The Finance Minister, Nirmala Sitharaman, presented the Union Budget 2024-25 on the theme: poor, women, youth and the farmer. Business leaders from various sectors have shared their perspectives both in appreciation and food for thought for the announcements. The abolition of angel tax, a revised income tax structure and the announcement of Rs.1000 crore venture capital fund for the space economy including significant investments in education, energy, and technology sectors are some of the main takeaways from the Budget. Below are the reactions of key business industry leaders.

Reactions from the Real Estate Industry Leaders

Vinay Thadani, Director & CEO of Grew Energy Private Limited:

“The introduction of the PM Surya Ghar Yojana is encouraging, as it aims to add 1 crore more households by providing 300 units of free electricity every month. One positive aspect of this budget is the initiatives to provide financial support for MSMEs to shift to cleaner forms of energy, which will accelerate the growth of solar modules. We are confident that with adequate support  granted by  the central government , the state government would equally support the renewable energy sector  to take the nation towards Vikashit Bharat”.

Rishi Anand, MD and CEO, AHFL:

“The proposed Union Budget clearly showcases the government’s vision in making housing for all a success with PMAY 2.0. The government has further reiterated its priority on urban development through two major announcements – a) The investment of Rs. 10 lakh crore that will also include a central assistance of Rs. 2.2 lakh crore and b) Encouraging the state governments charging high stamp duties to lower their stamp duty rates for all and further lowering duties for properties purchased by women. I would also like to lay emphasis on the land centric initiatives that the government has taken such as the land record digitization and unique land parcel identification number in tier 2, 3 & 4”.

Venkatesh Gopalakrishnan, Director Group Promoter’s Office, MD & CEO - Shapoorji Pallonji Real Estate (SPRE):

“The introduction of the PM Awas Yojana-Urban 2.0 is a commendable step towards addressing the housing needs of 1 crore poor and middle-class families.

Additionally, the increase in the affordable housing deduction for interest paid on loans is a positive change that will provide much-needed relief to homebuyers and boost the real estate market.

 

However, the proposed 12.5percent tax rate on long-term gains for all financial and non-financial assets, coupled with the increased exemption limit of ₹1.25 lakh per year for specific financial assets, is expected to have a mixed impact on the real estate market”.

Reactions from Tech Industry Leaders

Warren Harris, CEO & MD, Tata Technologies:

“The proposed initiative to equip 20 lakh young people with relevant skills over the next five years is commendable and timely. The commitment to upgrading over 1,000 ITIs is a welcome step forward in recognizing the importance of vocational training and upskilling to address the skill gap. At Tata Technologies, we are keen to collaborate with the government to design and implement effective STEM-focused skill development programs”.

Anant Jain, Head of Customer Success - India, GfK:

“In the Union Budget 2024, the Finance Minister's focus on uplifting the poor, women, youth, and farmers reflects the government's commitment to 'Viksit Bharat' and is poised to benefit the tech sector. The proposed reduction in the Basic Customs Duty (BCD) on mobile phones, mobile PCDA (Printed Circuit Design Assembly), and mobile chargers to 15percent expected to make mobile devices and accessories more affordable, thereby boosting consumer demand and driving growth in the tech industry. Additionally, the increase in duty on printed circuit board assemblies (PCBA) for specific telecom equipment from 10percent to 15percent aims to encourage local manufacturing. Government’s prioritization on jobs, agriculture and energy sector will provide long term growth opportunities to tech & durables sector”.

The Education Sector

Usha Iyer, Principal and Managing Director, The Green School Bangalore:

“A notable highlight is the initiative offering internships at 500 top companies to 1 crore students over the next five years. In my opinion the introduction of initiatives such as the Prime Ministerial Package and internships at top companies for students, along with model skill loans, are steps in the right direction towards empowering the youth and preparing them for a competitive job market”.

The Oil and Energy Sector

Baroruchi Mishra, Group CEO, NET Enterprise:

“Focus on Water Management including solid waste management for large cities is particularly heartening”.

“Aspiration to involve the private sector in modular nuclear reactors for green energy is a positive step in energy transition”.

“Emphasis on Climate Finance is good; Banks and lending Financial institutions should not stall the noble intent of the government”.

Reactions from Healthcare Industry Leaders

Sanjay Vyas, Executive Vice President and Managing Director, Parexel:

“The healthcare sector has received a significant boost, with an allocation of ₹89,287 crore, marking a substantial increase from ₹79,221 crore in FY 2023-2024. The Union Budget also increased allocation for R&D, particularly through the Anusandhan National Research Fund. Furthermore, the government's push for digital infrastructure under the Jan Vishwas Bill will significantly enhance the operational efficiency of clinical trials. Moreover, the budget's emphasis on skill development and women's empowerment will contribute to a robust talent pipeline for the life sciences sector”.

Abrarali Dalal, Director & CEO, Sahyadri Hospitals Pvt Ltd:

“The government has allocated ₹89,287 crore for the development, maintenance, and improvement of the country’s healthcare system. The union budget's removal of basic customs duty on three critical cancer treatment drugs and the reduction of duties on medical technologies such as X-ray tubes and flat panel detectors will notably enhance the affordability and accessibility of healthcare, particularly for advanced cancer treatments. Through the 'Anusandhan National Research Fund' the increased research funding will foster innovation, development and improved treatment options in the healthcare sector”.