West Bengal CM Mamata Banerjee
Credit: PTI File Photo
Union Budget 2024 | Making a record for any Finance Minister, Nirmala Sitharaman will be presenting her 7th Union Budget on July 23, 2024 under the Modi 3.0 government. While inflation has burnt a hole in the pockets of 'aam janata', will this Budget spell relief for Indians? Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.
Demand for creation of new NBFC-PSL category to boost MSME sector
The creation of a new category of Non-Banking Financial Companies (NBFCs) dedicated to priority sector lending (PSL) to support the growth of MSMEs features among the key demands by business leaders in the forthcoming Union Budget.
Finance Minister Nirmala Sitharaman will present the Union Budget in Parliament on Tuesday.
Ahead of budget presentation, Congress demands legal guarantee for MSP
A day before the presentation of the Union Budget, the Congress on Monday said the Centre must make three important announcements of making MSP a legal guarantee, fix MSP on the basis of the Swaminathan formula and establish a permanent commission to monitor the implementation of farm loan waivers.
Industry status, GST main concerns for real estate developers in Noida
Hoping for 'nuanced approach' to real estate woes, the developers seek the government's support beyond fiscal incentives, with the upcoming Budget focussing on enhancing transparency and efficiency through a robust regulatory framework, streamlined approvals process.
High hopes as Finance Minister Nirmala Sitharaman set to present seventh Budget
When Finance Minister Nirmala Sitharaman rises to present the 2024 Union Budget at 11 am on 23rd July, she may perhaps be mindful of the record she will set: presenting seven consecutive budgets.
That, however, will be a secondary consideration. As the Narendra Modi government finds itself with a greater fiscal breathing space than previously expected, the first budget of its third term is a much anticipated one among industry, markets and citizens.
Here is what regular Indians feel or expect from the Budget
Economic survey disconnected from reality, no improvement in economic fundamentals, Left parties say
Left parties on Monday said the Economic Survey presented by the government is "disconnected" from reality and issues like price rise, and unemployment have not been addressed.
Read more
This budget is based on PM Modi's mantra of Sabka Saath Sabka Vikas, says MoS Finance Pankaj Chaudhary
Last year our GDP growth rate was around 6.5%, and this time as well, the economic survey suggests around 7% growth rate, says Rikant Pitti, co-founder of EaseMy Trip
Rikant Pitti, co-founder of EaseMy Trip.
Credit: X/@ANI
This year's budget will be beneficial for all, it will be for the people of the country, says MP Deputy CM Jagdish Devda
No direction in Budgets presented in the last 10 years. This indicates that the economy isn’t in a healthy situation, says AAP MP Sandeep Pathak
They need money to support the rich people who have failed in their industrial process. That is what this budget is for, and this government is for, says DMK leader TKS Elangovan
Delhi's share of financial assistance should increase... The funds supposed to be allotted to the Punjab government that has been put on hold, need to be released: AAP MP Sandeep Pathak
We expect that this budget will be proven to be a milestone in the journey of Viksit Bharat, says Uttar Pradesh Finance Minister Suresh Kumar Khanna
I hope FM will provide some relief from rising inflation and unemployment, says Shiv Sena (UBT) MP Priyanka Chaturvedi
Will this budget be for some selected friends of PM Modi like the previous budget, this is what we are waiting for, says Congress MP Pramod Tiwari
I hope that the Budget will face the country's economic realities, says TMC MP Saugata Roy
Will MSP be assured to farmers? Will anything be done for employment and small businesses? asks Congress MP Pramod Tiwari
Common people need ‘roti, kapda aur makaan’. Petrol price is getting very high. Prices of food items should be reduced, says a passenger at Vijayawada Railway Station, Andhra Pradesh
One of the things that the government may announce is either a SET rollback or a reduction in LTCG tax or a rollback, says a man outside Mumbai's BSE building
The budget will be a journey of resolve to take the country on the path of development and progress, says Union Minister Jyotiraditya Scindia
If they (PM govt) really want to do something, then first of all they should immediately release the money for Punjab's Rural Development Fund and National Health Mission, which is more than Rs 8,000 crores, to the state government, says AAP MP Malvinder Singh Kang
Common people not getting any benefits from the Budget. The Modi govt is always protecting the corporates, says Congress MP K Suresh
Resolution of PM Modi's government is India should become self-reliant. This time to the budget has been announced in the same format, says Union Minister Gajendra Singh Shekhawat
No expectation from PM Modi and Nirmala Sitharaman's Budget, says TMC MP Dola Sen
As India is the fastest growing economy in the world, the Budget will be according to that, says Union Minister Pralhad Joshi
We have policies of long term, stable tax regime, so, we are not expecting changes in corporate but it will be welcomed, as per the markets, if the limit of tax break is raised, says markets expert Sunil Shah.
