New Delhi: Finance Minister Nirmala Sitharaman has delivered a growth-oriented inclusive Budget maintaining fiscal discipline with a focus on job creation, India Inc said Tuesday.
Reacting to measures announced in the maiden Budget of Modi 3.0 government, they said it balances equitable growth with fiscal sustainability and is people-centric.
Vedanta Ltd Chairman Anil Agarwal pointed out that the focus on job creation with three innovative employment-linked schemes is timely.
“The abolition of angel tax will give a big boost to our startups and young entrepreneurs who are the job creators of the future. The commitment to speed up IBC resolution will lead to 12,000 businesses restarting operations and many more jobs. I am delighted to see the announcement related to Critical Minerals Mission,” he said.
Industry body Ficci President Anish Shah termed the Budget 2024-25 as a “growth-oriented” one that has delivered both short-term demand stimulus and actions focused on medium- to long-term growth imperatives, while maintaining fiscal discipline.
He said the Budget is inclusive, with a strong thrust on quality job creation and skilling.
Similarly, CII President Sanjiv Puri also described it as a “people-centric” Budget which balances equitable growth with fiscal sustainability.
The government has unveiled a comprehensive roadmap for sustainable and equitable growth while retaining the focus on job creation, he added.
Likewise, Assocham lauded Sitharaman for maintaining policy continuity with a “bold” Budget while investing for the long-term and no easy giveaways.
“This is a Bold budget by the government keeping in view longer-term fiscal prudence. With no easy giveaways, it focuses on a longer, more sustainable path of job creation through manufacturing in the country and a strengthened role of the MSMEs,” Assocham President Sanjay Nayar said.
In a post on X, JSW Group Chairman and MD Sajjan Jindal said, “Glad to see the Union Budget’s commitment to fiscal discipline and infrastructure development. A fiscal deficit of 4.9 per cent, with a target of 4.5 per cent next year, shows our economic prudence.”
Bharat Forge Chairman & MD Baba Kalyani said the Budget lays strong emphasis on strengthening the fundamental pillars that would propel the Indian economy towards a Viksit Bharat.
“The focus on natural farming and agricultural productivity, incentivising job creation and employment, continued impetus to bolster MSMEs, modernising urban cities and policies aimed at accelerating India’s energy transition will have a long-standing affect that would significantly improve economic resilience in an otherwise volatile world economy,” he said.
Farm industry experts hailed the Budget as “forward looking,” citing its push for agri-research and self-sufficiency in pulses and oilseeds.
However, farmer leader Rakesh Tikait from Bharat Kisan Union said the budget left farmers “empty handed” as it failed to meet key demands.
“We trust this important mission would be adequately funded to ensure game changing results in reducing import dependence in coming years,” said Solvent Extractors Association of India (SEA) President Ajay Jhunjhunwala, welcoming the national missions for edible oils.
Tikait expressed concern “over providing funds for the private sector in agri-research in the name of climate change, letting foreign lobby groups and big corporations push their agenda.”
Terming the measures announced in the budget “positive”, noted businessman Bharggav Roy said the budget’s focus on stimulating job creation through EPFO contribution incentives is poised to unlock opportunities for 50 lakh young individuals, with a significant proportion being women. “Increased investment in rural development, support for the urban poor, and initiatives focused on youth employment and skill-building are expected to have a multi-year effect, driving consumer spending and ultimately boosting economic growth. The budget’s focus on mass consumption is seen as a step in the right direction, with these measures anticipated to yield positive long-term effects,” he added.
Good Food Institute India’s Acting Managing Director Sneha Singh said, “We applaud the special focus on achieving self-sufficiency in pulses and oilseeds to reduce the dependence on imports and create more pathways for value-added products such as plant proteins.”
Rahul Mehta, Chief Mentor, the Clothing Manufacturers Association of India (CMAI) said additional measures announced to support bank credits to MSMEs and easing of foreign investment will also benefit the textile and apparel industry.
“The import relaxation in some of the important raw materials, trims and accessories required for garment manufacturers will also help the garment manufacturers to be more competitive, especially in the Export markets,” he said.
Retailers Association of India (RAI) CEO Kumar Rajagopalan appreciated the government’s focus on empowering the middle class and rural population.
“Initiatives such as monetary support for farmers, higher exemption limits in personal income tax, and increased standard deductions will provide higher disposable income, leading to increased spending. We believe this will stimulate consumption growth, thereby boosting the overall economy,” he said.
IKEA India Country CFO Murali Iyer said the budget demonstrated commitment to supporting MSMEs and women via access to finance, infrastructure and skilling support.
“Innovative schemes, such as internship opportunities for youth and the development of Digital Public Infrastructure reflect the government’s forward-thinking approach. “Significant investments in infrastructure and tax relief measures, such as an increased standard deduction for salaried employees, will increase disposable income for consumers, providing a boost to retail,” he said.
Dhanuka Group Chairman R G Agarwal noted, “the budget has tried to address the twin concerns of lesser investment in R&D and lower crop yields.” `
“To fully harness this progress, increased investments in IoT, AI, and data analytics are crucial,” said Ashish Agarwal, Co-Founder & CTO, Weather Risk Management Services (WRMS).
Primus Partners Managing Director Devroop Dhar commented on the farmer and land register initiative: “It should be rolled out in a mission mode and then be rolled out across the country.”
