The government announced several new measures promoting sustainable energy and electric mobility in the interim budget 2024-25. Two noteworthy announcements were the proposed solarisation of 10 million households through rooftop solar installations, and viability gap funding (VGF) for offshore wind projects with a combined capacity of 1,000 MW. New schemes were also announced for the bioenergy segment. Here is some input for the budget from industry leaders…
Pre Budget Quote from Industry Leaders
Mr. Raman Bhatia, Founder & MD, Servotech Power Systems Ltd.
“The Union Budget 2024 was built on the foundation of Viksit Bharat. A strong focus was put on solar energy. The remarkable achievement of PM Surya Ghar Muft Bijli Yojana with 1.28 crore registrations and 14 lakh applications reflected the growing public awareness and alignment with the government’s vision of a solar-powered India. As a leading solar panel manufacturer, this motivates us to make solar energy more adoptable, affordable, and accessible nationwide. The exemption of customs duty on lithium, a crucial mineral used in the renewable energy sector, will reduce costs, making lithium-based technologies more affordable. The pumped storage policy which includes pumped storage projects for electricity storage will facilitate the smooth integration of the growing share of renewable energy into the overall energy mix, paving the way for a sustainable energy future. Imposing customs duty on the import of solar glass for solar cell and module production will promote domestic manufacturing and boost the economy. The increase of BCD on non-biodegradable PVC flex banners from 10% to 25% is a commendable step towards environmental conservation. Power projects including setting up of a new 2400 MW power plant at Pirpainti, Bihar will add Bihar in the category of solar powered states, overall enhance the power quotient, add to the existing power capacity and create jobs. Overall, the budget highlighted the remarkable changes that will contribute to the development of a nation we all envisioned.” By Mr. Raman Bhatia, Founder & MD, Servotech Power Systems Ltd.
Dr Abhilasha Gaur, CEO, Electronics Sector Skills Council Of India (ESSCI)
The FY 2024-25 budget emphasizes continuity and forward-looking initiatives to bolster India’s growth. By focusing on employment, skilling, inclusiveness, infrastructure, innovation, and reforms, it addresses current challenges and lays the groundwork for a knowledge-based economy. Women’s workforce participation is vital for sustained growth, and creating a supportive and culturally aligned ecosystem is essential.
The budget’s commitment to skilling 20 lakh youth over five years highlights the government’s dedication to nurturing young talent. Initiatives like providing internships to 1 crore youth in top companies, with financial support, bridge the gap between education and employment.
The revision of the model skill loan scheme to facilitate loans up to ₹7.5 lakh, guaranteed by a government-promoted fund, will enable more students to access quality education and skill development programs, enhancing their employability and contributing to the country’s economic growth. The proposed three schemes to encourage employment for new candidates will boost the country’s employment scenario. The wage subsidy for employees and support for employers will motivate them to hire fresh candidates, and linking these to EPFO registration will help formalize jobs.
At ESSCI, we are ready to support these initiatives and contribute to the nation’s progress. We align our efforts with the government’s vision to drive economic growth, social justice, and sustainable development.
Mr Gyanesh Chaudhary, CMD, Vikram Solar Limited
“The Union Budget 2024 has positioned India as a frontrunner in the global solar energy landscape. By allocating a substantial Rs. 7,327 crore for solar projects and introducing initiatives like the PM Surya Ghar Muft Bijli Yojana, which aims to provide free electricity to one crore households, the government has demonstrated a strong commitment to clean energy. This budget is a catalyst for the growth of the Indian solar industry, empowering millions of households with access to affordable and clean electricity. Moreover, by supporting ancillary sectors like pump storage and creating a conducive environment for innovation through tax incentives for solar cell and panel manufacturing, the budget has laid a robust foundation for India’s energy transition.”
Mr. Sanjay Dighe, CEO & Director of Krystal Integrated Service Ltd
The Union Budget 2024 presented by the Finance Minister demonstrates a comprehensive and forward-thinking approach, significantly impacting various sectors.
