Industry Budget 2024 Highlights: Budget sets stage for driving personal consumption, says India Inc; Here is more on what corporate India feels about Sitharaman’s Budget

George Alexander Muthoot, MD, Muthoot Finance, said, “The Union Budget 2024 focuses on the comprehensive development of the economy by adhering to fiscal prudence, boosting infrastructure growth, and through continued emphasis on four major pillars of society – the poor, women, youth and the farmers. The massive impetus on capex expenditure outlay of Rs 11.11 lakh crore is a testimony to the government’s focus on boosting investment activity and further strengthening fiscal health of the economy. As the largest gold loan NBFC in India, we are particularly encouraged by the government’s proposals to give priority to MSMEs, women entrepreneurs and the agricultural sector. The credit guarantee scheme is going to significantly enhance credit access for MSMEs. This scheme aligns perfectly with our commitment to supporting small businesses and driving entrepreneurship, particularly among women. Further, the FM has also focused on boosting affordable housing under PM Awas Yojana offering assistance of Rs 2.2 lakh crore in the next five years. This will help in resolving various housing challenges for various lower and middle class families.”

Akhil Jain, Executive Director, Madame, said, “The Budget places particular focus on employment, skilling, MSMEs, and the middle class. A provision of Rs 1.48 lakh crore for education, employment and skilling has been made. The incentive up to Rs 3,000 per month for 2 years towards EPFO contribution for each additional employee will provide financial help to the labour intensive garment industry.

Though the sector was also looking forward to announcements related to the “Ease of Doing Business” through the implementation of the National Retail Trade Policy, a reduction or rationalization of GST rates, the reintroduction of the Technology Upgradation Fund Scheme (TUFS) to encourage innovation, and an updated Production-Linked Incentive (PLI) scheme to address existing challenges. These additional measures would have significantly contributed to the industry’s growth and competitiveness.

However, the allocation of Rs 1.48 lakh crore for education, employment, and skilling is a positive step. The emphasis on employment, skilling, MSMEs, and the middle class is commendable.”

Puneet Chandok, President, Microsoft India & South Asia, said, “The Union Budget and Economic Survey’s emphasis on technological innovation and digitization sets India on the fast track to becoming an ‘AI-first nation,’ opening new opportunities for collective and inclusive progress from commerce to communities. Leveraging a digitized economy and an AI-ready workforce aligns well with the budget’s priorities towards employment & skilling, innovation, research & development, and productivity & resilience in agriculture. With a diffusion rate surpassing that of any previous technology, India leads the world in AI skill penetration and talent concentration rates. This progress is remarkable, with human capital, businesses, and public sector organizations rapidly adopting new technologies. Aligned with the ‘India AI Mission’ and ‘Viksit Bharat 2047,’ our commitment includes partnerships with the Government of India, various industries, and diverse communities for skilling, training, and development initiatives. This involves equipping 2 million people with AI skills by 2025. We are also transforming agriculture in India working with our partners to implement modernized, AI-driven Agri-Tech solutions to help farmers manage their farms and production and overcome challenges.”

Kapil Makhija, MD & CEO of Unicommerce, said, “The government’s focus on building a digitally enabled India is evident in the measures announced during Budget 2024. Encouraging the country’s e-commerce sector by reducing TDS to 0.1% for e-commerce operators, supporting MSMEs by setting up e-commerce export hubs, leveraging the digital footprint of online enterprises to evaluate credit eligibility, elimination of equalization levy for supply for goods and services via e-commerce are notable changes that will support growth of India’s e-commerce sector.”

Gurpreet Sidana, CEO, Religare Broking Ltd, said, “The Finance Minister’s 2024-2025 budget strikes a careful balance between fostering economic growth and ensuring fiscal prudence. The budget emphasizes support for MSMEs, youth employment & skilling, and relief for the middle class, while maintaining a strong commitment to infrastructure development. Tax reforms and financial sector improvements are also central, aiming to streamline the economic framework and boost overall economic performance. Although the initial market response to changes in securities transaction tax (STT) on futures and options, along with adjustments in short-term and long-term capital gains taxes, was mixed, the market has since shown resilience. Investors are demonstrating confidence in the long-term outlook, using the budget as an opportunity to accumulate quality stocks. This optimism reflects a broader belief in the budget’s potential to drive sustainable market growth and economic stability.”

Krishnan Sitaraman, Senior Director & Chief Ratings Officer, CRISIL Ratings, said, “The Union Budget lays emphasis on the critical role that the financial sector needs to play in supporting overall economic growth, with the government expected to bring out a financial sector vision and strategy document. This is expected to set the agenda for the next 5 years and provide a framework to guide the work of the government, regulators, financial institutions and market participants. While the specific contours of the strategy are awaited, the Budget has created enabling provisions to support credit flow to key sectors of the economy, with focus on the DFM troika – i.e., digital or tech-enabled financial services, financial inclusion and MSME-support initiatives.”

