Finance Minister Nirmala Sitharaman presented her seventh straight Budget on July 23 for the fiscal 2024-25. Find below reactions to the Budget announcements from industry experts:

Ashok Hinduja, Chairman, Hinduja Group of Companies (India)

“The budget shows Modi 3.0 is all about continuing the path to Fiscal Consolidation with the Fiscal Deficit target of 4.9% this year and 4.5% the next while maintaining the Capex figure at 3.6%. The focus on the agri sector and housing infrastructure - affordable and urban - is substantive and augurs well. Quite a few changes in taxation have been announced which needs a detailed study. Higher FDI is expected with a reduction in tax on Foreign Companies from 40 to 35%. Overall, a good budget for the macro Indian Investment Climate but could have been better for Indian Investors"

Mayank Kumar, Co-founder & MD, upGrad

“Budget 2024-25 allocations towards skilling and employment and Startup growth marks a watershed moment in India's journey towards becoming the world's largest talent economy. 

With a very strong emphasis on skilling and employment and bridging the talent-academia gap, GOI's allocations—to fuel aspirations of 4.1 crore youths, empower women to join the workforce, and provide tax benefits and loans like Skilling loan (upto INR 7.5 lakh) and Education loan (upto INR 10 lakh)—is a masterstroke, set to unlock India's demographic dividend and drive growth. This budget is not just a financial plan but a blueprint for a brighter future where India's youth will thrive and continue to lead global job requirements.

Innovative initiatives announced, such as the scheme to boost job creation in the manufacturing sector, incentives for EPFO contributions, and reimbursement for additional employee EPFO contributions, demonstrate the government's commitment to creating a conducive employment ecosystem. India's economic growth, described as a "shining exception," will propel its focus on innovation and growth with a focus on job creation and skilling. The skilling loan and education loan initiatives will further empower India's youth to drive growth and innovation.

Moreover, the government's scheme to provide internship opportunities to 1 crore youth in 500 top companies over 5 years will bridge the industry-academia gap and enhance employability, empowering India's youth with the opportunities they need to bridge the talent supply demand across global jobs. With such bold commitments towards jobs, skilling, and employment, Budget 2024-25 ignites a talent revolution in India, poised to propel the nation's youth to global leadership.

By abolishing angel tax, the government has given a major fillip to the startup ecosystem, fostering more investments, growth, and innovation in India, and enhancing its capabilities to cater to global demands. Additionally, the reduction of capital gains tax for unlisted equity aligns it with listed equity is another strong move, further boosting investor confidence and liquidity in the startup space.”

Dheeraj Hinduja, Executive Chairman, Ashok Leyland: 

“The Finance Minister has presented a growth-oriented and pro-development Budget for 2024-25 by focusing on national infrastructure development, urban development, sustainable planning, and inclusive growth through a tech-enabled economy. With this budget, the government aims to address key issues, provide targeted support, and sets a robust agenda for growth and development. The continued emphasis on fostering investment and enhancing road infrastructure, especially in Andhra Pradesh and Bihar will facilitate growth in the manufacturing and automobile sectors. Focus on private investment in infrastructure, mining and housing sector is also likely to boost the sale of CVs. Furthermore, reduction in duties on rare earth minerals will help in promoting sustainable mobility and this resonates with our commitment to fostering a cleaner and more sustainable future.”

Ramesh Kalyanaraman, Executive Director, Kalyan Jewellers.

"We welcome the 2024 Budget's progressive measures to reduce customs duties on gold, silver, and platinum. These changes, coupled with the government's commitment to enhancing domestic value addition and craftsmanship, are poised to significantly benefit the jewellery industry, further contributing to the sector’s growth. 

The new tax regime, with its focus on increased disposable income will boost demand for jewellery as consumers will invest in asset creation. 

Kalyan Jewellers looks forward to leveraging these positive changes to further enhance the quality and global competitiveness of the organised Indian jewellery sector, contributing to the industry's growth and India's continued economic prosperity." 

