Union Budget 2024 Highlights & Announcements: FM Sitharaman announces 6% duty on gold, silver; Govt to review Income Tax Act

Lalit Beriwala, a prominent figure in the steel and metals industry, commends the Union Budget 2024-25 presented by Finance Minister Nirmala Sitharaman. True to the tradition of growth-driven and inclusive budgeting, this Budget stands out for its focus on four key areas: Annadata (Farmers), Garib (Poor), Yuva (Youth), and Mahilayen (Women). By advancing employment generation, skill enhancement, MSME growth, and middle-class economic strength, it sets a clear path toward inclusive economic progress.

The substantial allocation of Rs 11,11,111 crore for infrastructure, along with Rs 1.5 lakh crore in long-term interest-free loans to states, will invigorate key sectors such as steel, cement, and real estate, fostering job creation and sustained growth. The launch of Phase IV of PMGSY, investment in flood management and irrigation projects, and support for tourism development highlight the Budget’s commitment to both rural and urban advancement.

Additionally, the emphasis on innovative urban initiatives, support for tribal communities through the Pradhan Mantri Janajattiya Unnat Gram Abhiyan, and enhancements in MSME credit and tax structures reflect a forward-thinking approach to national development.

Lalit Beriwala serves as Director of Shyam Steel Industries Ltd. Shyam Steel, established in 1953, is one of the leading manufacturers of TMT bars in India. The company has a strong presence in the infrastructure sector, supplying high-quality steel products to various segments such as Indian Railways, Defence, and major construction projects.

The reduction in corporate income tax on foreign companies to 35 per cent from 40 per cent is seen as a step to attract global investment as well as broaden the tax base. Read more

“Budget 2024-25 is holistic in nature, offering a level playing ground for many segments of society. Both direct tax relaxation under the new tax regime and the reform initiatives are directed toward sustainable growth and empowerment. Focus on employment and up-skilling, in addition to scheme benefitting women, is commendable. Initiatives towards achieving self-sufficiency in pulses and oilseeds are progressive moves which would benefit the industry.”

“The Union Budget 2024 is a progressive and balanced budget. It focuses on multiple sectors including agriculture, rural development, MSMEs, women, employment and skill development is anticipated to spur economic growth. With a clear emphasis on capital spending to generate growth and a strong focus on employment along with some tax benefits, we expect consumption to improve. Further, simplification of taxation is also a very welcome move.”

On the infrastructure sector

“The Union Budget’s comprehensive focus on infrastructure development is a transformative step for our nation’s future. The substantial capital expenditure allocation, along with provisions for long-term interest-free loans to states, showcases a visionary approach that will drive economic growth and innovation. Encouraging private sector participation through viability gap funding and market-based financing frameworks will foster a dynamic environment for infrastructure advancements. These initiatives are poised to significantly improve connectivity, boost productivity, and create numerous job opportunities across various sectors. By prioritizing sustainable development and leveraging both public and private investments, this budget positions India on a robust path to becoming a global leader in infrastructure excellence.”

On the MSME sector

“The Union Budget’s focus on strengthening the MSME sector is a crucial move towards fostering inclusive economic growth. The introduction of the new credit guarantee scheme and the enhanced credit support mechanisms reflect a deep understanding of the needs of small and medium enterprises. By increasing the Mudra loan limits and promoting digital credit assessments, the government is ensuring that MSMEs have the necessary financial support to innovate and expand. These comprehensive measures will not only boost the resilience and productivity of the MSME sector but also generate employment and drive economic development across the nation. We commend the government for its commitment to creating a supportive ecosystem for MSMEs, which are the backbone of our economy.”

On Public Private Partnership

“Finance Minister Nirmala Sitharaman’s emphasis on public-private partnerships is a transformative step for the infrastructure sector. The simplification of FDI norms to facilitate inflows is a genuine effort by the government to attract and sustain private investment in India. By prioritising and promoting Foreign Direct Investment, the government is creating a conducive environment for investors. By fostering collaboration between the government and private players, we can leverage the strengths of both sectors to enhance project execution, innovation, and efficiency. This approach not only promises accelerated development but also ensures that the infrastructural growth is sustainable and inclusive. The significant budget allocation towards infrastructure underlines the government’s commitment to building a robust foundation for India’s future, and we at Jupiter Wagons Ltd. are enthusiastic about contributing to this national endeavour.”

The Budget has given the Archaeological Survey of India a booster shot, giving it ₹140.38 crore under ‘capital’ budget, compared with ₹30.27 crore in the revised estimates for 2023-24 and ₹15.67 crore (actual) in 2022-23. 

The allocation towards revenue expenditure to ASI remains unchanged, at around ₹1,000 crore. Read more

“We welcome the Budget 2024 announcement to reduce BCD on mobile phones, PCBA and chargers, while simultaneously extending exemptions on inputs/raw materials for smartphone manufacturing, capital goods, and inputs for capital goods in the electronics industry. 

At Xiaomi India, we have been manufacturing nearly 100% of our smartphones locally with a strong emphasis on sourcing components like PCBA, charging cables, camera modules, and mechanics, among others. Today’s announcement will help further strengthen the domestic electronics manufacturing ecosystem.

The proposal for a comprehensive review of the tariff rate structure is another positive step that will further strengthen the industry. 

We appreciate the government’s emphasis on increasing women’s participation in the workforce and the employment-linked incentives for first-time employees. With these progressive steps, we anticipate a surge in consumer spending, including increased demand for smartphones. “ said, Muralikrishnan B, President at Xiaomi India.

Provisions on employment and skilling, consumption boost, and support for rural and MSME sectors in the first budget of the Modi 3.0 government have ​enthused NRI businessmen in the Gulf region​.

The Budget has ​allocated ₹10,000 crore to set up a ‘price stabilization fund’​ to keep food inflation under check. 

Allocations to the Ministry of Consumer Affairs, Food and Public Distribution have seen a bump, from ₹258 crore (under ‘revenue’) in the revised estimates for 2023-24, to ₹10,237 crore for 2024-25. This is because of the price stabilization fund. 

Khelo India, which is the government’s flagship project to promote sports at the grassroots level, was once again the biggest beneficiary in the Union Budget for the Sports Ministry as it was assigned ₹900 crore from the overall allocation of ₹3,442.32 crore on Tuesday.

