Interim Budget 2024 highlights: Capex from govt will continue, says FM

Union Budget 2024 LIVE updates: FM Sitharaman in her Interim Budget speech stated the Centre is working towards making India 'viksit' by 2047. Catch the latest updates here

6:59 PM

Interim Budget charts path for fully developed, economically robust India: Union ministers

Several Union ministers hailed the interim Budget presented by Finance Minister Nirmala Sitharaman, asserting that it charts a definitive pathway for a fully developed and economically robust India by 2047. Reacting to the interim Budget which was presented in Parliament on Thursday, Union Minister Rajnath Singh said it outlines the vision for a "confident, strong and self-reliant Viksit Bharat". He stressed that he was sure of the size of the Indian economy growing to more than $5 trillion by 2027. In a post on X, he said there is something in this Budget for "every section of the society". The government is working to make India a developed country by 2047, Sitharaman said on Thursday while presenting the interim Budget 2024-25. "This is an interim Budget. But this interim Budget that she has presented is very encouraging and raises hope for the way ahead also. And the size of India's economy at this time... I am assured that whatever indications we have received from this Budget, the size of our economy, which is in top five counties right now, will grow to more than $5 trillion by 2027. By 2030, it will grow to more than $7 trillion," Singh told reporters outside Parliament. Union Home Minister Amit Shah said the interim Budget 2024-25 draws the roadmap to achieve Prime Minister Narendra Modi's vision of a developed Bharat by 2047.

6:51 PM

Renewed focus on sustainability and inclusivity: Dr Miniya Chatterj of Anant School for Climate Action

"The Union Budget 2024 announcement brings with it a renewed focus on sustainability and inclusivity. The government's commitment to sustainability through its strategy for “Amrit Kaal” adopts economic policies that foster growth, facilitate inclusive and sustainable development, improve productivity, create opportunities for all, and contribute towards the generation of resources to power investments. India has committed to achieve net-zero emissions by 2070 and accordingly the budget includes providing viability gap funding for offshore wind energy, financial assistance for procurement of biomass aggregation, installation of coal gasification and liquefaction of 100 MT capacity by 2030, and phased mandatory blending of compressed biogas, CNG, and PNG. It is crucial for industry to leverage the provisions made in the Union Budget 2024 to also focus on skilling their employees and the next generation, towards achieving India’s net zero targets in ways that balance our responsibility towards producing value and providing for livelihoods, while preserving and even regenerating our natural resources," says Dr Miniya Chatterj, Founding Director, Anant School for Climate Action and CEO, Sustain Labs Paris. 

6:49 PM

'This budget champions fiscal responsibility while driving infrastructure growth through a substantial capex'

“Finance minister's budget ushers in potential growth and stability. The Indian Finance Minister's budget initiated fiscal discipline, with conservative revenue and GDP assumptions paving the way for positive outcomes. The anticipated decline in the fiscal deficit could lead to lower interest rates, strengthening macroeconomic stability. This budget champions fiscal responsibility while driving infrastructure growth through a substantial capital expenditure (capex) allocation of Rs 11.1 lakh crore. It prioritises key populations like the poor, women, youth, and farmers, aligning with the "Amrit Kaal" vision of creating a prosperous future,” says Suresh Shukla, CBO, SBI Securities.

6:10 PM

Railway corridor programs will enhance logistics efficiency: Chief strategy & growth officer, Tata Projects

“In the fiscal year 2024-25, the interim budget not only envisions unprecedented development but also strategically focuses on key sectors driving progress. Tata Projects welcomes the commitment to railway corridor-port connectivity under DFC, encompassing plans for more than 2 corridors. This signifies a notable step towards enhancing transportation infrastructure, aligning seamlessly with our commitment to building smart and sustainable projects. Furthermore, the budget introduces three new rail corridors for energy, cement, and minerals, while also expanding metro trains and NaMo Bharat trains to more cities. These initiatives underscore the government's dedication to fostering robust and inclusive transportation infrastructure, reflecting Tata Projects' own commitment to contributing to the development of sustainable infrastructural projects. Additionally, the implementation of three major railway corridor programs under PM Gati Shakti not only enhances logistics efficiency but also demonstrates a keen understanding of how strategic infrastructure investment can significantly reduce costs," Himanshu Chaturvedi, chief strategy & growth officer, Tata Projects Ltd said.

