Guest AuthorThe much awaited budget of the year is now announced. A series of social security schemes followed by infrastructure push have dominated the budget. Added to this, abolishing angel tax was the highlight of the budget and startup entrepreneurs as well as investors are welcoming this move. Here are some thoughts shared by business leaders from different sectors.
Lakshmi Mittra, SVP and Head of Clover Academy
The Union Budget 2024’s focus on upskilling and education is a crucial step towards empowering youth and preparing them for the ever-changing demands of the tech industry. The allocation of Rs 2 lakh crore to five key schemes aims to create jobs and provide skill development opportunities to 41 million young people over the next five years. This strategic investment will bridge the gap between current skills and industry needs, equipping our young population for future challenges.
In addition, the initiatives to increase women’s participation in the workforce are significant strides toward gender diversity. These include the establishment of working women’s hostels in partnership with industry, the setup of creches, women-specific skilling programs, and the promotion of market access for women-led self-help group enterprises. With over Rs 3 lakh crore allocated for women’s initiatives, the government is fostering an environment where women can thrive and make substantial contributions to the tech industry.
Parimal Heda, Chief Investment Officer, Go Digit General Insurance
The Union Budget 2024 has maintained its commitment to fiscal prudence yet announced various tax-friendly measures for the Indian taxpayers. From the perspective of the Insurance Sector, amendment made by the government to clarify various activities in insurance sector as neither a supply of goods nor a supply of services is an extremely positive measure for the sector. This will immensely reduce compliance and ongoing litigation burden and provide overall stability to the sector.
Rationalisation of tax deducted at source (TDS) from 5% to 2% for payment of insurance commission to individual agents will ensure additional income in the hands of such individuals for payments made by the insurers. TDS reduction to 2% for payment of bonus or proceeds made on life insurance policies upon maturity will also ensure higher receivables for individual policyholders.
Abolishment of angel tax for all classes of investors will provide a huge fillip to the start-up sector that in the past had witnessed funding winter. This will bring in the much-needed capital, especially from the foreign investors to the growing start-up ecosystem of the country and aid in their future growth.
Floods are one of the most common natural disasters in India. Identifying key states, the government has taken strong steps towards flood mitigation. As systemic risks of floods get mitigated over time through various measures like flood-controlled structures, it will aid insurance companies in underwriting the risks related to liability and property insurance better going forward.
New assessment model for MSME credit and announcement of credit guarantee scheme will also foster better insurance collaboration with lending companies and aid in better assessment of risks.
From an ancillary benefits point of view, the government’s proposal to boost domestic tourism and unlock economic potential of key destinations will have an ancillary impact on travel insurance as well and boost its uptake as bite-sized travel insurance products will likely become part of travellers’ planning.
The government’s aim to prioritise agriculture research and developing climate-resilient varieties of 32 field and horticulture crops will also have an ancillary effect on the crop insurance segment as losses over medium- to long-term will likely reduce from loss of crop due to climate-related incidents.
The Finance Minister’s financial sector vision and strategy document will also be another keenly watched policy by the BFSI sector to garner better insights on the agenda planned by the government for the remaining decade.
Amrit Acharya, Co-founder & CEO, Zetwerk
The government’s dedication to empowering MSMEs through various initiatives deserves praise. These initiatives, like the Credit Guarantee Scheme, will grease the wheels of manufacturing by simplifying access to loans for critical machinery and equipment purchases. Additionally, Digital Footprints for Credit Assessment will open financing doors for MSMEs without formal accounting systems. The MUDRA scheme’s increased loan limit empowers successful entrepreneurs to scale their businesses, while expanding the TReDS platform improves MSME working capital by facilitating easier conversion of receivables into cash. Zetwerk works with over 10,000 small manufacturing partners and these were some genuine issues which were plaguing their growth.
The Employment Linked Incentive is a game-changer, offering a helping hand to new employees and motivating manufacturers to create jobs. This will significantly boost the economy and address the manufacturing sector’s talent shortage.
The development of “plug and play” industrial parks in nearly 100 cities with complete infrastructure is a positive step towards creating a more manufacturing-friendly environment. Measures like reduced customs duty on mobile phones and components, abolishment of angel tax for startups, and the expansion of exemptions for solar cell and panel manufacturing will all contribute to propelling domestic manufacturing and innovation. At Zetwerk, we are committed to building a pan-India manufacturing footprint across electronics, renewables and aerospace & defence sectors and be a key player in India’s growth story. We believe the budget’s measures will create a more supportive environment for manufacturing, empowering businesses like ours to flourish.
