Interim Budget FY25 – Reactions


“The strategylaid out reflects the Prime Minister's vision of a modern, inclusive,resilient, innovative, and green India. Continued priority to achieve rapidgrowth of the green energy sector is clear. Announcements on viability gapfunding for offshore wind energy and allocations for solar rooftop projectswill support development of the whole industry. The announcement of the corpusof `1.00-lakh-crore for R&D in sunrise sectors sets a positive tonefor the future, encouraging us to accelerate our investments and innovations inrenewable energy technologies.”

-         Sumant Sinha, Founder, Chairman, andCEO, ReNew.

“In line withCARE Ratings expectations, Government’s capital investment outlay forinfrastructure to be maintained at 3.4 per cent of GDP (2024-25), which is insync with 3.3 per cent of GDP (2023-24). Incremental focus on economiccorridors to gain logistic efficiency; green energy initiatives through roof topsolarisation, and VGF support for off-shore wind projects augur well in thepursuit of transforming the nation into US$26-trillion economy by 2047.”

-         Rajashree Murkute, Senior Director – InfrastructureRatings.

“The significantfocus on infrastructure and housing, especially the PM Awas Yojana Grameen,achieving 3.0 crore houses and planning 2.0 crore more in the next five years,resonates with Finolex Industries' commitment to sustainable communities.”

-         Ajit Venkataraman, MD, FinolexIndustries Ltd.

“The solarrooftop schemes will be a big boost to not only meet our goals for clean energybut will also set up India to start addressing the EV charging infrastructurethat is currently holding back wider adoption of EVs. It will also createenormous jobs for installation, manufacturing, and maintenance of solarinfrastructure and a secondary effect will be opportunities available for start-upsto build on this.”

-         Mayuresh Raut, Co-founder and ManagingPartner, Seafund.

“We see theUnion Budget 2024 highlights as progressive from the renewable energy andclimate change mitigation perspective. My submission for the Government toconsider is the viability gap funding and overall availability of green financefor renewable energy, especially hydropower. A friendlier and more accessiblefiscal ecosystem, including easier insurance, will help energize this criticalrenewable energy generation category.”

-         Apurve Goel, Director, Kundan GreenEnergy.

“The uniongovernment has yet again reinstated its commitment to sustainably growing andstrengthening the economy. Capital allocation of `11.11-lakh-croretowards infrastructure development will play a pivotal role in fosteringeconomic growth and prosperity. The emphasis on improving manufacturing andcharging infrastructure aligns perfectly with our aim for a moreenvironmentally responsible tomorrow.

Simultaneously,the growing adoption of e-buses for public transport networks is a commendablestep that not only solves environmental issues but also paves the way forsignificant growth in the electric vehicle market. The emphasis on EV charginginfrastructure not only accelerates the transition to greener energy but alsoencourages entrepreneurial possibilities for vendors, creating jobs for youngpeople skilled in manufacture, installation, and maintenance.

Furthermore, theintroduction of the rooftop solarisation scheme, the conversion of 40,000 railcoaches to Vande Bharat standards, and the ambitious goal of establishing 100million tonnes of coal gasification and liquefaction capacity by 2030demonstrate a comprehensive approach to sustainable development. Additionalefforts, such as starting a new bio-manufacturing and bio-foundry plan and legislatingthe gradual mixing of CNG and biogas, add to the budget's optimistic tone for afuture in which economic growth and environmental conscience coexist.”

-         Dr. Sudhir Mehta, Founder and Chairman,Pinnacle Industries, and EKA Mobility.

“The UnionBudget 2024 builds on India's proactive approach towards transformative growth,especially fostering collaboration and innovation across manufacturing,infrastructure, and technology sectors. With a significant increment in capitalexpenditure target for FY25, the budget emphasizes on the enhancement ofinfrastructure for multi-modal connectivity. In addition, it promises asustainable and efficient mobility ecosystem. In addition, the rooftopsolarization of 1.0 crore households will help the country move towards cleanerenergy.”

-         Sunjay J Kapur, Chairman, SonaComstar and Chairman, CII Europe Committee.

“It has beenheartening to witness the government's continued ‘push’ on infrastructuredevelopment, with an increase in the outlay for the next year by 11.1 per cent,accounting for 3.4 per cent of the GDP. The government’s consistent focus andconsistency in this domain will play a key role in boosting the CapEx cycle.Further, with an increase in the activities within the sector, we are alsolikely to witness an increasing demand in the metal, mining, and cement sectors– generating more employment opportunities.”

