Interim Budget 2024: Industry Reactions (Part-8)

Pinkesh Kotecha, MD & Chairman, Ishan Technologies
“While the Interim Budget provides a wide overview of FY24-25, we applaud the government's emphasis on empowering the youth through upskilling and reskilling initiatives. The establishment of additional IITs, IIITs, and IIMs is a promising stride toward creating a skilled talent pool in the IT sector, addressing a critical need in the industry especially in the era of Artificial Intelligence.
As an MSME in the IT sector, Ishan Technologies appreciates the government's recognition of the importance of timely finances, relevant technologies, and training for the growth and global competitiveness of MSMEs. The orientation of the regulatory environment to facilitate the growth of MSMEs is a crucial element of the policy mix, and we look forward to the positive impact it will have on the MSME ecosystem.
As we look forward to the budget announcement in July, we anticipate a focused commitment to bolstering cybersecurity measures. We believe that additional allocation and specific policies in this crucial area will play a pivotal role in fortifying India's digital infrastructure and enhancing overall cybersecurity, aligning with the nation's vision for a secure and resilient digital future.”

Rohit Gupta, CEO, Mantra Properties
"We applaud the visionary approach of the government reflected in the Union Budget 2024-25 announcement. The emphasis on Awas Yojana Gramin, particularly the commitment to achieving 3 crore houses and empowering women with significant ownership in rural areas, aligns seamlessly with our industry's mission for inclusive and sustainable development.
The introduction of a scheme supporting middle-class home ownership and the substantial allocation of Rs 11.11 lakh crores for infrastructure in FY25 underscore the government's understanding of the important role played by the real estate sector in our nation's growth. This collaborative and forward-thinking budget sets a positive tone for our industry, adopting an environment of optimism, innovation, and shared prosperity. We look forward to contributing actively to the nation's progress and development under the supportive policies laid out by the government."

Hitesh Sharma, Partner, Life Sciences Leader – Tax, EY India
Given the Government’s perspective of keeping the interim budget an on-account vote, the Finance Minister did not dwell into any specifics, leaving the changes for the full budget post elections.  While she spoke of the past performance, as far as the Health Science Sector is concerned, there was some perspectives on things to come in future. 
There was a commitment to focus on setting up medical colleges in existing hospitals, focus on women healthcare with encouragement of cervical cancer vaccination for young girls, maternal and childcare related schemes for improved nutrition delivery, early childhood care and development etc. The focus on research and innovation was given a further boost by announcing a one lakh crore corpus for providing interest free loan for a long duration for research and innovation for private sector.  Also the cover under Ayushman Bharat Scheme has been extended to cover ASHA workers, Anganwadi workers and helpers. 
On the tax front, the expectation of extension of concessional tax regime of 15% for manufacturing facilities beyond 31 March 2024 remained unmet.
While we will look at the full budget in July for more details, what is also positive is that there is increase in outlay on Health for FY 2024-25 versus the revised estimates for FY 2023-24.  So overall the budget continues the path for growth of healthcare and access in India."

Gurmit Singh Arora, National President, Indian Plumbing Association
“Under the PM Gati Shakti Plan, 75000 crores have been invested in 2023-24 across 100 critical projects. The master plan is integral to India’s aim to build an inclusive, integrated, and comprehensive economy. Through systematic investments and capacity building it will improve productivity and enhance the overall business climate. The mega plan will be an absolute game changer for tier 2 and 3 cities in India through accelerated last mile connectivity, mass mobility, green growth, and financial investments. Naturally this will translate into increased demand for housing, commercial projects, warehouses, industrial parks, townships, etc.”

LC Mittal, Director, Motia Group
“The union budget reiterates a healthy economic growth marked by improved tax receipt, doubling of GST tax base, revision of fiscal deficit, etc. A healthy economy will augur well for real estate. GOI will come up with better policies and incentives to support mid-income housing, which is a commendable step. Another factor to look into is the constant growth in infrastructure through constructive steps. GOI has announced plans to build more airports, railway corridors, metro lines, EV facilities, etc. This will naturally translate into higher realty demand.”

Anurag Goel, Director, Goel Ganga Developments
“In the middle income segment, incentivizing the women buyers can be a constructive step. This will increase the participation of women in the property market while also uplifting the overall demand. Women are now an important force in the Indian economy, as it is essential to leverage their potential judiciously. Another prudent step is to reduce the rental income taxation. In India, the rental income is taxed at 30%, which is seemingly high and is touted as a deterrent. A lowered rate will incentivize investments in the rental markets and can be instrumental in bridging the existing housing gaps, especially in urban centers.”