Puneet Gupta, Vice President & Managing Director, NetApp India/SAARC
The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, highlights digital infrastructure as a key driver of economic development. The substantial allocation of over 11 lakh crore rupees for infrastructure development and the support for private sector investments signal a strong commitment to advancing India’s digital capabilities. NetApp’s objective of advancing intelligent data infrastructure closely aligns with this focus on digital infrastructure.
At NetApp, we recognise that effective digital infrastructure is essential for enhancing productivity, creating business opportunities, and fostering innovation. The Budget’s emphasis on improving data governance, including better data collection, processing, and management through sectoral databases and technology tools, supports our goals. By utilising AI and observability, we are committed to advancing these initiatives and improving data management, cyber resilience, and data governance. Additionally, the government’s significant provision of Rs 1.48 lakh crore for education, employment, and skilling will be instrumental in developing a workforce equipped to harness these advancements effectively.
The government’s focus on promoting women’s participation in the workforce through the establishment of working women hostels and the allocation of over Rs 3 lakh crore for schemes benefiting women and girls is commendable. These initiatives will enhance diversity and inclusivity in the tech sector, fostering a more balanced and innovative workforce that drives industry growth and progress.
Dilip Gangaramani, Founder Director & CEO of Target Publications Pvt. Ltd.
The government’s initiative to provide financial support for higher education loans up to Rs 10 lakh is commendable. This move will enhance accessibility to quality education. The allocation of Rs 2 lakh crore for employment and skilling initiatives is also a positive step towards addressing youth unemployment. Interestingly, the proposed comprehensive internship program for one crore youth is a commendable initiative, emphasizing its potential to bridge the gap between academia and industry.
Overall, the budget’s focus on education, employment, and skill development aligns with the nation’s developmental goals and is a welcome step forward. These measures, if implemented effectively, can significantly boost India’s human capital development and contribute to a more skilled and employable workforce.
Su Piow Ko, CEO of AET Displays
The Union Budget 2024-25 marks a significant leap forward for the manufacturing sector, especially with its targeted support for MSME clusters. The introduction of easy financing options, credit guarantee schemes, and collateral-free term loans for machinery and equipment will substantially enhance the network of manufacturers and suppliers, acting as a catalyst for growth and innovation across the supply chain. Furthermore, the budget’s focus on boosting employment in the manufacturing sector addresses a critical challenge, fostering a more dynamic and robust workforce.
Additionally, the proposed reduction of basic customs duty (BCD) on mobile phones, mobile PCBA, and mobile chargers to 15% is a welcome move, aimed at making electronics more accessible and competitive. The removal of BCD on oxygen-free copper for resistor manufacturing and the exemption of certain parts for connectors will further bolster domestic value addition in the electronics industry. These measures align perfectly with our goals at AET Displays, reinforcing our confidence in the government’s commitment to advancing the electronics sector and driving sustainable industry growth.
Rohan Bhargava, Co-Founder of CashKaro
The Union Budget 2024 brings substantial changes to personal finance that will benefit a large number of taxpayers. The increase in the standard deduction from ₹50,000 to ₹75,000 and the revision of the tax slab limit for the 5% tax rate from ₹5 lakh to ₹7 lakh will significantly enhance disposable income. These changes will provide much-needed financial relief to the middle class and boost overall consumption.
Furthermore, the proposal to increase the deduction of employer expenditure towards NPS from 10% to 14% of the employee’s salary will improve social security benefits for the workforce. The revamp of the capital gains tax regime will impact investment decisions and financial planning, ensuring a more balanced and fair approach to taxation. These measures collectively contribute to a more robust and financially secure environment for individuals and families across India.
Megha Gambhir, Founder and CEO of Stupa Sports Analytics
The removal of angel tax is a big boost for the Indian startup ecosystem and will make the path for startups like ours easier, so we can focus on building innovative tech solutions without previous financial burdens. Additionally, the announcement of investing in sports infrastructure in states like Bihar is positive news for continuing to develop sports at the grassroots level in our country. This will eventually lead to more facilities, academies, and sports centers integrating cutting-edge tech solutions in the coming years, and transform the way sports are played, viewed, and organized.
