MUMBAI: The World Trade Center Mumbai, in association with the All India Association of Industries (AIAI), hosted a high-impact seminar titled ” India’s New Labour Codes: Impact on Industries and employees” here today at World Trade Center Mumbai. The event brought together nearly 200 industry leaders, business executives, and HR professionals to understand the impact of the Labour Codes on businesses and MSMEs.

Speaking at the seminar, Suhas Basakhetre, Managing Director, Prompt Personnel Pvt. Ltd., stated, “enhancing the ease of doing business is the central objective of India’s labour law reforms. He noted that the earlier labour laws, many of which had been in force for decades, have now been comprehensively rationalised by consolidating 29 existing laws into four simplified labour codes.”

Highlighting the intent behind the reforms, Basakhetre said that the labour codes focus on simplification of laws, ease of compliance for employers, digitisation of processes, creation of a balanced and equitable framework for both employers and employees, and strengthening enforcement mechanisms

He further added that, “the entire compliance and enforcement ecosystem has now been digitised, significantly reducing regulatory complexity. Over 1,400 compliances have been streamlined to approximately 400, which is a major step towards improving the ease of doing business. The new labour codes aim to provide equal weightage to the interests of employers and employees, fostering a more transparent, efficient, and growth-oriented labour ecosystem.”

In his remark, Dr. Vijay Kalantri, President, All India Association of Industries and Chairman, World Trade Center Mumbai, said, “The consolidation of 29 existing labour laws into four unified labour codes is a landmark reform aimed at simplifying labour regulations, expanding worker protections, and improving predictability and clarity for employers.

“There would be greater job formalization and increased worker welfare, which would lead to potential job creation and increased consumption. These positives come with certain challenges, including higher wages and labour costs, more formalities, possible job insecurity, strained HR capacity, increased compliance workload, and short-term cost impacts. These reforms mark a decisive step towards building a more unified, resilient, and inclusive labour ecosystem, aligned with India’s vision of a Viksit Bharat 2047,” Dr. Kalantri stated

Yashashri Kulkarni, General Manager, Labour Law Compliance, Prompt Personnel Pvt. Ltd., highlighted key provisions under the Code on Wages, including the fixation of a National Floor Wage and the need for employers to realign and update their wage structures accordingly.

She further noted that this is the first time Indian labour legislation has formally defined emerging categories such as aggregators, gig workers, platform workers, and fixed-term employment, reflecting the evolving nature of the workforce. Referring to the Code on Social Security, Ms. Kulkarni pointed out that the EPF case deposit requirement has been significantly reduced from 75 per cent to 25 per cent of the estimated amount, while monetary penalties for non-compliance have been enhanced to strengthen enforcement.

She also highlighted important reforms under the Occupational Safety, Health and Working Conditions Code, including the introduction of a pan-India single licence regime, liberalisation of leave encashment provisions, and mandatory crèche facilities, all aimed at improving worker welfare while simplifying compliance for employers.

The seminar concluded with an engaging and interactive question-and-answer session. Priya Pansare, Director Trade and Investment Promotion, World Trade Center, Mumbai, Suhas Basakhetre, and Yashashri Kulkarni presented the vote of thanks by expressing their gratitude to and for the insightful seminar. 

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Welcoming the signing of the pact, Dr. Vijay Kalantri, President, All India Association of Industries (AIAI) and Chairman, World Trade Centre Mumbai, stated, “The India-Oman CEPA is a landmark milestone that will serve as a force multiplier for India’s manufacturing and services sectors. By securing zero-duty access for over 99% of Indian exports, the government has provided a substantial competitive edge to our MSMEs and exporters in textiles, gems & jewellery, engineering, and pharmaceuticals. Oman is not just a key trading partner but a strategic gateway for Indian businesses to access the wider markets of the GCC, Africa, and the Middle East.”

“This agreement goes beyond trade in goods; it commits to the liberalization of service sectors and the facilitation of professional mobility, allowing Indian talent to contribute significantly to Oman’s development. We foresee bilateral trade surpassing its current trajectory to reach new heights in the coming years,” Dr. Kalantri added.