Kehlo India’s share, announced in the Budget presented by Finance Minister Nirmala Sitharaman here, is ₹20-crore more than the revised allocation of ₹880 crore during the previous financial year.

“The Union Budget’s emphasis on employment, skilling, and digital infrastructure marks a transformative moment for the IT and ITES sectors. The allocation of Rs 1.48 lakh crore for these categories, coupled with the PM Package comprising five key schemes, underscores the government’s commitment to building and nurturing a skilled workforce, which is indispensable for our industry. The revised skill loan scheme and the comprehensive internship program will provide young talent with invaluable exposure and opportunities, creating a pipeline of skilled professionals.

A noteworthy highlight is the focus on enhancing women’s participation in the workforce through the establishment of working women hostels, creches, and women-specific skilling programs. These initiatives will empower women, enabling them to contribute significantly to the socio-economic development of the country. Ensuring that women have the support and opportunities they need to thrive in their careers is essential for building an inclusive and prosperous society.

The focus on digital public infrastructure and innovation by the private sector is a welcome move, poised to enhance productivity and create new business opportunities. The allocation of over Rs 11 lakh crore for infrastructure development, along with supporting policies to promote private investment, will significantly bolster the growth of both digital and physical infrastructure, driving holistic economic progress.

Furthermore, the establishment of the Anusandhan National Research Fund and incentives for R&D will accelerate technological advancements, fostering a culture of innovation. The reduction in corporate tax rates further enhances the competitiveness of Indian companies on the global stage.

Overall, the budget’s comprehensive approach to skilling, infrastructure, and innovation lays a strong foundation for sustained growth in the IT and ITES sectors, aligning with Happiest Minds Technologies’ vision of leveraging technology for transformative outcomes. This budget is a significant step towards realizing the vision of ‘Viksit Bharat’ – a developed India – by empowering our youth, fostering innovation, and building world-class infrastructure.”

With 66% of the Indian population still under the age of 35 and an estimated 7-8 million youth entering the job market annually, Union Budget 2024-25 provides a much needed impetus to advancing employment opportunities and youth upskilling, supported by focus on comprehensive development for the country. Although healthcare did not seem to have a major focus this time, it is promising to see the 12.5% hike in budget allocation for the sector at Rs. 89,287 crores as compared to the last Budget. 

In a period of maintaining the status quo, the government is taking bold strides with initiatives outlined in the Interim Budget 2024, including the establishment of new medical colleges, the promotion of vaccines for cervical cancer, expanded maternal and child care schemes, and the innovative “You Win” platform for immunisation.

Additionally, the proposed reduction in customs duties on X-ray tubes and flat panel detectors for domestic X-ray machine production, alongside the exemption of three cancer medicines from customs duty, marks a significant relief for cancer patients nationwide. This progressive budget underscores a commitment to fostering inclusive growth within the healthcare sector, striving to bridge the rural-urban divide and ensure equitable access to essential services.

Quote on behalf of Savills India

“This budget has a sharp focus on urban and infrastructure development, with manufacturing and housing as strong beneficiaries. ‘Cities as Growth Hubs’ has the look of a mission statement. Among a host of points contained therein, 14 large cities to get Transit Oriented Development is key. So is the framework for creative brownfield redevelopment of existing cities. This is much needed for the rejuvenation of several cities which are under immense strain. The INR 15,000 crore allocation for Andhra Pradesh’s capital city is another highlight of the budget. The other big focus area of the budget – manufacturing – is poised to get strengthened with the extension of Credit Guarantee Scheme for MSMEs, setting up of industrial parks & corridors as well as e-commerce export hubs. This will eventually lead to a stronger economic performance for the country. The attendant real estate segment of warehousing will certainly gain from this. The budget has also given ample attention to urban and rural development, with rental housing for industrial workers through PPP model, interest subsidies for rental housing and Transit-Oriented Developments. Additional 3 crore housing units in rural and urban areas, under PMAY, is a welcome step for closing the gap in the sector. The decision to increase Standard Deduction along with lowering the tax-slabs in the new tax regime for personal income tax should lead to increase in disposable incomes for the middle-income group. This will bode well for demand in affordable and mid-income housing. The changes in capital gains tax remain an area of concern though.” – Anurag Mathur, CEO, Savills India.

Finance Minister Nirmala Sitharaman on Tuesday announced to develop large-scale clusters for vegetable production closer to major consumption centres and steps to strengthen supply chains in the Budget. 

“Large scale clusters for vegetable production will be developed closer to major consumption centres. We will promote Farmer-Producer Organizations (FPOs), cooperatives and start-ups for vegetable supply chains including for collection, storage, and marketing” she said in her budget speech. Experts see this as a strategic move to addresses several persistent issues that vegetable growers are facing. 

Finance Minister Nirmala Sitharaman on Tuesday retained the allocation to the state-owned National Highways Authority of India (NHAI) at ₹1.68 lakh crore for 2024-25.

Sitharaman, in her pre-election Budget earlier this year, had allocated ₹1.68 lakh crore to NHAI for 2024-25.

The hospitality sector has been pinning high hopes on the Union Budget for 2024- 25 presented by Smt. Nirmala Sitharaman today, on the backdrop of the Government of India’s stated vision of Viksit Bharat by 2047 and the critical role tourism industry holds in achieving it. However, there is nothing spectacular in the budget to bring structural changes to address the fundamental challenges it faces in a competitive world order and to accelerate the growth of the sector to be a $ 3 trillion economy by 2047.

Some key demands of tourism & hospitality to revitalize the sector such as GST rationalization, granting of infrastructure status and bringing ease of doing business and policy reforms have not been considered in the budget once again, given the well accepted multiplier effect of tourism on employment and economy.

The hospitality sector is disappointed but not dejected as the overall focus on infra structure development, employment generation and skill development and development of religious tourism centres are the silver linings which will help the sector to tide over some of the critical challenges that it faces today.

The government’s proactive perspective on enhancing tourism, particularly through the development of spiritual and cultural landmarks like the Vishnupath temple in Gaya and Mahabodhi temple in Bodhgaya is a commendable move that promises substantial economic and social benefits. Furthermore, the development plans for Rajgir and Nalanda represent a significant investment in promoting India’s ancient historical and educational legacy. The government’s commitment to supporting tourism in Odisha will not only highlight Odisha’s unique attractions but also encourages sustainable practices that preserve the state’s ecological balance and cultural heritage.

