The Budget has increased the Basic Customs Duties on ammonium nitrate from 7.5 to 10 per cent
The Union Minister for Finance and Corporate Affairs, Nirmala Sitharaman along with the Ministers of State for Finance, Pankaj Chaudhary as well as her Budget Team/senior officials of the Ministry of Finance arrived at the Parliament House to present the first Union Budget 2024-25 of Modi 3.0, in New Delhi on July 23, 2024.
Union Finance Minister on Tuesday, unveiled nine priorities of the Union Budget for 2024-25. She listed agriculture, employment, human development, energy security, manufacturing, innovation, infrastructure and next generation reforms. With a significant allocation of Rs. 11.11 lakh crore towards capital expenditure for FY 2024-25, the government is paving the way for robust infrastructure development and sustainable economic growth in India.
The Budget proposals for Customs Duties intend to support domestic manufacturing, deepen local value addition, promote export competitiveness, and simplify taxation, while keeping the interest of the general public and consumers surmount, said Union Minister of Finance and Corporate Affairs Nirmala Sitharman in her Budget speech in Parliament today. New Customs Duty rates are proposed for commodities from life-saving medicines to rare earth minerals. The Budget has increased the Basic Customs Duties on ammonium nitrate from 7.5 to 10 per cent. The duty on PVC flex banners increased from 10 to 25 per cent.
Rajesh Aggarwal, Vice Chairman, Crop Care Federation of India (CCFI)
"The Union Budget 2024-2025's significant allocation of Rs 1.52 lac Crores for the agricultural sector is a turning point for Indian agriculture. By focusing on productivity and resilience, this budget promises to transform the lives of farmers and boost the overall economy.
The role of private sector in agricultural R&D would be of paramount importance for introducing high-yielding and climate-resilient crop varieties. Already our member have invested heavily in research under Indian climatic conditions to develop newer technologies. This would strengthen farmers with tools to combat climate challenges, ensuring stable and improved yields. Ensuring economic stability for farmers would result in more investment for better farming practices and faster adoption. The focus on enhancing the supply chain infrastructure, including storage and transportation, will minimise post-harvest losses and improve market access
Agrochemicals, now a champion sector would ensure quality inputs to not only meet domestic demand but cater to exports to over 152 countries without any rejections.
Our proposal for including agrochemicals under Production Linked Incentive (PLI) is in decisive stage which will not only bring in huge investment from indigenous manufacturers but also ensure making us self-reliant, curtail unnecessary imports and become an export surplus destination.
Furthermore, the budget's inclusive growth strategy, targeting women who have critical role in field operations & also as drone Didi’s, skilled youth as prime future drivers and the economically disadvantaged, align well with our vision of a prosperous and equitable agricultural sector.”
Dr. K. C. Ravi, Chief Sustainability Officer, Syngenta India and Chairman, Crop Life India
“The Seventh Union Budget of the Finance Minister is a refreshingly no-frill budget that addresses the present realities and challenges of the agriculture sector. The announcement of releasing 109 high-yielding and climate-resilient varieties of 32 field and horticultural crops for cultivation marks a significant step forward in advancing agriculture. Collaborative research of public institutions with the private sector for development of newer climate resilient varieties and farm practices for the various agro-climatic zones in the country would help farmers navigate and manage the emerging challenges in coming years.
The Modi 3-0 government continues the emphasis on technology and digital advancements. The digital crop survey for Kharif in 400 districts is another important announcement and will strengthen the digital public infrastructure for agriculture. It will enhance transparency, empower farmers by providing them alternatives, and create more opportunities. We welcome the Government’s commitment to comprehensively review the Agricultural Research Setup, highlighting the need to raise productivity and develop climate-resilient varieties. As a company dedicated to high-end R&D, we believe this will strengthen India’s capacity to deliver solutions tailored to our diverse agro-climatic zones, benefiting a large number of farmers.
Strategy to bring “atmanirbartha” in oil seeds like mustard, groundnut, sesame and sunflower is a welcome move and would not only conserve precious foreign exchange but also unleash the potential of domestic production. The private sector can play a major role in this effort.
The agrochemical sector was also expecting schemes such as production linked incentive (PLI) scheme, income tax benefit of 200 percent weighted deduction on R & D and the rationalization of GST rates at par with other agri inputs.”
