Industry leaders across sectors welcome Union Budget 2024-25

Press Release, Jul 23, 2024, 5:36 PM IST

The Narendra Modi government tabled the Union Budget for 2024-25 today. Union Finance Minister Mrs Nirmala Sitharaman for the 7th time tabled the Union Budget. Industry leaders from across sectors have welcomed the budget. The gems and jewelry sector is already witnessing a positive impact, while MSMEs are looking at strong growth based on the focus on infrastructure. Here’s what industry leaders are saying about the budget.

As an educationist, it is highly encouraging to see the budget’s focus on skill development with substantial investments aimed at revamping our education system. The access to easy financial assistance will help youth and students particularly from underserved areas to train themselves in skills to meet employment requirements of the new economy. These initiatives aim to alleviate financial barriers faced by students seeking advanced education, ensuring broader access to quality educational opportunities. The budget has also offered a boost in R&D and education leading to uniformity in high-quality education, and training of a competent workforce across the nation. We also believe that the provision for 1 crore youth to gain industry experience through internships with leading companies will bridge the gap between theory and practice. Overall, integrating financial support for education, robust internship opportunities, and a strong focus on skill development, these measures not only empower our youth but also lay a solid foundation for sustainable growth and innovation. Going forward, we also need to create an enabling environment to let the private sector come forward and establish new institutions.-Niru Agarwal, Managing Trustee, Greenwood High International School

The real estate sector has been witnessing landmark growth in recent times and hence we appreciate the targeted measures by the government to further push real estate growth and unlock its full potential. The government’s concentrated efforts on infrastructure development promises to significantly enhance housing demand and benefit around 250 ancillary industries, generating numerous job opportunities and bolstering overall economic growth.

The generous financial assistance for urban housing and provision for more houses under PMAY scheme will go a long way to address the housing needs of urban poor and middle-class families. Additionally, the further reductions in duties for properties purchased by women will bolster housing sector. From a buyer’s perspective, addressing the crucial issue of lowering stamp duty will make housing more accessible.

While the budget has lent an indirect boost to real estate, it could have fulfilled a few key expectations for the sector. The budget could have also offered a degree of relief to first-time homebuyers to stimulate the real estate sector. Going forward, the sector is in urgent need of tax breaks, single-window clearance, industry status tag etc which remains paramount for sustaining the upward trajectory of the Indian real estate market. We believe that through these additional supportive regulatory policies, the real estate sector will play a vital role in achieving India’s $5 trillion economy goal.–Ramani Sastri – Chairman & MD, Sterling Developers Pvt. Ltd

In the backdrop of the strong economy, the Union Budget 2024 has laid strong focus to drive India’s infrastructure growth, with significant investments which will push both residential and commercial real estate demand. The investment in infrastructure is deemed vital as its cascading impact encompasses numerous sectors as well as job creations. The announcement on abolition of angel tax for all classes of investors is a great boost for the start-up sector and will encourage the coworking space as this will now invite large investment without taxation concern. The other announcement on ease of business conditions is also welcome as this would make the environment for companies less regulatory.

The credit guarantee scheme and technology support to MSME’s is also positive as this would improve the sector which has been ailing from low credit access and poor technology. Taking into consideration the popularity of hybrid working, the budget could have met a few expectations of coworking sector – particularly lower GST rate for small-scale coworking clients and the establishment of the single-window clearance system. An important requirement for the coworking industry has also been Lower/Concessional rate of TDS which will improve the working capital.

Going forward, we hope that the government looks at addressing regulatory concerns and encouraging more coworking firms to open-up through a series of both financial and non-financial incentives and ensure faster economic growth. As we move forward, the demand for coworking spaces is only set to witness greater traction from companies across segments.-Manas Mehrotra, Founder, 315Work Avenue, a leading coworking firm

“The Union Budget 2024 demonstrates a strong commitment to advancing education by allocating Rs 1.20 lakh crore for education, employment, and skill development. The introduction of the e-voucher scheme, which provides loans of up to Rs 10 lakh for students attending domestic institutes, will significantly help those facing financial barriers to higher education. Preparing students to be industry-ready is crucial, and the initiative to offer opportunities for 1 crore youth over five years in 500 companies will provide invaluable real-time experience. This effort will help bridge the talent gap across all sectors, especially as nearly 30 lakh youth enter the workforce. Additionally, aligning new courses to meet emerging needs is a necessary step to ensure our students meet global education standards.”-Syed Sultan Ahmed, Founder and Chief Learner, LXL Ideas, School Cinema.

