Finance Minister Nirmala Sitharaman presented her seventh Union Budget for 2024-25, marking the first comprehensive budget of the NDA government in its third consecutive term under Prime Minister Narendra Modi. Focused on the themes of supporting the poor, women, youth, and farmers, the budget introduced significant reforms and garnered varied responses from industry leaders.
One of the standout announcements was the abolition of the angel tax for all investor classes, addressing a major concern for the venture capital (VC) and private equity (PE) ecosystem. This move is expected to alleviate pressure on early-stage startups and investors, fostering a more conducive environment for innovation and growth. Additionally, the Finance Minister unveiled a revised income tax structure in the new regime, alongside an increase in the long-term capital gains tax.
The government also set a lower fiscal deficit target for FY25 at 4.9% of GDP, down from the 5.1% target announced in the interim budget in February. This adjustment reflects the government’s commitment to fiscal prudence and economic stability.
The industry response to the budget has been broadly positive, with corporate leaders expressing optimism about the potential impacts of the proposed measures. The abolition of the angel tax, in particular, has been hailed as a progressive step that will encourage investment in the startup ecosystem.
Here are some key reactions from corporate leaders:
Mr. Amit Khatri, Co-Founder, Noise
“The Union Budget 2024 presented by Finance Minister Nirmala Sitharaman is a visionary step towards inclusive growth, with a strong emphasis on manufacturing, upskilling, and women empowerment. Youth and participation of women in the workforce hold the key to India’s success. To this end, the focus on extensive training and skill development initiatives demonstrates a clear commitment to boosting employability and productivity. By linking job creation in manufacturing to first-time workers and offering EPFO incentives, the government is paving the way for a robust manufacturing ecosystem, creating 4 crore jobs over the next five years. It is certainly a commendable initiative to boost local manufacturing. Additionally, offering internship opportunities in the top 500 companies to 1 crore youth is a strategic move that will equip our young population with the skills and experience necessary to thrive in a competitive global economy.
The establishment of e-commerce export hubs in a PPP model is another significant step taken by the government and will significantly empower MSMEs and traditional artisans to compete internationally. It will open opportunities for Indian players to boost their reach globally while enhancing the ease of doing business and accessing new markets. India has long been an attractive consumer market for international brands, supported by our collaborative and business-friendly policies that enable seamless operations. The export hubs are an efficient step in unlocking similar avenues for homegrown companies, allowing a global stage for their innovation and entrepreneurial mindset, and strengthening India’s position in manufacturing.
Lastly, I feel the abolition of the angel tax will undoubtedly boost funding in the startup ecosystem, fueling innovation and growth. This move, along with incentives for job creation in the manufacturing sector and support for MSMEs, will not only stimulate valuable employment opportunities for millions of young people but also ensure economic resilience, laying a strong foundation for a powerful growth trajectory for India. Driven by the vision of Viksit Bharat, we look forward to actively participating in the nation’s journey towards global prominence and innovation leadership.”
Gururaj, Managing Director, Optiemus Electronics Ltd., said, “We welcome the initiatives announced in the Union Budget. The significant emphasis on manufacturing is heart warming and much needed for the growth of the economy. With the substantial expansion of the electronics manufacturing industry, the demand for a skilled workforce has become paramount. The announcement of various skilling initiatives and the scheme to incentivize additional employment in the manufacturing sector, particularly for first-time employees, will provide essential support to industries reliant on skilled workforce, especially in electronics. Furthermore, the proposal to reduce the Basic Customs Duty on mobile phones, mobile PCBA, and mobile chargers to 15% is a positive step. The measures laid out to support the MSME industries in particularly welcome to create a much needed supplier base for electronics within India. These measures collectively send out a strong message on the manufacturing sector and related eco system in India.“
Mr. Avneet Singh Marwah, CEO, Super Plastronics Pvt Ltd, a Kodak brand Licensee
“I commend the forward-looking measures introduced in Union Budget 2024, especially the revised tax structure and increased standard deduction, aimed at boosting consumer spending and nurturing economic growth. The allocation of an additional 3 crore houses under PM Awas Yojana will provide a significant boost to the market for large consumer durables. The proactive efforts of the government to enhance ease of doing business in the manufacturing sector are evident and commendable. The introduction of new employment incentives across manufacturing and other sectors will not only spur workforce expansion but also bolster the Make in India initiative, complementing existing PLI schemes. However, there was an expectation within the industry for more aggressive measures aimed at increasing disposable income to further stimulate consumer spending.”Please let me know if you need any additional information.”
itel India: Embracing Affordability and Innovation
Mr. Arijeet Talapatra, CEO, itel India has said: “We commend the government on the Union Budget and are encouraged by the strong backing for the mobile technology sector. The Indian mobile phone industry has seen a remarkable transformation with a threefold increase in domestic production and a hundredfold surge in exports over the past few years. This clearly indicates how the mobile industry in India has matured throughout the years and the reduction to 15% in BCD is a step in the right direction.
