Industry leaders see Budget 2024-25 as catalyst for strong growth momentum across industries

Sitharaman has undertaken various measures  such as  allocation of Rs 10 trillion, including a central assistance of Rs 2.2 trillion, for the Pradhan Mantri Awas Yojana (Urban) and provision of rental housing with dormitory-type accommodation for industrial workers in public-private partnership (PPP) mode with viability gap funding (VGF) support and commitment from anchor industries. This will help bolster the economy and create new growth opportunities. Industry experts are enthused with the budget’s comprehensive approach, which includes substantial allocations and strategic initiatives designed to stimulate economic expansion and foster innovation.

Expressing high optimism Mr. Rizwan Sajan, Founder and Chairman, Danube Group said, "The Budget 2024-25 is expected to open a wide window of opportunity for the luxury housing market in India. Among the provisions, the significant allocation of Rs 11.11 lakh crore towards capital expenditure is set to stimulate the real estate market. We also expect the government's focus on enhancing the ease of doing business will create an environment conducive to the collaborations in the industry. At Danube Group, we are optimistic that these initiatives will drive growth and innovation in the real estate market apart from contributing immensely to meeting the sophisticated demands of connoisseurs of luxury and excellence in the residential real estate segment."

Mr. Hari Kaimal, President - Strategy and Development at Supersonic Imagine appreciated the budget’s emphasis on strengthening medical care but expected more from it, he added, “India’s Union Budget 2024-25 marks a significant step forward for the healthcare sector with increased expenditure for developing, maintaining, and improving the country’s healthcare system. It’s also encouraging that the Honourable Finance Minister has highlighted healthcare as a priority but we would have expected to see more in terms of incentivizing local manufacturing of innovative medical devices along with more commitment to medical innovation. Such initiatives will foster breakthroughs in transforming the healthcare landscape and enhance the quality of healthcare in the country.”

Echoing similar sentiments for real estate, Mr. Ajay Chaudhary, CMD, Ace Group added, "At first glance, the focus of Budget 2024-25 appears to be on strengthening urban infrastructure. While the allocation of Rs 11.11 lakh crore in this budget towards capital expenditure may lead to robust infrastructure development, it will create more opportunities for developing high-end real estate projects catering to the evolving needs of discerning homebuyers. The budget's emphasis on developing 'Cities as Growth Hubs' through economic and transit planning may also uplift the luxury housing market. We hope all these initiatives will create more opportunities for the development of high-end residential and commercial projects, catering to the evolving needs of real estate buyers."

Mr. Vijay Jain, Managing Director, Star Estate also applauded the budget for its thorough strategy towards boosting affordable housing with a Rs 2.2 lakh crore allocation under the PM Awas Yojana-Urban. He added, “Another major advancement for the real estate segment to look at in the budget is the investment of Rs 10 lakh crore towards addressing the housing needs of one crore poor and middle-class families. This move demonstrates a strong and inclusive approach to the development of urban centers of growth in the country. Such an approach will revitalize demand in the real estate market."

“We appreciate the Union Budget 2024-25 for its strategic policies that are set to significantly boost the real estate sector. Among the beneficial provisions for the real estate sector in this budget though in the long run are the sanctioning of 12 industrial parks under the National Industrial Corridor Development Program, and the facilitation of rental housing for industrial workers in PPP mode. The formulation of transit-oriented development programmes for 14 large cities is also beneficial for the real estate segment, as these measures will enhance urban infrastructure. Such a forward-looking approach in this budget will drive demand and stimulate growth within the sector", shared Mr. Arjunpreet Singh Sahni, Executive Director, Solitaire Group.

Mr. Kushal Patel, Managing Director, Axita Cotton praises the budget for its focus on industrial growth while commenting, "The Finance Minister announced the development of twelve new industrial parks under the National Industrial Corridor Development programme. These parks will be equipped with complete infrastructure, and 'plug and play' parks will be established in or near 100 cities. These provisions will significantly boost industries across the spectrum, and we commend the budget for its strong focus on industrial growth.”

Representing the FMCG sector, Mr. Aman Choudhary, Executive Director of Marketing at Anmol Industries remarked, "The Union Budget 2024-25 has laid a solid foundation for the FMCG sector with its focus on boosting rural demand and increasing disposable income. The allocation towards improving infrastructure and logistics will greatly enhance supply chain efficiency, enabling faster and more efficient distribution of goods. We appreciate the government’s commitment to fostering a business-friendly environment and believe these measures will spur growth, innovation, and competitiveness in the FMCG industry, ultimately benefiting consumers and businesses alike."

