Finance Minister Nirmala Sitharaman presented the 74^th Union Budget. This also marked the seventh time Sitharaman took centre stage for announcing the budget, which saw a slew of announcements targeted towards various sections and strata in the country. While there was no straight-up announcement for the automotive industry, which stakeholders were hoping for, there could be some indirect boost in sales especially for the entry-level two-wheelers and four-wheelers. 

Here is what industry stakeholders think of the Union Budget 2024

Vinod Aggarwal, President, SIAM and MD & CEO, Volvo Eicher Commercial Vehicles: “The Indian automobile industry welcomes the continued emphasis on economic growth with several announcements especially the strong fiscal support for infrastructure in the next 5 years. The announcements such as liberal allocation for rural development & infrastructure of INR 2.66 lakh crore is a welcome step that will boost the rural economy. SIAM also welcomes several proposals in the budget such as:

Measures for skilling and upskilling and support to manufacturing and employment generation.

Support to MSMEs, many of whom form the large supplier base for the auto sector.

Exemption of Customs Duty on import of lithium, cobalt and other rare minerals and extension of concessional customs duty on li-ion cells till March 2026; and

Withdrawal of Equalisation Levy of two percent on e-transactions.”

Dr. Pawan Munjal, Executive Chairman, Hero MotoCorp: “The Budget 2024 is a visionary and pragmatic blueprint designed to propel our economy forward and foster a sustainable future. I am confident that this budget presented by Finance Minister M Nirmala Sitharaman will stimulate consumption, attract substantial investments, and stabilize inflation. This budget successfully addresses the dual imperatives of economic growth and fiscal responsibility. The Government of India has undertaken exemplary initiatives to fuel the next generation of economic reforms. With an optimistic growth forecast of seven percent for the fiscal year 2024-25, this budget reflects the significant progress our nation has made across various sectors. It embodies the government's vision of a #ViksitBharat, emphasising on employment & skill development, infrastructure advancement, manufacturing, energy, technology & innovation, and research & development. The provisions for the rural economy and infrastructure, coupled with land reforms and ease of doing business, will further boost the overall economy. Furthermore, this budget reinforces our commitment to supporting youth, farmers, women, and the underprivileged, ensuring inclusive growth and prosperity for all. Budget 2024 positions India as a technology-driven and knowledge-driven economy, reaffirming our commitment to sustainable development. It is a decisive step towards realising our national aspirations and strengthening our position on the global stage.”

"The recent budget announcement by the Government of India brings a blend of optimism and challenges for the auto retail sector. The focus on 'Garib', 'Mahilayen', 'Yuva', and 'Annadata' highlights a comprehensive approach towards inclusive growth, which is commendable. The enhanced Minimum Support Prices for major crops and the launch of Phase IV of PMGSY are positive steps that will boost rural incomes and improve rural connectivity, thereby potentially increasing rural auto sales.

Shradha Suri Marwah, President ACMA & CMD Subros: “The budget, a blueprint for Viksit Bharat, will drive sustainable yet inclusive growth, especially in the manufacturing industry, at a rapid pace. Focus on strengthening of MSMEs through Credit Guarantee scheme and credit support during stress period, measures to bolster energy security and encouragement to start-ups by abolishing angel tax are indeed steps in the right direction. Further, the proposals for personal Income Tax will put more money in the hands of people thus fuelling consumption leading to economic growth. ACMA is also delighted by the measures announced towards employment, skilling, internships and research. Reduction in customs duty to nil on critical minerals such as lithium, copper, cobalt, nickel etc. will encourage cell manufacturing in the country and add to the evolving EV ecosystem in the country.”

