Finance Minister Nirmala Sitharaman Announces 6% Duty on Gold and Silver; Income Tax Act Review Scheduled
Budget-2024 updates On Tuesday, Finance Minister Nirmala Sitharaman proposed lowering the basic customs duty to 6% for gold and silver and to 6.4% for platinum, as part of the 2024-25 Budget. She also announced the removal of the basic customs duty on ferronickel and blister copper, while increasing the duty on specified telecom equipment from 10% to 15%. This reduction in customs duty for gold, silver, and platinum addresses a long-standing request from the gems and jewellery industry. Budget-2024 updates
Additionally, the government revealed plans for a comprehensive review of the Income Tax Act to enhance clarity. The finance minister also outlined plans to introduce a standard operating procedure (SoP) for TDS defaults and to simplify the compounding of such offenses. Furthermore, two existing tax exemption regimes for charitable trusts will be consolidated into a single framework.
Union Budget Updates: Reactions from Venkatraman Narayanan, MD & CFO of Happiest Minds Technologies
The Union Budget’s focus on employment, skills development, and digital infrastructure represents a pivotal shift for the IT and ITES sectors. The allocation of ₹1.48 lakh crore for these areas, along with the PM Package featuring five key schemes, highlights the government’s dedication to creating and nurturing a skilled workforce vital for our industry. The updated skill loan scheme and the expanded internship program will offer young talent essential exposure and opportunities, establishing a robust pipeline of skilled professionals.
A significant highlight is the commitment to increasing women’s workforce participation through initiatives like working women hostels, creches, and women-focused skilling programs. These measures will empower women, enabling their meaningful contribution to the nation’s socio-economic growth. Supporting women in their careers is crucial for fostering an inclusive and thriving society.
The emphasis on digital public infrastructure and innovation by the private sector is particularly encouraging. The budget’s allocation of over ₹11 lakh crore for infrastructure development, coupled with policies to attract private investment, promises to enhance both digital and physical infrastructure, driving comprehensive economic progress.
Additionally, the creation of the Anusandhan National Research Fund and incentives for research and development will accelerate technological progress and foster a culture of innovation. The reduction in corporate tax rates further boosts the competitiveness of Indian companies globally.
Overall, the budget’s integrated approach to skills, infrastructure, and innovation lays a strong foundation for sustained growth in the IT and ITES sectors. This aligns with Happiest Minds Technologies’ vision of using technology to achieve transformative outcomes. The budget represents a crucial step toward realizing the ‘Viksit Bharat’ vision—transforming India into a developed nation by empowering youth, fostering innovation, and building world-class infrastructure.”
Union Budget Updates: Reactions from Dr. Azad Moopen, Founder & Chairman, Aster DM Healthcare
“With 66% of the Indian population under 35 and an estimated 7-8 million youth entering the job market annually, the Union Budget 2024-25 delivers a crucial boost for employment opportunities and youth upskilling, while supporting comprehensive national development. Although healthcare did not receive significant attention this time, the 12.5% increase in budget allocation to ₹89,287 crores compared to last year is encouraging.
In a period of maintaining the status quo, the government is making bold moves with initiatives from the Interim Budget 2024. These include establishing new medical colleges, promoting cervical cancer vaccines, expanding maternal and child care schemes, and introducing the innovative “You Win” immunization platform.
Moreover, the proposed reduction in customs duties on X-ray tubes and flat panel detectors for domestic X-ray machine production, along with the exemption of three cancer medicines from customs duty, provides significant relief for cancer patients nationwide. This progressive budget underscores a commitment to inclusive growth within the healthcare sector, aiming to bridge the rural-urban divide and ensure equitable access to essential services.
