UNION BUDGET 2024-25 FOCUSES ON MIDDLE CLASS, SKILLING, EMPLOYMENT, MSME’s, FARMERS AND YOUTH: LAYS DOWN BLUEPRINT FOR VIKSIT BHARAT
*Union Budget 2024-25 thrust provided to skill development through a new Centrally Sponsored Scheme and upgradation of ITIs is a welcome step and will leverage the potential of youth in the country: Madhav Singhania, Chairman, CII Northern Region*
Chandigarh, 23 July 2024: “The Union Budget 2024-25 is a significant step towards building a robust and inclusive India. We commend the government’s focus on capital expenditure, which will be instrumental in creating jobs and boosting economic growth. The emphasis on the care economy, with initiatives like working women’s hostels and crèches, is commendable and aligns with CII’s vision of an inclusive society. Additionally, the budget’s focus on digital public infrastructure, especially in agriculture, will revolutionize the sector and benefit millions of farmers. The government’s initiative of introducing a credit guarantee scheme for MSMEs, enhancement of Mudra loans and the introduction of E-commerce hubs under the PPP model will not only boost revenue in these sectors but also fuel employment and provide for higher wage opportunities. Further, the thrust provided to skill development through a new Centrally Sponsored Scheme and upgradation of industrial training institutes is a welcome step and will leverage the potential of youth in the country,” said Mr Madhav Singhania, Chairman, CII Northern Region and Deputy Managing Director & CEO, JK Cement Ltd.
“The budget’s emphasis on ease of doing business, with measures like rationalising stamp duty and incentivising states for business reforms, is a positive step. The abolition of Angel Tax is a major boost for the startup ecosystem. CII is particularly encouraged by the government’s focus on energy transition and the development of a roadmap for HTA industries that include – steel, power, chemical and refinery. We believe these initiatives will accelerate India’s progress towards a low-carbon future. Furthermore, the increased allocation for skill development and the focus on e-commerce export hubs will create new opportunities for MSMEs and youth. The enhanced healthcare funding will strengthen the nation’s medical infrastructure, while the investment in agritech will support farmers with innovative solutions. The emphasis on digital public infrastructure is set to transform various sectors, ensuring India remains at the forefront of the global digital economy,” opined Mr Sunjay Kapur, Deputy Chairman, CII Northern Region and Chairman, Sona Comstar.
CII believes that this year’s budget scores well on many fronts including its focus on developing infrastructure, focusing on youth, women, farmers and middle class and boosting the MSME sector through skill development.
CII also thanks the Hon’ble Finance Minister for accepting the recommendations on Employment Linked Incentives. The incentives such as setting up of vegetable clusters, boost to digital public infrastructure for agriculture and boost to cooperatives will empower the Indian farmers and help boost their incomes.
CII Northern Region is happy to note that this full budget after the June 2024 general elections has ticked all the right boxes for growth and development. For Rural and Urban land related actions for prioritising Viksit Bharat, reforms have been planned under the Taxonomy for climate finance, FDI and Overseas Investments, Improvement of data governance, collection, processing and management of data and statistics.
CII also welcomes the government’s decision for the allocation of Rs 3 lakh crore towards schemes for women and girls, making women led development a high priority
CII is happy to note that the Union Budget 2024 also focuses on reducing the compliance burden, promote entrepreneurial spirit and provide tax relief to citizens by abolishing the Angel Tax for all classes of Investors, Corporate tax rate on foreign companies reduced from 40% to 35% and rationalisation of capital gains through Increase in limit of exemption of capital gains on financial assets to ₹1.25 lakh per year, Short term gains of financial assets to attract 20% tax rate, Long term gains on all financial an non-financial assets to attract a tax rate of 12.5%.
“The Union Budget 2024 reflects a strong vision for the nation’s future growth and economic development. CII also welcomes the Hon’ble FM’s thrust on Viksit Bharat, the budget envisages sustained efforts on 9 priorities for generating ample opportunities for all which is step forward in attaining higher growth trajectory for India,” added Mr Anurag Gupta, Chairman, CII Chandigarh and Managing Director, Usha Yarns Ltd.
Mr Navesh Narula, Chairman, CII Himachal Pradesh and Director, Tesna Tech Pvt Ltd expressed that the budget has given a strong impetus to skill development and MSME sector, the government plans to launch a comprehensive scheme to provide internship opportunities in the top 500 companies to 1 crore youth for 12 months, multiple mechanisms to facilitate the continuation of credit to MSMEs facing stress, in an acknowledgement of the multiple headwinds faced by the sector. The announcement of financial support to set up 50 multi-product food irradiation units in the MSME sector is of relief to the sector.
“The announcement of schemes like one-month wage to new entrants in all formal sectors in 3 instalments up to ₹15,000 will benefit the youth under the employment linked incentive scheme, which is much appreciated to enhance skill and ensure employment opportunities,” further added Mr Abhishek Gupta, Chairman, CII Punjab and Chief – Strategic Marketing, Trident Ltd.
“The 2024 Budget reflects a clear grasp of India’s economic needs. It targets key areas, balancing immediate requirements with long-term goals. At its core are the allocations for infrastructure and rural development. The Rs 11.11 trillion for infrastructure will boost productivity and create jobs across sectors. The Rs 2.6 lakh crore for rural development recognizes our villages as growth engines. This will ease migration pressures, increase rural spending, and build a more balanced economy. This budget sets the stage for a stronger, more equitable, and environmentally conscious India,” said Mr Raaja Kanwar, Chairman, CII Haryana and Chairman & Managing Director, Apollo International Group.