PM will help the 'crorepatis' who are close to him by budget, says Congress' Gaurav Gogoi
I can leak the budget of Delhi now, says AAP MP Sanjay Singh
We hope that this budget starts thinking about the poor people, says Congress MP Manickam Tagore
They might do something new since this is the eleventh Budget, but I don't expect anything. We don't have much hope, says Samajwadi Party MP Akhilesh Yadav
I hope there will be an announcement to provide employment to youths and to scrap Agniveer scheme, says Congress leader Tika Ram Jully
People are waiting to see if the Budget will bring MSP for farmers. The youth will wait to see if there will be any facilities for the 'Agniveers, says AAP MP Sanjay Singh
There is no hope for the last 10 years, we kept listening only to the slogans. Even today there will be mere 'jumlas'... There is no hope from this government, says TMC MP Kirti Azad
Over the years, we have learnt to not have high expectations from this government's budgets. We will have to see what they come up with, says Congress MP Shashi Tharoor
We expect that Delhi will get Rs 20,000 crores. We have demanded Rs 10,000 crore for infrastructure and Rs 10,000 for MCD, says Delhi Minister Atishi
I expect that the farmer loans are waived, and that MSP is made a legal guarantee, SAD MP Harsimrat Kaur Badal
We think the Budget needs to address the most important thing…the issue of expanding economic fundamentals and improving the quality of people’s lives, says CPI(M) leader Sitaram Yechury
This budget will cater to all sections of the society. Guarantees of the Modi government and all our election promises will be fulfilled, says Union Minister Anupriya Patel
Youth, women, farmers, unemployment, and inflation are the major issues, says TMC MP Shatrughan Sinha
What would be the reality of the budget and how they are going to implement will be the biggest question and the challenge for the government, says Congress MP Jebi Mather
This Budget will be foundation for ‘Viksit Bharat’ or developed India by 2047, which will primarily focus on poor, youth, women and farmers, says PHDCCI Executive Director Dr Ranjeet Mehta
How have they prepared a budget when they don't even know how many people there in the country are? asks TMC MP Sushmita Dev
If we won't get our share of the Budget then we will put forward our views and protest against it, says Azad Samaj Party (Kanshi Ram) MP Chandra Shekhar Aazad
Budget a tight slap on them (opposition) by the Central Govt, says Bihar Minister Dilip Jaiswal
Rs 26,000 crore allotted to Bihar is a 'jhunjhuna', says RJD leader Rabri Devi
It's obvious to have expectations from the Union Budget, says JDU leader Neeraj Kumar
This budget has nothing and is merely misleading, says UP Congress President Ajay Rai
We are happy and welcoming the budget announcement by Union Finance Minister Nirmala Sitharaman, says TDP leader Somireddy Chandramohan Reddy
This is a 'kursi bachao' budget, says TMC MP Kalyan Banerjee
Wide-ranging areas have been covered in this Union Budget, says Hero MotoCorp's chairman, Pawan Munjal
Would like to congratulate FM Nirmala Sitharaman whose intentions to control inflation are visible, says MP CM Mohan Yadav
Members of Parliament from Punjab protest alleging Punjab ignored in allocation of funds in Union Budget 2024
No mention of MNREGA. On job creation, a token gesture was made. I welcome only one provision which is abolishing of tax on angel investors, says Congress MP Shashi Tharoor
Dream budget for all sections especially for youth and women... Announcements for skilling and employment generation are historic... Why is the opposition rattled, says Union Minister Kiren Rijiju
Budget laid by FM under leadership of PM Modi will be helpful in formation of modern India, says UP Deputy CM Brajesh Pathak
Budget has more or less copied the Congress manifesto, says Congress MP Manickam Tagore
Till the farmers' issues are resolved and employment is ensured for the youth, the people will not benefit, says SP chief Akhilesh Yadav
Government brings in schemes but does not pursue them... Govt does not want to take any steps to control inflation, says SP MP Dimple Yadav
Govt has done the work of giving strength to the common people of the country. Stress has been given to job creation, employment generation, the private sector, and FDI, says MoS Civil Aviation Kinjarapu Rammohan Naidu
I would give 10/10 to this Budget. Very focused Budget for employment generation and with focus on infrastructure development, says Ashish Chauhan, CEO of NSE
Relief given on medicines of cancer or other life-saving drugs is praiseworthy, says TMC MP Shatrughan Sinha
This budget is a balanced one, having four pillars- women, youth, farmers, and poor, says Union Minister Giriraj Singh
Narendra Modi's government is of 'double lies' instead of 'double engine', says MP Congress president Jitendra (Jitu) Patwari
This budget has catered to the needs of all sections of the society and all sectors of the economy, says BJP MP Ravi Kishan
Every sector from agriculture, rural development, education, healthcare has been kept focused in the budget, says Union Minister Jyotiraditya Scindia
It's a promising budget, taking care of the middle class, says BJP MP Suresh Gopi
I thank the FM and Centre for the announcements made for Odisha to further promote and develop its sector, says Odisha Deputy CM Pravati Parida
They have also taken some elements from our manifesto, especially the apprentice scheme, says Congress MP Karti Chidambaram
Budget is dedicated to the women, the youth and the farmers, says UP Deputy CM K P Maurya
It should be called 'PM Sarkaar Bachao Yojana', says Shiv Sena (UBT) MP Priyanka Chaturvedi
Relief fund has been promised for Himachal Pradesh. We are very happy with the budget, says BJP MP from Mandi, Kangana Ranaut
This budget has paid maximum emphasis on job creation, says BJP MP Sukanta Majumdar
Very happy day as Bihar has got the financial assistance it demanded, says Samastipur MP Shambhavi Choudhary
In this general budget, there is unlimited potential for development. The new tax slabs announced in the budget are welcoming, says UP CM Yogi Adityanath
First time-BJP MP Kangana Ranaut says happy with Budget as relief fund promised for Himachal Pradesh
Mandi: BJP MP Kangana Ranaut
Progressive budget says Tejasvi, will create job revolution in India
BJP's Tejasvi Surya has called the Budget a 'progressive' one and said it is the most youth-centric budget the country has ever seen. "The thrust of this budget is employment generation, the spirit is to empower the young with skills and give them employment opportunities. The historic internship scheme that has been announced will give opportunities to youth to upskill their skill set. This is going to create a job revolution in the country," Surya said.
