Budget 2024 LIVE Updates : 1st Scheme under PM’s Package to provide one month wage to all persons entering the workforce

Mr. Amit Pratihari, MD, De Beers Forevermark giving his opinion on the budget announcement:

“The Gems and Jewellery sector has made significant contributions to India’s GDP, and we appreciate the announcements made in the Union Budget for this sector. The proposed reduction in customs duties to 6% on gold and silver, and 6.5% on platinum, will enhance sales by making these precious metals more affordable. The implementation of safe harbor rates for the diamond-cutting industry, for foreign mining companies selling rough diamonds in India, will stimulate growth, boost consumer spending, and increase global competitiveness. Furthermore, the reduction of TDS from 1% to 0.1% for e-commerce operators will substantially support the industry’s expansion. These new measures will not only strengthen the valued investment of Indian households in diamonds but also add to their emotional significance,” Amit Pratihari, MD, De Beers Forevermark.

Dilip Chenoy, Chairperson, Bharat Web3 Association-The nine focus areas of budget 2024 are key steps towards our goal of Viksit Bharat. The budget also lays out a clear framework for digitisation of various sectors , where Web3 technology could play a critical role.

We were hoping for some relaxation to the taxation framework on VDAs in this budget, but the absence of any announcement is not particularly disheartening, given the Govt’s overall negative stance towards the sector. We have submitted data-backed quantitative analyses regarding the flight of users’ trading and transactions, as well as the potential increase in government revenue should the taxation structure be revised.

We will continue to push for rationalization of the taxation framework, which includes reducing the TDS to 0.01%, allowing setoff of losses on VDA transactions and modifying the 30% tax on capital gains. We are hopeful that the government will consider our requests and that we will see changes in the future.

On the positive, abolishing the angel tax for all classes of investors will work towards bolstering the Indian startup ecosystem. We look forward to more Web3 startups setting base in India, given India’s immense Web3 talent and potential.

Finally, the impetus provided to blockchain skilling and talent development in the Economic Survey can empower youth for the exciting opportunities in Web3 and contribute to a skilled ecosystem for Web3 adoption.

Shivam Thakral, CEO of BuyUcoin, India’s second-longest running digital asset exchange

We welcome the positive announcements made by the honorable finance minister in today’s budget. However, the demands of the Web3 sector were not met and we will continue our constructive dialogue with the regulators to address the industry concerns:

Here is our analysis of the Union Budget 2024:

Angel tax abolished: India’s startup ecosystem received a big boost in today’s budget as the angel tax is abolished for all classes of investors. This move will be a gamechanger for startups planning to raise funds for their expansion as it will give startups more surplus funds to invest in product innovation and technology development to implement their long-term vision for the industry. The move will encourage a lot of innovators to start their entrepreneurial journey and VCs will find it more convenient to invest in early-stage startups. With deep-tech, blockchain and emerging technologies in focus. VCs will be keen to bet on innovative technologies to facilitate the transition from Web2 to Web3.

TDS on VDAs untouched: However, Web3 as a sector was slightly ignored in the budget as the request to reduce the TDS on VDA transactions was not accommodated in the budget announcement. The delay in reducing the TDS will hamper the industry growth prospects as digital assets will not have a level playing field with other asset classes like stocks, gold and real estate.

Higher tax and not allowed to offset gains: The high tax on gains from VDAs still stands at 30% which is relatively very high and the users are not allowed to offset losses like stocks. This move will prove to be detrimental for the web3 industry as it deprives the industry from a level playing field.

Emerging tech in focus: In an encouraging move, the government highlighted the importance of technologies like blockchain and artificial intelligence. Government is actively involved in leveraging the potential of blockchain and AI for better governance and enhanced delivery of citizen schemes. At the same time, the economic survey also talks about the threats and challenges associated with Artificial Intelligence. The deep-fake incidents that occurred recently calls for a responsible use of emerging technologies through constructive collaboration between government and private players.