Dheeraj Hinduja, Executive Chairman, Ashok Leyland: “The Finance Minister has presented a growth-oriented and pro-development Budget for 2024-25 by focusing on national infrastructure development, urban development, sustainable planning, and inclusive growth through a tech-enabled economy. With this budget, the government aims to address key issues, provide targeted support, and sets a robust agenda for growth and development. The continued emphasis on fostering investment and enhancing road infrastructure, especially in Andhra Pradesh and Bihar will facilitate growth in the manufacturing and automobile sectors. Focus on private investment in infrastructure, mining and housing sector is also likely to boost the sale of CVs. Furthermore, reduction in duties on rare earth minerals will help in promoting sustainable mobility and this resonates with our commitment to fostering a cleaner and more sustainable future.”

Sudarshan Venu, MD, TVS Motor Company: “The focus is on growth in this budget and the government is clearly looking at a long-term strategy. The schemes to get more people into the formal sector will go a long way in tapping into the potential of India’s young workforce, and the government’s continued commitment to infrastructure development is a big boost for economic growth and opportunities. This helps build on the momentum created in the previous two terms.”

Dr Anish Shah, President, FICCI: “FICCI congratulates the Finance Minister for delivering a growth-oriented budget that has delivered both short term demand stimulus and actions focused on medium to long term growth imperatives, while maintaining fiscal discipline. The budget is inclusive, with a strong thrust on quality job creation and skilling. It also strikes a balance between agriculture and manufacturing, with elements of services. There is continuity in policy announcements. The focus on simplification and ease of doing business, boost to manufacturing, focus on research and innovation, thrust on public capex, use of technology, support to women, farmers and MSMEs, and promoting sustainability are the key themes that resonate once again in this Union Budget proposals. The focus areas of budget are very much in line with the FICCI’s key priorities for the industry and we are happy to note that many of FICCI’s suggestions have been considered in this budget, as seen in the proposals for accelerating agriculture research, enhancing participation of women workforce in manufacturing, factor market reforms for improving manufacturing competitiveness as well as measures to promote green economy.”

Farrokh N. Cooper, Chairman and Managing Director, Cooper Corporation: “The reduction in the corporate tax rate for foreign companies from 40% to 35% is a commendable move that will attract more foreign investments into the country, fostering growth in the manufacturing sector. The proposed rationalization of capital gains taxation and the simplification of tax procedures will also enhance the ease of doing business. Additionally, the emphasis on fostering employment through various initiatives is highly encouraging. The allocation of funds towards skill development and vocational training programs will equip the labour force with the necessary skills to meet the industry's evolving demands. As a leading engine and component manufacturer, we are hopeful that these measures will lead to increased investments, job creation, and a more skilled workforce within our sector."

Manish Raj Singhania, President, FADA: “The budget's emphasis on employment, skilling, MSMEs, and the middle class is particularly relevant for our industry. The Employment Linked Incentive scheme and the enhancement of Mudra loans are encouraging developments that will support job creation and entrepreneurship, leading to increased consumer spending power. Significant infrastructure investments, with an allocation of Rs. 11,11,111 crore for capital expenditure, will have a multiplier effect on the economy. Improved infrastructure is a boon for the auto sector, facilitating better logistics and enhancing the overall consumer experience.”

“The adjustments in personal income tax, including increased standard deductions and relief for salaried employees and pensioners, are welcome measures that will enhance disposable incomes, fostering a more favourable environment for auto sales. However, the industry must also navigate certain challenges. While the budget provides a robust framework for growth, the effective implementation of these policies will be crucial. We hope for continued support from the government in addressing specific issues faced by the auto retail sector, such as the transition to green mobility and the need for policies that support sustainable practices. Overall, the budget lays a strong foundation for future growth, and we are optimistic about the positive impact it will have on the auto retail industry."

Arnab Banerjee, Chairman Automotive Tyre Manufacturers Association (ATMA): “Budget 2024-25 with sharp focus on infrastructure, manufacturing, and skilling as pillars for economic growth is overall positive for India’s Tyre Industry as the fortunes of tyre sector are linked to the country's economic and infrastructure growth. The CAPEX target for FY2025 has been maintained at over INR 11 lakh crore and shows government’s unwavering and continued commitment to infrastructure development for sustaining economic growth. Further, the announcement of 12 new industrial parks under the National Industrial Corridors with focus on creating integrated zones, is expected to significantly boost the logistics and transport, in turn, giving a fillip to CV tyres.”