The focus of Budget 2024 on youth employment, skill development and job creation are welcome initiatives. The industry has been facing a shortage of skilled workforce, especially in the hospitality sector.

It is also laudable that the Honourable Finance Minister’s Budget speech highlights the Governments’ commitment to make India a premier global travel destination through targeted investment and strategic initiatives. Development of iconic spiritual sites along with promotion of cruise and beach tourism can be helpful in attracting both domestic and international tourists.

The government on Tuesday allocated ₹6,21,940 crore for the defence budget for 2024-25, up from last year’s outlay of ₹5.94 lakh crore.

The capital outlay has been pegged at ₹1,72,000 crore.

The total allocation to the defence sector is 12.9 per cent of the total budget of the government of India for the financial year 2024-25.

To boost domestic manufacturing and promote local value addition, ​Budget 2024-25 has proposed reduction or withdrawal of customs duties​ on a slew of items including gold & silver, mobile phones & chargers, medicines & medical equipment, critical minerals and inputs for leather & textiles industry.

Sanjiv Puri, President of the Confederation of Indian Industry (CII), lauded the budget for its wide-ranging investments across multiple sectors. He emphasized the budget’s focus on simplifying business processes and legislative frameworks.

Puri said, “It has brought in a lot of investments into a number of sectors right from agriculture, and manufacturing to services. A lot of focus is on ease of doing business, and a lot of areas are getting simplified. The Finance Minister also spoke about a comprehensive review of Tax legislation, to simplify it.”

“A very strong signal for greater ease of doing business and a very strong signal to bring in reform at the state level also. And very importantly the next generation reforms, look at all the factor costs, I think these are some of the very important, very strong statements, very strong announcements that are made,” added Puri.

The government will set up a ​venture capital fund of ₹1,000-crore to promote space technology​, Finance Minister Nirmala Sitharaman said on Tuesday, an announcement welcomed warmly by the industry.

Several stakeholders, including the Indian Space Association (ISpA) as well as the heads of the Indian National Space Promotion and Authorisation Centre (IN-SPACe) and Pixxel Space, said the provisions announced in Budget 2024-25 would fuel growth and development of the sector.

Uttar Pradesh Chief Minister Yogi Adityanath on Tuesday hailed the Union Budget, saying it is a “public welfare budget” that will fulfil the hopes and aspirations of 140 crore Indians and all the resolutions of ‘Amritkaal’.

Bahujan Samaj Party (BSP) chief Mayawati, however, termed it as a disappointment for the poor, unemployed, farmers, women, marginalised and neglected ‘bahujans’ (communities) of the country. - PTI

The government on Tuesday proposed ​slashing import duty on mobile phones, chargers and some components​ that are used for manufacturing of handsets in the Union Budget for fiscal year 2024-25.

Finance Minister Nirmala Sitharaman said with a three-fold increase in domestic production and almost 100-fold jump in exports of mobile phones over the last six years, the Indian mobile phone industry has matured.

Finance Minister Nirmala Sitharaman on Tuesday said a solution will be evolved with respect to the New Pension Scheme (NPS) that will address relevant issues and ensure fiscal prudence.

Last year, the finance ministry had set up a committee under Finance Secretary T V Somanathan to review the pension scheme for government employees and suggest any changes, if needed, in the light of the existing framework and structure of the National Pension System.

Finance Minister Nirmala Sitharaman on Tuesday announced a ​cut in customs duty on minerals such as lithium, copper and cobalt​, which are critical for nuclear energy, renewable and other sectors, to give a fillip to the energy transition.

In her budget speech in Lok Sabha, Sitharaman recalled that in the interim budget she had announced a strategy to sustain high and more resource-efficient economic growth, along with energy security in terms of availability, accessibility and affordability.

Ashish Singhal, Co-founder, Lemonn and CoinSwitch

“We welcome the Union Budget 2024-25 as a pro-development budget bringing great news for startups. As a founder and angel investor, I’m thrilled that the Angel Tax has been abolished. This will significantly bolster the entrepreneurial ecosystem in India.

The emphasis on digital public infrastructure and the digitalization of the economy will greatly benefit tech startups like ours, which are focused on developing population-scale apps for Indians.

However, the securities markets face challenges with the increase in short-term capital gains tax from 15% to 20%, the rise in long-term capital gains tax from 10% to 12.5%, and the hike in STT on F&O. The immediate market reaction has been less than positive.

Regarding crypto, we had hoped the government would reduce taxation to align it with other asset classes. Unfortunately, this has not been addressed, representing a missed opportunity to support startups and investors in the crypto space.

We are still examining the finer details of the budget to fully understand its broader implications.”

Colin Shah, MD, Kama Jewelry

“The reduction of customs duty on gold & silver to 6% and platinum to 6.4% is a welcome move by the Finance Minister. This was one of the long-standing demands of the industry and coming up of this announcement especially at a time when the industry is already grappling with various challenges will certainly help the industry to march on the path to progress. This will play a major role in bringing down the cases of smuggling and provide cost benefits to the consumers in the country, which will provide a major fillip to the demand in the domestic market. This will also provide a big boost to FTAs, thereby creating a space for expanding the exports in the less explored overseas markets. Additionally, introduction of Credit Guarantee Scheme in MSME Sector for collateral-free loans will help in empowering the MSME sector. Setting up of E-Commerce and MSME hubs under Public Private Partnership (PPP) will play a key role in facilitating services pertaining to trade and exports. FMs proposal to withdraw the 2% equalisation levy will assist in providing relief to digital companies, thereby giving a major boost to online buying. Lastly, acceptance of Safe Harbour Rule for the sale of rough diamonds in Special Notified Zones (SNZs) is another welcome step which will help in brining transparency in trade activities in the SNZs.”

