Budget 2024
Budget 2024: Focus on small businesses, a mixed bag for many
The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, has garnered mixed reactions from various industry leaders and startup founders. The government's commitment to bolstering India's technology sector and fostering innovation has been met with praise, though some areas have sparked debate.
Budget 2024: Focus on small businesses, a mixed bag for many
Bharath Aitha, Vice President of Marketing at eInfochips, highlighted the budget's focus on enhancing public-private partnerships and bridging the gap between academia and industry. "The emphasis on job creation and internships across various technologies is particularly encouraging," Aitha said. He praised the government's dedication to significant investments in training and upskilling the workforce, which he believes is essential for sustaining momentum and securing India’s stature as a global technology leader.
Aitha also noted the budget's allocation towards AI research grants, which could accelerate advancements in fields such as computer vision and natural language processing—areas where eInfochips excels. "We look forward to collaborating with government bodies and academic institutions to maximize the impact of these grants," he added.
Divyesh Dalal, Managing Director & Head – Global Transaction Services, SME & Institutional Liability Business, DBS Bank India says the measures announced in the Union Budget underscore the government's commitment to empowering MSMEs, the backbone of our economy. “The introduction of the credit guarantee scheme is an encouraging step towards making capital more accessible. Additionally, the provision of collateral-free term loans for purchasing machinery and equipment will tangibly enhance the operational capabilities of MSMEs by enabling technology upgrades,” Dalal says.
Further, Dalal adds that the lowering the turnover thresholds mandatory for onboarding on the TReDS platform will allow more MSMEs to access the benefits of this system. “The establishment of e-commerce export hubs is poised to further equip enterprises with the tools and support needed to expand into international markets. By making their products more accessible globally through e-commerce platforms, Indian businesses can tap into new opportunities with offshore customers across markets. DBS Bank India is well-positioned to support MSMEs given the focus on supporting the sector,” says Dalal.
Vikas Singh, Co-Founder of NFTFN, provided a balanced view, appreciating the abolition of the Angel Tax but expressing concerns over the increased taxes on short-term and long-term capital gains, as well as the hike in the Securities Transaction Tax on Futures & Options transactions. He noted that while the emphasis on digital public infrastructure is favorable, the cryptocurrency sector had hoped for more supportive taxation policies.
Ramesh Sharma, Managing Director & CEO, Gurgaon Expert Realty says The much-anticipated support for affordable housing is addressed with Rs 10 Lakh Cr. to meet the housing needs of one crore lower and middle-class families in the urban regions. Over the next five years, an additional Rs. 22 Lakh Cr support would be provided as central assistance. The whopping Rs. 11.11 lakh Cr. support to enhance infrastructure will boost connectivity and facilitate the overall development of cities as growth hubs. The Rs 2.66 Lakh Cr. allocated to rural development will significantly upgrade rural infrastructure. Additionally, the announcement of 3 crore house construction in rural and urban areas is an addition to PMAY’s visionary scheme, and “housing for all” seems achievable.
The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, has garnered mixed reactions from various industry leaders and startup founders. The government's commitment to bolstering India's technology sector and fostering innovation has been met with praise, though some areas have sparked debate.
Bharath Aitha, Vice President of Marketing at eInfochips, highlighted the budget's focus on enhancing public-private partnerships and bridging the gap between academia and industry. "The emphasis on job creation and internships across various technologies is particularly encouraging," Aitha said. He praised the government's dedication to significant investments in training and upskilling the workforce, which he believes is essential for sustaining momentum and securing India’s stature as a global technology leader.
Aitha also noted the budget's allocation towards AI research grants, which could accelerate advancements in fields such as computer vision and natural language processing—areas where eInfochips excels. "We look forward to collaborating with government bodies and academic institutions to maximize the impact of these grants," he added.
Divyesh Dalal, Managing Director & Head – Global Transaction Services, SME & Institutional Liability Business, DBS Bank India says the measures announced in the Union Budget underscore the government's commitment to empowering MSMEs, the backbone of our economy. “The introduction of the credit guarantee scheme is an encouraging step towards making capital more accessible. Additionally, the provision of collateral-free term loans for purchasing machinery and equipment will tangibly enhance the operational capabilities of MSMEs by enabling technology upgrades,” Dalal says.
Further, Dalal adds that the lowering the turnover thresholds mandatory for onboarding on the TReDS platform will allow more MSMEs to access the benefits of this system. “The establishment of e-commerce export hubs is poised to further equip enterprises with the tools and support needed to expand into international markets. By making their products more accessible globally through e-commerce platforms, Indian businesses can tap into new opportunities with offshore customers across markets. DBS Bank India is well-positioned to support MSMEs given the focus on supporting the sector,” says Dalal.
Vikas Singh, Co-Founder of NFTFN, provided a balanced view, appreciating the abolition of the Angel Tax but expressing concerns over the increased taxes on short-term and long-term capital gains, as well as the hike in the Securities Transaction Tax on Futures & Options transactions. He noted that while the emphasis on digital public infrastructure is favorable, the cryptocurrency sector had hoped for more supportive taxation policies.
Ramesh Sharma, Managing Director & CEO, Gurgaon Expert Realty says The much-anticipated support for affordable housing is addressed with Rs 10 Lakh Cr. to meet the housing needs of one crore lower and middle-class families in the urban regions. Over the next five years, an additional Rs. 22 Lakh Cr support would be provided as central assistance. The whopping Rs. 11.11 lakh Cr. support to enhance infrastructure will boost connectivity and facilitate the overall development of cities as growth hubs. The Rs 2.66 Lakh Cr. allocated to rural development will significantly upgrade rural infrastructure. Additionally, the announcement of 3 crore house construction in rural and urban areas is an addition to PMAY’s visionary scheme, and “housing for all” seems achievable.