“A budget allocation of Rs 2.66 lakh crore designated for rural development, including rural infrastructure projects will impart a push to rural economy and higher demand for two wheelers and entry level cars with spinoff demand for tyre industry too. The tyre industry is poised to play a larger role in India’s economic growth as the "wheels of the nation. The industry was looking forward to reduction in customs duty on natural rubber which is the highest in the world and which unfortunately has not been addressed. However, the Finance Minister's proposal of a comprehensive review of the rate structure over the next six months to rationalise and simplify it for ease of trade and removal of duty inversion provides major solace to the industry.”

Prashanth Doreswamy, CEO and President, Continental India: “The budget has a promise of investments across different sectors and seems to focus on long-term inclusive growth, indirectly also benefitting the automotive industry. There is a holistic approach towards infrastructure development, road connectivity, re-development projects, and measures to strengthen energy security, which will facilitate the creation of a smoother and more effective urban ecosystem - key for multiple industries and sectors, and for the economy at large. The continued focus on technology as an enabler is reassuring. The growth of digital public infrastructure and the digitalization of the economy will greatly support future growth.”

“The move to simplify business processes, legislative processes, Foreign Direct Investment, and focus on ease of doing business are also welcome. Abolishing angel tax is a step in the right direction for the growth of the start-up ecosystem, which plays a huge role in increasing our overall innovation. Reduction in customs duty on critical minerals like lithium, copper, cobalt, and nickel will encourage cell manufacturing in India and add to the evolving EV ecosystem. We were hopeful that the budget would include a reduction in customs duties for imports and other schemes like PLI and incentives to boost domestic manufacturing. Another welcome move was the credit guarantee schemes for MSMEs, which are significant for the Indian manufacturing value chain. We are also happy to see the emphasis on skill development, job creation, and the move to increase participation of women in the workforce.”

Sunjay J Kapur, Chairman of Sona Comstar & Deputy Chairman of CII Northern Region: “The budget's emphasis on ease of doing business, with measures like rationalising stamp duty and incentivising states for business reforms, is a positive step. The abolition of Angel Tax is a major boost for the startup ecosystem. CII is particularly encouraged by the government's focus on energy transition and the development of a roadmap for HTA industries that include - steel, power, chemical and refinery. We believe these initiatives will accelerate India's progress towards a low-carbon future. Furthermore, the increased allocation for skill development and the focus on e-commerce export hubs will create new opportunities for MSMEs and youth. The enhanced healthcare funding will strengthen the nation's medical infrastructure, while the investment in agritech will support farmers with innovative solutions. The emphasis on digital public infrastructure is set to transform various sectors, ensuring India remains at the forefront of the global digital economy."

"Moreover, the simplifications in FDI rules will further help attract foreign investments. Also, identifying R&D as a priority area marks a significant push for innovation across sectors. These announcements supported by the commitment to allocating capital expenditure, equating to 3.4% of GDP, is a very progressive stepstone for unlocking the country’s potential. The budget not only prioritizes economic growth but also lays a robust foundation for an innovation and knowledge-based economy.”

Vikram Gulati, Country Head and Executive Vice-President, Corporate Affairs and Governance, Toyota Kirloskar Motor: “The budget is finely balanced with the government continuing to focus on infrastructure development as well as heightened outlays towards social sector, while maintaining the glide path towards fiscal consolidation by keeping the fiscal deficit at 4.9%. The thrust on welfare of farmers through enhanced productivity in the agricultural sector as well as the measures to improve women participation in workforce will help to broaden the benefits of economic growth.”