The agreement eliminates duties on 98.08% of Oman’s tariff lines and gives 100% commitment on FDI for Indian companies in major service sectors. This will bring immediate relief and competitiveness to Labour-Intensive Sectors, Manufacturing, Engineering, Services & Investment. It is also notable that this is Oman’s first bilateral agreement since 2006 and India’s second FTA in the last 6 months, showcasing our increasing willingness to integrate into global markets.

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The conference featured expert sessions on topics such as central government initiatives for MSMEs, the importance of credit scores, TREDS, MSME IPOs, and dematerialization of shares. Speakers included senior officials from the MSME Ministry, NSDL, NSE, M1 Exchange, and credit rating agencies.

The event provided a platform for MSMEs to interact with industry experts, network with peers, and gain insights into the latest developments in the sector. Shri Mahesh M Pai, CGM, addressed the Q&A session from the inquisitive participants. Canara Bank’s MSME Day 2025 aimed to promote entrepreneurship, facilitate growth, and support the development of MSMEs in the region.

The event was well-received by attendees, who appreciated the bank’s efforts to foster a conducive ecosystem for MSMEs. With its focus on MSME growth and development, Canara Bank’s MSME Day 2025 marked a significant milestone in the bank’s commitment to supporting small businesses.

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Freyr Energy, a leading force in India’s solar industry, is expanding its footprint in Maharashtra, driving the adoption of clean and affordable energy. With over 1,000 successful projects and more than 13 MW of installed solar capacity across the state, the company is playing a pivotal role in Maharashtra’s transition to sustainable power.

A significant portion of this impact stems from the Commercial and Industrial (C&I) sector, where the company has installed over 7 MW of solar capacity. Notable clients include Savera Mouldings Pvt. Ltd. (916 kW), Mazagaon Dock (360 kW), MEDA (615 KW), Bahirat Estate (120 kW), Indian Oil Corporation Limited (177 kW), and RM Chemicals (300 kW). In smaller cities and towns such as Beed, Aurangabad, Satara, and Solapur, Freyr Energy has completed collective installations exceeding 1 MW, showing its reach beyond urban centers. Pune has emerged as a key residential market for the company, with more than 200 rooftop installations and over 1.5 MW of installation capacity.

Maharashtra’s residential rooftop solar segment is witnessing new momentum, driven by a tech-enabled push to make clean energy adoption easier and more accessible for homeowners. At the heart of this shift is a proprietary digital platform that streamlines the entire solar journey—from consultation and system design to financing, installation, and post-installation support. The app-based model offers a one-stop, transparent solution that empowers users to transition to solar with greater confidence and convenience.

To solarize 7,000 homes in the state by December 2025, the company behind the initiative is also removing financial roadblocks through zero-interest loan schemes and an accelerated digital loan evaluation process. This approach significantly lowers upfront costs, encouraging more households to make the switch to solar.

Radhika Choudary, Co-founder and Director, remarked, “The Government of Maharashtra has laid out progressive policies to promote renewable energy, and our efforts align with these goals. More importantly, we’re helping customers get the highest returns for the lowest investment. In many ways, we’re setting new benchmarks—offering exceptional quality at an affordable price.”

The company’s long-term plans include supporting thousands of micro, small, and medium enterprises (MSMEs) in their transition to solar energy by 2030. With rising energy costs straining operational budgets, especially for smaller businesses, solar offers a cost-effective and sustainable alternative that supports both financial and environmental goals.

By combining customer-first thinking with digital innovation, the clean-tech player is contributing to India’s solar mission, making clean energy a possibility, an accessible and impactful reality for homes and businesses alike.

