UNION BUDGET EXCLUSIVE NATIONAL
MUMBAI, DELHI MAHARASHTRA, INDIA
By IFAB MEDIA - NEWS BUREAU - July 24, 2024 | 137 5 minutes read
The Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman, has garnered mixed reactions from various industry leaders, highlighting its pragmatic and innovative approaches while also pointing out areas needing further clarity.
Rahul Mehta, Chief Mentor, Clothing Manufacturers Association of India (CMAI)
Rahul Mehta commended the budget for its pragmatic and innovative measures aimed at encouraging employment directly. He highlighted steps such as an internship scheme, reimbursement of one month's wages for new employees, and subsidies for employees earning over a lakh of rupees. These initiatives, he noted, are excellent steps towards employment generation.
However, Mehta also pointed out that there are many open-ended areas at this point and specific suggestions would follow once more details are available. He expressed confidence that these measures would benefit the textile and apparel industry, given its labor-oriented nature. Mehta also appreciated additional measures supporting bank credits to MSMEs and easing foreign investment, which he believes will benefit the textile and apparel sectors. The import relaxation on key raw materials, trims, and accessories required for garment manufacturing was also noted as a positive move to enhance competitiveness, especially in export markets.
Kumar Rajagopalan, CEO, Retailers Association of India (RAI)
Kumar Rajagopalan praised the government's balance between populist and policy measures. He appreciated the focus on empowering the middle class and rural population through initiatives such as monetary support for farmers, higher exemption limits in personal income tax, and increased standard deductions. Rajagopalan believes these measures will lead to increased disposable income and stimulate consumption growth, thereby boosting the overall economy. The reduction of duty on gold, precious metals, and mobile phones was also seen as a significant boost to these sectors, particularly during the festive season. He also lauded the government's commitment to skilling and employment support, which ensures a future-ready workforce in the retail sector. The emphasis on MSMEs and startups, including enabling more lending and abolishing angel tax, was seen as a positive step towards realizing their potential. Tax simplification and compliance measures, along with the Employment Linked Incentive, offering reimbursement to employers for EPFO contributions for additional employees, were also welcomed.
The establishment of working women's hostels and creches in collaboration with the industry was highlighted as an essential measure for supporting women in the retail sector. The focus on developing infrastructure for shopping in urban development was seen as a significant step forward.
Sunil Jhunjhunwala, Co-Founder, TechnoSport
Sunil Jhunjhunwala expressed appreciation for the strategic vision outlined in the Union Budget. He highlighted the Employment Linked Incentive schemes as beneficial for job creation and encouraging MSMEs to formalize their workforce. The credit guarantee scheme tailored for the manufacturing sector and facilitating term loans for machinery acquisitions were seen as noteworthy initiatives to enhance access to capital and improve productivity and competitiveness in the sector. Jhunjhunwala expressed optimism about the budget's potential to catalyze inclusive growth, creating a resilient and vibrant economy that supports the MSME sector and manufacturing industry.
Nitin Mohan, Co-founder and Director, Blackberrys
Nitin Mohan welcomed the government's forward-looking budget, emphasizing key sectors crucial for economic growth. He appreciated the increased focus on infrastructure development, digital initiatives, and boosting manufacturing capabilities, aligning with Blackberrys' commitment to innovation and expansion. Mohan believes these measures will create a conducive environment for business growth and economic resilience. He expressed enthusiasm for contributing positively to India's journey towards self-reliance and global competitiveness.
In summary, while the Union Budget 2024-25 has been praised for its innovative and employment-focused measures, industry leaders also look forward to further details and clarity to fully understand the implications and benefits for their respective sectors.