Industry Reactions on Union Budget 2024

#Budget2024WithSMEStreet #BudgetWithSMEStreet

Get the latest insights on the Union Budget 2024 with SMEStreet's extensive coverage, highlighting industry reactions. Key measures include a ₹1 lakh crore fund for tech innovation, support for urban and rural housing under PM Awaas Yojana, advancements in AI and IoT for agriculture, and inclusive growth initiatives for women and MSMEs. Learn how these initiatives aim to transform India into a developed nation by 2047. 
On this live blog thread, stay tuned for the latest and diversified industry reactions on FM Smt. Nirmala Sitharaman's Union Budget Speech from the Lok Sabha (Indian Parliament) earlier today. 

Jul 23, 2024 19:15 IST
Budget 2024 Boosts MSMEs with Technology and Skilling Programs
Quote by Arundhati Bhattacharya Chairperson & CEO, Salesforce India

“The Budget 2024-25 presented was a balanced one, with a distinct focus on women, youth and job creation, emphasising the sustained efforts to generate ample opportunities for all. As the honourable Finance Minister mentioned, India's economic growth continues to be the shining exception despite global uncertainties and will remain so in years ahead. Initiatives towards skilling, boosting the participation of women in the workforce, driving the use of technology in agriculture and supporting SMEs that are the greatest employment generators are particularly notable. These measures provide the much-needed fuel to drive India’s economic growth.

The provision of Rs 1.48 lakh crore this year made for education, employment, and skilling is commendable. In addition, employment-linked skills are expected to benefit 2.1 lakh youths, particularly first-time job seekers. The proposed revision of the Model Skill Loan Scheme is also expected to help 25,000 students every year. Enhancing the Mudra loan amount to ₹ 20 lakh is a step in the right direction. Developing a new credit assessment model, based on the scoring of digital footprints of MSMEs in the economy is expected to be a significant improvement over the traditional assessment of credit eligibility based only on asset or turnover criteria and will help cover MSMEs without a formal accounting system to access the same and drive true financial inclusion. It is also encouraging to note the intent to drive participation of women in the workforce. This has been backed up by provisions to set up hostels, establishing creches creating partnerships to organize women-specific skilling programs. A focus on geriatric care would have helped create more well-rounded benefits as women often need to drop out of the workforce in the absence of any infrastructural support for the same.

The depth of talent in India is well-recognised. To capitalise on this, incentives encouraging ease of doing business while exploring ways in which IT can be used for further formal job creation, such as improving citizen services, will address the needs of our large population resulting in improving standards of living and ensuring better targeting of subsidies.

The Budget has also taken steps to ease access to educational loans. Students will benefit from the e-vouchers for loans up to Rs. 10 lakh for higher education in domestic institutions. The new centrally sponsored scheme for 20 lakh youth to be skilled over 5 years is a welcome move. The proposal to upgrade around 1,000 industrial training institutes with hub and spoke arrangement will help elevate the quality and relevance of the courses and ensure that they meet industry standards. The course content is expected to be tailored to the needs of the industry, particularly emerging sectors. Stronger industry-academia partnerships will encourage wider and impactful reach.

The proposal to harness Digital Public Infrastructure to improve agricultural practices sets a great precedent for the digitisation of traditional sectors of our economy. Farmers can benefit from using data effectively for better credit risk assessment, soil analysis, and market conditions. It is hoped that more sustainable and scientifically advanced farming techniques would also find more takers through this route. One hopes the focus on technology adoption extends to other key sectors of the economy as a way to drastically enhance productivity and efficiency, besides spurring new and innovative business models.

The technology industry as well as the workforce will benefit from measures to simplify the tax regime and delays in payments of TDS up to their filing due date. The abolition of the Angel Tax for all classes of investors will also bolster the Indian startup ecosystem. Similarly, the Government’s endeavour to launch internship opportunities in 500 companies, extending to one crore youth over five years, will provide these interns with valuable exposure to real-life environments. The move to allow 10% of training costs to be allocated from CSR funds will help make this initiative viable for companies and students alike.

India has proven itself as a global hub for technology talent and emerged as a preferred destination for global capacity centres (GCCs). Taking steps to smoothen the path and also ensure ease of doing business will drive innovation from India.

Overall, the budget is a step in the right direction particularly driving job creation which is the need of the hour.”



Jul 23, 2024 17:43 IST
Women at Workforce gets New Boost in Budget 2024
Jaya Mehrotra, Founder, Women Leadership Circle, Leadership & Executive Coach

I applaud the decision to prioritize employment, skilling, and MSMEs. Setting up hostels and forging partnerships for women-specific skilling programs are pivotal steps in dismantling barriers and fostering inclusive growth.