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.”

Alison Barrett MBE, Director India, British Council said, “The Union Budget 2024 stresses the critical importance of holistic development and higher education in driving inclusive and sustainable growth. There is a clear focus on empowering women through skilling programmes, increased workforce participation, and collaborative industry initiatives. The introduction of E-vouchers for higher education loans is a transformative step towards ensuring equal access to quality education. We remain committed to partnering the Government and working together to create opportunities that enable and empower all young people to thrive and contribute significantly to local and global progress.

Mr. Eugene Panfilov, Managing Director, Borzo India.

“While the expectation of logistics industry was high from this budget, it does present a market opportunity in Andhra Pradesh. With a special focus on improving Andhra Pradesh’s infrastructure, particularly its roads, the market for the delivery segment can see significant enhancement. The upgraded road infrastructure within key cities such as Vijayawada, Kurnool, Amaravati, Visakhapatnam, and Guntur will facilitate better intra-city logistics. Additionally, the development of the Vishakhapatnam-Chennai Industrial Corridor and the state’s road connectivity to major business hubs like Hyderabad, Bengaluru, and Chennai will streamline the movement of goods, opening up new market opportunities in the south. Prioritizing intra-city logistics infrastructure and highways will be crucial in attracting corporate investments for new market development in the state” – Eugene Panfilov, Managing Director, Borzo India.

Anjali K Gupta, Director at Next-Gen Media and Communications “As a woman entrepreneur, I’m encouraged by the 2024-25 budget’s focus on empowering women and youth. The emphasis on working women’s hostels and the proposal to lower stamp duty for women are significant steps towards improving our economic participation. The new internship scheme for 1 crore youth, with its financial support, is exciting. Combined with the 1.48 crore allocation for education and employment, this should create a skilled workforce. These measures align with my business goals and foster an inclusive economy. They’ll provide access to fresh talent and potentially lower costs for business expansion. I’m optimistic about leveraging these opportunities for my enterprise’s growth and contributing to overall economic development. These initiatives are positive steps towards a more equitable business environment.”

by Kapil Raizada, Co-founder, IntrCity SmartBus
We are excited about the continued budgetary focus on road & travel infrastructure, which further opens huge potential to serve new regions and improve shared bus transport experience for inter-city travelers

A large allocation of Rs 11.11 lakh crore for capital expenditure is aimed at enhancing road infrastructure and will significantly improve the efficiency and reach of inter-city bus transportation networks.

With a planned investment of Rs 26,000 crore in road projects across Bihar, including the development of new expressways, we see a significant opportunity for expansion. This infrastructure growth is set to enhance connectivity and journey experiences for travelers, providing them with more route options.

Furthermore, the ‘Purvodaya’ initiative targeting eastern states presents a golden opportunity for the bus transportation sector. As these regions become more connected and economically active, we anticipate a surge in demand for reliable inter-city bus services.

These developments align with our commitment to providing reliable and comfortable long-distance bus services. Overall, these infrastructure investments will enable bus services to play a crucial role in India’s economic growth, providing efficient, comfortable, and affordable transportation options for both regular travelers and tourists alike.

Anjali K Gupta, Director at Next-Gen Media and Communications “As a woman entrepreneur, I’m encouraged by the 2024-25 budget’s focus on empowering women and youth. The emphasis on working women’s hostels and the proposal to lower stamp duty for women are significant steps towards improving our economic participation. The new internship scheme for 1 crore youth, with its financial support, is exciting. Combined with the 1.48 crore allocation for education and employment, this should\ create a skilled workforce. These measures align with my business goals and foster an inclusive economy. They’ll provide access to fresh talent and potentially lower costs for business expansion. I’m optimistic about leveraging these opportunities for my enterprise’s growth and contributing to overall economic development. These initiatives are positive steps towards a more equitable business environment.”

