Most of the Budget expectations have been met by the Finance Minister: India Inc

In pursuit of ‘Viksit Bharat’, Finance Minister Nirmala Sitharaman in her Budget presentation in Parliament earier today, stated that this budget envisages sustained efforts on the following 9 priorities for generating ample opportunities for all:

1. Productivity and resilience in Agriculture
2. Employment & Skilling
3. Inclusive Human Resource Development and Social Justice
4. Manufacturing & Services
5. Urban Development
6. Energy Security
7. Infrastructure
8. Innovation, Research & Development
9. Next Generation Reforms

The Minister added that subsequent budgets will build on these, and add more priorities and actions.

This budget details some of the specific actions to be initiated in the current year towards fulfilment of these priorities with potential for transformative changes. The budget also covers some of the previously made announcements with an intent to strengthen them and step up their implementation for expediting the government’s journey towards the goal of Viksit Bharat.

Leaders of the Indian industry have given a thumbs up to the budget, especially praising the efforts to put more money in the hands of the people and have hailed it as a progressive and balanced budget.

Aditya V Agarwal, Director, Emami Group:

“Budget 2024-25 is holistic in nature offering a level playing ground for many segments of the society. Both direct tax relaxation under the new tax regime and the reform initiatives are directed toward sustainable growth and empowerment. Focus on employment and upskilling in addition to scheme benefitting women is commendable. Initiatives towards achieving self-sufficiency in pulses and oilseeds, etc., are progressive moves which would benefit the industry.”

Harsha V Agarwal, Vice President & Managing Director, Emami Limited:

“The Union Budget 2024 is a progressive and balanced budget. It focuses on multiple sectors including agriculture, rural development, MSMEs, women, employment and skill development is anticipated to spur the economic growth. With a clear emphasis on capital spending to generate growth and a strong focus on employment along with some of the tax benefits, we expect consumption to improve. Further, simplification of taxation is also a very welcome move.”

Mayank Shah, Vice-President, Parle Products:

“We feel that most of the expectations we had from the budget have been met by the Finance Minister. Notable among them is putting more money in the hands of consumers through job creation and increased infrastructure spending. The Finance Minister has also facilitated more disposable income to drive demand through changes in the tax regime, including a higher standard deduction which has gone up from Rs 50,000 to Rs 75,000 for the new tax regime. Additionally, there is a provision for a higher deduction under NPS accounts, increasing the employer contribution from 10% to 14% for the new tax regime.

The government’s strategy appears to push taxpayers to move towards the new tax regime by revising tax slabs, which means higher slabs of taxes are applicable at higher income levels if no deductions are taken. The revised tax slabs now include 5% on income from Rs 3-7 lakh, 10% on income from Rs 7-10 lakh, and 20% on income from Rs 12-15 lakh, with only 30% applicable above Rs 15 lakh. With this adjustment, we expect consumers to spend more because they would have higher disposable income in their hands. So I think that the government has done a great job by priming them. Ensuring that there would be a good increase in demand for goods as a result of higher disposable income in the hands of consumers.

Another significant highlight of the budget is the emphasis on creating employment. The government has introduced a new internship scheme providing Rs 5,000 per month, which will not only improve employability for freshers but also offer opportunities to those struggling to find jobs due to a lack of experience. Additionally, a direct benefit transfer of Rs 15,000 will be given to all employees of corporate India registered with EPFO, further supporting job creation and employability.

On the infrastructure front, the government has announced substantial outlays, including Rs 1.52 lakh crore for agriculture and allied sectors and Rs 2.66 lakh crore for rural development. For urban infrastructure, a total of approximately Rs 10 lakh crore has been allocated. These investments are expected to drive job creation and economic growth. Furthermore, the increase in Mudra loan limits from ₹10 lakh to ₹20 lakh will support small businesses and entrepreneurs. Overall, the budget's emphasis on infrastructure and employment generation is likely to significantly boost demand for FMCG products.”

Krishnarao Buddha, Senior Category Head, Parle Products:

“Budget 2024 genuinely focused on big steps forward. It emphasizes key aspects like generating employment, skilling India, enhancing skilled manpower, and supporting MSMEs and the middle class. The initiatives to promote agriculture, improve oilseed production, and enhance vegetable supply chains are fantastic.

The focus on employment generation and skilling, including wage support and EPFO contributions for new hires, will create numerous opportunities for the youth. Additionally, the plans for housing, internships, and tax reforms are commendable. Reducing corporate tax and increasing the tax slab exemption will likely attract foreign companies towards India and increase disposable income for the middle class. Overall, one can expect this budget to result in increased savings for consumers, a conducive environment for spending, improved lifestyles, and greater prosperity for the country.”

Saugata Gupta, MD & CEO, Marico Limited:

“With the Union Budget 2024-2025, the Government has taken strides towards realizing the Viksit Bharat vision by 2047. This is a forward-looking roadmap that will accelerate India’s economic journey holistically. 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 Rs 2.66 lakh crore for rural development, and Rs 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. Several measures geared towards the upskilling of the youth, encouragement to employers and first-time employees will help in job creation for the next generation. 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. Further, taking a concrete step forward towards reforming the tax code, the proposed deductions for salaried individuals and pensioners shows the Government’s clear focus on stimulating disposable incomes of the middle class, thereby driving consumption.

In all, I believe the Budget is comprehensive and indicates the Government’s resolve towards fiscal prudence and inclusive growth.”

Falguni Nayar, Founder and CEO, Nykaa:

“The encouraging initiatives announced for e-commerce in the Finance Minister’s budget highlight the sector’s vital role in retail and its contribution to the Indian economy. The abolition of the angel tax provides a significant boost for start-ups, propelling innovation and investment. With Retail Tech being a key area in start-ups, this move is poised to drive growth in the digital economy. Overall, the budget presents a robust intellectual framework, focusing on employment, skilling, MSMEs, and the middle class. It sets a promising tone for a Viksit Bharat, emphasizing resilience and inclusivity for India’s economic future.”

Murali Iyer, Country CFO, IKEA India:

“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.”

Dr Sangita Reddy, Joint Managing Director, Apollo Hospitals Group:

“The budget announcement demonstrates the Government’s commitment to enhancing the healthcare system through a holistic approach. The change in the Basic Customs Duty (BCD) for X-ray tubes and flat panel detectors under the phased manufacturing program is a great strategic move. This will reduce costs and give a boost to domestic manufacturing capacity of India. Further, announcement of exemption of customs duties on three cancer medications is a notable step in improving treatment accessibility and affordability for a major health challenge. This move shows the Government’s dedication to addressing the cancer burden and alleviating patient financial stress. In the interim budget, the government allocated Rs 90,171 crore for the health sector, this investment was crucial for developing sustainable healthcare strategies across India. Additionally, the budget had already announced health coverage for individuals over 70 up to Rs 5 lakh and an innovation fund, which are critical for advancing healthcare. These moves have helped the healthcare sector to strengthen infrastructure.”