Interim Budget 2024: Industry Reactions (Part-6)

Karthik Kondepudi, Partner, Herbochem 
“As we navigate this era of change and progress, let us seize the opportunities presented by this budget to drive innovation, promote sustainability, and contribute to the overall well-being of our nation.
Embracing the transformative power of new-age technologies and data, the budget has laid a solid foundation for fostering innovation and sustainable growth. The establishment of a one-lakh crore corpus with a fifty-year interest-free loan is a commendable initiative. This financial boost aims to catalyse long-term research and innovation in sunrise domains, providing the private sector with the necessary resources to scale up and drive progress.
Furthermore, the commitment to green growth is evident through the introduction of a new scheme for bio-manufacturing and bio-foundry. This forward-looking initiative supports the development of environmentally friendly alternatives such as biodegradable polymers, bioplastics, bio-pharmaceuticals, and bio-Agri-inputs. This not only aligns with global sustainability goals but also signifies a shift towards regenerative manufacturing practices.
In the realm of pharmaceuticals and nutraceuticals, these budgetary measures hold promising implications. The emphasis on bio-pharmaceuticals aligns with the growing demand for innovative and sustainable healthcare solutions. The focus on green alternatives may incentivize the pharma and Nutra industry to explore eco-friendly practices and contribute to a healthier, more sustainable future.”
                   

Viswanath PS, MD & CEO, Randstad India.
“The interim budget 2024 is a tough balancing act carried out by the Government, reinforcing its steadfast strategy of inclusive growth, embodying the core principles of 'Sabka Saath, Sabka Vikas’, its commitment towards the poor, farmers, youth, and women, while maintaining its vision of making India a Viksit Bharat by 2047.  
The emphasis on inclusion in education, income generation, and employment opportunities are great moves in the positive direction towards building a skilled talent pool that attracts global stakeholders to India. Moreover, the focus on building ‘Nari Shakti’ by the government is commendable and will truly reflect in India’s boardrooms in the forthcoming years.
While no direct announcements have been made in the context of job creation, the increased outlays in railways, focus on developing port infrastructure, and planned investments in the aviation sector are likely to boost employment. Moreover, the budget focuses on developing the country’s private sector R&D capabilities, and all these measures will bring sustainable economic growth and open the doors of employment generation in the country in the long term.
Additionally, the need for skilled professionals has grown significantly. Hence, the focus on further developing India’s educational infrastructure will make us future-ready in the context of talent supply, and hence more employment opportunities. Moreover, the announcements made to foster entrepreneurship and self-reliance, especially directed toward women will serve as a solid foundation for the youth to innovate and incubate indigenous businesses, ensuring that they are not merely perceived as job seekers but also as job creators.
While the budget announcements reflected a well-rounded approach toward strengthening the root of the country’s economy, we anticipate more clarity around extremely relevant avenues like the ever-expanding gig economy and specifics around employment generation challenges in the forthcoming budget.
All in all, the government’s initiatives and approach, as reflected in the interim budget set a strong foundation for the country to transition into a ‘developed economy’ over the next few decades and emerge as a premier talent and employment hub at a global level.”

Rahul Guha, Director, CRISIL Ratings Ltd.
“Fisheries: The plan to double marine product exports to almost Rs 1 lakh crore, with a focus on building aquaculture infrastructure through five integrated aquaparks, will enhance operating efficiencies and quality. It will provide faster access to markets while offering economies of scale. Infrastructure development will allow players to make value-added offerings, giving Indian exporters an edge in an increasingly competitive market.
Sunrise domain: The allocation of Rs 1 lakh crore for long-term funding, along with interest-free 50-year loans, for new age technology, sunrise domains and deep tech in defence could stimulate entrepreneur interest in these segments. This corpus will help reduce entrepreneurs’ reliance on high-cost equity funding, while building investor confidence and conventional lender comfort.
Building materials: The extension of the Pradhan Mantri Awas Yojana (Grameen) to build over 2 crore houses and likely launch of a scheme to help sections of the middle class buy or build their own houses will propel demand for building materials such as secondary steel, ceramics, asbestos and PVC pipes. In particular, this will protect export-dependent sectors, such as ceramics, from sluggishness in the international markets.”