Kursi bachao Budget: Rahul slams FM's speech
Hari Kiran, COO & Co-founder eBikeGo reacts to Budget
As the Co-founder & COO of eBikeGo, I am thrilled with the Union budget announcement by Finance Minister Nirmala Sitharaman. The waiver of import duties on crucial minerals like lithium is a significant step forward for the electric vehicle industry.
This move will notably reduce our manufacturing costs, allowing us to pass on the savings to our customers and make electric vehicles more affordable. Furthermore, the investment in 1,000 industrial training centres, including the Hub-and-Spoke model, is a visionary step to ensure we have a specialized workforce to meet the growing demands of the industry. These initiatives not only support job creation and boost consumption but also position India as a leader in sustainable transportation solutions. The focus on skill development will also enhance the quality and efficiency of our operations. We look forward to leveraging these opportunities to drive innovation and growth in the EV sector."
Keyur Shah, Partner and Leader Financial Services Tax, EY India
“The first budget of the new government has been announced with a focus on employment generation, MSME sector and the Indian middle class. Some of the changes from a direct tax perspective like the removal of angel tax, peak rate of taxation for foreign bank etc are welcome from a financial services perspective," Shah said.
"Having said that the change in the capital gains tax regime especially the increase in the securities and transaction tax, tax rates for both long-term and short-term (listed securities) and the removal of indexation benefits especially on housing sector could have a short term effect on the capital markets though it does result in simplification of the overall capital gains regime," he added.
Prashant Sharma, President, NAREDCO Maharashtra
"We commend the Union Budget 2024-25 for its comprehensive approach towards job creation and boosting consumption, which are positive developments for the real estate sector. The Finance Minister's announcement of a PM Package with five schemes focused on employment and skilling, with an allocation of Rs 2 lakh crore, and a significant provision of Rs 1.48 lakh crore for education, employment, and skilling, is a welcome move. These initiatives will undoubtedly create a ripple effect, enhancing the economic landscape and increasing demand for residential and commercial properties."
Pritam Chivukula, Co-Founder & Director, Tridhaatu Realty and Vice President, CREDAI-MCHI
"We wholeheartedly welcome the Finance Minister Nirmala Sitharaman Union budget 2024-25 which reflects market expectations, promoting an atmosphere conducive to economic growth. The budget emphasizes the needs and aspirations of the Garib, Mahilayen, Yuva, and Annadata, highlighting the government's primary priorities, and we applaud the government for the same. Rental housing with dormitory type accommodation for industrial workers proposed under the PPP model is a step in the right direction."
No 'out-of-the-box thinking' by Centre, says RJD's Manoj Kumar Jha
Manoj Kumar Jha.
Credit: PTI photo
RJD MP Manoj Kumar Jha called the Budget a disappointment. "The country's primary concern is unemployment. The organic model should have been introduced. The core sectors like labour, farmers, youth...there is no out-of-the-box thinking for them."
BJP-led central government did not give anything to the people of Delhi: Atishi
"The BJP-led central government did not give anything to the people of Delhi. We demanded for a five per cent share on the taxes paid to the centre for the development of the state but they did not give us anything. We also asked for a budgetary allocation to MCD but even that was not given," says Delhi Minister Atishi.
Budget has been people and development-friendly for last 10 years: BJP's Sambit Patra
First budget to ultimate goal of Viskit Bharat: Rajeev Chandrasekhar
BJP leader Rajeev Chandrasekhar says, "It is the first budget to the ultimate goal of Viskit Bharat that Prime Minister has placed in front of our nation...There is continuity between PM Modi's vision of high growth, low inflation, reducing poverty, increasing investment, increasing jobs."
Crafted a Budget to bribe coalition partners, says TMC
Ashwin Jacob, Partner & Industry Leader, Energy, Resources & Industrials, Deloitte India
"The Honourable Finance Minister announced the government's intent to establish a policy to support pump storage projects as part of a concerted focus on affordable energy transition pathways. While the specifics of the policy will need to be studied, this announcement is a highly welcome measure. It signifies a significant step towards increasing the contribution of round-the-clock renewable energy in India's energy mix, thus helping address the intermittency issues associated with solar and wind power. This will enhance energy security and grid resilience, fostering a more sustainable and self-sufficient energy ecosystem."
Sujoy Ghosh, Vice President & Country Managing Director, First Solar
"The budget demonstrates a clear support for Atmanirbhar Bharat in the solar sector. The exemption of BCD on capital equipment for solar manufacturing and the withdrawal of duty exemption on solar glass will provide support for more investments in domestic supply chain and manufacturing job creation in India. The focus on an emissions abatement roadmap for hard to abate industries will additionally create more demand for the renewable energy in the country."
Hardika Shah, Founder & CEO, Kinara Capital
"It is very encouraging to see a number of announcements aimed at bolstering the MSME sector in the Union Budget 2024-25. The Finance Minister's introduction of a credit guarantee scheme specifically tailored for MSMEs in the manufacturing sector is a particularly promising move. This initiative, which facilitates access to term loans for MSMEs to purchase machinery and equipment without the need for collateral or third-party guarantees, will incentivize formal lending at the last mile by mitigating credit risk."