“Furthermore, the government has given special attention to MSME and manufacturing sector with key measures and specially formulated packages. This will help to enhance the contribution of manufacturing to national GDP. It is encouraging to note the various measures proposed by the government towards energy transition and for mitigating climate change. The fight against carbon emissions and the goal of achieving carbon neutrality by 2050 is at the core of Toyota Kirloskar Motor (TKM) sustainability efforts. We welcome the increased emphasis towards education and skilling with the introduction of several transformative measures for students and youths. Complementing this, the introduction of internship scheme with stipend from CSR (corporate social responsibility) spending is encouraging, aimed at providing good exposure to real work environment and heighten job opportunities. These measures are bound to help the country realise the advantages of demographic dividends. The tax rationalisation will make available more disposal incomes, thereby boosting consumption which will help spur economic growth. We welcome and look forward to the various reforms that the government intends to bring within the given timeframe.” 

Dr Sudhir Mehta, Founder and Chairman, EKA Mobility & Pinnacle Industries: "Today's union budget marks a significant milestone in India's journey toward becoming a $5 trillion economy and solidifies its role as a global growth engine. The government’s comprehensive approach to supporting various sectors, especially MSMEs and start-ups, is commendable. The introduction of a credit guarantee scheme for MSMEs, which facilitates term loans without collateral or third-party guarantees, is a game-changer. By reducing the turnover threshold for mandatory onboarding on the TReDS platform from Rs 500 crore to Rs 250 crore, the government is making it easier for smaller MSMEs to benefit from this essential online platform. Additionally, opening 24 new SIDBI branches will enhance support for MSME clusters across the country. Likewise, the abolition of the 'Angel Tax' for all investors in start-ups is another progressive move, offering substantial relief and encouraging greater investment in innovation and entrepreneurship. While, in agriculture, the allocation of INR 2.66 lakh crore for rural development and the focus on climate-resilient crop varieties reflect a forward-thinking strategy. The initiative to introduce 1 crore farmers to natural farming over the next two years, supported by certification and branding, will contribute significantly to the sector’s sustainability and productivity. Overall, these measures underscore the government's commitment to fostering economic growth, supporting innovation, and driving sustainable development across sectors.”

Bal Malkit Singh, Chairman - Core Committee & Former President, All India Motor Transport Congress (AIMTC): “The road transport fraternity of India is deeply pained by the government’s callous attitude towards this sector. As the highest taxpayer to the exchequer and the second highest in terms of employment generation, after agriculture, the road transport sector had hoped for positive outcomes through constructive engagement with the government. Unfortunately, these hopes have been in vain. We had submitted a detailed Budget Memorandum to the Finance Minister, anticipating some relief for this sector. However, it seems that the heartfelt pleas of those working in this sector could not penetrate the iron-walled Ministry of Finance, as not a single benefit was granted.”

“The macro-objects of Infrastructure & tourism development in Odisha and Bihar (as part of political exigencies) is the only solace for our brethren from passenger transport and tourism sector. The viability of this sector is increasingly threatened by multiple taxation, rampant corruption, and rising input costs such as diesel, tolls, third-party insurance, and tyre prices. We are profoundly disappointed with the current Budget, as it not only fails to meet the expectations of those working in this sector but also those of the common man,” added Singh.

Uday Narang, Founder and Chairman, Omega Seiki Mobility: “We commend Finance Minister Nirmala Sitharaman and the government for the 2024 Budget, reflecting a visionary approach to the automotive sector. Exempting import duties on critical minerals, including lithium, cobalt and other minerals reduces battery manufacturing costs and makes electric vehicles more affordable. Investing in skill development, with 1,000 industrial training centres, ensures a skilled workforce for our evolving industry. The focus on women-led development and substantial allocation for schemes benefiting women and girls fosters inclusivity and empowerment. These initiatives will propel the industry towards a greener and more inclusive future.”

Niranjan Kirloskar, MD, Fleetguard Filters: “The Union Budget presented today aligns well with the Government's vision of a Viksit Bharat. The budget highlights several positives aimed at boosting economic growth, employment, sustainability, and inclusive development. Special focus and reiteration of skilling, employment, manufacturing, strong infrastructure development, agriculture, and R&D, among other mentions, should positively reassure companies to focus on investing in all levels of its employees – especially newer ones, and also concentrate on becoming future-proof, by investing in rigorous research and development. In addition to the above, proposing a climate taxonomy or climate finance to encourage greener businesses and, in turn, create a greener economy in the long run, signifies the important role of Indian companies in the fight against global climate change and aligns with global ESG goals which can make Indian companies attractive for FDI.”

