Budget 2024 industry, market reactions LIVE updates | Budget focuses on making India $5 trn economy, developed nation: Assocham

Lt. Gen. AK Bhatt, Director General, Indian Space Association said “We commend the government’s allocation of the ₹1 lakh crore corpus in the interim budget 2024 for long-term financing of technological research. This move will be beneficial for startups in the rapidly expanding space sector, providing them with support to innovate and conduct further research across various domains of space technology.

“Additionally, the new scheme being launched for boosting deep-tech for the defense sector will be transformative. This initiative holds significant promise for DefSpace startups, which can play a substantial role in enhancing the ecosystem due to the integral relationship between space and defense industries.

“However, we are sanguine that the post-election full budget will include support for a liberal FDI policy for space, inclusion of space grade components in PLI, reduction of GST for satellites, launch vehicles and ground equipment manufacturing and provide tax holidays and lower import duty for space sector firms.”

Madhavan Menon, Executive Chairman, Thomas Cook (India) Limited said “The interim Budget presented by the Finance Minister has focussed on Tourism with a multipronged approach that we believe will create a multiplier effect across aviation, tourism and allied sectors, boosting growth and employment generation. 

“We welcome the announcements on airport development and expansion: having already doubled to 149 airports in the last decade, the government’s plans to boost air connectivity by the addition of 517 new routes across Tier 2-3 cities, carrying 1.3 crore passengers via the UDAN scheme, will play a critical role with vibrant hub and spoke air corridors to boost accessibility-affordability for Regional India.

“Implementation of major rail connectivity corridors via the PM Gati Shakti program together with port and metro/rapid transport expansion will serve to create valuable multi modal connectivity for Tourism.

“We welcome the special focus on Domestic Tourism which represents a vibrant growth driver via the government’s plan of long-term interest free loans to States; development of iconic tourism centres by States along with marketing on global standards. What was noteworthy is the reference to Spiritual Tourism and projects for port connectivity, tourism infrastructure and amenities on islands including Lakshdweep – aimed at development of India’s hidden gems and employment opportunities.

“Further, the strong capex outlay of Rs 11.11 lakh cr, a significant 4% of our GDP, will serve as a catalyst to the Country’s growth potential and job creation.”

Agriculture and allied sector players termed the Interim Budget 2024-25 as a promising roadmap for strengthening agriculture, agrochemical, dairy sectors by encouraging investment in research and development, technology and warehousing that will empower farmers and their livelihood.

“The Interim Budget 2024-25 reiterates the government’s commitment to strengthening the ‘Annadata’ and backbone of our nation - our farmers. From direct financial assistance through PM-KISAN SAMMAN Yojana to expanding farmer-centric policies and promoting innovations, the budget paves the way for inclusive, sustainable growth in the agricultural sector,” Godrej Agrovet Managing Director Balram Singh Yadav said.

Parag Milk Foods Chairman Devendra Shah said with the focus on the agriculture sector, the announcement of a comprehensive program for dairy farmers, coupled with efforts to control foot and mouth disease, is a positive step.

“The commitment to promote indigenous breeds and fostering research and development in the dairy sector through government schemes lays the foundation for increased productivity and sustainable growth,” he added.

Warehousing services provider Sohan Lal Commodity Management (SLCM) Group founder and CEO Sandeep Sabharwal said that the impetus given to post-harvest activities in the Interim Budget is a welcome step.

“It is a positive move to encourage private-public partnerships and address the diverse ambit of post-harvest agricultural logistics, including storage, supply chain as well as primary and secondary storage. In addition to the one crore women already coming under the purview of Lakhpati Didis, the government now intends to incorporate 3 crore new Lakhpati Didis under the scheme, and we hope it transforms several lives in the Indian agri space across the rural parts of the country,” he added.

Deloitte India Partner and Consumer, Products and Retail sector Leader, Anand Ramanathan commented that the Interim Budget 2024-25, continues to support growth and productivity in agriculture through interventions in crop insurance, encouraging use of nano fertilisers, promoting self-sufficiency in oilseed production, and increasing investments in micro food processing.

“Also, from a protein standpoint - boosting dairy productivity and supporting sea food exports are some of the big areas of focus. These announcements will provide employment opportunities for the rural economy,” he stated.