Kunal Arya, Founder & Managing Director of ZELIO e-bikes
We appreciate the Finance Minister’s focus on job creation in the manufacturing sector through the new employment-linked scheme and the substantial allocation of Rs 2 lakh crore for education, employment, and skilling initiatives. The incentive for employing first-time workers and the credit guarantee scheme for MSMEs will undoubtedly provide much needed support to our manufacturing partners and foster a more skilled workforce. In particular, the emphasis on increasing women’s workforce participation and the substantial rise in funds for women’s empowerment are commendable steps toward building a more inclusive and diverse workforce.
However, we were expecting more targeted measures for the EV sector’s specific needs. While the budget sets a positive foundation for growth, it falls short on increasing funding for EV charging infrastructure, which is crucial for building consumer confidence and accelerating EV adoption. Additionally, reducing GST on EV components and batteries would have been beneficial in lowering costs and making electric vehicles more accessible. Simplified financing options and enhanced support for R&D in EV technology would also have bolstered innovation and strengthened global competitiveness.
Gaurav VK Singhvi Managing Partner, Avinya Ventures
We are thrilled to see the Union Budget 2024-25 address critical areas for startup growth, particularly through the proposed abolition of angel tax. This pivotal change will remarkably enhance the attractiveness of investing in DPIIT-registered startups, aligning perfectly with our mission at Avinya Ventures to support visionary entrepreneurs with a deep understanding of their markets and a commitment to innovation. By removing this tax barrier, we anticipate a surge in investment activity, which will empower more startups to scale and thrive.
In addition to the angel tax abolition, the Finance Minister has extended the definition of ‘eligible startup’ under the Startup India scheme to include entities incorporated between April 1, 2016, and March 31, 2025. This extension allows more startups to benefit from the tax holiday offered under the scheme, further broadening the support available to emerging ventures. Moreover, the allocation of ₹1000 crore to fund space startups is a visionary move that reflects a growing recognition of the potential within high-tech and frontier sectors. As a SEBI-approved early-stage venture capital fund, we are excited about the opportunities this creates for supporting startups with strong founder market fit in emerging fields.
Sriram Kanuri, CEO & Founder, Arteria Technologies
We applaud the government’s focus on MSMEs and manufacturing in this year’s budget. The introduction of a credit guarantee scheme and support for machinery purchases are crucial for empowering small businesses to scale and innovate. At Arteria Technologies, we believe these initiatives will enhance the digital transformation journey for many, making businesses more efficient and globally competitive.
The proposed credit guarantee scheme of Rs 100 crore will surely modernize the manufacturing sector by enabling MSMEs to invest in advanced technologies and infrastructure. By providing financial support, the scheme strengthens the manufacturing ecosystem, fostering innovation and competitiveness. This initiative positions India to move towards becoming a global manufacturing powerhouse, as it equips businesses with the resources necessary to expand their capabilities and enhance their global presence.
When we talk about bridging the credit gap, we believe this will help the MSME sector by making it easier for small businesses to access necessary funding. By reducing financial barriers, the scheme allows MSMEs to secure the capital required for growth and modernization, making sure they can compete on both national and international stages. This increased access to credit empowers businesses to innovate and thrive, contributing to a more robust economic landscape.
The financial package for technology support aligns with goals like ours to streamline supply chains through automation for all MSMEs in the manufacturing space. With the expansion of SIDBI branches, MSMEs will gain better access to essential resources, benefitting companies like ours and many more that are coming up in various industries, and especially those in the manufacturing segment. With such support from the government, we can expect to see India becoming a hub of not just manufacturing but also of some of the best MSMEs the Asia-Pacific region might get to see. This budget lays the groundwork for a robust, tech-driven economic future.
Mukesh Taneja, CEO and Co-Founder at GT FORCE
It’s great to see how the Government thought of helping the MSMEs with funds requirements by announcing the credit guarantee schemes for MSMEs in manufacturing. Also to address the other problems of manufacturers of getting the skilled workforce investments in 1,000 industrial training centers aimed at skill development. However, the 2024-25 Budget could have also included the anticipated increased budgetary allocation for expanding EV charging infrastructure nationwide, as this remains a key factor in boosting consumer confidence in electric mobility. While the budget sets a positive foundation for growth, we believe there is room for further action to accelerate EV adoption and position India as a leader in the global EV landscape.
