Interim Union Budget 2024 – Industry Reacts
The interim Union Budget 2024 presented by the FM on 1st February ‘24 shuns unwanted populist measures. Instead it focuses on ensuring that India continues on its high growth trajectory. Technology, innovation, women, and youth continue to be the cornerstone of the Government strategy. Let’s see what the industry has to say about the Budget and its impact. – Editor
The Budget Is In The Right Direction, Reinforcing The Commitment To Drive Continued Economic Growth
CFO, Elgi Equipments Limited
“The interim union budget that was presented earlier this month is in the right direction, thereby reinforcing the commitment to drive continued economic growth. There appears to be a large consensus that the Government has restrained itself from resorting to populist measures typical of a pre-election budget.
The target to contain Fiscal Deficit for FY25 @ 5.1% of GDP, beating general expectation, is a significant step towards achieving the future goal of 4.5%. Measures to boost manufacturing, increased investment in infrastructure and capex will ensure growth. No changes on the tax front may have possibly disappointed some sections. The final budget to be presented in July, 2024 I hope, would probably address some of the areas which are not perceived to be well supported in the interim budget.”
A Promise To Take India’s Infrastructure To The Next Level
Managing Director, Alstom India
“The Union Budget promises to drive development and innovation, taking India’s infrastructure to the next level and by bringing together its transportation ecosystem for rail, road, aerospace and more to benefit individuals and businesses alike. The continued focus on infrastructure with an increased outlay of INR 11.11 lakh crores in FY25 will play a key role in boosting India’s economic growth.
As the frontrunners in sustainable mobility and drivers of India’s rail revolution, the announcement of metro and NaMo Bharat expansion, three major railway corridor program and transformation in existing rail ecosystem will create opportunities for us to introduce world class rolling stock, rail equipment & infrastructure, signalling and services in India. It will not only strengthen the overall efficiency of transportation network but also improve the reliability and safety of passenger trains.
Alstom is committed to support India’s transition to more innovative, sustainable, and accessible mobility systems. We look forward to the opportunities that will emerge from this progressive interim budget.
EVP & MD India, Hexagon MI
A Pivotal Shift Towards A Digital And Inclusive Economy
“India’s 2024 budget announcement underscores a pivotal shift towards a digital and inclusive economy, focusing on technological advancements, investments on R&D, infrastructure building and emphasis of women & skilled workforce in nation building. This strategic direction is not just critical for a self-reliant nation but essential for continuous and sustainable growth in achieving the ambitious $8 trillion economy status in 2030.
At Hexagon, we resonate with this vision, recognizing the immense potential in fostering innovation, digital autonomy & increasing sustainable footprints and our commitment to these principles is unwavering, as we align our efforts with India’s vision of 3rd largest economy, contributing to a future where technology, humanity and inclusivity drive progress and prosperity, together.”
Commitment To Skill Development And Uplifting The Nation’s Workforce
CFO, Porter
We welcome the Interim Budget 2024-2025 that captures inclusive growth and empowerment. Few takeaways: The estimated fiscal deficit of 5.1% in FY25 showcases the path towards the target of 4.5% set by the government by 2025-26.
The Skill India Mission’s significant impact, training 1.4 crore youth, reflects a commitment to skill development and uplifting the nation’s workforce. Moreover, launching one lakh crore rupees financing corpus will enable the private sector to significantly scale up research and innovation in sunrise sectors — a crucial lever for the nation’s capability building and development.
The efforts under the PM Gati Shakti initiative have improved logistics efficiency and have reduced costs, thereby promoting economic sustainability.
Managing Director,
Best Power Equipments (BPE)
The Strategic Focus Aligns With Our Industry’s Evolution
“As we navigate the landscape of Union Budget 2024, it’s crucial for the government to accentuate and foster an environment for both local and global investments in semiconductor technology, AI, and digital platforms.
This strategic focus aligns with our industry’s evolution. Simultaneously, we recognize the imperative to integrate these cutting-edge technologies into our educational curriculum, ensuring a skilled workforce.
This synergy is pivotal for propelling our nation towards the coveted 7 trillion economy by 2030.”
While Applauding The Positive Aspects Of The Interim Budget, We Note Certain Expectations That Remain Unmet
Managing Director,
Quantum Energy
“The emphasis on eco-conscious initiatives in the previous budget, with environmental sustainability among the top 7 priorities, set a commendable precedent.
