India's Budget 2024: A Mixed Bag of Optimism and Challenges for Businesses

Industry Insights: Leading Voices on India's Post-Budget 2024

Dive into the thoughts and reactions of industry leaders as they analyze and respond to India's 2024 budget. This collection of quotes offers a unique glimpse into the perspectives of top executives, entrepreneurs, and business experts. Understand how various sectors are poised to navigate the new economic landscape, the opportunities they foresee, and the challenges they anticipate in the wake of the budget announcements. Voices of Change: Key Quotes on India's Post-Budget 2024 Reactions Industry Leaders Share Insights: Post-Budget Reactions and Future Outlook Industry Leaders React to the Latest Budget: Insights and Analysis L Srinath Reddy, Managing Director, Raminfo Limited "Budget 2024 reflects a forward-thinking approach, particularly in supporting MSMEs and youth skill development. The introduction of a credit guarantee scheme and enhanced Mudra loan limits will significantly bolster the MSME sector, providing much-needed financial support and stability. As an MSME, we too are eyeing global expansion with young talent and innovation at the heart of our plans. This budget aligns with our vision too. The comprehensive internship scheme, aiming to offer internships in top companies to one crore youth over five years, is a game-changer. It will provide invaluable real-world experience and skill enhancement opportunities for our young workforce. Employment-linked skilling initiatives and the three employment-linked incentive schemes, focusing on job creation and support to employers, demonstrate a strong commitment to reducing unemployment and encouraging industry growth. Abolishing the angel tax for all investor classes is a significant move to boost investment and entrepreneurial activity in the country." Karun Tadepalli, CEO and Co-Founder, byteXL "Cognizant of the transformative power of education and skills in shaping our nation's future, the policymakers are aiming to empowering youth. By offering financial support for higher education loans up to Rs 10 lakh with a 3% interest subvention and e-vouchers for one lakh students annually, access to learning opportunities is being democratized. Concurrently, the upgrade of 1,000 ITIs using the hub and spoke model, aligned with industry needs, underscores our dedication to equipping our workforce with relevant skills. With an allocation of Rs 1.48 lakh crore towards education, employment, and skilling initiatives, 20 lakh youth over the next 5 years will be skilled. Internships for 1 crore youth in top companies, supported by CSR initiatives, will bridge the gap between academia and industry, fostering practical knowledge and career readiness. The abolition of angel tax for investors further catalyzes entrepreneurial spirit, facilitating innovation and job creation. Together, these measures reflect a holistic approach to nurturing talent, enhancing employability, and fostering a thriving economy built by a skilled workforce." Mr. Karthik Kondepudi, Partner - Herbochem "I appreciate the Government of India for supporting the MSME sector. It is a commendable step from the Government that now the MSMEs in the manufacturing sector will benefit to grow without any burden of collaterals, with the Credit Guarantee Scheme for MSMEs which will guarantee a cover up to ₹100 crore. The new way of assessing MSME credit using digital footprints for credit appraisal will be far better than conventional methods and increase credit availability for many businesses. Also, credit support during any stress period will ensure that operations of the MSMEs are kept continuous since this is an important factor influencing the survival and growth of businesses. Increasing the Mudra loans limit up to ₹20 lakh, strengthening the TReDS platform space and covering more clusters with SIDBI will fulfil the needed funds and working capital needs of the sector. The measures for establishing the food irradiation units and quality testing lab will strengthen the base of the food sector both in terms of quality and safety. In summary, this budget provides a solid ground for MSME to grow, compete internationally, and act as a major driver of the Indian economy." Satyendra Prasad Narala - Managing Director, Regency Ceramics "The Finance Minister's announcement of a ₹10 lakh crore investment in urban housing through PMAY Urban 2.0 is a significant boost for India's real estate sector and related industries such as Ceramics and Tiles Manufacturing. This substantial infusion, including ₹2.2 lakh crore to rejuvenate the affordable housing segment and is expected to drive demand for construction materials and stimulate growth in sectors like ceramics, fostering innovation in construction technologies for affordable housing. Moreover, the enhanced focus on middle-class families is likely to encourage diverse housing types and urban design solutions. In tandem with this, the focus on MSMEs is commendable. The introduction of a credit guarantee scheme for MSMEs in the manufacturing sector, along with support for E-commerce export hubs, will fuel growth and competitiveness. However, while welcoming these measures, we urge additional support for sectors like Ceramics to ensure sustainable growth." Prem Kumar Vislawath - CEO and Founder, Marut Drones The allocation of ₹1.52 lakh crore for agriculture and allied sectors by the finance minister underscores a pivotal commitment to bolstering India's agricultural resilience. The emphasis on developing climate-resistant varieties and introducing 109 new high-yielding varieties is a forward-looking stride towards sustainable agriculture. Additionally, the promotion of farmer producer organizations, cooperatives, and startups heralds a new era of inclusive growth and innovation in the agricultural sector. Exempting lithium imports from customs is a bold step demonstrating India's commitment to strengthening the drone manufacturing sector. Lithium, crucial for drone battery production, will now bolster domestic drone manufacturing, underlining the government's support for this industry. The abolition of the Angel Tax for investor classes is a significant boost for startups, affirming the government's unwavering support for entrepreneurship and fostering a conducive investment environment. However, we look forward to enhanced subsidies on agricultural machinery, including drones, as a critical step towards modernizing our farming practices. Anant Jain, Head of Customer Success - India, GfK - an NIQ company "In the Union Budget 2024, the Finance Minister's focus on uplifting the poor, women, youth, and farmers aligns with India's aspirations towards a developed nation. It reflects the government's commitment to 'Viksit Bharat' and is poised to benefit the tech sector. The proposed reduction in the Basic Customs Duty (BCD) on mobile phones, mobile PCDA (Printed Circuit Design Assembly), and mobile chargers to 15% expected to make mobile devices and accessories more affordable, thereby boosting consumer demand and driving growth in the tech industry. Additionally, the increase in duty on printed circuit board assemblies (PCBA) for specific telecom equipment from 10% to 15% aims to encourage local manufacturing. Government's prioritization on jobs, agriculture and energy sector will provide long term growth opportunities to tech & durables sector." Mr Manish Raj Singhania, President FADA "The recent budget announcement by the Government of India brings a blend of optimism and challenges for the auto retail sector. The focus on 'Garib', 'Mahilayen', 'Yuva', and 'Annadata' highlights a comprehensive approach towards inclusive growth, which is commendable. The enhanced Minimum Support Prices for major crops and the launch of Phase IV of PMGSY are positive steps that will boost rural incomes and improve rural connectivity, thereby potentially increasing rural auto sales. The budget's emphasis on employment, skilling, MSMEs, and the middle class is particularly relevant for our industry. The Employment Linked Incentive scheme and the enhancement of Mudra loans are encouraging developments that will support job creation and entrepreneurship, leading to increased consumer spending power. ignificant infrastructure investments, with an allocation of Rs. 11,11,111 crore for capital expenditure, will have a multiplier effect on the economy. Improved infrastructure is a boon for the auto sector, facilitating better logistics and enhancing the overall consumer experience. The adjustments in personal income tax, including increased standard deductions and relief for salaried employees and pensioners, are welcome measures that will enhance disposable incomes, fostering a more favorable environment for auto sales. However, the industry must also navigate certain challenges. While the budget provides a robust framework for growth, the effective implementation of these policies will be crucial. We hope for continued support from the government in addressing specific issues faced by the auto retail sector, such as the transition to green mobility and the need for policies that support sustainable practices. Overall, the budget lays a strong foundation for future growth, and we are optimistic about the positive impact it will have on the auto retail industry." Mr. Kalyan Chakrabarti, CEO, Emaar India We at Emaar India welcome the Union Budget 2024-2025, as it reflects the government's strong commitment to improving urban housing. This budget lays a robust foundation for a dynamic, inclusive, and sustainable urban housing environment, ensuring long-term benefits for all stakeholders We are excited about these positive changes and are committed to playing our part in building high-quality projects that support this vision." This ₹10 lakh crore