Budget 2024: Indian Finance Minister Nirmala Sitharaman presented the seventh union budget in a row. From infrastructure to education, the budget focused on four major categories: farmers, poor, women, and youth. The FM also announced reforms in the new tax regime and made many changes in long-term capital tax and short-term capital tax rules. 

Here is how experts view budget 2024: 

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Shri Amarendu Prakash, Chairman SAIL

“The government’s retaining the capex for infrastructure on the lines of the interim budget reinforces the strong fiscal support for the infrastructure sector. The focus on urban housing, enhancement of rural infrastructure, further improvement in road connectivity, and development of various corridors is expected to boost domestic steel consumption. This commitment to enhance connectivity and build resilient infrastructure will not only drive steel consumption but also create a multiplier effect, benefit various sectors thereby contributing to the nation's overall economic prosperity.”

Vaibhav Porwal, Co-founder, Dezerv

"The recent changes in the union budget, particularly the increase in STCG and LTCG tax signal a significant shift. While the market's initial reaction may seem bearish, we believe these changes will ultimately foster a more stable and mature investment environment. The widening gap between STCG and LTCG rates is a clear incentive for longer-term holdings, which aligns with our view of creating sustainable wealth. This move is also a step towards standardising taxation across various asset classes, potentially simplifying the investment decision-making process for many. The market is currently responding with a short-term perspective, particularly concerning the Securities Transaction Tax (STT) adjustments in derivatives. This will undoubtedly impact the profitability of frequent traders. However, we encourage investors to look beyond immediate market reactions and consider the long-term benefits of a tax structure that promotes patient capital."

Sandeep Agrawal, Director and Founder of Teamlease Regtech

"The abolition of the Angel Tax is a much-awaited move by the finance minister. This will boost the entire Start-up ecosystem and is viewed as pro-business and pro-innovation measures that will stimulate the economic growth and job creation. Steps like comprehensive digitalization of taxpayer services, simplification and rationalisation of the GST tax structure, and integration of the e-ashram portal with other platforms to offer a unified labor services solution, etc. indicate the government’s commitment towards digitalisation aimed at building transparency and enhancing compliance for corporates in India."

Atul Parakh, CEO of Bigul

"These measures taken in the agriculture sector, coupled with promoting natural farming and certification, could create premium market segments for agricultural products, potentially fetching better prices for farmers. The long-term success of these ambitious initiatives hinges on effective implementation and efficient utilisation of allocated funds. Consistent monitoring and evaluation will be crucial to assess the real impact on agricultural growth and farmer well-being. Overall, Budget 2024's focus on R&D, infrastructure, market access, farmer income, and self-sufficiency paints a positive picture for the agriculture and allied sectors in the coming year."

Colin Shah, MD, Kama Jewelry

“The reduction of customs duty on gold, silver and platinum is a welcome move by the Finance Minister. This was one of the long-standing demands of the industry and coming up with this announcement, especially at a time when the industry is already grappling with various challenges will certainly help the industry to march on the path to progress. This will play a major role in bringing down the cases of smuggling and provide cost benefits to the consumers in the country, which will provide a major fillip to the demand in the domestic market. This will also provide a big boost to FTAs, thereby creating a space for expanding the exports in the less explored overseas markets."

Varun Alagh, CEO & Co-founder, Honasa Consumer Limited

"The budget's focus on boosting consumption and enhancing purchasing power parity across the FMCG sector is commendable. The government's commitment to improving infrastructure, creating disposable incomes, and generating jobs is expected to significantly uplift the rural economy. The announcement of substantial job creation initiatives, particularly in manufacturing and services, will help reduce unemployment and provide stable income sources for many families. This holistic approach ensures that we, as an FMCG company, can continue to innovate and meet the evolving needs of our consumers. We are optimistic that the budget's emphasis on sustainable and inclusive growth will propel the industry forward and bring long-term benefits to the entire value chain."

Pradeep Gupta, Co-founder & Vice-chairman, Anand Rathi Group

"The budget remains committed to strengthening the infrastructure, manufacturing, and housing sectors, which are crucial for long-term economic resilience. Additionally, it introduces targeted measures to boost consumption among low-income groups by focusing on agriculture and welfare schemes and improving access to finance. For the middle-income bracket, the budget encourages consumption through employment incentives and selective income tax reliefs, aiming to stimulate consumer spending and economic vitality."

Vaibhav Jain, Head of Business - Equities, Share.Market

"On the sectoral front, the focus is largely positive. However, what stood out was the lack of mention of railways, defence, or public sector undertakings (PSUs) in the budget. These sectors have seen substantial growth and government support in recent years, making their omission a surprise to the market. This unexpected development has been reflected in stock prices.”

Bhavik Thakkar, CEO, Abans Investment Managers Pvt Ltd

"The removal of indexation benefit for property and other assets will increase tax outflows. For example, if you had bought a property for Rs 100 in 2001 and sold it for Rs 500 in 2024, as per the earlier tax regime (when indexation benefits were allowed), the tax outflows even at 20 per cent rate would have been Rs 27.4 (as CII for FY25 is 363) whereas as per today’s budget announcement, the tax outflow at 12.5 per cent rate would be Rs 50. This may potentially impact secondary sales of properties."

Catch all the stock market updates here. For all other news related to business, politics, tech and auto, visit Zeebiz.com.

DISCLAIMER: The views and investment tips expressed by investment experts on zeebiz.com are their own and not those of the website or its management. zeebiz.com advises users to check with certified experts before taking any investment decisions.