Budget 2024 Updates: Reaction from Anurag Mathur, CEO, Savills India
This budget sharply emphasizes urban and infrastructure development, benefiting manufacturing and housing sectors. The initiative, ‘Cities as Growth Hubs,’ stands out as a mission statement in itself. Key elements include Transit Oriented Development for 14 major cities and a framework for creative brownfield redevelopment of existing urban areas. This approach is crucial for revitalizing cities under significant pressure. Another highlight is the ₹15,000 crore allocation for Andhra Pradesh’s capital city.
Furthermore, the budget strengthens the manufacturing sector through the extension of the Credit Guarantee Scheme for MSMEs, establishment of industrial parks and corridors, and development of e-commerce export hubs. These measures will enhance economic performance and benefit the warehousing sector in real estate.
The budget also addresses both urban and rural development. It includes rental housing for industrial workers through a public-private partnership model, interest subsidies for rental housing, and Transit-Oriented Developments. Additionally, adding 3 crore housing units under PMAY in rural and urban areas is a positive step toward closing the sector gap.
The decision to increase the Standard Deduction and lower tax slabs in the new tax regime should boost disposable incomes for the middle class. This change will likely stimulate demand for affordable and mid-income housing. However, the changes in capital gains tax remain a concern.” – Anurag Mathur, CEO, Savills India.
Budget 2024 Announcements: Large-Scale Vegetable Production Clusters Near Major Consumption Centers
Finance Minister Nirmala Sitharaman announced the development of large-scale vegetable production clusters closer to major consumption centres as part of the Budget. She stated, “We will promote Farmer-Producer Organizations (FPOs), cooperatives, and start-ups for vegetable supply chains, including collection, storage, and marketing.” Experts view this as a strategic move to address persistent challenges faced by vegetable growers.
Budget 2024 Announcements: NHAI Allocation Retained at ₹1.68 Lakh Crore for FY25
Finance Minister Nirmala Sitharaman has retained the allocation for the National Highways Authority of India (NHAI) at ₹1.68 lakh crore for the 2024-25 fiscal year. This maintains the previous allocation made in the pre-election Budget.
Budget 2024 Updates: Reaction from Pradeep Shetty, President of FHRAI
The hospitality sector had high expectations from the Union Budget for 2024-25, presented by Smt. Nirmala Sitharaman. Given the government’s vision of ‘Viksit Bharat’ by 2047 and the crucial role of tourism, the budget’s lack of structural changes is disappointing. Key demands such as GST rationalization, granting infrastructure status, and policy reforms did not receive attention.
While the sector did not see major reforms, the focus on infrastructure development, employment generation, skill development, and religious tourism centres offers some optimism. Notably, the government’s proactive stance on enhancing tourism through spiritual and cultural landmarks, like the Vishnupath and Mahabodhi temples, promises significant economic and social benefits. Investments in Rajgir and Nalanda also highlight India’s commitment to its ancient heritage. Additionally, the support for tourism in Odisha emphasizes sustainable practices that preserve ecological and cultural values.
The budget’s focus on youth employment and skill development addresses the sector’s skilled workforce shortage. The Finance Minister’s commitment to making India a premier global travel destination through targeted investments and strategic initiatives is commendable. Developing iconic spiritual sites and promoting cruise and beach tourism can attract both domestic and international tourists.
Budget 2024 Announcements: Defense Budget Set at ₹6.21 Lakh Crore for 2024-25
The government has allocated ₹6,21,940 crore for the defence budget in 2024-25, up from ₹5.94 lakh crore last year. The capital outlay stands at ₹1,72,000 crore. This allocation constitutes 12.9% of the total budget for the financial year 2024-25.
Budget 2024 Updates: Customs Duty Adjustments to Boost Local Manufacturing and Value Addition
To promote domestic manufacturing and enhance local value addition, Budget 2024-25 proposes reducing or eliminating customs duties on various items, including gold and silver, mobile phones and chargers, medicines and medical equipment, critical minerals, and inputs for the leather and textiles industries.
