Tag Budget

Go Digit Q1 FY 2024-25 GWP grows 22% to Rs 2,660 crore;

PAT jumps 74% YoY to Rs 101 crore

Gross Written Premium Income: –

• In Q1 FY25, Gross Written Premium of the company stood at ₹ 2,660 cr compared to ₹ 2,178 cr in Q1 FY24, achieving a growth of 22.2%.

Premium Retention Ratio: –

• Premium Retention Ratio for Q1 FY25 is 76.2%, as compared to 76.9% in Q1 FY24.

Profitability: –

• Profit after tax for the Q1 FY25 stood at ₹ 101 Cr, compared to ₹ 58 Cr in Q1 FY24, growth of 74.1%.

Asset Under Management: –

•         As at June 30, 2024, our asset under management stands at ₹ 17,773 Cr, compared to ₹ 15,764 Cr as at March 31, 2024, grew by 12.7%.

Combined Ratio: –

• Combined Ratio for Q1 FY25 is 105.4%, as compared to 106.2% in Q1 FY24.

India’s Budget Balances Growth and Fiscal Consolidation Well

Following the parliamentary elections earlier this year, the Indian Finance Minister presented the first budget of the new coalition government today. In our view, the budget does a good job balancing fiscal consolidation objectives while supporting near-term growth and facilitating employment generation. The budget focuses on 9 priority areas, including infrastructure, inclusive development, productivity enhancement in agriculture, and employment and skilling. While outlays are increasing on employment
schemes and transfers to the states governed by key allies of the BJP-led coalition, the government deepened its revenue base by raising the tax rate on short- and long-term capital gains as well as on security transactions taxes on derivative trading. This coupled with higher dividend proceeds from the Reserve Bank of India enabled the government to adhere to its fiscal consolidation path.

Budget Arithmetic is Realistic

The government set a fiscal deficit target of 4.9% of GDP for FY25 (April 2024-May 2025). This is down from last year when the deficit came in at 5.6%, and lower than the 5.1% target set for this year in the Interim Budget. Looking at the budget arithmetic, the deficit target is based on credible macroeconomic assumptions. The budget assumes nominal GDP growth of 10.5%, with overall revenue budgeted to rise by 10.8% and expenditures to increase by 8.5%. With this budget, the government appears wellpositioned to achieve the deficit target it set out in FY22 of 4.5% by FY26.

In addition, the quality of fiscal spending is improving. Building on a trend over the last few years, the budget increases infrastructure expenditure and reduces subsidies. India’s budgetary allocations to capital expenditure nearly doubled from 1.6% of GDP in FY19 to 3.4% of GDP in FY25. We see this as credit positive as it bodes well for medium-term growth.

Continuation of Macro and Fiscal Trends Are Key to India’s Credit Rating

India’s credit rating (BBB (low), Positive Trend) reflects India’s public finance challenges, but at the same time the economy’s high growth potential. The cumulative and ongoing benefits of India’s structural reform efforts look likely to lift India’s potential growth rate with the IMF expecting India to remain amongst the fastest growing major economies in 2024-25. That said, India’s fiscal deficits at the center and state level – and level of government debt are higher than its peers in the BBB rating range and remain a key credit weakness. With this budget, the Indian government strikes a good balance: demonstrating a commitment to fiscal consolidation while supporting medium-term growth.

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 ₹ 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 ₹ 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 ₹ 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.”

Professor Manish Gangwar, Indian School of Business, Executive Director-ISB Institute of Data Science:

“The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, stands out for its strong emphasis on job creation. Through a series of innovative schemes and forward-thinking policies, this budget aims to generate substantial employment opportunities and address the existing skill gap in the workforce. A key highlight is the introduction of three “Employment Linked Incentive Schemes” designed to provide direct financial support to both employees and employers. These schemes include support for first-time employees, incentives for manufacturing sector jobs, and financial reimbursement for employers hiring additional staff.Recognizing the critical role of skill development and practical training in enhancing employability and productivity, the budget emphasizes the upgradation of ITIs and internships in top companies. Over the next five years, 1,000 Industrial Training Institutes (ITIs) will be upgraded, focusing on improving outcomes and quality. Additionally, 1 crore youth will gain valuable on-the-job experience through internships in top companies. The budget also plans to develop investment-ready “plug and play” industrial parks in or near 100 cities to stimulate job creation and a conducive environment for businesses to set up operations and generate jobs. The Union Budget 2024 is a forward-looking plan. By introducing targeted employment schemes, enhancing skill development programs, and developing industrial parks, the government aims to not only provide immediate employment opportunities but also focus on a skilled and resilient workforce for the future to drive India’s long-term economic growth.”