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The key findings of the study are mentioned below:

• Formalization Drive: The MSME sector, especially micro and small enterprises, has seen significant formalization through Udyam Registration and Udyam Assist Portal, with over 6.2 crore registrations by March 2025 (up from 2.5 crore in March 2024).  
• Access to Credit: The survey respondents consider timely and adequate credit access as one of their key challenges despite the comprehensive policy initiatives in that regard. While borrowings from informal sources are minimal for small and medium enterprises at 3% and 2% respectively, it is still relatively significant at 12% for micro enterprises.
• Digital Lending Opportunity: With 18% of MSMEs using digital lending platforms and 90% accepting digital payments, the sector shows promising digital adoption. This trend, supported by platforms like UPI, can enhance credit access going forward.
• Credit Gap: Increased credit supply to MSMEs is in evidence. The study broadly estimates that the sector still has an addressable credit gap of about 24% or ₹30 lakh crore. The gap is higher in the services sector at 27%; it is estimated to be also higher at 35% for women-owned MSMEs, indicating a need for targeted policy actions.
• Women Entrepreneurship: Women entrepreneurship has become a significant aspect in the MSME sector with 26.2% in proprietary enterprises being owned by women as per ASUSE 2023-24, signalling growing inclusivity. 76% of the women led MSME respondents have access to credit, but they continue to face higher challenges vis-à-vis their male counterparts with 41% highlighting credit access and high competition as the largest obstacle to their growth.  
• Market Access Challenges: According to the survey, a majority of the MSMEs have been slow to adopt modern channels to reach customers. Around 70% of the survey respondents continue to use traditional modes of marketing, which hinders their scalability and ability to remain competitive. Effective utilization of e-commerce and digital marketing can provide MSMEs with improved access to new markets and customers.
• Export Potential: MSMEs increased their merchandise export share from 43.6% (FY23) to 45.7% (FY24). Exporting MSMEs show better tech adoption than non-exporters, but cite supply chain issues, credit access, and competition as major hurdles, though they.
• Skilled Labour Shortage: Around a fourth of the surveyed MSMEs cite the lack of skilled manpower as one of their major challenges. Skilled labour shortages are particularly high in defence equipment, readymade garments, the hotel sector, tiles, and sanitarywar,e as reflected in the survey.
• Infrastructure & Technology Gaps: Inadequate infrastructure and technology adoption affect productivity and competitiveness; more prominent in sectors like auto components, iron and steel and transport and logistics. A significant proportion of the respondents cited technology adoption as a major obstacle to their growth.
• Sustainability Efforts: Over one-third of MSMEs have adopted sustainable practices; 31% use energy-efficient systems, and 21% utilize renewable energy. However, 33% cite limited awareness as a key barrier to further adoption.

The report is available at https://www.sidbi.in/uploads/Understanding_Indian_MSME_sector_Progress_and_Challenges_13_05_25_Final.pdf

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The countrywide outreach camps follow the RBI Monetary Policy Committee’s back-to-back rate cuts, which saw interest rates on bank credit fall 50 basis points. Union Bank’s MSME loan now starts at an affordable interest rate of 8.75%.

The programs will be conducted across 62 locations from April 28 to 30, 2025, bringing together existing and potential customers, industry associations, trade bodies, and government agencies. These events will serve as collaborative platforms to address financial needs, promote digital banking awareness, and introduce tailored financial solutions.

The MSME & CASA Outreach program will focus on understanding customers’ financial needs, showcasing bank products, generating leads, and gathering feedback for continuous improvement in service quality and customer satisfaction. The program will cater to existing & prospective MSME customers, start-ups, young professionals, emerging entrepreneurs, women entrepreneurs, vendors, and suppliers associated with large industries, and representatives from industry associations, trade bodies, and chambers of commerce. The CASA Outreach program is designed for prospective premium CASA customers, government department heads, doctors, and other professionals

The event will be presided over by senior officials from Union Bank and will provide a platform for customers to engage with the bank and share their experiences.

During the outreach, customers will have the opportunity to upgrade their CASA accounts and activate salary accounts on the spot. The program will also feature on-spot locker sanction, Vyom digital banking registration, and dedicated help desks for internet banking and mobile banking activation.

