In its third straight term, the PM Narendra Modi’s government has clear objectives: a roadmap for fiscal consolidation and a framework for medium-term economic interventions, focusing on employment, skilling, MSMEs, and the middle class. Finance Minister Nirmala Sitharaman announced a host of steps for the economy, companies, markets and taxpayers in the Budget 2024. The budget, presented on July 23, laid out nine priority areas with an eye on the future. The nine priority list focuses on a comprehensive approach to fostering economic growth, enhancing productivity, and ensuring resilience across various sectors. The focus spans multiple priorities, including advancing agricultural productivity through research and natural farming practices, boosting employment with innovative schemes, and fostering inclusive human resource development.

Infrastructure investments are set to surge with substantial allocations for urban development, rural connectivity, and tourism enhancement. Energy security is prioritised with initiatives aimed at sustainable energy transitions and technological advancements in power generation.

The government has set an ambitious infrastructure investment plan with a capital expenditure allocation of Rs 11,11,111 crore, representing 3.4 per cent of GDP. States will receive Rs 1.5 lakh crore in long-term interest-free loans to bolster their infrastructure projects. Private sector involvement will be encouraged through viability gap funding and a new market-based financing framework.

The Pradhan Mantri Gram Sadak Yojana (PMGSY) Phase IV will enhance rural connectivity by targeting 25,000 habitations. Flood and irrigation issues will be addressed with significant financial support for projects in Bihar, Assam, Himachal Pradesh, Uttarakhand, and Sikkim.

The government will launch the Anusandhan National Research Fund to support basic research and prototype development, with a Rs 1 lakh crore financing pool aimed at enhancing private sector-driven research and innovation. In the space sector, the economy is projected to expand fivefold over the next decade. To support this growth, a Rs 1,000 crore venture capital fund will be established, fostering further development and commercialisation in the space industry.

The government will develop an Economic Policy Framework to guide reforms focused on enhancing employment opportunities and sustaining high growth. This framework will improve productivity across land, labour, capital, and entrepreneurship, leveraging technology and collaboration between the Centre and states. Land-related reforms will include assigning Unique Land Parcel Identification Numbers (ULPIN) and digitising cadastral maps for rural areas, while urban areas will see digitisation of land records with GIS mapping. Labour-related reforms will enhance employment services through integrated platforms and revamp compliance portals.

Commitment to fiscal consolidation
The budget’s most commendable achievement is its firm commitment to fiscal consolidation. The Finance Minister has set the fiscal deficit target for 2024-25 at 4.9 per cent of GDP, moving closer to the goal of 4.5 per cent for the following fiscal year. This focus on fiscal discipline is crucial for maintaining long-term economic stability and investor confidence.

Balancing fiscal consolidation with the need to increase expenditures is another critical aspect of the budget. Over the past three years, increased fiscal space from buoyant tax revenues has allowed for higher allocations to various spending programmes. This budget continues that trend, using additional resources for both fiscal consolidation and increased spending.

Emphasis on infrastructure
The budget places a strong emphasis on agriculture, recognising its pivotal role in driving economic growth and development. Provisions for releasing climate-resilient crop varieties and establishing bio-research centres highlight the government’s commitment to long-term sustainability in agriculture. These initiatives are crucial for enhancing productivity and resilience in the agricultural sector, ensuring food security, and promoting sustainable farming practices.

In infrastructure, the budget directs most of the increased expenditure towards asset creation, such as housing and roads. By continuing its focus on capital expenditure, the budget aims to stimulate economic growth, create jobs, and build a solid foundation for future development.

Job creation in focus
The budget introduces three new employment-linked incentive schemes as part of the Prime Minister’s package, aligning with enrolment in the Employee Provident Fund Organisation and focusing on first-time employees. Additionally, students who have not yet benefited from any government schemes will receive support loans of up to Rs 10 lakh for education in domestic institutions, with e-vouchers for interest subvention provided to one lakh students each year.

Several schemes for Bihar, under the “Purvodaya” plan, aim at all-round development, including expressways, power projects, new airports, medical colleges, and sports infrastructure. Similarly, Andhra Pradesh will receive support for industrial development and basic infrastructure enhancements under the AP Reorganisation Act.

