Budget 2024 Reactions

Mr Arun Firodia, Chairman, Kinetic Group

“Finance Minister has announced many good schemes. I wish greater emphasis was given to a)Export promotion: by building Dedicated Freight Corridor , providing subvention of cost of electricity, interest and logistics, providing credit for keeping export stock in godown b) employment generation : by exempting msme from labour laws c) enabling farmer to take 2 or even 3 crops by promoting Water conservation in farms by jaltara, d) In order to promote investment by private sector : by reinstating Investment Allowance Reserve and allowing accelerated depreciation.”

Mrs Geetanjali Kirloskar, Chairperson MD Kirloskar Systems Ltd and Member, CII National Council

“Union Budget’s focus on empowering women and youth in the workforce is very welcome . Establishing working women hostels and creches in collaboration with the industry will significantly boost female participation. Fostering a more inclusive and diverse manufacturing sector.”

Dr Preeti Joshi, Principal – Arts, Humanities and Social Sciences, Sri Balaji University, Pune (SBUP)

“E-vouchers for loans up to ₹10 lakh for higher education in domestic institutions will be provided to 1 lakh students each year is a significant announcement for higher education in this budget. Under this initiative the government will provide e-vouchers and will cover an annual interest subsidy of 3% on the loan amount. This will surely encourage talented youngsters to go for higher education within the country rather than going abroad. Allotment of Rs.1.48 Lakh Crore in the budget for education, skilling and employment will surely benefit the youth of the country and for shaping up the future of the country. Another welcome step for the youth is the plan to undertake the skill development of 20 Lakh youngsters through 1000 industrial training units which will be upgraded and shall run courses as per the industry needs. Overall, a very good budget as far as an effort to provide jobs and skill development to the youth is concerned.”

Mr Niranjan Kirloskar – MD of Pune-Headquartered, Fleetguard Filters.

“The Union Budget presented today aligns well with the Government’s vision of a Viksit Bharat. The budget highlights several positives aimed at boosting economic growth, employment, sustainability, and inclusive development.

Special focus and reiteration of skilling, employment, manufacturing, strong infrastructure development, agriculture, and R&D, among other mentions, should positively reassure companies to focus on investing in all levels of its employees – especially newer ones, and also concentrate on becoming future-proof, by investing in rigorous research and development.

In addition to the above, proposing a climate taxonomy, or, climate finance to encourage greener businesses and, in turn, create a greener economy in the long run, signifies the important role of Indian companies in the fight against global climate change and aligns with global ESG goals which can make Indian companies highly attractive for FDI.

Overall the government aims to balance economic growth with sustainability and inclusivity ensuring long-term benefits across various sectors.”

Mr. Sachin Bhandari, Executive Director and CEO, VTP Realty

“The recent budget announcements are set to have an immediate and direct impact on the real estate sector. Developers heavily reliant on investors will be adversely affected by the government’s decision to rationalize the Long Term Capital Gains (LTCG) tax, reducing it from 20 percent to 12.5 percent. However, the elimination of the indexation benefit when applying LTCG means the overall tax outflow will be higher under this new regime. This move is likely to dampen investor sentiment, removing key incentives and directly impacting developers dependent on investors.

Conversely, the government’s proposed initiatives, such as promoting MSMEs, extending credit guarantees, and furthering infrastructure development, alongside a focus on the PM Awas Yojana, indicate a strong commitment to revitalizing MSMEs, the backbone of the Indian economy. This will drive growth in the affordable and mid-level real estate segments, provided these efforts are implemented successfully”.

Abhishek Teri – Co-Founder, Underrated Club (MSME and Retail)

“Today’s Indian budget announcement has brought a mix of optimism and cautious anticipation for the textile industry. The government’s decision to allocate additional funds for technological advancements and skill development is a welcome move, poised to enhance productivity and global competitiveness. The emphasis on improving infrastructure and logistics will undoubtedly benefit the sector by reducing operational costs and improving supply chain efficiency.

However, the industry had higher expectations for more substantial tax reliefs and incentives, especially in light of rising raw material costs and global market pressures. While the budget does provide a solid foundation for growth, it falls short in addressing some of the immediate financial concerns of textile manufacturers. Continuous engagement with industry stakeholders will be crucial to ensure that the sector can fully leverage these initiatives and navigate the challenges ahead effectively.”

