The business community has responded positively to the interim budget presented by Finance Minister Nirmala Sitharaman on Thursday, February 1, 2024. Key industrialists have expressed satisfaction with the government’s approach towards fiscal discipline and inclusive growth.
Hero MotoCorp’s Pawan Munjal praises holistic development approach:
Hero MotoCorp’s Executive Chairman, Pawan Munjal, lauded the interim budget’s emphasis on ‘Garib Kalyan, Nari Shakti, Yuva, and Annadata.’ Munjal expressed satisfaction with the government’s commitment to holistic development and fiscal discipline, terming it a decisive stride towards realising the vision of making India ‘Viksit Bharat.’
“The emphasis on ‘Garib Kalyan, Nari Shakti, Yuva (youth empowerment), and Annadata (empowerment of farmers),’ prioritising their needs and aspirations, reflects a commitment to the holistic development of all, aligning with the government’s vision of ‘Sabka Saath Sabka Vikas.’ Upholding fiscal discipline has consistently been the hallmark of this government, and this budget reaffirms that commitment. Through these measures, the interim budget takes a decisive stride towards realising the vision of making India ‘Viksit Bharat.’”
ZEE Entertainment’s Punit Goenka optimistic about entrepreneurial spirit:
Punit Goenka, MD & CEO of ZEE Entertainment Enterprises Ltd., commended the government’s efforts to boost India’s economy through structured policy reforms. He particularly highlighted the focus on empowering the youth and fostering innovation in technology, stating that it creates a golden era for sunrise sectors like media and entertainment.
“The Government’s efforts to boost India’s economy through structured policy reforms will accelerate the development of our Nation over the next few years. The steps taken by the Finance Minister to empower the youth by fueling the entrepreneurial spirit and fostering innovation in technology through initiatives like the 1 lakh crore research corpus, create a golden era for sunrise sectors such as media & entertainment. The combination of youth and technology certainly holds immense potential and can lead to exciting new opportunities for content distribution and monetisation, boosting the growth of the M&E sector at large,” Goenka said.
Price Waterhouse & Co. LLP’s Akhilesh Ranjan hails aspirational nation:
Former member of CBDT, Akhilesh Ranjan, described the budget as a resounding statement from “a confident and aspirational nation.” He noted the absence of new tax measures and highlighted the encouraging figures in personal income tax collections, indicating a robust and compliance-based tax system.
“In keeping with convention, no new tax measures have been announced, even as the tax collection figures present a very encouraging picture. In particular, the substantial increase in personal income tax collections (the RE for FY24 being about 13% higher than the BE, and the BE for FY25 pitched at an even higher increase of about 28% over that of FY24) is notable and indicates a robust and increasingly compliance-based tax system, generating a direct tax to GDP ratio of well over 6%,” he said.
L&T Finance Holdings lauds fiscally prudent budget:
Sudipta Roy, Managing Director & CEO of L&T Finance Holdings Ltd., praised the government for presenting a fiscally prudent budget, creating conducive conditions for the private capex cycle revival. He emphasised that the budget would improve international investors’ perception of India’s macro-financial stability.
“A strong push given to rural housing and agri-allied activities augurs very well for the business model of retail-oriented NBFCs. Today’s Budget will improve the international investors’ perception about India’s macro-financial stability and strengthen India’s position as one of the best investment destinations in the global space,” Roy said.
Hitachi Energy applauds progressive outlook for the economy:
N Venu, MD & CEO of Hitachi Energy, applauded the Finance Minister’s progressive outlook for the entire economy. He highlighted the strategic investments, regulatory support to SMEs, and the establishment of economic rail corridors, terming them as measures contributing to sustainable, inclusive growth across sectors.
“Starting from fiscal consolidation by aiming to reduce the deficit and better tax collection, along with strategic futuristic investment lays the foundation strong economic growth for the new financial year. To boost India’s role in today’s redefined globalised world, the budget deploys a 360-degree method – regulatory, financial & advisory support to SMEs, long-term financing at close to zero interest for private sector R&D and innovation in sunrise sectors and establishment of the three economic rail corridors (energy, cement & mines; ports and high traffic density) under the PM Gati Shakti program. The last will not only improve logistics efficiency but also contribute to reducing overall transportation costs.”