Budget 2024 Updates: CII President Sanjiv Puri Praises Broad Investments Across Sectors
Sanjiv Puri, President of the Confederation of Indian Industry (CII), praised the budget for its extensive investments across various sectors. He highlighted the budget’s emphasis on simplifying business processes and legislative frameworks. Puri remarked, “The budget has introduced significant investments in agriculture, manufacturing, and services. It focuses on easing business operations and streamlining areas. The Finance Minister also mentioned a comprehensive review of tax legislation to simplify it.”
He continued, “This signals a strong commitment to improving the ease of doing business and implementing state-level reforms. Importantly, the budget’s next-generation reforms address factor costs, representing bold and impactful announcements.
Budget 2024 Announcements: Government’s ₹1,000-Crore VC Fund for Space Technology Receives Industry Praise
On Tuesday, Finance Minister Nirmala Sitharaman announced the establishment of a ₹1,000-crore venture capital fund aimed at advancing space technology. The industry warmly welcomed this move. Key stakeholders, including the Indian Space Association (ISpA), the heads of the Indian National Space Promotion and Authorisation Centre (IN-SPACe), and Pixxel Space, expressed enthusiasm. They believe the new provisions in Budget 2024-25 will significantly drive the sector’s growth and development.
Union Budget Updates: UP CM Adityanath Applauds ‘Public Welfare Budget,’ Mayawati Disappointed
Uttar Pradesh Chief Minister Yogi Adityanath praised the Union Budget on Tuesday, calling it a “public welfare budget” that promises to meet the hopes and aspirations of 140 crore Indians and fulfill the resolutions of ‘Amritkaal.’ In contrast, Bahujan Samaj Party (BSP) chief Mayawati labeled it a disappointment. She criticized the budget for neglecting the poor, unemployed, farmers, women, and marginalized communities.
Union Budget Announcements: Government Cuts Import Duties on Mobile Phones, Chargers, and Components
On Tuesday, the government proposed reducing import duties on mobile phones, chargers, and certain components essential for handset manufacturing in the Union Budget for the fiscal year 2024-25. Finance Minister Nirmala Sitharaman highlighted that the Indian mobile phone industry has seen a three-fold increase in domestic production and an almost 100-fold surge in exports over the past six years, signaling its maturation.
Budget 2024 Announcements: FM to Develop Solution for New Pension Scheme
Finance Minister Nirmala Sitharaman announced on Tuesday that the government will create a solution for the New Pension Scheme (NPS) to address pertinent issues and ensure fiscal responsibility. Last year, the finance ministry established a committee led by Finance Secretary T.V. Somanathan to review the pension scheme for government employees and propose necessary changes in line with the National Pension System’s framework.
Budget 2024 Announcements: FM Reduces Customs Duty on Lithium, Cobalt for Energy Transition
Finance Minister Nirmala Sitharaman revealed on Tuesday a reduction in customs duties on crucial minerals such as lithium, copper, and cobalt. These minerals are vital for nuclear energy, renewable energy, and other sectors. This move aims to boost the energy transition. In her budget speech in Lok Sabha, Sitharaman recalled the interim budget’s strategy to maintain high, resource-efficient economic growth while ensuring energy security in terms of availability, accessibility, and affordability.
Union Budget Reactions
Ashish Singhal, Co-founder of Lemonn and CoinSwitch, shared his perspective: “We welcome the Union Budget 2024-25 for its pro-development stance and positive news for startups. As both a founder and angel investor, I am excited about the abolition of Angel Tax. This change will greatly enhance India’s entrepreneurial ecosystem.
The budget’s focus on digital public infrastructure and the digital economy is set to benefit tech startups like ours, which develop apps for a large Indian population. However, we face challenges with the increase in short-term capital gains tax from 15% to 20%, the rise in long-term capital gains tax from 10% to 12.5%, and the hike in Securities Transaction Tax (STT) on Futures and Options (F&O). These changes have led to a negative market reaction.