Rashmi Ghatge – Director, ParamYoga (MSME Sector)

“The Union Budget 2024 presents a progressive and comprehensive approach to fostering economic growth, employment, and social welfare. The increase in the standard deduction and revised tax rate structure in the new tax regime provides significant relief to salaried employees, with potential savings of up to Rs 17,500. The focus on corporate tax reductions, particularly for foreign companies, along with simplified FDI rules, is expected to bolster foreign investments and drive economic expansion.

The government’s emphasis on MSMEs, with enhanced Mudra loans and a special credit guarantee scheme, demonstrates a commitment to nurturing small businesses and boosting manufacturing. The allocation of Rs 2.66 lakh crore for rural development, along with the launch of Phase 4 of the PM Gram Sadak Yojana and the construction of three crore additional houses under the PM Awas Yojana, highlights a strong focus on rural infrastructure and housing.

The introduction of employment-linked skilling schemes and internships in top companies for one crore youth over five years underscores the government’s dedication to addressing unemployment and enhancing skill development. Furthermore, the special financial support for flood-impacted states and comprehensive development plans for key tourist and cultural sites signify a balanced approach to regional development and heritage conservation.

The reduction in customs duties on essential goods and components, along with the exemption of certain cancer treatment medicines from customs duty, reflects the government’s sensitivity to public welfare and healthcare needs. Overall, the Union Budget 2024 aims to create a robust foundation for sustainable growth, inclusive development, and improved quality of life for all citizens.”

Mr Anshul Jain, Chief Executive – India, SE Asia & APAC Tenant Representation, Cushman & Wakefield

” We welcome the Union Budget 2024-25, which reinforces the government’s commitment to ‘nation building’ through strategic policy reforms, regulatory relaxations and financial incentives. This budget focuses on consolidating gains in the engineering & manufacturing sector, along with providing a boost to formal job creation and skill development. The abolition of angel tax and reduction of corporate tax on foreign companies are particularly encouraging for start-ups and Global Capability Centers (GCCs), all of which have been big drivers of commercial real estate demand. Long Term Capital Gains (LTCG) on housing sales has been reduced from 20% to 12.5%, however the indexation benefit which was there earlier has been removed. This is more in line with Government’s focus on simplification of tax structure. This would have a short- term impact on the investment demand for residential units, however considering the demand from end users and overall economic growth, this may not have a material impact on the residential sales.

The budget’s ambitious reforms under the PM Awas Yojana, with a substantial ₹10 lakh crore allocation, demonstrate a strong commitment to affordable housing for the poor and middle class. The planned completion of three crore housing units and the provision for rental housing with dormitory-style accommodation for industrial workers further underscore the government’s dedication to addressing housing needs.

We are particularly enthused about the initiatives focused on land reforms and the digitalization of land records. Continued focus on infrastructure and tourism shall provide the required foundation of economic growth. This budget prioritizes laying a strong foundation for future growth. We firmly believe that it will foster robust economic growth across sectors, leading to prosperity for all, uplifting communities, creating jobs, and moving the country closer to achieving ‘Viksit Bharat’ by 2047.”

Mayank Kumar, Co-founder & MD, upGrad

“Budget 2024-25 allocations towards skilling and employment and Startup growth marks a watershed moment in India’s journey towards becoming the world’s largest talent economy.

With a very strong emphasis on skilling and employment and bridging the talent-academia gap, GOI’s allocations—to fuel aspirations of 4.1 crore youths, empower women to join the workforce, and provide tax benefits and loans like Skilling loan (upto INR 7.5 lakh) and Education loan (upto INR 10 lakh)—is a masterstroke, set to unlock India’s demographic dividend and drive growth. This budget is not just a financial plan but a blueprint for a brighter future where India’s youth will thrive and continue to lead global job requirements.

Innovative initiatives announced, such as the scheme to boost job creation in the manufacturing sector, incentives for EPFO contributions, and reimbursement for additional employee EPFO contributions, demonstrate the government’s commitment to creating a conducive employment ecosystem. India’s economic growth, described as a “shining exception,” will propel its focus on innovation and growth with a focus on job creation and skilling. The skilling loan and education loan initiatives will further empower India’s youth to drive growth and innovation.

