Interim Budget 2024 Live Updates: Finance Minister Nirmala Sitharaman presented her sixth Budget on February 1. This was an ‘interim Budget’ since the term of the current government will end soon and the country will go to polls.
Budget 2024 industry experts reactions :
Dr Anish Shah, President, FICCI :
The Interim Budget is a clear and outcome-based continuum towards Viksit Bharat. It brings together growth, climate, and social empowerment, while maintaining a careful balance between current investment rate and fiscal discipline.Enabling States to adopt reforms for Viksit Bharat will seize the momentum created from the Centre towards Amrit Kaal. Focus on Blue Economy, expanding and strengthening the EV ecosystem, domestic tourism, and multi-modal logistics will propel India towards the vision of a developed nation by 2047.The Interim Budget recognizes Innovation as a key driver for growth through introduction of a significant corpus of Rs 1 lakh crore for offering fifty-year interest free loan to scale up R&D in sunrise domains. The fiscal performance bodes well for country’s macroeconomic stability and investor confidence.
Chandra Shekhar Ghosh, MD & CEO, Bandhan Bank :
The interim budget focuses extensively on inclusive development and is a step forward in the $5 trillion economy aspirations of the nation. The focus on housing sector will benefit a range or peripheral sectors like cements, paints and, steel, among others, and create employment opportunities. The focus on women empowerment will further boost the economy. The emphasis on infrastructure and rural development will lay a strong foundation for India’s growth story.
Sushil Mohta, Chairman-Merlin group and President-Credai WestBengal:
The interim budget presented by the Hon’ble Finance Minister is growth-oriented, focused on poor, youth, women & farmers, and their empowerment catapulting socio-economic growth to a new height.
The One lakh crore fund corpus for research in Sunrise announced today will boost innovations powered by the private sector in India which I feel will catapult India in the international arena in the R&D field.
The Rooftop solar power installations provided by the Govt for households is innovative.Overall I feel the budget also announces a good allocation of capex expenditure. We welcome the announcement of the introduction of the new scheme for the middle class to buy or build their own houses. Under PM Awaas Yojana-Grameen the announcement to build 2 crore additional houses in the next 5 years to cater to growing demand Under Pradhan Mantri Awas Yojana, the announcement to build the additional 2 crore rural houses in the next 5 years is encouraging. These will support the housing market to grow. This will not only create a lot of job opportunities for those in the housing and construction industry but will also provide a lot of scope on the ancillary industries like cement, paint, etc. Sustained focus on infra development under PM Gati Shakti Mission, increased and better rail & road connectivity to tier 2 & 3 cities will further housing sector growth & development in these cities. So overall is a good budget, However, no further tax benefit has been announced for the taxpayers. So this will deter the common man from investing in homes as they will not have additional money in his pocket. So for Middle-class buyers, we needed some sop on taxes and a reduction in home loan rates. Also, the real estate segment is expected to raise the threshold limit from the existing Rs 45 lakh for affordable housing. The announcement on the focus on the eastern region enhanced our hope and we expect more announcements on this soon.
CS (Dr.) Adv. Mamta Binani, President of MSME Development Forum WB :
The recently declared Union Budget for 2024-25 carries significant implications for our Micro, Small, and Medium Enterprises (MSMEs). Building on the foundation laid in the previous fiscal year, this budget showcases a commitment to fostering growth and innovation within our sector. The emphasis on de-risking credit inflows to critical MSME sectors, such as automotive and electronics, through measures like credit guarantees and insurance schemes is commendable. These steps address the crucial need for risk mitigation in capital flows. Access to credit remains pivotal for our progress, and the introduced measures like tailored packages, interest subvention schemes, and reduced collateral requirements align with our collective aspiration of propelling India toward a $5 trillion economy. Simplified regulatory procedures, reduced compliance burdens, and potential changes in the capital gains tax structure signal a proactive approach to empowering the MSME community. The budget’s support for the Open Network for Digital Commerce initiative, extension of the concessional tax regime, and increased funding for the ‘Raising and Accelerating MSME Performance’ scheme are notable contributors to our sector’s growth. The allocation of funds for the MSME ministry, exceeding the previous fiscal year, sets a positive trajectory for our enterprises. In conclusion, these budgetary measures have the potential to reshape the destiny of our MSMEs, fostering an environment conducive to formalization, innovation, and unprecedented growth.
