- By Talibuddin Khan
- Thu, 01 Feb 2024 11:40 PM (IST)
- Source:JND
Finance Minister Nirmala Sitharaman on Thursday announced a Rs 11.11 lakh crore spending on infrastructure and vowed to continue reforms as she resisted resorting to populist measures in Modi government's last Budget before general elections, instead choosing to stay on the path of cutting deficit while bolstering measures for focus groups.
Presenting a vote on account or an interim Budget for 2024-25, Sitharaman proposed no changes in income tax rates for individuals and corporates, as well as import duty but offered amnesty for disputed income tax demands of the period before 2014-15 as a relief to small taxpayers. In her close to an hour-long Budget speech in the Lok Sabha, she listed her government's achievements across sectors in the last 10 years and announced measures to boost tourism, housing and renewable energy.
"The next five years will be years of unprecedented development and golden moments to realise the dream of developed India by 2047. Guided by the principle 'reform, perform, and transform', the government will take up next generation reforms, and build consensus with the states and stakeholders for effective implementation," she said.
Here's How Industry Leaders Reacted To Budget:
- Healthcare
Vishal Goel, Managing Director, Rx Propellant, said, "the interim budget this year is a much-needed shot in the arm of the science & technology community, especially those involved in the research and development. Research and innovation in India is indeed catalyzing growth, employment and development of the country and establishing a corpus of INR 1 lakh crore with 50-year interest free loan will only further India’s efforts of self-sufficiency and Make in India. We are hopeful that by leveraging this support, the scientific community will be able to address the upstream concerns of the pharma and life sciences industry in India, including molecules and APIs."
"The announcement of three centers of excellence (CoE) and a dedicated program to promote research and innovation in pharma is a formidable step forward for the industry. The one for bio-manufacturing will bolster India’s commitment to developing environment-friendly alternatives in pharma, plastics, polymers and agri inputs too and position it as an emerging leader. Augmenting the infrastructure capex outlay to 3.4% of GDP along with the focus on creating multi-modal connectivity through new rail corridors, airport and road infrastructure enhancement will have a multiplier effect by ironing out logistics bottlenecks and promote the overall growth of the scientific ecosystem in the country," he said.
Chandra Ganjoo, Group Chief Executive Officer, Trivitron Healthcare, said, "notable initiatives for the healthcare sector include a significant focus on maternal and child healthcare through the introduction of Saksham Anganwadi and Poshan 2.0. Cutting-edge technologies like Newborn Screening, provided by Trivitron Healthcare, will play a crucial role in early health issue detection in newborns. Proposing the integration of newborn screening as a national program accessible in every hospital and maternity centre across the nation underscores the commitment to securing childhood and fostering holistic development. Additionally, the Finance Minister also announced a mission to eradicate sickle cell anemia by 2047, involving the screening of seven crore people, marking a transformative step in the diagnostic industry."
A Ganesan, Vice Chairman, Neuberg Diagnostics, said, "the budget also addresses the pressing issue of cervical cancer through vaccination. Targeting girls aged 9 to 14, the government aims to prevent cervical cancer caused by the prevalent human papillomavirus (HPV). In India, cervical cancer contributes to approximately 6–29% of all cancers in women. With a focus on awareness, early HPV detection, and vaccination, the initiative seeks to empower females to enhance their reproductive health and safeguard against the consequences of cervical cancer."
"Recognizing a significant shortfall of doctors and surgeons across various regions of India, the budget for 2024 outlines plans to establish additional medical colleges. Leveraging existing hospital infrastructure under different departments, this strategic move aims to address the scarcity of medical professionals, ultimately contributing to an enhanced healthcare landscape," Ganesan added.
MSMEs
Mandeep Arora, MD & Co-founder, UBON, said, "The government’s focus on empowering the MSME sector is evident. The commitment to providing timely and adequate finances, relevant technologies, and training is welcomed. The emphasis on orienting the regulatory environment to facilitate MSME growth indicates a supportive policy framework. The increased threshold for presumptive taxation from Rs 2 crore to Rs 3 crore is seen as a positive step, providing relief to small retail businesses, allowing them to focus on growth and development. Mr. Mandeep anticipates that these measures will enhance the competitiveness of MSMEs on a global scale."
"In alignment with the 'Panchamrit' goals, the founder notes the government's focus on sustaining high and resource-efficient economic growth. The commitment to energy security is perceived as a positive step, ensuring availability, accessibility, and affordability for businesses. To meet investment needs, the founder appreciates the government's commitment to preparing the financial sector in terms of size, capacity, skills, and regulatory framework. This will contribute to a robust financial ecosystem that can support the growth aspirations of both MSMEs and retail businesses," he said.
Lalit Arora, Co-founder UBON, said, "the recent budget announcement has invigorated the founder with a renewed sense of optimism. The decision to increase the presumptive taxation threshold from Rs 2 crore to Rs 3 crore is perceived as a welcome relief for small retail enterprises, offering them room for growth. The founder applauds the government's commitment to fostering an environment conducive to development and productivity, evident in the forward-looking 'Reform, Perform, and Transform' approach."