Atul Chaturvedi, Executive Chairman, Shree Renuka Sugars Ltd

Mr. Atul Chaturvedi, Executive Chairman, Shree Renuka Sugars Ltd said  “The 2024 Union Budget is commendable for its strong focus on agriculture and economic growth. It highlights the government's commitment to reshaping Indian agriculture and boosting productivity. The allocation of Rs 1.52 lakh crore to agriculture, along with new initiatives in research as well as roping in private sector is a welcome sign and will greatly benefit the sector. The budget’s emphasis on employment and skills development will help strengthen the economy. The government’s focus on energy transition is admirable, as it is a critical component in the fight against climate change. Overall, this budget is a positive step for India's growth and future.”

NS Rao, Group CFO, Ramky Group.

We applaud the Finance Ministry and the Indian government's enduring dedication to economic progress. Their decision to retain the Rs 11.11 lakh crore capex outlay for infrastructure over five years, alongside fiscal support, is warmly welcomed. This commitment, along with attracting private investment through viability gap funding and a market-driven financing framework, promises a bright future for infrastructure. Furthermore, the allocation of 3.4% of GDP to infrastructure, along with Rs 1.5 lakh crore in long-term, interest-free loans to states, empowers the industry to innovate and deliver cutting-edge projects that drive economic growth and job creation. The significant aspect is the emphasis on plug-and-play industrial parks, water,  sewage and municipal solid waste treatment, paving way for SDG fulfillment and circular economy.

Y. R. Nagaraja,  Managing Director of Ramky Infrastructure Limited.

“Ramky Infrastructure Limited commends the Government of India's vision for propelling overall economic growth. The Viksit Bharat mission's nine priorities unveil a wealth of opportunities for both public and private entities through enabling policies and fiscal support.

One of the most important aspects of the infrastructure industry is the government's unwavering commitment to skill development and the substantial capital expenditure outlay of ₹11.11 lakh crore designated for infrastructure developments. The sanctioning of twelve "plug and play" industrial parks, fully equipped with necessary resources promises to significantly enhance the nation's manufacturing capabilities and generate a surge in employment opportunities. The roadmap for developing similar parks in 100 cities indicates a decentralised approach to industrial development, one that actively incorporates private-sector partnerships.

Furthermore, we applaud schemes like PM Awas Yojana, which addresses housing needs in both urban and rural areas. The government's commendable allocation of Rs 2.66 lakh crore for rural development will facilitate the provision of essential infrastructure. In conclusion, Ramky Infrastructure Limited firmly believes the 2024 union budget paves the way for inclusive and sustainable growth across the nation”.

Vishal Kampani – Non Executive Vice Chairman, JM Financial Limited

"The budget underlines the government’s priority of inclusive growth with prudent fiscal practices. Fiscal deficit target has been set lower than market expectations at 4.9% of GDP for FY25. Fiscal math looks credible and is in line with the interim budget announcements, indicating that the government is utilising the income tax buoyancy in right areas. The focus on building India’s human capital through various skilling programs with an aim to improve productivity and reap the benefits of the huge demographic dividend over the coming years is commendable. Although the capex allocation is kept unchanged, the allocation of INR 11.11 tn is significant considering it has grown ~17% YoY from revised estimates of FY24. Government’s commitment towards transitioning to cleaner sources of energy and focus on manufacturing and MSMEs mark the progress pathway to Viksit Bharat.”

Natasha Tuli, Co Founder & CEO, Soulflower, on the recently announced Union Budget 2024-25

This is a landmark budget for the e-commerce industry. The push by the Government on e-commerce will not only boost the industry but also boost India's overall economy. The reduction in Tax Deducted at Source (TDS) for e-commerce operators, from 1% to 0.1%, will alleviate fiscal pressures on e-commerce enterprises. This significant decrease will lessen the load on working capital and is expected to create a more favorable environment for growth.

These initiatives are expected not only to sustain but bring ecommerce to scale, which in turn will drive India’s economic growth We congratulate the Government for Budget 2024 and wholeheartedly welcome it

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."