The government’s partnership with State Governments and Multilateral Development Banks to promote water supply, sewage treatment, and solid waste management projects in 100 large cities will fuel the demand for facility management services. These projects will require specialized skills and expertise in managing complex systems and infrastructure, aligning perfectly with the goals of skilling and employment outlined in the budget.
Moreover, the focus on industrial development, particularly the establishment of an industrial node in Gaya as part of the Amritsar-Kolkata industrial corridor, will drive the need for comprehensive facility management solutions to support the burgeoning industrial activities. This will not only involve managing and maintaining industrial facilities but also ensuring compliance with environmental and safety standards.
We are particularly optimistic about the focus on creating employment opportunities. The one-time wage incentive for first-time employees through DBT and the internship program launching in 500 companies for one crore youth over five years are commendable initiatives. Additionally, clarity on tax exemptions for services provided to government entities would be highly beneficial.
Overall, the strategic priorities set forth in the Union Budget will create a robust demand for facility management services, as the industry will play a critical role in supporting the growth and sustainability of India’s economic infrastructure.
Vinkesh Gulati, Vice President of ASDC
“The Union Budget 2024 marks a pivotal moment for youth empowerment with its extensive initiatives. The introduction of internships for one crore youth, along with a monthly allowance and one-time assistance, offers invaluable experience and support. The revised model skill loan scheme, providing loans up to ₹7.5 lakh with government guarantees, will aid 25,000 students annually in acquiring advanced skills.
Additionally, the new employment schemes, including one month’s salary support for first-time employees and ₹3,000 per month for employers for each new hire over two years, will provide significant financial incentives. The upgrade of 1,000 ITIs will further enhance vocational training. At ASDC, we are enthusiastic about these developments and are committed to integrating these measures into our training programs, ensuring they meet industry needs and support long-term career growth for our youth.”
Dr. A. Sakthivel , Chairman, AMHSSC
At the Apparel, Made-Ups & Home Furnishing Sector Skill Council, we are not We commend the Government of India for the remarkable steps taken in the Modi 3.0 administration’s first budget, prioritising employment and skilling, social justice, and manufacturing. This forward-thinking budget demonstrates a robust commitment to inclusive development, especially for our youth, women, and farmers.The particular consideration given to promoting employment and skilling underscores the Government’s dedication to nurturing the potential of our young generation. The ambitious plan to skill 20 lakh youth over the next five years is a testament to this commitment, equipping them with the skills needed to thrive in a dynamic and evolving economy.
Additionally, the focus on skilling programs for women and introducing new initiatives to enhance their economic participation is a remarkable step towards gender equality and economic empowerment.
One of the standout initiatives is the scheme to provide one crore youth with internship opportunities in 500 top companies. This initiative, with an internship allowance of Rs 5000 per month and a one-time assistance of Rs 6000, will provide our young talent with valuable hands-on experience and bridge the gap between education and employment, offering them financial support during their learning phase.
Furthermore, the Government’s employment-linked incentives initiative aims to promote job creation within the manufacturing sector. The scheme, designed to encourage the employment of first-time employees, will offer incentives related to EPFO contributions for the initial four years of their employment. This initiative will benefit 30 lakh young individuals and generate supplementary job opportunities across various sectors. Employers stand to receive reimbursement of up to Rs 3,000 per month over two years for EPFO contributions towards each newly hired employee. The overarching goal of this program is to drive the recruitment of an additional 50 lakh individuals, fostering economic growth and employment prospects. Additionally, it aims to promote white-collar jobs in the formal sector, significantly contributing to job creation in the manufacturing sector.
Just excited but also fully prepared to support these initiatives and contribute to the nation’s progress. We are committed to aligning our efforts with the Government’s vision and ensuring that our sector continues to play a vital role in driving economic growth, social justice, and sustainable development. This commitment instils confidence in our collective ability to achieve these goals. The introduction of a taxonomy for climate finance is a commendable step. This classification system will help streamline investments in sustainable projects, provide clear guidelines for stakeholders, and ensure that funds are directed towards initiatives with a positive environmental impact. By promoting green finance, this taxonomy will contribute to our efforts to combat climate change, enhance resource efficiency, and build a more resilient economy. Together, we can build a future where every individual has the opportunity to realize their potential, contributing to a prosperous and inclusive India.