Dhanuka Agritech Managing Director MK Dhanuka said, “The announcement to further encourage private and public investment in areas of post-harvest activities including aggregation, modern storage, efficient supply chains, primary and secondary processing and marketing and branding is a laudable step.” “The decision to promote the application of nano DAP on various crops in different agro-climatic zones is in line with the government’s vision of promoting technological advancement in the rural sector.” KC Ravi, Chief Sustainability Officer, Syngenta India and Chairman Crop Life India, said that the robust physical-digital-social infrastructure developed in the last decade has given the economy a good foundation for a Viksit Bharat by 2047.

Digital infrastructure and infusion of technology is imperative to not only sustain the momentum but also to take the agriculture growth story to its logical conclusion. he said.

Agritech start-up Otipy’s founder and CEO Varun Khurana said the encouragement for private and public investment in post-harvest activities is commendable, promising a more resilient and sustainable agricultural ecosystem.

“The commitment to modernise the farm sector, focusing on improved storage, efficient supply chains, and branding, reflects a strategic vision to enhance the overall efficiency and competitiveness of Indian agriculture.

These measures align with the contemporary needs of the sector and are crucial steps towards ensuring long-term prosperity for farmers and fostering growth in the agritech landscape,” he noted.

Insecticides India Managing Director Rajesh Aggarwal said the continuation of flagship schemes such as the PM Kisan Samman Yojana and PM Fasal Bima Yojana, providing direct financial assistance and crop insurance respectively, exemplifies the government’s dedication to safeguarding the livelihoods of our farmers.

“We are particularly encouraged by the emphasis on technology adoption and innovation in agriculture. The integration of 1,361 mandis into the Electronic National Agricultural Market, serving 1.8 crore farmers, is commendable. Furthermore, the budget’s focus on modern storage, supply chains, and branding, will encourage private and public investment in post-harvest activities,” he said.

Arya.ag co-founder and CEO Prasanna Rao commented that the Budget’s commitment to boost both private and public investment in post-harvest infrastructure will go a long way in enhancing the outcomes.

“It will not only lead to a reduction of losses but also elevate productivity. Additionally, the expansion of Nano DAP and the commitment to oilseed self-reliance are pivotal and significant steps in achieving sustainable agricultural advancement,” he added. -- PTI

Gurpreet Chhatwal, Managing Director, CRISIL Ratings Ltd. on Union Budget 2024: “The corporate bond market is expected to benefit from increased availability following lower than expected government bond sales by ~₹1 lakh crore next fiscal, as the government seeks to rein in the fiscal deficit to 5.1% of GDP. This along with expected moderation in interest rates as inflation remains under control, augurs well for the anticipated revival in private sector capex across sectors in fiscal 2025.” -- The Hindu Bureau

Moody’s Investors Service on February 1 said the interim budget for 2024-25 firmly conveys the government’s commitment to its fiscal consolidation goals, set against a backdrop of healthy economic growth.

Moody’s Investors Service Senior Vice President Christian de Guzman said the government demonstrated fiscal restraint in not resorting to large handouts or increasing discretionary spending ahead of this year’s elections.

“The government anticipates that reduced spending as a percentage of GDP will largely drive the reduction in the fiscal deficit, despite ongoing increases in planned infrastructure spending,” Guzman said.

Given the challenging global environment and the potential for climate-related shocks, emerging spending needs not currently included in the budget could restrict the government’s ability to meet its deficit target, he added. -- PTI

The business community in Singapore said the interim budget presented by Finance Minister Nirmala Sitharaman in Parliament “prioritising pragmatism over populism” and emphasising a sustainable budget for a developing India is sure to hit the bull’s-eye. 

“The idea of launching new programmes to develop the strength of our technologies is the need of the hour and I think Nirmala Sitharaman’s budget captures this aspect very well,” said Atul Temurnikar, co-founder and chairman of the Singapore-based Global Schools Foundation.

There is also a concerted effort to allocate more funds to the education sector which is a welcome sign, he said.

Presenting a vote on account for 2024-25 in Parliament, Ms. Sitharaman proposed no changes in income tax rates for individuals and corporations, as well as customs duty.

She hiked capital expenditure to ₹11.11 lakh crore for 2024-25 while trimming the fiscal deficit for this financial year to 5.8%, from the budgeted 5.9% of GDP, and further lowering it to 5.1% in the next fiscal.

“All in all, Prime Minister Narendra Modi government’s emphasis on a sustainable budget for a developing India is sure to hit the bull’s-eye,” he told PTI.

