Interim Budget 2024: Industry Reactions (Part-1)

Ayanabh Debgupta, Jt. Managing Director, Medica Group of Hospitals
“Government's announcement of U-Win platform for streamlined immunization is a remarkable step and this will boost the immunization drive. The provision to set up more medical colleges is certainly the need of the hour to address the demand supply gap vis-a-vis Doctor’s to patient ratio. However, the most crucial aspect is the cervical cancer vaccination for the girls aged between 9 to 14 years. This will give the cancer screening a huge impetus and will spread the much-needed awareness. Though we know this was an interim budget we were expecting government to bring down the customs duty on general & oncology medical equipment. To provide optimal care at affordable rates, the recent increase in customs duty for general and oncology medical equipment. The customs duty for general equipment has risen from 14.57% to 22%, and for oncology equipment, it has increased from 30.48% to 36.64%. We are hopeful that Government shall address this during the final budget for 2024-25.”

Miren Lodha, Director-Research, CRISIL Market Intelligence & Analytics
“The government's initiative to support rooftop solar installation for one crore households under the Suryoday Yojana is expected to translate into capacity additions of 20-22 GW. This could spawn investments of Rs 91,000-110,000 crore and lift the overall installed base to 31-33 GW from 11 GW as of December 2023. If fully implemented, this will help to achieve 80-85% of the overall government target of 40 GW in rooftop solar installation. While the finer details are yet to be released, based on the current details of financial assistance, incremental investments will need government subsidies worth at least Rs 35,000 crore over the scheme period. It should be noted that budgetary allocation for solar (grid) is 110% higher at Rs 10,000 crore for fiscal 2025. This indicates that incremental budget allocation from the government will remain critical for successful implementation over the scheme period.”

Jagannarayan Padmanabhan, Senior Director & Global Head, Transport, Mobility and Logistics, Consulting, CRISIL Market Intelligence and Analytics
“After two years of high double-digit capex allocation for the infrastructure sector, the pause button seems to have been pressed. Nevertheless, roads and railways continue to garner a lion’s share of the proposed expenditure this year. The government has also indirectly signalled the need for greater private sector participation to support growth in these core sectors. That could mean asset monetisation could gather pace in the coming months.”

Punit Goenka, MD & CEO, ZEE Entertainment Enterprises Ltd.
"The Government’s efforts to boost India’s economy through structured policy reforms will accelerate the development of our Nation over the next few years. The steps taken by the Hon'ble Finance Minister to empower the youth by fueling the entrepreneurial spirit and fostering innovation in technology through initiatives like the 1 lakh crore research corpus, creates a golden era for sunrise sectors such as media & entertainment. The combination of youth and technology certainly holds immense potential and can lead to exciting new opportunities for content distribution and monetization, boosting the growth of the M&E sector at large.”

T S Kalyanaraman, Managing Director – Kalyan Jewellers:
“We welcome the interim budget announced by FM Nirmala Sitharaman, and commend the Government of India’s consistent efforts in ensuring inclusive growth as well as recognizing the pivotal role of women in economic transformation, through a diverse array of initiatives.
The country’s phenomenal growth trajectory and economic prowess in the past decade, has been nothing short of extraordinary, particularly the surge in FDI, which witnessed two-fold increase over the past two decades. As we celebrate the golden era, we would like to applaud PM Modi’s commitment and vision for fostering a thriving economic landscape. The ‘First Develop India’ (FDI) initiative, geared towards encouraging foreign partnerships, exemplifies a collaborative spirit towards economic progress.
Furthermore, we believe the PM Vishwakarma Yojana is playing a critical role in empowering the India’s artisan community. With benefits extending across 18 trades, it symbolizes the Government of India’s holistic approach towards preserving traditional craftsmanship and contributing significantly to the nation's economic fabric.”

TV Narendran CEO&MD Tata Steel
"The announcement by the Hon'ble Finance Minister today to increase the capital expenditure on infrastructure is a welcome step, which would have a multiplier effect on the nation’s overall economy. The continued expansion of rural housing along with the proposal to develop three economic railway corridors under the PM Gati Shakti Yojana are other significant moves that will spur steel demand, create jobs, and improve connectivity & logistics.
It is heartening to see the government's emphasis on every region contributing to a 'Viksit Bharat' which is underscored by a special focus on the eastern part of the country.
The financial support envisaged to promote research and innovation is an encouraging initiative which will help nurture the aspirations of our youth."

G.P. Hinduja, Chairman, Hinduja Group
“Interim Budget is both a time for reflection and visioning for the future while managing adroitly the present. Compliments to FM Nirmala Sitharaman for effectively achieving this. She articulated the achievements of the past decade and spelt out the broad roadmap to 2047 while maintaining the path of fiscal rectitude with fiscal deficit targeted at 5.1% in FY 25 and down to 4.5% in FY 26.
The interim budget commendably shunned any populist measures so often resorted to by the governments. But Bharat could certainly do more on its infrastructure CAPEX budgeting which increased nominally by 11%. Some bold measures are needed to increase the annual FDI level of 60bn $ further. The banking and power sector reforms coupled with further impetus on digital infrastructure are imperatives to Vikasit Bharat with improved sovereign rating. Overall, stability and continuity with judicious acceleration are the wheels deployed through this interim budget for taking off this flight. Now, it’s over to July 2024.”

