Industry hails Budget 2024-25, terms it as game changer for economic growth

New Delhi: The Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman on Tuesday, has garnered positive reactions from industry leaders who highlight its comprehensive approach to fostering economic growth, ease of doing business and structural reforms.

Sanjiv Puri, President of the Confederation of Indian Industry (CII), lauded the budget for its wide-ranging investments across multiple sectors. He emphasized the budget's focus on simplifying business processes and legislative frameworks.

Puri said, "It has brought in a lot of investments into a number of sectors right from agriculture, and manufacturing to services. A lot of focus is on ease of doing business, and a lot of areas are getting simplified. The Finance Minister also spoke about a comprehensive review of Tax legislation, to simplify it."

"A very strong signal for greater ease of doing business and a very strong signal to bring in reform at the state level also. And very importantly the next generation reforms, look at all the factor costs, I think these are some of the very important, very strong statements, very strong announcements that are made," added Puri.

Anshuman Magazine, Chairman and CEO of CBRE for India, South-East Asia, Middle East, and Africa, highlighted the significance of digitizing land records.

He said, "One of the big things was the digitization of land, she (Nirmala Sitharaman) talked about Aadhar for land and land is an extremely important ingredient not only for development for housing but also manufacturing. That will make a big difference because if it is digitised it reduces litigation."

He added, "If you look at our courts, a huge amount of litigation is land disputes. It will also bring in investments, it will also increase taxation collection for the government."," noted Magazine.

Niranjan Hiranandani, Chairman of Hiranandani and NAREDCO, expressed enthusiasm for the budget's focus on fiscal incentives and structural reforms aimed at employment-centric sectors. He emphasized the government's strategic emphasis on youth employability through private sector internships, salary support, and CSR-funded training.

He said, "The monumental allocation of Rs 10 lakh crore under the PMAY Urban Scheme, aiming for 3 crore houses, alongside the focus on rental housing through dormitories in industrial parks via the PPP model, and the sanctioning of 12 new industrial parks, underscores a robust vision for urban development."

"With sustained infrastructure impetus, reflected in the Rs 11.11 lakh crore Capex allocation, we anticipate a significant boost in affordable rental housing for industrial labourers," Hiranandani added.

Shishir Baijal, Chairman and Managing Director, Knight Frank India said the Budget shows the government was committed to infrastructure and social development.

"We welcome the announcements presented today in the Union Budget by the Honourable Finance Minister. The Union Budget for FY 2024-25 has further strengthened the government's commitment towards long-term social and infrastructure development. The 11.1 lakh crore outlay for capital expenditure, which has risen from 3.3% of GDP in FY 2023-24 to 3.4% in FY 2024-25, will continue to support the agenda for the development of railways, roads, and overall logistics infrastructure in the country. The 12 industrial park projects identified under the National Industrial Corridor Development Program are massive undertakings with the potential to grow economic hubs and boost real estate development along their alignment," he said.

The Union Budget 2024 presented in Parliament on Tuesday was Finance Minister Nirmala Sitharaman's seventh consecutive budget. 

B Ravi Pillai, Chairman of the RP Group, has lauded the Union Budget for 2024-25, highlighting its strong focus on employment creation, skill development, and agricultural enhancement.

Pillai emphasized the government's commitment to job creation through its comprehensive scheme to provide internships in 500 top companies for one crore youth over the next five years. "This initiative will offer invaluable exposure to a real-life business environment for 12 months," he noted. He also praised the provision allowing students to access loans of up to Rs 10 lakh directly, which he believes will significantly aid in skill development and enhance job prospects.

The budget's emphasis on upgrading Industrial Training Institutes (ITIs) is another area of appreciation for Pillai. "The upgradation of ITIs is expected to bring more skilled labour into the market and improve the job capabilities of Indian workers," he remarked.Pillai also welcomed the government's support for the agriculture sector, particularly its focus on natural farming with reduced chemical usage.

Dr Azad Moopen, Founder & Chairman, Aster DM Healthcare too lauds the union budget saying that it provides a much needed impetus to advancing employment opportunities and youth upskilling, supported by focus on comprehensive development for the country. Although healthcare did not seem to have a major focus this time, it is promising to see the 12.5% hike in budget allocation for the sector at Rs. 89,287 crores as compared to the last Budget, he said. 

In a period of maintaining the status quo, the government is taking bold strides with initiatives outlined in the Interim Budget 2024, including the establishment of new medical colleges, the promotion of vaccines for cervical cancer, expanded maternal and child care schemes, and the innovative “You Win” platform for immunisation, Moopen said.

Additionally, the proposed reduction in customs duties on X-ray tubes and flat panel detectors for domestic X-ray machine production, alongside the exemption of three cancer medicines from customs duty, marks a significant relief for cancer patients nationwide. This progressive budget underscores a commitment to fostering inclusive growth within the healthcare sector, striving to bridge the rural-urban divide and ensure equitable access to essential services, he added.