24th July 2024- Yesterday on July 23, Finance Minister Nirmala Sitharaman presented the first union Budget of the Modi 3.0 government, which makes her seventh consecutive budget speech during the Monsoon Session of Parliament. In her address, Sitharaman outlined the government’s priorities for fostering economic growth and creating new opportunities, with a focus on agriculture productivity, employment and skilling, and services.
Key highlights of the Union Budget 2024-25 include an increase in the standard deduction for salaried employees from ₹50,000 to ₹75,000 under the new income tax regime, benefiting millions of taxpayers.
The changed version of the Tax pattern
Up to INR 3 lakh: 0%
3 to 7 lakh: 5%
7 lakh to 10 lakh: 10%
10 lakh to 12 lakh: 15%
12 lakh to 15 lakh: 20%
Above 15 lakh: 30%
The government has abolished the angel tax for all investors, encouraging more investment in startups. As per the record, customs duties have been reduced to 6% for both gold and silver and 6.4% for platinum which leads to a price drop in gold and silver.
Saurabh Bhalerao, Associate Director at CareEdge Ratings for your perusal.
“Proposed changes in the IBC, setting up of an integrated technology platform. Strengthening of DRT/ NCLTs and establishment of additional tribunals is in line with CareEdge Ratings expectations. The thrust on an integrated flow and creating capacity is likely to improve outcomes which could result in faster resolutions and/ or higher recoveries.“
Mr. P Chandrashekhara Reddy, Sr. V.P. Sales and Marketing, Gemini Edibles & Fats India Ltd.
“Central government has been mentioning for the past few years regarding increasing the domestic production of oil seeds to reduce the dependence on imported edible oils. To this effect there was an increase in MSP of certain oil seeds recently. In this budget, there is mention that five oils seeds such as ground nut, sesame, mustard, soyabean and sunflower oil seeds for Atmanirbharta in edible oils and a priority for the government to work on production, warehousing and marketability.
Edible oil Industry firmly believes that to increase the production of these oil seeds at a faster pace, is only possible by increasing the prices of edible oils by increasing the customs duty on imported edible oils to motivate the farmer to switch from other crops to cultivation of oil seeds. Also, the support would be required to provide high yielding seeds for a better output of oil seeds. It will be interesting to note how these concerns are addressed through the initiatives of transforming agriculture research as mentioned in the budget.
There is no mention of customs duty on edible oil in today’s budget. However, we need to read the fine print to make a final comment.
India requires 24 Mn Tonnes of Edible Oils per annum. The domestic production is around 8 Mn Tonnes therefore India imports almost 16 Mn Tonnes of edible oil primarily comprising of Palm Oil, Sunflower Oil and Soyabean Oil. This implies that India is importing 60-65 percent of the requirement of edible oils which is huge. This requires very resolute decisions along with huge investment in research to increase farm yields for edible oil crops to make it viable alternative crop for the farmers.”
Dr. Neelima Kamrah, Principal of KIIT World School, Gurgaon
“The Central government’s budget for education, employment, and skills marks a transformative step towards empowering our youth and fostering economic growth. The substantial support for higher education and new skilling initiatives will create myriad opportunities for students and young professionals. By prioritizing these sectors, the government is laying a strong foundation for a knowledgeable and skilled workforce that can drive the nation’s development forward.
Moreover, the focus on increasing women’s participation in the workforce through various supportive measures reflects a strategic move towards gender inclusivity. These comprehensive measures are set to significantly benefit women and girls, paving the way for a more inclusive and progressive society. It is heartening to see such proactive steps being taken to ensure that women are given equal opportunities to thrive and contribute to the economy.
The budget’s emphasis on education, skills, and gender inclusivity is a promising sign of our nation’s commitment to holistic development. This approach not only aims to bridge existing gaps but also inspires confidence in the younger generation, encouraging them to aspire and achieve their fullest potential. As an educator, I am particularly optimistic about the positive impact these initiatives will have on our students, preparing them to be future-ready and successful in their chosen paths.”