Balram Singh Yadav, Managing Director, Godrej Agrovet Limited “The Interim Budget 2024-25 reiterates government's commitment to strengthening the ‘Annadata’ and backbone of our nation – our farmers. From direct financial assistance through PM-KISAN SAMMAN Yojana to expanding farmer-centric policies and promoting innovations, the budget paves the way for inclusive, sustainable growth in the agricultural sector. Initiatives such as e-NAM and PMMSY are empowering farmers with better market access and infrastructure, while the focus on enhancing adoption of Nano-DAP clearly showcase government’s intent to handhold farmers amidst the continuously evolving weather conditions. The proposals to improve milk yields and aquaculture productivity in addition to achieving 'Atmanirbharta' for oilseeds, demonstrates the government's commitment to food security and livelihood of generation across diverse agricultural fields. Overall, today’s Interim Budget 2024-25 offers a promising roadmap for empowering our farmers, ensuring food security, and propelling the agricultural sector towards a brighter future.”

Sabyasachi Goswami, CEO, Perfios
“We are delighted to witness the government's focus and commitment to fostering the startup ecosystem in the Interim Budget 2024. This pivotal attention comes at a crucial time when the industry grapples with a funding winter, compounded by challenges such as the geopolitical crises and global slowdown. The announcement of a substantial corpus of Rs 1 lakh crore, featuring 50-year interest-free loans for Startups & MSMEs, is a commendable move that will undoubtedly provide the private sector with long-term financing opportunities at low or nil interest rates. This initiative aligns seamlessly with our vision to foster innovation and scale up research in sunrise sectors.
The extension of tax benefits for startups until March 31, 2025, further reinforces the government's commitment to nurturing the entrepreneurial spirit. This gesture not only provides financial relief but also instills confidence in the startup ecosystem.
We also express our appreciation for the government's proactive approach in incentivizing digital transactions in the previous year. Anticipating a continuation of such initiatives for the broader financial ecosystem this year, we look forward to a collaborative effort that will drive digital transformation for Banks and NBFCs, which will also result in financial inclusion. These measures collectively pave the way for a robust and resilient startup landscape, and we at Perfios are optimistic about the positive impact they will have on the industry as a whole.”

Godrej Industries Ltd.'s Chairman and MD- Nadir Godrej
“The Interim Budget 2024 lays a strong foundation for building a prosperous and inclusive India, in line with the vision of 'Viksit Bharat’. We echo the sentiment of empowerment for every section of society, particularly the 'Garib', 'Mahilayen', 'Yuva', and 'Annadata'. Their progress is intertwined with the nation's advancement, and it's heartening to see the Government prioritize their needs and aspirations.
The foresight outlined for the 'Amrit Kaal', anchored in 'Reform, Perform, and Transform', sets a promising trajectory for inclusive and sustainable growth. The emphasis on next-generation reforms, underscores a collective endeavor towards a prosperous future. We particularly welcome the emphasis on clean energy initiatives like bio-manufacturing and compressed biogas blending. These measures will not only address climate concerns but also create exciting new opportunities in the green sector. Overall, Budget 2024 strikes a positive balance between continuity and progress, laying down a roadmap towards development, fostering innovation, and nurturing a sustainable future for our nation by 2047.”

Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas Corp. Ltd
“Nuvoco welcomes the initiatives in the latest Interim Budget, which acknowledges the Government's commitment to growing the economy in challenging geopolitical conditions. As part of the PM Gati Shakti program, to foster strong multimodal connectivity, three proposed major economic railway corridors focusing on energy, minerals, and cement will improve logistics efficiency and reduce costs. This will benefit both the industry and the economy.
In addition, the focus on the Individual House Builders (IHB) Segment, particularly the new housing scheme for the middle class, aligns perfectly with the nation's socio-economic goals. The initiative to construct two crore houses under the PM Awas Yojana and the progress of the Pradhan Mantri Awas Yojana (Grameen), with an additional two crore homes planned to be built over the next five years, is particularly noteworthy. The government's efforts to improve port connectivity, decongest high-traffic rail corridors, and transform metro rail are positive developments for the ready-mix concrete industry. These measures should further improve the standard of living for millions of people and offer numerous opportunities for economic and community development”.

Satyendra Prasad Narala – Managing Director, Regency Ceramics
“The government's initiative to facilitate homeownership for the middle class is a commendable step toward inclusive growth. Moreover, the commitment to construct another 2 lakh houses and providing over seventy percent of these houses under PM Awas Yojana to women as sole or joint owners not only enhances their dignity but also promotes gender equality in rural housing development. These two schemes is a big positive for the building materials industry.
Regency has always been a trusted supplier of tiles for most government schemes and with innovative manufacturing practices will provide natural tiles at lower prices with better durability to the beneficiaries of these two schemes. We welcome these transformative measures for a brighter, more equitable future, and a flourishing ceramic tiles sector.”