Experts said, with a focus on sustainability and innovation, the budget promises to revolutionise agricultural practices and enhance productivity
The Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman, has been hailed as a transformative step across various sectors, with significant allocations and initiatives aimed at fostering sustainable growth and innovation. From agriculture to MSMEs, and the food and beverage industry, the budget addresses long-standing challenges and sets the stage for a resilient future. Here’s a comprehensive look at the reactions and implications of this landmark budget.
A Transformative Budget for Agriculture
The agriculture sector, a cornerstone of the Indian economy, received substantial attention in this year’s budget. With a focus on sustainability and innovation, the budget promises to revolutionise agricultural practices and enhance productivity.
Deepak Bharadwaj, co-founder and Director of IoTechWorld Avigation, lauded the budget’s emphasis on agricultural research and innovation. “We at IoTechWorld welcome the Modi 3.0 government’s transformative budget, emphasising agricultural research and innovation. The comprehensive review of the farm research setup to develop climate-resilient crop varieties is a crucial step towards sustainable agriculture. The push for natural farming, with plans to initiate one crore farmers, aligns with our mission of promoting eco-friendly practices. The introduction of a digital crop survey in 400 districts marks a revolutionary stride in leveraging technology for precision farming.”
Echoing similar sentiments, Anoop Kumar Upadhyay, co-founder and Director of IoTechWorld Avigation, highlighted the government’s commitment to sustainable agriculture. “The budget shows the government’s focus on developing sustainable agricultural infrastructure. The emphasis on agricultural research and innovation and the announcement of the farm research setup to develop climate-resilient crop varieties is a crucial step towards sustainable agriculture. The extension of the Pradhan Mantri Garib Kalyan Anna Yojana for five years, benefiting over 80 crore people, reflects the government’s commitment to the welfare of the underprivileged.”
Amit Patjoshi, CEO of Palladium India, described the budget as a game-changer for agriculture. “The Union Budget 2024 for agriculture is a game-changer! With a whopping Rs 2 lakh crore package for agriculture and allied sectors, it promises to revolutionize the industry. The comprehensive focus on productivity and resilience in agriculture addresses many of the long-standing challenges faced by farmers. By introducing one crore farmers to natural farming, not only will the budget promote environmentally friendly practices, but it will also help reduce input costs and increase profitability for farmers.”
Boost for MSMEs
The budget has also brought significant relief and support for the MSME sector, which is considered the backbone of the Indian economy. Enhanced credit guarantees and support measures are set to facilitate the expansion and modernization of MSMEs.
KV Srinivasan, Executive Director and CEO of Profectus Capital Pvt Ltd, emphasised the budget’s favourable stance towards MSMEs. “This budget is a bonanza for MSMEs. Measures like vastly enhanced credit guarantees up to Rs 100 crore and an increase in MUDRA limits should facilitate capital expenditure for the expansion and modernization of MSMEs in the manufacturing sector. Wider coverage of TReDS and credit for MSMEs in the early stages of stress should help them manage working capital and cut cash flow cycles.”
Karthik Kondepudi, Partner at Herbochem, appreciated the support extended to MSMEs. “I appreciate the Government of India for supporting the MSME sector. It is a commendable step that now the MSMEs in the manufacturing sector will benefit from growth without any burden of collaterals, with the Credit Guarantee Scheme for MSMEs guaranteeing a cover of up to ₹100 crore. The new way of assessing MSME credit using digital footprints for credit appraisal will be far better than conventional methods and increase credit availability for many businesses.”
Emphasis on F&B Industry
The tourism sector also finds significant mention in the budget, with initiatives aimed at establishing India as a world-class tourist destination. This has positive implications for the Food and Beverage (F&B) industry as well.
Pulkit Arora, Director of CYK Hospitalities, highlighted the potential impact on the F&B sector. “Finance Minister Nirmala Sitharaman’s budget is a game-changer for the tourism sector. India aims to establish itself as a world-class tourist destination, focusing on places of immense spiritual importance, which will also benefit the F&B industry. The inflow of tourists, both international and domestic, would like to experience the taste of local food, which will eventually bring up the demand for local food vendors as well as reputed food brands.”
A Mixed Bag for the Pharmaceutical Sector
While the budget has been widely appreciated across various sectors, the pharmaceutical industry felt it had more expectations.
Ashutosh Gupta, Director of Medicamen Organics Limited and Past Chairman of Pharmexcil Export Promotion Council of India, expressed his views. “Budget 2024 does not hold much for the pharmaceutical sector. Although it is one of the fastest-growing and most promising sectors in India, we were expecting more announcements to promote the API sector and manufacturing intermediates in India, for which we are largely dependent on China. We also expected some announcements on R&D. No sector can grow without support from the government, and we hope for more favourable consideration in the future.”
Driving Technological Advancements in Agritech
The budget’s focus on digital infrastructure and agritech solutions aligns with the goals of various industry leaders who see this as a step towards a more resilient agricultural landscape.
Dr Ashish Agarwal, Co-Founder & CTO of Weather Risk Management Services (WRMS), praised the budget’s alignment with climate resilience. “Budget 2024-2025 marks a significant milestone towards a thriving and innovative agritech future, with a strong emphasis on climate resilience and adaptation. The introduction of 109 high-yielding, climate-resilient crop varieties and the comprehensive review of agricultural research for climate-smart seeds are substantial advancements for the sector.”
Priyam Patel, MD of NK Proteins Pvt Ltd, added insights into the agricultural focus of the budget. “The Union government has maintained a strong focus on enhancing agricultural productivity and resilience. The substantial allocation of Rs 1.52 lakh crore for agriculture and allied sectors underscores this commitment. Initiatives for self-sufficiency in pulses and oilseeds, particularly groundnut, sesame, and sunflower, are pivotal for Atmanirbharta in the edible oil sector.”
Conclusion
The Union Budget 2024-25 stands out as a comprehensive and forward-thinking plan that addresses key areas of the Indian economy. From enhancing agricultural productivity and supporting MSMEs to boosting the tourism sector and promoting technological advancements, the budget lays a robust foundation for sustainable growth and development. As various sectors gear up to implement these initiatives, the collaborative efforts of the government, private sector, and research institutions will be crucial in driving India towards a resilient and prosperous future.