Pali Tripathi, CEO, Taabi Mobility (part of RPG Group): "The Budget 2024's visionary approach to infrastructure development is crucial for our nation's growth. The significant INR 11,11,111 crore allocation for capital expenditure and the promotion of private investment through viability gap funding reflect a strong commitment to building a resilient infrastructure. We are excited about the focus on developing digital public infrastructure applications and integrated technology platforms. These initiatives will enhance productivity and innovation, aligning with our mission to leverage AI and technology for smart, resilient, and inclusive solutions. We look forward to contributing to and benefiting from these measures."

Mukund Vasudevan, MD, SKF India and President SKF ISEA Region: “The robust allocation of INR 11.1 lakh crore for capital expenditure reflects a strong commitment to infrastructure development, which will be instrumental in driving the manufacturing sector forward. The budget's focus on skilling and employment is particularly noteworthy, with an impressive INR 2 lakh crore dedicated to youth and skill development over the next five years. This initiative promises to create a skilled workforce that will not only enhance productivity but also contribute to a Viksit Bharat. Furthermore, the substantial provisions for rural development and the creation of industrial nodes will foster regional economic growth and job creation. These strategic investments will not only enhance the manufacturing capabilities but also drive infrastructural advancements, significantly contributing to the nation's holistic development.”

Santosh Iyer, MD & CEO, Mercedes-Benz India: “The budget clearly underlines government’s priorities on creating a robust foundation for a developed Indian economy. We are glad the capex on infra projects tops govt’s priority, with 3.4 percent GDP allocation. We were expecting GST announcement of long-term continuation of reduced GST for BEVs; however, developing a climate finance taxonomy to aid capital for climate adaptation and mitigating climate change, is a step in the right direction for achieving climate commitments.”

Devndra Chawla, MD & CEO, GreenCell Mobility: “We appreciate the significant steps taken towards infrastructure development and sustainable transportation by the finance minister in the first union budget under Modi 3.0 government. The proposal of industrial parks and road connectivity projects, including the INR 260 billion investment in road infrastructure, will go a long way towards achieving the vision of Viksit Bharat. Improved road infrastructure will not only boost economic growth but also enhance the quality of life for millions of Indians. These measures will facilitate easier commutes, reduce travel times, and support the growth of urban and semi-urban areas. The creation of a climate finance taxonomy will boost capital availability for climate adaptation and mitigation. This initiative will help India to meet its climate commitments and fast track green transition, paving the way for a more sustainable future. The government's initiative to transform iconic tourist hubs is truly praiseworthy. With robust state-level marketing and branding, these efforts are set to make a big impact. The launch of a new rating system for tourist centres, focusing on the quality of facilities, marks a significant move towards boosting India's tourism infrastructure. The reduction in tax slabs under the New Tax Regime is a game-changer. With more disposable income, people will find it easier to travel and explore new destinations.”

Shalabh Chaturvedi, MD, CASE Construction Equipment – India & SAARC: “The Finance Minister's announcement of INR 2.66 lakh crore for rural development, including rural infrastructure, in the Union Budget 2024-25 is a significant investment that aligns with our mission to support and enhance India's rural infrastructure. Starting from the introduction of the Jan Samarth-based Kisan Credit Card, and the support for Andhra Pradesh, Bihar, and other key regions, the government’s holistic approach to infrastructure, skilling, and rural development are vital initiatives. Additionally, the focus on employment and skills with an allocation of INR 2 lakh crore is encouraging. The various schemes for employment-linked incentives and skilling programs will create a skilled workforce ready to meet the demands of modern infrastructure projects. This budget reflects a balanced approach to developing infrastructure while empowering the workforce, and we are excited to be a part of this transformative journey. Initiatives such as providing one month’s wage for first-time employees, creating job opportunities for 30 lakh youths in manufacturing, and supporting skilling programs for 20 lakh individuals are a great way of boosting productivity, enhancing infrastructure and employment opportunities across the country.”