investment is a strong step towards creating an inclusive and sustainable urban ecosystem. Making affordable loans more accessible will effectively help people in achieving the dream of homeownership. At Emaar, transparency is our core value and therefore we firmly support the emphasis on transparency and believe that a fair rental housing system will create a more trustworthy and balanced housing market. Key infrastructure developments, such as better water supply and sanitation, effective sewage treatment, and solid waste management, will significantly enhance the quality of life across the country. Additionally, lowering of stamp duty for properties purchased by women is a commendable move towards gender equality in property ownership and empowering women. Furthermore, the comprehensive internship program for one crore youth in leading companies, along with women-specific skilling programs, are strategic initiatives designed to boost workforce participation and drive economic growth. Mr. Amarendran Vummidi, Partner, Vummidi Bangaru Jewellers "The government's move to reduce the custom duties from 15% to 6% on gold and silver and from 15.4% to 6.4% on platinum in order to enhance domestic value addition in gold and precious metal jewellery in the country, is commendable. This is going to benefit the sellers and the consumers equally. To promote the development of the diamond cutting and polishing industry, the finance minister has proposed safe harbour rates for foreign mining companies selling raw diamonds in the country and that again is a great move. The budget particularly focused on employment and skilling, which is the need of the hour. I appreciate the government's initiative of employment-linked skilling through 5 schemes and initiatives as part of the PM's package. Truly, the budget has many announcements for the youth and the women population. Creating more jobs is vital in unlocking the demographic dividend." Amit Jain, Global Chief Executive Officer - Sterling and Wilson Renewable Energy Group. "As a leader in the renewable energy sector, we feel that the recent budget announcement is an acknowledgement of the industry's huge potential in terms of meeting India's global sustainability commitments, ensuring the nation's long term energy security, and providing access to affordable and clean power source for the people. We commend the government's move to support energy transition by expanding the list of exempted capital goods for use in the manufacture of solar cells and panels in the country. The PM Surya Ghar Muft Bijli Yojana which involves installation of rooftop solar plants to enable one crore households obtain free electricity is a step in the right direction and shall promote a more sustainable future. The announcement to fully exempt 25 critical minerals and reduce BCD on two of them will assist the renewable energy sector, since it shall provide a major fillip to the processing and refining of such minerals and help secure their availability. The proposed policy to promote pumped storage projects for electricity storage will help facilitate smooth integration of growing renewable energy share thereby reducing challenges posed by its variable and intermittent nature. Expansion of India's renewable energy infrastructure - both greenfield and brownfield will require skilled workforce to ensure efficient project execution, while reducing cost and time overruns. We therefore welcome the government's focus towards upskilling 20 lakh youth over a 5-year period and upgrading 1000 Industrial Training Institutes." Dr. Silpi Sahoo, Chairperson, SAI International Education Group "The Union Budget 2024-25 shows a strong commitment to youth empowerment, acknowledging that it is essential to the success of our country. A 30% increase in funding to Rs 1.48 lakh crores has been allocated for education, employment, and skill development; this is a necessary and promising initiative. Students from low-income backgrounds benefitting from the provision of financial support for loans up to ₹10 lakh for higher education is a welcome move by the Government. Internship chances at 500 leading companies for 1 crore students during a 5-year period coupled with an internship allowance of ₹5,000 per month and a one-time aid of ₹6,000 will offer invaluable exposure and professional experience to the youth of India. Furthermore, the skilling project, which is a partnership between business and state governments, intends to improve 1,000 Industrial Training Institutes to train 20 lakh kids over the course of five years is a notable development in the Union Budget. I am sure that many students will benefit from the redesigned Model Skill Loan Scheme, which would provide loans up to ₹7.5 lakh backed by a government-sponsored fund. This will help the youth to be more professionally trained. Also, The Eastern region's 'Purbodaya' plan and the emphasis on digitization and technology adoption prioritizing infrastructure, economic prospects, and human resource development will be a key to turn the region into a major player in the global economy. If these policies are implemented effectively, Bharat is on the path to attaining global leadership." Mr. Manoj Tulsian, CEO & Joint Managing Director, Greenply Industries. "We are encouraged by the Union Budget 2024-25, which presents a forward-thinking vision for the construction and home interior industry. The focus on affordable housing under the PM Awas Yojana Urban 2.0 is noteworthy. By addressing the housing needs of urban poor and middle-class families and facilitating loans at affordable rates, this initiative is set to drive demand in our sector, supporting more families in achieving their dream of homeownership. The budget's emphasis on creating skill-led employment opportunities is another commendable step. By incentivizing additional employment and supporting both employees and employers, the government is fostering a robust job market that will benefit millions of youth entering the workforce. This initiative not only creates jobs but also enhances skills within the formal sector. We also applaud the commitment to sustainability. The roadmap for transitioning industries from energy efficiency to emission targets is a significant move towards reducing our carbon footprint. Greenply has been at the forefront of this transition, leading the industry in adopting clean energy sources and maintaining harmony within the supply and demand chain without disrupting ecosystems. Additionally, the support for traditional micro and small industries to adopt cleaner energy forms and implement energy efficiency measures reflects a holistic approach to sustainable development. We look forward to working closely with the government to ensure these measures translate into meaningful benefits for the economy and the environment." Shri Debadatta Chand, Managing Director & CEO, Bank of Baroda The Union Budget complements the main takeaways from the Economic Survey and focusses clearly on medium term development of the economy. The thrust on agriculture, skill development and MSMEs and consequently leading to employment generation will continue to be the main focus areas for the government in the coming years. The overall size of the budget has remained almost unchanged from the Interim one. The budget has shown strong intent on moving along the fiscal prudence path and targeted the fiscal deficit at 4.9% for the year. The said action will keep the growth steady as well as robust not only for economy but also banking. This will make it easier to touch the 4.5% mark in Fy26 as per the FRBM target. More importantly for the financial year the overall gross borrowing and net borrowings have been pegged at almost the same level as in the Interim Budget. This means that it is virtually neutral for the market in terms of liquidity and bond yields, which has positive impact on the economy. The banking sector can see substantial positive takeaways from the Budget which goes beyond the neutral impact on liquidity. First, there is a focus on MSMEs with a credit guarantee scheme being brought in. Any support to the MSMEs will be positive growth of not just GDP but also employment. Second, at the retail level, there is emphasis on education loans which will also help in skill building that is the need of the day. Third, the Budget speech also spoke about recovery and the focus will be on debt recovery tribunals. Fourth, the balanced regional development goal also includes setting up of more touch points in the North Eastern Regions which will help to make banking more universal. Last the reiteration of the budget to encourage housing also means that banks will have a larger role to play in carrying out this programme at both the rural and urban levels. Mr. Rajesh Sharma, Managing Director at Capri Global Capital Limited "We commend the Union Budget 2024-25 for its robust support towards MSMEs, a vital backbone of our economy. The budget's enhancements to the credit guarantee scheme, regulatory reforms, and financial packages reflect a strong commitment to creating a supportive environment for MSMEs to thrive and compete globally. Notably, the budget also emphasizes affordable housing, which will further stimulate economic growth, improve asset quality, and create employment opportunities. The focus on e-commerce export hubs and technological upgrades for traditional artisans will not only strengthen domestic growth but also position Indian MSMEs as key players on the global stage. Additionally, the measures to facilitate term loans for machinery and equipment without collateral, along with the establishment of new SIDBI branches, will significantly ease financial access for MSMEs. The budget's emphasis on promoting women-led development through dedicated schemes benefiting them is a commendable step