A reduction in the Basic Customs Duty (BCD) mobile PCBAs to 15% will not only enhance affordability for our consumers but also drive innovation within the sector. This reduction will bolster the competitiveness of our industry on a global scale, enabling us to deliver cutting-edge technology at more accessible price points. It is imperative that we create a conducive environment for the technological sector to thrive, ensuring that India remains at the forefront of the digital revolution. This move will attract further investments, spur local manufacturing, and ultimately contribute to the economic prosperity of our nation.”
BenQ India: Empowering Education Through Technology
Mr. Rajeev Singh, Managing Director, BenQ India and South Asia mentions “The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, has adopted a strategic approach for fostering economic growth while bolstering India’s technology landscape. The planned upgrade of 1,000 Industrial Training Institutes (ITIs) through a hub-and-spoke model, along with the alignment of course content to industry needs, reflects a proactive strategy to address the skills gap in the workforce and prepare students for the evolving job market. Such an emphasis on skill development and education bodes well for not only the emerging workforce but also interactive technology companies.
For display and interactive tech companies which provide interactive flat panels and other technological solutions for educational institutions, this budget presents significant opportunities. The focus on upgrading ITIs and enhancing skill development aligns with the mission to support educational advancements through technology. By integrating interactive learning tools into these upgraded institutions, tech companies can contribute to creating an engaging and effective learning environment that fosters skill acquisition and prepares students for future challenges. This alignment between government initiatives and private sector capabilities is crucial for driving educational transformation in India.”
Amazfit: Boosting MSMEs and Manufacturing
CP Khandelwal, Joint Managing Director – HTech, CEO – PR innovations & PSAV Global – Establishing Amazfit and HONOR in India.: “We congratulate the government on the Union Budget and are heartened to see the robust support for MSMEs and manufacturing sector. The credit guarantee scheme for MSMEs in the manufacturing sector, with coverage up to Rs 100 crore, is a game-changer. This initiative will spur innovation and growth, providing critical support to homegrown enterprises and elevating India’s position in the global manufacturing landscape.
The government’s decision to reduce the Basic Customs Duty on mobile phones, PCBs, and chargers to 15% marks a pivotal moment for our technology sector. This strategic move recognizes the significant maturation of the Indian mobile industry in recent years and is set to attract global value chains to our shores, enabling large-scale manufacturing operations.
These measures collectively ensure a more resilient and innovative ecosystem, benefiting both the industry and consumers. This budget has not only addressed current challenges but also lays the groundwork for a prosperous and self-reliant India in the years to come.”
Mr. Rajesh Doshi, Co-founder & Director at Zebronics
“The Union Budget 2024-25, announced by Finance Minister Nirmala Sitharaman, presents a robust vision for various sectors’ enhancement. The new tax regime reforms benefit law-abiding taxpayers. Job creation schemes are proposed across segments, particularly manufacturing, to drive “Vikasit Bharat.” Support for MSMEs and manufacturing includes long-term loans for machinery, credit guarantees, and establishing electronic manufacturing clusters, enhancing global competitiveness. Skill development initiatives introduce new courses, revise loans, and develop National Industrial Corridors to connect top companies with CSR funds, aiming to benefit over 1 crore youth in the next five years. The reduction of Basic Customs Duty on mobiles and accessories and PCDA is a strategic move to support these industries. Overall, steps to ease trade, reform manufacturing, and support the start-up ecosystem are vital. Reforms in solar, energy, agriculture, and education are crucial for holistic national development. Notably, the commitment to enhance the inclusion of more women in the workforce by formulation of skill development programs and encouragement of more women entrepreneurs reflects the virtue of them being amongst the decision makers in the future.”
Kannav Thukral, Managing Director, BlackZone Mobiles
Finance Minister Nirmala Sitharaman’s budget is a game changer for the mobile industry and the MSME segment under the ‘Made in India’ initiative. The reduction of Basic Customs Duty (BCD) on mobile phones and chargers to 15% is a significant step that will lower production costs, making Indian-made mobile devices more competitive. This move will enable the industry to reach a broader audience, and the reduced taxes will lead to higher profits and increased production. Additionally, the enhanced credit guarantee scheme and the facilitation of term loans for machinery purchases are set to invigorate the manufacturing sector. The tailored package for technology support and the new bank credit mechanism will significantly enhance digital capabilities and financial stability for new businesses and investments. By unlocking working capital and expanding the Mudra loan to 20 lakh, the government is empowering manufacturers to scale up operations without the burden of collateral. These measures will not only drive growth but also reinforce India’s position as a global manufacturing hub for mobile devices.”
