Industry Leaders’ Post-Budget Reactions and Future Projections

Explore Insights from Top Industry Leaders on the Latest Budget Announcement. Gain exclusive perspectives as prominent figures across diverse sectors delve into the potential impacts, opportunities, and challenges posed by the new financial policies. Uncover how this budget will influence the economic landscape and learn about strategies businesses can implement to navigate these changes adeptly.

Industry Leaders’ Reactions to the Budget

Anjali K Gupta, Director at Next-Gen Media and Communications “As a woman entrepreneur, I’m encouraged by the 2024-25 budget’s focus on empowering women and youth. The emphasis on working women’s hostels and the proposal to lower stamp duty for women are significant steps towards improving our economic participation.

The new internship scheme for 1 crore youth, with its financial support, is exciting. Combined with the 1.48 crore allocation for education and employment, this should\ create a skilled workforce. These measures align with my business goals and foster an inclusive economy.

They’ll provide access to fresh talent and potentially lower costs for business expansion. I’m optimistic about leveraging these opportunities for my enterprise’s growth and contributing to overall economic development. These initiatives are positive steps towards a more equitable business environment.”

Mr. Sandeep Ahuja, MD, Atmosphere Living: Today’s Union Budget announcements have generated a positive buzz in the real estate sector. The direction to reduce stamp duty for women is expected to increase property ownership among women, promoting financial independence and gender equality.

This initiative can boost demand in the real estate market, stimulating economic activity. Additionally, it encourages joint ownership, leading to more equitable property distribution within households. Also, along with announcement of developing a National Industrial Corridor is likely attract investments, create job opportunities, and enhance the overall economic landscape.

The emphasis by the FM on connectivity will surely lead to increased infrastructure development. New corridors in all modes that are in development and will be crucial for India’s growth and development. Finance Minister Nirmala Sitharaman announced significant changes in the Union Budget concerning property sales.

The indexation benefit, which allowed property sellers to adjust the purchase price for inflation using the Cost Inflation Index (CII) issued by the Income Tax Department, has been removed. This means there would be equitable taxed and ensure transparency.

In addition, the rate of long-term capital gains tax on property sales has been reduced from 20 percent to 12.5 percent. These changes are likely to have a substantial impact on the real estate market, influencing the way property transactions are taxed.

The digitization of land records and other technological reforms within the regulatory framework will greatly improve transparency in the real estate sector. These announcements, along with a focus on the affordable housing segment, are poised to drive growth and create a more robust and transparent real estate market in India.”

Mr. Tushar Choudhary, Founder &  CEO, Motovolt Mobility Pvt. Ltd: “We commend the Union Budget 2024-25 for its announcement to fully exempt customs duties on 25 critical minerals, including lithium, essential for EV battery manufacturing.

This move is expected to significantly reduce battery costs and bolster domestic manufacturing capabilities. Furthermore, the incentives for hiring first-time employees are a welcome initiative that will stimulate job creation in the manufacturing sector.

This initiative will not only help build a skilled workforce but also support our expansion plans by ensuring we have the talent needed to drive innovation and productivity.The ‘Purvodaya’ plan is another robust initiative that underscores the government’s commitment to fostering growth and innovation across the eastern states.

By reducing import costs and encouraging regional development, this plan represents a significant step forward for our industry and the economy as a whole. Additionally, our products in the micro-mobility segment will benefit greatly from these measures, enabling us to offer more affordable and efficient solutions to consumers.

This will particularly enhance our ability to cater to the urban and semi-urban markets, providing sustainable and cost-effective transportation options.Overall, these measures reflect a forward-thinking approach that will benefit the entire EV ecosystem, from manufacturers to consumers, and contribute to sustainable economic growth.

By addressing critical supply chain issues and promoting regional development, the government is laying a strong foundation for the future of electric mobility in India. We are optimistic that these initiatives will drive significant advancements in technology and infrastructure, ultimately leading to a cleaner, greener, and more prosperous nation.”

Suman Bannerjee, CIO, Hedonova: “The Union Budget 2024, while aiming to balance growth and equity, presents a complex mix of policies with varied impacts. The revised income tax slabs, offering relief for the middle class, are countered by significant changes in capital gains taxation.

Short-term capital gains tax has been increased to 20%, and long-term capital gains tax is now 12.5% for specific assets, potentially discouraging investment. Additionally, the hike in Securities Transaction Tax (STT) from 0.1% to 0.2% for equity transactions and increases for futures and options trading could further dampen market activity and trading volumes.

Substantial allocations for infrastructure, with a capex outlay retained at Rs 11.1 lakh crore, and job creation initiatives, including a Rs 2 lakh crore allocation over five years, signal a strong commitment to economic stimulation.

However, the efficacy of these measures depends heavily on effective implementation and the actual absorption of funds. The budget also emphasises women-centric schemes, with Rs 3 lakh crore allocated, and agricultural resilience, with Rs 1.52 lakh crore for agriculture and allied sectors, reflecting an inclusive growth agenda.

