The Union Budget 2024–25 is a significant step towards realizing the vision of a Viksit Bharat.
Today, Hon. Finance Minister Nirmala Sitharaman unveiled her seventh consecutive budget, breaking the previous record held by former Prime Minister Morarji Desai, for the fiscal year 2024–25. The BJP-led NDA government is presenting its first budget since winning re-election in June.
It was declared by Ms. Sitharaman that the 2% equalization levy would be removed. She said during the budget presentation that the standard deduction for salaried workers will increase to ₹75,000 from ₹50,000 in FY25 due to the new income tax regime.
Productivity and Resilience in Agriculture, Employment and Skilling, Inclusive Human Resource Development and Social Justice, Manufacturing and Service, Urban Development, Energy Security, Infrastructure, Innovation, Research and Development, and Next Generation Reforms are the nine priorities for creating ample opportunities that were identified in the Union Budget 2024–25.
In regards to this, we would like to share the below industry quotes:
Mr. Winny Patro, CEO and Co-Founder, Recordent India: “What is encouraging for MSMEs from this budget is the credit assessment for availing loans, emphasizing a higher weightage for turnover and assets. This may lead to revisiting their prioritization of repayments, allowing MSMEs to give importance to clearing B2B dues. However, the problem of late payments is not going to be solely addressed by this. But there is some marginal respite for those looking forward to easing their working capital and cash flow issues. Also, the enhanced credit guarantee scheme for manufacturers is quite a welcome note for Atmanirbhar.”
Debashis Chatterjee, CEO and Managing Director, LTIMindtree: “The Union Budget 2024–25 is a significant step towards realizing the vision of a Viksit Bharat. The government’s comprehensive approach, encompassing skilling, infrastructure development, and digital transformation, is truly commendable. The budget’s emphasis on fostering a skilled workforce through initiatives such as the comprehensive internship program is particularly noteworthy. At LTIMindtree, we are deeply committed to nurturing talent and driving technological innovation. By equipping young talent with practical experience, these initiatives will fully empower them to make substantial contributions to the nation’s progress.
Moreover, the specific focus on enhancing women’s participation in the workforce through the establishment of working women’s hostels, creches, and women-specific skilling programs is a progressive step. These initiatives will not only empower women but also contribute significantly to the socio-economic development of the country.
We view this year’s budget as a catalyst for accelerating our growth trajectory and contributing to India’s digital transformation journey. Our focus on emerging technologies and domain expertise seamlessly aligns with the government’s vision to create a knowledge-based economy.
We are excited about the opportunities presented by the budget and are confident in our ability to play a central role in shaping a ‘Viksit Bharat’. We look forward to collaborating with the government, academia, industry, and other stakeholders to foster a sustainable and inclusive growth ecosystem.”
Venkatraman Narayanan, MD & CFO of Happiest Minds Technologies: “The Union Budget’s emphasis on employment, skilling, and digital infrastructure marks a transformative moment for the IT and ITES sectors. The allocation of Rs 1.48 lakh crore for these categories, coupled with the PM Package comprising five key schemes, underscores the government’s commitment to building and nurturing a skilled workforce, which is indispensable for our industry. The revised skill loan scheme and the comprehensive internship program will provide young talent with invaluable exposure and opportunities, creating a pipeline of skilled professionals.
A noteworthy highlight is the focus on enhancing women’s participation in the workforce through the establishment of working women’s hostels, creches, and women-specific skilling programs. These initiatives will empower women, enabling them to contribute significantly to the socio-economic development of the country. Ensuring that women have the support and opportunities they need to thrive in their careers is essential for building an inclusive and prosperous society.
The focus on digital public infrastructure and innovation by the private sector is a welcome move, poised to enhance productivity and create new business opportunities. The allocation of over Rs 11 lakh crore for infrastructure development, along with supporting policies to promote private investment, will significantly bolster the growth of both digital and physical infrastructure, driving holistic economic progress.
Furthermore, the establishment of the Anusandhan National Research Fund and incentives for R&D will accelerate technological advancements, fostering a culture of innovation. The reduction in corporate tax rates further enhances the competitiveness of Indian companies on the global stage.
Overall, the budget’s comprehensive approach to skilling, infrastructure, and innovation lays a strong foundation for sustained growth in the IT and ITES sectors, aligning with Happiest Minds Technologies’ vision of leveraging technology for transformative outcomes. This budget is a significant step towards realizing the vision of ‘Viksit Bharat’—a developed India—by empowering our youth, fostering innovation, and building world-class infrastructure.”