towards inclusive growth. Furthermore, the initiatives aimed at improving productivity and efficiency reflect India's vision of becoming an inclusive and developed nation. These initiatives are poised to drive innovation, employment, and sustainable development within the sector, further strengthening India's economic resilience." Sapan Gupta, Chief Financial Officer, Rodic Consultants "The Union Budget 2024-25 places major emphasis on farmers, poor, women and youth of the country and various initiatives have been proposed to support the cause. Budget underscores the critical role of infrastructure in driving economic progress with substantial investments in railways, roads, and airports. The allocation of Rs 1.5 lakh crore for rail infrastructure and the expansion of the National Highway network will enhance connectivity, reduce logistical costs, and promote regional development. The significant focus on the eastern regions, including Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh, will transform these areas into growth engines, aiding in the attainment of Viksit Bharat. Furthermore, the ₹50,000 crore allocated for urban infrastructure, smart cities, and urban mobility projects will improve urban living, create jobs, and stimulate economic activity. The government's commitment to infrastructure development is evident and pivotal for achieving long-term economic growth and prosperity." Meenu Singhal- Socomec Regional MD, Socomec Greater India "Today's budget announcement marks a pivotal moment for India with funding focus on 9 priorities including Productivity and resilience in Agriculture, Employment & Skilling, Human Resource Development and Social Justice, Manufacturing & Services, Urban Development, Energy Security, Infrastructure, Innovation, Research & Development and Next Generation Reforms generating ample opportunities for all. This budget paves way for a significant growth towards a 'Viksit' Bharat. With one lakh crore fund being allocated for research and innovation, it will help in providing a substantial sustainable growth opportunity for our country by 2047. The policy highlighting on the use of appropriate energy transition will help in balancing the imperatives of employment leading to a more organized growth and environmental sustainability. The budget's emphasis on providing skilling programmes will empower the youth in obtaining quality employment opportunities. We appreciate government's move to reduce the corporate tax for foreign companies from 40 per cent to 35 per cent. This endeavour will improve the overall business environment, making it conducive to foreign direct investments into the country which will create more employment opportunities for the youth and stimulate economic growth. The Angel Tax abolition would also super charge the startup ecosystem". Sanjay Goenka,MD & CEO at 3F OIL PALM PVT. LTD ""We appreciate the Union Government for announcing a substantial allocation of Rs 1.52 lakh crore for agriculture and allied sectors in the budget and their proposal to introduce natural farming practices to 10 million farmers in the next two years. With the above initiative, domestic oilseed production, and specifically palm oil production, will increase. As India is one of the world's largest importers of edible oils, of which palm oil constitutes a whopping 67 percent, this will help reduce India's dependence on import of Palm Oil from other countries. We believe the current budget will be a steppingstone towards empowering our farmers to make India self-sufficient in edible oils." Mr. Farrokh N. Cooper, Chairman and Managing Director, Cooper Corporation Pvt. Ltd: "The reduction in the corporate tax rate for foreign companies from 40% to 35% is a commendable move that will attract more foreign investments into the country, fostering growth in the manufacturing sector. The proposed rationalization of capital gains taxation and the simplification of tax procedures will also enhance the ease of doing business. Additionally, the emphasis on fostering employment through various initiatives is highly encouraging. The allocation of funds towards skill development and vocational training programs will equip the labour force with the necessary skills to meet the industry's evolving demands. As a leading engine and component manufacturer, we are hopeful that these measures will lead to increased investments, job creation, and a more skilled workforce within our sector." Balajee Bobba, Director, Bobba Group. "We commend the government for its visionary Union Budget 2024-25, which strategically emphasizes infrastructure, manufacturing, and skill development. The spotlight on the logistics and supply chain sector is crucial for India's growth trajectory. Introducing e-commerce export hubs and industrial centers under the Vikas Bhi, Virasat Bhi scheme is a praiseworthy approach to bolster MSMEs and foster regional development. The government's commitment to green energy and EV infrastructure marks a significant step towards sustainable logistics. Additionally, the focus on technology and innovation will enable the industry to leverage AI, enhancing warehousing and optimizing every facet of the supply chain. At Bobba Group, we are enthusiastic about these initiatives and look forward to capitalizing on these opportunities to drive innovation, generate employment, and promote balanced economic growth." Mr. Mahesh Viswanathan, Deputy CEO and CFO, Finolex Cables Ltd., "We welcome the employment and manufacturing generation initiatives outlined in the budget. The introduction of a credit guarantee scheme for term loans on machinery and equipment purchases, without collateral or third-party guarantees, is a progressive step that will empower MSMEs to innovate and expand, driving growth and job creation across the nation. Additionally, the exemption of customs duties on 25 critical minerals is a strategic move towards strengthening the economy and ensuring vital resources are available for the manufacturing sector. We also applaud the continued efforts to bolster housing and infrastructure development, along with the focus on Digital Public Infrastructure. We firmly believe that these sectors are essential for driving economic growth. As the budget prioritizes expanding the manufacturing footprint, we anticipate a corresponding increase in consumer uptake." Vikas Bajaj President of Association of Indian Forging Industry (AIFI) " We welcome the budget presented today, which lays out a comprehensive roadmap for 'Viksit Bharat' across key sectors including manufacturing and services. The emphasis on promoting MSMEs through enhanced credit support and infrastructure development is particularly commendable. These measures will not only bolster job creation but also enhance competitiveness, paving the way for a robust industrial growth trajectory. For the manufacturing sector, the proposed incentives for additional employment will significantly boost job creation and strengthen the manufacturing ecosystem. The special attention given to MSMEs, particularly labour-intensive manufacturing, through financing, regulatory changes, and technology support, is a crucial step toward enhancing global competitiveness. The introduction of a credit guarantee scheme for MSMEs, providing up to ₹100 crore without collateral, along with the new credit assessment model and enhanced Mudra loan limits, will ensure broader financial inclusion and stability. The commitment to developing 'plug and play' industrial parks and reducing customs duty on key raw materials like ferro nickel and blister copper will lower production costs and enhance competitiveness. Additionally, the financial support for shifting micro and small industries to cleaner forms of energy and the facilitation of investment-grade energy audits in 60 clusters, with expansion to 100 clusters, will greatly benefit MSME units in the forging sector. Overall, this budget is a significant step towards 'Viksit Bharat,' and we at AIFI are optimistic about its positive impact on the forging industry and the broader manufacturing sector." Anurag Garg, Country Head & Managing Director, Vitesco Technologies India "We welcome the Union Budget 2024 and commend the government's budgetary priorities aimed at fostering innovation, research, and development in the manufacturing sector. The initiatives announced today, such as the credit guarantee scheme and reduction in customs duties on critical raw materials, are poised to strengthen India's manufacturing ecosystem. These measures will not only incentivize additional employment in the manufacturing sector but also provide the necessary financial and technological support to MSMEs, allowing them to compete globally and contribute significantly to the economy. Additionally, the establishment of investment-ready industrial parks and the reduction of input costs through customs duty cuts will boost domestic manufacturing and export competitiveness. We look forward to leveraging these opportunities to drive sustainable growth and technological advancement in the automotive industry, aligning with our vision for a prosperous and 'Viksit Bharat'." Ms. Sanjana Desai, Executive Director of Mother's Recipe "The 2024 budget brings a sense of optimism and growth opportunities for the FMCG sector. The proposal to abolish the so-called angel tax for all classes of investors will significantly bolster the entrepreneurial spirit and support innovation within our industry. Additionally, the increase in the standard deduction for salaried employees will enhance consumer purchasing power, which is beneficial for our brand as it may lead to increased demand for our products. We appreciate the government's efforts to simplify taxation and promote a more business-friendly environment. Mr. Rishabh Kothari - Additional Secretary, Shri