Pune’s Education, Real Estate, and Business Sectors Weigh in on Budget 2024
Pune, 23rd July 2024: Union Finance Minister Nirmala Sitharaman presented the Budget 2024 today. Both individuals and the business community are now analyzing what the budget holds for them.
Here’s what Pune’s education, real estate, hospital, and business communities have to say:
Baba Kalyani, Chairman & MD, Bharat Forge Ltd: The budget lays strong emphasis on strengthening the fundamental pillars that would propel Indian economy towards a Viksit Bharat. The focus on natural farming and agricultural productivity, incentivizing job creation and employment, continued impetus to bolster MSMEs, modernizing urban cities and policies aimed at accelerating India’s energy transition will have a long-standing affect that would significantly improve economic resilience in an otherwise volatile world economy. I would also particularly commend the fresh-thinking and approach of the government in ‘Skilling’ and ‘Urban development’ both of which demanded urgent attention. Infrastructure creation, which is a direct contributor to India’s competitiveness and positioning as a favoured investment destination, has been the hallmark of Prime Minister Modi’s governments; continued attention towards roads, ports, plug & play industrial parks, irrigation projects and affordable housing is noteworthy. Special thrust given on promoting Tourism is a welcome move which would have a great multiplier effect on local economies. I greatly appreciate the operationalization of Anusandhan NRF and the exclusive venture-fund for Space segment. More importantly, the 1-lakh crore financing pool to bolster private sector driven research and innovation at commercial scale will have a great impact in transitioning India towards a Product’s Nation in the long-term.
While the budget allocation for Defence Industry is in expected lines, creation of the Critical Minerals Mission and articulation of India’s strategy on Small Modular Nuclear Reactors will go a long way in bolstering the AatmaNirbhar Bharat agenda. We are all greatly inspired by the vision for a Viksit Bharat by 2047 and I am confident that these initiatives collectively signal a robust blueprint for India’s progressive, integrated and inclusive development.”
Prakash Chhabria, Executive Chairman, Finolex Industries Ltd: “The Union Budget 2024 presented by Finance Minister Nirmala Sitharaman sets a clear roadmap for India’s inclusive growth. The government’s focus on manufacturing, agriculture, and infrastructure development is commendable. The credit guarantee scheme for MSMEs and the establishment of e-commerce export hubs will significantly boost our industrial capabilities. For the agricultural sector, initiatives like digital crop surveys and promotion of natural farming align well with sustainable practices.
The budget’s emphasis on infrastructure, including the PM Awas Yojana’s ambitious housing targets and urban development focus, presents great opportunities for the pipe and fittings industry. We applaud the government’s commitment to water management, promoting water supply, sewage treatment, and solid waste management projects in 100 large cities. This initiative, along with plans for treated water reuse, demonstrates a holistic approach to water resource management. The measures for empowering women and youth, combined with substantial rural development allocation, promise inclusive growth. We look forward to contributing to these progressive initiatives as we work collectively towards building a more prosperous India.”
Dr Ajit Ranade, Vice Chancellor of Gokhale Institute of Politics and Economics: The Union Budget’s focus on employment creation, apprenticeships, and student loans are welcome initiatives. Additionally, collateral-free loans for small businesses will stimulate growth. India’s long-term economic development hinges on investment in infrastructure and human capital. The initiatives on skilling, job creation, and support for small businesses align well with the goal of sustained economic growth.
Vidyadhar Purandare, Secretary, Software Exporters association of Pune (SEAP): The budget looks encouraging and an attempt to build a strategy for the Vikasit Bharat. IT Industry point of view abolishing angel tax for all classes of investors is a welcome move and will greatly help the start up ecosystem. Further India’s foreign companies get corporate tax relief from 40% to 35%. This will benefit foreign owned foreign controlled companies and may attract investment and encourage investors. The salaried get some relief on account of increase in the limit of standard deductions. What I would have liked to see in the budget was some strategy on the sez scheme and comment on the DESH bill. The sez industry has benefited eagerly waiting on relief to perform exports to DTA units in INR. An infrastructure fund for various industry hubs especially IT hubs in the country will greatly help address the last mile infrastructure challenges all major IT hubs in the country have been facing (Bengaluru, Pune, Hyderabad, Chennai etc.)
Dr Pramod Chaudhari, Executive Chairman, Praj Industries Limited: Union Budget brings a strong focus on Garib, Yuva, Annadata & Nari which will fructify in all-inclusive growth. Specific Policy documents outlining appropriate energy transition pathways to strengthen India’s Energy Security while ensuring balance in employment, growth, and environmental sustainability is a valiant initiative. Special emphasis on augmenting the service and manufacturing sector, specifically setting up twelve industrial parks with plug-n-play infrastructure will facilitate Viksit Bharat’s mission. Financing scheme for Private sector-driven research and innovation at commercial scale is a welcome step towards knowledge economy.”