The budget places special attention on MSMEs and labour-intensive manufacturing, introducing a new assessment model for MSME credit by public sector banks based on digital footprints rather than only on assets and turnover criteria. The credit guarantee scheme envisaging pooling of credit risks of MSMEs is a welcome step.

Conclusion
The first budget of the NDA government’s third term strikes a balance between fiscal consolidation and necessary expenditures. The commitment to reducing the fiscal deficit and managing debt levels is commendable and essential for long-term economic health. At the same time, the focus on agriculture, infrastructure, and tax reforms addresses key challenges facing the economy and lays the groundwork for sustainable growth.

BUDGET REACTIONS:
1. “With its focus on farmers, this forward-thinking budget is set to enhance the livelihoods by promoting sustainable practices, boosting productivity, and developing digital and financial infrastructure. By introducing 10 million farmers to natural farming techniques and emphasising on agricultural research will help develop climate resilience for a more secure future. Furthermore, the three-year plan and framework for digital infrastructure will benefit farmers with access to vital information, such as weather forecasts, crop advisory services, and market prices. This will enable informed decision-making, better crop management, and increased financial resources for investing in advanced farm equipment and precision technology, driving growth, productivity, and crop quality.”
- Narinder Mittal, Country Manager and MD, CNH India & SAARC

2. “The Budget’s substantial allocation of over Rs 11.11 lakh crore, nearly 3.4 per cent of India’s GDP, for infrastructure is a clear catalyst for accelerated growth. This, coupled with the significant push of Rs 2.2 lakh crore towards affordable housing under PMAY-Urban, creates a robust pipeline for the construction and allied sectors. We anticipate increased business opportunities and a positive impact on employment generation. Moreover, the budget's focus on the MSME sector, with a proposed allocation of over Rs 22,000 crore, is a welcome move. This will foster innovation, job creation, and strengthen the economy. The budget’s overall direction aligns with the government’s vision of a Viksit Bharat by 2047, providing a strong foundation for sustainable and inclusive development.”
- Sorab Agarwal, ED, Action Construction Equipment

3. The Budget announced very critically focusses on employment, skilling, manufacturing, and the upliftment of the Middle class through a variety of initiatives. Employment and skilling opportunities will be created through financial assistance where over 20 lakh youth will be skilled over a five-year period.

Additionally, to modernise the Industrial Training Institutes, 1,000 such institutes will be upgraded in a hub and spoke arrangement. This will certainly create the necessary skills for youth for gainful employment in industries. With a focus on manufacturing, particularly MSMEs, the Minister has extended credit support and has also announced 12 new Industrial parks which will create a manufacturing conducive ecosystem.

As always Infrastructure has been a strong area for subsequent budgets which have been announced over the years. This time as well, a provision of Rs 11 lakh crore, which is 3.4 per cent of the GDP, has been positive for infrastructure development which has a multiplier effect on the economy.

Critically, the phase 4 of PMGSY, a programme that focuses only on rural roads has also been announced, which will connect over 25,000 rural habitations. This will create employment and reduce the farm to market distance sprucing up rural economy.

The PM Awas Yojna, 2.0 also has been announced, which will improve the lives of over one crore people. We feel that with these initiatives, the budget addresses the expectations of the common man and the middle class towards efforts to improve the quality of their lives.

This continued focus on Infrastructure development also creates robust opportunities for us as the Construction Equipment sector, and we look forward to a strong growth ahead in the journey towards becoming the second largest in the world.
- Deepak Shetty, CEO and MD, JCB India

4. “We welcome the budget for providing a significant impetus to the construction equipment sector. The vision of Viksit Bharat by 2047 highlights the importance of allocating substantial resources for infrastructure development to enhance India’s growth trajectory. The proposed increase in capital expenditure of 11.1 per cent to Rs. 11.11 lakh crore for FY2025 will significantly support economic growth and employment. The supportive regulatory policies align with the PM’s vision of taking India to the third largest global economy by 2031.

Infrastructure and manufacturing are key priorities in this budget, critical for driving economic growth and job creation. As a key player in India's construction and infrastructure ecosystem, Volvo CE is committed to supporting these initiatives through innovative solutions and partnerships that drive efficiency and sustainability. We look forward to collaborating with the government and our various stakeholders to advance the infrastructure capabilities of the country and contribute to India's growth story.