In today’s budget, this commitment is not only sustained but elevated, reflecting a clear understanding of the urgent need to address environmental challenges. While applauding the positive aspects of the interim budget, we note certain expectations that remain unmet.
The imminent expiration of the FAME II subsidy program by March 2024 sparked hopes for its extension, aligning with the government’s ambitious 2030 target of 30% electric vehicles on Indian roads. An extension would have solidified support for the EV industry. Furthermore, a substantial reduction in GST on lithium-ion battery packs and cells, from 18% to 5%, would have alleviated manufacturing costs, making EVs more competitively priced and boosting consumer adoption.
The absence of a standardized policy for the battery-swapping market is also a missed opportunity. A unified policy would enhance safety, streamline charging infrastructure, and create a more reliable and secure environment for EV users. As we look forward to the full budget post-general elections, we hope these crucial aspects receive due consideration for the sustainable growth of the electric vehicle sector.”
Coupled With The Increased Capital Investment Outlay, The Budget Paints A Promising Picture For Rural Development
Managing Director and CEO,
BN Group
“Finance Minister Sitharaman’s Interim Budget holds promise for the edible oil industry. The continued focus on ‘Atmanirbhar Oil Seeds Abhiyan’ with its emphasis on research, technology adoption, and market linkages is a welcome step towards self-sufficiency.
This, coupled with the increased capital investment outlay, paints a promising picture for rural development and increased consumption, both of which directly impact our industry’s growth. However, the success hinges on the swift implementation of these initiatives. Streamlining access to high-yielding seeds, ensuring timely procurement at remunerative prices, and facilitating value addition, crop insurance are crucial for farmers to truly benefit. Additionally, sustaining the reduced import duties on key edible oils while strengthening domestic production can create a win-win situation for consumers and industry players.
Overall, the budget lays a strong foundation towards self-reliance, but industry collaboration and swift execution will be key to translating vision into reality. We, in the edible oil industry, are optimistic and committed to contributing to a truly ‘Atmanirbhar’ edible oil ecosystem for India.”
Highlights The Government’s Intent To Continue Its Focus On Inclusive And Sustainable Development
President & CEO,
National Engineering Industries Ltd.
“The Interim Budget presented highlights the government’s intent to continue its focus on inclusive and sustainable development. The government stands committed with a special emphasis on empowering the poor, women, youth, and farmers and is focused on driving policies that resonate with their aspirations.
As a responsible brand focused on implementing sustainability, we are pleased to see the government’s focus on promoting electric vehicles (EVs) which is a visionary step towards environmental sustainability as well as overall economic growth.
Additionally, the commitment towards expanding the e-vehicle ecosystem brings an exciting prospect for the youth, which will create employment opportunities that align with the demands of the future. The introduction of biomanufacturing and bio-foundry schemes is also a welcome move that will be a great alternative to bio-degradable production.”
Founder and CEO,
Yatiken Software Solutions
The Forward-Looking Budget Charts A Promising Course For The IT Sector
“In line with the government’s ambitious vision of technology contributing 20-25% to the GDP by 2025, this forward-looking budget charts a promising course for the IT sector.
The allocation for EV infrastructure development is particularly noteworthy as it opens avenues for software development in EV systems, IoT integration, and data analytics.
The 1-lakh crore corpus for long-term financing is another indispensable boon for the IT industry, fostering innovation and research. Moreover, the Skill India Mission’s initiatives and tax benefits for startups provide a robust foundation for skill development and entrepreneurial growth.”
We See The Union Budget 2024 Highlights As Progressive From The Renewable Energy And Climate Change Mitigation Perspective
Director, Kundan Green Energy
“My submission for the Government to consider, is the viability gap funding and overall availability of green finance for renewable energy, especially hydropower. Building a hydel plant typically costs two to three times more capital than solar or wind. Similarly, the gestation period is longer.
This means that hydel plants are capital intensive and require a more robust and longer haul commitment. While cost inflations are a natural outcome, developers also need to mitigate these by factoring in anticipated increases into project costs and minimizing over-runs through optimal use of resources coupled with speed and tight timelines.
A friendlier and more accessible fiscal ecosystem, including easier insurance, will help energize this critical renewable energy generation category.”
