Union Budget 2024: What Experts and industrialists have to say

The Union budget 2024 concluded, and experts had various opinions on how it’ll impact India’s economic growth. They shared their opinions and analyses of how it will affect each of their respective sectors.

Hemant Sikka, Co-Chair, FICCI, National Agriculture Committee and President – Farm Equipment Sector, Mahindra & Mahindra

“Budget 2024 balances fiscal prudence with growth and sets the tone for the next wave of reforms for the growth of the country. It facilitates all the key elements to sustain the high growth of Viksit Bharat and primarily that of the agri economy, with a focus on the country’s youth, its farmers, women and the weaker sections of society. This is in the areas of skilling, employment and higher education. With a 4% increase in allocation for rural development at Rs. 2.66 lakh crore and a 5% YoY increase in allocation for agriculture and allied sector of Rs. 1.5 lakh crore, this budget will strengthen the 'Annadata' – our farmers, the backbone of our nation, while providing a much-needed fillip for growth of the overall economy.”

Aditi Nayar, Chief Economist, Head of Research and Outreach at ICRA

“The Union Budget kept the capital expenditure unchanged and pared the fiscal deficit to 4.9% of GDP in line with ICRA's estimates, although the cut in borrowings is smaller than what we had expected. The anticipated reiteration of the reduction in the fiscal deficit to below 4.5% of GDP in FY2026 is welcome. Interestingly, the new medium-term fiscal consolidation path has been linked to a reduction in the debt/GDP ratio instead of continued compression of the fiscal deficit/GDP ratio. This will allow the Government flexibility to chart an appropriate fiscal course that builds in higher capital spending as well as support to meeting the climate goals in a fairly uncertain global environment."

Harsh Shah, CEO, IndiGrid

“We welcome this significant change in the rationalization of the long-term capital gain taxation for Business trusts in this budget. InvITs/REITs getting taxed at parity with equities will enhance their attractiveness for investors and will strengthen their position as platforms providing superior risk-adjusted returns. We believe that this will also enable InvITs and REITs to become part of stock exchange indices, which will add significant liquidity and momentum.”

Sanjay Gupta, Chairman & Managing Director of APL Apollo Tubes

"As the Chairman & Managing Director of APL Apollo Tubes Limited, I am thrilled by the government’s forward-looking budget and its unwavering commitment to infrastructure development. The recent announcements signal a new era of growth and progress for our nation.

First and foremost, the allocation of resources toward infrastructure projects is a game-changer. The infusion of funds into roads, bridges, railways, and urban development will not only enhance connectivity but also create a ripple effect across industries. For us at APL Apollo, this translates into exciting opportunities. Our structural steel business, deeply intertwined with infrastructure projects, stands to benefit significantly. As we continue to provide high-quality structural steel solutions, we are heartened by the government’s vision. Robust infrastructure demands robust materials, and APL Apollo is poised to play a pivotal role.

Furthermore, the recent launch of the PM Surya Ghar Muft Bijli Yojana—an initiative to install rooftop solar plants for 1 crore households—aligns perfectly with our commitment to sustainability. Clean energy solutions are essential for a greener future, and APL Apollo is proud to contribute.

As we move forward, APL Apollo stands ready to support the nation’s ambitions for infrastructure. We’re committed to building a stronger, greener India—one steel beam at a time."

Rahul Garg, CEO & Founder, Moglix

"The removal of angel tax is a welcome move for India's startup ecosystem. This, coupled with the establishment of a ₹1,000 crore VC fund for the space economy, will foster innovation. The budget’s focus on manufacturing, with the introduction of plug-and-play industrial parks, is progressive. MSMEs will benefit significantly from the credit guarantee scheme, new assessment models by PSU banks, and increased Mudra loan limits. The substantial allocation of ₹11 lakh crore for infrastructure, especially nature resilient, is crucial for building a Viksit Bharat. The strategic shift towards nuclear energy as a major power source is visionary. Finally, the emphasis on cultural heritage through the development of the Vishnupad, Mahabodhi temple corridors, Rajgir, and Nalanda is a welcome addition.”

Akshit Bansal, CEO & Founder, Statiq

"Statiq welcomes the 2024 Union Budget's focus on employment and skilling, manufacturing and services, energy security, infrastructure, and innovation. These priorities align perfectly with our vision of a sustainable, green energy future. The waiver of import duties on key minerals like lithium is a significant step forward, expected to lower the manufacturing costs of EV batteries and, ultimately, reduce EV prices for consumers. This move will accelerate the adoption of electric vehicles across the nation. The emphasis on skilling and employment will create a robust workforce ready to support the expanding EV industry, fostering innovation and sustainable growth. By boosting manufacturing and services, the government is paving the way for a stronger, more resilient EV infrastructure. Moreover, the focus on energy security will ensure a stable and reliable energy supply, critical for the widespread implementation of EV charging networks. Statiq is optimistic about the positive impact these measures will have on our mission to drive India towards a cleaner, greener future."

Gyanesh Chaudhary, CMD, Vikram Solar

"The Union Budget 2024 has positioned India as a frontrunner in the global solar energy landscape. By allocating a substantial Rs. 7,327 crore for solar projects and introducing initiatives like the PM Surya Ghar Muft Bijli Yojana, which aims to provide free electricity to one crore households, the government has demonstrated a strong commitment to clean energy. This budget is a catalyst for the growth of the Indian solar industry, empowering millions of households with access to affordable and clean electricity. Moreover, by supporting ancillary sectors like pump storage and creating a conducive environment for innovation through tax incentives for solar cell and panel manufacturing, the budget has laid a robust foundation for India's energy transition."