Despite these initiatives, the fiscal deficit target of 4.9% of GDP raises concerns about fiscal prudence and debt sustainability, particularly in a global economic environment fraught with uncertainties. The commitment to lowering duties for properties purchased by women and setting up industrial parks indicates a push towards socio-economic equity, but the actual impact remains to be seen.

Ultimately, the Budget’s success hinges on efficient execution and the government’s ability to navigate external economic challenges while achieving its ambitious domestic goals.”

Manish Shara, Co-founder & CEO, Zet Fintech: “The budget has touched all the key sectors of our economy and will drive growth and ease of doing business. The focus on skilling, lending for MSME, abolition of ANGEL Tax and inclusive economic development is in line with the government’s aim of Viksit Bharat.

The government’s decision to simplify the new tax regime is also a welcome move that will provide relief to 40 millions salaried professionals and pensioners. Raising the limit of standard deduction to Rs.75,000 and increasing the deduction of family pensions from Rs.15,000 to Rs.25,000 is aimed at encouraging investment and promoting sustainable economic growth.

However, giving relief to the salaried class in the old regime would have been a welcome move. The reduction of TDS applicable (under section 94H) on agent earnings from earlier 5% to 2% is also a positive move to boost agents’ earnings.”

Anubhav Agarwal, MD and CEO, BN Group: “This budget was in line with our projections, with a primary emphasis on increasing productivity and creating yield varieties that are resilient to climate change.

The plan to attain Atma Nirbharta for oil seeds, including soybean, sunflower, sesame, groundnut, and mustard, will not only reduce import dependencies but also open up new opportunities for growth and expansion in domestic markets.

Additionally, this means greater availability of domestically produced oils, potentially leading to more stable prices and higher quality products. Customers can anticipate a more consistent supply of cooking oils, which are vital and indispensable in Indian homes and support both economic stability and overall food security.”

Mr. Neeraj Lal, COO & Unit Head, Apollo Hospitals, Gujarat Region: “The Union Budget introduces significant measures to bolster the healthcare sector, with an emphasis on increased spending and public health initiatives.

Notable measures include substantial funds for upgrading healthcare infrastructure, particularly in rural areas, and expansion of digital health services such as telemedicine and electronic health records. The budget also prioritises preventive healthcare through new public health schemes and vaccination programs, along with significant investments in medical R&D.

Enhanced training and development programs will address the shortage of healthcare professionals, while expanded insurance schemes and subsidies will make healthcare more affordable for the underprivileged.

Additionally, increased funding for mental health initiatives underscores the government’s commitment to comprehensive healthcare. Overall, the budget’s healthcare initiatives are poised to create a more inclusive, effective, and efficient healthcare system.”

Mr. Rayan Malhotra, founder and CEO of NeoFinity: “The Union Budget presented by Finance Minister Nirmala Sitharaman demonstrates a forward-thinking approach that will significantly boost India’s digital economy.

The focus on simplifying FDI rules and promoting using the Rupee for overseas investments is a strategic move that will attract more international capital, fostering innovation and growth in the fintech sector.

This is expected to lead to developing new technologies and services, thereby enhancing the digital economy. The rationalisation of GST will further streamline compliance, benefiting consumers and businesses by reducing tax incidents and simplifying processes.

The new tax rate for long-term capital gains and the exemption limit adjustment provide a balanced investment approach, encouraging more participation in the financial markets. However, the most significant relief comes from abolishing the angel tax, which paves the way for increased entrepreneurial activity and innovation.

This measure alone is a beacon of hope for startups, promising a brighter future for entrepreneurship in India. Overall, the budget’s emphasis on land, labour, capital, and entrepreneurship sets a solid foundation for India’s digital future, driving sustainable economic growth and positioning the country as a global leader in the economic space.”

Mr Piyush Goel, Founder & CEO of Beyond Key: “The Government has earmarked Rs. 1.48 lakh crore for the education, jobs, and skill development sectors in Budget 2024. This substantial allocation reflects a strong commitment to fostering growth and development in these crucial areas.

Looking ahead, we hope for increased funding for initiatives that directly benefit students and the broader community. Key priorities include enhancing digital infrastructure to prepare students for the digital era, fostering vocational training and skill development programs, and investing in teacher professional development.

Furthermore, forging robust partnerships with local industries will be crucial. Such collaborations can bridge the gap between education and employment, ensuring that students are well-prepared for the job market. By aligning educational programs with industry needs, we can create a more dynamic and responsive IT or technology sector, allowing employers to generate more job opportunities.

Overall, Budget 2024’s focus on education, jobs, and skill development is a positive step towards building a brighter future for the nation. It underscores the importance of investing in the Tech industry and providing students with the tools and opportunities they need to succeed.”

Siva Balakrishnan, founder and CEO of Vserve: “The Union Budget presented by Finance Minister Nirmala Sitharaman is a progressive step towards bolstering the digital economy and fostering growth across various sectors.

The reduction of TDS for e-commerce operators from 1% to 0.1% is a welcome move that will significantly ease cash flow for businesses, encouraging more participation in the e-commerce space. The proposal to develop DPI applications at a population scale in credit, e-commerce, law and justice, and corporate governance demonstrates a forward-thinking approach to leveraging technology for inclusive growth.

