Interim Budget 2024 | Thoughts from business leaders #2

The interim budget presentation by Finance Minister Nirmala Sitharaman saw highlights on a few aspects such as sustainability, infrastructure, and most importantly technology. Here are some quotes from business leaders on the interim budget.

Nishit Parikh- Partner Direct Taxation, Sudit K. Parekh & Co. LLP

Average real income of people increased by 50%. This would boost consumption and facilitate further growth. Capex outlays 3.4% of the GDP. This is up 11.11% year on year basis. This should further push the reforms in infrastructure which has been the focus of this government. More roads, airports and trains would be some of the items on top priority of the Government. Tax receipts for FY 25 pegged to 26.02 lakh crores. This is in line with the Government’s vision on increasing the tax base and boosting tax revenue. This is also visible from the increase in tax filers.

Deep Bajaj, Co-founder & CEO, of Sirona private hygiene limited

Today’s budget announcement reflects a pivotal moment for our nation’s startups and entrepreneurs. The infusion of resources into research and development, coupled with tax incentives for small businesses, is a powerful catalyst for innovation and entrepreneurship. By simplifying the journey from ideation to execution, the government is paving the way for a new era of business innovation. This budget not only supports startups today but lays the foundation for a sustainable and innovation-driven economy for years to come. As entrepreneurs, we welcome these initiatives and look forward to leveraging the opportunities they create. Together, we can build a vibrant ecosystem that fosters creativity, resilience, and economic prosperity.

Diana Mathias, Partner, N.A. Shah Advisors

In the ever-evolving landscape of industry, strategic innovation and robust infrastructure serve as the keystones of prosperity. The extension of tax incentives by another year for infrastructure and start up sector and providing interest free loans to sunrise sectors is not just a fiscal decision; it’s an investment in the vitality of our industries. This move is poised to infuse renewed energy and propel the engine of growth.

Arun Poddar, CEO & Executive Director, Choice International Limited

We applaud the Interim Budget 2024-25 for its forward-looking approach towards the financial sector and the overall Indian economy. The government’s commitment to fiscal consolidation, coupled with an aggressive fiscal deficit target, sets a positive tone for economic resilience. The commitment to Digital Public Infrastructure aligns with our tech-centric vision for innovative financial services.

Choice International is particularly encouraged by the focus on fostering private investment, enhancing MSME growth, and orienting the regulatory environment. The government’s focus on International Financial Centres positions financial service providers to benefit from global capital. The decision to withdraw outstanding disputed tax demands is a significant boost for over one crore taxpayers. As we navigate these economic waters, Choice International remains dedicated to actively contributing to the India’s financial sector and support its journey towards sustained economic prosperity.

Abhay Deshpande, Founder and CEO, Recykal

As we reflect on the latest budget announcement, the monumental allocation of Rupees 11 lakh crores towards infrastructure and the resounding encouragement of domestic and global investments underscore India’s resolute commitment to economic progress. With a strategic focus on bolstering the MSME sector, lowering duty cuts, and fostering an environment conducive to manufacturing, India’s potential as a global economic powerhouse is resoundingly clear. Moreover, the emphasis on comprehensive development and the welfare-centric ‘Sabka Prayas’ initiative further exemplify the government’s dedication to holistic growth. This budget has set the stage for transformative change and prosperity in the Indian economy.

Sahil Chopra, Founder & CEO- iCubesWire

The government’s strategic focus on harnessing new-age technologies and data underscores a transformative approach towards fostering an innovative ecosystem in India. The commitment to providing incentives and support in sunrise sectors is a significant leap forward in empowering startups and entrepreneurs across the nation. With the establishment of a substantial financial corpus for long-term, low-interest financing, startups will find a robust backbone for investing in research and innovation. Furthermore, the launch of a new scheme to promote deep-tech technologies, especially for defense and self-reliance, opens up vast avenues for startups to contribute to critical national interests. This visionary move is poised to accelerate the growth of startups, stimulate technological advancements, and unlock new economic opportunities, marking a new chapter in India’s journey towards becoming a global innovation hub.

