Union Finance Minister Nirmala Sitharaman has presented the full Union Budget for the third time under the leadership of Prime Minister Narendra Modi. As mentioned in the interim budget announcement by the Union FM, the focus of Union Budget 2024 also lies on four major castes- namely ‘Garib’ (Poor), ‘Mahilayen’ (Women), ‘Yuva’ (Youth) and ‘Annadata’ (Farmer).
And falling in line with the same, it particularly focuses on employment, skilling, MSMEs, and the middle class. That being said, in pursuit of ‘Viksit Bharat’, the Full Union Budget 2024 as pointed out by Union FM today envisages sustained efforts on the following 9 priorities for generating ample opportunities for all:
- Productivity and resilience in Agriculture
- Employment & Skilling
- Inclusive Human Resource Development and Social Justice
- Manufacturing & Services
- Urban Development
- Energy Security
- Infrastructure
- Innovation, Research & Development and
- Next Generation Reforms
Here’s a sneak peak into how industry players from across industries such as FMCG, Travel and Tourism, Startups, Gaming and more perceived the nine-point agenda laid out in the same:
Conduciveness For Spending Due To Increased Disposable Income
Sharing his views on how he perceives the full Union Budget 2024 will impact the FMCG sector, which is also known to be the backbone of advertising in India, Mohit Malhotra, CEO, Dabur India, said, “The standout feature of the Union Budget 2024-25 was its focus on speeding up fiscal consolidation with the Fiscal Deficit being revised down 20 bps from the Interim Budget to 4.9%. While Finance Minister Ms Nirmala Sitharaman rolled out a string of measures for job creation, rural development, women empowerment and infrastructure investment, the announcement on Capital Gains tax seems to have come as a big dampener for the market.”
“Increased allocation in the budget towards Education, Skilling and Employment and special employment-linked incentive schemes for employees and employers aptly demonstrated the government mindset to significantly improve employment and employability in the country. These steps will go a long way in driving consumerism. The support for higher education loans and the push for women in the workforce are other big pluses,” he added.
Highlighting how the government’s decision to increase standard deductions from Rs 50,000 to Rs 75,000, revised tax rates under New Tax Regime and slab revisions would result in savings of around Rs. 17,500 in net taxes in the hands of individual, he pointed out that all of this would mean more disposable income in the hands of the consumers and would lead to sustained demand for branded consumer goods.
“The Budget’s push on urban and rural growth will help boost rural consumption and also increase discretionary spending. Urban Housing needs of 1 crore urban poor and middle-class families are being addressed with an investment of Rs 10 lakh crore. The government’s decision to allocate Rs. 2.66 lakh crore for rural development, including rural infrastructure, and its continued focus on rural infrastructure development are big steps in the right direction. These measures would further boost consumer sentiments in the hinterland, which is already showing green shoots of revival,” he opined.
Similarly, Harsha V Agarwal, Vice President and Managing Director, Emami, also said, “The Union Budget 2024 is a progressive and balanced budget. It focuses on multiple sectors including agriculture, rural development, MSMEs, women, employment and skill development is anticipated to spur the economic growth. With a clear emphasis on capital spending to generate growth and a strong focus on employment along with some of the tax benefits, we expect consumption to improve. Further, simplification of taxation is also a very welcome move.”
Adding to his viewpoint, Aditya V Agarwal, Director, Emami Group, also mentioned, “Budget 2024-25 is holistic in nature offering a level playing ground for many segments of the society. Both direct tax relaxation under the new tax regime and the reform initiatives are directed toward sustainable growth and empowerment. Focus on employment and upskilling in addition to scheme benefitting women is commendable. Initiatives towards achieving self-sufficiency in pulses and oilseeds etc are progressive moves which would benefit the industry.”
Apart from Dabur and Emami, Godrej Consumer Products’ Chief Financial Officer- Aasif Malbari also lauded the government’s decision to make the Union Budget 2024 not only progressive but also a holistic one. He said, “The Union Budget of 2024 promises holistic growth of India’s macroeconomics at the grassroots level. Investments in job creation, skill upgradation, and MSME development will support more inclusive economic growth. The special focus on agricultural schemes and rural development will indirectly boost consumption spending, particularly in rural and non-metro markets. The budget aligns with the vision of India@100 by allocating resources for rural upliftment, urban development and cultivating a resilient and inclusive economy.”
Sharing his reflections on the Union Budget 2024, Krishnarao Buddha, Senior Category Head- Marketing, Parle Products, also told Marketing Mind that the budget which has been rolled out today genuinely focuses on big steps forward.