Vikram Handa, Managing Director, Epsilon Group
“Overall the Union Budget presents positive measures for various industries. For the battery sector specifically, the government’s proposal to fully exempt customs duty on critical minerals like Lithium and Nickel would definitely benefit industries in the electric vehicle (EV) battery supply chain in the short term. However, more needs to be done to develop cathode and anode manufacturing factories in India to develop the EV ecosystem.
Towards developing the EV ecosystem, the Indian government has been facilitating bilateral talks with many countries for acquisition of critical minerals mines for the last 2-3 years.
It is imperative to focus on the end users for critical minerals which are not battery factories but processing companies manufacturing anode, cathode and electrolyte. These companies need to be incentivized so they can further invest in domestic and foreign critical mineral assets.”
S. K. Chaudhary, Founder Director, Safex Chemicals Ltd.
The Union Budget is quite progressive for the agriculture sector. The abolition of the angel tax is a visionary step that will significantly empower startups, catalyzing innovation and growth within the agricultural sector. This, along with the comprehensive review of agricultural research, announces a new era of productivity and climate resilience. The introduction of the National Cooperation Policy promises a structured and inclusive development of the cooperative sector, which is crucial for the collective progress of our farming communities. The release of 109 new high-yielding and climate-resilient crop varieties is a testament to the government’s foresight in fortifying our food security amidst changing climatic conditions. The push towards Atmanirbharta in oilseed production reflects a strategic move towards self-reliance and a reduced import burden. We are also inspired by the government’s commitment to natural farming, with plans to initiate 1 crore farmers into this practice and establish 10,000 bio-input resource centers. The establishment of a Digital Public Infrastructure for agriculture will revolutionize the way we approach farming, with digital crop surveys and the issuance of Kisan Credit Cards under the Jan Samarth initiative paving the way for a tech-enabled agricultural landscape.”
Vimal Kumar Alawadi, Managing Director, Best Agrolife Ltd.
“The Hon’ble Finance Minister must be congratulated for the Budget’s compassionate vision with its focus on the poor, women, youth and farmers. Since climate change has been impacting agricultural output, it requires a sustained emphasis to shift Indian farming from its reliance on rains to an irrigation-led ecosystem. Accordingly, the FM mentioned that the Budget’s key priorities include productivity and resilience in agriculture. With this in mind, the decision to opt for a comprehensive review of India’s agricultural research setup to create climate-resilient varieties and boost productivity will benefit domestic food security. Plans to release 109 new high-yielding, climate-resilient seeds for 32 field/horticulture crops are also commendable, as is the move to promote increased production via large-scale vegetable production clusters as well as the use of treated water for irrigation.
The move to initiate 10 million farmers into natural farming over two years is also welcome, although one should not overlook the key role of reliable agrochemical products in safeguarding crops to boost productivity. Other beneficial measures include the proposed partnership between the Centre and the states to advance digital public infrastructure for agriculture; strengthening the production, storage and marketing of pulses and providing finance for shrimp farming/marketing, among others. However, one was hoping for a higher capex allocation that would have been an increase on the interim Budget outlay of Rs11.11 lakh crore, which equates to 3.4% of the GDP. Here, the FM chooses to maintain the status quo. Nevertheless, the overall measures announced should give a fillip to the agriculture industry and allied segments.”
S. Sunil Kumar, Country President, Henkel India
“The Union Budget offers a strategic roadmap to consolidate India's economic gains and propel it towards new heights. It has identified several key growth catalysts such as Manufacturing & Services, Employment & Skilling, Infrastructure Development, Innovation, and Research. Collectively, these will advance the nation towards a ‘Vikshit Bharat’, reflecting a commitment to sustainable and inclusive growth through targeted investments and strategic development.
With a significant allocation of Rs. 11.11 lakh crore towards capital expenditure for FY 2024-25, the government is paving the way for robust infrastructure development and sustainable economic growth in India. Over the next five years, the focus on large-scale projects has the potential to transform the economic landscape, reduce logistical costs, and improve the efficiency of transportation networks. It is also promising to see the government taking measures to boost job creation in the manufacturing sector, a key contributor to the country’s GDP.
