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Industry leaders react positively to the interim budget 2024-25
Industry News- Feb 01,24
The Interim Budget also contained a number of announcements and strategies indicating directions and development approach for making India Viksit Bharat by 2047. Here are the reactions from the industry leaders on the interim budget 2024-25.
Building on the massive tripling of the capital expenditure outlay in the past 4 years resulting in huge multiplier impact on economic growth and employment creation, the Union government, through the interim budget 2024-25, has increased the capex outlay for the next year by 11.1 per cent to Rs 11.11 trillion. This would be 3.4 per cent of the GDP. The Interim Budget also contained a number of announcements and strategies indicating directions and development approach for making India Viksit Bharat by 2047. Here are the reactions from the industry leaders on the interim budget 2024-25.
The Union Budget promises to drive development and innovation, taking India’s infrastructure to the next level and by bringing together its transportation ecosystem for rail, road, aerospace and more to benefit individuals and businesses alike, commented Olivier Loison, Managing Director, Alstom India. He said, "The continued focus on infrastructure with an increased outlay of Rs 11.11 lakh crores in FY25 will play a key role in boosting India’s economic growth. As the frontrunners in sustainable mobility and drivers of India’s rail revolution, the announcement of metro and NaMo Bharat expansion, three major railway corridor program and transformation in existing rail ecosystem will create opportunities for us to introduce world class rolling stock, rail equipment & infrastructure, signalling and services in India. It will not only strengthen the overall efficiency of transportation network but also improve the reliability and safety of passenger trains."
According to Dr Pramod Chaudhari, Executive Chairman, Praj Industries, ‘Amritkal as Kartavyakal’ quoted by Finance Minister during Interim Budget 2024 is very opportune for realising the vision of Vikasit Bharat by 2047. "Continued emphasis on green growth during this budget augers very well for achieving the Net Zero Goal by 2070. The announcement of a new scheme for propagating Bio-Manufacturing to introduce environment-friendly alternatives on regenerative principles is a welcome step for the inclusive growth of the farming community. This will further boost Bio-economy’s contribution to the nation’s GDP in times to come," he said.
The Interim Budget 2024 is expected to create a conducive environment for business growth, innovation, and socio-economic development. Shishir Joshipura, CEO & MD, Praj Industries, added, "The announcement of financial assistance for biomass collection and equipment as a part of the Budget is an excellent step that will help build a resilient feedstock supply chain. This will ensure the availability, accessibility, and affordability of bio-based feedstocks, inspiring investors' confidence in setting up Bio-refineries. Continued focus of leveraging captive resource i.e Bioenergy in the energy mix is aligned with vision of Energy Independence by 2047. These green growth initiatives will facilitate energy security while achieving the climate action objectives of the nation."
The interim budget continues to uphold India's impetus on inclusive and sustainable growth, backed by responsible and efficient governance. "It was a pleasant surprise to see aggressive fiscal deficit goals and stable macroeconomic performance, while furthering capex on physical infrastructure as well as DPI. The one-lac crore support to technology & innovation is a very thoughtful and a compelling idea that will propel India on course to Viksit Bharat. Likewise is the focus on farm sector and MSMEs. Overall, an outstanding interim budget," said Kamal Bali, President & MD - Volvo Group in India.
The focus on solar initiatives in the interim budget is a good move toward promoting green energy. Preeti Bajaj, CEO, Luminous Power Technologies, commented, "Solar power not only ensures household electricity access but also aligns seamlessly with our enduring commitment to environmental sustainability. The 'Panchamrit' goals highlight the government's dedication to strengthening resource-efficient growth, thereby supporting energy security in terms of both availability and affordability. The visionary approach of rooftop solarization benefiting one crore households is noteworthy, reflecting a holistic vision for a sustainable future. Also, the commitment to creating employment opportunities for the youth, particularly those with technical skills, resonates deeply with our objective of cultivating a skilled and empowered workforce in the energy sector. In essence, these initiatives collectively set the stage for a transformative and sustainable energy landscape, aligning with our vision for a greener and brighter tomorrow."
