Mr Kuldeep Jain, Founder and CEO, Build Capital
“Many urban housing development projects would need short or mid – term financing, which can be filled up by financial institutions. This will give a fillip to India’s untapped financing market in the real estate sector. Further, the rental housing scheme for industrial workers would also accelerate rental housing projects.”
Avneet Singh Marwah, CEO of SPPL, Exclusive brand licensee of Blaupunkt TVs in India
The Union Budget 2024 demonstrates a strong commitment to job creation in the manufacturing sector. By providing targeted incentives for EPFO contributions, the government aims to generate significant employment opportunities for both employers and the 30 lakh young people entering the workforce. This initiative reflects a strategic approach to meeting employment needs in our rapidly evolving economy.
With a substantial allocation of INR 2 lakh crore towards skilling programs, the budget emphasizes equipping our workforce with the skills necessary to succeed in a competitive global market. The focus on Micro, Small, and Medium Enterprises (MSMEs) is further supported by the introduction of a credit guarantee scheme, designed to enhance the financial stability and growth potential of the vital enterprises.
Additionally, the budget’s focus on the middle class is evident through tax relief measures, such as an increase in the standard deduction for salaried individuals and additional benefits under the new tax regime. These measures aim to boost disposable income and stimulate consumer spending, thereby fostering economic growth.
In summary, the Union Budget 2024’s initiatives in the manufacturing sector represent a forward-thinking strategy to create sustainable jobs, enhance skills, and support MSMEs. These measures are poised to play a crucial role in empowering our youth, strengthening the middle class, and guiding the nation towards a prosperous future.
Prerna Kalra, Co-founder and CEO Daalchini Technologies
The Union Budget 2024 marks a significant and encouraging shift towards inclusive and equitable growth. The budget’s emphasis on job creation through EPFO contribution incentives promises to generate opportunities for 50 lakh youth, including a substantial number of women. This is a pivotal moment, opening doors for greater female participation and advancement in the workforce.
A new centrally sponsored scheme to skill 20 lakh youth over the next five years, coupled with the upgrade of 1,000 ITIs to offer industry-relevant courses, will prepare a workforce ready for emerging sectors. This initiative is particularly valuable for women seeking to acquire new skills and excel in various fields.
Moreover, the facilitation of term loans for machinery purchases is a welcome development for entrepreneurs. This support will help scale up operations, invest in innovative technologies, and boost productivity, driving growth and success for businesses.
The allocation of over 3 lakh crore for schemes benefiting women and girls is especially inspiring. It highlights a robust commitment to supporting women entrepreneurs and addressing their needs across various sectors. This investment in women’s empowerment will foster entrepreneurship and contribute to broader socio-economic development.
Overall, the Union Budget 2024 reflects a progressive vision for India, emphasizing job creation, skill development, and inclusive growth.
Rajat Grover, Founder & CEO, Elite Marque
The Budget 2024 introduces new opportunities for vegetable production and its supply chain. By incentivizing innovation and streamlining the market entry process, this initiative aims to boost production and improve the efficiency of distribution networks. Startups in agri-marketing and logistics will play an important role in connecting farms to homes, using technology to optimize supply chains and ensure fresh produce reaches consumers efficiently.
Due to the hike in global interest rates, investments in Indian agritech startups fell by 45% between FY 22 and FY 23. With this amendment, we expect increased visibility from VCs and investors, seeing the government take initiatives in this space. More agriculture-focused incubation centers should emerge in Tier 2 and Tier 3 cities, providing startups with direct benefits in building technology, mentorship, grants, and R&D. This will also encourage talented individuals from these regions to contribute to the agritech sector, fostering innovation and growth.
The MSME credit scheme will provide vital financial support to new ventures. With easier access to credit, startups can invest in infrastructure, technology, and skilled manpower, accelerating their growth and contributing significantly to economic revitalization. This approach not only supports scalability but also strengthens the economy by fostering a competitive and resilient MSME sector. We will see more business initiatives from Tier 3 and Tier 4 cities, the scheme will attract more talented individuals from these areas, enriching the startup ecosystem with diverse and dynamic talent.
Ratan Singh Sehgal, MD, Hybon elevators & escalators Pvt Ltd.
The budget’s focus on developing cities as ‘Growth Hubs’ through economic and transit planning is an important initiative. By partnering with states and implementing town planning schemes, this approach aims to upgrade urban infrastructure and stimulate economic development at the micro level. The expansion of the tourism corridor will benefit the hotels and restaurant industry. Increased construction of hotels, motels, and tourism spots will expand global footprints and stimulate local economies. This will lead to job creation and attract investments from corporates into these states. The government has also planned to invest ₹26,000 crore in Bihar, which will also see improvements in infrastructure such as airports and highways.
