Union Budget 2024-25: India’s Economic Growth Shines Amid Global Uncertainties
Finance Minister Nirmala Sitharaman Presents Promising Budget
Despite global economic uncertainties, India’s economic growth remains a standout exception, poised to continue its positive trajectory. Minister of Finance and Corporate Affairs, Nirmala Sitharaman, highlighted this resilience while presenting the Union Budget 2024-25 in Parliament today. She noted that India’s inflation is low and stable, moving towards the 4 percent target, with core inflation (non-food, non-fuel) currently at 3.1 percent. Measures are being taken to ensure adequate market supply of perishable goods.
Focus on Key Demographics
As emphasized in the interim budget, the Finance Minister reiterated the focus on four major demographics: the poor (‘Garib’), women (‘Mahilayen’), youth (‘Yuva’), and farmers (‘Annadata’).
Budget Theme and Initiatives
Sitharaman outlined the budget’s theme, emphasizing employment, skilling, MSMEs, and the middle class. She announced the Prime Minister’s package of five schemes and initiatives aimed at facilitating employment and skilling opportunities for 4.1 crore youth over five years, with a central outlay of ₹2 lakh crore. This year, ₹1.48 lakh crore has been allocated for education, employment, and skilling.
Budget Priorities for ‘Viksit Bharat’
To achieve the vision of ‘Viksit Bharat’ (Developed India), the budget focuses on nine key priorities:
- Productivity and Resilience in Agriculture
- Employment & Skilling
- Inclusive Human Resource Development and Social Justice
- Manufacturing & Services
- Urban Development
- Energy Security
- Infrastructure
- Innovation, Research & Development
- Next Generation Reforms
These priorities aim to generate ample opportunities for all, driving India towards sustained growth and development.
Mercedes-Benz India CEO Hails Infrastructure Focus
Santosh Iyer, MD & CEO of Mercedes-Benz India, praised the Union Budget 2024-25 for its strong emphasis on infrastructure development, allocating 3.4% of GDP to capital expenditure on infrastructure projects. Iyer expressed optimism about the government’s priorities, though he noted the absence of a long-term GST reduction for BEVs. He highlighted the development of a climate finance taxonomy as a positive step towards climate adaptation and mitigation, crucial for achieving climate commitments.
Rajeev Chaba, CEO Emeritus of JSW MG Motor India, Applauds Budget’s Support for EV Industry
“During the Union Budget 2024, the Honourable Finance Minister’s decision to waive import duties on critical minerals such as lithium, copper, and cobalt is a significant step forward for the electric vehicle (EV) industry,” said Rajeev Chaba, CEO Emeritus of JSW MG Motor India Pvt. Ltd. “This policy will lower battery manufacturing costs, making EVs more affordable and attractive to consumers. It will also boost lithium-ion battery production in India, supporting localization efforts and propelling the sector’s growth.”
Chaba added, “The government’s initiatives for job creation and investment in industrial training centres are crucial for ensuring a skilled workforce in the automotive sector. While the budget lays a strong foundation for overall economic growth, we anticipate continued government support and incentives to accelerate green mobility and promote sustainable practices.”
JCB India CEO Applauds Employment and Skilling Initiatives
Deepak Shetty, CEO & MD of JCB India, welcomed the budget’s focus on employment, skilling, and manufacturing, particularly for the middle class. He highlighted the government’s plan to skill over 20 lakh youth in five years and upgrade 1,000 Industrial Training Institutes. Shetty also appreciated the continued emphasis on infrastructure, with a significant provision for rural road connectivity through PMGSY Phase 4 and the PM Awas Yojna 2.0, expected to uplift the rural economy and improve lives.
FADA President Foresees Boost in Auto Retail
Manish Raj Singhania, President of FADA, saw the budget as a blend of optimism and challenges for the auto retail sector. He emphasized the potential increase in rural auto sales due to enhanced Minimum Support Prices for crops and improved rural connectivity. The budget’s focus on employment, skilling, and MSMEs was seen as a boost for consumer spending power, while significant infrastructure investments would facilitate better logistics and enhance the consumer experience. However, he stressed the importance of effective policy implementation and support for green mobility.
Pravaig CEO Critiques Economic Exploitation
Siddhartha Bagri, Founder & CEO of Pravaig, offered a critical perspective, viewing the budget as another step towards exploiting the Indian market without significant returns. He emphasized the need for India to control its economic borders against global monopolistic technocracies, highlighting historical mistakes of economic invasion.
Omega Seiki Founder Applauds EV Sector Boost
Uday Narang, Founder and Chairman of Omega Seiki Pvt. Ltd., commended the budget for exempting import duties on critical minerals for battery manufacturing, aligning with Omega Seiki Mobility’s mission for sustainable transportation. He praised the investment in skill development and initiatives for women-led development, foreseeing a greener and more inclusive future for the automotive sector.
