Budget 2024 LIVE Updates : Rs 6.22 lakh crore allocated to MoD, highest among Ministries, in Regular Union Budget 2024-25; 4.79% higher than FY 2023-24

 Dr. Sangita Reddy, Joint Managing Director, Apollo Hospitals Group– Exempting three cancer medications from customs duties is a promising strategy and undoubtedly a good move taken by the Government to improve the accessibility and affordability of treatment options for this fatal disease that causes higher mortality and morbidity rates in India. Recognizing the mortality linked to cervical cancer, the focus is on preventive care with initiatives aimed at increasing cervical cancer vaccinations among young girls highlighting a paradigm shift towards early intervention. However, the previous budget had announced health coverage for people over 70 up to five lakhs and the innovation fund, which is critical for healthcare. It was a monumental step taken to address the healthcare needs of an increasingly ageing population and provide treatment under the Ayushman Bharat Yojana. A proactive approach is required when it comes to dealing with the health of senior citizens and improving their quality of life.

Mansi from Amouve- “It is commendable that provision to upskill labour especially in a workforce-intensive industry like textiles, through PLI and ‘plug and play’ parks has been given importance. The setting up of women’s hostels and creche facilities will ameliorate their participation in the economy.

Access to finance remains a major challenge for MSMEs. The move from traditional loan approval to one that tracks the digital footprint of a business will hopefully reduce the bureaucracy and documentation in availing loans. The doubling of the upper limit of Mudra loans is a welcome change. The PPP model for export ecommerce hubs is something startups in the D2C segment will benefit from. 

However, not much has been done about mounting raw material costs in the textile sector along with environmental regulations. Same for incentives specific to women owned startups.”

Srinivasa Bharathy, CEO & MD, Adrenalin eSystems-HR Tech Solution Provider

“In today’s Union Budget, the Finance Minister has set forth a forward-looking agenda with the VIKSIT BHARAT framework, emphasizing job creation and inclusive human resource development. With a central outlay of ₹2 lakh crore dedicated to empowering 4.1 crore youth over the next five years, it addresses a crucial need in India’s evolving job market. As new sectors such as AI, advanced manufacturing, and green technologies rapidly expand, the demand for a skilled workforce has never been greater.

Investing in skilling is essential to equipping our workforce with the competencies required to thrive in these dynamic industries. The government’s focus on inclusive HR development and job creation will not only address current employment gaps but also prepare the next generation for future opportunities. This strategic approach aligns with the broader VIKSIT BHARAT vision, ensuring that as India progresses, our human capital remains agile and adept in the face of technological advancements. The Finance Minister also announced increasing the participation of women in the workforce as a priority, achieved through partnerships to organize women-specific skilling programs.

By prioritizing skill development and inclusive HR initiatives, the budget paves the way for sustained economic growth and innovation, reinforcing India’s position as a global leader in emerging technologies.”

Education Sector

Amit Kapur, Managing Director, Vedatya- A student centric global institute 

“The Union Budget’s latest initiatives mark a significant leap forward in strengthening India’s educational infrastructure and empowering our youth. With a dedicated financial support scheme providing up to ₹10 lakh for higher education loans in domestic institutions, the government is reinforcing its commitment to making quality education more accessible. The introduction of loans up to ₹7.5 lakh, backed by a government-promoted fund, alongside direct e-vouchers for 1 lakh students annually, highlights a robust strategy to support 25,000 students each year.

The budget’s focus on skill development is equally commendable, with plans to skill 20 lakh youth over the next five years and upgrade 1,000 Industrial Training Institutes. This initiative promises to align course content with industry needs, ensuring that education translates into tangible skills. The added benefit of a 3% annual interest subvention further enhances the affordability of education loans, making it easier for students to pursue their aspirations without financial strain.

The budget we hope will draw from the past impact experiences of schemes like PMKVY and use the same. Also a comprehensive study of subsidized student loans and grants akin to what is well entrenched in developed world would be the way forward for us as we pursue the goal of VIKSIT BHARAT.

At Vedatya Institute, we are excited by these developments and are eager to contribute to this transformative era in education and skill development, aligning with the government’s vision for a skilled and educated India.”