Moreover, the government’s scheme to provide internship opportunities to 1 crore youth in 500 top companies over 5 years will bridge the industry-academia gap and enhance employability, empowering India’s youth with the opportunities they need to bridge the talent supply demand across global jobs. With such bold commitments towards jobs, skilling, and employment, Budget 2024-25 ignites a talent revolution in India, poised to propel the nation’s youth to global leadership.

By abolishing angel tax, the government has given a major fillip to the startup ecosystem, fostering more investments, growth, and innovation in India, and enhancing its capabilities to cater to global demands. Additionally, the reduction of capital gains tax for unlisted equity aligns it with listed equity is another strong move, further boosting investor confidence and liquidity in the startup space.”

Mr. Baba Kalyani, Chairman & MD,Bharat Forge Ltd.

“I congratulate the Hon’ble Finance Minister for an excellent budget that lays strong emphasis on strengthening the fundamental pillars that would propel Indian economy towards a Viksit Bharat.

The focus on natural farming and agricultural productivity, incentivizing job creation and employment, continued impetus to bolster MSMEs, modernizing urban cities and policies aimed at accelerating India’s energy transition will have a long-standing affect that would significantly improve economic resilience in an otherwise volatile world economy. I would also particularly commend the fresh-thinking and approach of the government in ‘Skilling’ and ‘Urban development’ both of which demanded urgent attention.

Infrastructure creation, which is a direct contributor to India’s competitiveness and positioning as a favoured investment destination, has been the hallmark of Prime Minister Modi’s governments; continued attention towards roads, ports, plug & play industrial parks, irrigation projects and affordable housing is noteworthy. Special thrust given on promoting Tourism is a welcome move which would have a great multiplier effect on local economies.

I greatly appreciate the operationalization of Anusandhan NRF and the exclusive venture-fund for Space segment. More importantly, the 1-lakh crore financing pool to bolster private sector driven research and innovation at commercial scale will have a great impact in transitioning India towards a Product’s Nation in the long-term.

While the budget allocation for Defence Industry is in expected lines, creation of the Critical Minerals Mission and articulation of India’s strategy on Small Modular Nuclear Reactors will go a long way in bolstering the AatmaNirbhar Bharat agenda.

We are all greatly inspired by the vision for a Viksit Bharat by 2047 and I am confident that these initiatives collectively signal a robust blueprint for India’s progressive, integrated and inclusive development.”

Mr. Rohit Gera, Managing Director, Gera Developments

“The move to align long term capital gain tax for real estate with other financial assets is a positive move and will make investment in real estate more attractive. Eliminating indexation will hurt people who have long term investments in real estate.”

Mr. Abrarali Dalal, Director & CEO, Sahyadri Hospitals –

“The government has allocated ₹89,287 crore for the development, maintenance, and improvement of the country’s healthcare system, a slight increase from ₹88,956 crore in FY24. The union budget’s removal of basic customs duty on three critical cancer treatment drugs and the reduction of duties on medical technologies such as X-ray tubes and flat panel detectors will notably enhance the affordability and accessibility of healthcare, particularly for advanced cancer treatments. Through the ‘Anusandhan National Research Fund’ the increased research funding will foster innovation, development and improved treatment options in the healthcare sector. Although these initiatives show promise, there is still potential for further enhancements to fully bolster India’s healthcare infrastructure.”

Mr. Abhinandan Lodha – Chairman, The House of Abhinandan Lodha

“The 2024-2025 Budget is a growth-centric blueprint with profound implications on employment and employability through real estate, infrastructure, and tourism. This budget marks a significant shift towards holistic growth, focusing on affordable housing. The allocation of ₹2.2 lakh crore for constructing one crore houses in urban areas and two crore houses in non-urban areas demonstrates the government’s commitment to improving living standards. This initiative will generate substantial employment opportunities and bolster ancillary industries. The ₹1.5 lakh crore incentive for infrastructure development will enhance connectivity and drive growth across states. The PM Awas Yojana, with a budget of ₹10 lakh crore, alongside the rationalization of stamp duties, digitization of land records using GIS, and introduction of unique land parcel identification numbers for rural areas, reflect a forward-thinking approach. Additionally, the ₹10 trillion allocation for tourism and cultural corridor development will stimulate local economies. These measures are poised to invigorate the real estate sector, setting the stage for a robust economic future.”