Separately, Radhika Rao, Senior Economist, DBS Bank, sees the budget as “prioritising pragmatism over populism” by focusing on higher capEx disbursements and faster fiscal consolidation.

The math not only projected a better than-budgeted deficit target for the current year FY24 (year ending March 2024) but also pegged the FY25 goalpost at a narrower -5.1% of GDP (vs expectations of -5.3-5.4%), she noted.

By extension, gross and net borrowings are much lower than FY24 providing significant relief to the domestic debt markets, which will help keep a lid on the cost of borrowing and crowd-in the private sector, believes Rao.

“Despite the welfare focus on women, youth, poor as well as the farming community, the government refrained from outright populism, whilst maintaining a continued emphasis on capEx to improve the quality of spending,” she said. -- PTI

The interim budget focuses on the government’s objective of making India a USD 5 trillion economy and a developed nation by 2047, Assocham President Ajay Singh said on February 1. 

Finance Minister Nirmala Sitharaman presented her sixth Budget in which she announced a ₹11.11 lakh crore spending on infrastructure among other proposals.

“It is an India-first budget. A confident budget of a confident government that focuses on the objective of ensuring that India becomes a 5 trillion-dollar economy by 2025 and a developed nation by 2047,” Mr. Singh told PTI in a post-budget interaction.

Speaking further, he said the government has focused on infrastructure, startups, and rail corridors in the Budget. The Finance Minister also announced a ₹1 lakh crore fund for research and development and the startup sector which is a very significant move.

There is no question that the Budget will have a significant impact on the common man, Singh, who is also the CMD of airline company SpiecJet, said.

To a question related to announcements related to the aviation sector, he said, “There is little in aviation that can be done. The government has already done a lot here. They are spending a lot in building airports and building infrastructure.” The GST Council can decide on the inclusion of aviation turbine fuel (ATF) in the GST regime and so “we have to keep explaining our case to GST Council. So, that is not something to be taken in the Budget,” Singh said.

Civil aviation will continue to play a large role in improving religious tourism, medical tourism, he added.

Assocham Secretary General Deepak Sood said “Given the fact that it is an interim Budget ahead of the Lok Sabha elections, leaving tax rates unchanged is quite understandable, but the intentions are quite clear in terms of focus on youth, women, skill development. Statement on dealing with the challenge of population growth is quite brave and is in alignment with the national objective of making ‘India a developed nation.’

“Quality of expenditure stands out as a unique feature of the Budget. Capital expenditure of ₹11.11 lakh crore provided for FY2025 with an increase of nearly 17% over the revised estimates of the previous fiscal, is a testimony of the government’s determination to invest heavily in infrastructure build-up. Such an approach is paying dividends for sustaining economic growth,” the body said in a statement. -- PTI

Healthcare experts gave a thumbs up to the Centre’s plan to set up more medical colleges by utilising the existing hospital infrastructure, with some saying the move demonstrates a “holistic commitment” to health. 

Finance Minister Nirmala Sitharaman, while presenting the interim Union Budget, among other announcements, also said the government will encourage vaccination for girls in the 9-14 year age group for the prevention of cervical cancer.

Serum Institute of India (SII) CEO Adar Poonawalla hailed the government’s announcement. 

“I applaud the announcement to vaccinate girls aged 9-14 against cervical cancer. Let’s pledge to prevent HPV (Human Papillomavirus) and ensure easy access to vaccination. Extending health cover for ASHA and anganwadi workers, setting up more medical colleges and streamlining maternal and child healthcare schemes demonstrate a holistic commitment to health,” he wrote in a post on X.

Other medical experts said creation of more medical colleges in the country is “crucial”.

WHO representative to India Dr Roderico H Ofrin applauded the extension of healthcare coverage to them under Ayushman Bharat saying ASHA workers, anganwadi workers and helpers are at the forefront of health and care delivery at the grassroots level.

“The initiatives announced today – upgrading existing hospital infrastructure to increase medical colleges, harmonisation of maternal and child care implementation, introduction of HPV vaccination for cervical cancer prevention and the expansion of the U-WIN platform across for managing and intensifying immunisation – will further strengthen systems and healthcare services across the country,” Dr. Ofrin said.

“The WHO welcomes investments in these areas and will continue to support the Government of India in achieving health for all and meeting its disease elimination goals,” he stated.