Kuldip Maity, MD & CEO of the Kolkata-based NBFC-MFI VFS Capital :
We commend the Hon’ble Finance Minister for presenting a budget focused on ‘Vikasit Bharat,’ with a prime emphasis on the welfare of the poor, women, youth, and farmers. In today’s interim budget, the minister highlighted the substantial growth in women entrepreneurship over the past decade, allocating 30 crore MUDRA Yojana loans to empower women entrepreneurs. This is expected to catalyse further advancements in women’s entrepreneurship, contributing to the overall development of the Indian economy.We also applaud the government’s decision to raise the target for the ‘Lakhpati Didi’ scheme from 2 crore to 3 crore women, showcasing a dedication to broadening financial independence for women. This expanded scope will bring more women within the purview of the scheme, positively impacting their economic autonomy.Furthermore, the government’s commitment to making the eastern region a potent driver of India’s growth is noteworthy. We welcome this move as it holds the promise of unlocking new opportunities for growth and development in the Eastern region, benefiting its residents.
Lalit Beriwala, Director, Shyam Steel Industries Ltd :
Rs. 11.1 Lakh Crore (3.3% of GDP) allocated for capital expenditure in the interim budget, aligning with last year’s allocation.”Look East Policy” focusing on “East India Businesses” expected to significantly accelerate economic growth in East India.Emphasis on rooftop solar energy development to strengthen efforts for achieving Net Zero by 2070.Significant allocation for Railways, Waterways, Aviation, and urban development to drive infrastructural growth, create employment, and boost steel, cement, construction, and real estate sectors.Anticipation of enhanced foreign trade and economic growth through the development of the UAE-India Economic Corridor.Creation of a Rs. 1 lakh loan corpus for R&D to support industries in acquiring new technologies for modernization and expansion.Emphasis on the medical sector, including building more medical colleges and hospitals, to benefit the community significantly.Expansion of the Metro Railway network to enhance mobility, strengthen infrastructure, and benefit diverse sections of the population.Prime Minister’s vision for “SABKA SAATH, SABKA VIKAS, AND SABKA VISHWAS” eloquently expressed in the budget. India’s resolve to become a “VIKSIT BHARAT” by 2047, transcending the four-caste system, reflects in the Interim Budget.We welcome this growth-oriented, inclusive, and forward-looking budget.
One notable aspect of the current budget is the government’s dedication towards addressing the housing requirements of the middle class. The primary goal of this initiative is to enable these individuals to either buy or construct their own homes. This declaration represents a significant stride in promoting affordable housing and realizing the dream of homeownership for the middle class. By specifically targeting individuals in rented dwellings or informal settlements, the government is recognizing the challenges faced by a substantial portion of the population and is implementing concrete measures to provide them with a viable path to owning a home.
The move to bolster PMAY – Grameen program and to accelerate the housing for all mission is obviously a cause for celebration . I predict the higher capital outlay towards long term infrastructure will also have a positive effect on Real estate industry.Domestic Tourism encouragement and financing can also be seen as positive. As with all previous budgets of FM, there is no hype, rather a quite confidence to prioritise India’s finances towards long term solutions. I am confident that the Indian economy will witness optimism going forward.
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.
Priyanka Surana Bardia, Director, Aakash Aath :
The 2024 Union Budget is more focussed on the Holistic development of the Nation. The monetary investments pertaining to the implementation of the Welfare schemes decided for progress of the women, youth and the underprivileged section of the society will hugely benefit in forming an affluent and a steady Country. The Budget aims to equip the citizens with a modern education system where their aspirations will be fulfilled by the maximum utilization of their potentials. However, there are no as such new benefits on Taxation Policies but the Government’s focus on the certain new Tax Measures for the Start Ups will assist millions of entrepreneurs to explore and establish to new heights.
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