What do different players from the retail industry ecosystem in the country have to say about about the #ViskitBharatBudget 2024
Even as the ruling government is branding the Budget2024 presented by Finance Minister Nirmala Sitharaman as the ##ViskitBharatBudget, it lacks any big bang announcements. Yet, the budget did have some key announcements regarding infrastructure, women, youth, research & development, and annadata (agri producers).
The total absence of any announcements to boost consumption and individual taxation did stand out.
“As an interim budget, it was anticipated that no significant announcements would be made, and indeed, there were no surprises,” Rahul Mehta, Chief Mentor, Clothing Manufacturers Association of India (CMAI) said.
“Nevertheless, the budget provided essential indicators of the anticipated direction for the July budget, emphasising key areas such as innovation, support for start-ups, sustainable development, job creation, and a dedicated focus on Women Empowerment and Domestic Manufacturing, aligning with the overarching theme of First Develop India,” he added.
Kumar Rajagopalan, Chief executive of Retailers Association of India echoed similar sentiments. “The interim budget is a clear indicator of the strategic direction the main budget might take. Having said that, it does seem to have elements that will foster travel and tourism, which positively impact consumption and hence retail business. We would wait to see what the budget in July unfolds for the industry.”
For FICCI president Anish Shah, the interim budget brings together growth, climate, and social empowerment, while maintaining a careful balance between current investment rate and fiscal discipline.
Here’s what else industry representatives, entrepreneurs and leaders from the retail ecosystem have to say about the various announcements by the FinMin.
Logistics
Davinder Sandhu, co-founder and chairman of business and management consulting firm Primus Partners: Identification of logistics corridors aligned to specific commodity flows is an excellent measure to bring synergy across infrastructure planning and building. This will leverage India’s Gati Shakti platform to lower costs and enhance logistics efficiency
Retail real estate
Anuj Puri, chairman – Anarock Group: As anticipated, the Interim Budget 2024 made no big-bang announcements, but it continued its focus on infrastructure upgrades and building connectivity across the country. This will benefit real estate growth in not just the top cities but in Tier 2 & 3 cities across the country.
Ashwin Sheth, CMD, Ashwin Sheth Group: Maintaining a delicate balance between promoting affordable housing and ensuring sustained growth across all segments is crucial, and will no doubt foster an environment conducive to growth, investment, and the holistic development of the real estate ecosystem.
Anshuman Magazine, Chairman & CEO, India, Southeast Asia, Middle East & Africa, CBRE: Emphasis on developing tourism in the country is an excellent initiative. With this, numerous tier 2 and tier 3 cities will witness economic development which will further help the overall economy. The proposal to address the emerging fervour for domestic tourism with announcements of projects for port connectivity, tourism infrastructure, and amenities will also help in generating employment. Additional emphasis on continued development of airports will drive more opportunities for the sector.
MSME
Umesh Singh, Founder & Director, Tara Candles: As a proud founder in the vibrant landscape of MSMEs and retail, I commend the visionary step of increasing the threshold for presumptive taxation to Rs 3 crore. This policy shift not only empowers small businesses but also fosters a conducive environment for growth. Furthermore, placing a policy priority on providing training for MSMEs underscores a commitment to global competitiveness.
Vidit Aatrey, Founder and CEO, Meesho: Keeping with last year’s emphasis on MSMEs, the government has announced a comprehensive set of measures this year as well. These initiatives are poised to bring substantial benefits to the MSME ecosystem, reinforcing the commitment to foster growth, innovation, and resilience within this vital sector, elevating India’s global standing.
Agriculture & Food
Prashanth Vasan, CEO at Madras Mandi: We appreciate the government’s unwavering support to our ‘Annadata’ through key budgetary initiatives. The direct financial assistance under the PM-Kisan Samman Yojana, and the extensive coverage of crop insurance through PM Fasal Bima Yojana underscore a commitment to the well-being of our 11.8 crore farmers. The integration of 1361 mandis into the Electronic National Agriculture Market, with a trading volume of Rs3 lakh crore, aligns with our mission to modernize agricultural practices and empower 1.8 crore farmers.
Sahaj Chopra, co-founder of Fat Tiger: Clarity around the potential crowding out effects of rising public capital expenditure will be key to assessing implications on private corporate expenditure. If businesses delay spending to watch fiscal deficits, advertising and technology investments by e-commerce firms may take a hit.
Shammi Agarwal, Director of Pansari Group: By incentivizing bio-based industries, the government is not only supporting the development of eco-friendly technologies but is also encouraging businesses to reduce their carbon footprint.