Mr. Su Piow Ko, CEO of AET Displays
“The Union Budget 2024-25 marks a significant leap forward for the manufacturing sector, especially with its targeted support for MSME clusters. The introduction of easy financing options, credit guarantee schemes, and collateral-free term loans for machinery and equipment will substantially enhance the network of manufacturers and suppliers, acting as a catalyst for growth and innovation across the supply chain. Furthermore, the budget’s focus on boosting employment in the manufacturing sector addresses a critical challenge, fostering a more dynamic and robust workforce. Additionally, the proposed reduction of basic customs duty (BCD) on mobile phones, mobile PCBA, and mobile chargers to 15% is a welcome move, aimed at making electronics more accessible and competitive. The removal of BCD on oxygen-free copper for resistor manufacturing and the exemption of certain parts for connectors will further bolster domestic value addition in the electronics industry. These measures align perfectly with our goals at AET Displays, reinforcing our confidence in the government’s commitment to advancing the electronics sector and driving sustainable industry growth.”
Mr. Chakravarthi C. – Managing Director – Quantum Energy
The biggest challenge in the country in regard to the EV sector is the network of manufacturers and suppliers. Now to pick up on developing something new one needs capital and skill. The Budget has covered these two points for us graciously. With the credit guarantee schemes for MSMEs in manufacturing and an additional investment in industrial training centres we can expect to address the concerns. said Mr. Chakravarthi C. – Managing Director – Quantum Energy.
By Deepak Chand Thakur, Co-founder and CEO of NPST Ltd
We welcome the Union Budget. Although it does not contain direct policy mandates for the Fintech segment, there are several positives that we would like to highlight:
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- Income Tax Relief and Increased Discretionary Income: The relief in income tax is expected to boost consumer spending, which in turn will drive more digital transactions.
- 5G Market Growth and Smartphone Penetration: In a rapidly growing 5G market, improved smartphone penetration is essential for broadening payments. The Budget’s focus on reducing the cost of imported components and finished products, potentially leading to lower retail prices for mobile phones and accessories, will benefit the fintech sector by expanding the base of smartphone users and enhancing access to digital payment platforms.
- Reduction in E-commerce TDS: The reduction in e-commerce TDS from 1% to 0.1% will encourage more merchants to embrace digital payments. This policy change will lower the compliance burden on merchants, making it easier for them to participate in the digital economy, thus driving further adoption of digital payment systems.
- E-commerce Hubs and Public-Private Partnerships: The establishment of dedicated e-commerce hubs through public-private partnerships presents an exciting opportunity for innovation in cross-border B2B trade payments, potentially using UPI rails.
- Expansion of IPPB Branches in the Northeast: The opening of 100 IPPB branches in the Northeast also opens opportunities for other payment companies and fintechs to expand their services to new regions, tapping into a market with significant growth potential.
Mr. Mukesh Taneja, CEO and CO-Founder, A leading EV- Two Wheeler Manufacturer
“It’s great to see how the Government thought of helping the MSMEs with funds requirements by announcing the credit guarantee schemes for MSMEs in manufacturing. Also to address the other problems of manufacturers of getting the skilled workforce investments in 1,000 industrial training centers aimed at skill development. However, the 2024-25 Budget could have also included the anticipated increased budgetary allocation for expanding EV charging infrastructure nationwide, as this remains a key factor in boosting consumer confidence in electric mobility. While the budget sets a positive foundation for growth, we believe there is room for further action to accelerate EV adoption and position India as a leader in the global EV landscape.”– said Mukesh Taneja, CEO and Co-Founder at GT FORCE.
Harry Bajaj, Founder and CEO, Mobec on the EV Sector
Anuraag Saxena, CEO, E-Gaming Federation, says, “The Budget 2025’s strong emphasis on youth empowerment, job creation, and employment-linked skilling is optimistic. Over the next five years, the Hon’ble FM has devised a plan to provide employment possibilities for almost 4.1 crore youth. The allocation of Rs 1.48 lakh crore for employment and education to skill 20 lakh youth over five years is another noteworthy milestone. Jobs are the primary driver of economic growth, and putting new initiatives and allocations into practice would not only improve the employment situation but also have a significant impact on developing a trained labor force for all industries, including the online skill gaming. The sunrise industry has consistently played a pivotal role in providing opportunities to Bharat’s talented young individuals. We welcome today’s budget as a positive development. The online gaming industry is excited to partner with the government towards a Vikasit Bharat by becoming a center for global gaming innovation.”