Chirag Sharma, CEO, Drone Destination said- “We welcome the budget’s focus on creating digital agriculture, employment generation, skill development, and women in the workforce. At Drone Destination, we continue to be a lead player in the Namo Drone Didi program to train and empower women drone entrepreneurs from self-help groups in rural areas. We look forward to carrying our extensive drone mapping experience from schemes like SVAMITVA to support creation of digital public infra in agriculture. Additionally, our recent MoU with NSIC to establish drone training centres nationwide aims to skill and develop a future-ready workforce for the growing demands in the Indian drone eco-system”

Ajai Rana, Business Head, Asia Pacific - RiceTec: The Union Government’s intent on transforming agricultural research with a focus on increasing productivity and development of climate-resilient varieties is commendable.

The proposed introduction of 109 climate resistant crops in 32 categories will pave the way for further research and advancements in climate technologies.

Both wheat and rice are staple crops in the Indian agricultural ecosystem and occupy ~ 108 Mn. acres and 74 Mn. acres respectively.

Large-scale adoption of next-generation technologies will help increase productivity with lesser resources, reducing the demand for increasing farmland and pressure on the environment. 

India’s agriculture sector is a key contributor to the nation’s economy and introduction of new technologies and availability of quality agronomic inputs go a long way in boosting the sector’s growth.

The Centre’s focus on pumping in higher allocations for rural development, agriculture and allied services and schemes for employment and skilling of youth is expected to boost both rural and urban consumption for consumer products. At the same time, construction of an additional one crore homes under PMAY Urban 2.0 with an outlay of ₹10 lakh crore will also boost purchase of consumer durable products.

Shishir Baijal, Chairman and Managing Director, Knight Frank India.

Government reaffirms Committed to Infra and Social development; First steps towards Rental Housing addressed.

Amit Patjoshi, CEO, Palladium India

The Union Budget 2024 for agriculture is a game-changer! With a whopping Rs 2 lakh crore package for agriculture and allied sectors, it promises to revolutionize the industry. The comprehensive focus on productivity and resilience in agriculture addresses many of the long-standing challenges faced by farmers. By introducing one crore farmers to natural farming, not only will the budget promote environmentally friendly practices, but it will also help reduce input costs and increase profitability for farmers. Certification and branding support will enable these farmers to access better markets and secure higher prices for their produce. Moreover, the emphasis on achieving self-sufficiency in pulses and oilseeds is a strategic move to reduce India’s dependency on imports, ensuring food security and price stability. The enhanced efforts in production, storage, and marketing will strengthen the entire value chain, benefiting farmers and consumers alike. Also, the establishment of 10,000 need-based Bio Resource Centres will serve as hubs of innovation, providing farmers with access to the latest technology, best practices, and support services. These centres will play a crucial role in promoting sustainable agricultural practices and improving the overall efficiency of the sector. 

Overall, the Union Budget 2024 is a significant step towards creating a more resilient, productive, and sustainable agricultural sector in India.

Raghav Gupta, Managing Director, APAC and India, Coursera.

“The Union Budget 2024-2025 showcases a crucial commitment to boosting education, employment, and skill-building capacity, perfectly aligning with the Government’s vision of Viksit Bharat by 2047. The budget’s special focus on skilling 20 lakh youth over the next five years through centrally sponsored schemes, the upgradation of 1,000 training institutes, and the provision of skilling loans are steps in the right direction.

I am particularly excited about the provision for 1 crore youth to gain industry experience through internships with 500 top companies – this will bridge the gap between theory and practice. The cross-sector collaboration can address the rapidly growing skills gap and social inequities, ensuring students transition smoothly into high-demand job roles. Businesses will also benefit from a diverse and skilled talent pool, reducing recruitment time and costs.

In today’s digital era, where talent can emerge from anywhere, access to digital skills will be a game changer. We’re excited to support these initiatives and provide millions of Indians a gateway to more equal opportunities, all while unlocking our demographic dividend and accelerating our journey towards a $5 trillion economy.”

Budget-2024; will give a boost to overall economic growth. Thankful to the GoI for reducing duty on import of components of X-ray equipment. Medical devices industry was expecting more for quality and affordable healthcare: AiMeD Forum Coordinator Rajiv Nath

Tejas Gutka, Fund Manager, Tata Asset Management

While we await details from the fine print, prima facie, these announcements appear to be positive for construction companies. Housing finance companies, particularly those focused on low ticket housing, would also be beneficiary of the PM Awas Yojana. Having said that, the disbursements under such schemes in the past have made up a very small proportion of the loan books of these companies. On balance, we believe that these announcements are marginally positive for the sectors.

Colin Shah, MD, Kama Jewelry

“The reduction of customs duty on gold & silver to 6% and platinum to 6.4% is a welcome move by the Finance Minister. This was one of the long-standing demands of the industry and coming up of this announcement especially at a time when the industry is already grappling with various challenges will certainly help the industry to march on the path to progress. This will play a major role in bringing down the cases of smuggling and provide cost benefits to the consumers in the country, which will provide a major fillip to the demand in the domestic market. This will also provide a big boost to FTAs, thereby creating a space for expanding the exports in the less explored overseas markets. Additionally, introduction of Credit Guarantee Scheme in MSME Sector for collateral-free loans will help in empowering the MSME sector. Setting up of E-Commerce and MSME hubs under Public Private Partnership (PPP) will play a key role in facilitating services pertaining to trade and exports. FMs proposal to withdraw the 2% equalisation levy will assist in providing relief to digital companies, thereby giving a major boost to online buying. Lastly, acceptance of Safe Harbour Rule for the sale of rough diamonds in Special Notified Zones (SNZs) is another welcome step which will help in brining transparency in trade activities in the SNZs.

Ashish Singhal, Co-founder, Lemonn and CoinSwitch

“We welcome the Union Budget 2024-25 as a pro-development budget bringing great news for startups. As a founder and angel investor, I’m thrilled that the Angel Tax has been abolished. This will significantly bolster the entrepreneurial ecosystem in India.

The emphasis on digital public infrastructure and the digitalization of the economy will greatly benefit tech startups like ours, which are focused on developing population-scale apps for Indians.

However, the securities markets face challenges with the increase in short-term capital gains tax from 15% to 20%, the rise in long-term capital gains tax from 10% to 12.5%, and the hike in STT on F&O. The immediate market reaction has been less than positive.

Regarding crypto, we had hoped the government would reduce taxation to align it with other asset classes. Unfortunately, this has not been addressed, representing a missed opportunity to support startups and investors in the crypto space.