Renewable/ Energy Sector

Shreesh Chaturvedi, Founder, Vareyn Solar-A Solar EPC Company

“It is that time of the year when all the industries wait with bated breath. The budget has been promising so far and I believe it will have a positive impact on all industries including the renewable energy sector in India.  The focus on energy security and creating climate-resilient facilities is crucial. As we face increasing environmental challenges, ensuring a stable and sustainable energy supply is more important than ever.

The innovative steps towards transforming agricultural research and the Finance Minister’s emphasis on climate-resilient crop varieties can be a game-changer especially for the renewable energy sector. This step aligns seamlessly with our commitment to integrating sustainable energy solutions into every aspect of life including the agricultural sector, ensuring our farmers are better equipped to handle climate challenges. This is a huge opportunity to achieve India’s goals of net-zero by 2070. 

The emphasis on electricity storage and facilitating the smooth integration of renewable energy aligns perfectly with our mission. 

Additionally, the financial support for transitioning micro and small industries to cleaner energy sources and the exemption of capital goods for manufacturing solar cells and panels are forward-thinking measures. They will enhance the efficiency and reach of the solar sector, enabling us to deliver more innovative and effective solutions.

In addition to this, the PM Surya Ghar Muft Bijli scheme, which aims to install rooftop solar systems for 1 crore households, is a groundbreaking initiative. This move not only empowers millions of homes with clean energy but also signifies a massive boost for the solar industry. For us at Vareyn, it’s a golden opportunity to expand our reach and impact. We’re excited about the potential to create jobs, support sustainable living, and contribute significantly to India’s renewable energy goals.”

Lifestyle

Ganesh Kamath, Founder, Earthraga- A D2C skincare beauty brand

The Union Budget’s emphasis on boosting consumption is a strategic move that promises to invigorate key sectors, including consumer goods. With an allocation of ₹11,11,111 crore for infrastructure, constituting 3.4% of GDP, the budget is set to catalyze growth in logistics. This, in turn, will enhance the e-commerce and q-commerce sectors, creating new opportunities for home-grown Direct-to-Consumer (D2C) brands. 

The overall focus of the budget will help drive sustainable economic development and empower businesses committed to eco-friendly solutions. The integration of robust infrastructure investments in warehousing with consumption-driven policies will foster a thriving marketplace, supporting both traditional and innovative enterprises in contributing to India’s economic growth.

 Union Budget 2024: India’s Financial Blueprint To Foster Comprehensive Focus On Growth

Indian democracy witnessed a watershed moment at the Union Budget 2024-25, as policymakers focused on nine key areas to deliver a comprehensive growth roadmap through strategic allocations. Employment & upskilling, Infrastructure, Innovation & Research and development, and taxation reforms among others dominated GOI’s financial blueprint for the rest of the fiscal year. This marked a critical point for India’s holistic growth across sectors, as numerous corporates celebrated the focused push in different directions.

The GOI maintained its support to businesses operating in the startup, infrastructure development and EdTech sectors. Finance Minister Nirmala Sitharaman called for abolishing the Angel Tax, a milestone for the private entities. Apart from streamlining taxation, announcements regarding new infrastructure projects and upskilling youth set the tone for the budget. 

A provision of INR 1.48 lakh crore was allocated for education, employment and upskilling, coupled with the announcement of loans up to INR 10 lakh for higher education. The centre also announced up to 5 schemes to strategically push the employment rate with an INR 2 lakh crore package, consisting of initiatives that facilitate employment and upskilling of over 4.1 crore youth in the next 5 years. Additionally, the Indian manufacturing industry received a much-needed boost through the incentivization of job creation in the industry. Also, the announcement of key road connectivity projects, along with bridges and airports offered a bright future outlook for the construction sector. Furthermore, the abolition of the Angel Tax and streamlining corporate taxation for foreign companies to increase FDI inflow and growing emphasis on digitization highlights India’s strategic blueprint for the rest of the FY.

Organisations operating in these sectors — Euro Panel Products Limited, GUVI, QuackQuack and Xyst Care hailed the forward-thinking growth roadmap in the budget, as these entities became direct beneficiaries of the government’s commitment to supplement national growth. 