-         Jayanth Murthy, Joint Managing Director,Kaizen Institute – India, South Asia, and Africa.  

“The boost incapital expenditure, reaching `10-lakh-crore is a noteworthy increase from the previous fiscal's `7.3-lakh-crore. This commitment to infrastructure development alignsseamlessly with Trimble's mission to revolutionize the construction and relatedindustries through cutting-edge technology for speedy, sustainable, andhigh-quality development. As functional airports are set to be doubled to 149,Trimble is excited about contributing innovative solutions to enhance theaviation infrastructure.”

-         Rajan Aiyer, Vice President andManaging Director, Trimble, South Asia Region.

“The budget hasmaintained a consistent focus on infrastructure investments as a key enablerfor driving India’s competitiveness. With an outlay of `11.1-lakh-crore,the budget has put significant focus on railway corridors to enable logisticscost reduction. Capital expenditure for airport expansions will help in servingthe growth needs of one of the fastest growing aviation markets in the world.Likewise, promoting public transport investments across metro, rail, electricbuses and regional rail projects will serve several objectives of the countryby enabling urban transformation, decongesting our cities, and driving ourdecarbonisation agenda for transport. Finally, tourism is a large economicdevelopment opportunity for India. Promoting development of tourism sites bystates, investments in connectivity infrastructure and addition of new iconictourism centres will enable local employment and create economic opportunitiesacross Indian states.”

-         Mohammad Athar, Partner and Leader– CP&I and Industrial Development, PwC India. 

“The 2024interim budget unfolds a visionary roadmap for 'Viksit Bharat’, with `11,11,111-crore infrastructure allocation, constituting 3.4 per centof the GDP, this is a game-changer for sectors such as metals, logistics, andgreen energy. Initiatives like railway corridors, metro expansion, Vande Bharattrains, and new airports will bolster efficiency and create jobs. Modernizationof airports, ports, and greenfield development further galvanize ourinfrastructure backbone, thus aiding employment for the youth and GDP growthsimultaneously.

The emphasis onrooftop solar aligns with the 'Green Growth' vision, propelling India towardsnet zero. Green energy projects, offshore wind, and the EV ecosystem expansionmark significant steps towards sustainability. This will stimulate demand forcritical minerals. We are optimistic about the transformative impact of theseinitiatives, boosting demand for galvanized steel among other metals andminerals across infrastructure and green projects.”

-         Arun Misra, CEO, Hindustan Zinc Limited.

“We would liketo applaud Hon’ble Finance Minister, Smt Nirmala Sitharaman for presenting aprogressive budget accelerating the momentum in infrastructure sector and forthe contribution to affordable housing. The thrust on building digital publicinfrastructure along with the three major economic railway corridor programmeswill enable multi-modal connectivity and help grow demand for new elevators.”

-         Sebi Joseph, President, Otis India.

“The InterimBudget 2024–25 is a growth-oriented budget with a focus on green growth,motivating businesses to accelerate their shift towards net-zero goals andsustainability. The budget also addresses crucial aspects such as the targetset for PM Awas Yojana (Grameen) of 3.0 crore houses and adding 2.0 crore morehouses in the next five years, meeting housing requirements for families, andinfrastructure investment, among other key programs.”

-         Hemant Khurana, Managing Director –Mortars and Homes business, Saint-Gobain India.

“The UnionBudget 2024 strategically addresses key aspects with its focus on rooftopsolarization through the Muft Bijli initiative. This move not only aligns withthe global trend towards sustainable energy but also marks a significant stridein empowering 1.0 crore households with up to 300 units of complimentaryelectricity monthly. Furthermore, the budget's acknowledgment of the housingsector, exemplified by initiatives such as the Pradhan Mantri Awas Yojana andthe Housing for Middle-Class scheme, sets the stage for Finolex Cables to makesubstantial contributions to the nation's infrastructure landscape.”

-         Mahesh Viswanathan, CFO, Finolex Cables.

“The 2024-25 Budgetmaintains the ongoing commitment to investments in Urban and Housingdevelopment, aligning with the previous years' strategies. Established schemeslike Pradhan Mantri Awas Yojana, AMRUT, and Swachh Bharat are anticipated toevolve in their next iterations, shaping up in the upcoming budget.

