Textile majors, startups & MSMEs hail India Budget's progressive steps

K K Lalpuria, CEO and executive director of Indo Count Industries Ltd, said, “The Union Budget 2024 is a progressive step towards fostering economic growth and enhancing the competitiveness of Indian industries. The reduction of the corporate tax rate for foreign companies to 35 per cent and the simplification of FDI rules are commendable measures that will attract more foreign investments, benefitting sectors across the board. For the textile industry, the focus on MSMEs and the emphasis on employment and skilling are particularly noteworthy. The initiatives for job creation, skilling programmes, and financial support for MSMEs will significantly bolster the textile sector, enabling us to scale up operations, enhance productivity, and remain globally competitive. Overall, this budget lays a foundation for sustainable growth and innovation, and we look forward to leveraging these opportunities to drive further advancements in the textile sector.”

Pallav Bihani, Founder of Boldfit, commented, “The removal of the angel tax is a huge relief and will make it easier for startups to get early-stage investments. Cutting the Long-Term Capital Gains (LTCG) Tax on unlisted equity to 12.5 per cent is a big win. These changes will boost funding in the startup ecosystem, sparking more innovation and growth. By making investments in startups more attractive, the government is setting the stage for a more dynamic and thriving entrepreneurial scene. This budget is a positive step forward, and it will significantly contribute to the overall economic growth of the country.”

Amar Nagaram, founder and CEO of Virgio, said: “The Finance Minister's budget theme, with its emphasis on Employment, Skilling, and MSMEs, showcases a forward-thinking approach that is well-suited to the evolving needs of the Manufacturing and D2C industries. This budget, aligned with the Viksit Bharat vision during the Amrit Kaal, introduces several key incentives aimed at boosting job creation and enhancing workforce skills.

“The special focus on MSMEs will provide critical support for innovation and expansion, facilitating growth across various sectors. Importantly, the abolishment of the Angel Tax will play a pivotal role in supporting startups, easing fundraising, and encouraging more investment in innovative businesses. Overall, this growth-oriented budget represents a significant step toward creating a more inclusive and dynamic economy, fostering opportunities for businesses and entrepreneurs alike.”

Ankit Jaipuria, co-founder of Zyod, said, “The budget offers a significant opportunity for manufacturing, innovation, and upskilling talent. With a major push to manufacturing-led companies and initiatives to upskill over 2 million youth in the next five years, we expect a major increase in job creation in this sector. The abolition of the angel tax is another positive development towards fostering a robust startup ecosystem that encourages more private investment. Additionally, simplifying the FDI rules will further attract more investment, and facilitate smoother trade, thereby strengthening the economy and enhancing India's position in global trade.”

“The focus on manufacturing and MSMEs in this year's budget is a welcome development,” said Ritesh Khandelwal, co-founder of Zyod. “The Prime Minister’s package of 5 schemes, especially the ‘job creation in manufacturing’ and ‘Credit Guarantee Scheme for MSMEs in the manufacturing sector’, promises significant growth for the sector. The increased MUDRA loan limit from ₹10 lakh to ₹20 lakh (~$1.19 lakh to $2.38 lakh) and the revised TReDS onboarding threshold will significantly benefit MSMEs. Additionally, credit guarantee schemes and mechanisms for facilitating bank credit during stress periods are crucial steps forward. These measures will provide much-needed support, ensuring business continuity and fostering long-term growth. Notably, the ability to secure collateral-free term loans for machinery and equipment empowers MSMEs to invest in innovation and expansion. We are confident these initiatives will contribute significantly to the resurgence of the manufacturing sector.”

“The budget announcements around Employment and Skilling initiatives (along with Internship opportunities) will bring a ready pool of candidates. Retail sector is more dependent on how matters get handled from a governance perspective (ease of doing business etc). It is more about execution than about budgeting,” commented Ankur Bhatia, CEO, Columbia Sportswear.

“For the Outdoors sector, flood management in Himachal and Uttarakhand will promote year-around trekking activities without the fear of landslides. Focus on tourism in states like Odisha will open newer avenues for those willing to go in hitherto unexplored areas. Climate finance will, over a long term, leave a more liveable world for the next generation,” added Bhatia.

N Chandran, chairman, Eastman Exports, commented: “The Budget priorities such as employment and skilling, social justice and manufacturing are a step in the right direction to in pursuit of Viksit Bharat 2047 and the government has rightly renewed its focus on the focus on 4 major pillars: Poor, Women, Youth and Farmer.

“I genuinely think the Budget holds great promise in terms of addressing the labour and skill shortage, which is the need of the hour for labour intensive sector like textiles. Further, the announcement of a ₹3 lakh crore (~$3,584 ) corpus for women-centric schemes will increase their participation in the workforce. The plans to set up hostels for them and establishing crèche facilities are key to particularly encourage unskilled and semi-skilled women including women to remain in the workforce, thus fostering a more inclusive and productive economy.”

“I welcome the government’s focus on boosting employment and skilling. Internships with top corporates, focus on increasing women’s participation in the workforce, enhanced skilling and student loans, upgrading training institutes, incentives on EPF enrolment, boosting employment in the manufacturing sector and supporting MSMSEs through enhanced credit access are key building blocks to deliver on this,” stated Rohit Bansal, chairman, FICCI Startup Committee and co-founder - Titan Capital & Snapdeal. “As one of the fastest-growing economies with one of the youngest populations in the world, India has a unique opportunity. The Budget 2024 has both the big picture and the specific initiatives to propel India ahead.”

Kunal Bahl, chairman, CII National Start-up Council and co-founder - Titan Capital & Snapdeal said, “The budget 2024 brings cheer to India’s fast-growing start-up ecosystem. The abolition of angel tax removes friction and ambiguity in the fund-raising process by start-ups. The reduction in TDS to 0.1 per cent for e-commerce operators will free up working capital. MSMEs are India’s growth engine - collateral-free loans, guarantee arrangement up to ₹100 crore (~$11.9475 million), SIDBI branches in MSMEs clusters are a boost for them. Internships in India’s top corporates is a great move to connect promising candidates with deserving opportunities.”

Fibre2Fashion News Desk (KUL)