Business leaders hail Budget, laud Government’s measures for a Vikasit Bharat

Finance Minister Nirmala Sitharaman presented the last Budget before the country goes to the polls. Being the Interim Budget, there were no major announcements, however, there was still much cheer, with Agriculture, Infrastructure (including housing) and Green ecosystem as the key thrust areas. The Finance Minister also provided growth impetus for the EV sector, as well as for the start-up, Digital, AI, new-age technology sectors. During her Budget speech, Sitharaman stated, “Digital India is key to formalising the Indian economy”, thus emphasising the Government’s commitment to put Digital on the fast track of growth.

A cross-section of industry leaders shared their insights on the implications of the Interim Budget 2024 and what groundwork it lays for the main budget, which is expected to be presented in July this year after the election of the new government.

Angshu Mallick, MD & CEO, Adani Wilmar:

“We commend the vision and intent expressed by the government through the interim budget proposals to create a pathway for inclusive and sustainable growth for India. This will lead to India emerging as a developed economy by 2047. As an FMCG player we support the vision that will empower different segments of society, making them partners in the growth journey. The government’s focus on development is evident encompassing various social groups and people at all levels.

The widespread adoption of Nano-DAP across all farming regions is a commendable innovation, empowering farmers and aligning our practices with environmental harmony, reflecting a conscientious approach within the FMCG sector. Moreover, the launch of the ‘Atmanirbhar Oilseeds Abhiyaan’ marks a pivotal step towards achieving self-sufficiency in oilseed production, showcasing our commitment to advancing self-reliance and sustainable practices within the FMCG landscape. We have been investing in oilseed crushing facility over the years. At present, Adani Wilmar possesses a crushing capacity of 1.20 million metric tons in Soya whereas in mustard seeds crushing, with existing and forthcoming facilities it’ll amount to 0.70 million metric tons.

Overall, the Union Budget 2024 lays the foundation of inclusive growth that will lead to ‘Sabka Vishwas’. The next five years holds the promise of unprecedented development towards realizing the dream of developed India @ 2047. The trinity of demography, democracy and diversity supported by ‘Sabka Prayas’ has the potential to fulfill aspirations of every Indian.”

Arjun Ranga, Managing Director, Cycle Pure Agarbathi:

“We are satisfied with the overall positive outlook of the budget. We are elated to witness the Government’s dedication to women’s empowerment. Our workforce, predominantly comprising women, stands as a testament to the impactful contributions they make to our success. This budget not only recognizes but reinforces the crucial role women play in the workforce.

We are contended with the Government’s focus on MSMEs as they play a crucial role in the global market. The prioritisation of training programs for MSMEs is appreciated, which will enable them to compete on a global scale.

We are optimistic about the future. The Government’s commitment to enhancing the competitiveness of MSMEs through strategic training initiative sets the stage for a promising future. We foresee a brimming future for both women empowerment and the MSME sector.

We appreciate the Government’s commitment to solar power generation, aligning with our organisation’s sustainability focus. Additionally, the Government’s initiative to expand existing airports and develop new ones this year will benefit businesses, facilitating smoother operations and exports.”

Naveen Tewari, Founder & CEO, InMobi Group:

“We commend the government for its forward-looking budget, especially the emphasis on research and innovation, infrastructure development, and the support for sustainable technology. The allocation of a one lakh crore corpus for long-term financing in innovation is a significant step, aligning with our commitment to developing cutting-edge technologies in India through InMobi and Glance, the world’s leading smart lock screen platform. With the introduction of 50-year interest-free loans, it is indeed the golden era for tech-savvy youth. This has laid down the foundation for more targeted measures for consumer-tech, semicon design and production, quantum computing and emerging technologies like AI, especially its development and research for future budgets.

Almost midway through India’s Techade, we are excited to see the continued focus on infrastructure development and increased focus on research and innovation through forward looking schemes like PLI, NEP and skilling initiatives reaching critical mass. This is certainly India’s statement of intent, announcing itself as the new and upcoming leader of manufacturing and innovation in the world. The next step has to be creating software in India, for the world and with Glance, we have already put it in motion. This budget has definitely set us on the path for continual growth and development - the pursuit of ‘Viksit Bharat’ - as we look to become the third largest economy in the world in the next 5 years.”

Amit Khatri, Co-Founder, Noise:

“The Interim Union Budget 2024 presented by FM Nirmala Sitharaman reflects the Government's undeterred focus on inclusive growth. The focus on boosting employability through training and skill development, along with the significant support to foster the entrepreneurial spirit of Indian youth through 43 crore loans amounting to Rs. 22.5 lakh Crore, is indeed a commendable step towards pushing India’s growth at the global stage. These reforms encourage us to work towards India’s vision to become a developed nation by 2047 through enhanced capability and empowerment.