6:03 PM

Budget 2024: Focus on EV ecosystem is a pragmatic step, says Manoj Nair, head of India GDC, Fujitsu India

“We welcome India’s Union Budget 2024-25 unveiled today and applaud the Indian Government for putting digitalization, inclusive and sustainable development, and enhanced capabilities and contribution to the generation of resources to power investments at the core. As the demand for tech talent surges, the Government’s Skill India Mission has played a pivotal role in stemming the talent gap in the IT industry. With 1.4 crore youth upskilled and reskilled the announcement of higher learning institutions including IITs and IIMs will help India address the AI skill crunch and bridge the gap effectively. Additionally, the Government’s corpus of Rs 1 lakh crore with a 50-year interest-free loan will encourage the private sector to scale up research and innovation significantly in sunrise domains. This will be a big boost for tech-savvy youth and help the Nation strengthen capabilities in the deep tech sector. The government’s continued focus on EV ecosystem is indeed a pragmatic step forward and will continue to help India succeed in achieving its long-term decarbonization objectives. This is an exciting time for the country's green industrial and economic transition. At Fujitsu, we are committed to providing sustainable transformation and supporting green growth and we shall continue as strong partners in helping the nation in its journey towards net-zero!,” says Manoj Nair, head of India GDC, Fujitsu India.

6:00 PM

Interim Budget has avoided fiscal profligacy, raised allocation: Rajesh Sharma, MD at Capri Global Capital Ltd

"The Interim Budget has maintained the continuity in the Government’s approach to ensure a balanced and inclusive growth without losing sight of the momentum needed to maintain the economy's pace. In an election year, it has positively surprised by staying on path of fiscal consolidation. It has avoided fiscal profligacy and raised allocation to infrastructure. The allocation of a corpus of Rs. 1 lakh crore for promoting innovation through interest free loans to the private sector is another step towards developing the future of India through innovation and research. The broader hints on financial sector reforms, an efficient economic management and adoption of green policies point to major announcements in the full Budget in July this year, says Rajesh Sharma, managing director at Capri Global Capital Limited. 

5:57 PM

Budget puts emphasis on building ecosystems for inclusive growth, says Rahul Jain, managing partner, BCG India

“The Interim Budget, as expected, has been able to infuse confidence about the progress of the country and has set the tone for the Viksit Bharat roadmap. The policy intent has been made clear with emphasis on building robust ecosystems for inclusive growth of citizens. Sabka Saath Sabka Vikas continues to be the focal theme of the government and the announcements reflect its commitment towards that goal without compromising fiscal discipline. Focus on infrastructure and research highlight the intent of the government to foster a growth-oriented mindset” said Rahul Jain, Managing Partner, BCG India.

 

5:54 PM

Consistency in policy without disrupting apple cart is a big positive: Sachin Kotak, partner, Bain & Company

"Given that this is an Interim Budget in a pre-election year, the government has done a fine balancing act between addressing the requirements of the broader masses and sustaining the growth agenda. This budget provides a strong steer to infrastructure through multiple drivers, resulting in a higher capital expenditure outlay. The real estate sector is expected to benefit from the continued focus on schemes such as PM Awas Yojana, the expected scheme on affordable housing for the middle-class, as well as the construction of more medical colleges, agri-storage facilities, improvements to airport infrastructure, tourist centers, and integrated aqua parks. The railways and metros segment is also expected to benefit from the building of three new economic railway corridors and the expansion of Metro Rail and NaMo Bharat. The consistency in policy without disrupting the apple cart is a big positive. Overall, the trailer seems good for the infrastructure sector—awaiting the movie in July,” says Sachin Kotak, Partner, Bain & Company.

5:52 PM

Corpus of Rs 1 trillion will accelerate India's digitalisation journey, says executive V-C, Shriram Finance

“The interim budget aptly focuses on tourism, agri-based industry, infrastructure, research and innovation, and skilling. It encompasses both social and geographical dimensions and will pave the way for sustainable, inclusive growth. We anticipate that the announcements will yield significant advantages in the near future.

The identification of three major economic railway corridors under PM Gati Shakti underscores policymakers' focus on enhancing logistics efficiency, fostering crucial multi-modal connectivity essential for the success of 'Make in India.' These corridors will drive economic growth, and streamline transportation networks.

 

The announcement of the creation of a corpus of Rs 1 trillion coupled with 50-year interest-free loans for research and innovation in sunrise domains will accelerate the country's digitalization journey, positioning it as a leader among global digital economies and fostering opportunities for emerging entrepreneurs." says Umesh Revankar, executive Vice Chairman, Shriram Finance.

