Brands applaud Union Budget 2024, hail it as progressive and balanced

New Delhi: Finance Minister Nirmala Sitharaman presented the annual budget on July 23, 2024. 

Sitharaman said, “The Budget will focus on employment, skilling, MSME and middle class.”

Budget proposals such as duty cuts, higher exemption limits in personal income tax and increased standard deductions will leave more money in the hands of people, leading to increased spending, according to India’s top brands' executives.

An allocation of Rs 1.48 lakh crore for education, employment and skill development was announced.

The budget aims to strengthen India’s economic base by enhancing agricultural productivity and promoting innovation through R&D. It prioritises employment generation, inclusive human resource development, and energy security to propel the nation towards resilience and growth.

From lauding the government's employment and skill-oriented initiatives to expressing optimism about the advancement expected of the economic landscape, these brand responses provide a nuanced perspective on the implications of the budget for various sectors.

Here's a glimpse of their reactions:

Falguni Nayar, Founder and CEO, Nykaa, lauded the budget’s initiatives for e-commerce and the abolition of the angel tax as a significant boost for startups, propelling innovation and investment. 

She added, “With Retail Tech being a key area in startups, this move is poised to drive growth in the digital economy. Overall, the budget presents a robust intellectual framework, focusing on employment, skilling, MSMEs, and the middle class. It sets a promising tone for a Viksit Bharat, emphasizing resilience and inclusivity for India's economic future.”

Emami Group director Aditya V Agarwal said the budget is holistic, offering a level-playing ground for many strata of society.

Both direct tax relaxation under the new regime and the reform initiatives are directed towards sustainable growth and empowerment, he said.

Dabur India Chief Executive Officer, Mohit Malhotra, believes that the standout feature of the Union Budget 2024-25 was its focus on speeding up fiscal consolidation with the Fiscal Deficit being revised down 20 bps from the Interim Budget to 4.9%. He believes that the announcement on Capital Gains tax seems to have come as a big dampener for the market.

He lauded the increased allocation in the budget towards Education, Skilling and Employment and special employment-linked incentive schemes for employees and employers as steps that go a long way in driving consumerism. 

He added, “The Budget's push on urban and rural growth will help boost rural consumption and also increase discretionary spending. Urban Housing needs of 1 crore urban poor and middle-class families are being addressed with an investment of Rs 10 lakh crore. The government's decision to allocate Rs. 2.66 lakh crore for rural development, including rural infrastructure, and its continued focus on rural infrastructure development are big steps in the right direction. These measures would further boost consumer sentiments in the hinterland, which is already showing green shoots of revival.”

Saugata Gupta, MD and CEO Marico, applauded the highlighted economic prudence of the nation and said, "The outlay of Rs 2.66 lakh crore for rural development, and Rs 1.52 lakh crore for agriculture and allied sectors will help in stabilising rural economies and ensuring farmers have access to essential resources. The budget also highlighted the need for self-sufficiency in pulses and oilseeds such as mustard, groundnuts, sesame, soyabean, and sunflowers, working towards strengthening their production, storage, and marketing." 

Sajjan Jindal, Chairman and MD of JSW Group, believes that the focus on natural farming and agricultural productivity, incentivising job creation and employment continued impetus to bolster MSMEs, modernising urban cities and policies aimed at accelerating India's energy transition will have a long-standing effect that would significantly improve economic resilience in an otherwise volatile world economy.

Kiran Mazumdar Shaw, Biocon Executive Chairperson, said, "With the Union Budget 2024-25, the government has taken strides towards realising the Viksit Bharat vision by 2047. This is a forward-looking roadmap that will accelerate India's economic journey holistically. The nine-point agenda laid out by the FM will address and uplift several economic and social reforms in India, if well executed."   

 Hero MotoCorp Executive Chairman, Pawan Munjal, believes that the Budget 2024 positions India as a technology-driven and knowledge-driven economy. He added that it silently strengthens the long term with a substantial capex increase and simultaneously supports current priorities of job creation, MSMEs, skilling and women empowerment while still keeping better-than-expected fiscal discipline. 

He lauded the focus towards agri-resilience reforms, the rural sector and the eastern states of India to help in inclusive growth.

Maruti Suzuki India MD and CEO Hisashi Takeuchi echoed the sentiment and added that it also strikes a balance between agriculture and manufacturing, with elements of services.

Terming the measures announced in the budget "positive,” HUL CEO and MD Rohit Jawa said investment in infrastructure will have a multi-year effect and help drive consumption.

He added that these are the right set of announcements and the focus of the budget is mass consumption.

Amit Khatri, Co-Founder, Noise, called the budget a ‘visionary step towards inclusive growth, with a strong emphasis on manufacturing, upskilling, and women empowerment.’