Ketan Kulkarni, Chief Growth Officer, Allcargo Group

“Finance Minister Nirmala Sitharaman, provided enough fuel for India’s current growth ride. With the budget focussing specially on job creation and skilling, agriculture, infrastructure, research and technology, the ride should gain momentum. Without changing the Capex allocation which was significant compared to the revised estimates, increased outlays in many sectors like infra and manufacturing will boost spending. The government has also reiterated its determination to pull down the fiscal deficit in the coming years. As every sector has something to cheer about in general, logistics also should gain from the overall growth trajectory. The positive spurs makes the budget balanced, positive and forward-looking”.

Piyush Bothra, Cofounder & CFO, Square Yards

Today's budget announcement brings several positives for the real estate sector. The allocation of INR 10 lakh crore towards PMAY, plans for transit-oriented development (TOD) in 14 major cities, and a framework for brownfield redevelopment to revitalize older neighborhoods will facilitate the sustainable growth of cities. These measures are expected to invigorate real estate activity, particularly in the residential segment, over the coming year.

However, some critical expectations remain unmet. Revising and expanding the upper tax bracket, currently capped at INR 15 lakh and taxed at a steep 30% under both regimes, and updating the limits for home loan deductions could have further stimulated residential demand and provided additional relief to homebuyers.

Jaikaran Chandock, Director, Balu Forge Industries Ltd

The budget has laid the foundation for achieving the goal of Viksit Bharat and a roadmap for a sustainable and inclusive economic growth. Through renewable energy transition, strengthening energy mix with nuclear energy, capex push in infrastructure development and focus on education, employment and skills, the budget builds the pathway for transformation-led growth for the economy.

The allocation of Rs.6.21 lakh crore for the defence sector for FY25 in continuation with the Interim Budget announcement will further reinforce the country’s indigenous defence manufacturing capabilities, paving the way for Atmanirhbar Bharat. Reduction in expenditure on defence procurement from foreign sources helps prudent fiscal allocation. The budget allocation of 2,52,200 crore to railways will also boost manufacturing in railways.

India is on the cusp of entering a high-growth phase and the budget ensures that transition benefitting industries across sectors and each segment of the society

Vijay Kalantri, Chairman, WTC Mumbai on Union Budget 2024-25

“I congratulate Hon’ble Finance Minister for presenting the budget for the 7th consecutive term, a rare distinction for India’s finance ministers. I welcome the budget for taking holistic approach to support MSMEs, start-ups, infrastructure, agriculture, skill development, e-commerce and tourism.

The need of the hour is capacity building in manufacturing by promoting investment through effective policy.

The government has taken steps to promote collateral-free MSME credit, relax fresh credit norms for SMA classified loan account of MSMEs and announced more SIDBI branches in MSME clusters.

I hope these initiatives, along with skilling of 4 crore youth and thrust on infrastructure and digitisation of agriculture, will support India’s economic growth.

The Hon’ble Finance Minister has articulated the roadmap to attain USD 40 trillion economy vision during the Amrit Kaal.

Specifically, I welcome the government’s move to decriminalise minor TDS offences, abolition of angel tax for all classes of investors and increasing standard deduction for salaried classes.

I commend the Hon’ble Finance Minister for balancing the twin objectives of promoting consumption, investment, while also reducing fiscal deficit to 4.9% from 5.1% estimated in the interim budget.

I look forward to effective implementation of the budget announcements at the ground level.

At the same time, the budget lacks major policy measures to support capacity building, manufacturing investment, infrastructure and could have given incentives for MSMEs to increase production capacity, invest in R&D. The government could have reduced personal income tax rates to provide relief to working class and boost consumption. Also, currently there are multiple GST slabs, which needs to be reduced to two to promote ease of doing business, reduce ambiguity and litigation.

In future, I expect the government to rationalise the GST regime by slashing rates on essential items such as cement, bringing fuel, power and real estate under GST and other measures.

The government could have also announced measures to further improve ease of doing business for MSMEs and start-ups. Today, startup founders prefer to register their companies abroad instead of in India because of complex local regulations for registration, fund raising, unfavourable tax treatment while exiting investment, restrictive FEMA guidelines for doing business with foreign clients and so on.

The government could have also announced the setting up of an official trade promotion organisation with branches in foreign countries to promote India’s exports and attract investment.