Regarding cryptocurrency, we had hoped for a reduction in taxation to bring it in line with other asset classes. Unfortunately, this issue remains unaddressed, missing an opportunity to support startups and investors in the crypto space. We are currently analyzing the finer details of the budget to grasp its broader implications.
Union Budget Reactions
Colin Shah, MD, Kama Jewelry:
The Finance Minister’s decision to lower customs duties on gold and silver to 6%, and platinum to 6.4%, represents a significant and welcomed change for the industry. This long-awaited announcement arrives at a crucial time when the industry faces numerous challenges. This reduction will help combat smuggling, reduce costs for consumers, and stimulate domestic demand. Additionally, it will enhance Free Trade Agreements (FTAs), opening doors for increased exports to less explored international markets.
The introduction of the Credit Guarantee Scheme for MSMEs will also empower these businesses by providing collateral-free loans. Establishing E-Commerce and MSME hubs through Public-Private Partnerships (PPP) will streamline trade and export services. Furthermore, the Finance Minister’s proposal to eliminate the 2% equalization levy will ease the burden on digital companies and boost online purchasing. Finally, accepting the Safe Harbour Rule for the sale of rough diamonds in Special Notified Zones (SNZs) will bring greater transparency to trade in these zones.
Chirag Sharma, CEO, Drone Destination:
“We appreciate the budget’s emphasis on digital agriculture, job creation, skill development, and increasing women’s participation in the workforce. At Drone Destination, we lead the Namo Drone Didi program, training and empowering women drone entrepreneurs from rural self-help groups. We are eager to apply our extensive drone mapping expertise from initiatives like SVAMITVA to enhance digital public infrastructure in agriculture. Additionally, our recent Memorandum of Understanding (MoU) with NSIC to set up drone training centers nationwide aims to develop a skilled, future-ready workforce to meet the growing demands of the Indian drone ecosystem.”
Ajai Rana, Business Head, Asia Pacific – RiceTec:
The Union Government’s commitment to transforming agricultural research, focusing on boosting productivity and developing climate-resilient crops, is commendable. Introducing 109 climate-resistant crops across 32 categories will drive further research and advancements in climate technology. Wheat and rice, crucial staples in Indian agriculture, cover approximately 108 million and 74 million acres, respectively. Adopting next-generation technologies will enhance productivity with fewer resources, easing the pressure on farmland and the environment. India’s agriculture sector significantly contributes to the economy, and integrating new technologies and quality inputs will significantly foster sector growth.”
Budget 2024 Updates:
Higher allocations for rural development, agriculture, and employment schemes are expected to positively impact both rural and urban consumption. Additionally, constructing one crore new homes under PMAY Urban 2.0, with an investment of ₹10 lakh crore, will drive the purchase of consumer durables.
Shishir Baijal, Chairman and Managing Director, Knight Frank India:
The government reaffirms its commitment to infrastructure and social development. The initial steps towards addressing rental housing needs are a positive move.
Amit Patjoshi, CEO, Palladium India:
The Union Budget 2024 is a game-changer for agriculture! The substantial ₹2 lakh crore package promises to revolutionize the sector. The comprehensive focus on productivity and resilience tackles many of the long-standing issues farmers face. By introducing one crore farmers to natural farming practices, the budget will promote environmental sustainability, lower input costs, and boost farmer profitability. Support for certification and branding will help farmers access better markets and achieve higher prices.
The strategic focus on self-sufficiency in pulses and oilseeds will reduce India’s reliance on imports, enhancing food security and price stability. Additionally, the establishment of 10,000 Bio Resource Centres will foster innovation, offering farmers the latest technology, best practices, and support services. These centres will be pivotal in advancing sustainable agricultural practices and improving sector efficiency. Overall, this budget marks a significant step toward a more resilient, productive, and sustainable agricultural sector in India.