Ayushi Arora Gulyani, Founder & CEO, Media Corridors
Media Corridors is excited about the Union Budget 2024-25’s focus on employment, skilling, and MSMEs. The Prime Minister’s ambitious ₹2 lakh crore package to support 4.1 crore youth and the new employer-focused scheme, offering EPFO subsidies for up to 50 lakh additional jobs, are game-changers for the industry.
We’re particularly thrilled by the push for higher female workforce participation through women’s hostels, creches, and targeted skilling programs. These initiatives not only promise to boost industry growth but also create vibrant opportunities for innovative branding strategies. Media Corridors looks forward to leveraging these advancements to drive impactful results for our clients.
Bharat Phatak, Director, Scripbox
he 2024 budget shows a positive continuation of macroeconomic policies. The government’s commitment to maintaining infrastructure spending at ₹11.11 lakh crore and fiscal deficit of 4.9% ensures manageable borrowing. Lower fiscal deficit will increase availability funds for both the corporate sector and retail consumers, supporting economic growth.
There has been an increase in Tax incidence for equity investors where short-term and long-term capital gains taxes are set to rise—from 15% to 20% and 10% to 12.5% respectively. This move came as a negative surprise. But there are encouraging changes like The tax rate for long-term capital gains on unlisted shares getting reduced from 20% to 12.5% and increase in exemption limit for long-term capital gains on equity shares and Mutual funds from ₹1 lakh to ₹1.25 lakh. The standard deduction for salaried individuals also rises from ₹50,000 to ₹75,000 in the new tax regime. Overall, the budget balances need for higher spendings with fiscal prudence and bolstering economic growth.
Amar Nagaram, Founder and CEO of Virgio
The Finance Minister’s budget theme, with its emphasis on Employment, Skilling, and MSMEs, showcases a forward-thinking approach that is well-suited to the evolving needs of the Manufacturing and D2C industries. This budget, aligned with the Viksit Bharat vision during the Amrit Kaal, introduces several key incentives aimed at boosting job creation and enhancing workforce skills. The special focus on MSMEs will provide critical support for innovation and expansion, facilitating growth across various sectors. Importantly, the abolishment of the Angel Tax will play a pivotal role in supporting startups, easing fundraising, and encouraging more investment in innovative businesses. Overall, this growth-oriented budget represents a significant step toward creating a more inclusive and dynamic economy, fostering opportunities for businesses and entrepreneurs alike.
Pinkesh Kotecha, MD & Chairman, Ishan Technologies
The Union Budget 2024-25 brings several promising developments for the IT and Telecom sector. With the country’s aim to become a digital-first nation, we welcome the government’s commitment to leveraging technology for improving productivity and bridging inequality over the past decade. We acknowledge the importance of digital infrastructure for inclusive growth that will help enhance opportunities beyond urban India.
The government’s commitment to enhancing data governance will help boosting data centers and undoubtedly support the rising data-intensive needs of our country. Moreover, the focus on increasing FDI will spur investments in technology innovations, furthering India’s growth as a tech hub. The slew of measures to boost employment for Youth, the establishment of working women hostels, and skilling loans with government guarantees, will drive more women and youth participation in the IT sector. These initiatives are crucial for building a skilled workforce ready to meet the demands of our evolving industry.
Having said that, we were hoping for an increased attention to two pressing issue – rise of AI and cybersecurity. These will be crucial aspects that will help India build a robust and secure digital infrastructure that can support India’s aspirations of becoming a USD 5 trillion economy. Overall, the Union Budget 2024-25 takes significant strides in the right direction, and we look forward to seeing these initiatives unfold. At Ishan Technologies, we remain committed to driving innovation and growth in line with the government’s vision for a digitally empowered and inclusive nation.
Uma Shankar Patro, Senior VP – Finance at InfoVision
InfoVision applauds the government’s commitment to advancing innovation and digital transformation with the allocation of 5% of the Universal Services Obligation Fund towards telecommunications technology R&D. The renaming of this fund to Digital Bharat Nidhi highlights the critical role of a digital-first strategy in driving economic growth.
We are particularly encouraged by the introduction of the Jan Vishwas Bill 2.0 and the incentives for states to adopt Business Reforms Action Plans and embrace digitalization. These initiatives are set to significantly enhance the ease of doing business and will have a profound positive impact on the IT sector, further strengthening India’s digital economy. InfoVision fully supports these progressive measures and remains dedicated to contributing to and benefiting from these transformative efforts.
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, 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.
Mr 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.
Aravind Sundaram
Guest Author