Ram Chandra Mission "The budget session today has proposed supporting the development of temple corridors which will enable development of spiritual tourism within the proposed economic policy framework. According to the Ministry of Tourism, spiritual tourism in India has seen a rise post-Covid era. With the ease of restriction on lockdowns and travel, the numbers of spiritual tourists grew from 677 million in 2021 to 1,439 million in 2022 generating revenues of US$16.2 billion in 2022, up from US$ 7.9 billion as noted by the Ministry of Tourism. This contributed $199 billion to India's GDP in 2022-23 financial year alone. Spiritual tourism has a rising potential of market size with an expected annual growth of 9-10% and generating livelihoods. It is estimated that by the end of this decade more than one hundred million people would have jobs in the spiritual tourism sector in India. Both Central and State Governments have worked in developing the infrastructure and connectivity through high-speed trains and setting up airports in smaller cities. Foreign tourists have been given easier access and interest-free loans to states to put up malls and shops for unique products have been brought in. It is very encouraging to see this kind of growth not only as an economic booster, but also that more and more people are seeking spiritual wellness from within the country and overseas as well. Provisions for promoting mental health as being an aspect of spiritual and holistic wellness must also be mandated through dedicated retreats and wellness centers." Saurabh Marda, Co-founder and Managing Director Freyr Energy "The recent budget has been highly favorable for the energy sector, with the government setting an ambitious goal of achieving 500 GW of renewable power by 2030. A key component of this plan is encouraging homeowners to adopt solar energy, facilitating a swift transition to solar power. To support this, the government has allocated ₹70,000 crores in subsidies for homes that switch to solar energy. This is a crucial and forward-thinking initiative for the country's future, and we express our gratitude to the government for taking this significant step". Shri. Rahul V. Karad, Managing Trustee, MAEER, Executive President, MAEER's and MIT World Peace University & Chief Initiator, MIT SOG "We welcome the Finance Minister's progressive budget, which demonstrates a strong commitment to education, employment, and skilling with an allocation of ₹1.48 lakh crore. This significant investment highlights the government's dedication to nurturing talent and fostering growth. The introduction of financial support for higher education will help make higher education more accessible. Furthermore, the emphasis on developing digital public infrastructure applications will drive productivity and innovation, benefiting various sectors such as education and health. We call for clear guidelines on attention towards creative avenues to fund and promote a mandated Industry-Academia Partnership for mutual benefit. This will help boost the initiative to skill one crore youth through internships with top companies and the Prime Minister's Internship program to provide valuable practical experience and skill development. Overall, this budget aligns with our vision of 'Viksit Bharat,' paving the way for a robust and inclusive development trajectory."

Budget 2024: Focus on small businesses, a mixed bag for many

The government's commitment to bolstering India's technology sector and fostering innovation has been met with praise, though some areas have sparked debate.The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, has garnered mixed reactions from various industry leaders and startup founders. The government's commitment to bolstering India's technology sector and fostering innovation has been met with praise, though some areas have sparked debate. Bharath Aitha, Vice President of Marketing at eInfochips, highlighted the budget's focus on enhancing public-private partnerships and bridging the gap between academia and industry. "The emphasis on job creation and internships across various technologies is particularly encouraging," Aitha said. He praised the government's dedication to significant investments in training and upskilling the workforce, which he believes is essential for sustaining momentum and securing India's stature as a global technology leader. Aitha also noted the budget's allocation towards AI research grants, which could accelerate advancements in fields such as computer vision and natural language processing -- areas where eInfochips excels. "We look forward to collaborating with government bodies and academic institutions to maximize the impact of these grants," he added. Divyesh Dalal, Managing Director & Head - Global Transaction Services, SME & Institutional Liability Business, DBS Bank India says the measures announced in the Union Budget underscore the government's commitment to empowering MSMEs, the backbone of our economy. "The introduction of the credit guarantee scheme is an encouraging step towards making capital more accessible. Additionally, the provision of collateral-free term loans for purchasing machinery and equipment will tangibly enhance the operational capabilities of MSMEs by enabling technology upgrades," Dalal says. Further, Dalal adds that the lowering the turnover thresholds mandatory for onboarding on the TReDS platform will allow more MSMEs to access the benefits of this system. "The establishment of e-commerce export hubs is poised to further equip enterprises with the tools and support needed to expand into international markets. By making their products more accessible globally through e-commerce platforms, Indian businesses can tap into new opportunities with offshore customers across markets. DBS Bank India is well-positioned to support MSMEs given the focus on supporting the sector," says Dalal. Vikas Singh, Co-Founder of NFTFN, provided a balanced view, appreciating the abolition of the Angel Tax but expressing concerns over the increased taxes on short-term and long-term capital gains, as well as the hike in the Securities Transaction Tax on Futures & Options transactions. He noted that while the emphasis on digital public infrastructure is favorable, the cryptocurrency sector had hoped for more supportive taxation policies. Ashish Kukreja, Founder & CEO, Homesfy.in & mymagnet.io says Modi 3.0's new budget meets expectations. "The much-anticipated support for affordable housing is addressed with Rs 10 lakh crore to meet the housing needs of one crore lower and middle-class families in the urban regions. Over the next five years, an additional Rs 2.2 Lakh Cr support would be provided as central assistance. The whopping Rs 11.11 lakh Cr support to enhance infrastructure will boost connectivity and facilitate the overall development of cities as growth hubs," Kukreja said. He added that the Rs 2.66Lakh crore allocated to rural development will significantly upgrade rural infrastructure. Additionally, the announcement of 3 crore house construction in rural and urban areas is an addition to PMAY's visionary scheme, and "housing for all" seems achievable. The healthcare sector, while receiving increased allocation, still faces challenges. Himani Narula and Puja Kapoor, Co-founders of Continua Kids, noted the government's allocation of Rs 89,287 crore for health system development, but stressed the need for more substantial investments in primary healthcare, especially for children with special needs. They called for more resources towards specialized training, development of dedicated facilities, and early intervention programs. Dhawal Jain, Co-Founder of Mave Health, appreciated the budget's support for healthtech innovations but emphasized the need for more initiatives to enhance mental health services and infrastructure. He called for addressing corporate tax and redomicile taxation to create a startup-friendly environment. The startup ecosystem has welcomed the abolition of the Angel Tax. Shubham Jhuria, CFO & Partner at Aeravti Ventures, called it the sole positive move for startups, making compliance and practical execution of investments easier. Anish Singh, Co-Founder of All Things People, echoed this sentiment, emphasizing the budget's visionary step to provide internships for one crore youth over the next five years. Singh believes these measures will bridge the skills gap and ensure young professionals are industry-ready, thereby revitalizing the startup landscape. Vinay Agrrawal, Founder and CEO of Hubler, also welcomed the abolition of the Angel Tax, noting that it will fuel innovation and growth in the Indian startup ecosystem. He appreciated the enhancement of the MUDRA loan limit, which will encourage budding entrepreneurs. "The Union Budget through its inclusive and strategic measures aims to boost consumption, attract investments, and create jobs, fostering a vibrant and sustainable economy," said Bharat Puri, MD, Pidilite and Chairman, CII FMCG Committee. Samarth Kholkar, CEO & Co-Founder, BLive says the 2024 Union Budget has blown the bugle for India's EV and last mile logistics sectors. "With the waiving off of import duties on 25 minerals -- critical inputs like lithium -- and the outlay of Rs. 26,000 crore for road connectivity projects, will further support the adoption of EV for last mile revolution. These would also support to set the tone for the ambitious target of 30% EV sales by 2030," he said. Kholkar added that PLI schemes are likely to bring down cell prices, making batteries more affordable. "Better road infrastructure will improve the speed of goods movement and last mile efficiency. The potential creation of 30 lakh jobs in manufacturing adds another spark to our economic engine and benefits particularly the two-wheeler segment," he said.