Sushil Virmani, Managing Director, Best Power Equipments (BPE), said, "As we navigate the landscape of Union Budget 2024, it's crucial for the government to accentuate and foster an environment for both local and global investments in semiconductor technology, AI, and digital platforms. This strategic focus aligns with our industry's evolution. Simultaneously, we recognize the imperative to integrate these cutting-edge technologies into our educational curriculum, ensuring a skilled workforce. This synergy is pivotal for propelling our nation towards the coveted 7 trillion economy by 2030."
Stating the interim budget 2024-2025 is a growth oriented with a clear roadmap for a new and empowered India, Ashish P Dhakan, MD & CEO, Prama Hikvision India Pvt Ltd, said, "This budget has the vision of ‘Jan Kalyan’ (Public Welfare) and Viksit Bharat (Developed India) with the idea of inclusive growth. It has a clear imprint of the government’s mantra ‘Sabka Saath, Sabka Vikas, and Sabka Vishwas’. It is a visionary budget with special focus on infrastructure development, inclusive growth and skilling youth. The agenda of empowering Amrit Peedhi (the emerging generation) through multiple schemes and initiatives (Skill India Mission, PM Mudra Yojna and Start-Up India) is quite evident in the budget. These initiatives are assisting our youth and entrepreneurs while delivering amazing results."
He added, "The Indian electronic security industry is hoping for more concessions and tax rebates for strengthening the manufacturing sector. This will help to enable the latest technologies and security products for the greater good. We sincerely hope that the Finance Minister would consider the key concerns of the key electronic security Industry stakeholders in the future policies and tax reforms. We are sure that the government will continue to support the Make-in-India 2.0 with a clear roadmap and policy structure. The electronic security industry is expecting the continued government support to contribute significantly to the nation’s economic growth."
Green energy
The interim budget has sustained focus on the energy transition initiatives. "Given that it is an interim budget before the elections, the budget, while not going aggressive on announcements, has ensured continued steer with right nudges. Notable announcements are with respect to rooftop solarization and mandatory blending of CBG in PNG and CNG, which can significantly boost the market size for these businesses in the immediate future and help build momentum. Another interesting scheme to watch out for will be related to bio-manufacturing and bio-foundry – there is substantial potential for bio-plastics, bio-polymers in India, and it will help us move ahead in this nascent but rapidly developing global industry. Viability gap funding for Offshore wind is a step with the right intent; however, the industry will need more to harness the full potential of the segment. Similarly, the budget makes several other right mentions like a push for E-buses, setting up of coal gasification and liquefaction capacity, and doubling of spend on the National Green Hydrogen Mission. All positive signs, however, we expect more to be there in the main July budget and are looking forward to it," commented Sachin Kotak, Partner, Bain & Company.
According to Niranjan Kirloskar, Managing Director, Fleetguard Filters Pvt Ltd, the Finance Minister has proposed a well-crafted budget that balances growth and social development. He said, “The Finance Minister proposed a well-crafted budget that balances growth and social development. The focus on infrastructure development, with the Interim Budget 2024 proposing to raise capital expenditure—for the fourth consecutive year—by 11.1% to ?11.11 lakh crore, which is 3.4% of the GDP, presents a significant opportunity for the auto and construction industry. The impetus on Research and Innovation for catalysing growth, employment, and development is a welcome move for a Viksit Bharat. With reforms supporting the adoption of sustainable mobility and skill development, India is poised to become a global leader in automotive technology.”
Mayuresh Raut, Co-founder & Managing Partner, Seafund, commented, "The scheme for deeptech in defence will not only help the government start addressing the Make in Bharat initiative through indigenous technologies in defence but also unlock these technologies to other civilian uses. Deep tech focused funds like ours will definitely benefit from enabling initiatives like this. The solar rooftop schemes will be a big boost to not only meet our goals for clean energy, but will also set up India to start addressing the EV charging infrastructure that is currently holding back wider adoption of EVs. It will also create enormous jobs for installation, manufacturing and maintenance of solar infrastructure and a secondary effect will be opportunities available for startups to build on this."