Sohinder Gill, Director General, Society of Manufacturers of Electric Vehicles (SMEV)
“The 2024-2025 Interim Union Budget emphasizes a green public transportation system, prioritizing a strong charging infrastructure for widespread adoption of electric vehicles. India's vast expanse requires a comprehensive network with thousands of installations. This commitment is poised to spur employment growth, benefiting startups and MSMEs, with ongoing service and maintenance creating additional job opportunities.
However, a noticeable gap in the budget is the absence of continued direct customer subsidies, a critical element that played a substantial role in driving the adoption of electric vehicles across various categories over the last two years. We eagerly await the government's comprehensive strategy and commitment to sustaining the electric vehicle manufacturing ecosystem. It is anticipated that a combination of fiscal and non-fiscal interventions will be outlined, offering crucial support for the industry in the coming years until it achieves a threshold for self-sustained growth.”

Rakshit Agarwal, Co-founder, Rupicard
“At Rupicard, we are heartened to see a budget focused towards promoting a financially inclusive India. As we witness a substantial 50% increase in the average real income of our fellow citizens, it is clear that a wave of progress is sweeping through our nation, which in turn increases the need for credit products for individuals from all walks of life. The government's unwavering commitment to 'Sabka Saath, Sabka Vikas, and Sabka Vishwas' aligns perfectly with our mission, to provide a secured credit card that is truly designed for Bharat.
The budget's emphasis on infrastructure and development creates a ripple effect on the entire economy. As opportunities multiply, the need for smart financial tools like Rupicard’s secured credit card grows. We stand ready to partner with the government's vision, ensuring no one is left behind in this exciting journey towards Viksit Bharat by 2047.”

Shailly Kedia, Senior Fellow, TERI and Curator of World Sustainable Development Summit
 “The government has continued to expand the mandate for green growth. It is encouraging to see allocations and green initiatives such as bio-manufacturing, bio-foundry, climate resilient blue economy, electric mobility and focus on clean energy including offshore wind energy. According to Demand No. 28, budget estimates for Ministry of Environment, Forests and Climate Change (MOEFCC) are INR 3265 crores. This is less than 0.07% of the total expenditure FY 2024-25. The expanding mandate for environment and climate change in India also needs to be reflected through increase in allocation the MOEFCC. Statement 12 and Statement 13 in the Union Budget are on Gender Budget and Child Budgeting respectively. To give further impetus on environmental goals and equity, Union budgeting should include Green Budgeting as the third pillar of issue-based budgeting processes. If not a dedicated statement, a green tagging process as stated in the Union Budget 2020-21 should start.”

V.P. Nandakumar, MD & CEO, Manappuram Finance Ltd
“By giving a new meaning to GDP – governance, development and performance – the Finance Minister, Nirmala Sitharaman, has laid out the road map for India to become a developed nation (Vikasit Bharat) by 2047. Also commendable is the Government’s resolve to stay on the course of fiscal prudence while taking steps to ensure sustainable growth and development on a durable basis. On the whole, the interim budget has ticked most of the right boxes without straying from the fiscal glidepath, despite impending general elections.”

K. Paul Thomas, MD & CEO, ESAF Small Finance Bank
"The Finance Minister’s announcement in the interim budget to prepare the financial sector to meet the investment need of the micro, medium and small enterprises (MSMEs) is a welcome development.  That will address the concerns of the MSMEs access to formal credit at competitive rates.  This is a very significant decision since smooth flow of formal credit will make the MSMEs more competitive not only in the domestic market but also in the global market place.  However, much depends on the fine print of the policy which I am sure will be an enabling document benefitting MSMEs immensely while opening up all new window for bank lending, particularly working capital loans and discounting receivables. Extension of PMAY scheme will help solve the housing shortage also this will be an opportunity for Banks to lead in the sector. Long term interest free fund for innovation in private sector is a welcome move. Focus on creating more women entrepreneur through SHG."