Dr Girdhar Gyaani, founder director, Association of Healthcare Providers (India), said inclusion of ASHA and anganwadi workers and helpers under PM-JAY showcases a holistic and inclusive approach, strengthening the backbone of India’s healthcare system.

Abhishek Kapoor, CEO, Regency Hospital, said the announcement “is a recognition of their invaluable contribution to community health”. This step not only safeguards their well-being but also strengthens the foundation of our healthcare system, he added.

Dr Gyaani further said, “We also commend the government’s visionary steps to fortify the healthcare infrastructure by establishing more medical colleges and leveraging existing hospital facilities. The creation of a dedicated committee to address related issues is a strategic move that aligns with our shared commitment to continuous improvement.” Sugandh Ahluwalia, chief strategy officer, Indian Spinal Injuries Centre in New Delhi, said, “The paramount importance lies in capacity building within the realm of public health. A robust focus, particularly through the creation of more medical colleges in the country, is crucial.” Dr Ashutosh Raghuvanshi, MD and CEO, Fortis Healthcare, said the 2024 interim Budget takes a “forward-looking approach to healthcare”.

“Establishing a committee to expand medical colleges within existing hospital infrastructure addresses the shortage of healthcare professionals and strengthens medical education. Additionally, the initiative to combat cervical cancer through HPV vaccination for girls aged 9-14 in six states is proactive in disease prevention,” he said.

Furthermore, the introduction of the U-WIN platform for immunisation management, combined with intensified efforts like Mission Indradhanush, demonstrates a technology-driven approach to vaccination, Raghuvanshi said.

Ms. Sitharaman also said the newly designed U-WIN platform for managing immunisation will be rolled out expeditiously across the country.

Dr Sunny Jain, senior consultant and head of oncology department, Marengo Asia Hospitals, Faridabad, said, “The cervical cancer vaccine prevents and guards the women against the HPV virus-induced carcinoma cervix. We are happy that the government is making strong efforts towards cancer prevention and has encouraged cervical cancer vaccination for girls between 9-14 years of age.” Probal Ghoshal, executive chairman, Ujala Cygnus Group of Hospitals, said the government’s commitment to enhancing the healthcare infrastructure through the establishment of more medical colleges and utilising existing hospital infrastructure is a commendable step towards bolstering the nation’s healthcare capacity.

“We applaud the creation of a dedicated committee to address related issues, foreseeing positive outcomes from their recommendations,” he stated. -- PTI

The government’s announcement in the Budget to launch a scheme to help middle-class people buy or build homes will boost demand for residential properties and help in the overall growth of the real estate sector, according to property developers and consultants.

Commenting on the Budget proposals, CREDAI President Boman Irani said these initiatives are “encouraging and will aid in the growth of the housing market”.

Sustained focus on infrastructure development will further boost growth in the housing sector, he said.

“However, as the tax rates remain unchanged, the common man will not have additional money in his pocket, which may be a deterrent on the spending capacity of taxpayers,” Irani said.

Shapoorji Pallonji Real Estate MD & CEO Venkatesh Gopalakrishnan acknowledged the government’s efforts but demanded “targeted measures in the upcoming Union Budget to unlock the sector’s full potential”.

He sought an increase in the deduction on interest on home loans from ₹2 lakh to ₹5 lakh annually to incentivise homebuyers and also boost industry revenue.

PTI

Shares of state-owned Housing and Urban Development Corporation (HUDCO) zoomed 20% higher after Finance Minister Nirmala Sitharaman announced building 2 crore more houses for the rural poor in the next five years.

These 2 crore houses will be built under the PM Awas Yojana (Grameen).

The stock surged 19.99% to close at ₹206.80 apiece, its upper circuit limit as also a 52-week high level on the NSE.

On the BSE, shares of HUDCO zoomed 19.62% to settle at ₹206.35 per piece.

- PTI

The WHO applauded the extension of healthcare coverage to ASHA and anganwadi workers under Ayushman Bharat saying they are at the forefront of health and care delivery at the grassroots level.

“The initiatives announced today – upgrading existing hospital infrastructure to increase medical colleges, harmonisation of maternal and child care implementation, introduction of HPV vaccination for cervical cancer prevention and the expansion of the U-WIN platform across for managing and intensifying immunisation – will further strengthen systems and healthcare services across the country,” the global health body said.