Subramaniam Thiruppathi, Director of Sales for India and Sub-Continent, Zebra Technologies
“In the era of next-generation technologies such as AI, ML, robotics, and automation, the initiatives announced in the Union Budget 2024-25 are pivotal for preparing India’s talent pool to drive our economy towards the USD 5 trillion goal. With an allocation of ₹2 lakh crore for employment-linked skilling, incentives for creating 4 crore jobs in the manufacturing sector, and the introduction of the Model Skill Loan Scheme, our youth will have unprecedented opportunities for growth.
Additionally, the provision of internships and direct benefit transfers will ensure our workforce is skilled and financially supported. These comprehensive measures will build a robust, future-ready talent pool capable of spearheading India’s technological and economic advancement.“
Mr. Sandeep Bhambure, Vice President and Managing Director, India & SAARC, Veeam Software
‘The pervasive IT outage on July 19, 2024, throwing a ‘Blue Screen (BSOD) and hanging systems around the globe, disrupted installations and almost grounding businesses globally. This widespread disruption impacted critical services across multiple industries including airlines, banks, and hospitals. This outage highlights how digital infrastructure is vulnerable to disruption and so too is our dependency on it for critical services, especially as this was not the result of a cyberattack or malicious activity. This underscores the crucial importance of robust and reliable backup and recovery solutions for ensuring business resilience. Preparedness is key to data resilience and secure backup and recovery solutions are not just an IT concern, they are a strategic imperative for any organization aiming to safeguard its future. By investing in comprehensive data resilience strategies, businesses can ensure that they are well-equipped to navigate the uncertainties of the digital age and maintain continuity and trust in the face of adversity.
At Veeam we are committed to providing the tools and expertise necessary to build resilient, future-proof organizations. We focus on five key pillars: Data Backup, Data Security, Data Recovery, Data Freedom, and Data Intelligence. In today’s volatile IT environment, powering data resilience allows our customers to not just maintain continuity and keep running, but to thrive amidst disruptions.’
Bipin Preet Singh, Co-founder and CEO at MobiKwi
“India’s visionary Budget 2024 has resonated positively with the masses, focusing on employment, skilling, and MSMEs, thereby laying a strong foundation for the next five years. By introducing a new credit guarantee scheme to offer term loans to MSMEs and raising MUDRA loan limits, the budget aims to support and strengthen the MSME ecosystem. Additionally, eliminating the angel tax will help build a healthier startup ecosystem with higher access to capital and a lesser burden on investors. The long-term capital gains tax (LTCG) scheme, with its increased exemption limit to Rs 1.25 lakh, will offer investors the opportunity to earn higher tax-free gains, promoting greater investment participation and enhancing overall tax efficiency. With this move, the startup industry will witness more innovation and development across different sectors, showcasing India as a global powerhouse in the startup ecosystem. Furthermore, the government’s emphasis on youth with job creation and skilling programs will boost India’s economic growth. Overall, the union budget underscores a strategic approach towards long-term economic resilience and innovation.”
Mr. Shishir Gupta, Founder and CEO at Riot Labz
“The Union Budget 2024-25 demonstrates a commendable commitment to job creation and skill development in the manufacturing sector. The introduction of three schemes for employment-linked incentives, particularly the direct benefit transfer of one month’s salary to first-time employees and the support extended to employers, is a major step towards fostering a more vibrant job market. Riot Labz welcomes the government’s focus on incentivizing job creation in manufacturing, as this aligns with our vision of expanding our workforce and enhancing productivity. The provision for EPFO contributions, reimbursing employers up to Rs 3,000 per month for each additional employee, will undoubtedly encourage us and other manufacturers to generate more employment opportunities. Additionally, the extension of Mudra loan limits to Rs 20 lakh from Rs 10 lakh for those who have availed and repaid previous loans is a significant boost for small businesses. The budget also introduces a new scheme to facilitate term loans for MSMEs for the purchase of machinery and equipment without collateral and guarantee, with a guarantee fund providing guarantees of up to ₹100 crore. This comprehensive approach to supporting MSMEs and manufacturing reflects a robust strategy to address the talent gap and support advanced manufacturing processes. This budget reinforces our confidence in the government’s dedication to driving economic growth, technological innovation, and sustainable development within the manufacturing sector.”