Sameer Aggarwal, CEO and Founder at Revfin

“The vote-on-account the interim budget presented by the Hon’ble Finance Minister, signals towards a transformative era for the nation. The commitment to fortify the Electric Vehicle (EV) ecosystem and support manufacturing and charging infrastructure aligns with global environmental goals, positioning India as a leader in widespread sustainable mobility adoption. Continued focus on the rural economy support, youth skill development, and gender-inclusive initiatives reflects a holistic approach toward inclusive and sustainable growth. Skill India Mission’s success in training 1.4 crore youth strengthens the workforce for evolving job demands.”

Sandiip Bhammer, Founder and Co-Managing Partner, Green Frontier Capital

Budget 2024 primarily functions as a vote on account, with a strong emphasis on fiscal consolidation and a retrospective focus on the past decade’s progress, rather than unveiling major new budgetary proposals. The fiscal deficit target set at 5.8 percent was surprisingly lower than anticipated, indicating a cautious fiscal approach. 

The budget also continued to highlight the government’s commitment to addressing climate change. This was particularly evident in the decision to bolster charging infrastructure, which is expected to generate employment opportunities and accelerate the transition to electric vehicles (EVs). Additionally, the move to provide electricity through rooftop solarization stands out as a dual-benefit initiative. It not only lessens environmental impact but also alleviates financial burdens on households, embodying a model for sustainable development.

Furthermore, the budget’s focus on strengthening the EV ecosystem, through support for charging infrastructure and promotion of electric buses, marks another significant step towards transitioning to a more sustainable EV-based transportation system. These initiatives reflect the government’s ongoing efforts to align with global sustainability goals while maintaining economic stability and continuity.

Sudeep Kulkarni, Founder, Game Theory

In my view, Budget 2024 is all about supporting our young innovators. Setting up a Rs. 1 lakh crore fund with a 50-year interest-free loan is a positive step. It means long-term support for tech-savvy ideas. With this help for startups, our future looks brighter than ever. Embracing the ‘First develop India’ ethos, the government aims to forge bilateral treaties with foreign partners, prioritizing India’s growth. With a development policy centered on social and geographical inclusion, we’re charting a path towards a more equitable and prosperous future for all.

Prashant Vasan, CEO at Madras Mandi 

As Madras Mandi, we extend our appreciation for the government’s unwavering support to our ‘Annadata’ through key budgetary initiatives. The direct financial assistance under the PM-KISAN SAMMAN Yojana and the extensive coverage of crop insurance through PM Fasal Bima Yojana underscore a commitment to the well-being of our 11.8 crore farmers, including marginal and small farmers. The integration of 1361 mandis into the Electronic National Agriculture Market, with a trading volume of ₹3 lakh crore, aligns with our mission to modernize agricultural practices and empower 1.8 crore farmers.

The budget’s emphasis on farmer-centric policies, income support, risk coverage, and technology promotion resonates with Madras Mandi’s commitment to fostering a sustainable agricultural ecosystem. We applaud initiatives like Pradhan Mantri Kisan Sampada Yojana and Pradhan Mantri Formalisation of Micro Food Processing Enterprises Yojana, contributing to value addition, employment generation, and the reduction of post-harvest losses. Madras Mandi looks forward to actively participating in the government’s vision, leveraging private and public investment in post-harvest activities for aggregation, modern storage, efficient supply chains, primary and secondary processing, marketing, and branding. Together, we aim for inclusive, balanced, and higher growth in the agricultural sector.

Darshil Shah, Founder and Director, TreadBinary

The progressive approach in the Interim Budget truly underscored the significance of ‘Make in India’. The corpus of Rs 1L Crore to provide long-term financing with low/nil interest rates, will encourage and make a significant impact on the Research and Innovation in Private Sectors, which will surely lead to Development of the nation. The FDI- First Develop India spirit will further strengthen the process, the schemes for green growth will be a commendable way forward keeping the environment as top priority along with the nation. Overall, it was a well-balanced budget catered not only to research, innovation but also green growth, solidifying India’s position as a global tech hub.