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The MSME Secretary, Tmt. Archana Patnaik I.A.S., and StartupTN’s Mission Director and CEO, Thiru Sivarajah Ramanathan, were present at the meeting. StartupTN officials presented an overview of the ongoing activities and outlined the plans.

StartupTN will conduct the Tamil Nadu Global Startup Summit in Chennai. This flagship event is organized to position Tamil Nadu’s startup ecosystem on the global stage by promoting the growth of both emerging and established startups. More than just an event, it will serve as a hub for the exchange of ideas, innovation, and inspiration.

The objective of the event is to showcase Tamil Nadu’s vibrant startup ecosystem on an international platform, facilitate connections between startups and global stakeholders to attract investments and foster collaborations, thereby easing Tamil Nadu startups’ entry into international markets, and showcase Tamil Nadu’s brands and innovations on a global stage.

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The introduction of a credit guarantee scheme for MSMEs, providing up to ₹100 crore without collateral, along with the new credit assessment model and enhanced Mudra loan limits, will ensure broader financial inclusion and stability. The commitment to developing ‘plug and play’ industrial parks and reducing customs duty on key raw materials like ferro nickel and blister copper will lower production costs and enhance competitiveness. Additionally, the financial support for shifting micro and small industries to cleaner forms of energy and the facilitation of investment-grade energy audits in 60 clusters, with expansion to 100 clusters, will greatly benefit MSME units in the forging sector. Overall, this budget is a significant step towards ‘Viksit Bharat,’ and we at AIFI are optimistic about its positive impact on the forging industry and the broader manufacturing sector.”

2.      Anurag Garg, Country Head & Managing Director, Vitesco Technologies India said, “We welcome the Union Budget 2024 and commend the government’s budgetary priorities aimed at fostering innovation, research, and development in the manufacturing sector. The initiatives announced today, such as the credit guarantee scheme and reduction in customs duties on critical raw materials, are poised to strengthen India’s manufacturing ecosystem. These measures will not only incentivize additional employment in the manufacturing sector but also provide the necessary financial and technological support to MSMEs, allowing them to compete globally and contribute significantly to the economy.

Additionally, the establishment of investment-ready industrial parks and the reduction of input costs through customs duty cuts will boost domestic manufacturing and export competitiveness. We look forward to leveraging these opportunities to drive sustainable growth and technological advancement in the automotive industry, aligning with our vision for a prosperous ‘Viksit Bharat’.”

3.      Sanjana Desai, Executive Director of Mother’s Recipe said, “The 2024 budget brings a sense of optimism and growth opportunities for the FMCG sector. The proposal to abolish the so-called angel tax for all classes of investors will significantly bolster the entrepreneurial spirit and support innovation within our industry. Additionally, the increase in the standard deduction for salaried employees will enhance consumer purchasing power, which is beneficial for our brand as it may lead to increased demand for our products. We appreciate the government’s efforts to simplify taxation and promote a more business-friendly environment.”

4.      Mahesh Viswanathan, Deputy CEO and CFO, of Finolex Cables Ltd. said, “We welcome the employment and manufacturing generation initiatives outlined in the budget. The introduction of a credit guarantee scheme for term loans on machinery and equipment purchases, without collateral or third-party guarantees, is a progressive step that will empower MSMEs to innovate and expand, driving growth and job creation across the nation. Additionally, the exemption of customs duties on 25 critical minerals is a strategic move towards strengthening the economy and ensuring vital resources are available for the manufacturing sector.

We also applaud the continued efforts to bolster housing and infrastructure development, along with the focus on Digital Public Infrastructure. We firmly believe that these sectors are essential for driving economic growth. As the budget prioritizes expanding the manufacturing footprint, we anticipate a corresponding increase in consumer uptake.”

5.     Rahul V. Karad – Managing Trustee, MAEER, Executive President, MAEER’s and MIT World Peace University & Chief Initiator, MIT SOG said, “We welcome the Finance Minister’s progressive budget, which demonstrates a strong commitment to education, employment, and skills with an allocation of ₹1.48 lakh crore. 