Being a homegrown brand, we believe that the initiatives like PM Mudra Yojana & Start Up India will play a crucial role in catalysing the growth of the startup ecosystem in India and eventually further strengthen the 'Make in India' efforts. We appreciate the economic policies adopted to foster growth, improve productivity, increase opportunity, and fulfill aspirations through strategic technological advancements. Driven by the vision of Vikasit and Aatmanirbhar Bharat, we look forward to actively participating in the nation's journey towards global prominence and innovation leadership.”

Rajan Bajaj, Founder CEO, slice

"The government's allocation of a ₹1 lakh crore corpus for technological research in this year's budget is a game-changer. It positions India's R&D to capitalize on our young and dynamic demographic. The provision of interest-free support will undoubtedly catalyze scaling up research and innovation, fostering significant strides in filling economic gaps. Made in India tech is the future, and we’re here for it!”

Dhawal Dalal, President & Chief Investment Officer - Fixed Income, Edelweiss MF:

“A very pragmatic and growth-oriented interim budget, with continued focus on conservative revenue estimation and fiscal consolidation. The FM believes in under-promise and over-delivering on fiscal front. Lower borrowing in FY25 is expected to decline bond yields. This will be positive for the economy and will support in reaching our goal of $5 trillion economy by end of 2027, in our view.”

Ajit Banerjee, Chief Investment Officer, Shriram Life Insurance:

“The interim budget may categorised as a financially prudent budget targeted to achieve the fiscal consolidation in the long term. It clearly stays away from presenting a populist budget in lieu of the upcoming general elections and this exhibits the confidence levels of the present central government.

The Government focus on developing the power sector through a host of renewable energy initiatives, upgrading railway infrastructure to support the Gati Shakti program, and boosting the affordable housing sector would certainly act as a catalyst in achieving the dream of Prime Minister for leading the country into Vikasit Bharat by 2047. The Government also lays emphasis on developing woman empowerment further and making them more financially empowered.

The Government gross borrowing number at Rs 14.13 lakh crore though bond issuance are kept lower after some heavy lifting it has done in fast few years also highlights that it expects the Private Sector now to take the lead in initiating the capex programme as a stable macro environment in the country.

To conclude, it’s a prudent budget aimed at bringing fiscal stability in the country.”

Sahil Kapoor, Head - Products and Market Strategist, DSP Mutual Fund:

“What is noteworthy is that this is a budget entirely focused on fiscal consolidation and not populism, which was expected to be in focus because of the upcoming general elections. The most pleasing words from the budget: “No changes in taxation”. It’s a budget that focuses on the continuation of policy and doesn't introduce any surprises. It’s a budget prepared keeping in mind that global fiscal expenditure may decrease this year, and the global monetary policy may tighten. The government has assumed an increase in total expenditure of 6.1% YoY in FY25. This is the lowest growth in 8 years, and less than half of the 8-year average of 12.4%. The budget has a negative fiscal impulse, with the gross fiscal deficit contracting by Rs 49,000 crore and the primary deficit reducing by Rs 1.8 lakh crore. The bond market has rejoiced with a drop in yields, and rightfully so. Gross and net borrowing for FY25 are lower than FY24. The fiscal deficit is expected at 5.1% for FY25, a reduction of 0.7%. With India getting included in global bond indices and the supply of Govt. Securities estimated to be lower, it will lift a major hurdle for the RBI to exercise a more neutral to easy monetary policy - advantage duration funds.”

Bhavesh Talreja, Founder and CEO, Globale Media:

“The interim budget by Mrs. Nirmala Sitharaman sparks optimism, aligning with India’s growth vision and emphasising inclusive development. The significant reduction in the corporate tax rate to 22% for domestic companies strategically stimulates business growth. The budget's focus on modern infrastructure development, covering digital, social, and physical aspects, opens new opportunities for the Media and Entertainment sector, especially in digitalisation. This budget not only propels a tech-driven economy but also heralds a golden era for companies operating at the intersection of AI and market technology. We eagerly look forward to contributing to this transformative journey and commend the government's vision for a tech-empowered, inclusive growth trajectory. Moreover, maintaining existing tax rates in the retail sector stabilises the business atmosphere, fostering expansion.

The emphasis on supporting MSMEs, offering financial aid and initiatives like Fund of Funds and Startup Credit Guarantee Schemes, supercharges entrepreneurship, setting the stage for a collaborative and thriving ecosystem. With revised estimates at 5.8% of GDP, this budget sets the stage for a collaborative and thriving ecosystem, fueling entrepreneurial spirit and propelling industries towards unprecedented growth and success.”

