Corporates and Startups Navigate Optimism and Caution in Response to Budget Announcements

In the wake of Finance Minister Nirmala Sitharaman’s unveiling of Budget 2024, leaders from various sectors share their insights and reactions, offering a nuanced perspective on the potential impacts on their industries. From Ayush to technology, skill development to finance, the responses underscore the diversity of expectations and assessments within the corporate and startup landscape. These reflections provide a comprehensive overview of the sentiments prevailing among key players in the business realm, shedding light on the potential opportunities and challenges.

 

Arpit Jain, Joint MD, Arihant Capital 

 

In response to the recently unveiled budget, characterized as predominantly neutral, the stock markets exhibited minimal movement, with media stocks declining and PSU bank stocks showing an upward trend. The budget’s emphasis on infrastructure, railways, aviation, metro projects, healthcare services, and special schemes for women entrepreneurs indicates growth prospects in these sectors. The government’s planned reforms in animal husbandry, fisheries, and dairy farming further contribute to anticipated sectoral growth. With fiscal deficit targets set at 5.8% for 2024 and 5.1% for 2025, this positive move provides ample borrowing and liquidity for banks and private sector companies. Cement, PSUs, and construction sectors appear promising, along with a focus on energy, power, metal, and hotels for long-term investment.

 

Chakrivardhan Kuppala, Cofounder and Executive Director, Prime Wealth Finserv

 

The Budget 2024 announcement by Finance Minister Nirmala Sitharaman, with its comprehensive focus on social welfare, sustainable development, and technological innovation, hints at a positive trajectory for debt funds, especially for long-term investors. While the budget speech did not directly address changes in bond markets, the initiatives outlined, such as the significant push towards renewable energy, healthcare expansion, and support for the electric vehicle (EV) ecosystem, are likely to have indirect implications on the financial markets, including the performance of debt instruments.

The allocation of a massive corpus for long-term financing in sunrise sectors suggests a governmental inclination towards bolstering economic growth and sustainability. This move, coupled with the initiative to provide interest-free loans for research, may stimulate economic activities, potentially leading to an improved fiscal deficit outlook and stronger macroeconomic fundamentals. These factors are traditionally positive for the bond market, as they may lead to stable or lower interest rates, benefiting existing bonds’ prices.

For long-term investors in debt funds, the budget’s emphasis on growth and sustainable development could translate into a more stable interest rate environment. As the government works to implement its vision, the anticipated economic stability and growth could enhance the attractiveness of long-term debt investments, leading to potential gains in the bond market. However, investors should remain aware of the broader economic indicators and interest rate trends, which play a crucial role in the performance of debt funds.

 

Karan Bhargava, CEO Homoeo Amigo, and Director Bhargava Phytolab

 

Standing true to the trending hashtag #ViksitBharatBudget, the Union Budget 2024 paves the way for further innovation in the Ayush sector. The 50 percent increase in the budget allocation for the National Ayush Mission (NAM) is a significant stride, signalling the government’s commitment to promoting cost-effective Ayush services in the global market. The Budget also addresses the urgent need to spread awareness about the efficacy of traditional medicines by allocating funds for customer awareness initiatives through regular broadcasting. It is the right step in the right direction, overall, the Budget 2024-25 reaffirms traditional medicine’s strong foothold in the global healthcare sector, echoing the mantra of holistic wellness.

 

Vaibhav Jain, Ayush Expert, Cofounder, Aayush Bharat

The budget’s strategic allocation of Rs 3647 crores to the Ayush Ministry underscores the acknowledgement of the inherent strengths within the Ayush system. It is coupled with a strong emphasis on evidence-based research, demonstrating a pivotal commitment by the Government of India. The 2023-24 budget reflects a strategic move towards integrating Ayush into the National Health ecosystem. The government’s holistic approach, extending to the cultivation of medicinal plants, standardized Ayush ingredients, and global promotion, ensures sustainability and recognition. While commendable, the government must support the private sector, fostering collaborations and democratizing Ayush practices. Allocating funds for awareness and incentivizing private practitioners through digitalization can enhance accessibility and streamline processes. Moreover, focusing on research initiatives is imperative for robust data collection within the Ayush domain.

 

Nitesh Khare, Privacy Professional, Director-Zou Global Services

 

While the interim budget didn’t feature significant announcements for the technology sector, Finance Minister Nirmala Sitharaman’s emphasis on strengthening digital public infrastructure signals the government’s commitment to modernization. Designating it as a ‘factor of production in the 21st century’ underscores the pivotal role of technology in India’s progress. Incorporating deep tech technologies in defense aligns with the vision of self-reliance, and continued efforts to reskill the youth reflect a focus on human capital development. Encouraging the private sector to drive research and innovation with interest-free funds is a strategic move that fosters collaboration. The budget’s provisions create opportunities for leveraging artificial intelligence and advanced data analytics, particularly in expanding electric vehicle ecosystems, agriculture, and healthcare. This forward-looking approach sets the stage for a tech-driven transformation and reinforces India’s commitment to technological advancement.

 

Ankit Shyamsukha, CEO, ICA Edu Skills

 

“It fills me with immense pride to witness the acknowledgement of our pioneering efforts in skill development. Twenty-five years ago, we recognized the critical need for skill enhancement and embarked on a journey that has now become integral to the nation’s development agenda. The recent announcement by Finance Minister Nirmala Sitharaman regarding the Skill India Mission, with 1.4 crore youth trained and upskilled, reaffirms the importance of our collective endeavour. ICA Edu Skills has been an active participant in this mission since its inception, contributing to the upskilling and reskilling of individuals across the country. This moment underscores our commitment to empowering the youth and driving socio-economic progress through education and skill development.”