A Budget of Optimism, Hope, and Action: Sitharaman's Bold Blueprint for India's Future

On July 23, 2024, Nirmala Sitharaman, with the presentation of the annual budget for the financial year 2024-25, became the first finance minister in the history of independent India to present seven consecutive budgets - six annual budgets and one interim budget. In doing so, she surpassed the record of former Prime Minister Morarji Desai, who, between 1959 and 1964 as finance minister, had presented five annual budgets and one interim budget. When Covid-19 struck with full force upending the world, the country's fiscal deficit soared to around 9.2 per cent of GDP in 2020-21. Consolidation since then has been challenging, yet over the years, it was brought down to 6.8 per cent of GDP in 2021-22, 6.4 per cent in 2022-23, and 5.8 per cent in 2023-24. This progress was appreciable. However, in the interim budget for the financial year 2024-25, Sitharaman targeted a fiscal deficit reduction from 5.8 per cent in 2023-24 to 5.1 per cent in 2024-25 -- a commendable goal in itself. But she has now upped the ante, targeting the fiscal deficit to 4.9 per cent in 2024-25 to 4.5 per cent in 2025-26, and thereafter keeping it at a level that the net borrowings the central government sees a downward change. This fiscal consolidation is the crux of the budget for this commentator. Sitharaman deserves the highest applause for this commendable achievement, even if aided by tax buoyancy and dividends from the central bank. She has eschewed populism once again while keeping sufficient cushion in her fiscal war chest to fight any untoward happenings due to hostile external economic headwinds. The Union Budget 2024 is a once-in-a-decade budget. I place this year's budget in the same category as Manmohan Singh's 1991 annual budget and P. Chidambaram's 1997 "dream budget." Here are my reasons for why I say so- One, Opposition grudgingly appreciates the budget: When Opposition leaders offer even half-hearted or grudging appreciation for the budget or parts of it, it suggests the budget holds something special for the nation. True to his newly acquired post as Leader of the Opposition in Lok Sabha, Rahul Gandhi has dubbed the budget a "Kursi Bachao Budget." However, his party colleagues -- P. Chidambaram, Jairam Ramesh, and Shashi Tharoor -- have grudgingly acknowledged some positive aspects. I humbly say, there is no harm in taking good parts from the Opposition manifesto. Aadhaar, for example, was not Narendra Modi's idea. However, once in power, he embraced it, expanding its size and impact significantly. Two, Employment and skilling take centre stage: I humbly posit the problem of unemployment is not the gift of the Narendra Modi regime. India inherited abject poverty and unemployment at independence. Unemployment worsened, first, during the initial Congress Raj, sardonically dubbed the "Hindu Rate of Growth" (the word coined by economist Raj Krishna in 1978), and then under subsequent prime ministers. This is the first budget that has sincerely tried to address the rampaging unemployment bull somewhat. Suffice it to say here that the Central government cannot dole out jobs -- all it can do is create enablers for job creation. The jobs must be created in the private sector largely, and a bigger responsibility for creating enabling conditions lies with the state governments. Three, Suryodaya - the sun rises in the east: The chorus from the Opposition while commenting on the budget is, "It is a Kursi Bachao Budget". This charge stems from the government scheme "Purvodaya" -- a special focus on the development of the eastern region: Bihar, Jharkhand, Odisha, West Bengal and Andhra Pradesh. (The latter technically belongs to the Southern Region but is contiguous with the Eastern Region.) At independence, these were the poorest states. Afterwards, they grew slowly, while initially better-placed states grew faster. And the gap kept on widening. They remain among the least developed and poorest of Indian states. Andhra Pradesh joined the group after its bifurcation, with its more developed areas, including Hyderabad, going to Telangana. My question is, why has no government or previous budget seriously considered the development of this region? Only one state - Bihar - if its floods are tackled well, can feed the entire nation. Also, what crime has Sitharaman committed by taking up this mantle? That Bihar and Andhra Pradesh are part of the NDA is beside the point. Four, Unprecedented urban focus: If my memory serves me right, even in 2006, the website of the Ministry of Urban Development had the utopian headline "India lives in its villages". Governments, both Central and state, have had an anti-urban bias since independence. For at least the first six decades, government policies focused on the containment of cities and towns, not their inclusive, all-around development. Soon, by 2030, 60 crore Bharatiyas will reside in cities and towns, and by 2047, half of the country's projected 160-crore population will be urban. Even today, urban India contributes 66 per cent to the national GDP. By 2030, it will be 75 per cent, and by 2047, when we aim to be Viksit Bharat, the urban contribution to national GDP will be 80-85 per cent. Cities are already unliveable. This is the first-ever budget that at least recognises the problem and lays a pathway for the urban India of today and tomorrow. Five, Next Generation Reforms: Never before has an NDA government presented such a long list of next-generation reforms. These reforms may not look like Big Bang reforms but are ground-level structural reforms needed to take the growth trajectory beyond 10 per cent. Even if only 50 per cent of the listed reforms are actualised within the next five years, starting with the reform of the income tax code in the next six months, it will be a big leap forward for Viksit Bharat @2047. The 58-page budget is undoubtedly pathbreaking. Moreover, the real story lies not just in the finance minister's speech but also in the annexure and other budget documents. The budget's relentless focus on transforming the lives of four key groups (the poor, youth, women, and annadatas) revolves around four major themes: employment, skilling, MSMEs, and the middle class. These themes, along with nine focused foundational priorities, distinguish this budget as truly unique. Here are the budget's nine key priorities -- with sub-priorities within them -- that chart a course toward Viksit Bharat @2047. I call them the nine commandments: In this multipart analysis of the budget, Part I critically analyses three priority areas -- employment and skilling, urban development, and physical infrastructure -- in reverse order. Other key priority areas will be thoroughly examined in Parts II and III. In the annual budget of FY 2013-14, out of a total expenditure of Rs 16.6 lakh crore, Rs 14.3 lakh crore was revenue expenditure, and the remaining Rs 2.3 lakh crore was capital expenditure. Fast forward to 2024: in the 2024-25 budget, capital expenditure has increased more than fivefold to Rs 11.11 lakh crore, out of a total expenditure of Rs 48.21 lakh crore. Additionally, Rs 1.5 lakh crore has been allocated as a long-term, 50-year, interest-free loan to state governments to stimulate infrastructure creation. More funding is available through Viability Gap Funding (VGF) to encourage infrastructure development via public-private partnerships (PPPs). Total infrastructure funding comes close to Rs. 15 lakh crores. After defence -- with an allocation of Rs 6.21 lakh crore -- the biggest budgetary allocation, at Rs 5.47 lakh crore, is earmarked for moving people and goods -- by road, rail, air, ports, and internal waterways. This is an eminently laudable, record outlay. However, there's a serious fault line in this otherwise commendable story. One, Port, Shipping and Waterways: The budgetary allocation for the sector is a paltry Rs 2,400 crore. Moreover, looking beyond the headline numbers, the actual capital expenditure in the port sector is a mere Rs 1,000 crore, with Rs 1,300 crore earmarked as revenue expenditure. Inland waterways receive a meagre capital outlay of Rs 40 crore. This meagre allocation does not bode well for the world's most populous nation, soon to be the third-largest economy, whose import and export needs will skyrocket if