Abhay Bhutada, Managing Director, Poonawalla Fincorp:

“The 2024 Interim Budget is a decisive step towards India's economic sustainability, in line with the 'Viksit Bharat by 2047' vision. The fiscal responsibility reflected in the 5.8% GDP fiscal deficit is commendable. The 'First Develop India' focus promotes FDI, aligning with our global collaboration goals. I anticipate progressive policies supporting fintech, digital lending, and digital skills.”

Nishant Pitti, CEO & Co-Founder, EaseMyTrip:

“The budget prominently highlights a substantial emphasis on the tourism, aviation, and railways sectors. It's truly exciting to observe the government's keen attention to nurturing and expanding both domestic and spiritual tourism and highlighting Bharat’s strength through global events like G20.

The dedicated efforts towards developing aviation and rail infrastructure, especially through the commendable initiatives of UDAN and the PM Gati Shakti scheme, encouraging States to promote iconic tourists’ centres by providing interest-free loans are noteworthy with special focus on developing island tourism and fortifying port connectivity, including Lakshadweep.

These measures are anticipated to spur economic growth, create employment and create new opportunities, marking a progressive move towards positioning India as a global destination.”

Manish Rathi, Co-founder and CEO, IntrCity SmartBus:

“The government's prioritization of improving public transportation and connectivity in the 2024 interim budget highlights the critical importance of efficient and reliable transportation in the country. Through promoting the thorough development and promotion of tourist destinations by individual states, the initiative aims to draw in more visitors from around the globe. In particular, the provision of long-term interest-free loans to states, matched by their own investments, is a noteworthy aspect. Not only does it facilitate crucial improvements to infrastructure and amenities, but it also ensures long-term sustainability and the optimization of these developments to fully showcase the unique characteristics of each destination.

With the increasing enthusiasm among Indians for traveling within their own country, specially to spiritual and culturally significant destinations. The announced endeavors cater to the expanding middle class income group, highlighting a progressive mindset in tapping into the untapped potential of the domestic market while simultaneously making Indian locales more attractive for everyone. The focus on domestic travel is not just a mere tactic; it serves to instill a sense of pride and knowledge in Indians about their own heritage while also jumpstarting socio-economic progress, especially in smaller cities. Through the promotion of inclusive development, these endeavors strive to empower local communities.”

Anuraag Saxena, CEO, E-Gaming Federation:

“Ascending nations need ascending industries to propel growth. Jawan and Kisan are being augmented with Vigyaan and Anusandhan. While traditional cornerstone sectors like infrastructure and manufacturing offer stability, emerging sectors like online gaming, AI, and ML will offer the growth that Bharat deserves in our Amrit Kaal. The online gaming industry is excited to partner with the government towards a flourishing Bharat that will harness the power of technology and demographic-dividend to achieve Vishwaguru ambition.”

Harsha Solanki, VP, GM - Asia, Infobip:

“It is inspiring to see the government's steadfast commitment to fostering women empowerment, encouraging private sector investments, and promoting entrepreneurship. Furthermore, the focused approach to infrastructure and continued emphasis on housing for all reflects a comprehensive strategy for inclusive and societal development.

Over the last decade, initiatives aimed at empowering women through entrepreneurship, enhancing ease of living, and upholding dignity have gained significant traction. The strides made are evident with over 30 crore MUDRA Yojana loans disbursed to women entrepreneurs, female enrollment in higher education witnessing a remarkable 28% surge, and women constituting 43% of enrollment in STEM courses – among the highest globally – the landscape of opportunity for women is evolving positively. Importantly, these efforts are translating into tangible outcomes, with an increasing number of women joining the workforce. As we reflect on these achievements, let's continue to support and amplify initiatives that further empower women, ensuring a more inclusive and equitable society for all.

The Budget’s forward-looking approach to fostering innovation creates a conducive environment for companies like us, paving the way for sustained success and meaningful contributions to India’s economic landscape. We are very positive about this trajectory and committed to supporting the long-term growth of businesses in India by integrating innovative tech capabilities into their operations. The allocation of a corpus of Rs 1 lakh crore, coupled with a 50-year interest-free loan for financing and refinancing, aims to catalyze private sector investment in sunrise domains for youth and technology. This visionary initiative propels technological advancement and creates a fertile ground for the emergence of diverse entrepreneurial ventures. By nurturing innovation and entrepreneurship, especially in sectors poised for exponential growth, the government is laying the foundation for a dynamic and inclusive economy that empowers individuals of all backgrounds to thrive and contribute meaningfully to India's progress.”