It is heartening to see the emphasis being given in the Budget to road connectivity across the country, as this is vital for overall economic development. The provision of Rs. 2.66 lakh crore for rural development, including rural infrastructure, will go a long way in creating jobs and generating the growth of the rural economy. The focus on industrial corridors and energy infrastructure aligns with Volvo CE's vision of promoting sustainable development and technological advancement.”
- Dimitrov Krishnan, MD, Volvo CE India

5. “We welcome the government’s consistent approach towards fiscal consolidation, supporting capex in infrastructure by reconfirming the allocation of Rs 11.11 lakh crore in the Budget as also additional allocations towards improving urban and rural infrastructure. We also welcome the government’s focus on employment generation, skilling, woman empowerment, MSMEs and climate change mitigation as well as their encouragement to the States to carry out land and labour reforms and improve ease of doing business further. We believe this Budget paves the way for the next generation of reforms which we are confident will lead India to its deserved place of being Viksit Bharat.”
- Sunil Mathur, MD and CEO, Siemens

6. “The announcement of Rs 2.66 lakh crore for rural development, including rural infrastructure, in the budget is a significant investment that aligns with our mission to support and enhance India’s rural infrastructure. Starting from the introduction of the Jan Samarth-based Kisan Credit Card, and the support for Andhra Pradesh, Bihar, and other key regions, the government’s holistic approach to infrastructure, skilling, and rural development are vital initiatives.

Additionally, the focus on employment and skills with an allocation of Rs 2 lakh crore is encouraging. The various schemes for employment-linked incentives and skilling programmes will create a skilled workforce ready to meet the demands of modern infrastructure projects. This budget reflects a balanced approach to developing infrastructure while empowering the workforce, and we are excited to be a part of this transformative journey. Initiatives such as providing one month’s wage for first-time employees, creating job opportunities for 30 lakh youths in manufacturing, and supporting skilling programmes for 20 lakh individuals are a great way of boosting productivity, enhancing infrastructure and employment opportunities across the country.”
- Shalabh Chaturvedi, MD, CASE Construction Equipment – India & SAARC region

7. “The budget heralds a transformative period for India’s infrastructure sector with an allocation of Rs 11.11 lakh crore for capital expenditure. This significant investment underscores the government’s commitment to enhancing infrastructure, presenting substantial opportunities for construction equipment companies like Ammann India to contribute to and benefit from this growth. Additionally, the introduction of a new scheme facilitating term loans for MSMEs to purchase machinery and equipment without collateral, supported by Rs 100 crore guarantee funds, is poised to directly benefit our customers within the MSME sector, fostering growth and modernisation in manufacturing.

The government’s focus on employment and skilling, backed by Rs 2 lakh crore investment, aims to develop a highly skilled workforce, crucial for the construction industry. This includes employment-linked incentives, support for new hires, and extensive skilling initiatives, ensuring a robust pipeline of skilled labour to meet industry demands.

The budget’s emphasis on technological support packages for MSMEs and the expansion of SIDBI branches to serve MSME clusters will significantly enhance the manufacturing ecosystem. These measures are anticipated to drive innovation, productivity, and competitiveness in the construction sector, aligning with Ammann India’s strategic goals and operational aspirations.”
- Dheeraj Panda, MD, Ammann India

8. “The budget places a strong emphasis on rural development, reflecting our commitment to improving the lives of India’s rural population. With the launch of Phase IV of Pradhan Mantri Gram Sadak Yojana, it is good to see provisions made for all-weather connectivity to 25,000 rural habitations, ensuring better access and integration for the rural communities. The Pradhan Mantri Janjatiya Unnat Gram Abhiyan aims to uplift 63,000 villages, directly benefitting five crore tribal people by enhancing their socio-economic conditions. These initiatives are integral for inclusive growth and more equitable development across India's vast rural landscape.”
- Puneet Vidyarthi, Head of Marketing & BD – India & SAARC, Case Construction Equipment & President, Rural Marketing Association of India