Anubhav Dubey, co-founder Chai Sutta Bar: We are pleased with the tax relief provided to startups and IFSC units up to March 31, 2025. This consistency supports the development of favourable growth and innovation-friendly conditions for the startup ecosystem.
Startups & E-commerce
Amitt Nenwani, founder of Wahter: We welcome the progressive and tech-savvy initiatives outlined in today’s interim Union Budget. The allocation of Rs 1 lakh crore and interest-free loans for our tech-savvy youth signals the dawn of a golden era, fostering innovation and private sector leadership in cutting-edge research.
Kunal Bahl, co-founder, Snapdeal and Titan Capital: The vision of ‘Viksit Bharat 2047’ is built on the strong foundations of decisive governance, inspirational leadership and proven track record of delivering digital, physical, social infrastructure. The emphasis on boosting innovation through the low/no interest 50year loan, expanding capex on infrastructure and adhering to fiscal deficit goals are significant strong points from this Interim Budget.
Dheeraj Bansal, Co-founder Recode Studios: The decision to maintain existing tax rates for both direct and indirect taxes in the retail sector is a welcome move, providing stability and predictability to businesses. This not only creates a favorable atmosphere for new businesses but also stimulates the expansion of essential elements of our economy.
Abhinav R Jain, CFO, AdCounty Media: The budget’s focus on buoying rural consumption by raising agricultural credit limits and PM Kisan payouts can unlock major growth opportunities for e-commerce companies in tier 2/3 regions. More money with rural consumers may drive online purchases of goods beyond just necessities.
Hemang Jain, founder of The Love Co.: Enhanced tax benefits, increased funding, and a deep focus on research and development are fueling entrepreneurial spirits. These measures are seen by startups as pivotal drivers for innovation and expansion, providing the essential financial backing and nurturing environment they need to flourish.
Rishabh Sethia, director, MARS Cosmetics: The budget serves as a strategic guideline for both the retail and startup industries, presenting a dual narrative of obstacles and opportunity. Retailers welcome the GST amendments as a possibility for higher consumer spending, while they navigate customs tariff modifications that may affect their global supply chains. Simultaneously, entrepreneurs are encouraged by longer tax breaks and expanded funding allocations, which align with a larger aim of supporting innovation and growth.
Nidhi Gupta, founder, French Essence: The budget’s regulatory focus on e-commerce is an important step toward building a more equitable and competitive environment for women-led enterprises in both traditional and online retail.
Himanshu Adlakha, co-founder of Winston India: The prospect of monetary support for the Open Network for Digital Commerce (ONDC) program is particularly encouraging. This groundbreaking initiative has the potential to revolutionize the landscape for micro, small, and medium-sized businesses (MSMEs) in the e-retail sector.
Roshan S Bisht, co-founder of co-commerce platform Asort.com: It’s reassuring to see that tax slabs remain unchanged. This stability ensures individuals can plan their finances with confidence.
Sanket S, Founder, Scandalous Foods: We are thrilled with the Union Budget 2024’s focus on vital startup needs which will strengthen industry thought leadership and capture an opportunity for us in the increasingly evolving HoReCa segment. The PM Mudra Yojana’s tremendous support, with 43 crore loans totaling Rs. 22.5 lakh crore truly fuels the entrepreneurial dreams of our youth.
Vikaas Gutgutia, Founder and MD at FNP: The establishment of a Rs 1 lakh crore corpus with interest-free loans reflects a commitment to innovation and research. The emphasis on combining youth and technology is commendable.
Home improvement/houseware
Susanne Pulverer, CEO and CSO (Chief Sustainability Officer), Ikea India: The focus on manufacturing, youth, skilling and women empowerment is truly commendable and will pave the way for a more inclusive growth and economy. The emphasis on making energy security and infrastructure for green mobility accessible and affordable for the many people resonates with Ikea’s sustainability vision. We believe that the government has only furthered the country’s resolve for a Viksit Bharat.
Ravi Saxena, founder, Wonderchef: Home appliances sector will be a direct and indirect beneficiary on many accounts. The plan to solar/power 10 million homes transforms households into net electricity producers, encouraging the adoption of electrical appliances. Promoting domestic tourism and introducing a central rating system will encourage the adoption of quality cookware and appliances to meet the demands and expectations of local and global tourists.