Akshat Saxena, Chief Executive Officer, Froker

The Interim Budget 2024-25 offers a beacon of support to the startup ecosystem and resonates with our vision at Froker. The PM Mudra Yojana’s impressive sanction of 43 crore loans amounting to ₹22.5 lakh crore is a game-changer, seeding countless entrepreneurial dreams. Tax benefits for startups, now extended to March 2025, and the incentivization of investments from wealth and pension funds, will significantly lower the financial hurdles for emerging businesses. Furthermore, the budget’s nod to ‘Annadata’ through MSP adjustments underlines the respect for our food providers, aligning with our mission for economic inclusivity. This financial blueprint is set to catalyze a new wave of innovation and resilience in the startup sector.

Atul Gupta- Co-founder & Director at e-Sprinto

Certainly, particulars in regard to the E-Mobility mission and encouragement of EV infrastructure were missing in the speech, however, the budget did point towards creating ambitious policies towards adoption of EVs in the public transportation sector. Furthermore, since the budget has circumscribed the requirement to strengthen manufacturing of EVs and infrastructure, we can be sure that it stands high on the government’s agenda, and we do expect supporting policies to follow soon.

Sampad Swain, Co-Founder and CEO, Instamojo

We are pleased with the government’s post-budget initiatives, particularly the extension of tax benefits for startups and the continued investments by sovereign wealth funds and pension funds. The extension of tax exemptions for IFSC units until 31st March 2025 is a positive step that will provide stability and support to businesses operating in these units.

The reduction in corporate tax rates to 22% for existing domestic companies and 15% for certain new manufacturing companies is a welcome move that will enhance India’s competitiveness in the global market. Additionally, the provision of no tax liability for individuals with income up to ₹7 lakh under the new tax regime is a significant relief for many taxpayers.

We also appreciate the government’s efforts to promote entrepreneurship through schemes like the Mudra Yojana, with ₹30 crore disbursed to women entrepreneurs and ₹43 crore sanctioned under PM Mudra Yojana to foster youth entrepreneurship. These initiatives are aligned with our mission at Instamojo to support and empower small businesses and entrepreneurs across India.

Instamojo provides a platform for startups and entrepreneurs to leverage certain tax benefits, including tax exemptions for IFSC units and investments by sovereign wealth funds/pension funds. With Instamojo, entrepreneurs can also access funding opportunities to women entrepreneurs under the Mudra Yojana, empowering them to fuel their business growth post-budget. We look forward to the positive impact of these measures on the entrepreneurial ecosystem and are committed to leveraging them to further our goal of democratizing digital commerce in the country.

Karan Aggarwal, CFA, Co-Founder & CIO, Elever

Budget is a big positive for power, renewable energy and railways sector with massive allocation to rooftop panel scheme, viability gap funding, railway corridors and railway modernisation. Old economy sectors such as infrastructure, cement and metals expected to extend rally well into FY 2024-25 with double-digit growth in infra outlay and plans of a housing scheme for middle-class and doubling of airports in India by 2030. Budget speech reflect confidence of ruling party to come back in power after elections in 2024 which is a net positive for investor sentiments.

Sandeep Shah, Co-Founder & MD at Optimized Electrotech

A strategic roadmap that not only balances fiscal prudence but also seeds the ground for sustainable growth, innovation, and resilience. Investing in a future that champions progress, inclusivity, and economic vitality. Beyond numbers, it signifies a transformative shift in the defence industry, where innovation now takes center stage alongside capital. This strategic move reshapes the landscape, redefining the playbook for the next decade. The winners will be those who innovate, adapt, and champion progress. This budget is not merely a financial plan; it’s a small step towards a comprehensive modification of the defence sector, heralding an era where the game-changers are the innovators. Crucially, the increased capital expenditure is a beacon for Aatmanirbharta—self-reliance in its truest sense. It empowers the nation to forge ahead with indigenous capabilities, fostering innovation, and creating a robust ecosystem that not only meets immediate defence needs but also positions India as a global player in the defence arena.