This budget not only reflects a forward-thinking approach but also a profound understanding of the structural changes needed to empower women. By investing in these initiatives, we are paving the way for a more equitable and dynamic workforce, where every woman has the opportunity to thrive and lead. As part of an organisation working towards empowering women in the workforce, I am eager to collaborate on these transformative efforts and support the realization of this vision.
 



Jul 23, 2024 17:39 IST
Budget 2024 Enhances MSMEs with Customs Duty Rationalization
Quote on Union Budget by Mr. V. P. Nandakumar, MD & CEO at Manappuram Finance.
 
"Union Budget 2024-25 takes forward the measures announced in the Interim Budget outlining a roadmap for 'Viksit Bharat'. Nine priority areas identified in the Budget which include agriculture, education and MSME segments will facilitate skilling and employment generation while boosting manufacturing growth. Infrastructure push is reiterated with a Central govt capex outlay of 11.1 lakh crore and 1.5 lakh crore towards interest free capex grant for states. Special emphasis on rural roads augur well for rural incomes as hinterlands will be better connected to the mainland, helping farmers to effectively market their produce. This is good news for the transportation and logistics industry as well. Meanwhile, hike in Mudra loan limit and collateral free loans for small enterprises are big positives as this sector accounts for 45% of our exports. Rationalisation of customs duty on gold, silver, mobile phones and 23 critical minerals are beneficial to these industries. Abolition of angel tax will improve business climate. Personal income tax has seen some rationalisation although the expected changes did not kick in and disposable incomes will not be boosted to the expected levels. 
The budget proposals strike a fine balance between growth and fiscal prudence. The lower fiscal deficit target will reduce central govt debt and facilitate a sovereign rating upgrade apart from softening government security and corporate bond yields."



Jul 23, 2024 17:29 IST
MSME Clusters in Budget 2024 to Boost Manufacturing Sector
"The Union Budget 2024-25 provides significant support to the manufacturing sector, particularly through its focus on MSME clusters. The introduction of easy financing and credit guarantee schemes, along with the facilitation of collateral-free term loans for the purchase of machinery and equipment, will greatly enhance the manufacturers and suppliers network. These measures act as catalysts for the entire supply chain, driving growth and innovation. Additionally, the budget’s emphasis on employment in the manufacturing sector addresses a longstanding challenge, creating new opportunities and fostering a more robust workforce. For manufacturers like us, this budget is truly a blessing, offering the much-needed support to propel our industry forward."
Mr.Su Piow Ko, CEO at AET India





Jul 23, 2024 17:08 IST
Budget 2024 Boosts MSMEs with IBC Recovery Improvements
"The budget's initiatives to reduce stamp duty will lower costs for warehouses and other facilities, boosting infrastructure development. Increasing Mudra loan limits from 10 lakhs to 20 lakhs will enhance support for MSMEs, fostering sustainable growth. The setting up of an Integrated Technology Platform to improve the outcome under the Insolvency and Bankruptcy Code (IBC) will facilitate the recovery of outstanding for operational creditors too.
Furthermore, discouraging excessive speculation activity in the stock market will redirect energies towards other economic activities, contributing to a more sustainable growth of the economy." - Mahesh Fogla, Executive Director, Patel Integrated Logistics Limited.



Jul 23, 2024 17:05 IST
Budget 2024 Promotes MSMEs with E-Commerce Export Hubs
"The new credit guarantee scheme, enabling term loans for MSMEs without collateral, will help them invest in essential machinery and equipment, driving growth and competitiveness. Enhancing the MUDRA loan limit will allow more MSMEs to access crucial funds, fostering innovation and expansion.

The reduction of the turnover threshold for mandatory onboarding on the TREDS platform to Rs 250 crore will ensure timely payments and improved liquidity for MSMEs. Establishing e-commerce export hubs in a PPP model and providing financial support for multi-product food irradiation units will open new avenues for MSMEs and traditional artisans to access international markets, boosting their export potential.

Additionally, reducing BCD on key inputs such as rootstock, worms, shrimp, and fish feed to 5% will lower production costs for seafood exporters and incentivize value addition in these industries. These initiatives will create a more favourable business environment, driving export growth and economic prosperity. We look forward to working with our clients to maximize these policy benefits and contribute to India's export success." - Pushkar Mukewar- CEO and Co-founder, Drip Capital



Jul 23, 2024 16:47 IST
Budget 2024 Makes TReDS More Approachable
"With this budget's special focus on MSMEs and labour-intensive manufacturing, the government has unveiled a comprehensive package addressing financing, regulatory changes, and technology support for MSMEs to foster growth and global competitiveness. A crucial initiative is the introduction of a credit guarantee scheme for MSMEs in the manufacturing sector, which will facilitate term loans for machinery and equipment purchases without the need for collateral or third-party guarantees. This scheme, backed by a self-financing guarantee fund will esure substantial support.