“It emphasizes key aspects like generating employment, skilling India, enhancing skilled manpower, and supporting MSMEs and the middle class. The initiatives to promote agriculture, improve oilseed production, and enhance vegetable supply chains are fantastic,” he said.
In fact, he also went on to point out that since the same focuses on employment generation and skilling, including wage support and EPFO contributions for new hires, Union Budget 2024 will create numerous opportunities for the youth.
Lauding the budget announcements made by Union FM Nirmala Sitharaman, he stated that the plans for housing, internships, and tax reforms are commendable and that reducing corporate tax and increasing the tax slab exemption will likely attract foreign companies towards India and increase disposable income for the middle class.
“Overall, one can expect this budget to result in increased savings for consumers, a conducive environment for spending, improved lifestyles, and greater prosperity for the country,” he opined.
Furthermore, Saugata Gupta, MD and CEO, Marico, also mentioned, “With the Union Budget 2024-2025, the Government has taken strides towards realizing the Viksit Bharat vision by 2047. This is a forward-looking roadmap that will accelerate India’s economic journey holistically. The nine-point agenda laid out by the FM will address and uplift several economic and social reforms in India, if well executed.”
“The outlay of INR 2.66 Lakh Crore for rural development, and INR 1.52 Lakh Crore for agriculture and allied sectors will help in stabilizing rural economies and ensuring farmers have access to essential resources. The Budget also highlighted the need for self-sufficiency in pulses and oilseeds such as mustard, groundnuts, sesame, soyabean, and sunflowers, working towards strengthening their production, storage, and marketing. Several measures geared towards the upskilling of the youth, encouragement to employers and first-time employees will help in job creation for the next generation. The Budget allocated substantial funds towards infrastructure development which will enhance supply chain efficiency, facilitating wider distribution networks. Emphasis on digital infrastructure and connectivity enhancements is another key positive. Further, taking a concrete step forward towards reforming the tax code, the proposed deductions for salaried individuals and pensioners shows the Government’s clear focus on stimulating disposable incomes of the middle class, thereby driving consumption. In all, I believe the Budget is comprehensive and indicates the Government’s resolve towards fiscal prudence and inclusive growth,” he added.
Job Creation, Skill Development, Women-led Initiatives and Entrepreneurship
Sharing his two cents on the Budget rollout, Ankit Aggarwal, Founder and CEO, Unstop, said, “I am glad to see Budget 2024’s focus on youth employment and skilling. The Rs 2 lakh crore allocation for employment schemes is the beginning to a brighter future. The incentives for job creation and the plan to skill 20 lakh youth over five years is what we needed.The support for higher education loans and the push for women in the workforce is also a big plus. It feels good to see the government recognising the need to focus on key areas that can make our journey towards a skill based economy smoother. It’s a great time to be young and skilled in India!”
According to Ketan Kulkarni, Chief Growth Officer, Allcargo Group, Finance Minister Nirmala Sitharaman, provided enough fuel for India’s current growth ride as with the budget focussing specially on job creation and skilling, agriculture, infrastructure, research and technology, the ride should gain momentum.
“Without changing the Capex allocation which was significant compared to the revised estimates, increased outlays in many sectors like infra and manufacturing will boost spending. The government has also reiterated its determination to pull down the fiscal deficit in the coming years. As every sector has something to cheer about in general, logistics also should gain from the overall growth trajectory. The positive spurs makes the budget balanced, positive and forward-looking,” he said.
Adding to this, Jayatri Dasgupta, CMO, PayNearby and Business Head, Digital Naari, also stated, “The Union Budget extensively focused on women empowerment and skilling initiatives, with an allocation of more than ₹3 lakh crore for schemes benefiting women and girls. This signals the government’s strong commitment to enhancing women’s growth and development.”
“The Budget 2024-2025’s focus on women-led development and skilling is a progressive step towards empowering women across Bharat. The substantial allocation for schemes benefiting women and girls underscores the government’s dedication to enhancing women’s roles in economic growth. At PayNearby, we are inspired by this vision and remain committed to initiatives like Digital Naari, which empower women with digital entrepreneurial skills, enabling them to drive economic progress in their communities. This budget bolsters our resolve to support and uplift women entrepreneurs, fostering a more inclusive and equitable society,” she added.