Dr. Saurabh Gadgil, Chairman and Managing Director, PNG Jewellers

“We are delighted to learn about the significant reduction in import duties for Gold, Silver to 6%, and Platinum to 6.4%. This decision, which aligns with the industry’s long-standing request, is expected to have a positive impact on the organization and growth of the industry. By lowering import duties, we anticipate an increase in gold consumption and a moderation in gold prices, which have recently reached record highs.

Furthermore, this move is not only beneficial for the industry but also provides relief to consumers. It represents a substantial step towards enhancing industry transparency and curbing illegal smuggling activities. We wholeheartedly welcome this decision and look forward to its positive effects on the industry and the market”.

Mr. Mitesh Khimji, Director, Khimji Jewellers

“We express our sincere appreciation for the favourable decision made by the esteemed Prime Minister and the Finance Minister to reduce the import duty on Gold, Silver to 6% and Platinum to 6.4%. This advantageous move offers substantial relief to the gems and jewellery sector. It will further augment the industry’s global competitiveness and effectively eradicate the parallel grey market”.

Mr. Vinod Kumar Gupta
Managing Director, Dollar Industries Limited

We welcome the measures announced in the Union Budget 2024-25 aimed at enhancing the competitiveness of our textile exports. The expansion of the exempted goods list for textile exports is a forward-thinking move that will further boost our export potential. These initiatives reflect the government’s commitment to supporting the textile sector and will undoubtedly contribute to its growth and sustainability.

Aparna Acharekar, Co-founder, coto, said,“The 2024-2025 Union Budget has kept women empowerment as one of the primary goals for the year and we, at coto, are pleased with the same. By giving a major push towards women-led participation, the budget focuses on encouraging more women into the workforce, thereby also boosting women entrepreneurship, which is aligned with coto’s vision. The introduction of partnerships to formulate women-specific skilling programmes along with setting up of working women hostels and creches only showcases the government’s strong commitment to empower young girls and women across socio-economic groups, further strengthening India’s economy. In addition to this, the allocation of over ₹3 lakh crore for schemes benefiting women and girls highlights this dedication even further.

From an investment perspective, the removal of Angel Tax will allow for a more supportive environment for angel investment, ultimately benefiting the entire startup ecosystem and encouraging more entrepreneurship. We hope that these schemes and initiatives are implemented with a greater sense of dedication and urgency to meet the desired goals set for the future.”

Dr. Yajulu Medury, Vice Chancellor, Mahindra University:

“An increase in the budget allocation for the education sector is a positive development. It indicates a commitment to make education more affordable and accessible. Many private institutions already support research-based education through substantial subsidies. The new internship scheme could also encourage industries to offer paid opportunities, addressing the issues of unpaid internships. While this budget reflects a hopeful step towards stabilizing and enhancing education, especially after the challenges posed by the pandemic, we look forward to more support in research and competency-building.”

Mukul Goyal, Co-founder of Stratefix Consulting

“The Union Budget 2024 presents an ambitious framework aimed at revitalizing India’s economic landscape, particularly for MSMEs, startups, artificial intelligence, and job creation. With a proposed allocation of ₹22,000 crore for the MSME sector, this budget has the potential to catalyze significant growth and innovation.

 However, while the expansion of the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) is commendable, it could have been further enhanced by introducing specific incentives for eco-friendly technologies, which are crucial for aligning economic growth with sustainability.

The budget’s focus on ease of doing business is promising, with measures to streamline regulatory processes and extend tax holidays for startups. Yet, the absence of substantial changes in GST rates is a missed opportunity. Simplifying compliance and reducing the GST burden on essential goods for MSMEs would have provided immediate relief and improved cash flow management.

Moreover, while the introduction of employment-linked incentives and a ₹2 lakh crore allocation for job creation is noteworthy, the framework for skill development remains insufficient. A more robust approach to job-ready education and targeted training programs is essential to bridge the growing employability gap, particularly in high-demand sectors like AI and renewable energy.