Manish Sharma, Chairman, Panasonic Life Solutions India and South Asia, said, “In the last few budgets, we have seen the Government take a structured approach and enable a growth-oriented environment for various sectors such as agriculture, infrastructure, Digital platforms, Skilling, Manufacturing among others. It is good to see this continue in the current Union Budget with nine priority areas covering farmers, women, youth and the poor. The fundamental of the Budget is for improving and catalyzing the rural economic growth of the country which logically creates a rub-off on the overall growth of the country, simultaneously keeping the capex equal to what it was in the interim budget.”

He further added, “The budget also focuses on critical aspects of creating jobs in the manufacturing and services domain. In my view, while in the recent past, a lot of impetus was given to large scale manufacturing, the Government has brought the focus back on MSMEs to drive labour-intensive manufacturing. MSMEs will now stand to benefit from the credit guarantee scheme which will bolster their growth enabling them to purchase critical machinery and equipment without collaterals thus contributing to the Make-in-India initiative.”

He also welcomed the rationalization of custom duties for essential electronic components towards enhancing manufacturing. “These steps will streamline operations, boost manufacturing capabilities, and make India an attractive destination for electronics production,” he said.

Ghazal Alagh, CIO & Co-founder, Honasa Consumer Limited, said, “The government’s latest budget marks a significant leap forward for the startup ecosystem, especially with the abolition of the angel tax. This move will provide much-needed relief and encourage more investments, giving the startup community a substantial boost. The focus on digital transformation and AI integration is particularly exciting for the beauty and personal care industry. Increased support for technological advancements and the push for digital infrastructure will enable startups to leverage cutting-edge technologies to enhance their products and customer experiences.”

Ketan Kulkarni, Chief Growth Officer, Allcargo Group, said, “Finance Minister Nirmala Sitharaman provided enough fuel for India’s current growth ride. With the budget focussing specially on job creation and skilling, agriculture, infrastructure, research and technology, the ride should gain momentum. Without changing the capex allocation which was significant compared to the revised estimates, increased outlays in many sectors like infra and manufacturing will boost spending. The government has also reiterated its determination to pull down the fiscal deficit in the coming years. As every sector has something to cheer about in general, logistics also should gain from the overall growth trajectory. The positive spurs makes the budget balanced, positive and forward-looking.”

Himanshu Kohli, Co-founder, Client Associates, said, “The budget‘s overall tone was to promote economic growth and inclusive development. The government reaffirmed India‘s strong macroeconomic fundamentals despite a challenging global economic environment. Therefore, the critical priority areas laid down in the budget were all geared towards promoting the economy‘s long-term growth, which is also inclusive. While changes in the capital gains tax may have a short-term impact on the markets, they are expected to contribute to a more rational investment environment in the long run. We have made tremendous progress in the startup ecosystem, and the government’s decision to abolish the Angel tax will be a big boost for investments and the growth of the startup culture in India. The global wealth teams have started focusing on India’s bond market a lot; we had expected more measures in this budget to strengthen our corporate bond market.”

Vinish Bawa, Partner and Leader Telecom , PwC India, said, “With the increase in the basic customs duty of PCBAs used in various telecom equipment, the Government has further incentivised the domestic manufacturing ecosystem, aligning the goals of the telecom sector with its Atmanirbhar Bharat vision. However, this development could also lead to a slowdown in the expansion of 5G services in the country since they are dependent on imports of specific equipment. Operators will be more cautious in their spends due to the extra duty which is levied and can increase their financial burden.”

Rampraveen Swaminathan, Managing Director and CEO of Mahindra Logistics Ltd, said, “The Union Budget 2024-25 outlines a visionary roadmap for India‘s economic growth reflecting a visible multiplier effect on the economy. Prioritizing national infrastructure development with significant allocation of 3.4% of GDP towards capital expenditure and regional equity with ‘Purvodaya’ – an initiative by the government focusing on the eastern region and development of industrial corridors aligns seamlessly with our mission to create a nationwide logistics network.”

He further added that the increased emphasis on road connectivity projects, investment-ready industrial parks, and energy transition initiatives will enhance logistics efficiency, reduce transportation costs, and promote sustainable practices. He also said that the focus on Digital Public Infrastructure in e-commerce and logistics presents exciting opportunities for innovation and efficiency gains.

“The budget‘s balanced approach to infrastructure investment, technological adoption, and sustainable practices lays a strong foundation for India’s emergence as a powerful global logistics hub,” he added.