Satish Menon, Executive Director, Geojit Financial Services
"The budget was anticipated to build upon the progressive measures outlined in the interim budget. However, the overall government expenditure aligns with the interim budget's goal and focus is to reduce the fiscal deficit to 4.9%, significantly lower than the 5.6% estimated for FY24. Key positives are new macro-initiative aimed at job creation, workforce skill development, improvements in agriculture, urban & rural housing, and higher funding the MSME sector, which should uplift the masses.
Increase in capital gain tax is a negative surprise, The 5% increase in STCG is likely to adversely affect short-term investors in the near term."
V K Vijayakumar, Chief Investment Strategy, Geojit Financial Services
"The overarching theme of this Budget is fiscal consolidation and focus on employment generation. The reduction in fiscal deficit target for FY 25 from 5.1% in the interim Budget to 4.9% now reflects the government’s focus on growth with financial stability. This, along with Rs 11.11 lakh crores (3.4% GDP) of capex in FY25 augurs well for the growth of the economy in the long run."
Hitesh Sharma, Partner and Life Sciences Leader – Tax, EY India
"The budget has maintained a neutral stance towards the Pharmaceutical and Healthcare sector. Noteworthy advancements include a commitment to enhance R&D, with an emphasis on basic research and the development of prototypes - reemphasis of commitment made in interim budget. Additionally, the budget proposes the elimination of customs duties on select cancer medications and a reduction of Basic Customs Duty (BCD) on specific X-ray related products. Also skilling initiative and support would help the healthcare sector. However, the budget did not focus on healthcare infrastructure, the manufacturing of medical devices, or incentives for R&D, which were notable omissions."
Pranav Haridasan, MD & CEO, Axis Securities
"The Union Budget 2024-25 has presented short-term challenges for the markets. The rise in capital gains tax rates and the increased STT are a short term negative. The capital expenditure allocation, unchanged at ₹11.1 lakh crore, fell short of the expected ₹11.5-12 lakh crore. However, the budget does have its positives. The fiscal deficit has been reduced to 4.9%, compared to 5.1% in the interim budget, demonstrating a solid fiscal consolidation path. Additionally, the budget places a strong emphasis on welfare schemes, aiming to alleviate rural distress and support the rural economy. Despite the initial market reaction, the impact is expected to be temporary, with a return to normalcy anticipated soon."
Grant Thornton Bharat's Partners react to the Union Budget for various sectors
Infrastructure:
"The inclusion of Viability Gap Funding (VGF) in infrastructure development is crucial. While great progress has been observed in the development of roads, careful planning and execution of other projects are essential. With a strategic approach, these projects can drive significant economic growth."
Urban Infrastructure:
"The allocation of INR 15,000 crore for Amaravati’s development through Infrastructure Development Authorities (IDAs) is a major step forward. This funding can transform Amaravati into a modern, sustainable city, driving economic growth and infrastructure development. The emphasis on future-oriented planning is commendable, and it will be interesting to see the tangible progress resulting from this budget."
Ramendra Verma, Partner, Grant Thornton Bharat
MSMEs:
"New and additional employment incentives across manufacturing and other sectors will encourage workforce growth and bolster the Make in India initiative. These incentives complement existing PLI schemes and provide additional income tax benefits for hiring more employees."
Krishan Arora, Partner, Grant Thornton Bharat
FMCG + E-Commerce:
"Setting up e-commerce and export hubs through public-private Partnerships will expand market reach for rural artisans, aiding in the economic upliftment of rural Bharat."
Naveen Malpani, Partner, Grant Thornton Bharat
Energy:
"Support for 60 MSME clusters in conducting energy audit through incentive/subsidised scheme to identify areas of improvement and make this sector more energy efficient and fulfill country's net zero path. This scheme where 100 clusters will be added will go a longway in achieving this objective."
Amit Kumar, Partner, Grant Thornton Bharat
Urban Development:
"Redeveloping cities through a well-developed framework of enabling policies, market mechanisms, and regulations is expected to boost both urban and peri-urban areas. This approach will integrate peri-urban areas smoothly into the urban landscape."
Padma Priya, Partner, Grant Thornton Bharat
Real Estate:
"Redeveloping cities through a well-developed framework of enabling policies, market mechanisms, and regulations is expected to boost both urban and peri-urban areas. This approach will integrate peri-urban areas smoothly into the urban landscape."
Krishan Arora, Partner, Grant Thonrton Bharat
"The recent budget announcements regarding rental housing are set to greatly enhance the real estate market, particularly benefiting SM REITs. This strategic emphasis will stabilise rental yields and position REITs as pivotal drivers in the growth of the residential real estate sector, fostering a more robust and dynamic market."
Shabala Shinde, Partner, Grant Thornton Bharat
Agriculture:
"The proposed budget on agriculture with a focus on “Productivity and Climate resilience” is right on the spot for the current requirements of the country. India’s average productivity is less compared to the world’s highest productivity for majority of crops e.g Paddy, Maize, Oilseeds etc. There is a clear need to focus on research & development which will enhance the overall production. Focusing on natural farming is the need of the hour to support the natural soil ecosystem which is vulnerable because of high agri input usage. Focus on infrastructure like irradiation units, quality labs will help in infrastructure availability inter -alia resulting in reduced post-harvest losses and improving quality assurance for the consumers. Vegetable clusters will help in easing out the food inflation pressures. Moreover, the new programme on oil seeds & pulses is a must and the government is spending more than 1.5 lakh crore on the import of oilseeds (which is more than 50% of the country’s demand). The programme shall build Aatmanirbharta and self-sufficiency in oilseeds and pulses, reducing the pressure of imports and global vulnerabilities. Building digital agriculture infra will bring efficiency and inclusiveness in the areas as desired for a holistic development of farmers. The budget of 1.52 lakhs Cr is around 20% higher compared to last year’s budget though the focus areas are in the right direction of long-term growth and achievement of the Prime Minister’s vision of Viksit Bharat."