“We commend the government’s steadfast commitment to environmental sustainability and the ambitious goal of achieving ‘Net Zero’ by 2070. The focus on supporting offshore wind energy through viability gap funding and developing coal gasification and liquefaction capacity demonstrates a proactive approach to diversifying our energy sources. Furthermore, rooftop solar that taps into our populace and payment security mechanisms to incentivise city and state transport to adopt EV buses will help create a robust, sustainable renewable ecosystem.”
Tata Steel’s Narendran Welcomes Increased Infrastructure Expenditure:
T.V. Narendran, CEO & MD of Tata Steel, welcomed the announcement to increase capital expenditure on infrastructure. He noted the positive impact on steel demand, job creation, and improved connectivity, especially with the development of economic railway corridors under the PM Gati Shakti Yojana.
“The announcement by the Finance Minister today to increase the capital expenditure on infrastructure is a welcome step, which would have a multiplier effect on the nation’s overall economy. The continued expansion of rural housing along with the proposal to develop three economic railway corridors under the PM Gati Shakti Yojana are other significant moves that will spur steel demand, create jobs, and improve connectivity & logistics. It is heartening to see the government’s emphasis on every region contributing to a ‘Viksit Bharat’ which is underscored by a special focus on the eastern part of the country. The financial support envisaged to promote research and innovation is an encouraging initiative which will help nurture the aspirations of our youth.”
Bandhan Bank’s Chandra Shekhar Ghosh focuses on inclusive development:
Chandra Shekhar Ghosh, MD and CEO of Bandhan Bank, praised the budget for its extensive focus on inclusive development. He highlighted the benefits to peripheral sectors like cement, paints, and steel, as well as the emphasis on women empowerment, infrastructure, and rural development.
“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 the 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.”
PNB Housing Finance lauds forward-looking budget:
Girish Kousgi, MD & CEO of PNB Housing Finance, commended the Finance Minister for presenting a forward-looking budget aligned with the ‘Housing for All’ mission. He expressed optimism that the increased focus on inclusive growth and affordable housing would significantly contribute to the growth of the housing finance sector.
“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— 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.”
Shriram Finance anticipates significant advantages:
Umesh Revankar, Executive Vice Chairman of Shriram Finance, anticipated significant advantages from the budget’s focus on tourism, agri-based industry, infrastructure, research, and innovation. He praised the announcements for fostering sustainable, inclusive growth and driving economic growth through the identified economic railway corridors.
“The interim budget aptly focuses on tourism, agri-based industry, infrastructure, research and innovation, and skilling. It encompasses both social and geographical dimensions and will pave the way for sustainable, inclusive growth. We anticipate that the announcements will yield significant advantages in the near future. The identification of three major economic railway corridors under PM Gati Shakti underscores policymakers’ focus on enhancing logistics efficiency, fostering crucial multi-modal connectivity essential for the success of ‘Make in India.’ These corridors will drive economic growth and streamline transportation networks. The announcement of the creation of a corpus of ₹1 lakh crore, coupled with 50-year interest-free loans for research and innovation in sunrise domains will accelerate the country’s digitalisation journey, positioning it as a leader among global digital economies and fostering opportunities for emerging entrepreneurs. The policy emphasis on providing training to MSMEs to enable them to compete globally is a promising step. With a capex target of ₹11.1 lakh crore for FY25, up by 11.1%, the budget reaffirms the government’s steadfast commitment to economic growth. Further, the focus on the EV ecosystem, in the form of support for manufacturing and charging infrastructure, is set to catalyse business opportunities and significantly contribute to employment generation.”
Poonawalla Fincorp sees a decisive step towards economic sustainability:
Abhay Bhutada, Managing Director of Poonawalla Fincorp, called the interim budget a decisive step towards India’s economic sustainability. He commended the fiscal responsibility reflected in the 5.8% GDP fiscal deficit and anticipated progressive policies supporting fintech, digital lending, and digital skills.
“The 2024 Interim Budget is a decisive step towards India’s economic sustainability, in line with the ‘Viksit Bharat by 2047’ vision. The fiscal responsibility reflected in the 5.8% GDP fiscal deficit is commendable. The ‘First Develop India’ focus promotes FDI, aligning with our global collaboration goals. I anticipate progressive policies supporting fintech, digital lending, and digital skills.”
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