We are still examining the finer details of the budget to fully understand its broader implications.”

Aasif Malbari, CFO, Godrej Consumer Products Ltd (GCPL)

“The Union Budget of 2024 promises holistic growth of India’s macroeconomics at the grassroots level. Investments in job creation, skill upgradation, and MSME development will support more inclusive economic growth. The special focus on agricultural schemes and rural development will indirectly boost consumption spending, particularly in rural and non-metro markets. The budget aligns with the vision of India@100 by allocating resources for rural upliftment, urban development and cultivating a resilient and inclusive economy.”

We are committed in making India the third largest economic power and Viksit Bharat : PM Modi

Focus has also been on connecting remote areas through development of all-weather roads in rural regions : PM Modi

We are committed towards eliminating poverty and empowerment of poor income households : PM Modi

In line with our focus on enhancing farmers income, we are now bringing scheme to develop vegetable clusters. It will also enhance the availability of vegetables for the country : PM Modi

We are also focusing on development of North-Eastern Segment ..We are focusing on enhancing infrastructure, highways in this region: PM Modi

We have focused to give relief to poor and middle income households in terms of Taxes in the past ten years. This year too that emphasis is there : PM Modi

Today India seen as an attractive investment destination as well as a tourism destination : PM ModiBudget empahsises on Tourism Sector : PM Modi

Angel Tax has been removed: PM Modi

This budget bring opportunities for start-ups, innovation ecosystem : PM Modi

Budget focuses on taking Manufacturing to every district in the country : PM Modi

MSME sector is linked with middle income households. This sector provides employment to poor income citizens : PM Modi

MUDRA Loan limits has been enhanced. Will help up tribals, Dalits, lower income groups : PM Modi

PLI scheme has been lauded globally for its succes. Now, we have announced employed-linked incentive scheme. Skill and Higher Development benefits as well as internship opportunities for one crore youth will give them exposure to working in top companies : PM Modi

Budget puts emphasis on manufacturing and infrastructure : PM Narendra Modi

The Seventh Union Budget of the Finance Minister is a refreshingly no-frill budget that addresses the present realities and challenges of the agriculture sector. The announcement of releasing 109 high-yielding and climate-resilient varieties of 32 field and horticultural crops for cultivation marks a significant step forward in advancing agriculture. Collaborative research of public institutions with the private sector for development of newer climate resilient varieties and farm practices for the various agro-climatic zones in the country would help farmers navigate and manage the emerging challenges in coming years.

The Modi 3-0 government continues the emphasis on technology and digital advancements. The digital crop survey for Kharif in 400 districts is another important announcement and will strengthen the digital public infrastructure for agriculture. It will enhance transparency, empower farmers by providing them alternatives, and create more opportunities. We welcome the Government’s commitment to comprehensively review the Agricultural Research Setup, highlighting the need to raise productivity and develop climate-resilient varieties. As a company dedicated to high-end R&D, we believe this will strengthen India’s capacity to deliver solutions tailored to our diverse agro-climatic zones, benefiting a large number of farmers.

Strategy to bring “atmanirbartha” in oil seeds like mustard, groundnut, sesame and sunflower is a welcome move and would not only conserve precious foreign exchange but also unleash the potential of domestic production. The private sector can play a major role in this effort. 

The agrochemical sector was also expecting schemes such as production linked incentive (PLI) scheme, income tax benefit of 200 percent weighted deduction on R & D and the rationalization of GST rates at par with other agri inputs.

The Union Budget 2024-25 ​announced ₹15,000 crore special infrastructure assistance​ for new capital project of Amaravati, Andhra Pradesh. 

The Finance Minister, Nirmala Sita Raman in her Budget speech today also announced a slew of measures to implement promises made in Andhra Pradesh State Reorganisation Act 2014

According to Mr. A P Sinha, Director of Farlense Group,“ The Government of India has announced a forward-thinking agricultural budget for 2024-25, significantly increasing the allocation to Rs. 1.52 lakh crore, representing a 21.6% rise from the previous year. This budget introduces several strategic initiatives aimed at modernizing the agricultural sector. Key highlights include the establishment of Digital Public Infrastructure (DPI) linked to farmers, which will further enhance the ability of banks to judge the creditworthiness of farmers and thus promote further inclusion in the formal credit system., the introduction of 109 high-yielding and climate-resilient crop varieties along with research centres aligned with efforts to ensure food security, and the creation of 10,000 bio-input resource centres to support sustainable farming practices. Additionally, the expansion of the Kisan Credit Card scheme to five states will ensure better access to credit for farmers. The Agri-Infrastructure Fund will see a significant increase to Rs. 30,000 crore in 2024, compared to Rs. 25,000 crore in 2023. This funding will improve rural infrastructure, including cold storage facilities, warehouses, transportation networks and most importantly food processing infrastructure. The budget also emphasizes employment generation through three schemes focused on job creation in rural areas, reducing urban migration

This budget underscores the government’s commitment to sustainable agriculture and climate resilience by promoting the use of climate-resilient crops and natural farming techniques. While the budget has been widely praised for its visionary approach and that the Government of India is dedicated to fostering economic growth, social development, and environmental sustainability across the nation effective implementation and coordination between central and state governments will be crucial to ensure that these initiatives deliver tangible benefits to the farming community .”

“The recent budget announcement by the Government of India brings a blend of optimism and challenges for the auto retail sector. The focus on ‘Garib’, ‘Mahilayen’, ‘Yuva’, and ‘Annadata’ highlights a comprehensive approach towards inclusive growth, which is commendable. The enhanced Minimum Support Prices for major crops and the launch of Phase IV of PMGSY are positive steps that will boost rural incomes and improve rural connectivity, thereby potentially increasing rural auto sales.

The budget’s emphasis on employment, skilling, MSMEs, and the middle class is particularly relevant for our industry. The Employment Linked Incentive scheme and the enhancement of Mudra loans are encouraging developments that will support job creation and entrepreneurship, leading to increased consumer spending power.

ignificant infrastructure investments, with an allocation of Rs. 11,11,111 crore for capital expenditure, will have a multiplier effect on the economy. Improved infrastructure is a boon for the auto sector, facilitating better logistics and enhancing the overall consumer experience.