“The Union Budget is a significant stride towards enhancing job opportunities, boosting healthtech and promoting women participation in the workforce. The focus on women announced in this budget, is a huge step towards empowering women to take the reins and actively participate in the economic, social, and political spheres, thereby fostering gender equality and inclusive growth. The enhancement of the e-Shram portal will democratize access to training resources and connect job aspirants with potential employers, ensuring that individuals from all regions can upskill and secure better job opportunities. This budget lays a strong foundation for building a future-ready workforce equipped with the skills needed to thrive in a rapidly evolving job market. The Finance Minister’s roadmap aligns perfectly with our mission to empower women, advance healthtech, and create sustainable job opportunities.”
-Dr. Chandrika Kambam, Founder and Managing Director, Anastomos, a Healthtech Platform.

The Indian economy is set to embark on a transformative journey, propelled by a masterful blend of growth, strategic foresight, and robust investment. The Government has crafted an exemplary roadmap for the nation’s comprehensive development, with a primary focus on enhancing infrastructure and advancing employment and youth upskilling.
A landmark allocation of ₹89,287 crore signifies a decisive boost for the healthcare sector. In a period of maintaining the status quo, the government is taking bold strides with initiatives outlined in the Interim Budget 2024, including the establishment of new medical colleges, the promotion of vaccines for cervical cancer, expanded maternal and child care schemes, and the innovative “You Win” platform for immunisation.
Additionally, the proposed reduction in customs duties on X-ray tubes and flat panel detectors for domestic X-ray machine production, alongside the exemption of three cancer medicines from customs duty, marks a significant relief for cancer patients nationwide. This progressive budget underscores a commitment to fostering inclusive growth within the healthcare sector, striving to bridge the rural-urban divide and ensure equitable access to essential services. -Dr Azad Moopen, Founder & Chairman, Aster DM Healthcare

“The Budget 2024 has set the stage for a transformative leap in India’s economic and financial landscape. The streamlining of Foreign Direct Investment regulations, is going to add on the ease of doing business with a clear emphasis on utilizing the Indian Rupee for international ventures, marks a pivotal shift. Employment linked upskilling through schemes as a part of the PM’s scheme is expected to benefit 2.1 lakh youth in the country. Along with job creation in the manufacturing sector will be incentivized through a scheme linked to the employment of first-time employees, it marks a positive step towards a better employment opportunity and a stronger economy.

The MSME sector has received a shot in the arm with the credit guarantee schemes, facilitating term loans for MSMEs for the purchase of machinery and equipment without collateral and guarantee. This guarantee fund will provide guarantees of up to Rs 100 crore. The increase in long-term Capital Gains tax from 10% to 12.5% introduces a modicum of uncertainty for equity investors, although the impact on governmental revenue remains relatively modest.

Startups stand to gain significantly from the abolition of the Angel Tax, thereby facilitating increased funding from angel investors. Foreign enterprises will benefit from a reduced tax rate of 35%, down from 40%. Furthermore, the promise of a comprehensive review of the Income Tax Act, 1961 heralds a series of anticipated reforms that will undoubtedly bring substantial benefits to the financial sector.” – Swati Saxena, Founder and CEO, 4Thoughts Finance.

“The Gems and Jewellery sector has made significant contributions to India’s GDP, and we appreciate the announcements made in the Union Budget for this sector. The proposed reduction in customs duties to 6% on gold and silver, and 6.5% on platinum, will enhance sales by making these precious metals more affordable. The implementation of safe harbor rates for the diamond-cutting industry, for foreign mining companies selling rough diamonds in India, will stimulate growth, boost consumer spending, and increase global competitiveness. Furthermore, the reduction of TDS from 1% to 0.1% for e-commerce operators will substantially support the industry’s expansion. These new measures will not only strengthen the valued investment of Indian households in diamonds but also add to their emotional significance,”- Amit Pratihari, MD, De Beers Forevermark.

“The Union Budget has provided measures that will bolster the healthcare industry by promoting affordability, accessibility, and self-reliance in medical technology and treatments. The announcement of the changes in the Basic Customs Duty (BCD) on x-ray tubes and flat panel detectors for use in medical x-ray machines will provide advanced diagnostic tools at more competitive prices, leading to improved diagnostic services and patient outcomes. Operationalizing the Anusandhan National Research Fund will support basic research and prototype development in healthcare, fostering the creation of innovative treatments and advanced diagnostic techniques. Increased R&D funding will improve patient outcomes and drive private sector investment in healthcare solutions. Enhanced research and innovation will develop advanced healthcare infrastructure, address pressing health challenges, retain top talent, and boost India’s global competitiveness in healthcare. The focus on women and youth empowerment through skill enhancement opportunities will also help bridge the talent gap in the healthcare sector,”- Bharath Balasubramaniam, President – Operations & Administration, Sankara Eye Foundation India