Focus on upskilling in a comprehensive budget

Mr. Arun Prakash, CEO and Founder of GUVI, lauded the centre’s focus on employment and upskilling, along with abolishing Angel Tax in the Union Budget, saying, “The financial blueprint laid out in the Union Budget puts a special emphasis on upskilling programmes targeting Indian youth. Furthermore, the package of five schemes designed to facilitate employment and upskilling with a strategic allocation of INR 2 lakh crore will have long-term favourable impact on the future of countless Indian students and professionals alike. While budgetary initiatives are focusing on upskilling 20 lakh youth directly in the next 5 years in trending and relevant, industry-appropriate courses, the long-term implications of this will be immense. Also, the abolition of Angel Tax will help the overall EdTech sector significantly through a unique opportunity to ensure scalability and growth, and attract investments simultaneously.”

Growth-oriented Infrastructure development push 

Mr. Divyam Shah, Director of Euro Panel Products Limited, feels the government’s continued push on developing and revitalising infrastructure projects will assist the overall construction sector to ensure growth, “The centre’s renewed interest in maintaining its focus on infrastructure development in the Union Budget is a gratifying sight. The construction of several key road connectivity projects, including highways and others, along with a new airport in Bihar and across India aligns with Eurobond’s long-term objectives. Furthermore, the incentivization of job creation in the manufacturing sector will help the sector to generate more jobs for skilled professionals, helping to streamline and increase the efficiency of the manufacturing process, leading to future growth.”

Streamlining taxation significant boost for startups

Mr. Ravi Mittal, Founder & CEO of QuackQuack, feels abolishing Angel Tax will have favourable long-term implications for the Indian startup ecosystem, “This 2024-25 Union Budget is highly influential to ensure long-term success in the startup ecosystem. By doing away with the Angel Tax, startups have been enabled to encourage a renewed business approach and enhance valuation. This will enable startups to undertake expansion initiatives without concerns about taxation, while also attracting increased funding from angel investors. Furthermore, the centre’s emphasis on upskilling will provide a viable pipeline of trained professionals for startups, ensuring long-term growth and scalability. “

Ms Gunjan Agarwal, Co-founder of XYST Care, states , “Abolishing Angel Tax will have a long-term impact on startup founders. This will not only motivate angel investors, but help to encourage entrepreneurial spirit in the Indian business domain. Additionally, the job generation push, coupled with the government’s financial assistance will help startups to acquire more talented professionals, leading to cumulative growth in the long-term. This Union Budget is full of opportunities for Indian startups pushing to become the next Unicorn, and governmental assistance is bolstering it to ensure success and growth.

The latest budget stresses ‘Viksit Bharat’ yet again, promoting a strategic push in key sectors to usher in economic growth and viability to supplement India’s bid to become a developed nation by 2047. Optimization of resources to address key concerns in upskilling, employment, agriculture and technology holds the potential to lead to a promising future and assist the nation to become a $5 trillion by 2027, as projected by the Ministry of Finance. The comprehensive union budget also seeks to provide uniformity in growth across sectors, helping to facilitate a new chapter in India’s progressive trajectory.

Vishvanathan Subramanian, CFO & Director, PayMate:

The government’s projection of a 4.9% fiscal deficit for the current year, with a target of 4.5% for the next, underscores its commitment to fiscal discipline. This strategic approach is expected to bolster investor confidence, attract FDI, and foster a conducive environment for economic growth in the coming years.

The honourable FM has proposed eliminating angel tax which will be a boon for India’s startup ecosystem. This move will facilitate early-stage funding, especially for the fintech startups, accelerating their growth and encouraging them to create innovative products which will improve India’s financial inclusion and bring the country a step closer to the Digital India dream. 

MSMEs are the engine propelling the economy, credit is the essential fuel. And the credit to MSMEs without collateral is an outstanding move which will enhance access to much-needed capital, fostering growth for them. The self-financing guarantee fund of Rs 100 crore will help MSMEs in covering their CAPEX needs without requiring collateral or a third-party guarantee.

The aggressive steps towards skilling and employment of the youth in India are applausive. A comprehensive scheme offering internships in 500 leading companies to one crore youth will significantly address the skill gap in Indian companies. The skilling initiatives announced today will make the nation’s youth more tech-savvy, thereby potentially reducing the skill gap in the fintech sector. By reducing employer costs, providing wage support, and providing direct incentives, the government will not only enhance their employability but also potentially accelerate economic growth by increasing consumption, driving formalization, and improving productivity.