Rajat Verma, Founder & CEO, Lohum: "We applaud the Union Budget 2024 for its visionary focus on energy security and critical materials, among the 9 priority areas. The exemption and reductions of customs duties on 25 critical minerals will contribute to diversifying our energy mix as well as to advanced manufacturing. Similarly, PM Surya Ghar Muft Bijli scheme to install rooftop solar for 1 crore households is a significant step towards mainstreaming sustainable energy. We are particularly excited about the Critical Mineral Mission, which will enhance production, recycling, and overseas acquisition of critical minerals. The mission’s focus on technology development, a skilled workforce, and suitable financing mechanisms is just what the ecosystem needs right now. The upcoming offshore mineral auction round and the simplification of FDI rules will further attract investments and foster growth in clean energy.” 

Utkarsh Singh, Co-Founder & CEO, BatX Energies: "The reduction of Basic Customs Duty (BCD) and exemption of 25 essential minerals from custom charges is set to lower production costs for battery manufacturing and recycling, enhancing the affordability and accessibility of electric vehicles (EVs) in India. The strategic move will significantly impact India's EV market by lowering production costs, enhancing competitiveness, supporting domestic manufacturing, encouraging innovation, improving supply chain resilience, and promoting environmental sustainability. The budget aims to support the ambitious goal of achieving 30 percent electrification of the vehicle fleet by 2030, bolstered by initiatives like the Production Linked Incentive (PLI) scheme for urban mining in future, expected to expand recycling capacity to process 295,000 metric tons of dead batteries annually, generating significant employment and forex savings estimated at INR 318 billion by 2030. These measures collectively position India not only as a leader in the global transition to sustainable and green mobility but also as a visionary pioneer shaping the future of clean energy and environmental stewardship. With this forward-thinking approach, India is poised to redefine the global landscape of sustainable development and green innovation."

Dr. Amitabh Saran, CEO & Founder, Altigreen: “The 2024 Union Budget has announced incentives for the battery manufacturing industry by waiving off the import duties on 25 minerals, including lithium. This will help in reducing the cost of battery resulting in making electric vehicles more economical for the customer. The additional impetus in the budget for generating jobs in the manufacturing sector is likely to benefit 30 lakh youth, thereby bringing in disposable income helping particularly the two-wheeler segment. Investment in highways and rooftop solar will also help in pushing the larger agenda of EVs. We were expecting the government to bring down GST on all EV components to 5 percent including lithium-ion batteries and spare parts. A reduction would make EVs more affordable along with battery price and lead to higher adoption rates.”

Samarth Kholkar, CEO & Co-Founder, BLive: "The 2024 Union Budget has blown the bugle for India's EV and last mile logistics sectors. With the waiving off of import duties on 25 minerals—critical inputs like lithium—and the outlay of INR 26,000 crore for road connectivity projects, will further support the adoption of EV for last mile revolution . These would also support to set the tone for the ambitious target of 30 percent EV sales by 2030. PLI schemes are likely to bring down cell prices, making batteries more affordable. Better road infrastructure will improve the speed of goods movement and last mile efficiency. The potential creation of 30 lakh jobs in manufacturing adds another spark to our economic engine and benefits particularly the two-wheeler segment.”

“This optimism is further fuelled by the abolishing of angel tax on all classes of investors, putting that extra zip in our startup ecosystem. The move is expected to reduce the financial and regulatory burden on startups substantially, encouraging more angel investors to fund innovative ventures in the EV and logistics space.

More intently, though, we believe that much bolder steps are now needed. Bringing down GST on all components of EVs to 5 percent will make electric vehicles more pocket-friendly and increase adoption. Our charging and battery swapping infrastructure must be expanded to eliminate range anxiety and provide seamless service to our users,” added Kholkar.