Sanjay Bhardwaj, Associate Partner, Government, Infrastructure, Development sector Advisory Services, Forvis Mazars in India:

"In this year's budget, the government's strategic focus on MSMEs and labor-intensive manufacturing is commendable. The financing, regulatory changes, and technology support highlighted are significant steps towards empowering MSMEs to thrive and compete globally.

The new MSME credit assessment model, which leverages digital footprints, marks a transformative shift from traditional asset or turnover-based criteria. Additionally, the enhanced mandatory onboarding on the TReDS platform, reducing the turnover threshold to Rs 250 crore, will unlock working capital for more MSMEs, including medium enterprises. Furthermore, the expansion of SIDBI branches to major MSME clusters and the introduction of a credit guarantee scheme will provide much-needed direct credit and reduce credit risks.

Govind Rammurthy, CEO and Managing Director of eScan, encapsulating the brand's outlook on how the new policies can bolster India's tech future:  

The Union Budget 2024-25 reflects the Government's strong commitment to fostering economic growth, with a clear focus on infrastructure development, boosting consumption, and promoting domestic manufacturing.

Key initiatives include significant capital expenditure increases, incentives for skilling and employment, and enhanced support for MSMEs. The budget also emphasizes women's empowerment, with new schemes for housing and entrepreneurship, and aims to drive technological advancements through R&D incentives for emerging technologies like AI and the Internet of Things (IoT).

These measures, along with efforts to promote 'Made-in-India' (MII) technologies in both the private sector and PSUs, are expected to significantly bolster the country's economic trajectory and technological prowess, especially in the critical areas of Cybersecurity and Artificial Intelligence.

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."

Manoj Purohit, Partner & Leader, Financial Services Tax, Tax & Regulatory Services, BDO India

Against the backdrop of the cautioning fiscal deficit and GDP numbers projected in the Economic Survey, the Finance Minister has tried a balancing act to make a reform oriented budget. It largely depicts the vision to make India a USD 5 trillion economy in the next few years.

The budget allocation on the identified priority sectors such as Infrastructure, affordable housing, MSME, Innovation etc. would surely pave the way for a strong foundation to build a subtle economy. 

In the BFSI space, the key announcements which will lure foreign investors, are abolishment of Angel Tax, introduction on Variable Capital Company regime, reduction of tax on foreign corporates and to name a few.

On the Capital markets front, there has been a mix of proposals viz. rationalisation of capital gains tax, marginal increase in long terms capital gains tax exemption by INR 25K, uniformity of period of holding of certain financial assets will bring in much needed clarity and simplification in tax rates. However, the removal of indexation benefits, increase in STT on FnO trades and introducing buyback tax in the hands of shareholders will invite not so positive reactions for the market participants as their net return on investments will get impacted.

The government entering the Amrit Kaal has been mindful of long-term vision to position Indian economy as the fastest growing economies of the world. The policies and reforms announced are largely focused on building the base and infusing resources to make fundamentally resilient structure which is ready to embrace the dynamic changes across the globe.

Sanjay Sinha, Founder of Citrus Advisors.

"The 2024-2025 budget highlights a roadmap for "Viksit Bharat" focusing on employment, skilling, MSMEs, and the middle class. Key initiatives include promoting natural farming, releasing new crop varieties, and supporting shrimp production. Employment schemes aims to benefit 210 lakh youth seeking jobs for the first time, while skilling programs will upgrade 1,000 industrial training institutes. Social justice efforts cover economic development in eastern states and tribal regions, with significant allocations for women and girls. Infrastructure projects include national industrial corridors and affordable housing. Energy security focuses on renewable integration, and tax reforms aim to simplify compliance and promote investment."

Baba Kalyani, Chairman & MD, Bharat Forge Ltd.  budget reaction quote with you.

“I congratulate the Hon’ble Finance Minister for an excellent budget that lays strong emphasis on strengthening the fundamental pillars that would propel Indian economy towards a Viksit Bharat.