Sanjay Gupta, Chairman & Managing Director of APL Apollo Tubes Limited, said, “I am thrilled by the government’s forward-looking budget and its unwavering commitment to infrastructure development. The recent announcements signal a new era of growth and progress for our nation. First and foremost, the allocation of resources toward infrastructure projects is a game-changer. The infusion of funds into roads, bridges, railways, and urban development will not only enhance connectivity but also create a ripple effect across industries. Furthermore, the recent launch of the PM Surya Ghar Muft Bijli Yojana—an initiative to install rooftop solar plants for 1 crore households—aligns perfectly with our commitment to sustainability. As we move forward, APL Apollo stands ready to support the nation’s infrastructure ambitions. We’re committed to building a stronger, greener India—one steel beam at a time.”

Rakesh Goyal, Managing Director, Probusinsurance.com, said, “For the insurance sector, there weren’t any big announcements as expected by the industry, like a reduction in the goods and services tax (GST) on premiums or an increasing net of Ayushman Bharat to the middle-class segment. However, the budget has proposed a reduction of 5 percent to 2 percent of tax deducted at source (TDS). This move will result in fewer TDS claim filings and higher payouts for policyholders as the policy matures. However, the middle class, in particular, had high expectations for today’s budget to provide some tax relief. However, the announcement of an increase in both short-term and long-term gains on specified financial assets served as a dampener.

Dr Anish Shah, President, FICCI, said, “There is continuity in policy announcements. The focus on simplification and ease of doing business, boost to manufacturing, focus on research and innovation, thrust on public capex, use of technology, support to women, farmers and MSMEs, and promoting sustainability are the key themes that resonate once again in this Union Budget proposals. The focus areas of budget are very much in line with the FICCI’s key priorities for the industry and we are happy to note that many of FICCI’s suggestions have been considered in this budget, as seen in the proposals for accelerating agriculture research, enhancing participation of women workforce in manufacturing, factor market reforms for improving manufacturing competitiveness as well as measures to promote green economy.”

Shachindra Nath, Chair of BFSI Committee, PHDCCI, said, “Today’s Union Budget is a remarkable step forward for employment, MSMEs, middle class and women. 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 the priority sector to provide more credit and continue building our nation.”

Abhik Chatterjee, Managing Director and Partner and leads Tech and Digital Advantage, BCG Asia Pacific, said, “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.”

Anuj Rathi, Chief Business and Growth Officer, Cleartrip, said, “Today’s budget announcement is a welcome move that promises to strengthen India’s position as a global hub for spiritual tourism. The continued investment in developing corridors will create a multiplier effect, stimulating the local economy and generating job opportunities. This initiative will add to the momentum that the industry gained from the Ayodhya boom earlier this year. The enhanced focus on infrastructure and road connectivity will make travel, especially road transportation, more accessible and affordable. These initiatives will further bolster India’s status as a premier travel destination facilitating economic growth.”

Amit Jatia, Chairperson, Westlife Foodworld, said, “With a sustained focus on creating a successful ‘Vikshit Bharat’, incorporating substantial allocations for agriculture and rural development in the Union Budget 2024-2025, is a crucial step towards bolstering India’s economic growth and bodes well for the overall foodservice industry. Government’s initiatives to enhance productivity and develop climate-resilient crops to empower our ‘Annadata’, is sure to fortify our nation’s food supply. In addition to this, promotion of vegetable production and improvements in the supply chain for collection, storage, and marketing will benefit the entire foodservice ecosystem. The plan to establish street food hubs and boosting tourism will further drive consumption and community engagement. This budget represents a clear strategy for a strong economic future, and we are eager to contribute to and thrive under these progressive measures.”

Rajat Agrawal, CEO, Barista Coffee, said, “Budget 2024 is forward looking and looks at creating employment opportunities with direct benefits to the corporates by compensating with payroll cost of new joiners, this would further assist a new set of retail client base. Further, there is a small window of tax savings with new tax rates which may also result in more money in hand of the consumers. Focus on improving the infrastructure profile and focused allocations on the budget will further improve serviceability at the last mile and create larger penetration for the retailers. At large no direct incentivisation for retails and F&B, seeking some way of hope through some indirect incentives with money in hand of consumers.”

Murali Iyer, CFO, IKEA India, 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. Additionally, the focus on climate sustainability through a roadmap for transitioning industries is most welcome. We believe the focus on manufacturing, youth, skilling, employment generation, sustainability, and women empowerment will lead to a more inclusive growth and economy.”

Subahoo Chordia, Head – Real Assets Strategy, Edelweiss Alternatives, said, “The government signalled policy continuity and stability maintaining its allocation towards the infrastructure sector at INR 11+ lakh crores i.e. 3.4% of GDP. Further, continued focus on renewable energy development including development of taxonomy augurs well for the sustainability segment. Reduction in the duties towards critical minerals and elements is expected to boost the EV and renewable energy segments and bode well for a cleaner future and sustained economic growth.”