Amit Goyal, Regional Managing Director, South Asia, Project Management Institute:

“The government has presented a very meaningful budget touching all segments of citizens and sectors to create a roadmap to Viksit Bharat vision in 2047. The government acknowledges the need for skill development to fully leverage our demographic dividend and increase employability of Indian youth. The introduction of Central Skilling Scheme targeting 20 lakh youth over a period of 5 years, with the establishment of 1000 industrial institutes to be upgraded in hub and spoke model will democratize skill development across all strata and geographies in the country. The introduction of multiple skilling programs with ease of financial support, especially targeting manufacturing and women-led self-help groups are future forward steps in the right direction. Furthermore, the skilling programs will be devised in line with the industry needs, and new courses will be introduced as required. As the government expands its focus on sectors like space and semiconductor manufacturing, specialized skill development initiatives will pave the way for the evolving needs of industries. Focusing on professional upskilling that is critical to every industry, sector and business – such as project management and accounting – will help the government realize their goals because these burgeoning professions remain in demand now and in the future. Furthermore, this will help in creating a more job ready and employable workforce equipped to succeed in a rapidly changing business environment. These initiatives will not only help develop skilled manpower but also enhance inclusion of women in the workforce, to be well prepared for the peak of our working age population in 2044.”

Mr. 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 centres, 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.”

Mr. 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 make the expedited 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 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 decriminalization of minor offenses 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 skill etc 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 endeavour to transform Indian agriculture and improve farmer livelihoods and the country’s food security.”

Rohit Saboo, President and CEO, National Engineering Industries:

“The Budget presented by the Finance Minister is highly growth-oriented, focusing on enhancing the skills and job readiness of the youth. Incentivizing job creation in the manufacturing sector through a scheme linked to employing first-time employees is a positive step. Additionally, exempting customs duty on essential minerals like lithium, cobalt, and nickel will significantly boost India’s electric vehicle sector, reinforcing the country’s commitment to sustainability and a greener future. Overall, this budget reflects a forward-thinking approach, emphasizing sustainable growth and equipping the youth for the evolving global landscape.”

Gregory Goba Ble, Managing Director, UPS in India:

“The Union Budget unveiled recently is a monumental stride towards positioning India as a global logistics powerhouse. It aligns seamlessly with the ‘Make in India’ initiative and lays a solid foundation for India’s future growth. This budget has hit all the right notes – focusing on infrastructure development, leveraging technology & supporting MSMEs including traditional artisans through innovative measures such as e-commerce export hubs. We commend the government’s commitment to infrastructure development, particularly the announcement of new economic corridors. These initiatives, along with strategic investments in roadways and airports, are poised to streamline logistics operations, reduce costs and enhance connectivity across key regions.

The budget’s focus on MSMEs is particularly encouraging. The provision of no-collateral term loans for manufacturing MSMEs, coupled with expanded MUDRA loan limits and the new credit guarantee scheme will provide much-needed access to working capital to MSMEs. This will empower them to embrace technology and compete globally. We also applaud the government’s vision in leveraging technology through initiatives like an integrated tech platform for IBC and developing Digital Public Infrastructure. These measures are set to enhance transparency, efficiency & ease of doing business in the logistics sector.

It’s also noteworthy that TDS rates have been reduced from 1% to 0.1% for e-commerce operators – this move simplifies operations while promoting growth within this rapidly expanding segment!

Lastly but importantly – lower customs duties on crucial healthcare equipment & medicines demonstrate strong commitment towards improving healthcare infrastructure via efficient logistics.

This budget, with its emphasis on infrastructure, technology, and support for MSMEs, charts a clear path towards a more robust, efficient, and globally competitive logistics landscape in India.”

Anant Jain, Head of Customer Success – India, GfK – an NIQ company:

“In the Union Budget 2024, the Finance Minister’s focus on uplifting the poor, women, youth, and farmers aligns with India’s aspirations towards a developed nation. It reflects the government’s commitment to ‘Viksit Bharat’ and is poised to benefit the tech sector. The proposed reduction in the Basic Customs Duty (BCD) on mobile phones, mobile PCDA (Printed Circuit Design Assembly), and mobile chargers to 15% expected to make mobile devices and accessories more affordable, thereby boosting consumer demand and driving growth in the tech industry. Additionally, the increase in duty on printed circuit board assemblies (PCBA) for specific telecom equipment from 10% to 15% aims to encourage local manufacturing. Government’s prioritization on jobs, agriculture and energy sector will provide long term growth opportunities to tech & durables sector.”