This significant investment highlights the government’s dedication to nurturing talent and fostering growth. The introduction of financial support for higher education will help make higher education more accessible. Furthermore, the emphasis on developing digital public infrastructure applications will drive productivity and innovation, benefiting various sectors such as education and health. 

We call for clear guidelines on attention towards creative avenues to fund and promote a mandated Industry-Academia Partnership for mutual benefit. This will help boost the initiative to skill one crore youth through internships with top companies and the Prime Minister’s Internship program to provide valuable practical experience and skill development. 

Overall, this budget aligns with our vision of ‘Viksit Bharat,’ paving the way for a robust and inclusive development trajectory.”

6.      Farrokh N. Cooper, Chairman and Managing Director, Cooper Corporation Pvt. Ltd said, “The reduction in the corporate tax rate for foreign companies from 40% to 35% is a commendable move that will attract more foreign investments into the country, fostering growth in the manufacturing sector. The proposed rationalization of capital gains taxation and the simplification of tax procedures will also enhance the ease of doing business. Additionally, the emphasis on fostering employment through various initiatives is highly encouraging. The allocation of funds towards skill development and vocational training programs will equip the labor force with the necessary skills to meet the industry’s evolving demands. As a leading engine and component manufacturer, we are hopeful that these measures will lead to increased investments, job creation, and a more skilled workforce within our sector.”

7.      Dr Sudhir Mehta Founder and Chairman of EKA Mobility, Pinnacle Industries said, “Today’s union budget marks a significant milestone in India’s journey toward becoming a $5 trillion economy and solidifies its role as a global growth engine. The government’s comprehensive approach to supporting various sectors, especially MSMEs and start-ups, is commendable. The introduction of a credit guarantee scheme for MSMEs, which facilitates term loans without collateral or third-party guarantees, is a game-changer. By reducing the turnover threshold for mandatory onboarding on the TReDS platform from Rs 500 crore to Rs 250 crore, the government is making it easier for smaller MSMEs to benefit from this essential online platform. Additionally, opening 24 new SIDBI branches will enhance support for MSME clusters across the country. Likewise, the abolition of the ‘Angel Tax’ for all investors in start-ups is another progressive move, offering substantial relief and encouraging greater investment in innovation and entrepreneurship. While, in agriculture, the allocation of ₹2.66 lakh crore for rural development and the focus on climate-resilient crop varieties reflect a forward-thinking strategy. The initiative to introduce 1 crore farmers to natural farming over the next two years, supported by certification and branding, will contribute significantly to the sector’s sustainability and productivity. Overall, these measures underscore the government’s commitment to fostering economic growth, supporting innovation, and driving sustainable development across sectors.”

8.     Venkatesh Gopalakrishnan, Director Group Promoter’s Office, MD & CEO – Shapoorji Pallonji Real Estate (SPRE) quoted,  “We appreciate the government’s new initiatives in the Indian Budget 2024–25, which show a strong commitment to strengthening the housing sector. The introduction of the PM Awas Yojana-Urban 2.0 is a commendable step towards addressing the housing needs of 1 crore poor and middle-class families. This scheme, with an investment of Rs 10 lakh crores and central assistance of Rs 2.2 lakh crores over the next five years, promises to uplift the housing sector significantly. The expansion of the PMAY scheme is a crucial step towards rejuvenating the affordable housing sector, which is pivotal for sustainable urban development in India. This move will empower developers to innovate and meet the growing demand for affordable homes, thereby fostering socioeconomic stability and equitable housing solutions nationwide.

Additionally, the increase in the affordable housing deduction for interest paid on loans is a positive change that will provide much-needed relief to homebuyers and boost the real estate market. The finance minister’s announcement encouraging states with high stamp duties to moderate their rates and considering further reductions for properties purchased by women is another positive step. This empowers women economically and socially, creating a more inclusive growth model. These measures, integrated as essential components of urban development schemes, will make homeownership more accessible and equitable.

