Hyderabad: Finance Minister Nirmala Sitharaman presented her 7th Budget. Deccan Chronicle spoke to industry leaders to get their reactions to the budget. Here’s what they had to say.
Jasbir Singh, Chairman & CEO, Amber Enterprises
“The government’s continued focus on infrastructure development is a positive move. After the 11 Lakh Cr capex announcement in the interim budget, the government expects the states to carry on the policy thrust. On the manufacturing side, the increase in BCD from 10 to 15 percent on PCBA of specified telecom equipment will enhance localization, spur domestic manufacturing, and create an ecosystem of augmented manufacturing capacity in the country. This is in line with the government’s goal towards Atmanirbhar Bharat.
Pankaj Poddar, Group CEO, Cosmo First
India’s packaging industry is growing at a healthy pace and is contributing significantly through the export route to the exchequer. There is a need to enhance skills for youth, innovation, and R&D support for the sector. We welcome the focus in the budget on creating job opportunities in the manufacturing sector and this coupled with support to the employers will propel the industry to new heights. Further, the introduction of a credit guarantee scheme for MSMEs and facilitating term loans to MSMEs for the purchase of equipment without collateral or guarantee will go a long way to enhance access to capital in the sector
Ankur Mittal, Cofounder, Inflection Point Ventures
While we have to still read the complete change on the abolishment of the angel tax on the face of it, this action has the ability to bring a lot of regulatory clarity which generally is appreciated by the investor communities across the world. This should help founders looking to raise capital both in domestic and international markets.
Prof. Ram Kumar Kakani, Director of IIM Raipur
To support our youth who haven’t been eligible for any benefits under government schemes and policies, Finance Minister Nirmala Sitharaman announced several initiatives. For example, loans of up to Rs 10 lakh for higher education in the domestic sector, e-vouchers directly to 1 lakh students, and over the next five years, 500 top companies will provide internship opportunities with a monthly allowance of Rs 5,000, giving our young people valuable work experience. By integrating financial support for education, robust internship opportunities, and a strong focus on skill development, these measures not only empower our youth but also lay a solid foundation for sustainable growth and innovation. This holistic approach ensures that every segment of our society—from aspiring students to new startups—can contribute to and benefit from India’s evolving economic landscape.
Dr. Pankaj Priya, Deputy Director and Dean-Academics at BIMTECH
Since 2014, the central government’s focus on skilling has remained consistent, as highlighted in the present budget. The prime Minister’s package for skilling envisages a collaboration with all state governments as well as industry. This new centrally sponsored scheme for skilling will support our 20 Lakh youth in upskilling over the next five years. It will translate into more jobs for our youth in rural as well as urban areas. The above investment, along with the newly announced scheme targeting 4.1 crore youth will propel India towards its goal of becoming a developed nation by 2047. The Finance Minister’s far-sighted vision to combine the power of youth and technology in the Viksit Bharat Budget is commendable.
Abhishek Gupta, CEO, Rau’s IAS Study Circle
The Economic Survey 2023-24, which was presented yesterday, highlighted that India needs to be prepared to usher in Industrial Revolution 4.0 through a focus on higher Education and Skills. Keeping in line with the philosophy of creating 78.5 lakh jobs annually as enunciated in the Economic Survey, the Budget has done a commendable job.
Firstly, the budget allocation for Education, employment, and skilling has been increased by 30% to Rs 1.48 lakh crores.
Secondly, the budget has introduced e-vouchers for Education loans to increase GER in Higher Education which presently stands at 28%.
Thirdly, only 4.4% of youths in the age group 15-29 years have received formal training. Accordingly, the Budget has introduced a Revised Model Skill loan scheme to improve the skill sets of youths.
Fourthly, Budget has proposed setting up working women’s hostels to increase female LFPR which stands at around 37% as compared to Male LFPR of 78%.
Lastly, according to a study done by Takshashila Institution, Employment Elasticity in India has fallen below 0.1. Accordingly, the Budget has introduced an Employment-linked incentive scheme on the lines of the Production-linked incentive scheme to boost Job creation.
Overall, the Budget announcements are in the right direction in ensuring that Human Capital Formation remains both means as well as ends of Viksit Bharat by 2047 !!
Dr. Dharmesh Shah, Founder and Director of Holistica World
The allocation of Rs 90,658.63 crore to the Union Health Ministry in the Budget for 2024-2025, marking a significant 12.59% increase from the previous year, reflects a commendable commitment to advancing the nation’s healthcare system.
This year’s Budget introduces several impactful measures. The expansion of digital infrastructure is a crucial step forward, enhancing the efficiency and accessibility of healthcare services across the country. The establishment of new medical colleges, is set to increase the number of trained medical professionals, addressing critical shortages and improving healthcare delivery in underserved areas. Furthermore, the relief measures for cancer patients, including the exemption of certain medicines from customs duties, are expected to alleviate financial burdens and improve patient outcomes.
In addition to these initiatives, the Budget’s focus on modernizing medical device production and supporting primary health care through various schemes demonstrates a comprehensive approach to strengthening the healthcare system.
These achievements reflect a positive direction in addressing the country’s healthcare needs and improving overall public health infrastructure. The ongoing support and implementation of these measures will be crucial in realizing the full potential of this enhanced budget allocation
However, while these steps are promising, there are areas where additional focus could further benefit the sector. For instance, increasing healthcare expenditure to 2.5% of GDP would provide more substantial support for comprehensive healthcare development. Additionally, greater emphasis on research and development, alongside optimized tax incentives and GST rates, could drive further innovation and efficiency in the sector.
Surjeet Thakur, Founder & CEO of TrioTree Technologies.
The Union Budget 2024-25 demonstrates a strong commitment to technological advancement and healthcare innovation. The substantial increase in fiscal allocation for health tech and the strategic focus on skilling 20 lakh youth over the next five years will significantly impact our industry. As a health tech company, TrioTree Technologies welcomes the simplification of capital gains taxation and the abolition of the Angel Tax, which will foster a more conducive environment for startups and innovation. The increased investment in digital health infrastructure and the proposed measures to support research and development in healthcare are promising steps towards building a robust digital health ecosystem.
While the current initiatives are commendable, there are further opportunities to amplify their impact. For instance, increasing investment in health IT infrastructure by an additional 10% could enhance the integration and efficiency of digital health systems. Expanding funding for telemedicine and remote monitoring technologies could significantly improve access to care, especially in rural areas, potentially reaching millions more patients. Additionally, investing in cybersecurity measures to protect patient data and streamlining health IT regulations could further drive innovation and ensure safer, more effective healthcare delivery
Sunil Jhunjhunwala, Co-Founder – TechnoSport
As an athleisure brand committed to empowering our target communities, we appreciate the strategic vision outlined in the Union Budget presented by Finance Minister Nirmala Sitharaman. The Employment-linked incentive schemes will help in job creation for the common people nudge MSME towards formalising the current workforce and will encourage industry to also invest in manpower-intensive sectors such as garment manufacturing.
The credit guarantee scheme tailored for the manufacturing sector and facilitating term loans for machinery acquisitions are noteworthy initiatives that will enhance access to capital for MSME and will help to enhance the productivity and competitiveness of our sector. We are excited to see the budget’s potential to catalyze inclusive growth, creating a resilient and vibrant economy that supports the MSME sector and the manufacturing industry – the crucial engines of our nation’s economic progress.