The government has earmarked over Rs 3 lakh crore for schemes benefiting women and girls and boosting their participation in the workforce. It is a welcome development that will unlock productivity, promote social equity, and enhance India Inc's journey towards a more diverse and inclusive workplace. By leveraging the full potential of all talent, including women, industries can build a more robust and capable workforce.
Overall, the Union Budget 2024 outlines pathways to enhance India's long-term economic resilience and competitiveness, and to position it as a global economic powerhouse.”
Balram Singh Yadav, Managing Director, Godrej Agrovet
“In its quest for ‘Viksit Bharat’, the proposals in today’s budget take care of both supply and input sides of Indian agriculture. While it is encouraging to see the government's heightened focus on enhancing productivity and making Indian agriculture future resilient, with the ever-evolving climatic conditions in the world we live in, increased focus on research and development and introducing climate-resilient seeds is a step in the right direction. Additionally, strengthening the vegetable supply chain by leveraging the entire value-chain of the industry should help the country refine its vegetable eco-system and catapult the rural economy and employment. That said, increased digital penetration and enabling access to credit – both through Jan Samarth based Kisan Credit Cards and for Shrimp farmers, should aid the sector as a whole.”
Raju Kapoor, Director, Industry & Public Affairs, FMC India
"The government has presented a forward-looking and growth-oriented budget that rightly prioritizes the transformation of Indian agriculture. The comprehensive review of agricultural research focusing on productivity and climate resilience is a much-needed step. We are also encouraged by the government's commitment to involve the private sector and domain experts to further enhance this endeavor, fostering a collaborative approach towards agricultural innovation and building a larger innovation ecosystem.
The introduction of 109 new high-yielding and climate-resilient varieties of 32 field and horticultural crops further showcases the government's dedication to providing farmers with the support they need to thrive in the changing environment. Similar efforts are needed to expedite availability of modern agricultural inputs to enhance productivity. The digital public infrastructure for agriculture in partnership with States, integrating 6 crore farmers and their land into a digital registry will increase transparency and also democratize access to digital services. This will last lay a strong foundation for precision agriculture. The government’s vision of developing vegetable production closer to consumption centers and promoting FPOs, cooperatives, and startups for efficient supply chains is likely to benefit both farmers and consumers. It is encouraging to see the government’s increased focus on ease of doing business with Jan Vishwas bill 2.0 which will strengthen FDI in agriculture and also help in modernizing the agriculture sector with technology and R&D. Further decriminalisation of minor offences may be ensured even in the Insecticides Act 1968. The initiative to open 1000 ITIs is a timely initiative. Relevant centres of ITIs must start drone pilot training and maintenance as an option to feed the skills needed to grow the drone led agricultural economy.
Overall, this budget has laid a strong foundation for a more resilient, productive, and sustainable agricultural sector in the country. We remain committed to partnering with the government in its endeavor to transform Indian agriculture and improve farmer livelihoods and the country’s food security."
Anand V. S., Managing Director, NOCIL Ltd.
“The Union Budget announcement by the government, which aims to skill 20 lakh youth over 5 years and upgrade 1,000 industrial training institutes, is a significant move towards empowering the next generation. A highly skilled workforce becomes crucial as the chemical sector continues to evolve with technological advancements and innovation. Proficiency in the latest technologies and innovative techniques is vital for maintaining competitiveness. Skilled professionals are also essential for navigating stringent environmental and safety regulations, ensuring compliance, and avoiding costly penalties.
Managing the complex chemical processes involved in chemical manufacturing requires a skilled workforce to ensure high-quality production while minimising errors and safety risks. As sustainability becomes increasingly important, skilling in green chemistry and environmentally friendly processes is necessary to meet the demand for sustainable products and reduce environmental impact.
The chemicals & petrochemicals sector in India, with a current market size of around $220 billion, is expected to grow to $300 billion by 2030. For companies like NOCIL, a leading player in the rubber chemicals sector, these advancements are particularly pertinent. Our commitment to innovation and quality aligns with the need for a skilled workforce that can adapt to emerging markets and new applications.
By aligning course content with industry needs, the government's budget allocation, which includes a total central outlay of Rs. 2 lakh crore and a Rs. 60,000 crore skill enhancement scheme, will modernise ITIs and support a skilled workforce. This initiative is expected to drive growth and contribute to the overall development and competitiveness of the chemical industry, benefiting both the youth and companies like NOCIL, as well as the sector at large.”
