"It is noteworthy that this is a budget entirely focused on fiscal consolidation and not populism, which was expected to be in focus because of the upcoming general elections"; "Tech Corpus Positions India's R&D To Capitalize On Young Demographic"
FinTech BizNews Service
Mumbai, February 1, 2024: The prominent BFSI figures have welcomed the Union Budget 2024, presented by the Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman in the Parliament in New Delhi today.
Murty LVLN, CEO, Dvara KGFS; “The Interim Budget 2024-2025 has highlighted the importance of empowering 4 major castes - ‘Garib’ (Poor), ‘Mahilayen’ (Women), ‘Yuva’ (Youth) and ‘Annadata’ (Farmer). We are happy to notice the significance given to farmers and women SHGs. The continuous focus of the budget on the MSME sector, to compete globally, will result in a positive incentive for the rural parts of the country, thereby, increasing the rural GDP. Sufficient importance is also given to ensure timely and adequate finances, relevant technologies and appropriate training is provided to MSMEs. The boost given to ‘Annadata’ through the various farmer schemes and e-mandis will also be in favor of many Fintech and Agritech companies.”
Sahil Kapoor, Head - Products and Market Strategist at DSP Mutual Fund: It is noteworthy that this is a budget entirely focused on fiscal consolidation and not populism, which was expected to be in focus because of the upcoming general elections. The most pleasing words from the budget: "No changes in taxation." It's a budget that focuses on the continuation of policy and doesn't introduce any surprises. It's a budget prepared keeping in mind that global fiscal expenditure may decrease this year, and the global monetary policy may tighten. The government has assumed an increase in total expenditure of 6.1% YoY in FY25. This is the lowest growth in 8 years, and less than half of the 8-year average of 12.4%. The budget has a negative fiscal impulse, with the gross fiscal deficit contracting by Rs. 49,000 crores and the primary deficit reducing by Rs. 1.8 lakh crores. The bond market has rejoiced with a drop in yields, and rightfully so. Gross and net borrowing for FY25 are lower than FY24. The fiscal deficit is expected at 5.1% for FY25, a reduction of 0.7%. With India getting included in global bond indices and the supply of Govt. Securities estimated to be lower, it will lift a major hurdle for the RBI to exercise a more neutral to easy monetary policy - advantage duration funds.
Jyoti Prakash Gadia, Managing Director at Resurgent India
The FM has chosen to concentrate on the initiatives already taken by them in the fields of agriculture, dairy farming, MSME and infrastructure with a long-term perspective in mind. The emphasis on the tourism sector is a welcome move considering the immense potential we have and the bad times it faced during the pandemic. The overall announcements are on expected lines as a part of the interim budget without any major announcements of specific areas.
The announcements about income tax relaxation and rationalisation of indirect taxes were much expected but the same proved to be unfortunately a part of wishful thinking only. The FM is relying upon the strategy of maintaining continuity and consistency to prove their point in favour of a brighter future with a comprehensive set of reforms set out in due course.
Rajan Bajaj, Founder-CEO, slice: "The government's allocation of a ₹1 lakh crore corpus for technological research in this year's budget is a game-changer. It positions India's R&D to capitalize on our young and dynamic demographic. The provision of interest-free support will undoubtedly catalyze scaling up research and innovation, fostering significant strides in filling economic gaps. Made in India tech is the future, and we’re here for it!”
Abhay Bhutada, Managing Director, Poonawalla Fincorp: “The 2024 Interim Budget is a decisive step towards India's economic sustainability, in line with the 'Viksit Bharat by 2047' vision. The fiscal responsibility reflected in the 5.8% GDP fiscal deficit is commendable. The 'First Develop India' focus promotes FDI, aligning with our global collaboration goals. I anticipate progressive policies supporting fintech, digital lending, and digital skills.”
Deena Jacob, Cofounder & CFO, of OPEN: "A budget that is again aimed at fundamentals for growth including infrastructure investments, entrepreneurial and skill development and ensuring basic needs are well served for the deserving section, all while focusing on ease of doing business and ensuring more disposable income across strata. Reduction in fiscal deficit and allocation to key capital expenditure heads are good moves to ensure inflation is in check; overall a balanced interim budget."
Manish Jaiswal, Managing Director and Chief Executive Officer at Grihum Housing Finance: "It's truly encouraging to witness the Finance Minister reiterate the government's ambitious vision of achieving 'Viksit Bharat' status by 2047, signifying a $30 trillion economy. The commitment to inclusivity through the 'Sabka Saath, Sabka Vikas, Sabka Vishwas' approach is commendable.
Addressing the Affordable Housing sector, I applaud the initiative to create nearly 30 million houses under the PM Awas Yojana (Grameen), with an additional goal of constructing 20 million more in the next five years. Affordable Housing finance companies can significantly contribute to meeting this target.
Furthermore, the decision to provide free electricity through rooftop solar installations to 10 million houses is a positive step toward fostering Green Housing, crucial for sustainable and clean GDP growth. The government's vision to balance economic growth with environmentally conscious practices is pivotal for a holistic and forward-looking economy."
