Finance minister Nirmala Sitharaman’s interim budget speech on Thursday was welcomed by leaders of corporate India for setting the roadmap for inclusive and sustainable growth of the economy, focus on infrastructure capex and innovation, while also ensuring fiscal prudence.
“In the Interim Union Budget 2024-25, Finance Minister Nirmala Sitharaman has provided a comprehensive roadmap for sustained economic growth that will enable India to achieve a developed economy status by 2047,” said Kiran Mazumdar Shaw, Executive Chairperson Biocon & Biocon Biologics
“Her emphasis on research & innovation, bio manufacturing, green technology, robust infrastructure development and technology-driven digital transformation augur well for India to deliver on aspirational yet people-centric, inclusive development,” she added.
Industry leaders welcomed FM’s growth measures, which will see a 11% increase on spending on infrastructure capex to Rs11.1 lakh crore for the next fiscal. In addition, she announced three new economic railway corridor programmes in addition to the dedicated freight corridor that is currently being developed.
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“The Union Budget promises to drive development and innovation, taking India’s infrastructure to the next level and by bringing together its transportation ecosystem for rail, road, aerospace and more to benefit individuals and businesses alike. The continued focus on infrastructure with an increased outlay of INR 11.11 lakh crores in FY25 will play a key role in boosting India’s economic growth,” said Olivier Loison, Managing Director, Alstom India.
Ajay Singh, CMD SpiceJet and President, ASSOCHAM, commented that the increase in infrastructure spending will have a multiplier effect on our economy. “I commend the evident railway corridors, and the one lakh crore fund for research and development and the startup sector. The emphasis on clean energy, technology and digital infrastructure will make India a world leader. This is India’s moment and this budget is part of a continuous process of making policy that will provide massive opportunities for India and Indians,” he said.
Sitharaman’s focus on fiscal prudence, despite 2024 being a general election year, was appreciated by corporate India. The finance minister in her speech put the revised fiscal deficit estimate at 5.8% against the previous estimate of 5.9%.
“The standout feature of the Interim Budget 2024-25 was its adherence to fiscal discipline, exemplified by the decision to cap Fiscal Deficit for FY2024-25 at 5.1%,” said Mohit Malhotra Chief Executive Officer Dabur India Ltd.
“While not immediately pandering to populist impulses, the budget allocates significantly to infrastructure development and provides incentives for rural housing, agriculture, and fisheries. The strategic decisions to enhance incentives for rural populace, particularly women, are expected to have a lasting positive impact, enhancing sentiments over the long term,” Malhotra added.
Ranen Banerjee, Partner and Leader Economic Advisory, PwC India, added that the fiscal deficit being pegged at 5.1% for FY25 is a positive move as it will help free up space for private borrowings as they pick pace during the year, besides helping in containing inflationary pressures and supporting the bond markets.
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