Travel, Tourism and Hospitality
Highlighting how he views the Union Budget’s implications on Travel and Tourism Sector, Anuj Rathi, Chief Business and Growth Officer, Cleartrip, said, “Today’s budget announcement is a welcome move that promises to strengthen India’s position as a global hub for spiritual tourism. The continued investment in developing corridors will create a multiplier effect, stimulating the local economy and generating job opportunities. This initiative will add to the momentum that the industry gained from the Ayodhya boom earlier this year.”
“In the first half of 2024, Cleartrip has registered a double-digit increase in searches on a month-on-month basis for destinations such as Varanasi, Tirupati, Bhubaneswar, Bodh Gaya, Amritsar and Ajmer. The enhanced focus on infrastructure and road connectivity will make travel, especially road transportation, more accessible and affordable. These initiatives will further bolster India’s status as a premier travel destination facilitating economic growth,” he added.
To this, Ahsan Shervani, Vice President, Star Hotels (Shervani Hotels) added, “We welcome the allocation of approximately ₹2,450 crores to the sector, marking a 44.7% increase from previous estimates. This funding aims to enhance employment and stimulate tourism growth which is a welcomed move. As an industry, we are still eagerly looking for a bit more rationalization in the GST structure for hotels and grant of infrastructure status to the industry.”
Furthermore, Kunal Vasudeva, Co-Founder and Managing Director, Indian School of Hospitality, also pointed out, “The government’s allocation of Rs 1.48 lakh crore for education, employment, and skilling, including training 20 lakh youth and upgrading 1000 institutes, is a significant step forward. For those pursuing vocational routes, this is a major win. It will help people develop practical skills and excel in their fields, bringing more youth into the formal economy. Additionally, with manufacturing bases in or near districts, there’s less need to migrate to cities, reducing mobility. Such initiatives are crucial for hyper-local job creation and boosting the manufacturing sector, driving India towards becoming a $10 trillion economy in the next 7-10 years.”
“The Union Budget’s provision for Rs 10 lakh education loans with interest relief for higher education in India is a big win for those pursuing the academic route. Given our low gross enrollment ratio, these loans will make quality education more accessible, allowing students to choose institutions of merit. This embodies ‘Sabka Saath, Sabka Vikas,’ fostering inclusivity from the ground up. By enhancing local education opportunities and increasing our GER from 26% to at least 40% in the next 5 years, we can cultivate a skilled, competent, and agile-thinking workforce. This workforce is essential for job creation, manufacturing growth, and meeting the workforce needs across various sectors, supporting ‘Made in India for India and Made in India for the world,’ and propelling us towards becoming a $10 trillion economy in the next 7-10 years,” he added.
Gaming
Speaking on the Budget rollout, Akshat Rathee, Co-founder and MD, NODWIN Gaming, said, “We’re happy to hear the Hon’ble Finance Minister’s announcement to rollback the Angel tax for all investors in today’s Union Budget. This move will create a vibrant environment for startups across the nation and is a major boost for Indian gaming and esports entrepreneurs, leading to more opportunities as well as higher engagement with the youth. The plan to simplify FDI rules and promote the use of the Indian Rupee for overseas investment is a promising approach that will encourage global entertainment giants to invest in India, further strengthening our position as a global cultural and entertainment destination.”
“For esports, focusing on enhancing sports infrastructure in Bihar is a positive step since the state has already shown its commitment to integrating esports into mainstream sports. This additional government support will help nurture young talent and promote esports as a new-age sport nationwide. Additionally, reducing the BCD on mobile phones, chargers, and PCDA will make smartphones more affordable, which is fantastic for mobile gaming enthusiasts. This will boost mobile gaming adoption within the nation and further strengthen India’s position in the global mobile gaming market, bringing us closer to becoming the largest. Overall, we’re excited to dive into these opportunities to drive growth and make waves,” he added.
Adding to this, Roby John, CEO and Co-Founder, SuperGaming, added, “Today’s Union Budget, presented by Finance Minister Nirmala Sitharaman, offers multiple benefits to the country’s video gaming ecosystem. The reduction in basic custom duty on mobile phones is a move that will make smartphones more affordable, which is excellent news for India’s extensive mobile gaming community. For our upcoming game, Indus, and other games in the market, this means reaching a broader audience and accelerating growth in the mobile gaming sector.”
“In addition, the removal of the Angel tax is a major boost for the entire startup ecosystem. This will give relief to more gaming and esports entrepreneurs who want to bring their innovative ideas to life, thereby strengthening the gaming and esports ecosystem in India. Overall, we are confident that these measures will propel India’s tech and video gaming industry, bringing India’s gaming culture forward,” he added.