Abhishek Sinha, Co-Founder, HealSpan: A highly forward-looking Union Budget 2024 emphasizes employment generation, urban and rural sanitation, and infrastructure development. The manufacturing sector, particularly through SMB players, has received a significant boost from this budget. The revised mining policy on rare earth metals will have a dual impact on the renewable energy sector and electronics manufacturing in the country. We extend our gratitude to the finance minister for further simplifying income tax and abolishing the Angel Tax.
Sachin Panicker, Chief AI Officer, Fulcrum Digital: “We are pleased with the Union Budget 2024’s focus on digitalization and data governance. The substantial investment in digital infrastructure and encouraging private sector involvement present exciting opportunities. At Fulcrum Digital, we are committed to leveraging our expertise in AI and emerging technologies to support these initiatives.
The emphasis on improving data collection, processing, and governance aligns perfectly with our commitment to helping businesses make more informed decisions. Our work across various industries, including financial services, insurance, and education, positions us well to contribute to these efforts. By utilizing sectoral databases under the Digital India mission, we aim to enhance access to resources and services for everyone.
We also applaud the government’s initiative to set up working women’s hostels and the allocation of over Rs 3 lakh crore for schemes benefiting women and girls. This is a notable step towards promoting gender diversity and inclusion, as these efforts are crucial in creating a more diverse industry.
The budget’s focus on easing business operations and incentivizing states for business reforms is a welcome move. We look forward to playing a part in driving innovation and efficiency, helping India move towards a more digital and data-driven future.”
Sunil Sharma, Vice President-Sales, Sophos India & SAARC: “One of the biggest challenges that organizations face from a cybersecurity perspective is the skilling of resources. It is reassuring to see the government’s commitment to developing a skilled workforce with a provision of Rs 1.48 lakh crore for education, employment, and skilling. With this, we are confident that we will be able to create a pool of talented resources that can address India’s growing cybersecurity challenges.
At the same time, the Union Budget 2024 emphasized stepping up the adoption of technology towards the digitalization of the economy. Having the right talent to be able to support this vision will be critical to enabling the government to achieve its goal of ViksitBharat @2047.
Additionally, the government has also taken a positive step towards increasing the presence of women in the workforce. Through their various initiatives, we are hopeful of seeing a reimagined industry, one driven by diversity and inclusion.”
Mr. Piyush Jalan, co-founder and COO of G0VO: “We sincerely appreciate the government for introducing measures that greatly bolster the electronics manufacturing sector. The reduction in import duties on key components will enhance our ability to produce high-quality audio devices more cost-effectively, empowering us to provide more affordable options for consumers.
The government’s commitment to supporting MSMEs and the manufacturing sector is remarkable. The new credit guarantee scheme for machinery purchases, increased Mudra loan limits, and the introduction of e-commerce export hubs will empower companies like ours to expand operations and compete on a global scale. These initiatives reflect a clear vision for fostering innovation and strengthening India’s position in the electronics sector.
Moreover, we are enthusiastic about the emphasis on skill development and job creation within manufacturing. The centrally sponsored scheme to skill 20 lakh youth and the incentives for hiring first-time workers will contribute to building a robust and skilled workforce. This comprehensive approach is poised to drive growth and technological advancement in our industry, steering us towards a more competitive future.”
Vishak Raman, VP of Sales, India, SAARC, SEA & ANZ at Fortinet: “The Union Budget 2024 is a push towards a holistic growth of India’s macroeconomics from the grassroot level. The key focus on productivity and resilience in agriculture will indirectly open up rural and non-metro markets with increased spending and consumption.
Investment in skilling 20 lakh youth over five years will bridge the skill gap that digital transformation has created across industries. Fortinet has also pledged to reduce the skill gap in cybersecurity and is offering free certifications to students in India.
Incentives for the MSME, manufacturing, and energy sectors will see increased digitalization with the growth of Industry 4.0 and smart manufacturing. Fortinet aligns with this vision by providing advanced cybersecurity solutions that protect critical infrastructures and rugged OT environments.
Overall, the budget’s focus on youth, women, and farmers is a significant step towards ‘Viksit Bharat’.”
Puneet Gupta, Vice President & Managing Director, NetApp India/SAARC: “The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, highlights digital infrastructure as a key driver of economic development. The substantial allocation of over 11 lakh crore rupees for infrastructure development and the support for private sector investments signal a strong commitment to advancing India’s digital capabilities. NetApp’s objective of advancing intelligent data infrastructure closely aligns with this focus on digital infrastructure.
