Finance Minister Nirmala Sitharaman on Tuesday presented the Union Budget 2024, highlighting the Modi govt 3.0’s priorities across multiple sectors.
Hardika Shah, Founder & CEO, Kinara Capital said the Budget was focused on women, GST and FDI.
Focused on women
"The Union Budget has made significant strides in promoting women's economic participation. To this end, a number of initiatives were announced, supported by the allocation of more than INR 3 lakh crore for schemes benefitting women and girls.," Hardika said in press release.
"Initiatives like setting up working women’s hostels in collaboration with industries and the establishment of creches, organizing women-specific skilling programmes, and promoting market access for women SHGs are commendable steps towards addressing challenges faced by women. Another move that will have a positive impact on women’s participation in the workforce is the abolishment of the Angel Tax. Even today in India out of the 8,000 startups founded by women, nearly 75%, of which some are generating revenues exceeding $30,000 are still unfunded (Tracxn Report). This move will encourage greater participation of investors in the startup ecosystem including women-owned startups. The improvement in the funding ecosystem and the support offered through the different women-focused initiatives is also likely to have a ripple effect on job creation for women. According to Kinara Capital’s MSME Insights, which analyzed data from 44,821 MSMEs, women-owned enterprises create 11% more jobs for women than men-owned ones, and we can expect to see similar trends in the startup ecosystem. This second-level impact will add further impetus to the government’s intention of helping more women enter the formal workforce," she added.
Focused on GST
"The implementation of the GST regime has proved to be beneficial for MSMEs, reducing the compliance burden and logistics costs. As stated in the 2024 Union Budget, the government remains committed to further simplifying and rationalizing the tax structure, with the goal of enhancing its benefits. The original vision of GST, encapsulated in the idea of One Nation, One Tax, is gradually being realized. As the GST continues to evolve, it will encourage more MSMEs to formalize, thereby increasing their creditworthiness. This, in turn, will facilitate access to formal credit, as well as government benefits and subsidies, supporting their growth and contribution to the broader economy," she added.
Focused on FDI
"Today’s Union Budget announcement about the simplification of Foreign Direct Investment (FDI) rules and regulations to facilitate inflows is a particularly positive move for India’s growing economy. India experienced nearly USD $600 billion in FDI inflow from 2014-2023, nearly 2x the inflow compared to the previous decade. By easing the process for FDIs, the government is taking a significant step towards attracting more foreign capital, which is essential for boosting economic growth. Further, a boost to foreign investors will be the corporate tax reduction from 40% to 35% while the abolishment of Angel Tax for all classes of investors is a game changer. Removing this tax barrier will ratchet up the foreign investor interest just as India is gunning to become the world’s 3rd-largest in the next couple of years," Hardika said.
Union Budget 2024 LIVE | Making a record for any Finance Minister, Nirmala Sitharaman presented her 7th consecutive Union Budget on July 23, 2024 under the Modi 3.0 government. This Budget brought tax relief for the middle class, while focusing on jobs through skilling, incentivising employers. 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.