Dr Ravinder Goyal, Co-Founder, Erekrut HR Automation Solutions:

“The interim Budget 2024 reflects the government’s vision to foster innovation and entrepreneurship in the country. It is quite encouraging to see the government support the growth of new age technologies and data-driven businesses, which are the key drivers of the digital economy. The creation of a corpus of Rs 1 lakh crore with 50-year interest free loan will enable long-term financing for research and innovation in sunrise domains, in turn helping the country attract and retain the best talent in the industry, and offer cutting-edge recruitment solutions to our clients. We appreciate the government’s continued efforts to empower the youth with various schemes such as PM Mudra Yojana, Fund of Funds, Start Up India, and Start Up Credit Guarantee. We believe that these measures will create a conducive environment for the start-up ecosystem to flourish and contribute to the nation’s ‘atmanirbharta’.”

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.”

Siddharth Dabhade, Global Commercial Board Member and Managing Director, MiQ:

“We heartily welcome the recently announced interim budget, which is a key step towards realising India's growth potential and directing the country towards a more sustainable future. In what can be deemed a golden era for tech-savvy youth, the 2024 interim budget emphasises the government's commitment to digital infrastructure and new technologies. We expect more investment in upskilling, reskilling, and tech innovation, making our workforce future-ready.

The government's emphasis on developing tourist centers to promote business, spiritual and adventure tourism, provides a huge opportunity for digital marketing and branding to unlock India's tourism potential on a global scale.”

Vaibhav Gupta, Co-founder and CPO, KlugKlug:

“In this interim budget, the acknowledgment of the transformative impact wielded by new-age technologies and data on individuals and businesses resonates deeply with Klug Tech's core values. The emphasis on fostering economic opportunities and ensuring affordable, high-quality services reflects a commitment to inclusivity, reaching even those at the 'bottom of the pyramid. As innovators and entrepreneurs, we stand poised to contribute to India's rising global potential through our cutting-edge solutions. This budget sets the stage for a future where innovation and entrepreneurship drive positive change, elevating India's position on the global stage.”

Gautam Madhavan, CEO and Founder, Mad Influence:

“Mad Influence welcomes the government's commitment to maintaining stability in taxation, ensuring continuity for startups and IFSC units by extending tax exemptions till March 31, 2025. The Finance Minister's decision to withdraw outstanding direct tax demands up to Rs. 25,000 and provide relief to 1 crore taxpayers is a positive step towards improving taxpayer services. As the economy strides towards sustained growth, Mad Influence acknowledges the government's prudent approach in maintaining existing tax rates and embracing the positive impact of GST on trade and industry. However, Mad Influence looks forward to more targeted initiatives for startups in the upcoming full Budget in July.

The overall budgetary estimates, with a focus on interest-free loans, reflect a balanced approach towards economic growth. Mad Influence anticipates further details in the detailed roadmap for 'Viksit Bharat' promised in the full Budget, paving the way for a more prosperous and inclusive India.”

Vikram Bhalla, Founder and Director, Vivify Asia:

“As the Interim Budget 2024-25 is presented, the budgetary figures outlined reflect a prudent approach to fiscal management. The Finance Minister's estimate of total receipts, excluding borrowings, at Rs. 30.80 lakh crore and total expenditure at Rs. 47 lakh crore for the upcoming fiscal year demonstrates a commitment to responsible financial planning. The continuation of interest-free loans at an outlay of Rs. 1.3 lakh crore is a strategic move to support key sectors. The targeted Fiscal Deficit of 5.1% of GDP for 2024-25 aligns with the government's commitment to gradually reduce the deficit to 4.5% of GDP by 2025-26. This shows a balanced effort to stimulate economic growth while maintaining fiscal discipline.

The mention of revised estimates for 2023-24, with revenue receipts expected to surpass the Budget Estimate, reflects the positive momentum in economic activities and formalization. The government's ability to manage expenditures effectively is evident in this upward revision. While the overall vision for 'Viksit Bharat' is ambitious, the budget strikes a balance between addressing immediate concerns, investing in long-term growth drivers, and maintaining fiscal prudence.”

Pawan Prabhat, Co-Founder, Shorthills.AI:

“The Interim Budget signals a strategic adoption of artificial intelligence (AI) and technology for national development. The focus on deep-tech for defence aligns with the goal of self-reliance, bolstering national security and indigenous capabilities. This commitment positions India as a global hub for technological advancements, promising a future marked by innovation and economic growth.

Also, Allocating one lakh crore rupees and offering a fifty-year interest-free loan to tech-savvy youth, the government aims to catalyze a transformative tech revolution. By incentivizing private sector investment in research and innovation through favourable financing, the budget supports the flourishing of startups and established companies.”