With just about two months left for Lok Sabha elections, India¡¯s FM Nirmala Sitharaman had on February 1st presented the interim budget 2024. While the opposition parties such as Congress have called it a vague and lackluster budget, business leaders such as Anand Mahindra have given a thumbs up to FM Sitharaman¡¯s budget.
Besides them, reactions are also pouring in from different sectors of the economy, from tourism, healthcare, education, to BFSI. So, from Radhika Gupta to Harsh Goenka, here are some industry experts who shared their reactions regarding the interim budget announcements:
The Finance Minister¡¯s speech during the Vote on Account exudes confidence that our economy is on track to achieve the Hon¡¯ble Prime Minister¡¯s vision of becoming a ¡®developed nation¡¯ (Viksit Bharat) by 2047. The budget last year had significantly increased infrastructure spends along-side multiple welfare schemes. The results of the reforms and investments are now clearly visible with significant strides in various sectors that bolster the nation's trajectory towards inclusive growth and sustainable development.?
Continued focus on infrastructure, with substantial investments in railways, airports, highways? underscores the government¡¯s commitment to strengthen these sectors which are the backbone for economic growth, job creation, and enhanced quality of life.? The budget also continues several social welfare, crucial for India¡¯s long-term growth, ensuring that development is inclusive and benefits the most vulnerable sections of society. The healthcare initiatives are particularly noteworthy, reflecting the lessons learned during the pandemic and doubling down on the commitment to building a robust public health system. The decision to extend healthcare coverage under Ayushman Bharat to all ASHA and Anganwadi workers will motivate those working at the grassroots and strengthen the primary healthcare ecosystem. The decision to encourage cervical cancer vaccination for young girls will reduce the risks of developing cervical cancer for the 511.4 million women aged 15 years and older.
The foresight shown towards technology is commendable. The 1 lakh crore support for technology investments aligns with the nation's rapidly growing digital economy, unlocking new growth avenues and fostering innovation to cement India¡¯s position as a global leader in the digital space. Strengthening of deep-tech technology for the defence sector will ensure our defence forces are always equipped with the most advanced technologies to meet any future threat.
The agricultural sector, the backbone of the Indian economy, has been getting due attention with 11.8 cr. farmers having received direct financial assistance from PM-Kisan Samman Nidhi so far. The initiatives to enhance agricultural productivity, improve post-harvest marketing and storage infrastructure and better market access will not only boost the sector but also empower millions of farmers. This will go a long way in elevating the rural economy and ensuring food security for India.
The budget makes a strong case for environmental sustainability, aligning with our Net Zero commitment. Viability gap funding for investments in renewable energy, green initiatives, and sustainable urban planning demonstrates our proactive stance on climate change. The proposed rooftop solar investment of 1 crore households will promote grassroot level energy self-sufficiency and also create multiple economic opportunities..
The budget showed continued commitment to simplifying tax structure and removing irritants eg. withdrawal of old outstanding direct tax demands which will bring relief to around one crore small taxpayers. The government's approach to fiscal management also deserves an applause. Measures to consistently bring down fiscal deficit, aiming at a below 4.5% number by FY26 will ensure economic stability.
Overall, balancing growth with social welfare, modernization with sustainability, and fiscal prudence with ambitious development goals, the Interim Budget 2024? has ensured that India¡¯s economic juggernaut continues to roll on as we build a prosperous, resilient, and future-ready nation.
Shark Tank India season 3's new judge Radhika Gupta also tweeted to share her reaction to FM Sitharaman's interim budget 2024.The MD & CEO Edelweiss Mutual Fund shared the following tweet:
"The Indian air travel market is one of the fastest-growing markets in the world. Total passengers handled across airports amounted to around 327 million passengers in FY2023. The increase in fleet by airlines and the development of new airports under the ongoing UDAN scheme has improved regional air connectivity and benefitted travelers from Tier 2 & 3 cities which in turn resulted in significant growth in demand for air travel and first-time flyers.?
We are pleased to see that this will remain an area of key focus for the government going forward.? We are also happy to see the government taking steps to develop new tourist destinations in India that can compete on a global scale. Infrastructure development and improved connectivity for offbeat tourist destinations like Lakshadweep will help build and promote the unexplored and hidden gems of India and will help further boost the tourism sector."?
"The announcement of three new corridors under the PM Gati Shakti for enabling multi-modal connectivity including the energy, mineral and cement corridors, the port connectivity corridor and the high traffic density corridors will help in resolving the current connectivity issues in the country and reduce logistic costs. As said in the Budget Speech, the decongestion of the high-traffic corridors will improve the operations of passenger trains. Additionally, the upgradation of 40,000 bogies to Vande Bharat standards will elevate safety and the overall rail passenger experience by providing a superior train travel experience to Indians. The current budget's focus on the active development and upgradation of railway infrastructure, better connectivity, and new rail tracks will fuel train travel demand in India."??