“The WHO welcomes investments in these areas and will continue to support the Government of India in achieving health for all and meeting its disease elimination goals,” it stated.

Healthcare experts gave a thumbs up to the Centre’s plan to set up more medical colleges by utilising the existing hospital infrastructure, with some saying the move demonstrates a “holistic commitment” to health.

Finance Minister Nirmala Sitharaman said the government will encourage vaccination for girls in the 9-14 year age group for the prevention of cervical cancer.

Serum Institute of India (SII) CEO Adar Poonawalla hailed the government’s announcement.

“I applaud the announcement to vaccinate girls aged 9-14 against cervical cancer. Let’s pledge to prevent HPV (Human Papillomavirus) and ensure easy access to vaccination. Extending health cover for ASHA and anganwadi workers, setting up more medical colleges and streamlining maternal and child healthcare schemes demonstrate a holistic commitment to health,” he wrote in a post on X.

ITC chairman Sanjiv Puri lauded the interim budget as it demonstrates India’s confidence as an economy of substance and immense promise, marching towards a developed nation.

“We are happy to see the continued increase in capex outlay for public works, with a focus on rural, tourism, women empowerment and technology. The ₹1 lakh crore fund that is to be provided... So, all in all, many positives. It’s a great budget. There are lots of stuff to be with rural,” Mr. Puri said.

- PTI

Also Read | Tourism infrastructure to be taken on Indian islands, including Lakshadweep: Finance Minister Sitharaman in Interim Budget speech

Industry leaders welcomed the interim Budget 2024-25 presented by Finance Minister Nirmala Sitharaman, saying the measures announced augur well for India to deliver on aspirational yet people-centric, inclusive development with prudence scoring a decisive victory.

They termed the Budget as a forward-looking one and a “budget of continuity and trust” with no populist measures despite being presented ahead of the general elections.

- PTI

The announcement of ​₹1 lakh crore corpus for research and innovation in the technology sector​ in the interim Budget is a “positive measure” that will spur growth, COAI said.

The body also expressed hope that the industry’s wishlist including plea for lower levies will be duly considered in full budget post-elections.

The interim Budget has re-emphasised the government’s economic policies and the commitment to sustained growth, improving productivity and creating opportunities with a focus on skilling and reskilling, said the industry body whose members include Reliance Jio, Bharti Airtel, Vodafone Idea and others.

“We are hopeful that in the post-election full budget, the industry’s suggestions to reduce regulatory levies like license fee, deferring USOF contribution till the existing funds are exhausted, exemption of Basic Customs Duty (BCD) on telecom equipment, waiving of GST on regulatory payments and refund of ITC, among others, will be considered and addressed by the Government during the course of the year,” S.P. Kochhar, Director General of COAI said.

- PTI

The lower divestment target at ₹50,000 crore suggests a “change in strategy” for the government, wherein it wants to sell a company at the right price and not undertake a distress sale, NSE Chief Executive Ashish Chauhan said.

He said simultaneously, the government is working to strengthen public sector undertakings as we have seen in the recent past.

“They (government) want to ensure that they realise the best price going forward from those PSUs in a reasonable time horizon rather than a distress sale. So, in general the strategy seems to have changed,” Mr. Chauhan, who is also the managing director of the exchange, told PTI.

Lack of clarity on interest rate cuts has kept foreign investors away, he added.

- PTI

The rupee appreciated by 8 paise to close at 82.96 against the US dollar after the government hinted at faster fiscal consolidation and lower borrowings in its interim Budget for 2024-25.

However, a strong greenback against major rivals overseas and subdued domestic equity markets restricted the sharp gain in the domestic unit, forex traders said.

Continuing on the fiscally prudent path, the Modi government in the interim Budget refrained from announcing populist measures, which will help it trim the fiscal deficit to 5.1% of the GDP next fiscal and 4.5% in FY26.

- PTI

Benchmark equity indices ended lower on the Budget day as investors opted for profit-taking amid mixed cues.

After shedding early gains, the markets turned volatile during the presentation of the interim Budget, where in the capital expenditure outlay was marginally hiked but there were no major announcements.

The 30-share BSE Sensex declined 106.81 points or 0.15% to settle at 71,645.30. During the day, it gyrated between a high of 72,151.02 and a low of 71,574.89.

The Nifty dipped 28.25 points or 0.13% to 21,697.45. It oscillated between the day’s high of 21,832.95 and a low of 21,658.75.