Mr. Gopal Kabra-Founder & MD- GK Energy
“The budget can be termed as progressive aimed at bolstering the solar sector’s growth and sustainability and we welcome the budget proposals. The government’s commitment to increasing investment in renewable energy was evident through significant allocations for solar infrastructure development, and energy storage solutions. Notably, the custom duty exemption on capital goods for solar cells and panels stands out as a pivotal move. This exemption is expected to lower production costs, making solar energy more affordable and accessible. More than 1.3 Cr registrations and more than 14 lakhs applications under PM Suryaghar initiative is poised to accelerate rooftop solar installations, enhancing energy security and supporting the energy transition. Additionally, the establishment of a carbon market will incentivize reduced emissions, aligning with India’s climate goals. These initiatives collectively reflect a forward-looking vision for a sustainable and self-reliant solar ecosystem in India.”
Mr. Gaurav Jalan, Founder & CEO, mPokket
“Following from the Interim Budget earlier this year and the challenges of the economy in the recent past, the upcoming full budget is expected to focus on employment, infrastructure and innovation. We expect the government to double down on initiatives relating to upskilling of youth to improve employability. Alongside this, increasing jobs is expected to be the core government agenda. We expect this to be through a dual approach of easing credit access to small and medium businesses to catalyse their growth and through incentives on research and investments from the private sector. We expect the government to also focus on the disposable income of the middle class by revisiting direct taxation rates. This shall drive a sustained domestic consumption-led growth for the economy. Additionally, we believe the government shall continue to view positively the contribution of fintechs as a key driver of easy access to credit and their potential to create employment. We therefore expect a favourable approach to investments in the sector and clarity on the open regulatory discussions to propel India towards becoming a global fintech hub.”
Mr. N.P Ramesh, COO and Co-Founder of Orb Energy
“As we approach the Union Budget, the solar industry eagerly anticipates pivotal measures to accelerate India’s renewable energy goals. Key priorities include enhancing residential solar adoption with proposed personal income tax benefits up to 3 lakhs. This can be considered instead of current subsidy of Rs.78,000. For commercial and industrial (C&I) sectors, increasing depreciation benefits to 60-80% from the current 40% will incentivize substantial investments in solar installations, bolstering sustainability efforts across businesses.
The removal of anti-dumping duties on raw materials for solar modules is crucial to enhancing manufacturing competitiveness and reducing dependency on imports. Additionally, a proposed 7-year tax holiday for investments in PV module or solar cell production will stimulate domestic manufacturing capabilities, fostering job creation and economic growth.
These strategic measures not only strengthen India’s position in renewable energy but also pave the way for a sustainable and resilient energy future. They underscore our commitment to innovation and sustainability, ensuring a greener and more prosperous tomorrow for all.”
Post Budget Input from Industry Leaders
Nirmit Parikh, CEO & founder, apna.co,
“The Union Budget FY2024-25 underscores job creation as a critical priority, mirroring our shared focus on skilling and employment. The substantial Rs. 1.48 lakh crore allocation for education, employment, and skill development marks a significant stride forward. Introducing five schemes aimed at skilling over 40 million youth within five years, backed by an outlay of Rs. 2 lakh crore, is a monumental step toward shaping a skilled and future-ready workforce.
Moreover, the initiative to establish working women hostels and crèches in collaboration with the industry is a progressive move that will enhance workforce participation among women and promote gender equity. The partnerships for women-centric skills programs and the provision of market access for female SHG businesses are especially commendable, empowering women to play a more significant role in our economy. The three employment-linked incentive schemes, which support first-time job seekers, job creation in manufacturing, and employee support, are poised to drive significant employment growth.