Aman Gupta, Director, RPS Group
“PM Gatishakti project can bring a windfall for real estate markets in tier 2 and 3 cities in India. The multimodal logistic projects will comprise building new airports, mass transit systems, railway corridors, roadways, waterways, etc. It will create a framework for a more inclusive, integrated, multi-phased growth in India. This will act as an economic growth multiplier with increased capacity development, employment creation, and investment inflow. Naturally this will push ahead real estate demand.”

Ananta singh Raghuvanshi, President, NAREDCO Mahi
“Benefits for women and first home buyers of a substantial nature will work as a catalyst in mid segment. Third home buyers to be encouraged. Rental income taxation to be reduced.”

Murty LVLN, CEO, Dvara KGFS 
“The Interim Budget 2024-2025 has highlighted the importance of empowering 4 major castes - ‘Garib’ (Poor), ‘Mahilayen’ (Women), ‘Yuva’ (Youth) and ‘Annadata’ (Farmer). We are happy to notice the significance given to farmers and women SHGs. The continuous focus of the budget on the MSME sector, to compete globally, will result in a positive incentive for the rural parts of the country, thereby, increasing the rural GDP. Sufficient importance is also given to ensure timely and adequate finances, relevant technologies and appropriate training is provided to MSMEs. The boost given to ‘Annadata’ through the various farmer schemes and e-mandis will also be in favor of many Fintech and Agritech companies.”

Tanu Jain, Co-founder & CEO, Reboot Game Studios Pvt Ltd.
“It's interesting to observe an array of initiatives and schemes unveiled for the Indian youth in the Interim Budget 2024. The budget demonstrated inclusivity, addressing various sectors, and focusing on the Indian economy. Although expectations were high for the gaming ecosystem, the absence in addressing AVGC sector was notable. That said, the gaming industry remains cautiously optimistic. As stakeholders analyze the fiscal landscape, the quest for a favorable environment for creativity and technological advancement continues.”
 

Archana Srinivasan, Chief Financial Officer, iOPEX Technologies
“The emphasis on GYAN, infrastructure and construction through schemes such as affordable housing and solar and EV investments is positive. The overall impact sets the tone for unprecedented development. We will wait to see the fine print for the changes in areas such as TCS. The budget is silent on the banking, IT sectors and we will continue to be optimistic on the proposed investments to result in more disposable income in the hands of the middle class and aggressively manage inflation.”

Joby CO, CEO & Co-founder, KiVi 
“The Interim Budget 2024-2025 has been positive for Agritech and AgriFintech companies. Under the various schemes for the ‘Garib’ and ‘Annadata’, many farmers belonging to small and marginal categories will be happy to receive financial assistance. The focus on Electronic National Agricultural Market and technology provisions made for mandis will benefit companies many Agri-fintech companies. The budget has also quoted value addition in the agricultural sector which will come in as a boon to farmers wherein schemes like PM Formalization of Micro Food Processing Enterprises Yojana will ensure reduction in post-harvest losses. Bringing in public-private investments in post-harvest activities such as aggregation, storage, supply chains, processing, marketing and branding of the yield will promote growth, productivity and improve farmer incomes.”   

Ravi Mittal, Founder & CEO of QuackQuack
"As the Founder of a startup, I am thrilled to witness the visionary steps taken in the Union Budget 2024. The allocation of a 1 Lakh Crore fund for long-term, low-interest loans towards deep tech in defence is a testament to the government's commitment to fostering innovation. With 43 crore loans sanctioned through PM Mudra Yojana, totaling 22.5 lakh crore, our youth's entrepreneurial aspirations are also being significantly supported. The extension of tax benefits and continued support through schemes like Fund of Funds, Start-Up India, and Start-Up Credit Guarantee until March 2025 further exemplifies the government's dedication to empowering startups. At QuackQuack, we are excited about the opportunities ahead."