5:48 PM

Interim Budget maintains balance between growth, fiscal consolidation, says head of Nuvama Wealth Rahul Jain

“The interim budget announced today strikes the right balance necessary for the economy's growth, as projected to reach $5 trillion this year. It emphasizes maintaining overall economic stability, with a focus on macroeconomic stability. The budget prioritizes a balance between growth, supported by a continued emphasis on capital expenditure, and fiscal consolidation by keeping the fiscal deficit at 5.1% of GDP. The decision to decrease borrowings while maintaining spending is a commendable move, making it a well-balanced budget. We hope to see this approach continue in the budget to be announced after the elections later this year,” says Rahul Jain, president and head, Nuvama Wealth.

5:36 PM

Interim Budget ensures strong fiscal discipline, continuity of policies, says MD, Prabhudas Lilladher Group

“Normally in an election year, we generally see a populist budget. However, the Honorable Finance Minister has put the growth in clear perspective with prudence taking over populism in this budget. It outlines development that will be all-round, all-inclusive, and all-pervasive towards making India a Viksit Bharat by 2047. FY23-25 interim budget has carried forward Govt focus on Net zero by 2070 (Rooftop Solarisation, Non fossil fuel, E vehicles), 11% higher capex allocation (18% effective increase) , higher allocation for PM Awas, MNREGA, Aquaculture and Tourism. Fiscal situation seems to be in fine shape with CAD at ~1% of GDP and fiscal deficit at 5.8% of GDP with next year target at 5.1% of GDP. FY25 assumptions of 11.5% growth in GST and 11.7% in corporate tax and 13% in income tax look reasonable. There has been no change in corporate and Income tax rates. Total debt has been lower than earlier estimates and FY25 gross markets borrowings with increased private capex will continue to provide growth capital and momentum to the economy. In a nut shell interim budget just ensures strong fiscal discipline and continuity of policies,” says Amisha Vora, MD Prabhudas Lilladher Group.

 

5:32 PM

Interim Budget focuses on inclusive development, women empowerment: Bandhan Bank CEO

“The interim budget focuses extensively on inclusive development and is a step forward in the $5 trillion economy aspirations of the nation. The focus on housing sector will benefit a range or peripheral sectors like cements, paints and, steel, among others, and create employment opportunities. The focus on women empowerment will further boost the economy. The emphasis on infrastructure and rural development will lay a strong foundation for India’s growth story,"  says Chandra Shekhar Ghosh, MD and CEO, Bandhan Bank.

5:27 PM

Union Budget focuses on boosting capex, strengthening infrastructure, says Force Motors MD Prasan Firodia

“It is heartening to note the balanced and growth-oriented Interim Budget for the fiscal year 2024-25. The budget focuses on boosting capital expenditure to strengthen the nation's infrastructure, creating a conducive ecosystem that fosters innovation and entrepreneurship and laying the groundwork for transformative progress in various sectors. We, at Force Motors, look forward to further strengthening the auto Industry and contributing to building a sustainable future for our nation,” Force Motors MD Prasan Firodia said.

5:20 PM

Interim Budget lays out action plan for fiscal glide path towards 4.5% in FY26, says SBI chairman Dinesh Khara

“The interim budget has laid out an affirmative action of fiscal glide path towards 4.5% in FY26. The heartening news is that the anticipated tax buoyancy in FY24 excluding the outlier pandemic year is the highest in 7 years. This apart, the budget has laid out reinforced architecture of Big possibilities, creating an all-encompassing action-oriented roadmap to embark upon an arduous yet rewarding journey for each and every Indian, chiefly the fringe and hitherto vulnerable masses, entrepreneurs, agripreneurs and women, making them an equity holder in Viksit Bharat," says SBI chairman Dinesh Khara.

5:11 PM

Interim Budget 2024: Will be taking India-Middle East-Europe Economic Corridor forward, says FM

On the topic of India-Middle East-Europe Economic Corridor, Union Finance Minister Nirmala Sitharaman said, "Well, it's been announced and we are taking it forward. Yes, there is a significant disturbance in the Red Sea area and the Middle East. But this is a project which has long-term implications for the entire region, region up to Europe, because it also includes Europe. So, yes, we will be taking this project forward. We will be consulting and taking it in all its contours."