However, the proposed 12.5% tax rate on long-term gains for all financial and non-financial assets, coupled with the increased exemption limit of ₹1.25 lakh per year for specific financial assets, is expected to have a mixed impact on the real estate market.”

9.      Amit Jain, Global Chief Executive Officer – of Sterling and Wilson Renewable Energy Group sharing his opinion said, “As a leader in the renewable energy sector, we feel that the recent budget announcement is an acknowledgment of the industry’s huge potential in terms of meeting India’s global sustainability commitments, ensuring the nation’s long term energy security, and providing access to affordable and clean power source for the people. We commend the government’s move to support energy transition by expanding the list of exempted capital goods for use in the manufacture of solar cells and panels in the country.  The PM Surya Ghar Muft Bijli Yojana which involves the installation of rooftop solar plants to enable one crore households to obtain free electricity is a step in the right direction and shall promote a more sustainable future. The announcement to fully exempt 25 critical minerals and reduce BCD on two of them will assist the renewable energy sector since it shall provide a major fillip to the processing and refining of such minerals and help secure their availability. The proposed policy to promote pumped storage projects for electricity storage will help facilitate the smooth integration of growing renewable energy share thereby reducing challenges posed by its variable and intermittent nature. Expansion of India’s renewable energy infrastructure – both greenfield and brownfield will require a skilled workforce to ensure efficient project execution while reducing cost and time overruns. We therefore welcome the government’s focus towards upskilling 20 lakh youth over 5 years and upgrading 1000 Industrial Training Institutes.”

10.  FADA President Mr Manish Raj Singhania’s Quote on Budget: “The recent budget announcement by the Government of India brings a blend of optimism and challenges for the auto retail sector. The focus on ‘Garib’, ‘Mahilayen’, ‘Yuva’, and ‘Annadata’ highlights a comprehensive approach towards inclusive growth, which is commendable. The enhanced Minimum Support Prices for major crops and the launch of Phase IV of PMGSY are positive steps that will boost rural incomes and improve rural connectivity, thereby potentially increasing rural auto sales.

The budget’s emphasis on employment, skilling, MSMEs, and the middle class is particularly relevant for our industry. The Employment Linked Incentive scheme and the enhancement of Mudra loans are encouraging developments that will support job creation and entrepreneurship, leading to increased consumer spending power.

Significant infrastructure investments, with an allocation of Rs. 11,11,111 crore for capital expenditure, will have a multiplier effect on the economy. Improved infrastructure is a boon for the auto sector, facilitating better logistics and enhancing the overall consumer experience.

The adjustments in personal income tax, including increased standard deductions and relief for salaried employees and pensioners, are welcome measures that will enhance disposable incomes, fostering a more favorable environment for auto sales.

However, the industry must also navigate certain challenges. While the budget provides a robust framework for growth, the effective implementation of these policies will be crucial. We hope for continued support from the government in addressing specific issues faced by the auto retail sector, such as the transition to green mobility and the need for policies that support sustainable practices.

Overall, the budget lays a strong foundation for future growth, and we are optimistic about the positive impact it will have on the auto retail industry.”

11.  Shri Debadatta Chand, Managing Director & CEO, of Bank of Baroda stated that, “The Union Budget complements the main takeaways from the Economic Survey and focuses clearly on the medium-term development of the economy. The thrust on agriculture, skill development, and MSMEs consequently leading to employment generation will continue to be the main focus areas for the government in the coming years. The overall size of the budget has remained almost unchanged from the Interim one. The budget has shown strong intent on moving along the fiscal prudence path and targeted the fiscal deficit at 4.9% for the year. The said action will keep the growth steady as well as robust not only for the economy but also for banking. This will make it easier to touch the 4.5% mark in FY26 as per the FRBM target. More importantly for the financial year, the overall gross borrowing and net borrowings have been pegged at almost the same level as in the Interim Budget. This means that it is virtually neutral for the market in terms of liquidity and bond yields, which has a positive impact on the economy.