- PTI

The Union Budget presented by Finance Minister Nirmala Sitharaman enhances the credibility and confidence of India of becoming a ‘Viksit Bharat’ or a developed nation by 2047, said N.K. Singh, former Chairman of Finance Commission.

Mr. Singh said the country’s growth trend is looking upward at 7%.

Mr. Singh further noted that a fiscal deficit number 5.9% of the GDP was estimated for 2023-24 earlier, but it now stands at 5.8%.

The path for fiscal consolidation has been deepened, he added.

- PTI

After the presentation of the interim budget, executive director of the IMF and former Chief Economic Advisor K.V. Subramaniam termed the budget as judicious on the fiscal front, non-populace and visionary. 

“...Overall, that is how I would assess it - judicious on the fiscal front, non-populace because it is more of the same and visionary because many other steps on innovation and CapEx etc.” said Mr. Subramanian

- ANI

India’s interim Budget for 2024-25 received mixed reactions from the Indian business community in the Gulf with some hailing it as forward-looking while others voicing disappointment over the absence of tax reliefs for individuals.

“In the interim Budget 2024, there is a need to enhance digitalisation of tax return filing-linked procedures such as changing residency status, assessments and even alternative tax return verification systems linked to NRIs,” said Deepak Bhatia, Managing Director at Uncle’s Shop Building Material Trading, Dubai.

Mr. Bhatia said that from the infrastructure point of view, the 11.1% higher capex budgeted for infrastructure is lower than what has been the run rate in the previous years.

Sunil Manjarekar, President of GMBF Global, chose to look at the positives, especially the focus on women empowerment through entrepreneurship and the 30-crore Mudra Yojana loan.

According to Mr. Manjarekar, the focus on a green economy through promoting electric vehicles will support sustainability.

Sahitya Chaturvedi, the convener of India Business Professional Council (IBPC) Dubai, said that the interim Budget 2024 is likely a vision statement for Viksit Bharat, a journey from a developing to a developed country by 2047.

“The initiatives towards solarisation, electronic vehicles, green energy, Ayushyaman Bharat, modern farming, post-harvesting activities, Gokul Mission, Matsa Sampada, Lakhpati Didi, rural and mid-scale housing are excellent initiatives to make the economy larger than 5 trillion US dollars,” he said.

- PTI

The real estate sector echoed a sentiment of cautious optimism while reacting to the interim Budget presented by Union Finance Minister Nirmala Sitharaman in the Lok Sabha.

A.M. Karthik, senior vice-president and co-group head at ICRA Ltd, emphasised the positive impact of the Budget on affordable housing demand.

Mr. Karthik predicted a surge in demand for affordable housing units following the Centre’s announcement of an additional two crore housing units under the PMAY (Grameen) and a proposed housing scheme for the middle class.

Sushil Mohta, president of CREDAI West Bengal and chairman of Merlin Group expressed disappointment over the lack of further tax benefits, suggesting that it might hinder investment in homes. He hoped for more focus on the eastern region in future announcements.

Shishir Baijal, chairman and managing director of Knight Frank India, commended the government’s unwavering commitment to long-term social and infrastructure development.

He underscored the significance of the 11.1% increase in infrastructure outlay, particularly noting its potential to bolster economic hubs and catalyse growth in tier-2 and tier-3 cities.

- PTI

According to Devendra Kumar Pant, the chief economist at India Ratings, the projected fiscal deficit numbers for FY24 and FY25 suggest that the government is serious about achieving the fiscal consolidation path of 4.5% fiscal deficit by FY26, and given the nominal GDP growth assumption and revenue buoyancy, the target appears plausible, Mr. Pant said in a note.

The net market borrowing of Rs 11.75 lakh crore in FY25 augurs well for the bond market and is likely to have a favourable impact on 10-year G-sec yields, he added.

Yezdi Nagporewalla, chief executive at KPMG India said, the interim Budget has ensured to not be swayed by short-term political compulsions and ensuring to keep the fiscal deficit in check. It also shows the government’s seriousness about treading on the green growth path commitment to equitable and inclusive growth focusing on the poor, women, youth and farmers, infrastructure development and fiscal prudence. These are likely to create new opportunities, uplift demand, and unlock multipliers for the economy.

- PTI

Federation of Hotel & Restaurant Associations of India president Pradeep Shetty welcomed the government’s emphasis on the tourism and hospitality sector.