Chirag Jain, Partner, Grant Thornton Bharat
Tourism:
"Focus on tourism will transform Brand India. By highlighting new destinations like Odisha, promoting sustainable tourism, and revitalising ancient temples and pilgrimage sites, India is set to become a 'must-see, must-visit' global tourism destination."
Soumya Palchoudhuri, Partner, Grant Thornton Bharat
Ranen Banerjee, Partner and Leader Economic Advisory, PwC India
"Fiscal prudence is the highlight of the full Union Budget 2024-25. The government has gone with realistic projections on its revenue and expenditure estimates and refrained from announcing overly populist measures. The majority of the allocations, including the capex allocation, are as outlined in the interim budget, thus providing continuity. The capex being kept at INR 11.11 trillion was expected, given that the ability to consume this allocation is limited due to disruption from the elections in the first quarter and the second quarter being typically slowed down by the monsoons. The urgency around skilling requirements has been rightly reflected through announcements related to skilling loans, interest subvention on higher education loans and incentives to corporates for providing internship opportunities."
Amar Ambani, Executive Director, Yes Securities
"Barring the capital gains tax dampener for the investor community and removal of indexation benefit, the Union Budget was balanced and consistent in policy. Brushing aside concerns around more populism, the target set for the fiscal deficit at 4.9% is a huge positive. Agriculture package of Rs1.5 lakh crores is along expected lines and will help provide a fillip to the rural economy. The slight relaxation in personal income tax slabs helps on the consumption front as well. There has been a material push in uplifting the financial health and borrowing ability of MSMEs. The capital expenditure outlay of the government of 3.4% as a percentage of GDP is also robust and in line with their policy. Notably, the government is focusing on further digitizing the economy with land and house registry. I sense an even better budget next year, with the finance minister mentioning about a comprehensive review of the Income Tax Act to simplify taxation and reduce disputes, as well as a customs duty rate structure overhaul to correct inverted duty structures.”
Nothing about farmers in budget, says Congress leader Deependra Singh Hooda
Congress leader Deependra Singh Hooda rued that there was nothing for the farmers in the budget. "Only Andhra Pradesh and Bihar were mentioned in the budget...They forgot about Haryana...If they forget Haryana, the people of Hyrayan will forget the symbol lotus."
R G Agarwal, Chairman, Dhanuka Group
Agriculture
The per acre productivity of the Indian agriculture sector is much lower in comparison to many developed and developing nations. Investment in Research and Development as well as the adoption of advanced technologies, are essential for improving productivity. The budget for 2024-25 has tried to address both of these concerns. The decision to undertake a comprehensive review of the agriculture research setup and rope in the private sector for the same is a positive step in the right direction. The creation of Digital Public Infrastructure in agriculture is expected to benefit farmers & the nation significantly. It will also improve our image in the international market because, after computerization, we can protect the confidential information and data which is generated by Multinational Companies after their investment of thousands of crores of rupees. The technology, besides digitizing land records, will also help to provide better estimates of crop production and ensure timely action, if needed.
Subburathinam P, Chief Strategy Officer, TeamLease Services Limited
"By introducing a scheme that incentivises job creation in the manufacturing sector through the employment of first-time employees, the sector is poised to significantly boost job opportunities. This initiative, which provides incentives to both employees and employers based on their EPFO contributions for the first four years of employment, will encourage formal hiring and foster a more stable and productive workforce. As more manufacturing plants are being set up around Tier 2 and 3 cities, the youth in these regions are more likely to benefit from such initiatives. This approach will not only enhance job security but also drive growth and innovation within the manufacturing sector, ultimately contributing to a stronger economy."
Prakash Chhabria, Executive Chairman, Finolex Industries Ltd
"The Union Budget 2024 presented by Finance Minister Nirmala Sitharaman sets a clear roadmap for India's inclusive growth. The government's focus on manufacturing, agriculture, and infrastructure development is commendable. The credit guarantee scheme for MSMEs and the establishment of e-commerce export hubs will significantly boost our industrial capabilities. For the agricultural sector, initiatives like digital crop surveys and promotion of natural farming align well with sustainable practices.
The budget's emphasis on infrastructure, including the PM Awas Yojana's ambitious housing targets and urban development focus, presents great opportunities for the pipe and fittings industry. We applaud the government's commitment to water management, promoting water supply, sewage treatment, and solid waste management projects in 100 large cities. This initiative, along with plans for treated water reuse, demonstrates a holistic approach to water resource management. The measures for empowering women and youth, combined with substantial rural development allocation, promise inclusive growth. We look forward to contributing to these progressive initiatives as we work collectively towards building a more prosperous India.
Kartik Narayan, CEO- Staffing, TeamLease Services Limited
"The introduction of the new employment-linked incentive scheme in the budget marks a significant advancement in reducing informal employment in the country. By providing financial support and incentives to both employers and employees, the scheme aims to promote formal hiring practices and ensure essential benefits. Initiatives such as support for first-time employees, recognition of EPFO enrollments, and assistance for the MSME sector are specifically designed to transition more workers into formal employment. A dedicated ₹2 trillion allocation for skilling and job creation over the next five years will enhance job security and cultivate a more robust and inclusive workforce."