Additionally, a new assessment model for MSME credit is being developed. This brings the credit analytics engine mechanism to the forefront. Banks will build in-house capabilities to evaluate MSMEs based on digital footprints, moving beyond traditional asset or turnover-based assessments. So MSMEs without formal accounting systems will get a better chance to improve their access to credit.

Furthermore, the scope of mandatory onboarding onto the TReDS platform will be expanded. By reducing the turnover threshold for buyers from 500 crore to 250 crore rupees, an additional 22 CPSEs and 7,000 companies will join the platform, enhancing MSMEs' ability to convert trade receivables into cash. Lastly, the development of DPI applications at a massive scale will drive productivity gains, business opportunities, and innovation in MSME credit". - Sundeep Mohindru, Promoter & Director, M1xchange



Jul 23, 2024 16:39 IST
Industry welcomes Technology Booster for MSMEs in Budget 2024
"We're pleased that this year's budget has prioritized MSMEs as anticipated. MSMEs are indispensable to India's transformational growth, and the expansion of the Mudra loan limit along with the establishment of the credit guarantee scheme signifies a commitment to creating an environment that fosters these enterprises, bridging credit gaps in underserved sectors. The Finance Minister has also instructed Public Sector Banks (PSBs) to develop new credit assessment models, moving beyond the traditional criteria of assets or turnover. These new models should incorporate technology-driven alternative data parameters to enhance financing options for MSMEs.

To stay ahead in technology and financing, the PSB Alliance initiative will aim to develop safer, more transparent, and more efficient financial services, ultimately boosting the inclusivity of the sector. Together, these measures will empower MSMEs to drive sustainable growth and innovation across the country." - Raja Debnath, Managing Director, Veefin Solutions Ltd.



Jul 23, 2024 16:31 IST
From Credit Guarantee to Manufacturing Boost MSMEs are on top Priority for Modi 3.0 Budget
“The budget demonstrates a strategic vision for comprehensive development, prioritizing nine key areas: agriculture, employment, social justice, manufacturing, urban development, energy, infrastructure, research and development, and next-generation reforms. This focus is poised to build a resilient and inclusive economy. 
A new credit guarantee scheme for MSMEs, with guarantees up to ₹100 crore, and higher MUDRA loan limits of ₹20 lakh will ease fund access and boost manufacturing growth. Reducing the TReDS onboarding turnover threshold from ₹500 crore to ₹250 crore expands MSMEs' access to timely financing. This budget reflects a forward-thinking vision for India's future, promoting productivity, resilience, and inclusive growth across multiple sectors. 
The allocation of ₹1.48 lakh crore towards education, employment, and skilling, along with the introduction of three employment-linked schemes—such as direct transfers of up to ₹15,000 to first-time employees and incentives for both employees and employers—will greatly enhance our workforce. The financial support for loans up to ₹10 lakh for higher education, the upgrade of 1,000 ITIs, and internship opportunities for 1 crore students showcase a strategic and inclusive approach to promoting growth. This initiative aims to build a strong foundation for the workforce of the future.
Furthermore, increasing women's participation in the workforce through dedicated hostels and skilling programs is a crucial step towards achieving gender equality and economic empowerment, paving the way for a more inclusive and diverse workforce.” - Girish Rowjee, Co-founder and CEO, greytHR. 



Jul 23, 2024 16:18 IST
MSME Credit and Youth Opportunities
Budget Quote on MSME schemes by Mr Ketan Mehta, CFO, CredAble
“We are delighted to see that the Union Budget 2024–25 has addressed many critical facets of the economy.
This year, the budget has truly put the spotlight on key issues facing the MSME sector in securing timely credit and has ushered in a plethora of opportunities for young entrepreneurs.
The government has proposed a new scheme under the Credit Guarantee schemes for MSMEs in manufacturing, providing MSMEs with collateral-free term loans for buying machinery and equipment. To further strengthen the financial stability of MSMEs, the limit for Mudra loans has been increased from INR 10 lakh to INR 20 lakh. Additionally, E-commerce export hubs will be set up to boost international trade. The government’s strategic move to provide internships and new schemes for the country’s youth, with a central outlay of INR 2 lakh crore, sums up its futuristic outlook.
The Union Budget has been extremely positive in recognising the role being played by MSMEs in India's present and future. It’s also encouraging to see the government’s move to incentivise existing businesses and abolish the angel tax for all classes of investors, which will further aid the acceleration and globalisation of the startup ecosystem in the country.”