its ambition to displace China as the world's manufacturing hub is to materialise. Additionally, inland waterways -- the cheapest and most environmentally friendly solution for domestic transportation of people and goods -- remain the most neglected. In contrast, in 2022, Chinese river ports and seaports handled 5.55 billion and 10.13 billion metric tons of cargo, respectively. The question is: when will Bharat wake up? Two, Civil Aviation: India will soon be the world's third-largest aviation market. It already boasts the world's third-largest domestic market and is the fastest-growing aviation market globally. Nonetheless, aviation penetration is only 3-4 per cent. The aviation industry faces several structural issues: airports have become an oligopoly, and the airline industry a duopoly (Indigo and airlines owned by the Tata Group). Other airlines have folded or are disintegrating rapidly. Airport facilities are worsening by the day. Regulation and self-accountability are sorely lacking. Bharat needs massive airport expansion. The United Kingdom, a much smaller nation, has 150 airports, while the USA had 5,100 in 2022. Yet our civil aviation budgetary allocation is a pittance -- a mere Rs 2,400 crore. Unless rapid scaling up occurs, Bharat, instead of reaching the sky by 2047, faces the ignominy of literally being stuck on the runway. I humbly posit that unless drastic and swift action is taken, Indian airports (despite the sheen of private airports) will soon rank below railway stations regarding customer-centric facilities. Three, Whither Indian Railways: The total capital expenditure (capex) budget for Indian Railways (IR) is a hefty, never-before-seen Rs 2,65 lakh crore. In comparison, it was a mere Rs 63,363 crore in 2013-14. IR capex allocation has continuously increased for the last 11 years. This starkly contrasts with previous decades when railways were treated as fiefdoms -- gifted as "jagirs" to incumbent railway ministers or as "dowry" to placate boisterous coalition partners. Despite the abolition of a separate railway budget, this singular focus on increasing capex in railways is a significant achievement of the NDA government. However, as always with capital expenditure, the devil is in the details. The maximum amount is allocated towards black hole items: Manufacturing Suspense (Rs 59,290 crore), Stores Suspense (Rs 25,800 crore), and leased asset capital payments to the Indian Railway Finance Corporation (Rs 24,000 crore). New lines and track doubling share Rs 34,600 crore and Rs 29,300 crore, respectively. Track renewal receives a paltry Rs 17,600 crore, while bridges and signalling get meagre allocations of Rs 4,000 crore each. Customer facilities also receive a paltry allocation of Rs 17,000 crore, while traffic facilities are left with a mere Rs 9,000 crore. In safety-marred railways, there is not even a mention of Kavach- the indigenously developed anti-collision devise. Worse, the IR is bankrupt. Its capex is largely met through funds from general revenues as gross budgetary support (including the Railway Safety Fund and Rashtriya Rail Sanraksha Kosh), with a meagre Rs 3,000 crore from internal resources. The total capex outlay in the 2024-25 budget estimate of Rs 2,65,200 crore includes Rs 2,52,000 crore from general revenues, Rs 200 crore from the Nirbhaya Fund, and Rs 10,000 crore from extra-budgetary resources. A question I have here is this: where are the lakhs and lakhs of crores invested in capex going? What is the rate of return? Let's examine the revenue and expenditure figures. The IR revenue in FY25 is budgeted at Rs 2,73,000 crore (coaching 80000, other coaching 7500, Goods 174500 crore) as against an actual of Rs 2,54,300 crore and budgeted Rs 2,60,090 crore. The working expenses of IR are budgeted at Rs 117101.54 crore while the other ordinary working expenses are Rs 155898.46 crore, totalling Rs 2,73,000 crore. The IR teeters at the brink, perilously surviving at an operating ratio approximating 100 (number of paisa spent to earn 1 rupee). Even this sad story has been made possible due to creating accounting- railway funds are not fully funded, most critical of them Depreciation Reserve Fund has a token provision of Rs 1000 crore. And there's a big red flag: the salary and pension bill for IR already stands at Rs 1.83 lakh crore. When the 8th Pay Commission recommendations are implemented or the Old Pension Scheme is restored, railway finances will go into such a tailspin that even a miracle will not save the IR. This also leaves me with two critical questions: Why, despite targeted capex and much-improved project execution discipline, is IR rapidly losing modal share in goods transportation to highways and in passenger transportation to both roads and air? And why is this trend worsening so rapidly? I need a more granular analysis of demand grants to arrive at a reasonable answer. Four, Roads and Highways: Roads and highways have consistently received a disproportionately large allocation in the budget. The FY 2024-25 allocation is a whopping Rs 2.78 lakh crore, substantially up from Rs 2.17 lakh crore in FY 2022-23. While the allocation to the National Highways Authority of India (NHAI) is Rs 1,67,400 crore, other road sectors receive Rs 1,08,520.38 crore. Research and road safety get a token allocation of Rs 256 crore, but the real tokenism is the allocation for women's safety -- a mere Rs 18 crore, drawn from the Nirbhaya Fund. Roads and highways are the most polluting modes of transport. Moreover, casualties on Indian roads are the highest in the world. Is it not time to ease up on road and highway development, step back from the model of rampant motorisation seen in the USA, and look east to China? China, which lagged behind India in 1950 regarding its rail network, today boasts 159,000 km of route length, including the world's largest high-speed rail network at 44,000 km. I humbly posit that it's time for Bharat to undertake a course correction -- towards a more symbiotic development of all four modes of mobility: rail, road, air, and water. And we must act swiftly. India boasts the world's second-largest urban population after China. Bharat's urban population already surpasses the total population of the US and is growing rapidly. In 2030, our urban population will reach 60 crores, and by 2047, it will reach 80 crore -- half of the country's projected population. Urban India is in the grip of myriad problems: crippling traffic congestion, ghettoisation, severe shortages of water and sanitation, a solid-waste management crisis, severe pollution, and much more. For the first time in the history of independent India, the FY 2024-25 budget attempts to tackle these urban development issues head-on. The budget provisions include: These provisions establish a solid platform for year one of NDA 3.0. However, these programs must delve deeper and encompass other crucial areas in the years to come. Nonetheless, it's a good beginning. Its true effectiveness, however, will be revealed through an analysis of sectoral allocations. A glance at the Ministry of Housing and Urban Affairs (MoHUA) allocation shows an increase to Rs 82,600 crore in the FY 2025 budget from Rs 69,200 crore in FY 2024. This increase is incremental, not transformational, particularly because the capital outlay is a mere Rs 28,628.26 crore. Moreover, the bulk of this capital expenditure (Rs 24,785.94 crore) is allocated to metro rail projects. Clearly, there's more to this story than meets the eye. The allocation for urban transformation is in crying need of a transformative leap. Let's hope next year's budget addresses this pressing need. The Economic Survey (2023-24) conservatively estimated the net annual need for new employment generation in the non-farm sector at 78.6 lakh per year until 2030. These numbers are conservative because there is significant underemployment in the agricultural sector. The Survey also red-flagged possible loss of jobs through the value chain due to the Fourth Industrial Revolution and AI. The survey also rightly stated that most employment generation must occur in the non-government sector, and state governments must play a substantial role in creating enabling policies. That said, the Central government must act as a catalyst in employment generation. The 2024 budget makes a bold start -- possibly a