The adjustments in personal income tax, including increased standard deductions and relief for salaried employees and pensioners, are welcome measures that will enhance disposable incomes, fostering a more favorable environment for auto sales.

However, the industry must also navigate certain challenges. While the budget provides a robust framework for growth, the effective implementation of these policies will be crucial. We hope for continued support from the government in addressing specific issues faced by the auto retail sector, such as the transition to green mobility and the need for policies that support sustainable practices.

Overall, the budget lays a strong foundation for future growth, and we are optimistic about the positive impact it will have on the auto retail industry.”

We welcome the government’s announcement in the Budget 2024-25 to fully exempt three additional cancer medicines from custom duties. This is a significant step towards making essential cancer treatments more accessible and affordable for patients across India. The high cost of cancer medications has been a major barrier for many patients, and this exemption will undoubtedly provide much-needed financial relief to those battling the disease.

Furthermore, the proposed reduction in the basic custom duty (BCD) on x-ray tubes and flat panel detectors for use in medical x-ray machines are commendable. By aligning these changes with domestic capacity addition, the government is not only supporting the growth of local manufacturing but also ensuring that advanced medical technology is available to improve diagnostic accuracy and treatment outcomes for cancer patients. We applaud the government for these decisive measures and are confident that they will bring us closer to a future where every cancer patient has access to the best possible care.

“The abolition of the angel tax for all classes of investment is a monumental step towards fostering a vibrant startup ecosystem in India. This move will boost the entrepreneurial spirit and drive innovation, giving startups greater access to essential capital., particularly in the AI sector, which is expected to be a game changer for businesses and economies.

Upgrading 1000 industry training institutes in a Hub and Spoke arrangement will bridge the skill gap and prepare youth for future jobs. The emphasis on women-led development and AI-driven upskilling for women highlights a commitment to gender equality and inclusive growth. Public investment in digital infrastructure and private sector innovation showcases the power of technology in enhancing access to essential services. Initiatives like the Jan Vishwas Bill and the Anusandhan National Research Fund, with a pool of Rs 1 lakh crore, will propel research, innovation, and ease of doing business.

We appreciate the government’s steadfastness in fostering the startup community. This futuristic approach will place India at the top of the generative AI list thus, promoting economic activities, embracing innovation, and fighting inequality through inclusivity.”

“The announcement of a 1000 crore VC fund in the Union Budget 2024-25 for the space sector is a groundbreaking development. This fund will provide crucial financial support to innovative startups and companies, enabling them to scale their technologies and contribute to India’s space ambitions. Such a significant investment underscores the government’s commitment to fostering a robust and dynamic space ecosystem. It also aligns with Union Finance Minister Nirmala Sitharaman and the government’s vision of expanding the space economy fivefold in the next decade.

At Pixxel, we are excited about the opportunities this fund will create to advance space technology and drive economic growth. While we recognise that even larger funds will be needed as the sector grows, this is an excellent start and a vital stepping stone. This initiative marks a significant step forward for India in the global space industry.”

“Angel Tax abolished! This is one of the boldest moves made by the Finance Minister. It will be a big boost to the startup world and a game changer. In addition, the space economy will get a boost with a VC fund of Rs. 1000 crs. Overall, it is a balance budget with a broad brush covering thrust on employment, skilling, infrastructure. It will greatly boost economic activity and will aid in job creation”

Read ​here for details of customs duty cut on gold, silver, platinum​

Read ​​Key Budget announcements here​​

‘The abolition of the Angel Tax is a long overdue and welcome step forward for the Indian startup ecosystem. The government is walking the talk on its commitment to fostering innovation and supporting early-stage ventures. By removing this tax, we can expect a more vibrant and dynamic investment landscape, as investors will be more inclined to fund startups without the burden of additional tax implications. This move will not only attract domestic investors but also bolster confidence among foreign investors looking at India as a viable investment destination.’

Riding on high economic growth and robust revenues, Finance and Corporate Affairs Minister Nirmala Sitharaman on Tuesday presented a budget focused on youth and middle-class, job generation, and a push for MSMEs and manufacturing in the country. 

While catering to the salaried class, youth and farmers, Sitharaman disappointed the futures and options segment in the capital market by hiking Securities Transaction Tax on F&O trades. As expected, the capital gains taxation regime was also rationalised both on rates and the holding period for financial assets.

Read the story here:: ​Budget proposes policy document for appropriate energy transition pathways for hard-to-abate sectors​

The ​Union Budget for FY25 focuses on identifying the appropriate pathways to achieve energy transition​ along with a roadmap for decarbonising hard-to-abate sectors such as refineries and steel making.

Another thrust area is leveraging the latest technologies in nuclear energy and thermal power generation. Besides, it also continues to focus on developing energy storage systems by proposing a policy on pumped storage systems (PSPs).

The Union 2024 budget of the Indian government adds a 1000 crore Rs VC fund to encourage early-stage businesses and innovation. This program will greatly improve the entrepreneurial environment by means of much-needed financing to propel technological development and economic expansion. It emphasizes the government’s aim to create a vibrant startup ecosystem and project India as a worldwide center of innovation.

The Union’s 2024 budget announcement with regards to collaboration with private enterprises to create SMRs is a forward-thinking step. Establishing Bharat compact reactors will improve energy security, lower carbon emissions, and put India at the forefront of sophisticated nuclear technology. This alliance will promote long-term growth and provide a reliable energy solution for the future.

By creating a clear framework in connection with climate taxonomy for green investments will attract more capital to climate-friendly projects, ensuring transparency and fostering confidence among investors. This initiative underscores India’s commitment to addressing climate change and promoting environmentally responsible financial practices.

The removal of the angel tax in the Union 2024 budget is a very welcome announcement. Eliminating this tax helps the government promote innovation, increased domestic and foreign investments, and streamlining of early-stage company financing. This action emphasizes India’s will to help businesses and provide a favorable environment for their expansion.

“The Budget 2024’s focus on boosting women’s workforce participation through hostels, creches, and skilling programs is commendable. The ‘sandwich generation’ of women, balancing childcare and elder care, often sacrifice careers due to these responsibilities. At Emoha, we believe incorporating senior care as an employee benefit is the missing piece of this puzzle. By addressing senior care, we can unlock the full potential of women in the workforce. The encouraging 17.2% rise in net female additions to the workforce in May 2024 could see exponential growth with this approach.