The focus on natural farming and agricultural productivity, incentivizing job creation and employment, continued impetus to bolster MSMEs, modernizing urban cities and policies aimed at accelerating India’s energy transition will have a long-standing affect that would significantly improve economic resilience in an otherwise volatile world economy. I would also particularly commend the fresh-thinking and approach of the government in ‘Skilling’ and ‘Urban development’ both of which demanded urgent attention.

Infrastructure creation, which is a direct contributor to India’s competitiveness and positioning as a favoured investment destination, has been the hallmark of Prime Minister Modi’s governments; continued attention towards roads, ports, plug & play industrial parks, irrigation projects and affordable housing is noteworthy. Special thrust given on promoting Tourism is a welcome move which would have a great multiplier effect on local economies.

I greatly appreciate the operationalization of Anusandhan NRF and the exclusive venture-fund for Space segment. More importantly, the 1-lakh crore financing pool to bolster private sector driven research and innovation at commercial scale will have a great impact in transitioning India towards a Product’s Nation in the long-term.

While the budget allocation for Defence Industry is in expected lines, creation of the Critical Minerals Mission and articulation of India’s strategy on Small Modular Nuclear Reactors will go a long way in bolstering the AatmaNirbhar Bharat agenda.

We are all greatly inspired by the vision for a Viksit Bharat by 2047 and I am confident that these initiatives collectively signal a robust blueprint for India’s progressive, integrated and inclusive development.

Raj Nagarkar, MD & Chief of Surgical Oncology & Robotic Services, HCG Manavata Cancer Centre (HCGMCC)

“The exemption of customs duty on cancer medicines is a significant step towards making healthcare more accessible and affordable. This will help patients access quality cancer care and will reduce financial burden on patients. However, custom duty on Radiation Therapy equipment and PET/CT scan equipment which are not manufactured in India should also have been exempted. Duty on these equipment eventually make patient care more expensive.

We also were expecting announcements on strengthening of public healthcare initiatives, particularly rural. Every section of the society deserves the best quality healthcare. On one hand we talk about heart transplantation and CAR T Cells therapy while on the other hand, the basic requirements for cancer care and cardiac care are missing. Those opportunities should have been created. As an Oncologist, I feel that the Government needs to look toward high end treatments like Radiation Therapy, and Bone Marrow Transplant and make these within the reach of the common man.

The government’s employment-linked schemes are commendable. This year’s budget has put significant focus on employment generation and skill development which will ensure that the youth remain more focused and work towards the country's growth,” says Dr Raj Nagarkar, MD & Chief of Surgical Oncology & Robotic Services, HCG Manavata Cancer Centre (HCGMCC).

Sanjay Choudhari, Chairman at SBL Energy Limited                                                            

"The government's commitment to energy security and sustainability is evident in today's announcements. They are focusing on employment and sustainability with a policy document on energy transition pathways. The auction of offshore mineral blocks will leverage existing exploration efforts, providing essential metals like lithium, crucial for reducing carbon footprints.Introducing green hydrogen into our manufacturing processes will significantly lower our carbon impact. Since hydrogen is part of our raw materials, this change is vital. Coal gasification will enhance self-sustainability and reduce import dependency. We are committed to ensuring that all our practices support a reliable and eco-friendly mining supply chain. These initiatives collectively demonstrate our dedication to a sustainable and resilient future for India.".

Nikesh Kumar Sinha, MD & CEO of Ashv Finance, on the MSME sector.

"This Budget manifests the Government's spotlight on MSME and its commitment to support the sector through financing, credit guarantees and most importantly the idea of continuation of bank credit during periods of stress. It's an acknowledgment of the fragility of the sector and a need to nurture the sector in adverse cycles - this will buttress and lend strength to the sector. The budget promises to be the harbinger of increased credit flows to the sector. Enhancement of limits of Mudra loans from INR 10 lakh to 20 lakh will spell expansion of credit flows to the Micro Segment. Overall, this budget augurs well for the micro, small & medium enterprises as the Government avers its mindfulness towards this sector and sets the tone for the BFSI sector to read the sign of the times."