9. “The budget looks to be the government’s continued and focused commitment and support with robust central investments for infrastructure sector, facilitating states investments for the sector and providing viable gap funding for promoting private investments in the sector for overall strengthening of the nation’s infrastructure. Overall, the budget is going to be a big booster to facilitate India's economic growth; roads and highways sector, being the prominent infra sector is expected to get much needed impetus through adequate funds allocations.”
- Virendra D Mhaiskar, CMD, IRB Infrastructure Developers

10. “I commend the Minister on the budget, which prioritises the steel industry’s growth with increased allocations, enhancing its competitiveness and driving economic growth. The removal of the 2.5 per cent basic customs duty on the import of ferronickel for stainless steel and speciality alloys is a significant and positive step. Increased spending on infrastructure, affordable housing, and internship opportunities fosters innovation and entrepreneurship. The abolition of the Angel Tax and the increased Mudra loan limit to Rs 20 lakh will support small businesses. While the rise in LTCG could have been avoided, the budget demonstrates a commitment to building a resilient steel sector and driving economic growth. Overall, the budget is a forward-looking and growth-oriented initiative that will benefit India’s economy.”
- Anand Kr. Maloo, President, F&A

11. “The budget’s emphasis on infrastructure development marks a significant leap toward our nation’s future. The substantial allocation for capital expenditure and long-term interest-free loans to states reflects a forward-thinking strategy aimed at stimulating economic growth and innovation. Encouraging private sector participation through viability gap funding and market-based financing frameworks will foster a dynamic environment for infrastructure advancements. These initiatives are poised to significantly improve connectivity, boost productivity, and create numerous job opportunities across various sectors. By prioritising sustainable development and leveraging both public and private investments, this budget positions India on a robust path to becoming a global leader in infrastructure excellence.

Minister’s focus on PPP represents a pivotal shift for the infrastructure sector. The efforts to simplify FDI norms aim to attract and retain private investment in India. By emphasising and encouraging FDI, the government is creating a favourable environment for investors. Collaborating between the government and private entities allows us to harness the strengths of both sectors to improve project execution, drive innovation, and enhance efficiency. This strategy not only accelerates development but also ensures that infrastructure growth remains sustainable and inclusive. The substantial budget allocation for infrastructure highlights the government’s dedication to laying a strong foundation for India’s future, and Patel Engineering is eager to play a role in this national initiative.”
- Kavita Shirvaikar, Acting MD, Patel Engineering

12. “The budget demonstrates a clear vision for Viksit Bharat with its strong emphasis on infrastructure development and digital transformation. The decision to increase duty on PCBAs for specific telecom equipment by 10 to 15 per cent reflects a commitment to bolstering ‘Make in India’ in this crucial sector.

We are particularly encouraged by the focus on enhancing Digital Public Infrastructure (DPI), which will undoubtedly play a pivotal role in accelerating India's economic growth. The prioritisation of energy security and infrastructure development aligns perfectly with the telecom sector's needs for robust and sustainable expansion.

The budget’s provision for skilling 4.1 crore youth is a commendable step that will significantly enhance our nation's capabilities and prepare our workforce for the digital future. Furthermore, the emphasis on green energy and government initiatives in solar energy will create a robust infrastructure for a greener India, reducing our dependence on other expensive resources. This aligns well with the telecom sector's growing focus on sustainable practices and energy-efficient technologies.”
- Tilak Raj Dua, Director General, Digital Infrastructure Providers Association

13. “Ramky Infrastructure commends the government’s vision for propelling overall economic growth. The Viksit Bharat mission’s nine priorities unveil a wealth of opportunities for both public and private entities through enabling policies and fiscal support.

One of the most important aspects of the infrastructure industry is the government’s unwavering commitment to skill development and the substantial capital expenditure outlay of Rs 11.11 lakh crore designated for infrastructure developments. The sanctioning of 12 “plug and play” industrial parks, fully equipped with necessary resources promises to significantly enhance the nation's manufacturing capabilities and generate a surge in employment opportunities. The roadmap for developing similar parks in 100 cities indicates a decentralised approach to industrial development, one that actively incorporates private-sector partnerships.