"In the realm of MSMEs, the founder commends the government's focus on providing timely finances, relevant technologies, and training, foreseeing increased competitiveness on a global scale. Overall, the founder's positive sentiment reflects a belief in the budget's potential to foster growth and innovation across MSMEs and retail businesses," he said.
Solar Energy
Tanya Singhal, Founder of Mynzo Carbon & SolarArise, said, "While the budget 2024 remains relatively silent on clean energy, it underscores the significance of the Pradhan Mantri Suryoday Yojana. Despite being limited to households with income 1-1.5l/annum, this initiative breaks barriers to rooftop solar adoption, addressing the crucial upfront capital hurdle. It not only enhances access to power but also extends electricity reach to areas lacking a stable grid. While not a game-changer in GW statistics, it is a life-changer for many who are in desperate need of power. The focus on empowering households aligns with a sustainable, inclusive future."
Real Estate Industry
Bhavesh Kothari, Founder & CEO, Property First, said, "The interim budget 2024 has touched upon key indicators that will carve a new path for the real estate sector. While a lot has been spoken about policy incentives and financial empowerment, the provision for a new scheme introduction to enable the middle class to buy and build homes will make way for a lot of possibilities. In my view, this will uncover new opportunities for the affordable sector which slowed down over the last 1-2 years. Once the final budget is announced, the benefits will be realized by the end consumers who want to be part of the ongoing real estate growth story. Besides the announcement of tax proposal and the no change in taxation will also impact the homeowners and the sector positively."
Angad Bedi, Managing Director, BCD Group, said, "A lot of positives emerged from the interim budget 2024 announcement and the key takeaways for the sector point towards a brighter future. From the point of view of a larger picture, things like ‘no change in taxation’, a larger outlay for infrastructural development, and the provision for housing for the middle class will lay the foundation for a bigger growth story. While looking at the cumulative result of what has been presented, I am optimistic that the actual budget will uncover fresh perspectives for the real estate sector, and in the process, the affordable sector will get immense opportunities to recover from the setback that it experienced in the last one or two years. At the end of the day, it is the consumer who will benefit, and we are eagerly waiting for more policy incentives and proactive steps for the sector."
Electric Vehicle Industry
Yogesh Bhatia, CEO and MD of LML, said, "The government is resolute in advancing the electric vehicle (EV) ecosystem, reinforcing manufacturing and charging infrastructure. This initiative opens entrepreneurial doors for vendors, providing jobs for skilled youth in manufacturing, installation, and maintenance. The embrace of e-buses and the introduction of a new scheme for biomanufacturing and foundry underscore our commitment to green growth. We are poised to implement next-generation reforms, seeking consensus with states and stakeholders for effective execution, ensuring sustained growth and fulfilling aspirations."
Arjun, Co-founder and CEO, Raptee Energy stated, "Various initiatives announced by the FM today clearly demonstrate the government's intention to further accelerate EV adoption and also generate significant employment opportunities for the youth. It is encouraging to see the focus on research and innovation to further grow the EV ecosystem. We believe that as the govt rolls out details of the scheme in the coming days for growing the EV public charging infrastructure, the availability of public chargers across the country will significantly grow and EV companies like ours will find higher market acceptance from its consumers and also attract investor interest. This will also break the ‘range anxiety’, the biggest barrier for EV adoption in our country. The government's support in providing financial assistance and support to EV manufacturing will encourage entrepreneurs to do deeper innovation in the battery management segment and other technologies. Growth in EV charging infra will also generate employment opportunities for the youth as companies will be on a look out for people with technical know-how of running and maintaining charging infra. EV companies will also enjoy a deeper vendor ecosystem providing battery and other components for building make in India EV vehicles".
Pratik Kamdar, CEO & Co-Founder Neuron Energy, said, "The Interim Budget focused on key sectors and one of the promising ones is Electric Vehicles (EV). The initiatives will enhance and fortify the EV ecosystem by bolstering manufacturing and charging infrastructure. Additionally, the encouragement of greater adoption of e-buses for public transport networks through payment security mechanisms is a notable benefit. These investments not only pave the way for increased EV sales and adoption but also open doors for burgeoning job opportunities and entrepreneurial ventures within the sector. These efforts remain dedicated to driving India's green mobility revolution forward. There is also an anticipated outcome in the form of economic empowerment which will equip the youth with valuable technical skills, ensuring a robust workforce for the manufacturing of EV chargers, and associated equipment. We look forward to the July budget where the focus will be on Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) scheme and much-anticipated FAME III scheme."
Vegh Automobiles said, "The infusion of thirty crore Mudra Yojana loans into the hands of women entrepreneurs is a game-changer, providing financial backing for aspiring female leaders to venture into the dynamic field of electric vehicle manufacturing. The commendable twenty-eight per cent surge in female enrolment in higher education, particularly in STEM courses, fortifies the talent pool for the EV sector. As a young female CEO in the EV manufacturing startup, the budget announcements resonate deeply with me. These measures not only empower women in leadership roles but will also contribute to creating a more vibrant and dynamic EV manufacturing landscape in India, presenting a transformative shift for talent acquisition and gender diversity in India's EV manufacturing ecosystem."