Glimpses of Nirmala Sitharaman and leaders on Budget day
Nothing in Budget speech gives us confidence that govt will seriously tackle issue of inflation: Congress leader P Chidambaram
Congress leader P Chidambaram.
Credit: PTI File Photo
Strong foundation for our economy laid in 10 years of Modi govt: Ashwini Vaishnaw
The 10 years (of Modi government) have laid a very strong foundation for our economy. Today, our banking sector is strong. Middle-income families have seen new employment opportunities coming up. Low-income families are seeing total transformation in their lives," says Union Minister Ashwini Vaishnaw.
Budget puts roadmap for the future, especially on agriculture, manufacturing, job creation, women empowerment at small-scale and medium-scale
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.
Deepak Ramaraju, Senior Fund Manager, Shriram AMC
The budget has not been a big bang budget in terms of announcements or reforms. The government has tried to strike a balance between social reforms, growth, fiscal prudence and coalition partners. Special packages to Andhra Pradesh and Bihar have been provided in terms of industrial corridors, infrastructure push and financial support for key projects. This ensures the continuity of the coalition. The fiscal prudence is improved and the fiscal deficit is reduced to 4.9% of the GDP from 5.1%. The borrowing is pegged to Rs 14 L Cr which is less than last year. This is positive for the overall economy.
Ashok Hinduja, Chairman of Hinduja Group of Companies
"The Budget shows Modi 3.0 is all about continuing the path to Fiscal Consolidation with the Fiscal Deficit target of 4.9% this year and 4.5% the next while maintaining the Capex figure at 3.6%. The focus on the agri sector and housing infrastructure - affordable and urban - is substantive and augurs well. Quite a few changes in taxation have been announced, which needs a detailed study. Higher FDI is expected with a reduction in tax on Foreign Companies from 40 to 35%. Overall, a good budget for the macro Indian Investment Climate but could have been better for Indian Investors."
BJP's Agnimitra Paul reacts to Mamata Banerjee's remark on Budget
"Budget has given many things for agriculture, farmers, infrastructure, cancer medicines, jobs for the youth and a variety of things. Yes, we haven't got something special like Bihar and Andhra Pradesh. In a state with a CM (referring to Mamata Banerjee) who wants to take all benefits and funds from the central government, but will not give account and there will be neck deep corruption, and still want money and funds? It does not happen that way. There has to be respect and cooperation," says BJP leader Agnimitra Paul.
Jaiman Patel, Tax Partner – Financial Services, EY India
“The budget has set a new course for GIFT City IFSC, aligning the tax treatment of Retail Schemes and ETFs with Category III IFSC AIFs, thus will attract global fund managers and boosting the fund management ecosystem. Additionally, IFSC Finance companies now enjoy an exemption from thin capitalisation rules, encouraging the establishment of Finance Companies and treasury units.
Announcements for a 'variable company structure' and efficient funding mechanism for finance lease of aircrafts and ships, promise enhanced financial and operational flexibility to GIFT City ecosystem. Despite these advances, anticipated reforms such as the tax framework for ODIs by non-banking units, reverse flipping of startups to GIFT City IFSC, clarity on taxation of insurance proceeds in IFSC, etc remain pending.”
Subahoo Chordia, Head - Real Assets Strategy, Edelweiss Alternatives
The government has maintained its allocation towards infrastructure sector at INR 11+ lakh crores (i.e. 3.4% of GDP) and additional interest free loan of INR 1.5 lakh crores to States will be a booster for the infrastructure segment. The budget has lent further emphasis to multiple infrastructure segments towards development of roads, airports etc. Further, industrial parks, to service 100+ cities and development of 12 specific industrial parks under national schemes is envisaged.
The Government has lent further weight in its fight against climate change. The fiscal incentives for rooftop solar and pumped storage will enhance energy security and availability. Further indirect tax incentives towards renewable energy items and critical minerals such as lithium, copper bodes well for the segment.
Overall the budget maintains its focus on long term growth and sustainability and is positive towards infrastructure segments.
Sambitosh Mohapatra, Partner & Leader - ESG, Climate and Energy, PwC India
“The budget focuses on all elements of the energy value chain – managing and reducing demand, encouraging resource efficiency, enhancing energy security at a national and citizen level, driving energy transition, and indigenising technologies like nuclear reactors. Most importantly, it focuses on streamlining climate finance and stimulating carbon markets. At the core of the budget is the respite given to the common man’s energy bills through the solar rooftop mission.”
Shuchi Ray, Partner, Deloitte India
The Government has allocated Rs. 89,287 crores towards healthcare sector, which is marginally higher than the original budget allocation estimate of Rs. 89,155 crores last year. A few very specific announcements pertaining to the sector are welcome, viz., exemption of three cancer medicines from customs duties keeping in perspective affordability and rationalizing the customs duty in case of X-ray tubes and Flat panel detectors and for some input materials used in manufacturing of orthopedic implants and artificial parts of the body, is clearly a recognition towards boosting domestic manufacturing of such medical equipment / devices. While healthcare has not found its place in the budget priorities, however, it has clearly been integrated with most of the priorities announced.
Shantanu Jindel, Partner, INDUSLAW
Given the impetus on making the healthcare sector self-reliant and commitments made in the manifesto of the ruling party, the budget clearly fell short of the expectations.