Job creation and manufacturing in Tier 3 and 4 cities will attract and retain local talent, fostering economic growth and development. The government’s plan to invest in these regions, including the Amritsar Kolkata Industrial Corridor and the development of an industrial node at Gaya, aims to generate economic opportunities and contribute to the vision of Viksit Bharat. Infrastructure development at the micro level will enhance connectivity and create a conducive environment for businesses to thrive, further driving economic activity and job creation.
Union Budget 2024 represents an approach to addressing India’s urban housing needs and supporting economic growth. The allocation of ₹10 lakh crore for Urban 2.0 is notable, with plans to construct 1 crore (10 million) houses for the urban poor, alongside an additional 3 crore houses under the Pradhan Mantri Awas Yojana (PMAY). This commitment will improve living conditions across both rural and urban areas, reflecting the government’s dedication to enhancing housing accessibility and quality.
In the manufacturing sector, the introduction of the Credit Guarantee Scheme for MSMEs, a new assessment model for MSME credit, and the enhanced limit for Mudra Loans under the ‘Tarun’ category are significant measures. These initiatives will provide support to small and medium enterprises, facilitate job creation, and strengthen the economic foundation. Additionally, Scheme B, which offers incentives for EPFO contributions for first-time employees and employers for the first four years, is expected to benefit 30 lakh youth, further boosting employment.
Overall, the Union Budget 2024 sets a path towards a prosperous and inclusive future for India, with targeted investments and strategic initiatives aimed at enhancing economic opportunities across the country.
Dr. Gautam Kanodia, Co-Founder of Kanodia Group
“The government’s strategic focus on infrastructure, with an allocation exceeding INR 11.11 lakh crore, approximately 3.4% of India’s GDP, is highly commendable. This significant investment is set to not only enhance the nation’s infrastructure but also generate numerous employment opportunities, particularly within housing projects. Such initiatives are poised to catalyze economic growth and elevate living standards, The government’s commitment to inclusive development is clearly reflected in these provisions.
Sehul Bhatt, Director-Research at CRISIL Market Intelligence and Analytics
“Government estimates an investment of ~Rs 10 lakh crore under the Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0 for an additional 1 crore affordable houses over the next 5 years. The central assistance of Rs. 2.2 lakh per house announced in the Budget is higher than the Rs. 1.5 lakh per house disbursed during the last 8 years. Three crore additional houses planned under the PM Awas Yojana in rural and urban areas are expected to support cement demand.
Allocations under PMAY-U and Pradhan Mantri Awas Yojana-Gramin in the fiscal 2025 budget are higher than the revised estimates of fiscal 2024 by ~36% and ~70%, respectively. This will translate to ~20 million tonnes of cement demand in the current fiscal, or 4-6% of pan-India demand as of FY24. Further, allocations under PMAY-U and PMAY-G in the fiscal 2025 budget are ~15% and ~8% higher than the allocations in the interim budget.
Under the Pradhan Mantri Gram Sadak Yojana, the launch of phase-IV to provide all-weather connectivity to 25,000 villages is also a positive development for the sector and will support incremental cement demand. Given housing forms 55-60% of total cement demand, the impetus to affordable housing through the Pradhan Mantri Awas Yojana will keep cement demand on track for 7-8% growth in the current fiscal.”
Mr. Pradeep Bakshi, MD & CEO, Voltas Limited
“The Union Budget 2024 reflects a forward-thinking approach that will significantly benefit the consumer durables industry and bolster our efforts towards sustainable development. The full exemption of customs duties on 25 critical minerals, including lithium, copper, cobalt, and rare earth elements, is a substantial boost for sectors reliant on these materials, such as high-tech electronics and renewable energy. This policy will not only enhance the availability of these essential resources but also stimulate domestic processing and refining capacities, driving innovation and reducing costs.
Furthermore, the emphasis on energy transition, including the expansion of exempted capital goods for solar panel manufacturing, aligns well with Voltas’ commitment to sustainability. While the non-extension of exemptions for certain solar components reflects a move towards encouraging domestic manufacturing, it also underscores the need for continued investment in domestic production capabilities.
The budget’s focus on substantial investment in manufacturing, presents a promising outlook for the industry. Voltas is optimistic about the positive impact of these policies on the electronics sector and looks forward to contributing to these ambitious goals.”
Mr. Rajiv Gupta, Managing Director, Wave Group
The Budget 2024-25 is very encouraging for the real estate sector, focusing on infrastructure development in rural and urban areas. The thrust on building three crore additional housing under the PM-AWAS yojana is an essential step in bridging the housing gap for the poor and middle class. The Rs 10 lakh crore overall allocation to urban housing will bolster the growth momentum. The suggestion to state governments to lower stamp duties, particularly for properties purchased by women, will undoubtedly boost sales. The budget lays the foundation for sustainable real estate growth, promoting cities as growth hubs of new India.
Dr. Atish, Director of JAGSoM, on the Union Budget’s focus on skilling, education, and MSMEs
“The Union Budget 2024-25 demonstrates a strong commitment to education, skill development, and entrepreneurship, which are crucial for India’s economic growth and global competitiveness. The allocation of ₹1.48 lakh crore for education, employment, and skilling is a significant step towards building a knowledge-based economy.
