- The budget’s policy mix – including continued capex, job creation, support for manufacturing, agriculture, MSMEs, automobiles, healthcare, women, education, defence and rural development – is likely to be positive for India’s potential growth
- in her six earlier budget presentations, Nirmala had quoted Saint Thiruvalluvar’s ‘Thirukkural’, but this time gave a miss to it
- Raising the capital gains tax disappoints markets
- Post the budget, there were mixed reactions from the real estate sector as the players in the segment feel that much more could have been done for the sector
NE BUSINESS BUREAU
NEW DELHI, AHMEDABAD, CHENNAI, MUMBAI, JULY 23
Eyeing the poll pie, Union Finance Minister Nirmala Sitharaman has presented her 7th budget under Modi 3.0 to please all. However, in her six earlier budget presentations, Nirmala had quoted Saint Thiruvalluvar’s ‘Thirukkural’, but this time gave a miss to it.
Experts across the board welcomed the Budget and said it will benefit the working class, women, entrepreneurs and MSMEs, while maintaining the fiscal prudence. However, the Budget raised capital gains tax, which disappointed the markets. Post the budget, there were mixed reactions from the real estate sector as the players in the segment feel that much more could have been done for the sector.
In this post, navjeevanexpress.com furnishes quotes and insights from key figures across various sectors, offering their perspectives on the potential impact on business, innovation, and economic growth.
Following are the comments:
Housing for all a success with PMAY 2.0: Rishi Anand, MD 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.”
Solar sector has been at the forefront of the government’s efforts to combat climate change: Vinay Thadani, Director & CEO of Grew Energy Private Limited
“We are pleased to see the continuation of reforms. As the government emphasizes the 9 priority sectors for the next 5 years, the solar sector has been at the forefront of the government’s efforts to combat climate change and reduce reliance on traditional energy sources. Furthermore, the introduction of the PM Surya Ghar Yojana is encouraging, as it aims to add 1 crore more households by providing 300 units of free electricity every month.One positive aspect of this budget is the initiatives to provide financial support for MSMEs to shift to cleaner forms of energy, which will accelerate the growth of solar modules. The government will further facilitate investment-grade energy audit in 60 clusters, with plans to increase to 100 in the next phase. “We are confident that with adequate support granted by the central government , state government would equally support renewable energy sector to take the nation towards ‘Vikshit Bharat’.”
Healthcare sector gets booster dose: Dr. Simmardeep S Gill, MD & CEO, Sterling Hospitals
“The draft Union Budget 2024 has important takeaways for the healthcare industry. The rationalization of customs duty will help streamlining the processes and reduce costs for hospitals, allowing the industry to invest more in patient care and in cutting-edge medical technology. The exemption suggested on three critical cancer medicines from basic customs duty will provide much-needed relief to the patients and their families. The Union budget’s focus on domestic production of X-ray tubes and flat panel detectors is also a positive development that will not only help in encouraging the healthcare manufacturing sector but also increase the availability of quality diagnostic equipment within the country thereby enhancing healthcare accessibility to the larger population.”
Initiatives for self-sufficiency in pulses and oilseeds are pivotal for Atmanirbharta in edible oil sector: Priyam Patel, MD, NK Proteins Pvt Ltd
“The Union government has maintained a strong focus on enhancing agricultural productivity and resilience. The substantial allocation of Rs 1.52 lakh crore for agriculture and allied sectors underscores this commitment. Initiatives for self-sufficiency in pulses and oilseeds, particularly groundnut, sesame, and sunflower, are pivotal for Atmanirbharta in the edible oil sector. The emphasis on digital crop surveys and strengthening storage and marketing infrastructure will greatly benefit farmers, ensuring a robust and stable agricultural sector. These measures will significantly support the growth and stability of our industry, fostering sustainable development and economic growth.”
Growth-oriented and pro-development Budget: Dheeraj Hinduja, Executive Chairman, Ashok Leyland
“The Finance Minister has presented a growth-oriented and pro-development Budget for 2024-25 by focusing on national infrastructure development, urban development, sustainable planning, and inclusive growth through a tech-enabled economy. With this budget, the government aims to address key issues, provide targeted support, and sets a robust agenda for growth and development. The continued emphasis on fostering investment and enhancing road infrastructure, especially in Andhra Pradesh and Bihar will facilitate growth in the manufacturing and automobile sectors. Focus on private investment in infrastructure, mining and housing sector is also likely to boost the sale of CVs. Furthermore, reduction in duties on rare earth minerals will help in promoting sustainable mobility and this resonates with our commitment to fostering a cleaner and more sustainable future.”
