Some industries happy with green push, others feel left out

It seems to be an overall good budget with an aim to improve infrastructure. The budget proposes to spend 33% on infrastructure, it emphasises on skill development and digitisation. These are all good indicators of growth and will boost the economy. Middle income group will get the relief of tax rebate on income up to Rs 7 lakh in the new tax regime and if most people opt for it, it will ensure single tax regime. However, in case of the textile sector, there is no specific change. We were expecting custom duty to go from cotton as this item was on the 2020-21 budget agenda, but even this time, it didn’t happen. We pay 11% import duty on cotton so it is difficult to compete with other countries in terms of export orders.

Hemant Sood
MD, Findoc Investmart private limited

This budget holds significance as the country will go to polls in April-May 2024. The announcements definitely prove the budget is much better than promised. The budget has covered various sectors such as agriculture, digitalization, green energy, taxpayers andhas catered to all economics classes. It is a forward looking budget as it has put on priority 50 new airports, helipads, and aerodromes. It is comprehensive and a well thought out strategy for a better India.

Onkar Singh Pahwa
Chairman & Managing Director, Avon Cycles

Custom duty on lithium ion batteries that are used in electric vehicles has been waived off. This will be a big push for the sector which manufactures electric vehicles (EVs) and it may even bring down the price of EVs. We hope that the sector will grow in the coming year . Middle income group has also been benefited with the enhancement of tax rebate up to Rs 7 lakh of income instead of Rs 5 lakh. At the same time, there has been no change in corporate taxes and the maximum tax bracket has been reduced to 39% from the earlier 42.75%. Auto sector will get a boost after government allocated funds to scrap old vehicles owned by government. Overall, it is a good budget.

Narinder Bhamra
President, Fasteners Manufactu-rers Association of India

The budget has nothing for micro entrepreneurs and small enterprises. We had expected the creation of a separate Ministry for Micro Enterprise, more liberalised labour laws, easing raw material prices such as formation of steel regulator, reduction in GST slab from 18% to 12% etc. Micro entrepreneurs are finding it difficult to survival due to fluctuations in steel prices, imports from China etc and they needed a special package to come out of crises. Even making the new tax regime the default tax regime is discouraging savings. The government wants you to spend all your earnings. There is also no mention of social security for tax payers such as free medical facility. In Optional Tax slab with standard deductions income tax exemption limit is marginally increased from Rs 2.5 lakh to Rs 3 lakh whereas it should be 5 Lakh considering the inflation. The standard deduction limit under Chapter 6A such as 80C, 80 D etc has been kept at Rs 1.5 lakhs, but it should have been increased to Rs 3 lakh. There is no mention of CLCSS (Credit Linked Capital Subsidy Scheme) which in on halt since 2020. We were expecting the revival of CLCSS with increase of limit from Rs 1 crore to Rs 5 crore. Yet again, corporates have been given a big relief by decreasing surcharge from 37% to 25%. Besides, the highest income tax slab for corporates is 15% to 22% + surcharge. Whereas for firms it is 30%, majority of which is MSEs. It is a disastrous budget as the Centre is concerned only about corporates.

Upkar Singh Ahuja
President Chamber of Commerce and Industrial Undertakings

The budget has many good things to talk. If the infrastructure improves, the automobile sector will get a boost automatically as more vehicles will run on good roads. We hope that 33% increase in infrastructure budget is spent in the true letter and spirit. Credit guarantee scheme, which earmarks Rs 9000 crore for the ones who have no collateral security is again a welcome step as it will enhance self employment. Aggressive digitisation, change in tax slabs are again welcome steps.

Rajnish Ahuja
President, Apex Chamber of Commerce and Undertakings

It is a please all budget ahead of the Lok Sabha polls and scores a 9.5 out of 10. Election budgets are always lucrative but if all announcements of this budget are fulfilled, it can take India to a robust development path. They have removed 3400 legal formalities and it will increase the ease of doing business. The new generation was unhappy with undue paper work, several permissions etc and hence was keen on leaving India. Perhaps, this budget will change their perspective. We welcome the allocation of Rs 9000 crore for credit guarantee scheme where people with no collateral security can get loans to start business. This will not only make them self employed but they will also generate employment for others. The rebate of 1% on loans given to MSMEs is a relief to the micro, small and medium enterprises.

Badish Jindal
President, All India trade and industry federation

No doubt it is an election budget but if we talk about the MSME sector their total budget in trade 2022-23 was Rs 21,422 crore, which has been increased to Rs 22,137 crore in 2023-24. Hence, a minor change. Even for the textile sector, the annual budget has been kept at Rs 4,389 crore in 2023-24, which was Rs 12,382 crore in 2022-23. There has been no mention on credit linked capital subsidy scheme, which is on halt since 2020 under which industry used to get rebate of 15% on purchase of machinery. This scheme had been started during Manmohan Singh’s first term of government. Overall the budget has more pros than cons.

KPS Bawa
Advocate, direct and indirect taxes

The change in tax slabs is a welcome step under as people with income of up to Rs 7 lakh will not have to pay any tax. It is an indirect message to spend more as the same money will rotate in the market. Leave encashment up to Rs 25 lakh is tax free, maximum rate of income tax has been reduced to 39% from 42.75%. However, if your income exceeds Rs 7 lakh, you have to pay tax as per the slabs. Hence, middle income group can get relief from this enhanced tax rebate in which no investment proofs are needed.

Gaurav Munjal
MD, Hero Ecotech Ltd

It is a balanced budget with focus on health, education, agriculture, employment etc. Special attention has been given to environment friendly and green energy to reduce carbon footprints of India on the global map. An attempt has been made to strengthen ease of doing business by reducing more than 39000 compliances and decriminalization of 3400 provisions. MSMEs and middle class is taken care of by reducing income tax slabs and by increasing deductions, exemptions and rebate.

Sonica Malhotra Kandhari
Joint Managing Director, MBD Group

Overall it is a balanced budget. The move to develop 50 tourist destinations will give a big boost to the tourism industry. We are also happy with the announcement of revitalisation of 50 airports, heliports, aerodromes, and advanced landing zones. This will not only improve connectivity but will also give impetus to the tourism sector. The government has announced investing Rs 75,000 crore, including Rs 15,000 crore from private sources into 100 critical transport infra projects for steel, ports, fertilizer, coal, and foodgrain sectors. This is a welcome step that would lead to a new growth trajectory for the tourism industry and also provide more jobs. The budget has given a boost to the railway with plans to provide a capital outlay of Rs 2.40 lakh crore, which is the highest ever and is nine times over the Financial Year 2014.