Additionally, the emphasis on accelerating the growth of the rural economy, supporting MSMEs, and promoting tourism will further amplify employment opportunities across diverse sectors. This comprehensive approach reflects a visionary strategy to build a robust, inclusive, and dynamic economy that benefits all.”
Dr. Jaskiran Arora, Dean- Education Quality, BML Munjal University
“The budget marks a pivotal moment for India’s education sector, reflecting a robust commitment to enhancing opportunities for the youth. The allocation of Rs. 1.48 lakh crore for education, employment, and skilling underscores a strategic shift towards holistic development. The introduction of financial support for loans up to ₹10 lakhs for higher education, particularly for those excluded from existing government schemes, is a game-changer. The e-vouchers offering a 3% annual interest subvention for one lakh students will make higher education more accessible and affordable, potentially transforming countless futures.
The proposal to open working women hostels in collaboration with industry underscores a strong commitment to supporting female workforce participation and creating a more inclusive environment for women.
The budget’s focus on upskilling, with a revised Model Skilling Loan scheme and the upgrading of 1,000 industrial training institutes, reflects a clear intent to enhance employability. By aiming to skill 20 lakh youth over the next five years, this budget sets the stage for a more skilled, competitive workforce, ultimately driving economic growth and innovation”
Mr. Prassann Daphal, CEO, Recyclekaro
“The government’s announcement of a 25% waiver on customs duty for nearly 25 critical minerals is poised to drive demand across various renewable sectors, including energy storage solutions, electric vehicles (EVs), high-tech electronics, defense, and space. This initiative will bolster the refining and processing of these minerals, strengthening a resilient supply chain ecosystem.
Additionally, the establishment of a ‘Critical Mineral Mission’ aims to oversee domestic production, recycling, and international acquisition of critical mineral assets. The mission will prioritize technology development, skilled labor, and an expanded producer responsibility framework, including Extended Producer Responsibility (EPR), which will benefit the e-waste and battery recycling sectors.
This well-planned budget reflects a strong commitment to supporting the critical minerals sector, which is crucial for advancing greener transformations.”
By Mr. Manikanth Challa, Founder & CEO, Workruit
“The Union Budget 2024-25 marks a significant advancement in the government’s approach to employment and skill development. With Rs 1.48 lakh crore allocated for education, employment, and skilling initiatives, the government is clearly committed to empowering the youth and enhancing their employability.
One of the standout announcements is the launch of a scheme to provide internship opportunities to 1 crore youth, including placements in Fortune 500 companies. This initiative offers invaluable industry exposure and practical experience, significantly boosting the employability of our young professionals.
The introduction of the three Employment-linked incentive schemes is a substantial improvement over last year’s broader initiatives. Scheme A’s Direct Benefit Transfer of 1-month salary up to Rs 15,000 for first-time employees registered in EPFO provides immediate financial support. Scheme B, which incentivizes job creation in manufacturing, offers direct benefits to both employees and employers, fostering industrial growth. Scheme C’s support to employers, with reimbursements up to Rs 3,000 per month for EPFO contributions for each additional employee, is a strong incentive for workforce expansion.
Upgrading 1,000 industry training institutes in a Hub and Spoke arrangement will bridge the skill gap and prepare youth for future jobs. The emphasis on women-led development and AI-driven upskilling for women highlights a commitment to gender equality and inclusive growth.
At Workruit, we are excited about these progressive measures and look forward to leveraging them to revolutionize India’s recruitment landscape through AI and digital tools.”
Mr. Madhavan Menon, Executive Chairman, Thomas Cook (India) Limited (Thomas Cook, SOTC, Sterling Holidays and TCI)
This year’s Union Budget has opened new doors to development, specifically for domestic and inbound tourism. With the focus on special development funds/ programs for the socio-cultural-religious potential of iconic temple corridors including Gaya’s Vishnupad & Mahabodhi temples into world-class pilgrim and tourist destinations (to be modelled on the success of the Kashi Vishwanath temple corridor), the Government of India’s intent is encouraging. Additionally, the comprehensive development of the Rajgir Jain Temple site; rejuvenation of the historical gem of Nalanda & Nalanda University into a major religious-tourist centre, would have a multi-pronged impact. While positioning India as a vibrant global tourism destination, it will also accelerate job creation and economic opportunities for allied sectors.