Pritesh Mahajan, Co-Founder & CEO of Revamp Moto
 "The electric vehicle industry has exciting potential for the Interim Budget of 2024. A big step towards a sustainable future has been taken by the government's commitment to developing the EV ecosystem, assisting with production, and funding charging infrastructure. In addition to being in line with our environmental objectives, the focus on promoting e-buses for public transport and the implementation of a bio-manufacturing programme open doors for creative, sustainable alternatives. Furthermore, a comprehensive strategy is shown by the actions taken to harness offshore wind energy and encourage the gradual integration of biogas into natural gas. This budget not only jumpstarts our path to "net-zero," but it also ushers in a new era of environmentally friendly growth and conscientious manufacture for Revamp Moto and the entire EV industry."

Madhusudan Ekambaram, Co-founder and CEO of KreditBee
“I applaud the government's steadfast commitment to fostering comprehensive and inclusive development. Initiatives such as PM Mudra Yojana, Fund of Funds, Startup India, and Startup Credit Guarantee Schemes are effectively nurturing the entrepreneurial spirit nationwide. It is truly inspiring to witness a visionary approach that extends beyond mere economic growth, with a goal to transform India into a Viksit Bharat by 2047. The proposed measures, including tax reductions, specialized support for developing industries, and augmented infrastructure spending in the forthcoming Budget 2024, are encouraging signs for the future, reflecting a collective endeavor towards sustainability, growth, and innovation within India's dynamic startup ecosystem.
 
The reinforcement of the financial sector has significantly enhanced the efficiency of savings, credit, and investments. Ensuring timely and ample financial support, leveraging relevant technologies, and providing appropriate training for Micro, Small, and Medium Enterprises (MSMEs) are pivotal policy priorities for the government. This strategy aims not only to foster their growth but also to enhance their global competitiveness. Aligning the regulatory environment to facilitate the expansion of MSMEs will be a crucial aspect of this comprehensive policy framework.”

Anant Jain, Head of Customer Success – India, GfK – An NIQ Company
"In today’s budget, the Finance Minister's focus on uplifting the Poor, Women, Youth, and Farmers aligns with India's aspirations. The Government's positive trajectory envisions India's journey to a 5 trillion-dollar economy and 'Viksit Bharat'. Initiatives like PLI, affordable housing, and alternate energy continue to drive transformation in the consumer tech and durables sector. The 2024 outlook anticipates strategic purchases and aspirational upgrades, fueled by the young population and expanding middle class. Government innovation and purposeful investments will be pivotal for sustained success. Despite global uncertainties, India's consumer resilience, highlighted in the November’23 RBI Survey, points to positive economic prospects. According to the GfK Consumer Life Survey 2023, nearly half of urban Indian consumers express confidence in an improved personal economic situation in the near future. Thus, the potential impact on the consumer tech and durables industry remains optimistic, leveraging India's dynamic demographics and economic opportunities."

Punit V. Sood,  Founder & Director of  Karabi Art Community
"The PM Vishwakarma Yojana has the potential to completely transform the artisan and crafters community at Karabi Art Community thanks to its significant financial investment and all-encompassing methodology. The program's dedication to providing comprehensive assistance, including monetary support, instruction, and exposure to contemporary methods, is a game-changing move. In addition to streamlining the registration process and bringing accessibility into the modern era, the biometric-based portal offers free registration, which benefits our community. This project has the potential to improve our abilities, give much-needed financial support, and create a growth-oriented atmosphere. Because the program covers a wide range of 18 trades, it is inclusive and benefits a diverse group of artisans. All things considered, the PM Vishwakarma Yojana is a shining example of empowerment, promising to strengthen and elevate our sector by providing us with the tools, information, and assistance required to prosper in a changing and cutthroat environment."

Manoj Tulsian, CEO and Joint Managing Director, Greenply Industries Ltd.
“We embrace the optimistic outlook presented by the interim budget 2024-25, foreseeing transformative impacts on our industry. The government's forthcoming initiative to empower middle-income families with homeownership is truly commendable, holding the potential to stimulate demand for construction and positively influence our sector.
The budget's emphasis on clean energy, particularly in harnessing offshore wind and promoting CBG blending, perfectly aligns with Greenply's unwavering commitment to sustainability. The increased allocation for capital expenditure is a welcome signal, as it has undeniably acted as a catalyst for robust infrastructure development in recent years.
While the interim budget introduces promising measures, their ultimate success hinges on clear roadmaps, focused implementation, and addressing industry-specific concerns. We maintain hope that the government will engage in collaborative dialogue with stakeholders, ensuring these initiatives translate into tangible benefits for the nation's economic prosperity and environmental well-being.”