A. K. Tyagi, Founder, Chairman & Managing Director, Nuberg Engineering Ltd.
"The Budget 2024 includes bold and progressive measures that deserve praise. In line with the dream of a Viksit Bharat, bringing in a policy paper on energy transition routes is a big move to balance growth, environmental protection, and jobs. This complete approach will be key as we deal with the tricky scene of changing our energy use.
Auctioning offshore mineral blocks and creating a policy for electricity storage shows a practical approach to boost our energy infrastructure. These steps, along with efforts to add more renewable energy, will spark new ideas and make the sector more productive.
Working together on R&D for small modular reactors and looking into new tech is important. By putting money into Bharat Small Reactors and modular reactors, the government isn't just pushing nuclear tech forward, it's also opening doors for businesses to get involved.
The success of PM Surya Ghar Muft Bijli Yojana and ongoing help for PM Awas Yojana Urban 2.0 show a real dedication to improving lives through better energy access and housing. The planned pumped storage policy will tackle the on-and-off nature of renewables, which you need for a power grid that won't let you down.
Also, NTPC's teamwork with BHEL to build an 800 MW plant using AUSC technology marks a big step forward in advanced power generation. Solar power stays a key part of our renewable energy goals, with a clear plan to reach 500 GW by 2030. This shows our dedication to cutting down on fossil fuel use and fighting climate change.
While the measures in Budget 2024 will advance renewable energy initiatives, achieve energy independence, mitigate environmental impacts, and create a resilient energy system for future generations, we wish more had been done to accelerate the development of Green Hydrogen. A greater emphasis on this promising technology would significantly bolster our sustainability efforts and reinforce our commitment to a greener future. This technology holds great promise, and putting more effort into developing it could really strengthen our sustainability goals and show our commitment to a greener future. Our goal is to build on the Budget 2024's progress by advancing renewable energy and boosting Green Hydrogen development. This will help us achieve a more sustainable and greener future."
Sanjiv Kanwar, Managing Director, Yara South Asia
“We welcome the Union Budget's strong emphasis on agriculture, particularly its aim to bolster productivity and resilience. The commitment to releasing climate-resilient crop varieties, alongside the establishment of bio-research centers, demonstrates a commendable commitment to the long-term health, sustainability, and resilience of Indian agriculture. The budget provisions for agriculture and allied sectors provide a solid foundation for these initiatives.
The attention given to pulses and oilseeds, along with the development of large-scale clusters near FPO centers and consumption centers, directly addresses the need for a robust and efficient supply chain. These large-scale clusters around consumption centers will also help in efficiently reducing the carbon footprint of the agricultural supply chain. We are also pleased to see the government's commitment to digital public infrastructure, including the digital crop survey, which will contribute to greater transparency and data-driven decision-making in agriculture.
Furthermore, we applaud the budget's commitment to facilitating higher participation of women in the workforce. We believe this focus will have a particularly positive impact on agriculture, where empowering women is crucial for a thriving agriculture sector. Increased opportunities for women in areas such as agricultural entrepreneurship, technology adoption, and leadership roles will benefit the entire industry.
We are particularly encouraged by the budget's emphasis on enhancing the ease of doing business in India under Jan Vishwas bill 2.0. Streamlining regulations and creating a more conducive environment for businesses will be crucial for attracting investment and driving growth in the agricultural sector. This union budget lays a strong foundation for a future where Indian agriculture is both prosperous and sustainable.”
Pankaj Poddar, Group CEO, Cosmo First
“India’s packaging industry is growing at a healthy pace and is contributing significantly through the export route to the exchequer. There is a need to enhance skills for youth, innovation, and R&D support for the sector. We welcome the focus in the budget on creating job opportunities in the manufacturing sector and this coupled with support to the employers will propel the industry to new heights. Further, the introduction of a credit guarantee scheme for MSMEs and facilitating term loans to MSMEs for purchase of equipment without collateral or guarantee will go a long way to enhance access to capital in the sector.”
Girishkumar Kadam, Senior Vice President & Group Head - Corporate Ratings, ICRA Ltd.