Dr. Gautam Kanodia, Co-Founder of Kanodia Group appreciates the budget’s robust focus on infrastructure development saying, "The government’s strategic focus on infrastructure, with an allocation exceeding INR 11.11 lakh crore, approximately 3.4% of India’s GDP, is highly commendable. This significant investment is set to not only enhance the nation's infrastructure but also generate numerous employment opportunities, particularly within housing projects. Such initiatives are poised to catalyze economic growth and elevate living standards, The government’s commitment to inclusive development is clearly reflected in these provisions.”

Adding more from the healthcare sector, Md. Sharique Khan, Senior Vice President - India Formulation Business, ArEx Laboratories opined, “We welcome the move to completely exempt three major cancer medicines from basic custom duty which will make the critical treatment affordable for all cancer patients. The additional exemption of customs duty on components of x-ray tubes and digital detectors will surge the indigenous manufacturing of these machines in India and subsequently reducing the price of these medical equipment. Though, these announcement in Budget 2024-25 are far less from expected but it is testament of government’s focus on improving healthcare affordability and accessibility in the country.”

Elaborating further in healthcare sector, Mr. Sumit Arora, Director, Alniche LifeSciences, “The government’s decision to completely exempt three major cancer medications from taxes is a significant stride. By making critical treatments more affordable, this move directly benefits patients across the nation who are battling cancer. The reduction of Basic Custom Duty on x-ray tubes and digital detectors is a step in the right direction as it encourages local manufacturing of critical medical equipment. Moreover, the allocation of Rs 3,301.73 crore to the Department of Health Research signals progress and hope for developing innovative therapies and enhancing healthcare infrastructure.”

Mr. Sanchit Sekhwal Goyal, Director, Su-Kam Power Systems Limited hailed the Ministry of Finance’s decision to fully exempt the custom duty on critical minerals which will reduce the price of lithium-ion batteries and consequently making electric vehicles more affordable. He further added, “The Finance Minister’s emphasis on expanding the electric vehicles ecosystem through increased usage in public transport network, is a forward-looking move. By championing these initiatives, the government reaffirms its commitment to climate control. EVs contribute significantly to reducing greenhouse gas emissions, and their widespread adoption aligns with global efforts to combat climate change. It’s heartening to see this focus on both affordability and environmental responsibility.”

“The Indian government’s revelation of expected investment of about ₹30.5 lakh crore in India between 2024 and 2030, for renewable energy sector underscores its strategic focus on energy growth and development. We are confident that this substantial investment will bolster infrastructure, enhance energy security, and drive sustainable progress across the nation. Lowering the turnover threshold for mandatory onboarding on the TReDS platform from ₹500 crore to ₹250 crore empowers MSMEs by improving their liquidity and this initiative recognizes the pivotal role played by them in our economy. India's renewable energy target of 500 GW by 2030 is ambitious and aligns with global climate goals. As we transition to renewable energy, the sector will experience unprecedented growth, driven by new technologies, grid modernization, smart infrastructure, and research and development breakthroughs”, shared Mr. Rajinder Kaul, Chairman & Managing Director, Sharika Enterprises Limited as a representation from power sector.

Commenting on the budget from education sector’s prospective, Utkarsh Gupta, Managing Director, Ramagya Group shared, “Finance Minister Nirmala Sitharaman's latest budget sets forth an ambitious plan to empower 41 million youth over the next five years, backed by a significant investment of Rs 2 lakh crores. This year's allocation of Rs 1.48 lakh crores for education, employment, and upskilling demonstrates our unwavering commitment to fostering talent and unlocking potential. This initiative aims to overcome the obstacles that young people face in obtaining essential education and skill development.”

Thus, the Union Budget 2024-25 provide big boost for economic growth and innovation, with its strategic focus on infrastructure, real estate, technology, and healthcare, among other sectors. The positive reception from industry leaders reflects the budget's potential to drive development and elevate India's position in the global economy. As the nation moves forward towards the goal of a developed nation, these initiatives are expected to lead to a more prosperous and inclusive future.

 

 

 

(This article is part of DMCL Consumer Connect Initiative, a paid publication programme. DMCL claims no editorial involvement and assumes no responsibility, liability or claims for any errors or omissions in the content of the article. The DMCL Editorial team is not responsible for this content.)