Vinod Nair, Head of Research, Geojit Financial Services
"Domestic investors had high expectations from the budget to increasing revenue and capital expenditure. However, the narrative is mixed, by curtailing expenditure while attaining fiscal prudence, which can limit further growth. During the year, the market has fairly factored in ongoing growth and trading at a high premium. To sustain that gap, corporate growth has to be maintained, which is experiencing a slowdown as per the ongoing Q1 result."
Santosh Iyer, MD & CEO, Mercedes-Benz India
“The budget clearly underlines Govt’s priorities on creating a robust foundation for a developed Indian economy. We are glad the capex on infra projects tops govt’s priority, with 3.4% GDP allocation. We were expecting GST announcement of long-term continuation of reduced GST for BEVs; however, developing a climate finance taxonomy to aid capital for climate adaptation and mitigating climate change, is a step in the right direction for achieving climate commitments.”
Sanjay Tolia, Partner - Price Waterhouse & Co LLP
The FM’s budget today is a clear mandate for speed and continuity in achieving the goal of Viksit Bharat by 2047. The fiscal deficit target of 4.5% by FY26 while balancing large capex such as INR 11 lakh crore on infra – which has a multiplier effect on economic growth and employment creation – is a step in the right direction. With a clear focus on manufacturing and services, the government has committed to tapping India’s youthful workforce with an allocation of INR 2 lakh crore over the five years which will be leveraged by the growing number of GCCs in India and the new manufacturing units being added under the Make in India drive. This, coupled with special attention to MSMEs and setting up of plug-and-play industrial parks in over 100 cities, sets a clear path for sustainable growth.
Gautam Shahi, Director, CRISIL Ratings
For the real estate sector, the impact of changes in taxation is expected to be mixed. On the one hand, the reduction in the long-term capital gains tax rate from 20% to 12.5% should boost investments over the near to medium term. On the other, the removal of indexation benefit will increase the tax incidence on property sale, especially for older properties.
Further, the Centre’s move to persuade state governments to reduce stamp duties, especially for women home-owners, can have a positive impact.
On affordable housing, the move to provide additional one crore housing units to urban poor and middle-class families under the Pradhan Mantri Awas Yojana (PMAY) scheme, with an incremental budgetary allocation of Rs 2.2 lakh crore over the next 5 years, will sustain the growth momentum in this segment.
Vishal Kampani – Non Executive Vice Chairman, JM Financial Limited
"The budget underlines the government’s priority of inclusive growth with prudent fiscal practices. Fiscal deficit target has been set lower than market expectations at 4.9% of GDP for FY25. Fiscal math looks credible and is in line with the interim budget announcements, indicating that the government is utilising the income tax buoyancy in right areas. The focus on building India’s human capital through various skilling programs with an aim to improve productivity and reap the benefits of the huge demographic dividend over the coming years is commendable. Although the capex allocation is kept unchanged, the allocation of INR 11.11 tn is significant considering it has grown ~17% YoY from revised estimates of FY24. Government’s commitment towards transitioning to cleaner sources of energy and focus on manufacturing and MSMEs mark the progress pathway to Viksit Bharat.”
Rajesh Magow, Co-Founder & Group CEO, MakeMyTrip
“The government's continued emphasis on infrastructure development is commendable. Enhanced road infrastructure will bolster the travel and tourism sector. We also welcome the initiatives to develop iconic spiritual and cultural sites into world class tourist hotspots. The decision to reduce the TDS rate on e-commerce operators to 0.1% is a welcome move. Furthermore, the provision of credit for TCS against income tax under 'Income from Salaries' is logical and will provide much desired relief to taxpayers who travel internationally.”
Naveen Kukreja, Co-Founder and CEO, Paisabazaar
"Budget 2024 has tried to provide some relief to the salaried taxpayers, especially those in the lower tax slabs, in the form of increased standard deduction and some favourable tweaks in the tax slabs under the new tax regime. The proposal to increase deduction for family pension under the new tax regime should also provide some relief to those in the golden years. We welcome the Government’s move to include MSMEs in the 9 priorities of the Budget. The proposed credit guarantee scheme for the purchasing equipments and machineries by MSMEs, without the need of furnishing collaterals or third-party guarantee, should help in improving the credit flow to the manufacturing MSMEs. We also welcome the announcement of a new credit assessment model for MSMEs based on their digital footprints. Alternative credit scoring models like these would not only help increase access to credit for MSMEs, but would also incentivise adoption of digital payment."
Rakesh Kaul, CEO, Clix Capital
“Budget 2024 succeeds in building on the growth momentum generated in the past decade with the announcements aimed at bolstering growth in mass-employment creating sectors. MSMEs are the lifeblood of our economy, and the Honourable Union Finance Minister Nirmala Sitharaman should be commended for ensuring the sector is poised to embark on the next phase of growth. Growth-spurring measures like increasing of MUDRA loan limit from Rs 10 lakh to Rs 20 lakh, creation of e-commerce export hubs to boost MSME hubs, loans for MSMEs for the purchase of machinery and equipment without collateral will go a long way in ensuring the inclusive growth of Bharat.”
Neetu Chitkara, MD & Partner, leads People & Organizational Practice, BCG India
“We commend the government's decisive action towards promoting women-led development through the recent budget allocations. The introduction of working women hostels, creches, and dedicated skilling programs represents a crucial step towards achieving true gender parity in the workforce. With an impressive allocation of over ₹3 lakh crore for women-centric schemes, this budget not only underscores the commitment to inclusive economic growth but also sets a powerful precedent for future initiatives.