Deepak Patkar, MD & CEO of SMFG Grihashakti(Formerly Fullerton Grihashakti)

"The FY25 Union Budget represents a decisive step forward in addressing India's housing needs with the expansion of the Pradhan Mantri Awas Yojana (PMAY) to include 3 crore additional houses. This ambitious plan, supported by a proposed central assistance of ₹2.2 lakh crore over the next five years, underlines the Government's commitment to providing quality housing for all. The introduction of an interest subsidy scheme for urban housing will make loans more affordable, enhancing access for many looking to realise their housing dreams. The Budget also emphasizes substantial investment in urban housing under PMAY 2.0, with an allocation of ₹10 lakh crore, showcasing a comprehensive approach to meeting urban housing demands.

As of now, 118.64 lakh houses have been sanctioned under PMAY-U, with 85.04 lakh already completed, reflecting significant progress. In rural areas, the PMAY-G scheme has facilitated the construction of 2.95 crore pucca houses by March 2024, with 2.94 crore houses sanctioned and 2.55 crore completed by February 2024. This highlights the Government's dedication to improving the overall infrastructure across the country and providing improved living conditions for the Economic Weaker Section (EWS) & Low Income Group (LIG) populous, thereby boosting overall economic development.”

Radhika Rao, Executive Director and Senior Economist, DBS Bank.

“Faced by a trade-off between fiscal consolidation and expectations for measures to boost demand, the FY25 Budget struck a fine balance by continuing to consolidate finances while also tackling social sector demands, with a focus on saving over spending. The strong revenue handover from the prior year was evenly split between tightening the fiscal deficit target by a further 20bp to -4.9% of GDP vs the interim budget and rest towards the increase in revenue spending. Nominal GDP forecast was maintained with conservative tax buoyancy assumptions, leaving the room for additional revenue cushion. 

The budget also focuses on structural improvements, including efforts to boost job creation and skills development, promoting exports through adjustments in import tariffs, and making direct tax changes such as reducing corporate tax for foreign firms and increasing capital gains tax as a cautious preventative measure. Overall, Budget measures were focused on incremental steps towards taking the economy towards the Viksit Bharat 2047 goalpost of reaching a ‘Developed India’ status.

Additionally, fiscal consolidation and macroeconomic prudence were prioritised, tightening the FY25 fiscal deficit by a cumulative 70bp to -4.9% of GDP (vs interim -5.1%) compared to -5.6% of GDP in FY24, aiming to consolidate finances without imparting a negative impulse to growth and demand. This aims to consolidate finances while avoiding a negative impact on growth and demand. The revenue from the RBI’s surplus transfer and robust direct tax collections was allocated between reducing the fiscal deficit and increasing revenue expenditure. Looking ahead, the government has signaled a continued reduction in both deficit and debt levels, aiming for around -4.5% of GDP by FY26. This adjustment in the fiscal stance is expected to lead to better expenditure quality and reduced borrowing costs due to lower yields.”

Sanjeev Dasgupta, CEO of CapitaLand Investment India

The government’s commitment to establish 'plug and play' industrial parks and 'Cities as Growth Hubs' will unlock significant investment opportunities and drive demand for modern commercial spaces in the country. With added benefits, this move will also incentivize global firms to strengthen their manufacturing hubs in India. 

Additionally, the proposed ‘Transit Oriented Development’ will be a promising step towards decongesting cities, and creating a vibrant landscape for investment. Faster implementation, with a focus on regions such as Bangalore, Mumbai and NCR will be imperative to sustain and accelerate the pace of industrial development and new workforce integration.

Rahul Kejriwal, Executive Director, Remsons

“The growth-oriented budget with continued reforms and infrastructure development with fiscal prudence and increased outlay of capital expenditure will go a long way. As the increase in Government's expenditure will  percolate in to more demand for both passenger and commercial vehicles, which would really a big boost for auto components sector. As a part of reforming direct tax structures, the budget has put more money in the hands of consumers and this would definitely spur the demand for  passenger vehicles. Meanwhile, the Production Linked Incentive (PLI) scheme for the automobile and auto components industries drew an investment of Rs 67,690 crore, according to the Economic Survey 2023-24.”