Abrarali Dalal, Director & CEO, Sahyadri Hospitals: “The government has allocated ₹89,287 crore for the development, maintenance, and improvement of the country’s healthcare system, a slight increase from ₹88,956 crore in FY24. The union budget’s removal of basic customs duty on three critical cancer treatment drugs and the reduction of duties on medical technologies such as X-ray tubes and flat panel detectors will notably enhance the affordability and accessibility of healthcare, particularly for advanced cancer treatments. Through the ‘Anusandhan National Research Fund’ the increased research funding will foster innovation, development and improved treatment options in the healthcare sector. Although these initiatives show promise, there is still potential for further enhancements to fully bolster India’s healthcare infrastructure.”
Tapan Singhel, MD & CEO, Bajaj Allianz General Insurance: “The Union Budget 2024-25, presented today, is a testament to the government’s commitment to fostering economic resilience and inclusive growth. The significant investments in agriculture, infrastructure, and employment will undoubtedly spur demand for insurance products, providing immense opportunities for the industry. The emphasis on digital public infrastructure and the expansion of financial services to underserved regions will enable the insurance sector to reach new markets and enhance penetration. Furthermore, the focus on MSMEs and the incentives for job creation will create a more robust economic environment, reducing risk and fostering a culture of insurance adoption. As one of the largest employers in the country, the insurance sector will continue to grow and provide employment opportunities, reflecting the expanding needs of our citizens. This budget sets the stage for the insurance industry to play a pivotal role in safeguarding the economic well-being of our citizens and driving sustainable growth.”
Sachin Bhandari, Executive Director and CEO, VTP Realty: “The recent budget announcements are set to have an immediate and direct impact on the real estate sector. Developers heavily reliant on investors will be adversely affected by the government’s decision to rationalize the Long Term Capital Gains (LTCG) tax, reducing it from 20 percent to 12.5 percent. However, the elimination of the indexation benefit when applying LTCG means the overall tax outflow will be higher under this new regime. This move is likely to dampen investor sentiment, removing key incentives and directly impacting developers dependent on investors.
Conversely, the government’s proposed initiatives, such as promoting MSMEs, extending credit guarantees, and furthering infrastructure development, alongside a focus on the PM Awas Yojana, indicate a strong commitment to revitalizing MSMEs, the backbone of the Indian economy. This will drive growth in the affordable and mid-level real estate segments, provided these efforts are implemented successfully”.
Niranjan Kirloskar, Managing Director – Fleetguard Filters Pvt. Ltd:
“The Union Budget presented today aligns well with the Government’s vision of a Viksit Bharat. The budget highlights several positives aimed at boosting economic growth, employment, sustainability, and inclusive development.
Special focus and reiteration of skilling, employment, manufacturing, strong infrastructure development, agriculture, and R&D, among other mentions, should positively reassure companies to focus on investing in all levels of its employees – especially newer ones, and also concentrate on becoming future-proof, by investing in rigorous research and development.
In addition to the above, proposing a climate taxonomy or climate finance to encourage greener businesses and, in turn, create a greener economy in the long run, signifies the important role of Indian companies in the fight against global climate change and aligns with global ESG goals which can make Indian companies attractive for FDI.
Overall, the government aims to balance economic growth with sustainability and inclusivity ensuring long-term benefits across various sectors.“
H P Srivastava – Vice Chairman. Deccan Chamber of Commerce, Industries & Agriculture (DCCIA): One of the main focuses of this budget is to create employment for which the Government has sought to use the Social Security Scheme as a tool. Skilling one Crore youths in top Companies in five years under ‘Prime Minister’s Internship’ programme is another step in the same direction. There is some relief for salaried class on the personal income tax front. However, there are no major steps to increase consumption. Industry was expecting extension of date with regards to concessional rate of Income Tax at 15% for new domestic manufacturing units. There is disappointment on this front.”
Dr Preeti Joshi, Principal – Arts, Humanities and Social Sciences, Sri Balaji University, Pune (SBUP): “E-vouchers for loans up to ₹10 lakh for higher education in domestic institutions will be provided to 1 lakh students each year is a significant announcement for higher education in this budget. Under this initiative the government will provide e-vouchers and will cover an annual interest subsidy of 3% on the loan amount. This will surely encourage talented youngsters to go for higher education within the country rather than going abroad. Allotment of Rs.1.48 Lakh Crore in the budget for education, skilling and employment will surely benefit the youth of the country and for shaping up the future of the country. Another welcome step for the youth is the plan to undertake the skill development of 20 Lakh youngsters through 1000 industrial training units which will be upgraded and shall run courses as per the industry needs. Overall, a very good budget as far as an effort to provide jobs and skill development to the youth is concerned.”
Dr. Maithili Tambe, CEO, The Academy School (TAS), Pune: “The government allocating a remarkable Rs 1.48 lakh crore for education, employment, and skilling is a significant stride towards empowering the nation’s youth and enhancing the educational landscape. This move not only highlights the importance of education as a cornerstone for economic growth, but also addresses critical issues such as dropout rates and literacy levels, particularly in rural areas. With the addition of favourable loan terms, it will encourage students to invest in their future and empower students to chase their academic dreams without the constant worry of debt. Also, the budgetary allocation of over 3 lakh crore for initiatives benefiting girls and women aims to enhance access to quality education. It will aid by funding scholarships, building girl-centric schools, and establishing mentorship programs that inspire young women to pursue careers in fields traditionally dominated by men, such as science, technology, engineering, and mathematics (STEM).”