The budget also emphasizes bringing women into mainstream economic growth through inclusiveness and job opportunities. These measures will create pathways for women to contribute significantly to the economy, fostering a more equitable and robust workforce. At BCG, we are committed to supporting these transformative efforts and driving meaningful progress in diversity, equity, and inclusion across all sectors.”
Abhik Chatterjee, Managing Director and Partner and leads Tech and Digital Advantage in BCG Asia Pacific
“Our 2024 Budget provides a strong boost to Digital playing a pivotal role in Viksit Bharat and achieving our $7 Trillion economy goal. We see a major thrust on Digital Public Infrastructure / Goods (DPI / DPGs) e.g. Agri, Bhu-Aadhar for land parcels and will expand upon the Bharat stack efforts we have in place. In addition expanding government services such as JanSamarth , digitization of Tax Services, Skilling and MSME lending through TReDs platforms reinforce the commitment to drive data led transparency & ease of working. Lastly, the removal of Angel Tax for Startups will further incentivize innovation, job creation and drive disruptive impacts.”
Vishal Mehta, Managing Director & Partner, Energy lead, BCG India
“The recent budget announcements highlight India's strategic commitment to building a sustainable and energy-secure future. The introduction of the PM Surya Ghar Muft Bijli Yojana, with 1.28 crore registrations, is a transformative step towards democratizing access to clean energy. This initiative, along with the upcoming policy on pumped storage projects, will stabilize our renewable energy supply and enhance grid reliability.
The government's focus on advancing nuclear energy through Bharat Small Reactors and modular technologies signifies a strategic diversification of our energy mix with reliable, low-carbon options. Additionally, the support for Advanced Ultra SuperCritical (AUSC) thermal power plants underscores a clear path towards improving efficiency and reducing emissions from thermal power generation.”
Aparna Bijapurkar, MD & Partner, BCG India
“The proposed comprehensive review of the agricultural research setup marks a significant step towards modernizing India's agricultural sector. By involving domain experts from both government and private sector, and introducing funding in challenge mode, the government is fostering innovation and collaboration. This R&D ecosystem coupled with revamp of last-mile advisory and handholding systems like the KVKs, and leveraging digital public infrastructure can enable transformational shifts in practices towards more productive and climate resilient agriculture. Furthermore, the establishment of large-scale vegetable production clusters can drive nutritional security and improve farmer livelihoods and offer a win-win to ensure a people, planet and producer positive agriculture ecosystem. The emphasis on oilseeds, pulses and allied sectors eg fisheries will also broad-based growth and development and drive diversification. The provision of Rs 1.52 lakh crore for the agriculture and allied sector, with an emphasis on strengthening fundamentals, underscores the government's desire to driving self-sufficiency and economic growth within the rural economy.”
Gautam Bali, MD and Founder, Vestige Marketing Pvt. Ltd
“The Hon’ble Finance Minister has defined the main focus points for the Union Budget 2024-25 as 'Garib' (Underprivileged), 'Yuva' (Youth), 'Annadata' (Farmer) and 'Mahilayen' (Women), reaffirming the government's commitment to empowering the youth and women. As India continues to invest in skill development, it not only unlocks the potential of its youth but also propels the nation towards inclusive growth and prosperity.
The direct selling industry is aligned with the government’s initiatives and is optimistic that the introduction of pro-people programs such as the PM’s Package - 3 employment linked initiatives, PM’s Package - 4th scheme of 20 lakh youth to be skilled over a 5-year period and Mudra Yojana will contribute towards creating an inclusive workforce with greater opportunities for employment and entrepreneurship for youth and women.
Furthermore, the Union Budget 2024-25 emphasizes innovation, research, and development with a heightened focus on resilience in agriculture and related activities. Increased allocation towards the agricultural sector, shift towards natural farming, and development of climate-resilient crop varieties, are poised to create opportunities for related sectors and companies. These efforts will undoubtedly play a significant role in India’s overall sustainable growth.”
Avishek Gupta, MD and CEO, Caspian Debt
“A long standing demand for climate taxonomy has been committed in the budget speech. I am hoping that it is released soon, making climate related financing easier to channelise. In addition to that, a number of announcements keeping in mind climate change and the need to improve resilience to climate change is refreshing. Strong and well-executed initiatives to address the issues and opportunities would lead us to a more climate resilient country. Removal of angel tax will hopefully improve the ability of startups to attract a wide variety of investors including individual investors.
BJP had put special category status as promise for Odisha, did not fulfill it: Naveen Patnaik
"BJP had put special category status in their manifesto as a promise to the people of Odisha. However, this promise had not been considered for Odisha. Whereas special packages allocating crores of funds have been announced for Andhra Pradesh and Bihar," said former Odisha CM Naveen Patnaik.
Focuses on youth, farmers, centres around common man: Maharashtra CM Eknath Shinde
"The Budget centres around the common man. It is a start to achieve the goal of making India a $5 trillion economy," Shinde said. He also noted that taxpayers have also been given relief.
'Never before seen such a good Budget', says Tripura CM Manik Saha
"This is a good Budget. We had never before seen such a good Budget. I think this is a good example for all the citizens. So, I would like to say that our vision for Viksit Bharat will be fulfilled. That is why, I would like to thank FM Nirmala Sitharaman and PM Narendra Modi for presenting such a good budget...The issue of unemployment is always raised. How jobs can be generated for 20 lakh youth in 5 years, that arrangement has been made in this Budget," Manik Saha said.
Via ANI