"The union budget's "Panchamrit" targets, as highlighted by the finance minister, aim to support sustainable economic growth with a focus on using resources efficiently. This is expected to boost India's raw material capacity, especially in the manufacturing of Li-ion batteries. The commitment to strengthen the e-vehicle ecosystem through support for manufacturing and charging infrastructure shows a proactive approach to environmentally-friendly growth. By embracing economic policies for ongoing growth, the government is setting a path for a circular economy, emphasizing environmental responsibility and smart use of resources. This approach not only tackles challenges in the lithium-ion battery industry but also contributes to building a resilient and sustainable future for our nation."
¡°We commend the Finance Minister for presenting a forward-looking budget that reflects a prudent fiscal policy. The renewed focus on collective progress, encapsulated in the philosophy of¡ª Sabka Saath, Sabka Vikas aligns seamlessly with the 'Housing for All' mission. The thrust on transitioning individuals from rented to owned homes is an excellent and a much-needed initiative. It resonates with PNB Housing's continuous efforts to make affordable housing accessible to every segment of society.¡±
¡°Simultaneously, the government's vision to build additional two crore housing units under the PMAY (Grameen) is in sync with our own vision of enabling home ownership for individuals in the country. We are equally optimistic that the increased thrust on inclusive growth and affordable housing will boost rural demand and contribute significantly to the growth of the housing finance sector.¡±
¡°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."
It 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 crores and the primary deficit reducing by Rs. 1.8 lakh crores. 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.
FM¡¯s interim budget is balanced from the point of view of adhering to fiscal prudence, boosting infrastructure growth and prioritizing? focus on four key sections of the economy - the poor, women, youth and farmers. We believe the FM¡¯s focus on higher outlay for infrastructure will help in boosting the broader economy and in the long term will boost investment activity. The government¡¯s support to MSMEs, women entrepreneurs and the agricultural sector aptly aligns with our aim to provide credit support to MSMEs, small business owners, farmers and women entrepreneurs thereby addressing their economic needs. FM¡¯s focus on addressing housing challenges by building two crore additional homes under the PM Awas Yojana-Grameen is certainly positive for boosting the housing sector. While inflation has been a concern globally, FM¡¯s focus on staying on the path of fiscal prudence in the interim budget, will surely be an enabler for stable interest rate scenario in the economy and bodes well for the overall financial sector.
¡°The interim budget for 2024-25, demonstrated a balance between maintaining the momentum of recent initiatives and outlining a vision for future economic growth. In-spite of the upcoming elections, the budget demonstrates the government's commitment to fiscal prudence and long-term planning. At the core of the budget lies a focus on fiscal responsibility. The government has set a fiscal deficit target of 5.1% for FY25 and revised estimate for FY24 is 5.8% of GDP vs 5.9% earlier, exceeding market expectations and showcasing its dedication to sound financial management. The government has reiterated its intention to reach the Fiscal deficit target to get it below 4.5% by FY26. This commitment extends to managing debt, with gross borrowing projected to be lower than the previous year, reflecting a responsible approach to fiscal consolidation. Additionally, efforts to control revenue expenditure further demonstrate responsible fiscal management. After a significant increase in the previous years capital expenditure, the projected outlay to capital expenditure is to grow by 11% to Rs. 11 trillion (3.4% of the GDP).
Despite being an interim measure, the budget reveals a clear long-term vision across crucial areas. Inclusive development and equitable growth remain priorities, evident in initiatives like the Pradhan Mantri Awas Yojana aiming to build an additional 2 crore rural houses in the next five years. This emphasis on inclusivity extends to infrastructure, with continued investments in railways, airports, under the Gati Shakti program for improved logistics efficiency.
Clean energy also receives considerable attention in the budget. Investments in rooftop solarization programs highlight the government's push for modernization and sustainability. The rooftop solarization scheme, targeting 1 crore households with access to free electricity up to 300 units, exemplifies this dual focus on infrastructure development and environmental consciousness.
On the taxation front, there are no changes proposed in the existing income tax slabs but to retain the same tax rates for direct taxes and indirect taxes including import duties.
Overall, the interim budget exhibits continuity and stability, emphasizing fiscal prudence, infrastructure development, clean energy adoption, and inclusive growth. It lays the foundation for a future-oriented path towards economic prosperity. This careful balancing act positions India to navigate the upcoming transition while maintaining its focus on long-term goals, creating a optimistic outlook for the nation's economic trajectory. The 10 year benchmark yield softened significantly with the bond market taking the fiscal prudence shown in the budget positively.¡±
It has been quite inspiring to see how women have moved away from conventional phases of life and made strides in the workforce. The inclusion of budget measures that champion women's empowerment aligns with Renaissance Global Limited¡¯s commitment to fostering and acknowledging the potential of our women workforce in all our international brands and for Irasva,?a woman-founded brand. A lot of our key positions are helmed by determined women, and our focus on empowering women to achieve career growth and progression remains unwavering. As the narrative of success undergoes a continual transformation of the workforce, our organization is enthusiastic about contributing to this progressive trajectory by creating jewellery that embodies the very essence of strong and independent women on a global scale.
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