The revision of the Model Skill Loan Scheme and the introduction of e-vouchers for higher education loans are welcome moves. These initiatives have the potential to significantly increase access to quality education and address the growing demand for skilled professionals in India’s expanding digital economy.
The ambitious internship program targeting 1 crore youth over five years will go a long way in bridging the skill gap. This initiative can enhance graduate employability. As per the World Economic Forum, 50% of all employees will need reskilling by 2025 due to the adoption of technology. This internship program could play a vital role in preparing our workforce for future job markets.
The Anusandhan National Research Fund, with a financing pool of ₹1 lakh crore, is a crucial step towards boosting India’s research capabilities. This is particularly important as India aims to increase its R&D expenditure from the current 0.7% to 2% of GDP.
The focus on MSMEs through the credit guarantee scheme is commendable. MSMEs contribute about 30% to India’s GDP and employ over 111 million people. Strengthening this sector will have far-reaching economic impacts.
As educators, we are encouraged by these initiatives. They align with the need for industry-relevant education, industry exposure, and innovation. However, the budget could have addressed issues like the facilitation of International faculty teaching in India and thus help reduce the no. of Indian students going abroad for Higher Education which currently stands at 1.5 million a year.
Also, a social stock exchange for private universities could have enabled fund flow, in a sector having limited access to funding.”
Mahesh Fogla, Executive Director, Patel Integrated Logistics Limited
“The budget’s initiatives to reduce stamp duty will lower costs for warehouses and other facilities, boosting infrastructure development. Increasing Mudra loan limits from 10 lakhs to 20 lakhs will enhance support for MSMEs, fostering sustainable growth. The setting up of an Integrated Technology Platform to improve the outcome under the Insolvency and Bankruptcy Code (IBC) will facilitate the recovery of outstanding for operational creditors too. Furthermore, discouraging excessive speculation activity in the stock market will redirect energies towards other economic activities, contributing to a more sustainable growth of the economy.”
Srivardhan Khemka, Director, Sanjivani Paranteral
“The Finance Minister has shown a strong commitment to facilitating higher participation of women in the workforce in the Budget 2024. As a company with 60% women in our workforce these measures will undoubtedly create a more supportive and inclusive environment for women, enabling them to contribute more effectively to the economy. Additionally measures such as organizing women-specific skilling programs and promoting market access for women, SHG enterprises is a step in the right direction. By focusing on skilling and market access, the government is empowering women to not only enter but thrive in the workforce. We look forward to supporting and participating in these initiatives, which will enhance the capabilities of our female employees and, in turn, drive the overall growth and success of our industry.”
Mr Deepak Gupta, General Partner, WEH Ventures
“To bolster the Indian startup ecosystem, the proposal to abolish the so-called Angel Tax for all classes of investors is a significant step forward. The Angel Tax has long been a point of contention, discouraging early-stage investments due to the perceived risk and additional financial burden it imposed. Eliminating this tax can foster a more conducive environment for startups, encouraging more investors to participate and support innovative ventures.
Additionally, the hike on Long-Term Capital Gains (LTCG) for unlisted equities could be net positive for investors. By narrowing the tax rate delta between listed and unlisted equities, this move can create a more level playing field and attract more investments into venture capital and private equity. This alignment can benefit the broader investment landscape, making it more attractive for investors to diversify into unlisted equities, thereby providing crucial funding to startups and growth-stage companies.
Overall, these measures can drive more investment into the Indian startup ecosystem, providing the necessary capital for innovation and growth while simplifying the tax landscape for investors.”
Rajat Mehta, Chairman, JITO Incubation and Innovation Foundation (JIIF)
“The decision to abolish Angel Tax for all classes of investors is a positive step towards fostering a more supportive environment for startups in India. It aims to reduce financial hurdles for early-stage investments and boost investor confidence, which is crucial for stimulating entrepreneurial growth and innovation. This move signals India’s commitment to nurturing startups and attracting investments, potentially leading to job creation and economic expansion in the long run. Additionally, the ₹1,000 crore venture capital fund for the Space Economy highlights the government’s proactive approach in supporting strategic sectors and encouraging entrepreneurial ventures.”
Shahzad Nathani, Head of Operations & Partnerships, Shardeum
This is a commendable step by Finance Minister Nirmala Sitharaman towards upskilling and empowering the youth over the next five years. Blockchain, web3, and other emerging technologies are crucial in this initiative as they represent the future of industry and commerce. By integrating these technologies into our skilling programs, we ensure that our youth are not only prepared for today’s job market but are also equipped to drive innovation and efficiency in the industries of tomorrow. These technologies provide transparency, security, and decentralization, which are essential for fostering trust and driving economic growth in the digital age. Furthermore, this initiative will make the youth internship-ready for some of the top companies in India, contributing to a Viksit Bharat.”