Priyanka Bhargav, Senior Director, Flipkart: “budget's commitment to enhancing domestic manufacturing and supporting rural consumption positions is very encouraging”
In my opinion a no negative budget is a positive budget in itself. Union Budget 2024-25 presents a balanced approach that is likely to enhance consumer spending and support India’s growth strategy. The increase in the standard deduction from ₹50,000 to ₹75,000 Income Tax exemption upto Rs 12L of income will provide more disposable income, potentially boosting consumer spending by approximately 10-15% in the retail sector.
The budget allocates ₹2 lakh crore for job creation aimed at 4.1 crore youth over five years, which aligns with our focus on catering to a younger demographic – This is a welcome step for the 100Mn Gen Z population that is employable. Additionally, the emphasis on rural infrastructure development with a provision of ₹2.66 lakh crore can significantly enhance access to e-commerce in underserved areas. Overall, the budget's commitment to enhancing domestic manufacturing and supporting rural consumption positions is very encouraging.
Poor, Women, Yuva & Farmers to Receive Benefits
The future of a country and society is assessed by how empowered the women of the country are. The Union Budget signals the government's commitment towards the enhanced role of women in economic development. I have read that more than 3 Lakh crore is allocated for schemes benefitting women and girls. Working women hostels to be set up in collaboration with industry.
The budget focuses on ‘Garib’ (Poor), ‘Mahilayen’ (Women), ‘Yuva’ (GenZ) and ‘Annadata’ (Farmer).
The Union Minister informed that the Government will facilitate higher participation of women in the workforce through setting up of working women hostels in collaboration with industry, and establishing creches. In addition, the partnership will seek to organize women-specific skilling programmes, and promotion of market access for women SHG enterprises. With specific focus on MSMEs again I feel the women cohort will benefit meaningfully.
Budget Provides Significant Opportunity to MSMEs
The Union Budget brings significant opportunities for all the sectors in India. A key highlight is the reduction in the Tax Deducted at Source (TDS) rate. This change will free up substantial working capital for sellers, particularly benefiting micro, small, and medium enterprises (MSMEs). In fact, all of the benefits mentioned in point #2 will help here.
Another transformative initiative is the establishment of dedicated export hubs. These hubs aim to streamline logistics and regulatory processes, including customs clearance and warehousing, to boost India's exports. This move is expected to create jobs, enhance global market access for Indian businesses, and position India as a key player.
(Disclaimer: The above is personal opinion of the author and does not reflect Organisation's point of view.)