Sirajuddin Ali, Founder and CEO, Malitra India: “Promising commitment and infusion of INR 260 crore of funds for road connectivity shall certainly bring EV to rural part of India. It will also lead to a sharp push toward the vision of Make in India and EV instead of fossil-based modes of communication. There will be a certain push to electric vehicle charger industry as well due to road connectivity increase.”

Deepak Shetty, CEO and MD, JCB India: “The union budget announced today very critically focusses on employment, skilling, manufacturing and the upliftment of the middle class through a variety of initiatives. Employment and Skilling opportunities will be created through financial assistance where over 2 million youth will be skilled over a five-year period. Additionally, to modernise the Industrial Training Institutes (ITI), 1,000 such institutes will be upgraded in a hub and spoken arrangement. This will certainly create the necessary skills for youth for gainful employment in industries. With a focus on manufacturing, particularly MSMEs, the Finance Minister has extended credit support and has also announced 12 new Industrial parks which will create a manufacturing conducive ecosystem. As always Infrastructure has been a strong area for subsequent budgets which have been announced over the years. This time as well, a provision of 11 lakh crores, which is 3.4 percent of the GDP, has been positive for infrastructure development which has a multiplier effect on the economy.” 

“Critically, the phase 4 of PMGSY, a program which focuses only on Rural roads has also been announced, which will connect over 25,000 rural habitations. This will create employment and also reduce the farm to market distance sprucing up rural economy. The PM Awas Yojna, 2.0 also has been announced, which will improve the lives of over 1 crore people. We feel that with these initiatives, the budget addresses the expectations of the common man and the middle class towards efforts to improve the quality of their lives. This continued focus on infrastructure development also creates robust opportunities for us as the construction equipment sector, and we look forward to a strong growth ahead in the journey towards becoming the 2nd largest in the world."

Hitesh Garg, VP, and India MD, NXP Semiconductors: “We're thrilled about Budget 2024's strong support for the semiconductor and electronics manufacturing sector in India. The government's significant increase in funding for semiconductors, along with the enhanced PLI allocation under MEITY, shows a strong commitment to fostering a thriving ecosystem for technological progress. The semiconductor industry, pivotal to India’s growth, has received a 52 percent increase in its 2024-25 allocation, totalling INR 219 billion in the Union Budget. This initiative aligns with India's ambitions to establish itself as a leading player in global electronics manufacturing. I believe these strategic measures will accelerate growth in the semiconductor industry and enhance India's stature as a preferred hub for semiconductors. In addition to this, the government has also allocated over INR 3 lakh crore for schemes benefiting women, including the establishment of women-specific skilling programs to enhance their participation in the workforce.”

Vikas Bajaj, President of Association of Indian Forging Industry (AIFI): “We welcome the budget presented today, which lays out a comprehensive roadmap for 'Viksit Bharat' across key sectors including manufacturing and services. The emphasis on promoting MSMEs through enhanced credit support and infrastructure development is particularly commendable. These measures will not only bolster job creation but also enhance competitiveness, paving the way for a robust industrial growth trajectory. For the manufacturing sector, the proposed incentives for additional employment will significantly boost job creation and strengthen the manufacturing ecosystem. The special attention given to MSMEs, particularly labour-intensive manufacturing, through financing, regulatory changes, and technology support, is a crucial step toward enhancing global competitiveness. The introduction of a credit guarantee scheme for MSMEs, providing up to INR 100 crore without collateral, along with the new credit assessment model and enhanced Mudra loan limits, will ensure broader financial inclusion and stability. The commitment to developing 'plug and play' industrial parks and reducing customs duty on key raw materials like ferro nickel and blister copper will lower production costs and enhance competitiveness. Additionally, the financial support for shifting micro and small industries to cleaner forms of energy and the facilitation of investment-grade energy audits in 60 clusters, with expansion to 100 clusters, will greatly benefit MSME units in the forging sector. Overall, this budget is a significant step towards 'Viksit Bharat,' and we at AIFI are optimistic about its positive impact on the forging industry and the broader manufacturing sector."