While the taxation on unlisted bonds, debentures, debt mutual funds, and market-linked debentures at slab rates may pose some challenges, the overall focus on digital infrastructure and ease of doing business provides a solid foundation for future growth. This budget reflects a balanced approach to fostering innovation and ensuring regulatory compliance.”

Mr Rishi Anand, Managing Director and CEO of Adhar Housing Finance Limited: “The proposed Union Budget clearly showcases the government’s vision in making housing for all a success with PMAY 2.0.

The proposed allocation of 3 crore additional houses with 2 crore in rural, tier 3 & 4 and 1 crore in urban areas will help in fulfilling the dreams of home ownership for many. The government has further reiterated its priority on urban development through two major announcements – a) The investment of Rs. 10 lakh crore that will also include a central assistance of Rs. 2.2 lakh crore and b) Encouraging the state governments charging high stamp duties to lower their stamp duty rates for all and further lowering duties for properties purchased by women.

In addition, the proposal to provide interest subsidy to facilitate loans at affordable rates will also boost home ownership. I would also like to lay emphasis on the land centric initiatives that government has taken such as the land record digitalization and unique land parcel identification number in tier 2, 3 & 4.

This will be a big boon for the affordable housing finance sector as it will help in resolving the challenges faced by the industry during property identification especially in the hinterland.”

Prashant Bhonsle, Founder of Kuhoo Edufintech: “Kuhoo applauds the government’s initiative to provide a 3% interest subvention on loans up to Rs 10 lakh for higher education. This will significantly reduce the financial burden on students, making quality education more accessible.

Moreover, the new centrally sponsored scheme under the Prime minister’s package for skill development, in collaboration with state governments and industry, is a commendable step. Over the next five years, this will equip students with essential skills, enhancing their employability.

The allocation of Rs 1.48 lakh crore for education, employment, and skilling in the Union Budget reflects a strong commitment to building a robust and inclusive education system. At Kuhoo, an education loan platform, we are dedicated to supporting these transformative initiatives and empowering students to achieve their educational and career goals.”

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. Shachindra Nath, Founder and Managing Director, UGRO Capital said, “Today’s Union Budget is a remarkable step forward for MSME credit. At UGRO Capital, we believe MSMEs play a vital role in our economy, particularly in addressing employment challenges in a country of our size.

The budget’s focus on MSMEs addresses these issues head-on. Increasing the limit of MUDRA loans, the credit guarantee scheme for capital expenditure and machinery purchases, and the emphasis on public sector banks’ credit assessment and solving the problem of MSME which comes under distress are all groundbreaking measures.

These announcements collectively signify a significant focus on MSMEs, empowering lending institutions in priority sector to provide more credit and continue building our nation. We are hopeful that the fine print will favor lending institutions dedicated to MSMEs, allowing us to continue our mission of national development.”

Ankur Mittal, Cofounder, Inflection Point Ventures: “While we have to still read the complete change on the abolishment of angel tax but on the face of it, this action has the ability to bring lot of regulatory clarity which generally is appreciated by the investor communities across the world. This should help founders looking to raise capital both in domestic and international markets.”

N D Mali, Founder, KDM: “The budget will steer India towards a Viksit Bharat by 2047 through a slew of measures that boost consumption. Tax reduction of up to 15% on mobile phones, mobile PCBs, and chargers is expected to boost domestic manufacturing and benefit customers.

The budget focus on employment, skilling and middle class will spur consumer spending, which, in turn, would stimulate economic growth. The fiscal prudence of 4.9% and increased outlay of capex will put more money in the hands of people and general consumer sentiment will increase. The budget will further charge the economy of Bharat.”

Sonica Aron, Founder Marching Sheep: “The post-budget reaction to Budget 2024 in employment and skilling sectors has been notably positive. The government’s substantial ₹10,000 crore allocation for skill development reflects a strong commitment to preparing a workforce aligned with modern economic demands.

Support for MSMEs through financial incentives and simplified credit is expected to boost job creation. Nirmala Sitharaman introduced a PM Package of five schemes with a ₹2 lakh crore allocation, aiming to enhance employment and skilling efforts. This year, ₹1.48 lakh crore is earmarked for education, employment, and skilling. The Employees’ Provident Fund Organisation (EPFO) will see strengthened capabilities and outreach, and a new scheme will offer internships to 1 crore youth across 500 top companies.

We had hoped for allocations and incentives for safety provisions and accessible infrastructure to boost the inclusion of women and persons with disabilities in workforce. These initiatives aim to bridge the skills gap, drive economic growth, and build a resilient, future-ready workforce.”

Mr. Praneet Mungali – Educationist and Trustee, Sanskriti Group of Schools: “The allocation of Rs 1.48 lakh crore for education, employment and skilling is a positive step. Investment in education is the lowest common denominator for solving the majority of India’s long term challenges. Impetus on skilling the youth of our country will be a huge leap towards shaping the future.

Also, the loan of Rs 10 lakh for higher education in domestic institutions is a welcome move improving the quality of human capital available for the nation. It augurs well for the Indian economy that we are taking concrete steps for investing in the future of our nation – our children and youth.”