Ms. Monica Malhotra Kandhari, Managing Director of AASOKA “I am delighted with the Union Budget 2024-25, which allocates ₹1.48 lakh crore towards education, employment, and skilling. This budget’s focus on skilling 20 lakh youth over five years through upgraded training institutes is a commendable step toward developing a capable workforce. The introduction of ₹10 lakh education loans for domestic institutions, with e-vouchers providing 3% interest subvention to one lakh students annually, will make higher education more accessible and affordable. The revised Model Skill Loan Scheme, benefiting 25,000 students yearly, further emphasizes the government’s dedication to skill development. Additionally, the initiative to offer internship opportunities to one crore youth in top companies, with financial support, will significantly enhance their employability.

At Aasoka, we are excited about these positive changes. Our blended learning solutions, which include customized curriculum and adaptive assessments, perfectly align with the budget’s vision. These initiatives will help us continue providing engaging and effective learning experiences for K-12 students, supporting their growth and success in the 21st century.”

CA Inderjeet Singh, Partner, AHSG & Co LLP:
“The Government has done a commendable job by abolishing the angel tax. It is a great decision for middle-income groups. This group has been struggling to save and barely managed to save with existing tax saving schemes. This refreshing change will allow them to have increased income and contribute to their economic stability. Also, a slight more tax relief should be considered for the middle class salaried people considering their low savings investments.”

Dimpal Kaushik, Director Finance, Scuzo Ice ‘O’ Magic, India’s Largest Growing Popsicle & Gelato Startup:

“Abolishing the angel tax will substantially advance the startup culture. This  change will help attract investment from national and global sources which in turn will enhance the growth of startups by providing them with increased funds. The abundance of inflow can ease startup growth generating better employment and innovation. Additionally, the suspension of angel tax will exclude bureaucratic complications, making compliance easy for the companies. Talking about motivation, an influx of funds will create the ecosystem of sustenance and growth and hence will encourage more ambitious minds to start their own venture thus driving the economic growth. Angel tax will also produce an easier market for global startups as well to choose the Indian market as an attractive spot to do business.”

The Union Budget 2024,  is a forward-looking budget that is aimed at driving economic growth for the country. The substantial reforms given in taxation on financial gains and the abolishment of the ANGEL tax will boost investment and stimulate economic activity. However, reforms and reliefs pertaining to AI and fintech industry would have been a welcome gesture to further propel one of the largest growth drivers in the India story. – Founding Business Head- Times Prime, Business Head – Cards
Budget Takeaways by Sakchi Jain- CA and Financial Educator: 

Overall Budget 2024 Takeaway:

The recent budget announcement for 2024 introduces bold reforms and targeted initiatives to fuel growth across various sectors. The comprehensive review of the Income Tax Act over the next six months aims to simplify the tax landscape for everyone.

The budget focuses on key areas like the poor, women, youth, and farmers. For youth, five new schemes, including a comprehensive internship program in top companies and employment-linked incentives, promise to boost opportunities. Women-specific skilling programs aim to increase workforce participation.

The attention given to MSMEs and the manufacturing sector is commendable, with a credit guarantee scheme, term loans for machinery, and a technology support package. In the financial sector, raising the Mudra loan limit and providing financial support for higher education loans will benefit small business owners and students.

Sustainable agriculture is a priority, with initiatives like transforming agricultural research for productivity and climate resilience, and introducing one crore farmers to natural farming over the next two years. 

The reduction of TDS rates on e-commerce transactions from 1% to 0.1% will ease compliance burdens for online merchants. The proposed removal of Angel Tax is a relief for startups and innovation, although changes in capital gains taxes may not be well-received by investors.

Additionally, the budget removes custom duty on cancer patient medicines and mobile phones, making these more affordable. Overall, this budget addresses nine critical areas: agriculture, employment, inclusive development, manufacturing and services, urban development, energy, infrastructure, innovation and R&D, and next-generation reforms.

Angel Tax

“Angel Tax” has been a significant concern for startups in India, impacting those that rely heavily on external funding. Under Section 56(2)(viib) of the Income Tax Act, 1961, this tax treats investments received from external investors as “income from other sources” and taxes it at a rate of 30%. This has been particularly challenging for young startups, especially in their early stages when they’re already grappling with operational expenses.

This tax has burdened many promising ventures. However, there’s exciting news for all of us championing innovation and entrepreneurship. Finance Minister Nirmala Sitharaman has proposed to remove the Angel Tax, a move that marks a significant step in our journey towards becoming a global hub for innovation.