A significantfocus has been directed towards the development of mass transit systems,specifically Metro Rail and NaMo Bharat, accompanied by transit-orienteddevelopment along these routes. This emphasis is likely to extend to the nextphase of reforms associated with accessing funds under the Scheme for SpecialAssistance to State for Capital Infrastructure (SSASCI), maintaining aconsistent allocation of `1.30-lakh-crore, similar to the previous year. Additionally, thereis a concerted effort to leverage electric buses, aligning with the objectivesof the PM e-Bus Sewa scheme launched in 2023-24, aimed at enhancing urbanmobility.

-         Aarti Harbhajanka, Co-Founder and CFO,Primus Partners.

“The governmentis actively promoting inclusive sustainable development through initiativessuch as rooftop solar, as outlined in the Finance Minister's speech.Anticipating new guidelines and incentives under the 'Pradhan Mantri SuryodayaYojana,' the industry is optimistic about India's rooftop solar energytransition.

The commitmentto rooftop solarization and providing free electricity to 1.0 crore householdsis expected to infuse competitiveness and innovation into the solar sector.With the potential to contribute significantly to achieving the government'starget of making India net zero by 2070, this boost is poised to generateemployment opportunities for the youth engaged in manufacturing, installation,and maintenance within the solar industry. The interim budget has successfullyunlocked the true economic potential of India's rooftop sector.”

-         Radhika Choudary, Co-Founder, FreyrEnergy.

“The cumulativeincentive outlay under the Production-Linked Incentive (PLI) scheme is likelyto exceed `23,000-crore by fiscal 2025. Given the nature of this capex, asignificant portion of the incentives will be back-ended and may peak aroundfiscal 2027. Incentives over the scheme period will total ~`1.9-lakh-crore. While incentives between fiscal 2022 and fiscal 2025will be led by mobiles, auto, and pharmaceuticals, investment in relativelycomplex sectors such as ACC (advanced chemistry cell) batteries and solarphotovoltaic modules will drive PLI disbursements from fiscal 2026.Cumulatively, the scheme will lead to incremental capex of `3.00-`3.5-lakh-crore, of which ~`1.00-lakh-crore has beenrealised till November 2023.”

-         Aniket Dani, Director – Research, CRISILMarket Intelligence and Analytics

“Focus onsupporting 1 GW off-shore wind capacities through viability gap funding islikely to support longer term growth of the wind sector, which has laggedbehind solar in per-annum capacity addition. One of the challenges for windsector growth is availability of sites with high wind potential. Opening upoffshore sites, such as sea-beds, and providing funding support has thepotential to improve supply and be a tailwind for growth.

Moreover, stresson new airport development in line with previous goals of taking the number ofairports to 220 from 149 currently is a positive for both airport and airlinesectors. This will help increase geographical penetration of air travel in thecountry, bringing many non-metro cities into India’s flight map. Capexopportunities for developers will trend up.

And, budgetaryannouncement of converting 40,000 rail bogies to Vande Bharat standards willfurther boost demand for stainless steel in railways sector, which has beenwitnessing increasing usage of the alloy due to its higher durability and lowermaintenance.”

-         Ankit Hakhu, Director, CRISIL RatingsLtd.

“The UnionInterim Budget 2024 brought much-needed cheer to the Indian rooftop solarsector, with a significant increase in subsidies. This bold move towardsdistributed solar, where energy is generated closer to consumption, is awelcome move by the government. It not only addresses the increasing powerdemand but also anticipates the surge expected from the rise of electricvehicles (EVs). The government has taken a commendable step towards a brightersolar future.”

-         Yashraj Khaitan, Founder and CEO,Polaris Smart Metering.

“Prioritizingpeople, the focus on railway corridors and PM Gati Shakti projects is asignificant stride towards a developed India by 2047. Converting 40,000 railcoaches to Vande Bharat standards ensures comfort, convenience, and safety.'Naya Viksit Bharat' travel sets a new paradigm, aligning with the vision of areliable and updated transportation network.”

-         Umesh Chowdhary, VC and MD, TitagarhRail Systems Ltd.

“The interimbudget for FY 2024-25 lays a strong foundation for economic growth andresilience through major impetus on infrastructure development. At LouisBerger, we are pleased to see the emphasis on this sector which will be acatalyst in ensuring equitable access and participation in economicopportunities across the nation. We welcome the increase in capital expenditureon infrastructure for the fourth consecutive year to `11.11-lakh-core.This will accelerate the efficient use of land resources, enable adequateresources for existing and upcoming urban infrastructure, enhanced availabilityand affordability of urban land, and, most importantly, job creation.”

-         Surajit Bhattacharya, Vice President andExecutive Director (Asia), Louis Berger.

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