Mayuresh Raut added, "Bio-manufacturing, bio foundry, bio-degradable polymers, bio polymers and bio agricultural inputs are all critical areas that India needs to address, given the fact that our cities continue to figure on the most polluted regions in the world. This will enable critical technologies to effectively use waste from agri-produce and also encourage innovations in our CSIR labs in these areas towards commercialisation. Extension of tax benefits for sovereign wealth funds expiring on 31st March 24 to 31st March 25 is a good signal from the government to indicate that there will be continuation of beneficial policies and friendly institutional investor policies."
According to Rajesh Kumar Mediratta, MD & CEO, Indian Gas Exchange, the budget has laid a roadmap for ensuring a green gas-based economy in India. "The policy mandating phased blending of CBG for CNG and PNG will help in greening the gas supply chain and balancing the demand-supply for clean fuels. Financial assistance for procuring biogas aggregation machinery would tremendously help in energizing the biofuel segment. We feel this budget has created a conducive environment for the trading of clean and eco-friendly biofuels, in alignment with India’s net-zero goals," he added.
Logistics overdrive
While doubling the number of airports to 149 will energise the aviation sector, the establishment of new infrastructure corridors for ports, energy, minerals and cement will boost manufacturing and supply chains. "As a manufacturing-focused company, we welcome the government's aim to enhance the EV ecosystem through manufacturing and charging infrastructure support. The proposed bio-manufacturing scheme for green growth aligns with our sustainability mission. It is heartening that policy priority will be given to provide training for MSMEs like ours to build global competitiveness. Preparing the financial sector to meet MSME investment needs is key. The upcoming years will see unparalleled development as we strive for a developed India by 2047. There are abundant opportunities ahead and we are poised to fulfill the aspirations of our youth," stated Rahul Garg, Founder and CEO, Moglix.
Rahul Garg added, "The trade corridor connecting India, the Middle East and Europe will be transformative for the manufacturing sector. Our vision is for prosperity in sync with nature, offering opportunities for all. Guided by reform, perform and transform, our government will adopt policies fostering growth, improving productivity and increasing opportunity. We look forward to timely and adequate financing, relevant technologies and support for MSMEs. With the motto of Sabka Saath Sabka Vikas, we are committed to an inclusive Viksit Bharat by 2047. Our optimistic and aspiring youth will be key in this journey. Importantly, the increased infrastructure outlay to Rs 11.11 lakh crores in FY25 will provide a significant boost to the manufacturing and logistics sectors."
Emphasising on the transformative impact of budget 2024-25 on logistics, Lancy Barboza, MD, Flomic Global Logistics Ltd, said, "The PM Gati Shakti plan's focus on economic railway corridors aligns with our commitment to innovative solutions, promising efficiency and cost reduction. The one lakh crore rupee corpus for interest-free loans fuels private sector R&D, resonating with our pursuit of cutting-edge technology in logistics. The government's eco-friendly bio-manufacturing initiative aligns with our dedication to sustainable practices in the supply chain. These budgetary measures open avenues for Flomic Global Logistics to contribute significantly to India's efficient, technology-driven, and environmentally responsible logistics landscape."
Interim budget 2024
Budget 2024-25
Budget
finance minister
Nirmala Sitharaman
Viksit Bharat
Olivier Loison
Alstom India
railway corridor program
Dr Pramod Chaudhari
Praj Industries
Shishir Joshipura
Kamal Bali
Volvo Group
Preeti Bajaj
Luminous Power Technologies
Sushil Virmani
Best Power Equipments
Niranjan Kirloskar
Fleetguard Filters
Mayuresh Raut
Seafund
Rajesh Kumar Mediratta
Indian Gas Exchange
Rahul Garg
Moglix
Ashish P Dhakan
Prama Hikvision
Lancy Barboza
Flom
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