This decision aims to create a more supportive environment for startups and address the concerns raised by the investor community. I believe the abolition of the Angel Tax on all classes of investors is not just a tax reform, it’s a strategic move to fuel the ambitions and growth of India’s startups 

Income Tax 

The recent budget announcement is a bold move, especially with the comprehensive review of the Income Tax Act over the next six months, aiming to make it more lucid and concise. The changes in the standard deduction, increased from Rs 50,000 to Rs 75,000, and the revised tax slab, raising the 5% tax rate limit from Rs 5 lakh to Rs 7 lakh, are beneficial for salaried employees. However, the capital gains tax regime has been almost completely revamped with increased tax rates, which might not be received positively by investors. Despite the exemption limit being increased from Rs 1 lakh to Rs 1.25 lakhs, the higher tax rates on long-term and certain short-term capital gains could dampen investor sentiment.

Additionally, income from the buy-back of shares will now be chargeable as dividend in the hands of the recipient investor, with the cost treated as a capital loss, introducing a new dynamic for investment strategies. The increase in Securities Transaction Tax (STT) rates on options and futures could also deter frequent trading.

On a positive note, the reduction of the TDS rate on e-commerce operators from 1% to 0.1% and the proposal to remove the Angel Tax is a significant step towards fostering innovation and entrepreneurship, Moreover, the reduction of the corporate tax rate for foreign companies to 35% aims to make India a more attractive destination for foreign investment.

Lastly, the implementation of the “Vivad se Vishwas” scheme for resolving tax disputes and the reduction of customs duty on mobile phones, PCBs, and chargers to 15%, along with the exemption of customs duty on medicines, are commendable steps towards easing the tax burden and improving the business environment.

Zarin Daruwala, CEO, India and South Asia, Standard Chartered Bank, said, “The Finance Minister underscored the Government’s commitment to fiscal prudence by reining in the deficit to 4.9% of GDP as against 5.1% presented in the interim budget. This will result in lower Government borrowing, and coupled with index inclusion flows, will reduce interest rates across the economy. Leveraging technology platforms to strengthen Insolvency and Bankruptcy Code (IBC) and setting up of additional tribunals will lead to transparency and efficiency, benefitting the banking sector. For MSME – the Guarantee Schemes, encouraging of new credit assessment models, and credit support during stress periods are key enablers to one of the largest providers of employment in the country.

The continued focus on Infrastructure, at 3.4% of GDP, will have a high multiplier effect on the economy, and has a second order impact on industries such as steel and cement. By focussing on employment and skilling the Government has stepped up its commitment to harness the ‘demographic dividend.’ The emphasis on resilience of agriculture in view of climate change and energy security, reflects the evolving strategic priorities of the Government in ensuring sustainable growth of the economy.”

Ms. Pallavi Jha, Chairperson & MD of Dale Carnegie India & Walchand PeopleFirst.

“The 2024-25 Union Budget must address both immediate job creation and the long-term sustainability of employment growth. While the ₹1.48 lakh crore allocated for education, employment and skilling is necessary, it may fall short given the scale of the job crisis and regional disparities.

To make a real impact, initiatives like EPFO incentives, skilling programs and the MSME credit guarantee scheme must align with the evolving needs of industry sectors. This approach will create targeted job opportunities and equip graduates with the skills needed to build a resilient workforce. Beyond funding, the focus must be on program quality and measurable outcomes to ensure effective implementation across credit support, mentorship, and market opportunities.”

Post Budget Quote by Deep Vadodaria – CEO of NILA Spaces Limited“We commend the Honourable Finance Minister, Nirmala Sitharaman, for the robust allocation of ₹2.2 lakh crore towards PM-Awas Yojana Urban 2.0. This significant commitment reflects the government’s dedication to addressing the housing needs of the poor and middle class. The completion of 3 crore houses across rural and urban areas will greatly enhance the ‘Ease of Living’ and dignity for millions of Indians.