We call on corporations to partner with senior care providers like Emoha. This not only aligns with the government’s gender diversity goals but also creates a truly inclusive work environment. As we look to the future, integrating senior care into employee benefits will be crucial in achieving the workforce participation and economic growth targets set by this budget.

Emoha stands ready to collaborate with businesses to implement these solutions, ensuring that the budget’s vision for women’s empowerment is fully realized. This holistic strategy will be key to building a more balanced, productive, and inclusive economy in the years to come.” - Mr. Saumyajit Roy, CEO and Co-Founder, Emoha

Critical minerals are building blocks for energy transition and for other strategic sectors such as electronics, defence, and telecommunications. The announcement of a Critical Mineral Mission for India will encourage private and government companies to develop capabilities in the critical minerals supply chain and build competitiveness in the medium to long term. CEEW’s 2023 report highlighted the vulnerabilities and opportunities in the global critical minerals supply chain. Indigenising and overseas acquisition of mining and building domestic capabilities to process and recycle will secure the supply chain for the domestic manufacturing ecosystem, especially for clean energy sectors such as solar, wind, EV and batteries. 

As many countries globally look to diversify their imports, India is emerging as an attractive destination. Through this Budget announcement, India has also started to action on its commitments for G20 last year to build reliable, diversified, sustainable and responsible supply chains of critical minerals. A dedicated effort such as this mission and reduction in customs duty for import will also play a pivotal role in supporting existing government initiatives such as the Production-Linked Incentive Schemes which are critical for India’s climate targets. - Rishabh Jain, Senior Programme Lead, CEEW

Sensex and Nifty tanked after Finance Minister Nirmala Sitharaman announced a hike in STT (Securities Transaction Tax) on F&O (Futures and Options) securities.​Read More​

Finance Minister Nirmala Sitharaman on Tuesday said the ​government plans to raise capital gains exemption limit on certain financial assets to ₹1.25 lakh per year​ for middle and upper middle class.

Presenting the Budget for 2024-25, she announced a hike in STT (securities transaction tax) on F&O (futures and options) securities by 0.02 per cent and 0.1 per cent.

The credit guarantee schemes for MSMEs in manufacturing revision announced in the Budget 2024 indicates continued support to MSMEs as they play significant role in the manufacturing value chain of critical industry segments. With focus on plan and machinery, the scheme will help MSMEs to expand capacities, scale up production and improve the size that will make them competitive and enhance market reach. This support is critical in the development of manufacturing ecosystem in India for emerging sectors such as electronics and semiconductors. The scheme is completely aligned to the government focus on ‘Make in India’

The 1000 Cr fund of funds for space tech is testimonial to India’s capability in coming up with breakthrough solutions at low cost. This will certainly help space tech companies to look for much needed early stage capital to get started. This will certainly help mobilise over 4000 Cr, a great move.

“We would like to congratulate the government for this landmark budget. We are impressed with its intent and direction focusing on enhancing manufacturing and export competitiveness. Hon’ble Finance Minister has also acknowledged the tremendous growth of mobile phone manufacturing and exports. We had recommended to reduce BCD on mobile phones, its PCBA and Charger/Adapter 15%, which has been accepted. The mobile and electronics industry is elated with the announcements and will go a long way to enhance manufacturing, exports and our competitiveness. Our proposal for tariff slab rationalisation, as has also been acknowledged and Hon’ble FM has announced that it will be taken up in the next six month, will further embolden the industry and its competitiveness.”

Finance Minister Nirmala Sitharaman on Tuesday ​proposed a reduction in the basic customs duty on gold and silver to 6 per cent​ and platinum to 6.4 per cent.

​Presenting Budget​ 2024-25, she announced the removal of basic customs duty on ferronickel, blister copper, while increasing it to 15 per cent from 10 per cent on specified telecom equipment.

The reduction in basic customs duty on gold, silver and platinum has been a long-pending demand of the gems and jewellery industry. 

The government on Tuesday announced that it will undertake a comprehensive review of the Income Tax Act to make it easy to read.

Presenting the Union Budget for 2024-25, Finance Minister Nirmala Sitharaman also said the government will come out with SoP (standard operating procedure) for TDS defaults and simplify and rationalise compounding of such offences.

She added that two tax exemption regimes for charitable trusts will be merged into one. - PTI

Shares of producers and exporters of seafood products’ firms jumped on Tuesday after Finance Minister Nirmamala Sitharaman said the government will provide finance for shrimp farming and marketing.

Presenting the Union Budget for 2024-25, Sitharaman said that the government has reduced the basic customs duty on shrimp to 5 per cent.

The stock of Zeal Aqua soared 9.27 per cent, Kings Infra Ventures surged 8.15 per cent, Coastal Corp climbed 7.55 per cent, Apex Frozen Foods zoomed 7.51 per cent and Waterbase jumped 5.51 per cent on the BSE.

FM Announces Revised tax rate under New Tax Regime, apart from the above slab revisions, the Standard deduction from 50000 to 75000 for individuals opting for New Tax Regime. This would result in savings of around Rs. 17500 in net taxes in the hands of individual. This would benefit directly to the companies in FMCG segment such as HUL, ITC, Dabur, Nestle and second order beneficiaries would be suppliers to these FMCG giants such as Polyplex, Uflex. Further, increased saving would also boost the inflow to wealth management (AMC’s)in the form of SIP’s, and to Stock broking companies through brokerage.

The government has utilised extra revenues to speed up fiscal consolidation. With the fiscal deficit revised down 20 basis points from the interim budget to 4.9% for this fiscal, it will help ease government security yields and create room for corporate borrowings. We expect sovereign yields to settle at 6.8% by the end of this fiscal

The comprehensive scheme to provide internship opportunities to one crore youth in the top 500 companies over the next five fiscals will support upskilling of youth by providing them with practical work experienced for 12 months.

Companies will have to bear the training cost and 10% of the internship costs are to be used from CSR funds, thereby encouraging the creation of job opportunities. This initiative will increase skilled workforce according to industry needs.

A large-scale rate rationalisation exercise in GST may trigger a new wave of anti-profiteering complaints, assuming the reduced GST rates take effect before the sunset date of 01.04.2025 as recommended by the GST Council in its last meeting. Companies, especially in the B-to-C space, need to be cautious and mitigate their exposure by learning from past anti-profiteering litigations.