Oil and Gas
“A capital support of Rs. 30,000 crore was provided for energy transition projects to OMCs in BE FY2024 and the same was reduced to Rs 15,000 crore and shifted to FY2025 in the interim budget. This is reduced to almost nil which would result in negligible support to OMCs. The budgetary allocation for DBT is adequate at Rs. 1500 crore. However there would be a risk for PSU OMCs in case international crude oil or LPG prices rise. The budgetary allocation of Rs. 9094 crore towards LPG connection for poor households is likely to remain marginally lower as per ICRA estimates.
Agri/Fertiliser
The Government has budgeted Rs. 1.19 lakh crore for urea subsidy and Rs. 45,000 crore for nutrient-based subsidy, taking the total budgetary allocation to Rs. 1.64 lakh crore. This allocation is lower than last fiscal’s revised estimates of Rs. 1.89 lakh crore. As per ICRA expectations, the total subsidy is likely to be sufficient at current prices. However, ICRA believes that there will be a calibrated subsidy allocation by GoI, depending on the evolving subsidy requirements during the course of the financial year. This apart from some schemes of the government which have improved non-farm liquidity include Jan Samarth based Kisan Credit Cards which will be enabled in 5 states.
Renewable Energy
The budget’s focus on measures on green energy continues to reinforce the commitment towards achieving energy transition in the long run. The increased allocation to the solar power sector, including the promotion of the rooftop solar scheme, will aid the renewable capacity addition in the country. Further, the measures to promote the availability of critical minerals are expected to support the development of battery energy storage projects and reduce the cost of storage in the long run. This, along with the policy to promote the development of pumped storage projects, would facilitate the integration of renewables with the grid. However, timely implementation of policy measures remains key.”
Prof Sanket Goel, Dean, Research and Innovation (Institute-wide) and Professor, BITS Pilani Hyderabad Campus
"The budget is beaming with opportunities for both academia and industry which will further cultivate talent. The government has iterated its focus on developing India’s semiconductor manufacturing muscle by a substantial budget increase to Rs. 6,903 crore, which is more than twice than that from the preceding FY. There is immense potential for scientific progress in space technology in India which the government has rightly recognised by allocating Rs. 1,000 crore for space research. Also, the removal of angel tax for start-ups will encourage sustainable development and new business opportunities.
A 15% tariff cut on electronics will boost manufacturing and make technology more accessible, while investment in skills development, including internships for 1 million students and the establishment of 12 industrial parks, will provide vital training and job opportunities and prepare youth for future challenges. Additionally, an investment of Rs. 3 lakh in women-led sectors will empower women entrepreneurs and promote inclusive growth. Together, these measures represent a strong commitment to fostering innovation, economic growth, and youth empowerment.”
Girish Aggarwal, Managing Director, APM Terminals Pipavav
“The Union Budget 2024 marks a significant course for India's economic growth. At APM Terminals Pipavav, we commend Union Finance Minister Nirmala Sitharaman's strategic vision - particularly the emphasis on streamlining the logistics, boosting domestic manufacturing, and export promotion to catalyze India's global competitiveness. The planned reforms in shipping and the critical mineral mission are poised to generate substantial employment opportunities and fortify India's position in international trade. Moreover, the establishment of innovative E-Commerce Export Hubs through public-private partnerships, will revolutionize our export ecosystem by offering comprehensive services under one roof. We're especially encouraged by the increased focus on infrastructure spending and investment, which will undoubtedly stimulate economic activity across sectors and regions. These initiatives collectively pave the way for India to reach its ambitious $5 trillion economy goal. This budget provides a transformative step towards positioning India as a global economic powerhouse in the near future.”
Shashi Kant Singh, Partner - Agriculture, PwC India
“The Union Budget has laid down a clear path for ensuring sustainable growth of the agriculture sector. Allocation in excess of Rs. 1.5 lakh crore, coupled with a clear focus on productivity and resilience, provides a much-needed thrust to the sector. Significant emphasis has been given to climate and productivity-responsive research and use of technology. A dedicated National Cooperation Policy is a welcome step, and will positively impact the agrarian and rural economy. New models of collaborative research involving the private sector exemplify the government’s steadfast commitment towards agricultural transformation. A strategic approach to strengthen the pulses and oilseeds sector gels well with the government’s self-sufficiency mission. In a nutshell, the budget has indeed tried to address the key aspects shaping the agriculture sector.”
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