Finance Minister's Proposals Cover Housing, Solar Power, Medical Coverage, and Agriculture & Industry Reactions

In her final interim budget speech before the 2024 Lok Sabha elections, Finance Minister Nirmala Sitharaman outlined key proposals aimed at fostering economic growth, innovation, and social development. The budget, devoid of changes in the taxation structure, provides a sense of relief to taxpayers.

Key Takeaways:

1. Infrastructure Boost: Sitharaman announced a significant double-digit increase in infrastructure spending, with the country's capital spending for 2024-25 raised by 11% to ₹11.11 lakh crore, or 3.4% of GDP.

2. Housing Initiatives: While maintaining fiscal prudence, the Finance Minister proposed the construction of 2 crore additional houses for the rural poor over the next five years under the PM Awas Yojana (Grameen).

3. Rooftop Solar Programme: A novel scheme was introduced, allowing individuals to buy or build their own homes, accompanied by free electricity through a new rooftop solar initiative.

4. Healthcare and Agriculture: The budget emphasizes increased medical coverage for specific government workers, strategies to boost milk and dairy production, and the development of a plan for Atma Nirbharta in oilseeds production.

5. Taxation Structure: No changes were made to the existing taxation structure, providing continuity for startups and investments by sovereign wealth or pension funds. Tax benefits set to expire on March 31, 2024, will now be extended to March 31, 2025.

Industry Reactions:

Abhiram Katta, Director, Endiya Partners: Katta lauded the proposed ₹1 lakh crore corpus, highlighting its potential to boost research and innovation, particularly in deep tech. He expressed support for the extension of startup tax benefits.

Deepak NG, Managing Director, Dassault Systemes India: Dassault Systemes India welcomed the budget's commitment to fostering innovation, emphasizing the significant impact of the ₹1 lakh crore corpus on research and development in new-age technologies.

Ravi Saxena, Founder, CEO Wonderchef: Saxena praised the budget's controlled inflation and its positive impact on the home appliances sector, anticipating benefits from initiatives like solar-powered homes and the central rating system.

Rohit Gajbhiye, MD & Founder LEO1: Gajbhiye commended the budget's visionary commitment to transforming India's education sector, particularly its emphasis on deep-tech technologies and its impact on gender inclusivity.

Pradeep Misra, CMD Rudrabhishek Enterprises Limited: Misra noted the budget's focus on infrastructure, especially in areas like Metro Rail and airports, expressing expectations for the extension of the PMAY program and targeted policy interventions for the MSME sector.

Pragya Goyal, CEO & Co-Founder Vegh Automobiles: Goyal highlighted the game-changing infusion of Mudra Yojana loans into the hands of women entrepreneurs, anticipating a transformative shift in the electric vehicle manufacturing landscape.

Abhay Bhutada, MD, Poonawalla Fincorp: Bhutada commended the budget's fiscal responsibility and its focus on FDI, foreseeing progressive policies supporting fintech, digital lending, and digital skills.

Domnic Romell, President of CREDAI-MCHI: Romell praised the 'Citizen First' approach, especially the focus on housing for all, rooftop solarisation, and initiatives empowering marginalized sections of society.

Sangita Reddy, JMD, Apollo Hospitals Group: Reddy acknowledged the budget's emphasis on preventive care, women's health, and infrastructure expansion in the healthcare sector, while suggesting considerations for addressing challenges in rural healthcare.

Kamal Bansal, MD, GVFL: Bansal lauded the Finance Minister's recognition of innovation as the foundation of development, emphasizing the positive impact of the proposed corpus for research and innovation in sunrise domains.

This interim budget aims to set the stage for comprehensive and sustainable development, blending fiscal responsibility with targeted investments in key sectors to drive India's growth in the coming years.