Business Leaders Across Industries React to Union Budget 2024

The entire nation eagerly awaited the announcement of the Union Budget 2024, a pivotal document charting the course for India’s burgeoning economy under the Modi 3.0 regime. Contrary to expectations of a budget solely focused on growth and development, this comprehensive budget addressed both growth and welfare. Finance Minister Nirmala Sitharaman outlined four focal areas: ‘Garib’ (Poor), ‘Mahilayen’ (Women), ‘Yuva’ (Youth), and ‘Annadata’ (Farmer).

To ensure the all-around development and upliftment of these pillars of the Indian economy, the government delineated nine budget priorities, serving as a roadmap towards a “Viksit Bharat” (Developed India). This budget not only reinforced the government’s commitment to holistic development across all sectors but also underscored its dedication to a sustainable future.

The announcement of the Union Budget 2024 sent ripples across financial markets and sparked a wave of enthusiasm. Numerous industry leaders across various sectors praised the strategic vision and anticipated impact of these announcements.

Here’s what the industry leaders had to say:

Providing an overview of the possible developments in the financial markets, Mr. Tarun Singh, Managing Director of Highbrow Securities said, “The Union Budget has impacted the buoyant stock market, but its effect feels more symbolic than substantial. The fundamental impact on investors will be negligible, as any changes in capital gains taxation will soon be factored into future plans. The market sentiment will remain conducive for investors. However, the budget’s opportunistic flavour cannot be ignored. On a brighter note, the budget’s incremental yet pivotal steps towards fostering an inclusive manufacturing and MSME landscape are commendable. The proposed initiative lays a sustainable and secure foundation for investors to explore emerging opportunities within this vital economic segment.

One of the key standout aspects of this budget is its respect for the existing consumption patterns. In the market realm, consumption is king, and any disturbance to this trend could ripple negatively across the economic spectrum. By preserving the status quo here, the budget has safeguarded the ongoing consumption story that fuels market growth. The Stock Markets, thus, can absorb minor setbacks and continue on a bullish path, backed by stable and robust consumer demand.

In my opinion, this budget is neither extravagant nor groundbreaking, but sometimes, not rocking the boat is an act of wisdom. This Union Budget may not sparkle with dramatic flair, but its understated elegance might very well be the unsung hero of our economic narrative this year. I am anticipating a favourable year ahead, with markets expected to benefit from sustained consumption and emerging opportunities in the revitalised MSME and Manufacturing sectors.”

Devam Sardana, Business Head, Lemonn, addressed the impact of LTCG and STCG changes on the financial markets, but provided a different viewpoint on the same. He said, “Lot of people asking the impact of STT, STCG and LTCG on the equity market participants but instead of the impact of direct factors, I believe the removal of indexation benefits on real estate, gold etc will have a major impact on the equity markets and participants (and that too a positive one). From a real estate standpoint, I see 3 major things:

Secondary market for real estate will be hit as sellers will be unwilling to absorb the full impact of the potential tax increase ( no indexation benefits)
Buyers looking for investing in properties ( beyond residential use) will step back a bit. The government recognises this and has therefore “urged” states to reduce the stamp duties
Potential cash transactions or share of cash in real estate might increase and this might lead to increased scrutiny of real estate transactions.
Overall, this makes real estate as an asset class less attractive compared to pre-Budget rules. Of course, if one is looking to re-invest capital gains from real estate in another property, there is no change for them. With regards to the question on STT, STCG and LTCG, there is minimal impact on the equity markets but when looked at the competitors of equity as an asset class namely gold, real estate – investors can breathe a sigh of relief!”
“We welcome the Budget 2024-25 as a people-friendly and pro-development budget. This year’s budget has paved the way for India by focusing on employment and skilling opportunities. We appreciate the various initiatives announced by the Honourable Finance Minister, focusing on the nine critical priorities—ranging from productivity and resilience in agriculture to next-generation reforms—demonstrating a comprehensive approach to fostering sustainable growth and development.
For future leaders, these priorities offer a robust foundation to build upon and will create dynamic opportunities for innovation and leadership in these vital sectors. We believe that the budget, along with conducive policies and regulatory reforms, will facilitate research and development, and foster a culture of innovation, across sectors. With increased investment, the budget is poised to enhance employment opportunities and spur rising demand, especially for skilled leadership in these sectors” said Uday Chawla, Managing Partner, TRANSEARCH India.
Prateek N Kumar, Founder and CEO, NeoNiche Integrated Solutions said, “The recent Budget represents a comprehensive strategy aimed at fostering growth across various sectors of society. By focusing on employment, skilling, MSMEs, the middle class, the underprivileged, women, youth, and farmers, it presents a holistic and inclusive approach. The nine priorities outlined for the coming years—productivity and resilience in agriculture, employment and skilling, manufacturing and services, urban development, energy security, infrastructure, innovation and R&D, and next-generation reforms—underscore a commitment to well-rounded development. This emphasis on job creation and boosting consumption is set to significantly benefit the consumer goods, real estate, and automotive sectors. It’s an encouraging roadmap for our nation’s future.”
Interestingly, Mr. Ashish Singhal, Co-founder, CoinSwitch, had a different outlook of the 2024 Union Budget. “We welcome the Union Budget 2024-25 as a pro-development budget bringing great news for startups. As a founder and angel investor, I’m thrilled that the Angel Tax has been abolished. This will significantly bolster the entrepreneurial ecosystem in India. The emphasis on digital public infrastructure and the digitalization of the economy will greatly benefit tech startups like ours, which are focused on developing population-scale apps for Indians.
Regarding crypto, we had hoped the government would reduce taxation to align it with other asset classes. Unfortunately, this has not been addressed, representing a missed opportunity to support startups and investors in the crypto space. We are still examining the finer details of the budget to fully understand its broader implications,” said Singhal.
Roland Landers, CEO, All India Gaming Federation, welcomed the focus on skilling in the Budget 2024. He said, “There remains a significant skill gap in India’s gaming industry, and the increased emphasis on skilling initiatives is a promising step towards bridging this gap. Centrally sponsored schemes for skilling youth, women-focused programs, the establishment of industrial training institutions, and the provision of internships are all set to create a more skilled workforce. These initiatives will play a crucial role in helping India achieve its Vision India@2047.”