Fleetguard Filters MD Welcomes Balanced Growth Approach
Niranjan Kirloskar, Managing Director of Fleetguard Filters Private Limited, appreciated the budget’s alignment with the government’s vision of “Viksit Bharat.” He highlighted the focus on skilling, employment, manufacturing, and infrastructure development. Kirloskar also noted the introduction of climate finance to encourage greener businesses and attract FDI, seeing it as a balance between economic growth and sustainability.
Pinnacle Industries Founder Celebrates Support for MSMEs
Dr. Sudhir Mehta, Founder and Chairman of EKA Mobility and Pinnacle Industries, saw the budget as a milestone towards a $5 trillion economy. He praised the credit guarantee scheme for MSMEs and the abolition of the ‘Angel Tax,’ expecting substantial relief for startups. Mehta highlighted the budget’s support for agriculture and rural development, reflecting a forward-thinking strategy for sustainability and productivity.
GreenCell Mobility CEO Optimistic About Sustainable Development
Devndra Chawla, MD & CEO of GreenCell Mobility, applauded the budget’s steps towards infrastructure development and sustainable transportation. He emphasized the positive impact of industrial parks and road infrastructure projects on economic growth and quality of life. Chawla also appreciated the creation of a climate finance taxonomy and initiatives to transform tourist hubs, expecting a boost in tourism and green mobility solutions.
BLive CEO Excited for EV Sector Growth
Samarth Kholkar, CEO & Co-Founder of BLive, expressed optimism about the budget’s impact on the EV and logistics sectors. He highlighted the waiver of import duties on critical minerals and significant road connectivity projects. Kholkar welcomed the abolishing of angel tax on investors and called for further reductions in GST on EV components to increase adoption. He urged for expanded charging infrastructure to eliminate range anxiety, envisioning a greener future for logistics.
In summary, industry leaders have reacted with a mix of enthusiasm and caution to the Union Budget 2024-25, acknowledging its potential to drive growth and sustainability while stressing the importance of effective implementation and continued support.
Sameer Aggarwal, Founder & CEO of Revfin Service, Shares Optimism on Budget 2024
“The Union Finance Budget 2024 outlines a clear path for transforming India into a developed economy,” said Sameer Aggarwal, Founder & CEO of Revfin Service. “The focus on skill development, employment generation, and women’s empowerment will create a more inclusive workforce. With Rs 2 lakh crore allocated for education and skilling, and easier access to loans for higher studies, our youth will be better prepared for future challenges.”
He added, “Abolishing the Angel Tax boosts the startup ecosystem, and the Rs 3.5 lakh crore support for rural and agricultural sectors shows the government’s commitment to equitable development. Provisions for solar rooftop installations for one crore households align with climate change goals and promote sustainable growth. Additionally, waiving import duties on critical minerals like lithium will lower battery manufacturing costs, making EVs more affordable and supporting India’s green transition.”
Yokohama India Applauds Budget’s Emphasis on Infrastructure, Job Creation, and Skill Development
“We appreciate the Union Budget 2024 for its emphasis on infrastructure development, job creation, and skill enhancement in the manufacturing sector,” said Harinder Singh, Managing Director & CEO of Yokohama India. “The Finance Minister’s introduction of programs focused on skilling and providing employment opportunities for youth represents a significant step towards economic advancement.”
Singh highlighted the company’s enthusiasm for the budget’s focus on diversity hiring and incentives for job creation in manufacturing facilities. “These efforts resonate with our dedication to fostering a diverse and inclusive workplace, as demonstrated by our 1,000-strong female workforce across our four plants. The government’s backing of internships and skill development initiatives will equip young people and strengthen our industry, driving innovation and growth.”
He concluded, “This budget signals a strong vision for India’s manufacturing sector and aligns with our mutual objective of building a resilient and inclusive economy.”
Vikram Gulati, Country Head and Executive Vice President, Corporate Affairs and Governance at Toyota Kirloskar Motor, Praises the 2024 Budget
“The Union Budget 2024 is balanced, focusing on infrastructure and social sector investments while maintaining a fiscal deficit of 4.9%,” said Vikram Gulati. “Enhanced agricultural productivity and measures to improve women’s workforce participation will broaden economic growth benefits. The focus on MSMEs and manufacturing, along with energy transition and climate change initiatives, aligns with Toyota’s sustainability goals. Increased emphasis on education, skilling, and youth employment, complemented by the tax rationalization, will spur economic growth. At TKM, we are committed to ‘Grow in India, Grow with India,’ aligning with the nation’s priorities for a ‘Viksit Bharat.'”
Niranjan Nayak, MD of Delta Electronics India, Comments on the Vision for a Thriving ‘Viksit Bharat’
“The Union Budget 2024-25 presents a compelling vision for ‘Viksit Bharat.’ Delta is encouraged by the government’s focus on skilling, infrastructure, and digital transformation,” said Niranjan Nayak. “The emphasis on women’s participation, through hostels, creches, and skill programs, supports a more inclusive society. The budget’s alignment with Delta’s focus on emerging technologies and a knowledge-based economy will accelerate growth. We are eager to collaborate with stakeholders to shape a sustainable and inclusive future for India.”