The Budget also appreciated the underleveraged potential of Odisha’s tourism industry by supporting the state’s rich heritage-history, spirituality, craftsmanship and natural beauty.
Recognizing the high potential domestic cruise segment, the Union Budget announcement proposed a simpler tax regime to support/incentivize foreign cruise companies operating in India’s waters.
We’re optimistic about the significant allocation of INR 11.11 lakh crore (constituting 3.4% of India’s GDP) towards infrastructure development. The development of road, rail, air, and waterways will ensure a boost to access/connectivity and affordability, and force multiplier benefits for tourism and allied sectors.
When introduced, TCS was considered disadvantageous to salaried employees as their cash flows were negatively impacted. Post the Budget announcement, salaried employees can now avail of immediate credit of TCS paid on account of their foreign travel – against TDS on salary, enhancing the purchasing power of Indian consumers.
The discontinued SEIS scheme should have been reinstated, as this is meaningful towards encouraging inbound tourism, foreign exchange receipts and a force multiplier for employment generation.
We are disappointed to note that key pillars in India’s Tourism agenda – Aviation & Hospitality were not mentioned as part of the Budget and both standardisation of GST rates on hotel tariffs to 12% and the reduction of ATF remained unaddressed.
Mr. Srinivasa Addepalli,Founder and CEO, GlobalGyan Leadership Academy
“The Budget 2024-25 prominently highlights employment and upskilling as key priorities, emphasizing their role in driving economic growth. A standout initiative is the plan to provide corporate internships to one crore youth to bridge the gap between academia and industry. This move is expected to enhance practical experience and employability significantly. Additionally, the budget’s focus on skilling 20 lakh youth over the next five years through centrally sponsored schemes and upgrading 1,000 training institutes represents a major advancement. These measures are set to empower India’s youth with the necessary skills needed to thrive in the global economy, fostering both immediate and long-term economic benefits.”
Mr. Sanchit Sekhwal Goyal, Director, Su-Kam Power Systems Limited
“SuKam welcomes the Ministry of Finance’s decision to fully exempt the custom duty on critical minerals which will reduce the price of lithium-ion batteries and consequently making electric vehicles more affordable. The Finance Minister’s emphasis on expanding the electric vehicles ecosystem through increased usage in public transport network, is a forward-looking move. By championing these initiatives, the government reaffirms its commitment to climate control. EVs contribute significantly to reducing greenhouse gas emissions, and their widespread adoption aligns with global efforts to combat climate change. It’s heartening to see this focus on both affordability and environmental responsibility.”
Dr. Miniya Chatterji, Founding Director, Anant School for Climate Action, and CEO, Sustain Labs Paris
“The government has laid its focus on energy security as one of the pillars in the Union Budget 2024. The new policy document on India’s energy future is much awaited, and I expect it to include the plans to achieve rooftop solarisation, enhancing electric vehicle infrastructure, and promoting biodegradable polymers & bioplastics – as was announced in the interim budget in February. I also look forward to the government’s focus on developing indigenous energy technologies and building local capabilities amongst micro and small industries in energy production and management. On that note, the provision of financial support to micro and small industries for shifting to cleaner forms of energy is also a commendable move by the government. Another good move is the exemption of custom duty on capital goods for manufacturing of solar cells and panels. A taxonomy for climate finance, as planned by the government, will help improve the availability of funds for adapting to climate change and reduce greenhouse gas emissions.
Under urban development, the budget also talks about promoting water supply, sewage treatment and solid waste management projects and services for 100 large cities in India. This will set a benchmark for water and waste management practices which can then expand to tier-2 and tier-3 cities eventually.”
