a skilled workforce. However, to fully realize AI’s potential and ensure India captures a larger share of global AI investments, a more focused approach is necessary. Further emphasis on R&D grants and tax credits is essential. These steps will catalyze the development of cutting-edge solutions and significantly impact employment by creating millions of new jobs and transforming existing roles.

  While the government’s initiatives are a step in the right direction, a concentrated effort on AI will ensure India not only keeps pace with global advancements but also becomes a frontrunner in the AI and analytics space. It is now imperative for the government, universities, and corporates to collaborate and leverage these initiatives to drive sustained economic growth and innovation.”

•  Harry Bajaj, Founder and CEO, Mobec on the EV Sector 

  Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, demonstrates a strong commitment to India’s energy transition and sustainable development. The introduction of the PM Surya Ghar Muft Yojana, providing rooftop solar panels and up to 300 units of free electricity to 1 crore households, is a significant step towards democratizing access to clean energy. Additionally, the focus on advanced ultra-supercritical thermal power plants and critical mineral recycling will bolster our green infrastructure. The energy audit and financial support for MSMEs will drive the adoption of cleaner energy sources in key industrial clusters. These initiatives not only align with Mobec’s vision of a sustainable future but also create a robust ecosystem for green innovation and energy efficiency in India.
• Mr. Kalyan Chakrabarti, CEO, Emaar India

• Anant Jain, Head of Customer Success – India, GfK – an NIQ company

“In the Union Budget 2024, the Finance Minister’s focus on uplifting the poor, women, youth, and farmers aligns with India’s aspirations towards a developed nation. It reflects the government’s commitment to ‘Viksit Bharat’ and is poised to benefit the tech sector. The proposed reduction in the Basic Customs Duty (BCD) on mobile phones, mobile PCDA (Printed Circuit Design Assembly), and mobile chargers to 15% expected to make mobile devices and accessories more affordable, thereby boosting consumer demand and driving growth in the tech industry. Additionally, the increase in duty on printed circuit board assemblies (PCBA) for specific telecom equipment from 10% to 15% aims to encourage local manufacturing. Government’s prioritization on jobs, agriculture and energy sector will provide long term growth opportunities to tech & durables sector.”

• Karthik Kondepudi, Partner at Herbochem – “I appreciate the Government of India for supporting the MSME sector. It is a commendable step from the Government that now the MSMEs in the manufacturing sector will benefit to grow without any burden of collaterals, with the Credit Guarantee Scheme for MSMEs which will guarantee a cover up to ₹100 crore. The new way of assessing MSME credit using digital footprints for credit appraisal will be far better than conventional methods and increase credit availability for many businesses. Also, credit support during any stress period will ensure that operations of the MSMEs are kept continuous since this is an important factor influencing the survival and growth of businesses. Increasing the Mudra loans limit up to ₹20 lakh, strengthening the TReDS platform space and covering more clusters with SIDBI will fulfill the needed funds and working capital needs of the sector. The measures for establishing the food irradiation units and quality testing lab will strengthen the base of the food sector both in terms of quality and safety. In summary, this budget provides a solid ground for MSME to grow, compete internationally, and act as a major driver of the Indian economy.”

•  Dr Sudhir Mehta Founder and Chairman EKA Mobility , Pinnacle Industries 

“Today’s union budget marks a significant milestone in India’s journey toward becoming a $5 trillion economy and solidifies its role as a global growth engine. The government’s comprehensive approach to supporting various sectors, especially MSMEs and start-ups, is commendable. The introduction of a credit guarantee scheme for MSMEs, which facilitates term loans without collateral or third-party guarantees, is a game-changer. By reducing the turnover threshold for mandatory onboarding on the TReDS platform from Rs 500 crore to Rs 250 crore, the government is making it easier for smaller MSMEs to benefit from this essential online platform. Additionally, opening 24 new SIDBI branches will enhance support for MSME clusters across the country. Likewise, the abolition of the ‘Angel Tax’ for all investors in start-ups is another progressive move, offering substantial relief and encouraging greater investment in innovation and entrepreneurship. While, in agriculture, the allocation of ₹2.66 lakh crore for rural development and the focus on climate-resilient crop varieties reflect a forward-thinking strategy. The initiative to introduce 1 crore farmers to natural farming over the next two years, supported by certification and branding, will contribute significantly to the sector’s sustainability and productivity. Overall, these measures underscore the government’s commitment to fostering economic growth, supporting innovation, and driving sustainable development across sectors.”

• • Mr. Ashok Jayanthi, Chairman & Co-founder, Hosachiguru,

Training and enabling 1 crore farmers in natural farming, along with certification and branding support, is a commendable step towards ecological sustainability. Moreover, the establishment of 10,000 bio-input resource centers across the country will provide essential bio-inputs on a constant basis. This initiative will significantly reduce the financial burden on farmers by offering cost-effective and eco-friendly alternatives. Together, these measures will greatly support the farming community, fostering sustainable agricultural practices and enhancing the overall agricultural ecosystem.

• Vikas Bajaj, President of Association of Indian Forging Industry (AIFI) –

  Vikas Bajaj, President of Association of Indian Forging Industry (AIFI), said,” We welcome the budget presented today, which lays out a comprehensive roadmap for ‘Viksit Bharat’ across key sectors including manufacturing and services. The emphasis on promoting MSMEs through enhanced credit support and infrastructure development is particularly commendable. These measures will not only bolster job creation but also enhance competitiveness, paving the way for a robust industrial growth trajectory. For the manufacturing sector, the proposed incentives for additional employment will significantly boost job creation and strengthen the manufacturing ecosystem. The special attention given to MSMEs, particularly labour-intensive manufacturing, through financing, regulatory changes, and technology support, is a crucial step toward enhancing global competitiveness.

  The introduction of a credit guarantee scheme for MSMEs, providing up to ₹100 crore without collateral, along with the new credit assessment model and enhanced Mudra loan limits, will ensure broader financial inclusion and stability. The commitment to developing ‘plug and play’ industrial parks and reducing customs duty on key raw materials like ferro nickel and blister copper will lower production costs and enhance competitiveness. Additionally, the financial support for shifting micro and small industries to cleaner forms of energy and the facilitation of investment-grade energy audits in 60 clusters, with expansion to 100 clusters, will greatly benefit MSME units in the forging sector. Overall, this budget is a significant step towards ‘Viksit Bharat,’ and we at AIFI are optimistic about its positive impact on the forging industry and the broader manufacturing sector.”