“The food processing sector will gain from the mission for self-sufficiency in pulses, encouraging shrimp production and focus on vegetable production clusters,” said Deloitte India Partner and Consumer Products leader, Anand Ramanathan.
Bayer CropScience Vice Chairman, MD and CEO Simon Wiebusch said, “Focus on climate resilient crops and access to new technology will bring in food security as well as self-reliance in key areas like oilseeds.”
FMC Corporation Director (Industry and Public Affairs) Raju Kapoor said, “The government has presented a ‘forward-looking’ and ‘growth-oriented’ budget that rightly prioritizes the transformation of Indian agriculture.”
“The Budget is commendable for its strong focus on agriculture and economic growth. It highlights the government’s commitment to reshaping Indian agriculture and boosting productivity,” Shree Renuka Sugars Executive Chairman Atul Chaturvedi said.
PwC India, Partner (agriculture) Shashi Kant Singh noted, “The Union Budget has laid down a clear path for ensuring sustainable growth of the agriculture sector. Allocation in excess of Rs 1.5 lakh crore, coupled with a clear focus on productivity and resilience, provides a much-needed thrust to the sector.”
Crop Care Federation of India (CCFI) Vice Chairman Rajesh Aggarwal said, “By focusing on productivity and resilience, this budget promises to transform the lives of farmers and boost the overall economy.”
Abolition of angel tax cheers startups
Startup and venture funds Tuesday cheered the Budget decision on the abolition of angel tax for all investor classes, terming it a “game-changer” that would remove significant barriers in growth and foster a vibrant and dynamic ecosystem. Angel tax refers to the tax that the government imposes on funding raised by unlisted companies, or startups if their valuation exceeds the company’s fair market value. The angel tax issue has been a thorn on the side of startup founders and investors, and venture capitalists, startups and industry associations have long been batting for its removal. “The abolition of the ‘angel tax’ is a game-changer, removing a significant barrier that has long hindered the growth of startups and discouraged investment. This progressive step will undoubtedly foster a more vibrant and dynamic startup ecosystem, encouraging innovation and entrepreneurship across the country,” Prateek Jain, Associate Director-Startup and Alliances, Alliance of Digital India Foundation (ADIF) said.
Farm sector hails ‘forward looking Budget’
The Union Budget 2024 has drawn mixed reactions from the agriculture sector, with industry experts praising its focus on research and self-sufficiency, while some farmer leaders expressed disappointment. Farm industry experts hailed the Budget as “forward looking,” citing its push for agri-research and self-sufficiency in pulses and oilseeds. “We trust this important mission would be adequately funded to ensure game changing results in reducing import dependence in coming years,” said Solvent Extractors Association of India (SEA) President Ajay Jhunjhunwala, welcoming the national missions for edible oils. Good Food Institute India’s Acting Managing Director Sneha Singh said, “We applaud the special focus on achieving self-sufficiency in pulses and oilseeds to reduce the dependence on imports and create more pathways for value-added products such as plant proteins.”
Nothing specific: Hospitality disappointed
Hospitality players expressed disappointment with the Budget for 2024-25 citing lack of policy announcements to facilitate the development of the sector. They lamented that some key demands to revitalise the tourism and hospitality sector such as granting of infrastructure status and bringing ease of doing business and policy reforms have not been considered in the Budget. The Hotel Association of India (HAI) President KB Kachru said the tourism and hospitality sector plays a crucial role in the growth of the Indian economy. The continued focus on government spending on infrastructure development augurs well for the sector. “Regrettably, however, there has been no policy announcement to facilitate the development of hotels and promotion of inbound tourism,” he added.
No duty on critical minerals: Auto Inc rejoices
The proposed exemption in customs duty on import of lithium, cobalt and other rare minerals in the Union Budget 2024-25 is likely to lower the battery production cost and help in making electric vehicles more affordable for the buyers, auto industry leaders said Tuesday. Finance Minister Nirmala Sitharaman while presenting the Union Budget for 2024-25 proposed to fully exempt customs duties on 25 critical minerals and reduce Basic Customs Duty (BCD) on two of them. Auto industry body SIAM President Vinod Aggarwal said the exemption of customs duty on import of lithium, cobalt and other rare minerals and extension of concessional customs duty on Li-Ion cells till March 2026 and withdrawal of equalisation levy of 2 per cent on e-transactions is expected to propel the growth of the Indian auto industry. “The Indian automobile industry welcomes the continued emphasis on economic growth with several announcements, especially the strong fiscal support for infrastructure in the next five years,” Aggarwal stated.
Education sector lauds announcements
Education sector experts Tuesday welcomed the Budget announcements to offer loans up to Rs 10 lakh for higher education in domestic institutions and upgrade ITIs, while also highlighting that it is equally important to recognise the gap in opportunities for students aspiring to study abroad. Besides the financial support for student loans, FM also announced measures including upgrading 1,000 Industrial Training Institutes (ITIs) in the hub and spoke model, aligning course content with the skill needs of the industry and revision of model skill loan scheme. Chairman of the Seth Anandram Jaipuria Group of Educational Institutions Shishir Jaipuria said the loans will make quality education more accessible, allowing students to choose institutions of merit.
PNN & Agencies