Prof Manoshi Roychowdhury, Co-Chairperson, Techno India Group

This year's Union Budget presents a unique opportunity to prioritize the needs and aspirations of the youth and invest in their future. As we chart our course towards economic recovery and sustainable development, let us ensure that the voices and concerns of the youth are heard and addressed.First and foremost, we must focus on enhancing access to quality education and skills training for the youth. Education is the cornerstone of empowerment, and investing in education is investing in the future of our nation. We must allocate sufficient resources to improve educational infrastructure, infra for health, expand scholarship programs, and promote vocational training initiatives that equip young people with the skills needed to thrive in the 21st-century economy. One should value the views of experienced senior people  because they can influence the youths not only for placements but also influence them to develop their  own entrepreneur skills for startups.

Meghdut Roychowdhury, Founder, Make calcutta Relevant Again & Chief Innovation Officer,Techno India Group
“The PM Mudra Yojana's remarkable achievement of sanctioning 43 crore loans, amounting to ₹22.5 lakh crore, is a testament to the government's unwavering commitment towards nurturing entrepreneurial ambitions among the youth of India. Coupled with supportive initiatives like Fund of Funds, Start Up India, and the Start Up Credit Guarantee schemes, these efforts are not just fueling the entrepreneurial spirit but also transforming young Indians into 'rozgardatas', the new job creators and innovators driving India's economic and social growth. This declaration in the Union Budget is a clear indication that the government is keenly focused on empowering the youth, which is essential for the nation's overall progress and prosperity.
It comes at a perfect time for us at Techno India Group as we start building the first and only Atal Incubation Center in West Bengal, under the AIM mission of Niti Aayog to boost entrepreneurship in the East.
Our unwavering commitment to this cause was further fortified through conversations with and support from some of India's biggest entrepreneurs and policymakers during our New Age India sessions at the World Economic Forum in Davos this year, and our will has never been stronger to build an innovation mindset amongst the youth and create thousands of more jobs in "India's Decade".”

Vinod Kumar Gupta, Managing Director, Dollar Industries Limited
“We applaud the government's vision to shape India into a Vikasit Bharat by 2047. As a responsible corporate entity, we are dedicated to contributing to this transformative path for the nation's prosperity. The decision to maintain the existing income tax slabs is a positive step, offering stability and predictability for taxpayers, crucial for sustaining economic growth and promoting individual financial planning. We express gratitude for the government's commitment to retaining the current tax rates for companies, LLPs, and individuals. The India-Middle East-Europe Economic Corridor opens unprecedented opportunities for businesses to broaden their horizons and participate in cross-border trade. The corridor's focus on connectivity and infrastructure development resonates with the logistical and supply chain requirements of industries such as textiles. We acknowledge the government's proactive and all-encompassing approach in the interim budget. We eagerly anticipate contributing to the shared journey toward a more robust, inclusive, and sustainable India. In this interim budget, the government has suggested a capital expenditure (Capex) of 11.11 lakh Crores, aiming to enhance the purchasing capacity of each individual,”
 

 
Tushar Choudhary, Founder & CEO, Motovolt Mobility
“We are optimistic about the government’s commitment to enhancing the e-vehicle ecosystem and promoting bio-manufacturing. We see this as a positive step forward and believe that Motovolt is poised to be a key player in this transformative journey. The emphasis on eco-friendly manufacturing is praiseworthy, and as a Kolkata-based company, we are particularly pleased to see the focus on empowering the eastern region of India. Our cutting-edge e-bikes portfolio, aligned with the government’s vision outlined in the interim budget, offers diverse choices to fulfil consumer needs. We are confident that Motovolt’s innovative, affordable, and environmentally friendly micro-mobility solutions will contribute significantly to  economic development and environmental sustainability. While we appreciate the steps taken in the budget, we were eagerly anticipating more details on the developments of FAME-III. EV OEMs have successfully revolutionized electric bicycles in India, and we hoped for coverage under FAME-III to help e-bike makers conquer the final frontier of affordability and inclusivity in a much stronger manner in the years ahead.”