What India Inc. thinks of the Union Budget 2024

CHENNAI: The Union Budget tabled by Finance Minister Nirmala Sitharaman in the Lok Sabha on Tuesday has been received favourably by various industry leaders across sectors. They believe that the sops and reforms on infra, employment, consumption, and growth announced today would definitely boost economic opportunities.

Here are some reactions from key members of India Inc. including Dr Prathap C Reddy, founder-chairman of Apollo Hospitals, GSK Velu, CMD of Neuberg Diagnostics, Sudarshan Venu, MD of TVS Motor Company, and Arun Alagappan, Executive Chairman of Coromandel:

1. The proposed comprehensive review of the agri research setup to focus on improving productivity and developing climate resilient crops will lend an impetus to ensuring that Indian agriculture can withstand climate impact. The initiative to bring together experts from both the government and the private sector will lend a much-needed fillip to the R&D in the agri sector. The allocation of Rs 1.52 lakh crore for agri and allied sectors is welcome.

- Arun Alagappan, Executive Chairman, Coromandel

2. The budget addresses import dependence in the medical device sector by introducing a health cess on customs duty for remaining medical devices. This aims to fund Ayushman Bharat and ensure quality, affordable healthcare.

- GSK Velu, CMD, Neuberg Diagnostics

3. The huge allocation in both rural and urban locations under the PM Avas Yojna credit linked subsidy scheme is a big boost for the Affordable Housing segment. Lower stamp duty for women purchasing property is likely to drive the growth of more first-time home buyers. Digitisation of land records will improve transparency, boost revenue compliance and improve overall credit flow.

- D Lakshminarayanan, MD, Sundaram Home Finance

4. The focus given to the MSME sector would be a huge boost to the growing number of entrepreneurs in the country. Initiatives such as - credit guarantee schemes for MSMEs, increasing Mudra loans limit to Rs 20 lakh, would provide the much-needed accessibility to credit.

- Ajay Kumar Srivastava, MD-CEO, Indian Overseas Bank

5. To reduce custom duties from 15% to 6% on gold and silver and from 15.4% to 6.4% on platinum to enhance domestic value addition in gold and precious metal jewellery, is commendable. This is going to benefit sellers and consumers equally. The proposed safe harbour rates for foreign mining companies selling raw diamonds in the country is a great move.

- Amarendran Vummidi, Managing Partner, Vummidi Bangaru Jewellers

6. The reduction in I-T slabs under the new tax regime is a game-changer. With more disposable income, people will find it easier to travel and explore new destinations. We applaud this move as it will encourage more people to choose eco-friendly transportation options like our NueGo service.

- Devndra Chawla, MD-CEO, GreenCell Mobility

7. Reiteration of capex will have a positive multiplier effect on the auto and CV sector. First-time employees benefit scheme will entice firms to employ more and also reduce cost to the company. Thrust on women employment is another positive step. Overall, budget consistency, continuity with infra investment and taking care of issues plaguing the rural sector are big takeaways.

- Srivats Ram, MD, Wheels India

8. Budget has acknowledged the need to support MSMEs and improve skill training, especially among the rural population. Significant focus is given to the agri sector to increase digital public infra which will push more farmers to be a part of the registry making the sector more transparent. This move will pave the way for fintechs and agri fintechs to support farmers with better financial offerings.

- Murty LVLN, MD-CEO, Dvara KGFS

9. The focus is on growth in this budget and the government is clearly looking at a long-term strategy. The schemes to get more people into the formal sector will go a long way in tapping into the potential of India’s young workforce, and the Centre's continued commitment to infra development is a big boost for economic growth and opportunities.

- Sudarshan Venu, MD, TVS Motor Company

10. It is growth-oriented and pro-development by focusing on national infrastructure development, urban development, sustainable planning, and inclusive growth through a tech-enabled economy. Focus on private investment in infra, mining and housing sector is also likely to boost the sale of CVs. Reduction in duties on rare earth minerals will help in promoting sustainable mobility.

- Dheeraj Hinduja, Executive Chairman, Ashok Leyland

11. With an alarming 1.46 million new cancer cases projected, the exemption of customs duties on three additional cancer medicines is a vital step toward easing treatment costs. Public insurance programs like AB-PMJAY have made progress, but further public-private collaboration is crucial for affordability and accessibility. Additionally, adjustments in Basic Customs Duty for medical equipment components will support domestic manufacturing and lower costs for advanced technologies.