Exemption of customs duties on 3 additional cancer medicines will boost healthcare: Dr. Prathap C. Reddy, Founder & Chairman of Apollo Hospitals
“The Union Budget 2024 aligns with the Finance Minister’s earlier commitments, focusing on workforce enhancement, upskilling for manufacturing, and welfare for women and girls, while also strengthening energy and infrastructure. With an alarming 1.46 million new cancer cases projected, the exemption of customs duties on three additional cancer medicines is a vital step toward easing treatment costs. Addressing gaps in cancer care requires collaboration between communities, healthcare providers, and policymakers. Public insurance programs like AB-PMJAY have made progress, but further public-private collaboration is crucial for affordability and accessibility. Additionally, adjustments in Basic Customs Duty for medical equipment components will support domestic manufacturing and lower costs for advanced technologies. Overall, the Budget 2024 sets a clear path toward a brighter and more prosperous future for India.
Abolition of angel tax will boost investments in the startup ecosystem: AltGraaf Jayaprakash, K, CGO, AI Growth Limited (Parent company of altGraaf)
“We are delighted by abolition of angel tax. This would boost investments in the startup ecosystem and create jobs. We are also delighted to see that government is moving towards parity in taxation between financial asset classes as well as non-financial assets. Additionally, credit boost to MSME sector with guarantees, reduction of corporate tax rate on foreign companies from 40% to 35% and some minor improvements to new tax regime promotes job & economic growth.”
Very progressive step in the right direction by FM: Ravi Kaushik, Executive Director, Head of Asia Investments, Flourish Ventures
“This is a very progressive step in the right direction by the finance minister. This will not only open up opportunities for startups to freely raise capital from India’s thriving middle class, but also significantly reduce disputes and tax uncertainties. We wholeheartedly welcome this step.”
It is a momentous breakthrough for urban development and housing: Ashwin Sheth, Chairman and Managing Director,Ashwin Sheth Group
“The Union Budget 2024 marks a momentous breakthrough for urban development and housing reassuring a promising future for the real estate sector. The comprehensive focus on efficient urban planning, including transit-oriented development and enhanced infrastructure for water supply, sewage, and waste management across 100 large cities, will elevate the quality of urban living. The substantial Rs. 26,000 crore investment in road connectivity projects is set to create a new growth corridor, significantly boosting real estate demand in emerging regions. We applaud the government’s progressive initiative to urge states to moderate stamp duty rates and offer further reductions for properties purchased by women. Coupled with the proposed interest subsidy scheme for urban housing loans, this will revolutionize homeownership by making it more accessible. Furthermore, the commitment to developing a transparent and efficient rental housing market is a commendable stride that will benefit both property owners and tenants. As a leading real estate developer, we recognize these measures as transformative catalysts. The Indian real estate sector, poised to reach $1.04 trillion by 2029 and contribute 13 percent to the GDP by 2025, stands to benefit immensely from this holistic and forward-thinking approach to urban development and housing.”
Rs 11.11 Lakh Crore capex to benefit real estate sector: Gaurav Pandey, Co-Chairman, FICCI Committee on Urban Development and Real Estate and MD and CEO, Godrej Properties Ltd
“The Union Budget 2024-25 reaffirms the government’s commitment to housing, urban development, and infrastructure growth, with an Rs 11.11 Lakh Crore allocation for capital expenditure accounting to 3.4% of GDP, benefiting the real estate sector in the long-term. It further outlines a comprehensive strategy of ‘Viksit Bharat’ by 2047, stressing inclusive, sustainable growth. Initiatives boosting women’s workforce participation, like specific skilling programs and reduced stamp duty rates, and additional reductions for properties purchased by women are progressive measures aimed to enhance real estate transactions, inclusivity, and financial independence. These are very important steps taken in the budget.”
₹2.66 lakh cr for rural infra will boost housing demand: Tribhuwan Adhikari, MD & CEO, LIC Housing Finance
“The Union Budget has put comprehensive focus on housing and rural development alongside the economic growth narrative. The allocation of ₹2.66 lakh crore for rural infrastructure and the construction of 3 crore additional houses under the PM Awas Yojana in both rural and urban areas are complementary and would significantly boost housing demand. Rental housing has received the attention and will improve the housing stock. Other positives are digitization of land records, PM Surya Ghar Muft Bijli Yojana, encouraging states on moderation of high stamp duty rates and considering lower stamp duty on properties purchased by women. These measures will stimulate the housing market, driving demand and fostering socio-economic growth.”
Middle-class receives marginal relief with an increased standard deduction of Rs 75,000: Raghvendra Nath, MD, Ladderup Wealth Management
“The budget announcement was largely as anticipated, emphasizing fiscal consolidation with a target fiscal deficit of 4.9% for FY 24-25. It introduces measures aimed at boosting youth employment and skills development and has allocated a significant Rs 1.52 lakh crore for agricultural and allied sectors. Infrastructure continues to be a focus area with 3.4% of GDP (totalling 11.11 lakh crore) earmarked for this critical sector. Additionally, new schemes and measures have been introduced to bolster manufacturing, services, and the energy sector. The budget also includes supplementary allocations to Bihar and Andhra Pradesh to boost capital investment. The middle class received marginal relief with an increased standard deduction of Rs 75,000 for salaried individuals under the new regime and a higher exemption limit on LTCG raised from Rs 1 lakh to Rs 1.25 lakh. Reductions in customs duties on gold and silver are anticipated to benefit domestic companies by potentially lowering the prices of these precious metals. Initial market response has been negative due to the increase in LTCG tax on listed equities to 12.5% from 10%, an increase in STCG to 20% from 15%, and higher STT rates on Futures & Options at 0.02% and 0.1%, respectively.”