first in the history of budget-making in independent India. Employment generation and skilling are one of the budget's four themes, embedded in each of its nine priorities. Here are the specific provisions that demonstrate the budget's clear focus on employment: One, three special schemes aimed at employment generation: Two, Prime Minister's Internship Scheme: A potential game-changer, this scheme will provide internships with a monthly allowance of Rs 5,000, plus Rs 6,000 for incidentals, to skill one crore youth over five years. India's top 100 companies will participate in this program. It's applicable to youth between 21 and 24 who are not employed or engaged in full-time education. Companies will contribute an additional Rs 6,000 per month to interns from their CSR funds and bear the training costs from their CSR funds as well. Three, measures to facilitate higher participation of women in the workforce include setting up working women's hostels in collaboration with industry and establishing crèches. Four, loans up to Rs 7.5 lakh with a guarantee from a government-promoted fund. It's expected to help 25,000 students every year. Five, financial support for loans up to Rs 10 lakh for higher education at domestic institutions to 1 lakh students annually. Support is provided through direct e-vouchers with an annual interest subvention of 3 per cent. Six, Skilling Programme: This program aims to skill 20 lakh youth over five years. It includes upgrading 1,000 Industrial Training Institutes (ITIs) in hub-and-spoke arrangements, focusing on outcome orientation and aligning course content and design with industry skill needs. I believe these programs, along with the employment generation plans integrated into the other eight budget priorities, will help curb growing unemployment to some extent. However, this is just a modest beginning. Much more needs to be done. And the action lies everywhere - Central government, state governments, organised and unorganised corporate sector, manufacturing and services, NGOs and all types of formal and non-formal jobs. Finally, though, the die is cast. If these plans are well-executed, they will lead to much-needed progress. To be continued

Budget 2024: Top execs of Noise, Boult, Ambrane and IG Drones thank and applaud FM - Times of India

Finance Minister Nirmala Sitharaman presented Union Budget 2024 in the parliament today (July 23). This is Modi 3.0 government's first Budget post general elections 2024. The focus of FM Sitharaman's Budget is said to be on employment generation, inflation management, and fiscal prudence. Industry has widely welcomed the Budget 2024. Here's what CXOs and founders of Noise, Boult, Ambrane and IG Drones have to say on the Union Budget 2024. Amit Khatri, Co-Founder, Noise "The Union Budget 2024 presented by Finance Minister Nirmala Sitharaman is a visionary step towards inclusive growth, with a strong emphasis on manufacturing, upskilling, and women empowerment. Youth and participation of women in the workforce hold the key to India's success. To this end, the focus on extensive training and skill development initiatives demonstrates a clear commitment to boosting employability and productivity. By linking job creation in manufacturing to first-time workers and offering EPFO incentives, the government is paving the way for a robust manufacturing ecosystem, creating 4 crore jobs over the next five years. It is certainly a commendable initiative to boost local manufacturing. Additionally, offering internship opportunities in the top 500 companies to 1 crore youth is a strategic move that will equip our young population with the skills and experience necessary to thrive in a competitive global economy. The establishment of e-commerce export hubs in a PPP model is another significant step taken by the government and will significantly empower MSMEs and traditional artisans to compete internationally. It will open opportunities for Indian players to boost their reach globally while enhancing the ease of doing business and accessing new markets. India has long been an attractive consumer market for international brands, supported by our collaborative and business-friendly policies that enable seamless operations. The export hubs are an efficient step in unlocking similar avenues for homegrown companies, allowing a global stage for their innovation and entrepreneurial mindset, and strengthening India's position in manufacturing. Lastly, I feel the abolition of the angel tax will undoubtedly boost funding in the startup ecosystem, fueling innovation and growth. This move, along with incentives for job creation in the manufacturing sector and support for MSMEs, will not only stimulate valuable employment opportunities for millions of young people but also ensure economic resilience, laying a strong foundation for a powerful growth trajectory for India. Driven by the vision of Viksit Bharat, we look forward to actively participating in the nation's journey towards global prominence and innovation leadership." Varun Gupta, Co-Founder, Boult "We're thrilled about the Finance Minister's recent announcement to simplify FDI rules and make things easier for investors. This is a big win for the Indian startup scene and will definitely bring in more investment, drive innovation, and boost growth. The removal of the angel tax is great news for early-stage startups and shows the government's support for startup funding. The focus on creating jobs, developing skills, supporting MSMEs, and boosting manufacturing is setting the stage for a better India. The new Credit Guarantee Scheme for MSMEs, along with the push for skill development and easier FDI regulations, is a solid approach to promoting growth and making us more competitive globally. Plus, the government's focus on upskilling the youth and embracing advanced manufacturing and digital tech is giving us a competitive edge. And the drop in customs duty on PCBs for mobile phones is a game-changer for the electronics industry. Lowering the duty from 20% to 15% will make electronics more competitive and also boost growth for the wearables market." Ashok Rajpal, Managing Director, Ambrane India "In her Budget speech on July 23, 2024, Finance Minister Nirmala Sitharaman proposed reducing the basic customs duty on mobile phones and chargers from 20 per cent to 15 per cent. This move is expected to boost exports and enhance global competitiveness while also increasing domestic adoption by lowering costs. The finance minister emphasized the maturity of the Indian mobile phone industry and highlighted a strong focus on manufacturing, R&D, and innovation, particularly within the MSME sector. These measures are poised to drive substantial growth in the consumer electronics and mobile accessories industries, positioning India as a leading manufacturing hub." Bodhisattwa Sanghapriya, Founder and CEO, IG Drones "We applaud the Union Budget's focus on innovation, R&D, and next-generation reforms, aligning with the Government's nine key priorities. This emphasis will accelerate the growth of the drone sector and enhance advanced technologies like AI and IoT. The budget fosters an environment supporting technological advancements and cutting-edge research, paving the way for significant progress in the drone industry. The FM's announcement of a fivefold expansion of the space economy and a Rs. 1,000 crore boost for the space sector further underscores this commitment. Additionally, the abolition of the angel tax for all tax classes is excellent news for startups, aiding in capital formation in the country. We are excited about the opportunities this budget presents and remain dedicated to leveraging these advancements to drive innovation and bolster the nation's technological leadership on a global scale. Notably, under the Namo Drone Didi Scheme recently, the Government has allocated Rs. 1,261 crore to provide drones to 15,000 Women Self Help Groups (SHGs) for rental services to farmers, covering 80% of the costs up to Rs 8 lakh." The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. TOI Tech Desk's news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe. Be it how-tos or the latest happenings in AI, cybersecurity, personal gadgets, platforms like WhatsApp, Instagram, Facebook and more; TOI Tech Desk brings the news with accuracy and authenticity.