Ravi Kapoor, Partner – Retail and Consumer, PwC India, said, “Union Budget 2024 sets the stage for driving personal consumption by making agriculture incomes more robust, extending credit for the creation of formal employment opportunities, setting the economy on a long-term growth path through upskilling, boosting domestic consumption through direct tax and capital gains tweaks, and promoting tourism. At the same time, there is a continued focus on investments in physical infrastructure, thus ensuring that India drives global economic growth in the years to come.”

KB Kachru, Chairman Emeritus and Principal Advisor, Radisson Hotel Group South Asia & President – HAI, said, “Tourism and hospitality play a crucial role in the growth of the Indian economy. The continued focus on government spending on infrastructure development augurs well for the sector. Improved infrastructure would translate into better connectivity, which will be beneficial to the promotion of tourism. The development of the eastern region, temple corridors in Gaya and Bodhgaya, and identification of Nalanda as a key tourism site continue to demonstrate the government’s intent to utilize the potential of tourism. Regrettably, however there has been no policy announcement to facilitate the development of hotels and promotion of inbound tourism. The announcement of GST simplification, and comprehensive review of the Income Tax Act provides some hope for the sector that has been seeking rationalization of taxes. The benefits to individuals on taxation will augment the spending power. The focus on skilling and incentivizing employers for creating jobs are other positives that will benefit all sectors.”

Saugata Gupta, MD & CEO, Marico Limited, said, “With the Union Budget 2024-2025, the Government has taken strides towards realizing the Viksit Bharat vision by 2047. The nine-point agenda laid out by the FM will address and uplift several economic and social reforms in India, if well executed. The outlay of INR 2.66 Lakh Crore for rural development, and INR 1.52 Lakh Crore for agriculture and allied sectors will help in stabilizing rural economies and ensuring farmers have access to essential resources. The Budget also highlighted the need for self-sufficiency in pulses and oilseeds such as mustard, groundnuts, sesame, soyabean, and sunflowers, working towards strengthening their production, storage, and marketing. The Budget allocated substantial funds towards infrastructure development which will enhance supply chain efficiency, facilitating wider distribution networks. Emphasis on digital infrastructure and connectivity enhancements is another key positive.”

Anupama Reddy, Vice President & Co-Group Head – Corporate Ratings, ICRA Ltd, said, “The continued focus on PMAY – Urban with an investment of Rs. 10 trillion over the next 5 years is likely to result in a positive for the affordable housing real estate segment. Further, the moderation in the stamp duty rates will have a positive impact for home buyers. However, the proposed revision in the personal income tax structure for individuals opting for the new tax regime will not have a material impact on the sector. Considering the long-term returns on the residential real estate sector, despite a reduction in the long-term capital gains tax rate, the removal of indexation benefit at the time of sale of property is likely to result in a higher tax outgo. Hence, this is a negative for the sector.”

Nirvaan Birla, Managing Director of Birla Open Minds, said, “We commend the Honourable Finance Minister for presenting a comprehensive and visionary Union Budget 2024. The focus on employment, skilling, and MSME development is a commendable step towards creating a more skilled and entrepreneurial workforce. The initiative to skill 20 lakh youth and provide a one-time wage for first-time employees will empower our youth and drive economic growth. Enhancing the Mudra Yojana Loan limit to INR 20 lakhs will support MSMEs, fostering innovation and entrepreneurial expansion.”

Sanjeev Krishan, Chairperson, PwC in India, said, “The budget highlights India’s next leap forward – empowering the very nucleus of the nation – Indian citizens. Right from driving the participation of women in the workforce to enhancing the employability of the youth across the nation, the focus on building a future-ready workforce is evident. With the right incentives and fiscal support, the Government has paved a clear path towards a Viksit Bharat – bringing together the power of the private and public sector, and reinforcing this with our distinctive demographic advantage.”

Zarin Daruwala, CEO, India and South Asia, Standard Chartered Bank, said, “The Finance Minister underscored the Government’s commitment to fiscal prudence by reining in the deficit to 4.9% of GDP as against 5.1% presented in the interim budget. This will result in lower Government borrowing, and coupled with index inclusion flows, will reduce interest rates across the economy. Leveraging technology platforms to strengthen Insolvency and Bankruptcy Code (IBC) and setting up of additional tribunals will lead to transparency and efficiency, benefitting the banking sector. For MSME – the Guarantee Schemes, encouraging of new credit assessment models, and credit support during stress periods are key enablers to one of the largest providers of employment in the country.”

Dhaval Selwadia, Partner, NA Shah Associates, said, “The proposed reduction of tax rates for foreign companies from 40% to 35% is expected to boost Foreign Direct Investment (FDI) in India. This move aims to make India a more attractive destination for foreign investors, encouraging them to set up operations and create jobs in the country. The reduced tax rate will help India compete with other emerging markets and foster a more business-friendly environment.”