The banking sector can see substantial positive takeaways from the Budget which goes beyond the neutral impact on liquidity. First, there is a focus on MSMEs with a credit guarantee scheme being brought in. Any support to the MSMEs will be positive growth of not just GDP but also employment. Second, at the retail level, there is an emphasis on education loans which will also help in skill building that is the need of the day. Third, the Budget speech also spoke about recovery and the focus will be on debt recovery tribunals. Fourth, the balanced regional development goal also includes setting up more touch points in the North Eastern Regions which will help to make banking more universal. Lastly, the reiteration of the budget to encourage housing also means that banks will have a larger role to play in carrying out this program at both the rural and urban levels.

12. Rajesh Sharma, Managing Director at Capri Global Capital Limited opinioned, “We commend the Union Budget 2024-25 for its robust support towards MSMEs, a vital backbone of our economy. The budget’s enhancements to the credit guarantee scheme, regulatory reforms, and financial packages reflect a strong commitment to creating a supportive environment for MSMEs to thrive and compete globally. Notably, the budget also emphasizes affordable housing, which will further stimulate economic growth, improve asset quality, and create employment opportunities. The focus on e-commerce export hubs and technological upgrades for traditional artisans will not only strengthen domestic growth but also position Indian MSMEs as key players on the global stage.

Additionally, the measures to facilitate term loans for machinery and equipment without collateral, along with the establishment of new SIDBI branches, will significantly ease financial access for MSMEs. The budget’s emphasis on promoting women-led development through dedicated schemes benefiting them is a commendable step towards inclusive growth. Furthermore, the initiatives aimed at improving productivity and efficiency reflect India’s vision of becoming an inclusive and developed nation. These initiatives are poised to drive innovation, employment, and sustainable development within the sector, further strengthening India’s economic resilience.”

13.  Karun Tadepalli, CEO and Co-Founder, byteXL opinioned, “Cognizant of the transformative power of education and skills in shaping our nation’s future, the policymakers are aiming to empower youth. By offering financial support for higher education loans up to Rs 10 lakh with a 3% interest subvention and e-vouchers for one lakh students annually, access to learning opportunities is being democratized. Concurrently, the upgrade of 1,000 ITIs using the hub and spoke model, aligned with industry needs, underscores our dedication to equipping our workforce with relevant skills.

With an allocation of Rs 1.48 lakh crore towards education, employment, and skilling initiatives, 20 lakh youth over the next 5 years will be skilled. Internships for 1 crore youth in top companies, supported by CSR initiatives, will bridge the gap between academia and industry, fostering practical knowledge and career readiness. The abolition of angel tax for investors further catalyzes entrepreneurial spirit, facilitating innovation and job creation. Together, these measures reflect a holistic approach to nurturing talent, enhancing employability, and fostering a thriving economy built by a skilled workforce.”

14.   Prem Kumar Vislawath – CEO and Founder, of Marut Drones said, “The allocation of ₹1.52 lakh crore for agriculture and allied sectors by the finance minister underscores a pivotal commitment to bolstering India’s agricultural resilience. The emphasis on developing climate-resistant varieties and introducing 109 new high-yielding varieties is a forward-looking stride toward sustainable agriculture. Additionally, the promotion of farmer-producer organizations, cooperatives, and startups heralds a new era of inclusive growth and innovation in the agricultural sector.

Exempting lithium imports from customs is a bold step demonstrating India’s commitment to strengthening the drone manufacturing sector. Lithium, crucial for drone battery production, will now bolster domestic drone manufacturing, underlining the government’s support for this industry.

The abolition of the Angel Tax for investor classes is a significant boost for startups, affirming the government’s unwavering support for entrepreneurship and fostering a conducive investment environment.

However, we look forward to enhanced subsidies on agricultural machinery, including drones, as a critical step towards modernizing our farming practices.