Mr. Pradeep Aggarwal, Founder & Chairman, Signature Global (India) Ltd
This budget can be termed as prudent and holistic in each aspect the Government’s decision to allocate ₹10 lakh crore under the PMAY Urban Scheme, targeting 3 crore houses and key focus on rationalising stamp duty for Home buyers especially for women, underscores a robust vision for urban development and will help homebuyers would save the significant amounts, making homeownership more accessible.
At macro level sustained infrastructure impetus, reflected in the ₹11.11 lakh crore Capex allocation, we anticipate all these would create a multiplier impact and significant boost in the overall housing sector.
Additionally, a focus on rental housing in industrial parks via the PPP model, digitizing land records in cities will greatly improve transparency and ease property transactions.
Mr. Mohit Jain, Managing Director, Krisumi Corporation
Urban centers, being the drivers of growth, saw major allocation and attention in the Union Budget 2024. More homes under PMAY (U), transit development, creative redevelopment of cities, industrial parks, rental housing for industrial workers, digitization of land records, development of industrial parks and call for moderation in stamp duty, particularly for women buyers are some of the measures that will usher Indian cities towards the path of modernization, enhancing livability and enabling them as growth and employment centers. The real estate sector, as partners in this development, will play a major role in contributing towards the government’s urban vision. The increase in Standard Deduction of Rs 25,000 to Rs 75,000 will be a sentiment booster for the sector, which is on a high and expected to perform well in the near future.
Manish Shah, MD & CEO at Godrej Capital on the budget announcement.
“The 2024 budget strikes a perfect balance between short-term needs and long-term goals, laying the foundation for a resilient and thriving economy. With this budget, the government has demonstrated a strong commitment to bolstering the MSME sector, recognizing its pivotal role in the country’s economic advancement. The introduction of a new credit assessment model that utilizes digital footprints of MSMEs suggests a promising step towards improving financial access and fostering sectoral growth. Additionally, the decision to raise the Mudra loan limit and expand the TReDS platform also aims to potentially ease financial burdens and enhance operational capabilities for MSMEs.
Furthermore, the budget’s emphasis on urban housing through the PM Awas Yojana, coupled with substantial investments and interest subsidies, aims to simplify home ownership for many. These initiatives seem to reflect a thoughtful strategy aimed at enhancing financial inclusivity and bolstering infrastructure development, which are essential components for sustainable economic expansion.”
Mr. Anshul Garg, Director & CEO of Aroma AAT Basmati Rice
He thinks budgetary supplements and the government’s objective to bring down the fiscal deficit will have positive impacts on the overall agricultural sector, “The agriculture sector is content with the forward-looking budget focusing on the welfare of farmers. The INR 1.52 lakh crore budgetary supplement for the agricultural sector will help the industry to modernise through research and development. Other strategic initiatives like the digital public infrastructure, in collaboration with state governments will offer further strengthening. The introduction of the Jan Samarth-based Kisan Credit Card will help farmers in key states to finance their cultivation, safeguarding them from potential financial difficulties. However, the highlight of the Union Budget was the government’s commitment to reduce the fiscal deficit from 4.9% to below 4.5% — which will empower agri-product exporters, as we are eager to contribute more to this national growth story.”
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.
Shashank Avadhani Co-founder & CEO, Alyve Health, said:
Alyve Health welcomes the government’s decision to abolish the angel tax in the Union Budget 2024-25. This forward-thinking move will unlock significant growth potential for startups across India. By removing this financial barrier, the government has demonstrated its commitment to encouraging innovation and supporting entrepreneurs. We believe this policy change will attract more investments into early stage companies .
The budget for FY24-25 exempts three more cancer medicines from customs duty which will bring down the cost of treatment significantly. The healthcare sector is to get a ₹89,287 crore budget allocation in 2024–25, up from ₹88,956 crore in 2024-25 which will enhance healthcare infrastructure in our country.