The reintroduction of interest subsidies under PMAY-U is a positive step that will support the affordable housing segment, making homeownership more accessible to many. Additionally, the Finance Minister’s encouragement for states to lower stamp duties for women homeowners is a progressive move that will significantly reduce property acquisition costs, fostering greater female participation in property ownership and promoting gender equality in real estate.
These initiatives, combined with the ₹1.48 lakh crore outlay dedicated to employment generation, will stimulate the construction industry, create millions of jobs, and ensure inclusive urban development. The planned regulatory framework for rental housing and the creation of dormitory-style rental housing for industrial workers mark the beginnings of a much-needed rental housing market in the country.

The digitization of land records with GIS mapping and the establishment of an IT-based system for property records and tax administration will improve the financial position of urban local bodies, contributing to more efficient urban management.

Furthermore, the government’s balanced approach, including the raise in both short-term and long-term capital gains, underscores a commitment to fiscal responsibility and sustainable economic growth. At this stage, raising taxes is a prudent move to ensure financial stability and support these ambitious development plans.”

“With the Interim Union Budget 2024, the government has reinforced its commitment to fostering technological innovation, with a significant emphasis on AI. The substantial allocation of ₹1 lakh crore to finance technology research is helping bolster the deep tech ecosystem and drive innovation, strengthening India’s position as a global technology leader. Additionally, the government’s investment of ₹10,000 crores in the IndiaAI Mission demonstrates a strategic focus on long-term economic growth and technological advancement in India,” says Karthik Rajaram, Area Vice President and GM, India, Elastic.

“Building on that progress, we welcome the budget for FY 2024-25 and the recent allocation of ₹1.48 lac crore towards education, employment, and skilling. At Elastic, we are committed to empowering Indian businesses with Search AI, helping them find the answers they need in real time, using all their data, at scale. We look forward to partnering with the government to shape a secure and digital future for India.”

Mr. Sanjay Dighe, CEO of Krystal Integrated Limited Services:

“The Union Budget 2024 presented by Finance Minister Nirmala Sitharaman outlines a comprehensive vision for India’s growth, with a strong emphasis on job creation, skill development, and social justice. The government’s focus on employment generation and upskilling initiatives is particularly encouraging for the facility management and staffing sector.

The introduction of three key schemes under the Prime Minister’s package is a significant step towards boosting the job market. The government’s commitment to support 210 lakh first-time employees, incentivize job creation in the manufacturing sector, and reimburse employers for additional hires will undoubtedly stimulate employment opportunities. The plans to upgrade 1,000 Industrial Training Institutes and the new centrally sponsored scheme to skill 20 lakh youth over five years are welcome moves. These initiatives, coupled with the focus on women’s participation in the workforce through working women hostels and specific skilling programs, will foster a more inclusive and skilled labour force. These progressive measures lay a strong foundation for building a more prosperous and skilled India.”

Navin Honagudi, Founder & Managing Partner of Elev8 Venture Partners, regarding this development:

Quote: “The announcement of the abolishment of angel tax has come at the most opportune time, especially since global startup funding has seen a decline of almost 30% in the last year. Reducing the tax on long-term capital gains arising from the sale of shares of startups to 12.5% will boost further innovation and entrepreneurship among the startup community and may even attract further global investors to India. This move mirrors tax measures of other major nations, propelling Indian GDP growth. Furthermore, with 44% of Indian startups situated outside large cities, such a step will further boost the expansion of innovation hubs in Tier-2 and Tier-3 cities, thereby promoting balanced regional development and tapping into India’s talent pool. This would foster a more risk-capital-friendly environment, increasing the likelihood of home-grown global digital behemoths, while also lowering technology dependence and promoting economic sovereignty in the long run.”

Ujjwal Singh – Founding CEO, Infinity Learn by Sri Chaitanya The Union Budget’s emphasis on education and upskilling is a commendable initiative. The allocation of Rs 1.48 lakh crore for education, employment, and skilling marks a significant step towards India’s economic growth, particularly as we advance towards digital literacy. As Finance Minister Nirmala Sitharaman stated during today’s budget announcement, this focus on education aims to enhance the accessibility and affordability of quality education. Furthermore, the budget’s emphasis on employment generation will fuel the aspirations of countless teachers, who are the backbone of our education sector. This investment will empower educators with greater opportunities to ensure ‘Baccha Seekha Ki Nahi’.

The establishment of new medical colleges in Bihar is especially encouraging for us, as we have been deeply committed to empowering learning outcomes in Bihar through our Patna Test Prep Centres. This is evident from our learners’ exceptional performance in recent competitive exams for engineering and medical fields. This motivates us to redouble our efforts to nurture outstanding doctors and improve the healthcare infrastructure in Bihar.”