“The enhanced focus of the government for promotion of MICE, religious tourism, iconic tourism centres and domestic tourism will lay the foundation of tourism development in the Amrit Kaal and equip the sector to achieve the ambitious target of welcoming 100 million tourists by 2047. The tourism and hospitality sector are also very delighted to hear about the government’s vision to grant long term financing to states for developing iconic tourism centres,” he added.

- PTI

After Finance Minister Nirmala Sitharaman announced the interim budget earlier in the day, the markets witnessed a decline.

Sensex declines 106.81 points to settle at 71,645.30 while Nifty dips 28.25 points to 21,697.45.

Edible oil industry body SEA on February 1 welcomed the government’s announcement to formulate a strategy to make India self-reliant in cooking oils and sought adequate financial support for the successful implementation of ‘Atmanirbhar Oil Seeds Abhiyan’. 

Presently, India imports about 150 lakh tonnes of edible oil, valued at over 1.35 lakh crore ($17.25 billion) annually, Solvent Extractors’ Association of India (SEA) said in a statement.

“We extend our appreciation to the government for unveiling the visionary ‘Atmanirbhar Oil Seeds Abhiyan’, which focuses on key oilseeds like mustard, groundnut, sesame, soybean, and sunflower,” SEA president Ajay Jhunjhunwala said.

This initiative encompasses crucial aspects like research for high-yielding varieties, the widespread adoption of modern farming techniques, the establishment of market linkages, procurement, value addition, and crop insurance, the body said.

“In our appeal to the Finance Minister, we earnestly request adequate financial support for the successful implementation of the ‘Atmanirbhar Oil Seeds Abhiyan’. Our goal is to reduce the current dependency on edible oil imports from 60% to 30% over the next five years,” SEA added.

Additionally, the association recommended encouraging private partnerships with companies engaged in the oilseed extension programme and research activities under the aegis of the central government.

“This collaborative approach will complement government efforts and significantly contribute to the augmentation of oilseed production and productivity in the country,” it said.

In her budget speech, the Finance Minister announced that a strategy would be formulated to achieve ‘atmanirbharta’ for oil seeds like mustard, groundnut, sesame, soybean, and sunflower. -- PTI

Snapdeal Co-Founder Kunal Bahl said the vision of “Viksit Bharat 2047” is built on the strong foundations of decisive governance, inspirational leadership and proven track record of delivering digital, physical, social infrastructure.

“The emphasis on boosting innovation through the low/no interest 50 year loan, expanding capex on infrastructure and adhering to fiscal deficit goals are significant strong points from this Interim Budget,” he added.

- PTI

Mr. Vinay Kumar G, Vice President and Sector Head — Corporate Ratings, ICRA Limited says “Capital allocation for the Ministry of Road Transport & Highways increased by 3% to ₹2.72 trillion in FY2025 BE from ₹2.65 trillion in FY2024 RE. Although the growth is modest at 3%, it indicates government’s focus on the road sector and enables the ministry to meet the completion targets for the Bharatmala and the NIP (National Infrastructure Pipeline). In line with the last year budget announcement, the government continued with nil borrowing program for NHAI while keeping the allocation flat at ₹1.68 trillion in FY2025 BE.”

Chief Financial Officer (India), ZEISS Group, Dhaval Radia, said the Budget is a forward-looking one and “it is a Budget of continuity and trust”.

“The extension of Ayushman Bharat facilities to anganwadi and ASHA workers is a crucial step in revolutionising the accessibility and affordability of healthcare services in rural India... It is a significant step in the right direction for healthcare, and it will have a far-reaching impact on the overall well-being of the population,” he added.

Further, Mr. Radia said, “The government’s announcement to open hospitals in all districts is a significant capital expenditure commitment aimed at improving accessibility and affordability of healthcare facilities across India.”

- PTI

Biocon Ltd Chairperson Kiran Mazumdar Shaw said the finance minister has outlined a comprehensive roadmap for sustained economic growth that will enable India to achieve developed economy status by 2047.

“Her emphasis on research & innovation, biomanufacturing, robust infrastructure development, and technology-driven digital transformation augur well for India to deliver on aspirational yet people-centric, inclusive development,” she said in her post on X.

- PTI

In a post on X, Mahindra Group Chairman Anand Mahindra said Finance Minister Nirmala Sitharaman’s presentation was one of the shortest speeches and brevity is welcome and it communicates quiet confidence.