The drastic revision of STCG from 15% to 20% makes sense: Shlok Srivastav, Cofounder & COO, Appreciate
“In all fairness, markets and the business ecosystem were anticipating some bid at ‘rationalisation’ of the long term and short-term capital gains tax rates. The drastic revision of STCG from 15% to 20% makes sense given that there have been renewed murmurs vis-a-vis the overheating of the derivatives market. The recent statement by the market regulator that the growth in trading volume has now leapfrogged to a macro level concern from being a micro-one was a big hint that the government was actively looking to temper and moderate the action in the derivatives segment. Having said that, one must tip their hat to the government for killing two birds with one stone with the revision in LTCG. For serious long-term investors, the increase from 10% to 12.5% would hardly make a dent in the larger accounting of gains. At the same time, it will nudge investors into entering Indian markets with a reasonably long-term outlook and encourage them to step up as actual stakeholders in the Indian growth story. Sure, the LTCG hike would be a market sentiment dampener for some time but as we know from hindsight, capital market players are going to take this move into stride and move on.”
Govt promoted fund for education loans up to ₹7.5 lakh amount is a welcome move: Nikunj Agarwal – Head – Fund Raise, Finance & Lending Alliances (Propelld)
“The Rs 1.48 lakh crore announced in Budget 2024 for education and employment and skill enhancement is welcoming news. The financial support for loans up to Rs 10 lakh for students aiming higher education in domestic institutions is a welcome move. Further, it was announced that a guarantee from a government promoted fund will be available for loans up to ₹7.5 lakh amount. Such initiatives in the education and skilling financing sectors are widely praised and can be seen as crucial steps towards fostering the potential of the youth, who are integral to the future growth of our nation. These measures are expected play a pivotal role in advancing our country’s socio-economic development as a whole.”
The budget is a mixed bag: Abheek Barua, Chief Economist, HDFC Bank
“The central focus of this budget has been on employment and associated issues like skill formation. The government’s efforts to reap India’s demographic dividend is visible in its push towards labour intensive production, its skilling initiative, incentivising formal job creation and increasing participation of women in the workforce. The budget estimates that these measures will help create 8 million jobs per year — which is line with the employment requirement that has been set out in the economic survey. The change in income tax slabs along with the direct benefit transfer to first time workers is likely to spur consumption, particularly for small ticket items, by increasing disposable incomes. The budget’s policy mix – including continued capex, job creation, support for manufacturing, agriculture, and rural development – is likely to be positive for India’s potential growth. The government made no compromise on its capex plans despite the increased allocation to some of its allies. The commitment towards fiscal consolidation with a reduction in the fiscal deficit to 4.9% of GDP in FY25 is a positive for medium-term debt sustainability. Although markets have been disappointed with the increase in the capital gains tax, this is line with the communication by different branches of the government and regulators to be cautious and prevent any excess build-up of risk in the system.”
Rs 1.48 lakh cr allocation for education, employment and skilling is indeed the need of the hour: Dhruv Marwadi, Trustee, Marwadi University:
“The Union Budget FY 2024-25 proposes important measures to increase employment, enhance skilling, and education in India. The budgetary allocation of Rs 1.48 lakh crore for education, employment and skilling is indeed the need of the hour to shape a young, skilled workforce for New India.
For instance, the new skilling scheme which proposes to upgrade 1,000 Industrial Training Institutes (ITIs) and train 1 crore youth over a five year period is a key step to building a skilled workforce for India in sunrise sectors and new and emerging industries.
Making higher education accessible to the youth was yet another positive from the Union Budget. Revision of the Model Skill Loan Scheme and financial support for education loans up to Rs 10 lakh will play a key role here. At Marwadi University, we applaud these initiatives and are committed to supporting them through our innovative programs and industry partnerships.”
Abolition of the angel tax is a landmark move: Rishabh Jain, President, Swarrnim Startup and Innovation University
“The budget clearly spells out key national priorities of focus on employment, skilling, innovation and research and development. An allocation of Rs 1.48 lakh crore towards education, employment, and skilling will empower the youth.
The PM Internship Initiative which aims to skill 1 crore youth over 5 years is a commendable move by the government, offering both – a practical experience and financial support to young entrepreneurs.
The abolition of the angel tax for all investors is a landmark move to strengthen the Indian startup ecosystem. This will make way for easy access of early and growth-stage funds to startups. The budget clearly prioritises skilling and innovation and research, which makes way for strengthening the Make in India initiative of the government, building an industry-ready and efficient workforce and a special focus on research.
The operationalisation of the Anusandhan National Research Fund and the Rs 1 lakh crore financing pool for private sector-driven research will significantly enhance R&D capabilities in India and also prove useful for the startups.”