Puneet Vidyarthi, Head of Marketing & Business Development – India & SAARC, Case Construction Equipment & President, Rural Marketing Association of India: "The 2024-2025 Indian Budget places a strong emphasis on rural development, reflecting our commitment to improving the lives of India's rural population. With the launch of Phase IV of Pradhan Mantri Gram Sadak Yojana, it is good to see provisions made for all-weather connectivity to 25,000 rural habitations, ensuring better access and integration for the rural communities. The Pradhan Mantri Janjatiya Unnat Gram Abhiyan aims to uplift 63,000 villages, directly benefitting 5 crore tribal people by enhancing their socio-economic conditions. These initiatives are integral for inclusive growth and more equitable development across India's vast rural landscape."

Kinjal Shah, Senior Vice-President & Co-Group Head – Corporate Ratings, ICRA: “The capital outlay on infrastructure development at Rs. 11.1 trillion for FY2025 BE, equivalent to 3.4 percent of GDP, remains unchanged from the interim budget. The government of India’s continued focus on infrastructure development, including new road projects in Bihar, plug and play industrial parks in 100 cities, and 12 new industrial parks, in turn augurs well for commercial vehicle demand, especially multi-axle vehicles and tippers. The focus on developing tourism locations, as well as improving road connectivity in rural areas, augurs well for the demand for public transportation, including buses.”

Anurag Garg, Country Head & Managing Director, Vitesco Technologies India said, “We welcome the Union Budget 2024 and commend the government's budgetary priorities aimed at fostering innovation, research, and development in the manufacturing sector. The initiatives announced today, such as the credit guarantee scheme and reduction in customs duties on critical raw materials, are poised to strengthen India's manufacturing ecosystem. These measures will not only incentivize additional employment in the manufacturing sector but also provide the necessary financial and technological support to MSMEs, allowing them to compete globally and contribute significantly to the economy. Additionally, the establishment of investment-ready industrial parks and the reduction of input costs through customs duty cuts will boost domestic manufacturing and export competitiveness. We look forward to leveraging these opportunities to drive sustainable growth and technological advancement in the automotive industry, aligning with our vision for a prosperous and 'Viksit Bharat'.”

Harinder Singh, Managing Director & CEO, Yokohama India: "We appreciate the Union Budget 2024 for its emphasis on infrastructure development, job creation, and skill enhancement in the manufacturing sector. The Finance Minister's introduction of programs focused on skilling and offering employment opportunities for youth represents a significant step towards economic advancement. At Yokohama India, we are particularly encouraged by the focus on diversity hiring and incentives for job creation in manufacturing facilities. These efforts resonate with our dedication to fostering a diverse and inclusive workplace, as demonstrated by our 1,000-strong female workforce across our four plants. The government's backing of internships and skill development initiatives will equip young people and strengthen our industry, driving innovation and growth. This budget signals a strong vision for India's manufacturing sector and aligns with our mutual objective of building a resilient and inclusive economy."

Rashi Agarwal, Co-Founder and CBO, Zypp Electric: “The Union Budget's focus on increasing women's workforce participation and youth skilling is a significant step towards addressing key barriers women face in the workforce, promoting gender equality and economic empowerment. The youth skilling initiative is a forward-thinking move that will enhance workforce skills and employability, driving industry growth and boosting the gig economy, particularly by increasing two-wheeler and three-wheeler sales beyond metropolitan areas. Abolishing the angel tax is a commendable decision to foster innovation and support the start-up ecosystem. However, we anticipated announcements on the FAME-III policy and special incentives for the EV sector, which weren't part of this budget. Maintaining policy consistency will be essential to the overall expansion of the electric vehicle market. We expect that the government will provide clarification and lower or eliminate taxes on last-mile delivery services before the present program expires this month.”