Harry Bajaj, Founder and CEO, Mobec

"Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, demonstrates a strong commitment to India's energy transition and sustainable development. The introduction of the PM Surya Ghar Muft Yojana, providing rooftop solar panels and up to 300 units of free electricity to 1 crore households, is a significant step towards democratizing access to clean energy. Additionally, the focus on advanced ultra-supercritical thermal power plants and critical mineral recycling will bolster our green infrastructure. The energy audit and financial support for MSMEs will drive the adoption of cleaner energy sources in key industrial clusters. These initiatives not only align with Mobec’s vision of a sustainable future but also create a robust ecosystem for green innovation and energy efficiency in India."

Srivatsan Iyer, Global CEO, Hero Future Energies

“I would like to congratulate the Government for presenting a visionary Budget that focuses on sustainable and inclusive economic growth. I particularly welcome several announcements that reflect the Government’s continued support for the renewable energy sector. The impetus of PM Surya Ghar Muft Bijli Yojana will help fast-track nationwide adoption of rooftop solar, helping expand our overall RE capacity. The proposed investment in Pumped Storage programs is a much-needed step that will ensure smoother integration of growing RE, leading to a more reliable supply of green power and grid stability. The focus on transitioning hard-to-abate industries to greener alternatives will catalyze the C&I sector’s journey towards net zero. The introduction of a taxonomy for climate finance will help attract much-needed capital for boosting climate resilience. Finally, the expanded duty exemptions will also help propel the RE sector ahead. This is a positive budget for the sector that should help continue the momentum of India’s energy transition and Hero Future Energies remains committed to partnering with the Government in enabling this mission. “

Amit Uplenchwar, Director, Kalpataru Projects International

"Energy security and infrastructure have been highlighted as top priorities in the budget proposal by the Hon’ble Finance Minister. Alongside the allocation of INR 11 lakh crore for capital expenditure, the government has pledged to maintain strong fiscal support for infrastructure investment. The provision of INR 1.5 lakh crore for long-term interest-free loans to states for infrastructure development is a positive announcement that will significantly boost state-level projects. It is encouraging to see the government promoting niche areas in the renewable energy ecosystem, such as pumped storage hydro projects and modular nuclear reactors. Moreover, the commitments to enhance private investment in the sector through viability gap funding, enabling policies and regulations, and a market-based financing framework will attract private capital and stimulate business growth within the domestic market. A big thumbs-up to this futuristic budget!"

Meenu Singhal, Regional Managing Director, Socomec Innovative Power Solutions, Greater India

“Today’s budget announcement marks a pivotal moment for India with funding focus on 9 priorities including Productivity and resilience in Agriculture, Employment & Skilling, Human Resource Development and Social Justice, Manufacturing & Services, Urban Development, Energy Security, Infrastructure, Innovation, Research & Development and Next Generation Reforms generating ample opportunities for all.

This budget paves way for a significant growth towards a 'Viksit' Bharat. With one lakh crore fund being allocated for research and innovation, it will help in providing a substantial sustainable growth opportunity for our country by 2047. The policy highlighting on the use of appropriate energy transition will help in balancing the imperatives of employment leading to a more organized growth and environmental sustainability.

The budget’s emphasis on providing skilling programs will empower the youth to obtain quality employment opportunities. We appreciate the government’s move to reduce the corporate tax for foreign companies from 40 percent to 35 percent. This endeavor will improve the overall business environment, making it conducive to foreign direct investments into the country, which will create more employment opportunities for the youth and stimulate economic growth. The Angel Tax abolition would also supercharge the startup ecosystem”.

Satish Kumar Agarwal, CMD, Kamdhenu Group

"The budget, with its nine priorities, presents a comprehensive roadmap for Viksit Bharat. The allocation of 10 lakh crore for the construction of one crore houses for the urban poor and the announcement of variable gap funding support for the development of rental housing with dorm-like accommodation for industrial workers in PPP mode will lead to a significant boost to the housing sector.”

Raman Bhatia, Founder & MD, Servotech Power Systems

"The Union Budget 2024 was built on the foundation of Viksit Bharat. A strong focus was put on solar energy. The remarkable achievement of PM Surya Ghar Muft Bijli Yojana, with 1.28 crore registrations and 14 lakh applications, reflected the growing public awareness and alignment with the government's vision of a solar-powered India. As a leading solar panel manufacturer, this motivates us to make solar energy more adaptable, affordable, and accessible nationwide. The exemption of customs duty on lithium,  a crucial mineral used in the renewable energy sector, will reduce costs, making lithium-based technologies more affordable. The pumped storage policy, which includes pumped storage projects for electricity storage, will facilitate the smooth integration of the growing share of renewable energy into the overall energy mix, paving the way for a sustainable energy future. Imposing customs duty on the import of solar glass for solar cell and module production will promote domestic manufacturing and boost the economy. The increase of BCD on non-biodegradable PVC flex banners from 10% to 25% is a commendable step towards environmental conservation. Power projects, including the setting up of a new 2400 MW power plant at Pirpainti, Bihar, will add Bihar to the category of solar-powered states, overall enhance the power quotient, add to the existing power capacity and create jobs. Overall, the budget highlighted the remarkable changes that will contribute to the development of a nation we all envisioned."

JB Singh, Director, MOVIN Express

"This year’s Budget is a major step towards supporting employment and skill development, with a strong focus on infrastructure and the growth of MSMEs. The new credit guarantee scheme for MSMEs will simplify access to loans, while the updated assessment model and credit support during tough times will further assist businesses. The creation of twelve new industrial parks will greatly improve infrastructure and boost economic growth. Additionally, the reduction of customs duties on vital minerals like lithium and cobalt will boost the electric vehicle and battery storage sectors. These initiatives have the potential to position India as a global leader and strengthen domestic logistics infrastructure."