Union Budget Reactions: Education Sector Boosted by Skill-Building Initiatives
Raghav Gupta, Managing Director, APAC and India, Coursera:
The Union Budget 2024-2025 demonstrates a strong commitment to enhancing education, employment, and skill-building. This aligns seamlessly with the Government’s vision of a Viksit Bharat by 2047. Notably, the budget’s focus on skilling 20 lakh youth over the next five years through centrally sponsored schemes, upgrading 1,000 training institutes, and offering skilling loans represents significant progress.
I am particularly enthusiastic about the plan to provide internships to 1 crore youth with 500 leading companies. This initiative will bridge the gap between theoretical knowledge and practical experience. The collaboration across sectors can address the growing skills gap and social inequities, facilitating a smooth transition for students into high-demand roles. Businesses will benefit from a diverse and skilled talent pool, leading to reduced recruitment time and costs.
In today’s digital age, where talent can emerge from anywhere, expanding access to digital skills will be transformative. We are excited to support these initiatives, which will open doors to equal opportunities for millions of Indians, harness our demographic dividend, and accelerate our journey toward a $5 trillion economy.”
Rajiv Nath, AiMeD Forum Coordinator:
The Union Budget 2024 provides a boost to overall economic growth and acknowledges the medical devices sector by reducing duties on X-ray equipment components. While we appreciate this move, the industry hoped for more comprehensive measures to ensure quality and affordable healthcare.”
Tejas Gutka, Fund Manager, Tata Asset Management:
Although we await more details, the initial announcements appear favorable for construction companies. Housing finance firms, especially those focused on affordable housing, will benefit from the PM Awas Yojana. However, past disbursements under similar schemes have represented a small fraction of these companies’ loan books. Overall, these announcements seem to offer marginal benefits to the sector.”
Colin Shah, MD, Kama Jewelry:
The Finance Minister’s decision to reduce customs duties on gold and silver to 6%, and platinum to 6.4%, is a welcome change. This long-awaited adjustment comes at a time when the industry faces numerous challenges. Lower duties will help curb smuggling, reduce consumer costs, and stimulate domestic demand.
Furthermore, it will enhance Free Trade Agreements (FTAs), creating opportunities to expand exports to underdeveloped overseas markets. The introduction of the Credit Guarantee Scheme for MSMEs will also empower businesses by providing collateral-free loans.
Establishing E-Commerce and MSME hubs through Public-Private Partnerships (PPP) will streamline trade and export services. Additionally, eliminating the 2% equalization levy will relieve digital companies and boost online purchasing. Lastly, adopting the Safe Harbour Rule for selling rough diamonds in Special Notified Zones (SNZs) will promote transparency in trade activities within these zones.”
Ashish Singhal, Co-founder, Lemonn and CoinSwitch:
“We applaud the Union Budget 2024-25 for supporting startups. The abolition of the Angel Tax is particularly exciting, as it will greatly strengthen India’s entrepreneurial ecosystem. The focus on digital infrastructure and economic digitalization will benefit tech startups like ours, which develop apps for a broad Indian audience.
However, the securities markets face challenges with the increase in short-term capital gains tax from 15% to 20%, the rise in long-term capital gains tax from 10% to 12.5%, and the hike in STT on F&O. These changes have elicited a negative market reaction. We also hoped for reduced taxation on crypto to align it with other asset classes, but this issue remains unaddressed. This represents a missed opportunity to support startups and investors in the crypto space. We are still analyzing the budget’s details to understand its full implications.”
Aasif Malbari, CFO, Godrej Consumer Products Ltd (GCPL):
The Union Budget 2024 promotes comprehensive growth at the grassroots level. Investments in job creation, skill development, and MSME advancement will drive inclusive economic growth. The budget’s emphasis on agricultural schemes and rural development will likely boost consumption, especially in rural and non-metro areas. This aligns with the vision of India@100 by allocating resources for rural upliftment, urban development, and fostering a resilient and inclusive economy.
