New Delhi, July 23, 2024.
Ms. Shanti Ekambaram, Deputy MD, Kotak Mahindra Bank, Said ‘’The finance minister prioritized nine key areas, aiming to benefit the poor, women, youth, and farmers. These areas include agriculture, employment, skilling, and manufacturing. The infrastructure outlay remained at 11 lakh crores, with a focus on housing. The fiscal deficit target of 4.9% is commendable, and the emphasis on the fiscal consolidation path is positive. However, the surprise twist was the Capital Gains tax: short-term capital gains at 20% and long-term gains at 12.5%. While this may impact sentiment in the short term, the overall focus on employment, development, and infrastructure promises long-term benefits. In summary, it’s a sensible budget that addresses key segments, sectors, and states while maintaining fiscal discipline.”
Muthoot Finance MD George Alexander Muthoot, The Union Budget 2024 focuses on the comprehensive development of the economy by adhering to fiscal prudence, boosting infrastructure growth, and through continued emphasis on four major pillars of society — the poor, women, youth and the farmers. The massive impetus on capex expenditure outlay of ₹11.11 lakh crore is a testimony to the government’s focus on boosting investment activity and further strengthening fiscal health of the economy. As the largest gold loan NBFC in India, we are particularly encouraged by the government’s proposals give priority to MSMEs, women entrepreneurs and the agricultural sector. The credit guarantee scheme is going to significantly enhance credit access for MSMEs. This scheme aligns perfectly with our commitment to supporting small businesses and driving entrepreneurship, particularly among women. Further, the FM has also focused on boosting affordable housing under PM Awas Yojana offering assistance of 2.2 lakh crore rupees in the next five years. This will help in resolving various housing challenges for various lower and middle class families.
We are also glad to witness the slew of initiatives undertaken by the FM to boost the job creation and employability for the young talent and women of India awaiting to offer valuable contribution in India Inc.’s growth. As one of the legacy employers in the NBFC space that strongly believes in the capabilities of youth, we are in alignment with the new internship programme and initiatives to boost women participation in the workforce. The budget also strikes the right balance between promoting growth and ensuring fiscal responsibility, while targeting an inflation rate of 4% will create a stable economic environment for the financial services sector. We look forward to playing our part in India’s growth story by providing last-mile credit access to underbanked sectors of the society.
“The current Budget has extended the broad themes from the interim Budget focusing on infrastructure, fiscal consolidation, jobs, MSME, rural and agricultural support.
While some near term disappointment on lack of dated borrowing cuts have weighed in bond market sentiments currently, we expect the bond markets to maintain their euphoria in the months ahead as demand supply dynamics remains very comfortable.”Ms. Upasna Bhardwaj, Chief Economist, Kotak Mahindra Bank.