Customs Duty Adjustments
- Gold, Silver, and Platinum: The basic customs duty on gold and silver has been reduced to 6%, and on platinum to 6.4%. This move is expected to benefit the gems and jewellery industry, which has been advocating for lower duties to enhance competitiveness.
- Ferronickel and Blister Copper: The basic customs duty on these materials has been removed, which should help reduce costs for related industries.
- Telecom Equipment: The duty on specified telecom equipment has been increased from 10% to 15%, potentially encouraging domestic production.
- Medical Equipment: The proposed reduction in the basic customs duty on x-ray tubes and flat panel detectors for use in medical x-ray machines is commendable. This aligns with domestic capacity addition, supporting local manufacturing and ensuring advanced medical technology is available to improve diagnostic accuracy and treatment outcomes for cancer patients.
Income Tax Act Review
The government plans to undertake a comprehensive review of the Income Tax Act, aiming to simplify and rationalize the tax code, making it easier for taxpayers to understand and comply with.
Agriculture Sector Boost
Dr. KC Ravi, Chief Sustainability Officer of Syngenta India Pvt Ltd and Chairman of Crop Life India, praised the budget for its focus on agriculture. Key measures include:
- High-Yielding Crops: Release of 109 high-yielding and climate-resilient varieties of 32 field and horticultural crops.
- Digital Crop Survey: Implementation in 400 districts to enhance digital public infrastructure for agriculture.
- Oil Seeds Strategy: Efforts to promote self-reliance in oil seed production to conserve foreign exchange and boost domestic output.
Infrastructure Development
The budget has earmarked ₹15,000 crore for the development of Amaravati, the new capital of Andhra Pradesh, fulfilling promises made in the Andhra Pradesh State Reorganisation Act of 2014.
Agricultural Modernisation
A P Sinha, Director of Farlense Group, appreciated several initiatives:
- Budget Allocation: Increased to ₹1.52 lakh crore, up 21.6% from the previous year.
- Digital Public Infrastructure: Enhanced linkage to farmers to improve credit access.
- Agri-Infrastructure Fund: Raised to ₹30,000 crore for improving rural infrastructure.
Auto Retail Sector Impact
Manish Raj Singhania, President of the Federation of Automobile Dealers Associations (FADA), noted:
- Rural Boost: Enhanced Minimum Support Prices (MSPs) and the launch of Phase IV of PMGSY to improve rural incomes and connectivity, potentially increasing auto sales.
- Employment and Skilling: Focus on job creation and entrepreneurship through schemes like the Employment Linked Incentive and enhanced Mudra loans.
Healthcare Improvements
D. S. Negi, CEO of Rajiv Gandhi Cancer Institute & Research Centre, welcomed the exemption of three additional cancer medicines from customs duties, making essential treatments more affordable.
Startup Ecosystem Enhancement
Arjun Prasad, Co-Founder and Chief Strategy Officer of QX Lab AI, emphasized the importance of abolishing the angel tax for all classes of investment:
- Startup Growth: This move will boost the entrepreneurial spirit and drive innovation, particularly in the AI sector.
- Skill Development: Upgrading 1,000 industry training institutes will bridge the skill gap and prepare youth for future jobs, with a focus on women-led development and AI-driven upskilling for women.
- Research and Innovation: Initiatives like the Jan Vishwas Bill and the Anusandhan National Research Fund will propel research and ease of doing business.
Space Sector Investment
Awais Ahmed, Founder and CEO of Pixxel, highlighted the budget’s allocation of ₹1,000 crore for a venture capital fund in the space sector:
- Space Technology Advancement: This fund will support innovative startups and companies, aligning with the government’s vision to expand the space economy fivefold in the next decade.
Economic Boost and Job Creation
Ninad Karpe, founder and partner of 100X.VC, praised the abolition of the angel tax:
- Startup Ecosystem: This will encourage investment in startups, boosting economic activity and job creation.
- Balanced Budget: Focused on employment, skilling, and infrastructure.
Taxation and Youth Focus
Vikram Chachra, Founding Partner of 8i Ventures, noted the positive impact of the angel tax abolition on the Indian startup ecosystem:
- Investment Landscape: This move will attract both domestic and foreign investors, fostering a vibrant startup environment.
Energy Transition Policies
The budget proposes policy documents for energy transition pathways and decarbonizing hard-to-abate sectors, focusing on leveraging technologies in nuclear energy and thermal power generation, and developing energy storage systems.
Climate and Green Investments
Sandiip Bhammer, Founder and Co-Managing Partner of Green Frontier Capital, highlighted the budget’s initiatives on climate and green investments:
- Climate Taxonomy: Creating a framework for green investments to attract more capital to climate-friendly projects, ensuring transparency and investor confidence.
Senior Care and Women’s Workforce Participation
Saumyajit Roy, CEO and Co-Founder of Emoha, emphasized the budget’s focus on boosting women’s workforce participation through hostels, creches, and skilling programs:
- Senior Care Integration: Proposing senior care as an employee benefit to support women balancing childcare and elder care responsibilities.
Critical Minerals Mission
Rishabh Jain, Senior Programme Lead at CEEW, lauded the budget’s Critical Mineral Mission:
- Supply Chain Development: Encouraging private and government companies to develop capabilities in the critical minerals supply chain, supporting domestic manufacturing for clean energy sectors.
The Union Budget 2024-25 has introduced a variety of measures aimed at driving economic growth, modernizing agriculture, and improving healthcare access. The focus on simplifying tax regulations, enhancing infrastructure, and promoting sustainable practices reflects the government’s commitment to balanced and inclusive development. Effective implementation and coordination between central and state governments will be crucial to realizing the full benefits of these initiatives.