He added that by linking job creation in manufacturing to first-time workers and offering EPFO incentives, the government is paving the way for a robust manufacturing ecosystem, creating 4 crore jobs over the next five years. 

He lauded the establishment of e-commerce export hubs in a PPP model as another significant step taken by the government to significantly empower MSMEs and traditional artisans to compete internationally. 

He believes that it will open opportunities for Indian players to boost their reach globally while enhancing the ease of doing business and accessing new markets. The export hubs are an efficient step in unlocking similar avenues for homegrown companies, allowing a global stage for their innovation and entrepreneurial mindset, and strengthening India’s position in manufacturing.

He added, “Driven by the vision of Viksit Bharat, we look forward to actively participating in the nation's journey towards global prominence and innovation leadership."

Rikant Pittie, Co-Founder, EaseMyTrip believes that the budget is demonstrating efforts to promote religious tourism and domestic tourism infrastructure. 

“With special focus on Bihar, Nalanda, and Odisha, the government plans to develop the iconic religious sites to support its infrastructure and transform them into world-class pilgrim and tourist destinations. We are optimistic that this will enhance the overall experience of the tourists visiting these religious sites and will uplift the state tourism,” Pittie added. 

Additionally, he highlighted how the government has also shown interest in simplifying taxation in cruise business by proposing a presumptive taxation for cruise ship operations in India. He believes that this initiative aims to encourage foreign cruise owners to operate in India, thereby providing a significant boost to cruise tourism in the country.

Parle Products Vice-President Marketing, Mayank Shah, added that the initiatives announced in the budget would definitely go a long way in terms of both infrastructure as well as investments in the agri sector - in terms of generating demand.

"We will see very strong demand coming in from rural India, which is reviving," said Shah adding a good monsoon and festival season would also drive the demand further.

Moreover, tax reforms, and housing sector reforms will help increase spending in urban India also.

Terming the budget "progressive and balanced,” Emami Vice-President and Managing Director, Harsha V Agarwal, said its focus on multiple sectors, including agriculture, rural development, MSMEs, women, employment and skill development is anticipated to spur economic growth.

"With a clear emphasis on capital spending to generate growth and a strong focus on employment along with some of the tax benefits, we expect consumption to improve," he said.

According to Godrej Consumer Products (GCPL) CFO Aasif Malbari, the budget promises holistic growth of India's macroeconomics at the grassroots level.

"Investments in job creation, skill upgradation, and MSME development will support more inclusive economic growth. The special focus on agricultural schemes and rural development will indirectly boost consumption spending, particularly in rural and non-metro markets," he added.

Pidilite MD and Chairman, CII FMCG Committee, Bharat Puri, said, "The Union Budget through its inclusive and strategic measures aims to boost consumption, attract investments, and create jobs, fostering a vibrant and sustainable economy." 

Sunil Agarwal, Co-founder and Chairman of RSH Global said rationalizing tax slabs will also augment consumer purchasing power, stimulating economic expansion and consumer spending.

"Furthermore, the infrastructure development plan for urban and rural markets will have a dual benefit. It will not only create new income opportunities for rural consumers but also enable FMCG players like us to expand and strengthen our distribution networks in rural, semi-urban, and urban areas, unlocking new markets and opportunities for growth," he said.

IKEA India Country CFO, Murali Iyer, said that the budget demonstrated commitment to supporting MSMEs and women via access to finance, infrastructure and skilling support.

"Innovative schemes, such as internship opportunities for youth and the development of Digital Public Infrastructure reflect the government’s forward-thinking approach. Significant investments in infrastructure and tax relief measures, such as an increased standard deduction for salaried employees, will increase disposable income for consumers, providing a boost to retail," he said.

Voltas MD and CEO, Pradeep Bakshi, said that the budget reflects a forward-thinking approach that will significantly benefit the consumer durables industry and bolster our efforts towards sustainable development.

"The full exemption of customs duties on 25 critical minerals, including lithium, copper, cobalt, and rare earth elements, is a substantial boost for sectors reliant on these materials, such as high-tech electronics and renewable energy," he said.

He believes that this policy will not only enhance the availability of these essential resources but also stimulate domestic processing and refining capacities, driving innovation and reducing costs.

Havells India CMD, Anil Rai Gupta, termed the budget as "visionary and forward-looking" and said it outlines key priority areas, underscoring a commitment to employment and skill development, inclusive growth, manufacturing expansion, urban development and infrastructure enhancement.

"The budget has proposed an impressive Rs 2.66 lakh crore for rural development, focusing on infrastructure and manufacturing support," he said.

Moreover, under 'Pradhan Mantri Suryodaya Yojna,’ empowering one crore homes with solar panels and providing 300 units of free electricity monthly, "this budget sets a robust foundation for India's growth trajectory and reinforces the vision of a sustainable and inclusive future,” he said.