“It’s a significant move that the government is putting special attention on MSMEs and the manufacturing sector through this budget. The newly announced credit guarantee scheme and term loans will enable MSMEs to purchase machinery and equipment without the need for collateral, which will further help the sector spur the industry’s growth.

This initiative is expected to alleviate financial barriers for MSMEs, fostering increased productivity and technological advancement across the sector, which is essential for the country’s overall economic growth.” – Sachin Agrawal, Co-Founder & CEO at Bizongo

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“We’re pleased that this year’s budget has prioritized MSMEs as anticipated. MSMEs are indispensable to India’s transformational growth, and the expansion of the Mudra loan limit along with the establishment of the credit guarantee scheme signifies a commitment to creating an environment that fosters these enterprises, bridging credit gaps in underserved sectors. The Finance Minister has also instructed Public Sector Banks (PSBs) to develop new credit assessment models, moving beyond the traditional criteria of assets or turnover. These new models should incorporate technology-driven alternative data parameters to enhance financing options for MSMEs.

To stay ahead in technology and financing, the PSB Alliance initiative will aim to develop safer, more transparent, and more efficient financial services, ultimately boosting the inclusivity of the sector. Together, these measures will empower MSMEs to drive sustainable growth and innovation across the country.” – Raja Debnath, Managing Director, Veefin Solutions Ltd.

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“With this budget’s special focus on MSMEs and labour-intensive manufacturing, the government has unveiled a comprehensive package addressing financing, regulatory changes, and technology support for MSMEs to foster growth and global competitiveness. A crucial initiative is the introduction of a credit guarantee scheme for MSMEs in the manufacturing sector, which will facilitate term loans for machinery and equipment purchases without the need for collateral or third-party guarantees. This scheme, backed by a self-financing guarantee fund will esure substantial support.

Additionally, a new assessment model for MSME credit is being developed. This brings the credit analytics engine mechanism to the forefront. Banks will build in-house capabilities to evaluate MSMEs based on digital footprints, moving beyond traditional asset or turnover-based assessments. So MSMEs without formal accounting systems will get a better chance to improve their access to credit.

Furthermore, the scope of mandatory onboarding onto the TReDS platform will be expanded. By reducing the turnover threshold for buyers from 500 crore to 250 crore rupees, an additional 22 CPSEs and 7,000 companies will join the platform, enhancing MSMEs’ ability to convert trade receivables into cash. Lastly, the development of DPI applications at a massive scale will drive productivity gains, business opportunities, and innovation in MSME credit”. – Sundeep Mohindru, Promoter & Director, M1xchange

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“The new credit guarantee scheme, enabling term loans for MSMEs without collateral, will help them invest in essential machinery and equipment, driving growth and competitiveness. Enhancing the MUDRA loan limit will allow more MSMEs to access crucial funds, fostering innovation and expansion.

The reduction of the turnover threshold for mandatory onboarding on the TREDS platform to Rs 250 crore will ensure timely payments and improved liquidity for MSMEs. Establishing e-commerce export hubs in a PPP model and providing financial support for multi-product food irradiation units will open new avenues for MSMEs and traditional artisans to access international markets, boosting their export potential.

Additionally, reducing BCD on key inputs such as rootstock, worms, shrimp, and fish feed to 5% will lower production costs for seafood exporters and incentivize value addition in these industries. These initiatives will create a more favourable business environment, driving export growth and economic prosperity. We look forward to working with our clients to maximize these policy benefits and contribute to India’s export success.” – Pushkar Mukewar- CEO and Co-founder, Drip Capital

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“The budget’s initiatives to reduce stamp duty will lower costs for warehouses and other facilities, boosting infrastructure development. Increasing Mudra loan limits from 10 lakhs to 20 lakhs will enhance support for MSMEs, fostering sustainable growth. The setting up of an Integrated Technology Platform to improve the outcome under the Insolvency and Bankruptcy Code (IBC) will facilitate the recovery of outstanding for operational creditors too.

Furthermore, discouraging excessive speculation activity in the stock market will redirect energies towards other economic activities, contributing to a more sustainable growth of the economy.” – Mahesh Fogla, Executive Director, Patel Integrated Logistics Limited.