“No populistic measures were announced as has traditionally been expected in pre-election budgets. A welcome, and I hope, permanent approach! The fiscal deficit target was better than envisaged. Prudence scored a decisive victory!” he said.

With no major tax and duty changes announced, Mr. Mahindra said, “Businesses place a high value on stability and predictability and that was evident in this Budget. The really good news was the higher Tax to GDP ratio which has long been hoped for and which cements a strong foundation for fiscal flexibility and aggressive expenditure when it is needed.”

- PTI

“The finance minister’s interim budget is balanced from the point of view of adhering to fiscal prudence, boosting infrastructure growth and prioritizing focus on four key sections of the economy - the poor, women, youth and farmers,” said George Alexander Muthoot, MD, Muthoot Finance.

“We believe the finance minister’s focus on higher outlay for infrastructure will help in boosting the broader economy and in the long term will boost investment activity. The government’s support to MSMEs, women entrepreneurs and the agricultural sector aptly aligns with our aim to provide credit support to MSMEs, small business owners, farmers and women entrepreneurs thereby addressing their economic needs. 

“Finance minister’s focus on addressing housing challenges by building two crore additional homes under the PM Awas Yojana-Grameen is certainly positive for boosting the housing sector. While inflation has been a concern globally, the focus on staying on the path of fiscal prudence in the interim budget, will surely be an enabler for stable interest rate scenario in the economy and bodes well for the overall financial sector,” he further added.

“The large interest free outlay will further boost our tech start up ecosystem in emerging areas around 5G, generative AI, Agritech and health tech. The ₹1 lakh crore corpus that will be made available with 50-year interest-free (long-term financing or refinancing) to encourage the private sector to scale up R&D in Sunrise domain is a welcome move for the sector. This will push India to be on the forefront of innovation and skill enhancement,” said Peeyush Vaish, Partner and TMT Industry Leader, Deloitte India.

“The Interim Budget 2024-2025 signifies a landmark commitment to fiscal discipline, highlighted by a projected GDP of 5.1%. This stance is set to buoy the bond market and fortify banks’ mark-to-market valuations. With Capex outlays increasing by 12% to 11 lakh crore and sunset tax laws extended to March 2025, the economic landscape gleams with promise. Initiatives to address post-harvest distress in agriculture, rural development, and the Rooftop Solar scheme underscore a transformative journey towards inclusive growth and sustainability,” said Narinder Wadhwa, national president of Commodity Participants Association of India (CPAI)

“The higher than expected capex (FY24: ₹9.5 trillion vs. ₹9.3 trillion and FY25: ₹11.1 trillion vs. ₹10.2 trillion) and lower than projected fiscal deficit (FY24: 5.8% vs. 6.0% and FY25: 5.1% vs. 5.3%) suggest that the quality of expenditure is going to be healthier than what we had pencilled in both in FY2024 and FY2025. 

“Faster fiscal consolidation and a dip in borrowings will help to cool yields further over the coming year, as long as the estimates for revenue and capital receipts appear credible as the year progresses,” said Aditi Nayar, Chief Economist, Head - Research & Outreach, ICRA Ltd.

Aluminium prices marginally declined ₹1.65 to ₹203.25 per kilogram in the futures market as participants trimmed their positions on a weak trend in the spot market.

On the Multi Commodity Exchange, aluminium for delivery in February marginally fell by ₹1.65 or 0.81% to ₹203.25 per kg in 3,826 lots.

- PTI

Crude oil futures declined 0.1% to ₹6,307 per barrel as participants trimmed their positions on low demand.

On the Multi Commodity Exchange, crude oil for February delivery fell ₹6 or 0.1% to ₹6,307 per barrel with a business volume of 8,456 lots.

- PTI

Gold prices declined ₹136 to ₹62,599 per 10 grams in futures trade as speculators reduced their positions.

On the Multi Commodity Exchange, gold contracts for April delivery traded lower ₹136 or 0.22 per cent at ₹62,599 per 10 grams in a business turnover of 15,472 lots.

Silver prices on Thursday fell ₹533 to ₹71,714 per kilogram as participants reduced their bets.

On the Multi Commodity Exchange, silver contracts for March delivery declined by ₹533 or 0.74% to ₹71,714 per kg in a business turnover of 24,353 lots.

- PTI