Budget 2024: Top executives of leading consumer durables manufacturers share their views - Times of India

Finance Minister Nirmala Sitharaman presented the Union Budget for the fiscal year 2024-2025 on July 23: The budget emphasises employment generation, inflation management and fiscal prudence. The FM said that in this budget, the government particularly focused on employment, skilling, MSMEs, and the middle class. Lauding the budget introducing the forward-looking measures to boost economic growth, the top executives from Super Plastronics Pvt Ltd, one of the leading manufacturers of consumer durables in the country; Videotex - which makes smart TV for Realme, Toshiba, Lloyd and others; and Optiemus Electronics welcomed the initiatives by the government. Avneet Singh Marwah, CEO, Super Plastronics Pvt Ltd, a Kodak brand Licensee "I commend the forward-looking measures introduced in Union Budget 2024, especially the revised tax structure and increased standard deduction, aimed at boosting consumer spending and nurturing economic growth. The allocation of an additional 3 crore houses under PM Awas Yojana will provide a significant boost to the market for large consumer durables. The proactive efforts of the government to enhance ease of doing business in the manufacturing sector are evident and commendable. The introduction of new employment incentives across manufacturing and other sectors will not only spur workforce expansion but also bolster the Make in India initiative, complementing existing PLI schemes. However, there was an expectation within the industry for more aggressive measures aimed at increasing disposable income to further stimulate consumer spending." Arjun Bajaj, Director - Videotex "The recent budget has highlighted manufacturing, infrastructure, and innovation as key priorities, signalling a strategic focus on these areas. However, the television manufacturing sector feels somewhat overlooked, as anticipated incentives and support were not fully addressed. Despite this, the budget's emphasis on skilling and workforce development within the manufacturing sector is a positive step, fostering hope for future growth. This focus on enhancing workforce skills aligns with the goal of positioning India as a global manufacturing hub. The government's commitment to employment and employability is reflected in a ₹1.48 lakh crore provision, which includes incentives for job creation and EPFO contributions aimed at boosting the industrial and manufacturing sectors. With fiscal support for infrastructure set at 3.4% of GDP, the budget aims to strengthen the foundations necessary for driving growth across various industries, including electronics manufacturing. Improved infrastructure, coupled with a skilled workforce, is expected to enhance the efficiency and competitiveness of the electronics manufacturing sector, paving the way for sustained industrial growth." A. Gururaj, Managing Director, Optiemus Electronics Ltd. "We welcome the initiatives announced in the Union Budget. The significant emphasis on manufacturing is heart warming and much needed for the growth of the economy. With the substantial expansion of the electronics manufacturing industry, the demand for a skilled workforce has become paramount. The announcement of various skilling initiatives and the scheme to incentivize additional employment in the manufacturing sector, particularly for first-time employees, will provide essential support to industries reliant on skilled workforce, especially in electronics. Furthermore, the proposal to reduce the Basic Customs Duty on mobile phones, mobile PCBA, and mobile chargers to 15% is a positive step. The measures laid out to support the MSME industries are particularly welcome to create a much needed supplier base for electronics within India. These measures collectively send out a strong message on the manufacturing sector and related ecosystem in India." The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. TOI Tech Desk's news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe. Be it how-tos or the latest happenings in AI, cybersecurity, personal gadgets, platforms like WhatsApp, Instagram, Facebook and more; TOI Tech Desk brings the news with accuracy and authenticity.

Budget 2024: Top execs of Transsion, HTech and Benq applaud FM - Times of India

Finance Minister Nirmala Sitharaman presented the Union Budget 2024 in the parliament today (July 23). This is the Modi 3.0 government's first Budget post general election 2024. Sitharaman's Budget focused on employment generation, inflation management and fiscal prudence. The industry has widely welcomed the Budget 2024. Here's what the founders and top executives of HMD, Transsion, Amazfit and Benq have to say about the Union Budget 2024. Arijeet Talapatra, CEO, Transsion India "We commend the government on the Union Budget and are encouraged by the strong backing for the mobile technology sector. The Indian mobile phone industry has seen a remarkable transformation with a threefold increase in domestic production and a hundredfold surge in exports over the past few years. This clearly indicates how the mobile industry in India has matured throughout the years and the reduction to 15% in BCD is a step in the right direction. A reduction in the Basic Customs Duty (BCD) mobile PCBAs to 15% will not only enhance affordability for our consumers but also drive innovation within the sector. This reduction will bolster the competitiveness of our industry on a global scale, enabling us to deliver cutting-edge technology at more accessible price points. It is imperative that we create a conducive environment for the technological sector to thrive, ensuring that India remains at the forefront of the digital revolution. This move will attract further investments, spur local manufacturing, and ultimately contribute to the economic prosperity of our nation." CP Khandelwal, Joint Managing Director - HTech "We congratulate the government on the Union Budget and are heartened to see the robust support for MSMEs and the manufacturing sector. The credit guarantee scheme for MSMEs in the manufacturing sector, with coverage up to Rs 100 crore, is a game-changer. This initiative will spur innovation and growth, providing critical support to homegrown enterprises and elevating India's position in the global manufacturing landscape. The government's decision to reduce the Basic Customs Duty on mobile phones, PCBs, and chargers to 15% marks a pivotal moment for our technology sector. This strategic move recognises the significant maturation of the Indian mobile industry in recent years and is set to attract global value chains to our shores, enabling large-scale manufacturing operations. These measures collectively ensure a more resilient and innovative ecosystem, benefiting both the industry and consumers. This budget has not only addressed current challenges but also lays the groundwork for a prosperous and self-reliant India in the years to come." Rajeev Singh, Managing Director, BenQ India and South Asia "The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, has adopted a strategic approach for fostering economic growth while bolstering India's technology landscape. The planned upgrade of 1,000 Industrial Training Institutes (ITIs) through a hub-and-spoke model, along with the alignment of course content to industry needs, reflects a proactive strategy to address the skills gap in the workforce and prepare students for the evolving job market. Such an emphasis on skill development and education bodes well for not only the emerging workforce but also interactive technology companies. For display and interactive tech companies which provide interactive flat panels and other technological solutions for educational institutions, this budget presents significant opportunities. The focus on upgrading ITIs and enhancing skill development aligns with the mission to support educational advancements through technology. By integrating interactive learning tools into these upgraded institutions, tech companies can contribute to creating an engaging and effective learning environment that fosters skill acquisition and prepares students for future challenges. This alignment between government initiatives and private sector capabilities is crucial for driving educational transformation in India." The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. TOI Tech Desk's news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe. Be it how-tos or the latest happenings in AI, cybersecurity, personal gadgets, platforms like WhatsApp, Instagram, Facebook and more; TOI Tech Desk brings the news with accuracy and authenticity.

Budget 2024: Microsoft and NXP India heads laud FM's vision - Times of India

India's 2024 Union Budget has received enthusiastic support from multinational technology giants, with industry leaders praising its strong focus on artificial intelligence (AI) and semiconductor manufacturing. The budget, presented on July 23, aims to position India as a global leader in these crucial tech sectors. Puneet Chandok, President of Microsoft India & South Asia, lauded the budget's vision, stating, "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." He further emphasised the country's rapid progress, noting, "India leads the world in AI skill penetration and talent concentration rates.This progress is remarkable, with human capital, businesses, and public sector organisations rapidly adopting new technologies." The semiconductor industry received a significant boost, with a 52% increase in allocation totaling Rs 21,936.90 crore for 2024-25. Hitesh Garg, VP, and Managing Director for India at NXP Semiconductors commented, "The semiconductor industry, pivotal to India's growth, has received a 52 percent increase in its 2024-25 allocation. This initiative aligns with India's ambitions to establish itself as a leading player in global electronics manufacturing." The Union Budget 2024 focused on skill development, particularly for women in technology. NXP noted, "The government has also allocated over ₹3 lakh crore for schemes benefiting women, including the establishment of women-specific skilling programs to enhance their participation in the workforce. The TOI Business Desk is a vigilant and dedicated team of journalists committed to delivering the latest and most relevant business news from around the world to readers of The Times of India. The primary focus of the TOI Business Desk is to keep a watchful eye on the global business landscape, covering a wide spectrum of industries, markets, economic trends, in-depth analysis, exclusive reports and breaking stories that impact businesses and economies. With a mission to provide valuable insights and updates, the desk ensures that TOI readers are well-informed about the ever-changing and dynamic world of commerce and can navigate the complexities of the business world.