In the Economic Survey, government has focused on the future of AI, and deep-tech startups to create opportunities for deploying AI and other cutting-edge technology in healthcare sector. This move will encourage investments in the broader deep tech space and specifically in the health tech sector.
Alyve Health remains committed to India’s healthcare mission and we will work aggressively to achieve the aim of ‘Viksit Bharat’ by enabling better healthcare delivery through advanced technology.
Deepak Chaudhary, Director, Next-Gen Media and Communications
“The 2024-25 budget marks a turning point for India’s startup ecosystem. I’m thrilled to see the government’s commitment to fostering innovation and entrepreneurship. The removal of the Angel Tax is a game-changer, opening doors for early-stage investments that are crucial for startups like ours. Equally impactful is the reduction of LTCG tax on unlisted equity to 12.5%, which will undoubtedly attract more investors to the startup arena.
These changes aren’t just numbers on paper; they’re catalysts for growth, innovation, and job creation. In the media and communication sector, where creativity meets technology, this budget provides the fuel we need to push boundaries and compete globally. It’s a clear signal that India is serious about building a robust startup ecosystem.
As we look ahead, I’m confident that these reforms will spark a new wave of entrepreneurial energy, driving our economy forward and positioning India as a global innovation hub.”
Mr.Bantwal Ramesh Baliga, Group CEO of Acquaviva.
The scheme introduced in the budget to incentivize the hiring of first-time employees is a game-changer for the manufacturing sector. By benefiting 3 million youths and their employers through direct incentives based on EPA contributions over four years, the government is not only encouraging job creation but also nurturing a skilled workforce. This initiative reflects the Modi-led NDA Government’s commitment to boosting economic growth and employment opportunities.
The budget’s announcement to prioritise the participation of women in the workforce is welcomed in sectors like hospitality and retail. This initiative aims to diversify the workforce and recognizes the contributions that women can bring to these sectors. The budget is paving the way for greater gender equality and economic empowerment within these industries.
Furthermore, the announcement to promote water supply, sewage treatment, and solid waste management projects for 100 large cities reflects an approach to infrastructure development. These initiatives will not only enhance urban living standards but also increase demand across various industries involved in construction, engineering, and environmental technologies.
Overall, the budget’s focus on incentivizing employment, supporting women’s participation in key sectors, and advancing urban infrastructure projects is set to catalyse industrial growth, create new job opportunities, and drive sustainable economic development. This forward-looking strategy positions India for long-term resilience and prosperity.
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
“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”
These expert opinions provide valuable context and a deeper understanding of the potential implications of Budget 2034. We believe these insights will be highly beneficial. We look forward to your extended support in getting the above quotes published in your esteemed publication.
Mr. Deepak Patkar, MD & CEO of SMFG Grihashakti(Formerly Fullerton Grihashakti)
“The FY25 Union Budget represents a decisive step forward in addressing India’s housing needs with the expansion of the Pradhan Mantri Awas Yojana (PMAY) to include 3 crore additional houses. This ambitious plan, supported by a proposed central assistance of ₹2.2 lakh crore over the next five years, underlines the Government’s commitment to providing quality housing for all. The introduction of an interest subsidy scheme for urban housing will make loans more affordable, enhancing access for many looking to realise their housing dreams. The Budget also emphasizes substantial investment in urban housing under PMAY 2.0, with an allocation of ₹10 lakh crore, showcasing a comprehensive approach to meeting urban housing demands.
As of now, 118.64 lakh houses have been sanctioned under PMAY-U, with 85.04 lakh already completed, reflecting significant progress. In rural areas, the PMAY-G scheme has facilitated the construction of 2.95 crore pucca houses by March 2024, with 2.94 crore houses sanctioned and 2.55 crore completed by February 2024. This highlights the Government’s dedication to improving the overall infrastructure across the country and providing improved living conditions for the Economic Weaker Section (EWS) & Low Income Group (LIG) populous, thereby boosting overall economic development.”