At NetApp, we recognise that effective digital infrastructure is essential for enhancing productivity, creating business opportunities, and fostering innovation. The budget’s emphasis on improving data governance, including better data collection, processing, and management through sectoral databases and technology tools, supports our goals. By utilizing AI and observability, we are committed to advancing these initiatives and improving data management, cyber resilience, and data governance. Additionally, the government’s significant provision of Rs 1.48 lakh crore for education, employment, and skilling will be instrumental in developing a workforce equipped to harness these advancements effectively.
The government’s focus on promoting women’s participation in the workforce through the establishment of working women hostels and the allocation of over Rs 3 lakh crore for schemes benefiting women and girls is commendable. These initiatives will enhance diversity and inclusivity in the tech sector, fostering a more balanced and innovative workforce that drives industry growth and progress.”
Lakshmi Mittra, SVP and Head of Clover Academy: “The Union Budget 2024’s focus on upskilling and education is a crucial step towards empowering youth and preparing them for the ever-changing demands of the tech industry. The allocation of Rs 2 lakh crore to five key schemes aims to create jobs and provide skill development opportunities to 41 million young people over the next five years. This strategic investment will bridge the gap between current skills and industry needs, equipping our young population for future challenges.
In addition, the initiatives to increase women’s participation in the workforce are significant strides toward gender diversity. These include the establishment of working women’s hostels in partnership with industry, the setup of creches, women-specific skilling programs, and the promotion of market access for women-led self-help group enterprises. With over Rs 3 lakh crore allocated for women’s initiatives, the government is fostering an environment where women can thrive and make substantial contributions to the tech industry.”
Joseph Sudheer Reddy Thumma, MD & CEO, Magellanic Cloud: “The Union Budget 2024 marks a significant step forward in shaping India’s future, and at Magellanic Cloud, we are truly inspired by the bold measures outlined to drive innovation, create jobs, and strengthen infrastructure.
The proposed schemes to incentivize hiring first-time employees and the introduction of a new credit guarantee scheme for MSMEs are steps in the right direction. These initiatives will not only bolster the manufacturing sector but also enable MSMEs to thrive without the constraints of collateral, thereby fueling innovation and job creation.
The increase in Basic Customs Duty (BCD) on telecom equipment, particularly PCBA, presents a challenge for the drone manufacturing industry. However, this shift underscores the need for us to intensify our focus on local sourcing and innovation to mitigate cost impacts and ensure sustainable growth.
Additionally, the ₹11 lakh crore allocation for infrastructure development and investment-ready industrial parks will enhance our operational efficiencies and capabilities. The support for R&D through the Anusandhan National Research Fund further aligns with our commitment to innovation and growth.
Moreover, the allocation for employment and skilling under the PM Package and the comprehensive internship scheme will nurture the next generation of talent, which is vital for sustaining our industry’s growth.
As we navigate these changes, Magellanic Cloud remains committed to leveraging these opportunities to drive excellence and contribute to India’s technological and economic advancement. In alignment with the vision of a “Viksit Bharat,” we are dedicated to playing our part in building a developed and prosperous India.”
Amit Chadha, CEO and Managing Director, LTTS: We welcome the Union Budget FY25 announcement by Finance Minister Nirmala Sitharaman, which presents a holistic approach to boosting employment, skilling, and infrastructure development. The allocation of ₹2 lakh crore towards employment and skilling schemes, coupled with groundbreaking initiatives for women empowerment and an ambitious internship program, will create a robust talent pipeline vital for the industry.
The reduction in corporate tax rates, alongside the substantial ₹11 lakh crore allocation for capital expenditure, reflects a favourable pro-business environment that will drive innovation and attract investments. As an ER&D services company, we are particularly excited about the focus on digital public infrastructure and the establishment of the Anusandhan National Research Fund. These initiatives will foster a culture of innovation and elevate India’s position in the global R&D landscape.
Additionally, the development of investment-ready industrial parks promises to create new opportunities for technological advancements. I am confident that these measures will significantly contribute to India’s journey towards becoming Viksit Bharat.
Mr. Sachin Sharma, Founder and Director, GEM Enviro Management Limited, for Waste Management and Recycling Sector: “The recent budget marks a significant advancement in the waste management sector, particularly in tackling e-waste and plastic waste. By emphasizing the recycling of critical minerals, the budget aims to reduce our reliance on imports. Key initiatives include technological upgrades, workforce development, and the establishment of an extended producer responsibility framework with appropriate financing. However, building a robust supply chain and fostering effective connections between recyclers, manufacturers, and waste producers remains crucial. The budget’s focus on sustainable growth and the promotion of a circular economy highlights a strong commitment to long-term environmental stewardship and resource efficiency.”
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