15.  Saurabh Marda, Co-founder and Managing Director of Freyr Energy sharing his thoughts said, “The recent budget has been highly favorable for the energy sector, with the government setting an ambitious goal of achieving 500 GW of renewable power by 2030. A key component of this plan is encouraging homeowners to adopt solar energy, facilitating a swift transition to solar power. To support this, the government has allocated ₹70,000 crores in subsidies for homes that switch to solar energy. This is a crucial and forward-thinking initiative for the country’s future, and we express our gratitude to the government for taking this significant step”.

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“The Union Budget complements the main takeaways from the Economic Survey and focuses clearly on the medium-term development of the economy. The thrust on agriculture, skill development, and MSMEs consequently leading to employment generation will continue to be the main focus areas for the government in the coming years. The overall size of the budget has remained almost unchanged from the Interim one. The budget has shown strong intent on moving along the fiscal prudence path and targeted the fiscal deficit at 4.9% for the year. The said action will keep the growth steady as well as robust not only for the economy but also for banking. This will make it easier to touch the 4.5% mark in FY26 as per the FRBM target. More importantly for the financial year, the overall gross borrowing and net borrowings have been pegged at almost the same level as in the Interim Budget. This means that it is virtually neutral for the market in terms of liquidity and bond yields, which has a positive impact on the economy.

The banking sector can see substantial positive takeaways from the Budget which goes beyond the neutral impact on liquidity. First, there is a focus on MSMEs with a credit guarantee scheme being brought in. Any support to the MSMEs will be positive growth of not just GDP but also employment. Second, at the retail level, there is an emphasis on education loans which will also help in skill building that is the need of the day. Third, the Budget speech also spoke about recovery and the focus will be on debt recovery tribunals. Fourth, the balanced regional development goal also includes setting up more touch points in the North Eastern Regions which will help to make banking more universal. Lastly, the reiteration of the budget to encourage housing also means that banks will have a larger role to play in carrying out this program at both the rural and urban levels.“

Rajesh Sharma, Managing Director at Capri Global Capital Limited:

“We commend the Union Budget 2024-25 for its robust support towards MSMEs, a vital backbone of our economy. The budget’s enhancements to the credit guarantee scheme, regulatory reforms, and financial packages reflect a strong commitment to creating a supportive environment for MSMEs to thrive and compete globally. Notably, the budget also emphasizes affordable housing, which will further stimulate economic growth, improve asset quality, and create employment opportunities. The focus on e-commerce export hubs and technological upgrades for traditional artisans will not only strengthen domestic growth but also position Indian MSMEs as key players on the global stage.

Additionally, the measures to facilitate term loans for machinery and equipment without collateral, along with the establishment of new SIDBI branches, will significantly ease financial access for MSMEs. The budget’s emphasis on promoting women-led development through dedicated schemes benefiting them is a commendable step towards inclusive growth. Furthermore, the initiatives aimed at improving productivity and efficiency reflect India’s vision of becoming an inclusive and developed nation. These initiatives are poised to drive innovation, employment, and sustainable development within the sector, further strengthening India’s economic resilience.”

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Divyesh Dalal, Managing Director & Head – Global Transaction Services, SME & Institutional Liability Business, DBS Bank India.

“The measures announced in the Union Budget underscore the government’s commitment to empowering MSMEs, the backbone of our economy. The introduction of the credit guarantee scheme is an encouraging step towards making capital more accessible. Additionally, the provision of collateral-free term loans for purchasing machinery and equipment will tangibly enhance the operational capabilities of MSMEs by enabling technology upgrades.

Further, lowering the turnover thresholds mandatory for onboarding on the TReDS platform will allow more MSMEs to access the benefits of this system. The establishment of e-commerce export hubs is poised to further equip enterprises with the tools and support needed to expand into international markets. By making their products more accessible globally through e-commerce platforms, Indian businesses can tap into new opportunities with offshore customers across markets. DBS Bank India is well-positioned to support MSMEs given the focus on supporting the sector.“

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