Veteran investors repose faith on a growth-oriented Budget that will boost investment & consumption

Veteran market investors are reposing faith on a growth-oriented agenda that the government is likely to follow, both in the Union Budget and outside it, which will boost investment, reduce fiscal deficit and encourage consumption.

Nilesh Shah, Managing Director, Kotak Mahindra AMC: “This budget has achieved the trinity of impossible. Fiscal Prudence, Investment and Growth momentum. Fiscal Prudence of 4.9 % for FY 24 will pave the way for Rating upgrade. Support to employment generation will boost growth. Infrastructure investment at 3.4 % of GDP is elevated yet not crowding out others.”

Saurabh Arora, Founder & CEO, University Living: “The 2024 budget lays a foundation for a skilled, empowered, and future-ready India. University Living congratulates the Finance Minister's 2024 budget and strong commitment to education, employment, and skilling, reflecting a strategic vision for India's future. The comprehensive package of five schemes reiterates government's dedication to empowering the youth. Allocating Rs 1.48 lakh crore for education, employment, and skilling initiatives are a significant step towards nurturing a skilled workforce within the country and becoming a source for the rest of the world. The key priorities to skill 20 lakh youth over the next five years, upgrading 1,000 ITIs, and aligning course content with industry needs to address the skills gap are all welcome moves.  However, India needs at least 1500 HEIs to support the growing student population of 40 million students aspiring for higher education opportunities. The financial support through student loans up to Rs. 10 Lakh for those pursuing higher education in the country is encouraging. Yet, it's important to recognize the gap in opportunities for students aspiring to study abroad. Increasing support for international education would further enhance India's stance in the global educational ecosystem."

Meenakshi Kachroo Chatta, Senior Director & Regional Head, College Board - India, South & Central Asia: 

"The Union Budget for FY 24-25 presented by Finance Minister Ms. Nirmala Sitharaman highlights a significant focus on youth, employment, and skilling. The substantial allocation towards education and skilling initiatives underscores the government's commitment to empowering our youth and preparing them for the future job market. The introduction of E-vouchers and the revised skill loans scheme are positive steps towards increasing access to higher education, but continued efforts are needed to ensure that these benefits reach underserved and marginalized sections of society.

Standardized testing plays a pivotal role in facilitating student mobility and providing equitable access to higher education opportunities. By offering a consistent measure of academic ability, standardized tests help bridge the gap between different educational systems and provide students with opportunities to pursue higher education both domestically and internationally. We encourage the government to consider integrating internationally accepted, robust assessment frameworks as part of their broader educational initiatives.

Furthermore, the College Board is committed to promoting access and equity in education. Our India Scholarship Programs are designed to enable lower-income students to save money as they plan for university, thereby ensuring that financial constraints do not hinder academic aspirations. Dedicated to supporting these initiatives we look forward to collaborating with the government and educational institutions to enhance the quality and accessibility of education in India."

Sandeep Chordia, COO, Kotak Securities: “Overall budget continues the path of fiscal consolidation with revised target of 4.9% of GDP for FY25 ( from earlier target of 5.1%, aided by dividend from RBI and tax buoyancy) and 4.5% for FY26 which is hugely positive. Three proposals impacting capital market the most are , increase in capital gain tax, STT on F&O, and taxation on buyback of shares. There is increase in Short term Capital Gain Tax from 15% to 20% and long term from 10 to 12.5% for all sale transactions effective from 23rd July 2024. Fine print also takes away indexation benefit on sale of property , gold and unlisted assets. STT on futures increases marginally from 0.0125% to 0.02% and on options from 0.0625% to 0.1% on premium. Buyback of securities will now be taxed in the hands of shareholders similar to dividend and capital loss generated on buyback will be allowed to be set off against other capital gain."

Ashish Nanda, President and Head - Digital Business, Kotak Securities:While STT has been increased on both Futures and Options from 1st October 2024, this is the same date when exchange turnover charges will be reduced. In my view the net impact of this will be largely net neutral for the customer. Example, STT on Options will increase by ₹3.75 per ₹10,000 round trip premium turnover while exchange turnover charges should reduce by approx ₹3.50 to ₹4.

Pankaj Dhingra, Managing Partner, Co Founder, FinTram Global LLP - "FinTram Global applauds the Union Budget 2024 for prioritizing education and skilling opportunities, alongside paid internships for Indian students. The revision of the Model Skill Loan Scheme to facilitate loans up to ₹7.5 lakh, backed by a government-promoted fund, is expected to help 25,000 students annually. Additionally, the financial support for education loans up to ₹10 lakh, with e-vouchers providing annual interest subvention of 3% for 1 lakh students, is a transformative measure. This initiative will significantly benefit our country's vast talent pool, ensuring accessibility and affordability of higher education opportunities for all. We are proud to align with these efforts, empowering youth and women through education and skill development."