Additionally, the budget lacks a comprehensive strategy to address the potential job displacement caused by AI advancements. A proactive approach, including retraining programs and direct benefit transfers for affected workers, could have been beneficial.

In conclusion, while the Union Budget 2024 lays a strong foundation for growth, it is imperative that the government prioritizes effective implementation and creates synergies across sectors. By addressing these gaps, we can ensure that the coming fiscal year transforms not just the economy, but also the lives of millions of Indians.”

“The Union Budget 2024 is a progressive step towards fostering economic growth and sustainability. Revamping the Tax structure & custom duty will bolster business confidence and investment in India.

The focus on skill development, energy transition and the development of small modular nuclear reactors aligns well with our commitment to sustainability. Additionally, the enhanced support to MSMEs and the introduction of employment-linked incentives will significantly benefit our workforce and supply chain.

Overall, the budget’s emphasis on innovation, infrastructure, and inclusive growth presents promising opportunities for Covestro India.”

 Dr. Sat Kumar Tomer ( Founder & CEO, Satyukt Analytics )

“The Union Budget’s allocation of Rs 1.52 lakh crore for agriculture and associated sectors is a monumental step towards revitalizing our agricultural landscape. The initiative to develop a digital public infrastructure in collaboration with states will modernize the sector, enhancing efficiency and connectivity. The comprehensive review and transformation of agricultural research to focus on productivity and climate-resilient crop varieties are crucial in the face of climate change. With challenge-mode funding and private sector involvement, this initiative promises innovative solutions and sustainable growth. The implementation of Digital Public Infrastructure (DPI) within three years will ensure that farmers and their lands are comprehensively covered, leading to better resource management. Additionally, the operationalization of the Anusandhan National Research Fund for basic research and prototype development, along with mechanisms for private sector-driven innovation, marks a significant advancement in agricultural research and development. This budget lays a strong foundation for a resilient and forward-thinking agricultural sector.” 

Raghav Gupta, Co-Founder, 1% Club: “The focus on education in the Union Budget 2024-25 is commendable. With a 6.8% increase in the Education Ministry’s budget, the ₹1.48 lakh crore investment in education, employment, & skilling is a big step forward. The government’s plan to offer internships to 1 crore youth is a great move that will help boost employability in the country. Plus, initiatives like support for higher education loans and upgrading 1,000 ITIs will really improve our education system. Employment has been a major issue, and these measures will support educators and students, promote innovation and entrepreneurship, and create more opportunities for growth.”

Neha Shah, a co-founder, Mentor, and Director at MentorMyBoard (MMB) has shared her reactions:

1. “The logistics and supply chain sector is vital to India’s growth story, with an emphasis on infrastructure, manufacturing, and skilling as crucial areas for long-term development.”
2. “The government’s initiative to set up e-commerce export hubs to aid MSMEs in exporting local products is seen as a significant move to drive growth through innovation.”
3. “Delays in corporate M&A actions and operational inefficiencies will be reduced by introducing an integrated platform for IBC, along with additional tribunals, ensuring a faster recovery process and timely corporate actions, benefiting all stakeholders involved.”
4. “The new credit guarantee scheme for MSMEs addresses the critical barrier of access to finance, alleviating financial constraints and promoting technological advancements and productivity improvements.”
5. “The corporate tax rate on foreign companies has been reduced to 25%, and Angel Tax has been abolished.”
6. “Long-term capital gains on all financial and non-financial assets will now attract a tax rate of 12.5%, with a limit of exemption for capital gains set at Rs 1.25 lakh per year. LTCG rates will range from 0% to 12.5% over 5-6 years, with indexation removed for real estate.”
7. “A new skilling program is designed to train 20 lakh youth over the next five years through industry-designed courses.”
8. “While the budget is favorable for GDP, it is not as beneficial for investors and traders, with the removal of indexation being a significant concern. There is no cheer for taxpayers.”