- Dr Prathap C Reddy, founder-chairman, Apollo Hospitals

12. The focus given to the MSME sector would be a huge boost to the growing number of entrepreneurs in the country. Initiatives such as - credit guarantee schemes for MSMEs, increasing Mudra loans limit to Rs 20 lakh, would provide the much-needed accessibility to credit.

- Ajay Kumar Srivastava, MD-CEO, Indian Overseas Bank

13. Nine sectors have been given thrust, which comes as a welcome measure. In terms of support for state governments, only beneficiaries were Andhra Pradesh, Bihar, Himachal Pradesh, Assam and Uttarakhand. It is blatantly obvious and could have extended to flood-affected states like Tamil Nadu and others. Power sector has been taken care of in green energy, nuclear R&D and thermal power plants. Budget is focused on continuity and growth. Long-term capital gain is a good move in terms of rates while STT (securities transaction tax) has been hiked with an eye on futures and options clampdown. Mudra loans hiked to Rs 20 lakh is also a good move. Huge benefits have been given to MSME sectors. TDS (tax deducted at source) relief has been given for e-commerce companies. On the whole, it is a balanced budget, ensuring continuity of concessions and support from allies to stay in power. However, the middle class has been left in lurch without any big booster.

- S Ramabadran, former central council member, ICSI

14. It is heartening to see that the budget focuses substantially on important priorities namely agriculture, women, youth and poor. The emphasis on the aforesaid areas will put us on a robust path towards holistic development and support the journey of our country of being the third largest economy as envisioned by the Prime Minister under the roadmap for ‘Viksit Bharat’. I would like to welcome the attention given to boost rural demand through the focused allocation of Rs 1.54 lakh crore to the agriculture sector particularly for entry level tractors and two wheelers, which is vital to Indian small farmers. On the same note, significant increase in allocation towards MNREGA is a welcome step.

- Mallika Srinivasan, CMD, TAFE

15. We welcome the Budget's progressive measures to reduce customs duties on gold, silver, and platinum. These changes, coupled with the Centre's commitment to enhancing domestic value addition and craftsmanship, are poised to significantly benefit the jewellery industry, further contributing to the sector’s growth. The new tax regime, with its focus on increased disposable income will boost demand for jewellery as consumers will invest in asset creation.

- Ramesh Kalyanaraman, ED, Kalyan Jewellers

16. We welcome the forward-looking and growth-oriented Budget. As part of India's new blueprint for holistic growth, the increased focus on urban development, infrastructure, innovation, and next-generation reforms will have a multiplier effect on the economy. With a strong emphasis on energy security, industrial development, and MSME support, India is poised for sustainable growth and development. The substantial allocation of Rs 1.52 lakh crore towards agriculture and allied sectors is to be lauded. Initiatives such as natural farming, pulses, and oilseeds missions, along with the development of digital public infrastructure, are crucial for enhancing productivity and sustainability. Leveraging our nine plus decades of expertise, we are committed to driving sustainable development and innovation in India's green transition.

- Ravichandran Purushothaman, President, Danfoss India

17. A very positive move by the central government is reintroducing the interest subsidy under the Credit Linked Subsidy Scheme, which was discontinued in 2022. The interest subsidy for home loans under the Pradhan Mantri Awas Yojana scheme will benefit middle-class and lower-middle-class people. We also appreciate the initiative encouraging states to lower stamp duties for properties purchased by women or in their names, but we need clarity on how it’s getting implemented in the states. The Center's announcement to introduce a unique land parcel identification number for lands is a commendable move because it will help avoid litigations in land dealings. The change in income tax slab will benefit the middle-income group. People with an annual salary of 8 lakhs or less will have additional disposable income of around 15,000 to 20,000 per year due to the change in the slab and the increase in the standard deduction from 50,000 to 75,000. This will significantly help them have more disposable income, which helps them to enable property investment marginally. However, one of the real disappointments is the change in the long-term capital gain tax from 20% with indexation benefit to a flat 12.5% without indexation benefit. This is a setback for investors. If someone sells a property after 10 or 15 years, indexation helps offset the inflation cost, and its removal is a significant setback. We urge the union government to consider providing a 12.5% tax rate with the indexation benefit to motivate investors to invest in real estate.

- CREDAI, Chennai