Edul Patel CEO of Mudrex

The Finance Minister, Nirmala Sitharaman’s decision to keep tax rates unchanged sends a message of stability. However, the long-term impact will depend on the government’s ability to manage fiscal challenges and promote sustainable economic development through other policy measures. As the interim budget sets the tone for the upcoming fiscal year, it will be interesting to observe how these decisions play out in the broader economic landscape.

Kavita Sharma, Co-founder and CEO, Ziyyara Edutech

As the Co-Founder and CEO of Ziyyara Edutech, I firmly believe in the transformative power of education, aligning with the progressive strides outlined in the National Education Policy 2020. PM Schools for Rising India (PM SHRI) exemplify our commitment to quality teaching, fostering holistic individuals. With thirty crore Mudra Yojana loans empowering women entrepreneurs and a commendable twenty-eight per cent rise in female higher education enrolment, we witness the impact of these reforms. The Skill India Mission, training 1.4 crore youth and establishing numerous institutions, resonates with our mission of accessible and personalized online tutoring. At Ziyyara Edutech, we stand proud in contributing to the educational landscape that empowers and equips the youth for a brighter future.

Dilip Gangaramani, Founder & Managing Director, Target Publications

Budget 2024 is a resounding victory for education, skills, and an inclusive future. It is impressive how committed our government is to investing in medical colleges, increasing female involvement in STEM fields (43%), and skilling 1.4 crore youth. At Target Publications, we are passionate to align with this vision. Our learning material provides young people the necessary tools to attain professional success. Through our endeavours, we strive to empower medical students, and foster young STEM minds. The achievement of the skill India mission (1.4 crore skilled, 54 lakh reskilled) is praiseworthy, and we are prepared to make more contributions. In addition, the PM Shri program is revolutionary as it updates 14,500 schools to align with the National Education Policy 2020. This is in complete harmony with our goal of offering everyone access to excellent, NEP-aligned education. The budget for 2024 lays the foundation for an informed, capable, and empowered India. We stand ready to play our part in this exciting journey!

Beas Dev Ralhan, CEO, Next Education

In the latest budget, the government places a significant emphasis on elevating higher education standards through upskilling and reskilling initiatives. This underscores a continued commitment to the transformative reforms outlined in The National Education Policy 2020. The substantial allocation, with the Education Ministry receiving its highest-ever budget of Rs 1,12,898.97 crore, reflects a prioritization of educational excellence.

While PM Schools for Rising India (PM SHRI) play a pivotal role in delivering quality education and fostering holistic development, it is crucial to address the persistent challenge of unemployable youth. Urgent attention is needed to realign our education system with market demands, ensuring that our youth not only receive theoretical knowledge but also acquire practical skills. This strategic focus is essential to empower the younger generation to contribute meaningfully to the progress of our nation.

Monica Gulati, Executive Dean, LPU, Faculty for Applied Medical Sciences

Investing in the health and well-being of our nation’s future, the recent announcement to encourage Cervical Cancer Vaccination for girls (9-14 years) is a pivotal step towards safeguarding the health of our young generation. The expedited implementation of Saksham Anganwadi and Poshan 2.0 not only ensures improved nutrition delivery but also prioritizes early childhood care and development. The introduction of the U-WIN platform for Mission Indradhanush signifies a strategic move to enhance immunization efforts, ensuring a healthier and more resilient population. Furthermore, the extension of health cover under the Ayushman Bharat scheme to all ASHA, Anganwadi workers, and helpers showcases a commendable commitment to the well-being of those tirelessly serving our communities. This holistic approach to healthcare reflects a visionary initiative for a healthier and prosperous nation.

Keep watching this space for more updates!