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."

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."

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."

Abhijit Zaveri, Founder & Director, Career Mosaic : “We welcome the Union Budget 2024-25 and commend the Union Finance Minister for identifying Yuva (Youth) as a key focus area. The emphasis on financial support for students is highlighted by the allocation of INR 1.48 lakh crore for skill development, employability, and education. The FM announced that e-vouchers will be given to 1 lakh students, showcasing the government's intent to revamp the education sector and increase the Gross Enrolment Ratio (GER) in traditionally low-enrollment sectors/regions. The model skill loans scheme will also be revised to offer loans up to Rs. 7.5 lakh, benefiting 25,000 students annually. Another key highlight is the new internship scheme for 1 crore youth in over 500 top firms in India, providing real-world experience and improving job prospects. We eagerly anticipate further details in the full budget document, particularly regarding collaboration with international universities, which plan to set-up academic campuses in GIFT City and other parts of the country. On the whole, the budget represents a promising step towards empowering the youth of India and help them build a brighter future”

Sripal Jain, CA, CPA, Co-Founder and Global Instructor at Simandhar Education: “The Union Budget 2024 introduces several important measures aimed at enhancing the employability and skilling of India’s youth. The substantial investment in digital infrastructure and educational facilities is commendable and aligns with the need for modernizing our learning environment. While the focus on skilling through ITIs and the introduction of various schemes is a positive development, there is an opportunity to further support the integration of advanced technology in education. Emphasizing technology-driven processes and investing in digital tools can significantly enhance the quality of education and skill development. One area that could benefit from additional focus is the need for increased support for global mobility initiatives. Enabling professionals to gain international experience and access global markets is crucial for their growth and for fostering India’s presence in the global arena. We encourage the government to consider these aspects to ensure a more robust and future-ready education and skilling framework. This will better equip our youth to meet the evolving demands of the global job market."

Anish Srikrishna, CEO, TimesPro - "The Finance Ministry's focus on youth development, job creation and the skilling of millions of young learners will establish a robust foundation for India's economic strength and position it as a global hub for skills. The comprehensive package of schemes, with an estimated cost of Rs. 2 lakh crores, aims to facilitate employment and skilling initiatives, significantly contributing to job creation and skill enhancement across various candidate categories in the country. The direct benefit transfer of one month's salary to new entrants in the workforce will help expand the base of formal employment, benefiting 2.1 lakh young people in India. Higher education has a crucial role in executing these next-generation initiatives. EdTech platforms have proven to be key differentiators in democratizing education through innovative and cutting-edge technology. They are significantly upskilling Indian youth to enhance employability and contribute to executive learning, thereby creating a substantial upskilled workforce to power the economy and we look forward to Edtech’s continued participation in India’s growth narrative."

Aritra Ghosal, Founder and Director of OneStep Global: “The government's commitment to developing a skilled workforce and increasing funding for higher education is a step in the right direction. Initiatives like the Centrally Sponsored Scheme (CSS) for internships in top-tier companies, the establishment of Industrial Training Institutions, and education loans for students will undoubtedly empower our youth and build a skilled workforce for multicultural environments. As announced, the education loan under Model Skill Loan Scheme is up to 10 lakh rupees for higher education. However, it is restricted to domestic higher education. We suggest increasing financial support and reducing interest rates on education loans for overseas higher education as well. Such initiative will support study abroad aspirants in easing out their financial burden and cultivating global competency. This would foster global mobility and international collaborations. While the budget makes notable progress in skilling and empowering youth, we encourage the government to make global education more accessible, thereby boosting India's international educational stature.”

Shiv Chanani (Senior Fund Manager, Equity, Baroda BNP Paribas) “The budget is a start of India's journey from emerging economy to developed economy as it focusses on the building blocks of generating employment and SME sector along with improving fiscal maths with an eye on sovereign rating. We continue to believe that equities as an asset class is likely to be a source of significant wealth creation for investors over the better part of the decade."

Union Budget from 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."

Sachin Jain, Country Manager, ETS India and South 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 comprehensive package of schemes aimed at facilitating employment and skilling initiatives is a step in the right direction. With a significant allocation of Rs. 2 lakh crores, targeting 4.1 crore youth, the Union government has signaled its policy priority of revamping the skilling landscape in the country.  

However, while the announced measures, such as the DBT support and the upgradation of ITIs, are promising, there is still more that could be done to address the challenges faced by our youth in the rapidly evolving job market. We welcome the Centre’s decision to launch a new Centrally Sponsored Scheme for providing paid internship opportunities in the top 500 companies, but we believe that it is imperative to complement practical training with critical soft skills, such as English proficiency, which are key markers of employability.

We believe that standardized tests play a crucial role in supporting equitable access to higher education by providing a fair and objective measure of student abilities, regardless of their socio-economic backgrounds.

We encourage the government to consider integrating internationally accepted, robust assessment frameworks to complement these initiatives, ensuring that every student has the opportunity to demonstrate their potential and succeed in a competitive academic and employability landscape.

We look forward to seeing how these initiatives unfold and contribute to building a robust, future-ready workforce in India.”

CA Bhavesh Hariyani: The Budget has focused on the Macro Economic aspects like Rural Development, skill development and Employment Generation. So from that perspective it is a positive. However from Taxation point of view a very disappointing Budget. Again no encouraging incentive for the middle class. A token increase in Standard Deduction of Rs. 25,000 which is almost negligible. On the other hand a very big negative in the form of increase in capital gains tax. The Long term capital gain tax increased From 10% to 12.5% and short term capital gain tax increased From 15% to 20%. The Stock Market transactions and Real Estate deals will have a significant impact as the proposals are applicable from immediate effect, so there can be no tax planning. Some surprises may unfold when we go through the fine print of the detailed Budget.

In my opinion the government has again missed an opportunity to create confidence among the people specially the middle class who have been paying taxes honestly.

S.M Pareek, Chartered Accountant: Finance Bill presented by new BJP Government today is based on the theme of providing employment,skill development   support MSMEs and for middle class .
Many schemes are proposed to obtain these themes by providing financial support.
Continuance of PMGKY for another five years will be a boon to poor families.
Infrastructure development,   digital public infrastructure, initiative to one crore farmers for natural farming,initiatives for shrimp production and export, reduction of customs duty on precious metals  and life saving medicines say for cancer are other important high lights.Small benifit  by  income  tax reduction to individuals is also there.

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."

Krishan Mishra, CEO, FPSB India: "We at FPSB India commend the Finance Minister for addressing the skill gap through this Union Budget 2024, introducing initiatives to upskill 4.1 crore youth with a ₹2 lakh crore outlay over five years. FPSB India stands aligned with the Centre and committed to upskilling professionals with the financial planning education. Further, the Prime Minister’s package, including Employment Linked Incentives and support for first-time employees, is a significant step towards empowering the youth with opportunities. Incentives to IFSC, such as tax exemptions for retail schemes and reductions in tax rates for foreign companies, further enhance and strengthen the investment ecosystem in the country. FPSB India, is dedicated to IFSCA in providing a steady stream of skilled financial planning professionals for GIFT IFSC and jointly establish GIFT IFSC as a ‘Global Finance Hub."