Furthermore, we applaud schemes like PM Awas Yojana, which addresses housing needs in both urban and rural areas. The government's commendable allocation of Rs 2.66 lakh crore for rural development will facilitate the provision of essential infrastructure. In conclusion, Ramky Infrastructure firmly believes the budget paves the way for inclusive and sustainable growth across the nation”.
- YR Nagaraja, MD, Ramky Infrastructure

14. “We applaud the Ministry and the government’s enduring dedication to economic progress. Their decision to retain the Rs 11.11 lakh crore capex outlay for infrastructure over five years, alongside fiscal support, is warmly welcomed. This commitment, along with attracting private investment through viability gap funding and a market-driven financing framework, promises a bright future for infrastructure. Furthermore, the allocation of 3.4 per cent of GDP to infrastructure, along with Rs 1.5 lakh crore in long-term, interest-free loans to states, empowers the industry to innovate and deliver cutting-edge projects that drive economic growth and job creation. The significant aspect is the emphasis on plug-and-play industrial parks, water, sewage and municipal solid waste treatment, paving way for SDG fulfillment and circular economy.”
- NS Rao, Group CFO, Ramky Group

15. “The budget announcement marks a pivotal moment for India with funding focus on nine priorities including productivity and resilience in agriculture, employment and skilling, human resource development and social justice, manufacturing and services, urban development, energy security, infrastructure, innovation, R&D and next generation reforms generating ample opportunities for all.

This budget paves way for a significant growth towards a Viksit Bharat. With one lakh crore funds being allocated for research and innovation, it will help in providing a substantial sustainable growth opportunity for our country by 2047. The policy highlighting on the use of appropriate energy transition will help in balancing the imperatives of employment leading to a more organized growth and environmental sustainability.

The budget’s emphasis on providing skilling programmes will empower the youth in obtaining quality employment opportunities. We appreciate government’s move to reduce the corporate tax for foreign companies from 40 per cent to 35 per cent. This endeavour will improve the overall business environment, making it conducive to foreign direct investments into the country which will create more employment opportunities for the youth and stimulate economic growth. The Angel Tax abolition would also super charge the startup ecosystem.”
- Meenu Singhal, Regional MD, Socomec Innovative Power Solutions

16.
“I would like to congratulate the Government for presenting a visionary Budget that focuses on sustainable and inclusive economic growth. I particularly welcome several announcements that reflect the Government’s continued support for the renewable energy sector. The impetus on PM Surya Ghar Muft Bijli Yojana will help fast track nationwide adoption of roof top solar, helping expand our overall RE capacity. The proposed investment in pumped storage programmes is a much-needed step that will ensure smoother integration of growing renewable energy, leading to more reliable supply of green power and grid stability. The focus on transitioning hard to abate industries to greener alternatives will catalyse the C&I sector’s journey towards net zero. Introduction taxonomy for climate finance will help attract much needed capital for boosting climate resilience. Finally, the expanded duty exemptions will also help propel the RE sector ahead. This is a positive budget for the sector that should help continue the momentum of India’s energy transition and Hero Future Energies remains committed to partnering with the Government in enabling this mission.”
- Srivatsan Iyer, Global CEO, Hero Future Energies

17. “The government’s transformative and futuristic initiatives are set to accelerate the growth of the nation's infrastructure landscape while enabling technological advancement and ensuring a viable and sustainable energy transition. The Budget’s focus on green growth with a Rs 35,000 crore investment, the adoption of nuclear, clean energy with Bharat Small Reactor (BSR) and Bharat Small Modular Reactor (BSMR), and private participation in the nuclear energy arena, incentivising the adoption of higher efficiency Advanced Ultra Super Critical (AUSC) thermal plants, and focus on pumped storage projects for renewable energy integration, alongside a national critical metals and minerals policy, and the promotion of domestic solar cell and module manufacturing, create a comprehensive roadmap for the energy transition in hard-to-abate sectors.

On the infrastructure front, the enhanced focus on water and waste management in 100 large cities, along with an investment of Rs 10 lakh crore for the construction of 1 crore houses under Pradhan Mantri Awas Yojana-Urban 2.0, underscores the strategic approach towards transformative growth.

Tata Consulting Engineers has been a key player and thought leadership partner in these specific initiatives with the Government and leading industry players. Our efforts have been fully aligned and committed to these national priorities. Keeping the Vikasit Bharat vision clear, we see this as a progressive roadmap towards building a sustainable, technologically advanced, and resilient India.”
- Amit Sharma, MD and CEO, Tata Consulting Engineers