"The emphasis on bolstering the EV ecosystem aligns seamlessly with our vision for a sustainable and eco-friendly mobility landscape. The move towards net zero emissions by 2070 is not only a commendable environmental goal but also a strategic boost for the EV sector. The planned expansion of manufacturing will likely lead to increased production capacities, fostering innovation and competitiveness. Moreover, the focus on charging infrastructure development is pivotal, addressing a critical aspect that has often been a consideration for potential EV adopters. As a manufacturer, we anticipate these initiatives will significantly contribute to the growth of the electric vehicle market in India, making sustainable mobility more accessible and attractive to a broader consumer base," the statement added.
Women Enterprises
Aparna Acharekar, Co-Founder, coto, said, "at coto, we are pleased with the Union Budget 2024's emphasis on women's welfare and empowerment, which closely aligns with coto's vision and mission. The introduction of strong policies in the favour of women across socio-economic groups undeniably leads to long-term economic growth. The startup ecosystem is also gradually witnessing a rise in women entrepreneurs and their ownership stakes within organizations. We also share the strong belief that this is a golden era for tech-savvy youth. We hope that more women will be inspired by this to enroll in science courses and pursue STEM-related employment. This not only promises a stronger representation of women in traditionally male-dominated fields but also offers them greater opportunities for financial independence through these careers. An increased presence of women in scientific professions can contribute to addressing pressing issues pertaining to mental health, which are highly relevant in today's world."
Affordable Housing
Sourabh Bansal, Co-founder and Managing Director, Magicrete, "With Finance Minister Sitharaman's announcement that an additional 20 million houses will be taken up in the next five years and a scheme for housing middle class, there is a positive outlook for the construction industry. Notably, the government emphasizes long-term economic growth and development. The withdrawal of standing direct tax demands and maintenance of tax rates reduce the burden on many construction business owners. The fact that interest-free loans are to continue and the commitment to bring down the Fiscal Deficit implies an exercise in good fiscal policies. The focus on affordable housing, rooftop solarization, and green energy is in sync with Magicrete’s emphasis on environment-friendly construction technologies. We anticipate a proactive role in fulfilling the mission of Viksit Bharat towards nation-building."
Green Energy
Sanjay Mendiratta, Director, Heat Cure, "As the Finance Minister presents the Interim Budget, Heat Cure welcomes the government's focus on sustainable growth and development. The commitment to green energy is particularly noteworthy, with initiatives like Viability Gap Funding for shore-wind energy and the establishment of coal gasification and liquification capacity. The emphasis on the e-vehicle sector and bio-manufacturing aligns with Heat Cure's dedication to eco-friendly practices. In the housing sector, the proposed scheme to assist the middle class in acquiring homes is a positive step towards inclusive development. The extension of tax exemptions for startups and IFSC units until March 31, 2025, is also encouraging for startups. The Finance Minister's decision to withdraw outstanding direct tax demands and maintain the current tax rates reflects a balanced approach. Heat Cure applauds the government's efforts to simplify tax procedures and reduce the compliance burden."
Tax Slabs
Vikas Kumar Mittal, Managing Director, Nova Formworks, "We commend the government for its determination to ensure economic growth and the steered path the country has been placed on. The proposed intention to streamline tax processes and preserve ongoing stability in tax rates is a welcome move toward the manufacturing sector. Prolongation of tax exemption for startups and IFSC units until March 31, 2025, will ensure continuity and promote innovativeness. This focus on green manufacturing, which is geared toward e-vehicle and bio-manufacturing sectors, coincides with our sustainability goals. Nova Formworks thanks the efforts of the government’s initiative to develop improved performance logistics efficiency institutes through a corridor of railway programs. We hope to be a part of the creation of Viksit Bharat and to engage constructively with the Government’s vision for India as an advanced Nation."
Sanjeev Bhandari, Founder and CEO, AirBrick, "We appreciate the government's commitment to improving taxpayer services, as highlighted by the Finance Minister's announcement. The proposal to withdraw outstanding direct tax demands up to Rs. 25,000 for years up to 2009-10 and Rs. 10,000 for the period from 2010 to 2015 is a welcome relief for 1 crore taxpayers. This step aligns with the government's efforts to ease the burden on taxpayers and foster a more supportive financial environment. Furthermore, the decision to maintain the current tax rates for both direct and indirect taxes, including import duties, provides stability and predictability for businesses. The extension of tax exemptions for startups and IFSC units until March 31, 2025, is a strategic move to encourage continued growth and innovation in these sectors," he said.
"The announcement of interest-free loans with an outlay of Rs. 1.3 lakh crore for the next year is a noteworthy initiative. This scheme aims to provide financial support and stimulate economic activities. The government's focus on fiscal discipline, with an estimated Fiscal Deficit of 5.1% of GDP in 2024-25, reflects a responsible approach to economic management. In the housing and construction sector, the announcement of a scheme to assist the middle class in buying or building houses is a significant step towards addressing housing challenges. Additionally, the focus on green energy, e-vehicles, and bio-manufacturing reflects a forward-looking approach," he added.