While speedy resolution is the main pillar for IBC, time constraints in implementation has been one of the main drawbacks. Building an infrastructure to overcome this hassle, which should ideally include AI, could go a long way in making IBC a true success. This Budget raises hope in this regard.

“The inclusion of Viability Gap Funding (VGF) in infrastructure development is crucial. While great progress has been observed in the development of roads, careful planning and execution of other projects are essential. With a strategic approach, these projects can drive significant economic growth.”

FM also announced developing of a roadmap for moving the hard-to-abate industries from energy efficiency targets to emission targets will be formulated. Appropriate regulations for transition of these industries from the current perform, achieve, and trade mode to Indian carbon market mode will be put in place. Support to traditional micro and small industries.

An investment-grade energy audit of traditional micro and small industries in 60 clusters, including brass and ceramic, will be facilitated. Financial support will be provided for shifting them to cleaner forms of energy and implementation of energy efficiency measures. The scheme will be replicated in another 100 clusters in the next phase.

“Finance Minister Nirmala Sitharaman’s focus on energy security is crucial for addressing India’s growing energy demands and meeting NDC targets. The Economic Survey 2023-24 emphasises the need for a diversified energy mix to ensure sustainable growth. With energy needs projected to grow 2-2.5 times by 2047, addressing renewable energy challenges is imperative. The new 2400 megawatt power plant and the PM Suryaghar Muft Bijli Yojana, providing free solar electricity to 1 crore households, are significant steps. These initiatives will boost our energy infrastructure and encourage renewable energy adoption.

These measures will certainly contribute to India’s sustainable and secure energy future.”

Better revenue collections are being used to maintain the capex thrust and raise revenue expenditure partly, while the rest is being used to trim the fiscal deficit. Clearly, the tax net is being spread wider - CRISIL

New Tax regime: 0-3 L nil, 3-7 % per cent 7-10 10 per cent, Above Rs 15 lakh tax is 30 per cent, salaried employee in new regime can save up to Ts 17,500 Rs

​Budget 2024-25: FM allocates ₹1.52 lakh cr for agri, allied sectors​

The capex for infrastructure sectors is along the lines of the announcement in the interim budget. Over the past three years, the number is higher in absolute terms but lower as a percentage of allocation. - CRISIL

“Focus on e-commerce hubs will help the D2C ecosystem including small vendors and aggregators to bring in greater efficiency in their operations and improve accessibility to markets including exports.”

Capex in the first two months of this fiscal was down 14.4% on-year. So, the government’s budgeted target of Rs 11.1 lakh crore means capex will have to grow at a 23.9% clip for the rest of this fiscal. — CRISIL

“Government is incentivizing the job creation in the manufacturing sector which is likely to impact 30Lakh youth. We expect that these additional skilled workers with disposable income in hand will help in driving growth in the automotive industry in the 2-wheeler segment.”

“Government’s plan to implement a policy for rental housing market, is a big step to streamline residential renting market and can open doors to many large real estate players including foreign investors to establish large residential complexes and ensure smooth renting. Guidance to all States to rationalize stamp duty and to give more benefit for women buyers is also a huge welcome step”.

The capex target of FY25 has been set at Rs 11.1 lakh crore, up by 11.1%. This is unchanged from that announced in the interim budget in February. No change in capex outlay is a major positive and shows the governments resolve to balance both the infrastructure development and populism of coalition politics.

“The government’s commitment to employment and employability is clear with a ₹1.48 lakh crore provision. This initiative, based on EPFO enrollment, focuses on recognizing first-time employees and includes direct benefit transfers of the first month’s salary in three installments for salaries up to ₹1 lakh. Special emphasis is placed on the industrial and manufacturing sectors. Additionally, employers will receive incentives for job creation, with the government reimbursing up to ₹3,000 per month for two years towards EPFO contributions for each new employee.” - Krishnendu Chatterjee, VP and Business Head at TeamLease Services

Huge Allocation under PMAY2 credit linked subsidy scheme is a big boost to the affordable housing market in India and I see a spurt in growth in affordable housing on the back of this announcement - D Lakshminarayanan,MD, Sundaram Home Finance

“The focus on providing funding through banks to MSME is a great initiative.

1. Providing collateral free loans using a credit guarantee scheme

2. Alternate methods to evaluate eligibility of MSME for loan

3. Increasing Mudra threshold to 20 L for msme which have successfully paid back the loan before

4. Increasing reach of institutions through SIDBI etc.

These initiatives addresses the major issue for MSMEs today which is access to Credit by increasing the reach and reducing threshold”

The Finance Minister’s allocation of ₹26,000 crore for highway development in Bihar, including the construction of a two-lane bridge over the Ganga and the development of highways like the Patna-Purnea Expressway and Buxar-Bhagalpur Expressway, will greatly benefit highway construction companies such as GR Infraprojects, KNR Construction, and PNC Infratech. This development will also boost cement demand, benefiting producers like Ultratech, Adani Cement, India Cement, and JK Cement.

✅ Skilling Programme & Upgradation of Industrial Training Institutes

✅ Internship in Top Companies

Sameer Jain, Managing Director at Primus Partners :“MSMEs consume approximately 50% of nation’s power needs and generate over 75% of GHG emissions. While the budget has committed support to MSMEs to grow and compete globally, additional support is required for the greening of the MSME sector, including easier access to climate financing.”

The MSME sector in India is estimated to have a significant funding shortage of Rs 20-25 lakh crore. Banks account for 75% of lending to this segment. Public sector banks will do well to set up in-house, technology-driven underwriting capacity to serve new borrowers and bring them into the formal credit fold. - CRISIL

Pradhan Mantri Janjatiya Unnat Gram Abhiyan will be launched for improving the socio-economic condition of tribal communities. The scheme will adopt saturation coverage for tribal families in tribal-majority villages and aspirational districts. This will cover 63,000 villages benefitting 5 crore tribal people.

The increase of about 30% in the budget dedicated towards Education, Skilling and Employment showcases the mindset of the government to significantly improve the employment and employability in the country (Last year 1.13L Cr -> going to 1.48 L Cr)