Raghunandan Saraf, Founder and CEO, Saraf Furniture: While no major direct policy incentives were introduced for retail, income tax tweaks can improve sentiment and spending among urban middle-income groups who form the core buying class for branded merchandise.
Tejpal Singh Shekhawat, founder of Kalyanam Furniture: The interim budget speech glaringly missed the opportunity to extend supportive policies specifically around furthering digital infrastructure and online consumer adoption. This remains imperative for deepening e-commerce reach across India’s villages.
Consumption
Ridhima Kansal, director of Rosemoore: Measures aimed at improving women’s participation in the rural workforce are a positive signal. More working women with financial autonomy can contribute significantly to the rise of women shoppers buying online, an important demographic.
Bharadwaj Rachamadugu, senior vice president, Sai Silks Kalamandir: Increasing capital expenditure outlay by 33% is going to be a big boost for the overall growth of the economy, which will have a percolating effect on the income levels, so as the increase in purchasing power. This would go a long way in supporting India’s consumption landscape across middle, low and upper-end income levels, which is positive for retailers.
Gaurav Balani, DGM-Marketing, Infiniti Mall: An increase in the average income of people by 50% over the years is a significant milestone and we expect it to positively impact retail sales, leading to an increase in customer willingness to spend on shopping, recreation and leisure. Further, the presence of a dedicated freight corridor, together with the three economic corridor programmes under the PM Gati Shakti National Master Plan will help us reduce logistic costs and elevate efficiency while serving customers.
Aasif Malbari, CFO, Godrej Consumer Products Limited (GCPL): Continuing the path of fiscal consolidation is a positive sign for overall economic growth, which has the potential to boost consumption patterns in the long run. The focus on enhancing connectivity and infrastructure also bodes well for India Inc. including FMCG sector.
Tech solutions
Varun Tangri, founder of QueueBuster POS: The spotlight on infrastructure and road development marks a pivotal moment for the retail and retail technology industry. With an injection of Rs 11 lakh crore and the PM GatiShakti project, we witness a strategic push for economic corridors, opening doors for three new corridors that will strengthen and expand organised retail in newer cities.
Nitya Sharma, founder, Checkout Network, Simpl: Overall, the Interim Union Budget 2024 has acknowledged the intricacies of the business landscape and outlined a comprehensive framework that resonates with the real challenges and aspirations of businesses in our nation.
Supply Chain & Logistics
Anish Mathew, Chief Financial Officer (CFO), Allcargo Gati Ltd.: In the budget, the government has laid the roadmap for inclusive and sustainable economic growth with a focus on GDP—governance, development, and performance. The thrust on advancing EV infrastructure and driving the energy transition aligns seamlessly with the logistic industry’s goal to minimise operational impact on the environment.
Swapnil Pathak Sharma, Owner of Zighrana, luxury perfume brand: With a substantial number of women-led startups emerging in recent years, the 30 crore Mudra Yojna loans for women entrepreneurs will further encourage and benefit more female individuals to become self-dependent entrepreneurs. The 43% increase in female enrollment in higher education reflects a significant rise in women’s participation in the workforce, serving as a positive indicator of their contribution to the overall economy.
Ashvini Jakhar, Founder and CEO, Prozo: The integration of Direct Benefit Transfer with the National Apprenticeship Promotion Scheme marks a strategic move towards enhancing skill sets, directly benefiting logistics through an upskilled workforce. Additionally, the budget’s historic allocation of over Rs 11 lakh crore towards capital expenditure signifies a strong commitment to long-term growth, and promising infrastructural advancements that are crucial for our sector.
Ratheesh D, Director, CABT Logistics: Logistics gets a shot in the arm with Budget 2024. FM Nirmala Sitharaman’s announcement of three major railway corridors and dedicated economic rail corridors for specific commodities showcases a proactive approach to tackling logistics bottlenecks. These initiatives are poised to significantly reduce logistics costs (currently at 12% of GDP), a major pain point for the industry.
Vishal Jain, co-founder, Roadcast: With airports doubling, and 1,000 aircraft orders, India propels into a new era of efficiency. The unveiled railway corridors, particularly the port connectivity and energy corridors, promise de-congestion, slashing logistics costs and boosting competitiveness.
Darshil Shah, founder of tech solutions firm TreadBinary: The dedication of the scheme for infrastructure and technological development, the India Middle East Europe Economic Corridor, will be a game changer for India, aiding growth in the aspects of trade and global connectivity. The multi-modal connectivity infrastructure, under PM Gati Shakti, will improve the logistics and reduce costs, benefiting the industry.