Mr. Sanjay Dighe, CEO of Krystal Integrated Limited Services:

“The Union Budget 2024 presented by Finance Minister Nirmala Sitharaman outlines a comprehensive vision for India’s growth, with a strong emphasis on job creation, skill development, and social justice. The government’s focus on employment generation and upskilling initiatives is particularly encouraging for the facility management and staffing sector.

The introduction of three key schemes under the Prime Minister’s package is a significant step towards boosting the job market. The government’s commitment to support 210 lakh first-time employees, incentivize job creation in the manufacturing sector, and reimburse employers for additional hires will undoubtedly stimulate employment opportunities. The plans to upgrade 1,000 Industrial Training Institutes and the new centrally sponsored scheme to skill 20 lakh youth over five years are welcome moves. These initiatives, coupled with the focus on women’s participation in the workforce through working women hostels and specific skilling programs, will foster a more inclusive and skilled labour force. These progressive measures lay a strong foundation for building a more prosperous and skilled India.”

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. Shalya Gupta, CEO, PHF Leasing Limited:

This budget focuses on job-creation and we welcome the steps that will ensure that the first timers / interns / youth will get a level playing field. The PM Package for Employment linked Incentives is a brilliant way to incentivise private and public sector in skilling of the youth of the country, so that they are able to eke out a respectable living. Companies like ours which hire and skill a large number of first time job seekers will benefit and be rewarded. It will also encourage companies to hire more youngsters, which will make a sizeable dent to the issues of joblessness and employability.

Ankit Patel, Co-Founder & CBO of eFeed :

While Budget 2024 introduced several measures for the agricultural sector, it notably fell short in addressing the specific needs of cattle farmers. To increase their income, the government should consider targeted subsidies for cattle feed, investment in veterinary healthcare, and incentives for sustainable farming practices.

Sriram PH, Co-Founder & CEO at DaveAI:

I believe Budget 3.0 is a forward thinking one, especially with a focus on digital infrastructure, innovation and research & development. The roadmap towards a developed country is promising for entrepreneurs building from India. The proposal to abolish the Angel tax will play a key part in facilitating an environment that boosts investments and ease of doing business. We expect robust implementation of initiatives proposed to enable a strong environment fostering deep technology investments in the country.

Dilshad Billimoria, Founder, Managing Director, and Chief Financial Planner at Dilzer Consultants Pvt Ltd:

“The 2024 budget brings significant changes that will impact investors and salaried individuals. At Dilzer, we view these adjustments as important steps in shaping India’s financial landscape. The revision of the Long Term Capital Gains Tax rate to 12.5% with an annual exemption of ₹1.25 lakhs for listed securities held over 12 months could encourage more long-term investments, aligning with our wealth creation philosophy. We await clarification on Short Term Capital Gains taxation for comprehensive planning.

For salaried employees, the increase in Standard Deduction to ₹75,000 is a welcome relief that could boost disposable income. At Dilzer, we’re committed to helping our clients navigate these changes effectively. We’ll be analyzing the budget’s finer details to provide tailored advice on integrating these new provisions into our clients’ financial strategies, ensuring we continue to create personalized, long-term plans that adapt to the evolving fiscal environment while meeting individual objectives.

Rutvi Sheth, Director, Advait Greenergy Private Limited:

Rutvi Sheth, Director, Advait Greenergy Private Limited, says, “The 2024 budget’s allocation of Rs. 600 crore for the National Green Hydrogen Fund marks a significant milestone in India’s journey towards net-zero emissions by 2070. At Advait Greenergy, we view this as a transformative opportunity for the sustainable energy sector, perfectly aligning with our mission to provide innovative infrastructure solutions for the power and telecom industries.

As leaders in overhead transmission line solutions and renewable energy infrastructure, Advait Greenergy is well-positioned to play a crucial role in India’s Green Hydrogen initiative. This fund will accelerate the development of Green Hydrogen, green ammonia, and carbon capture technologies, areas where our expertise in power transmission and distribution will be invaluable. We are committed to driving the transition towards a greener, more sustainable future.”

Rajesh Singla, CEO & Founder of Planify:

The budget, presented by Finance Minister Nirmala Sitharaman, has introduced several pivotal reforms aimed at reshaping the financial landscape.

One of the most notable changes is the hike in the tax rate for equity investments held for less than one year, which has been increased to 20% from the previous 15%. For shares held for more than 12 months, the long-term capital gains (LTCG) tax has been raised to 12.5% from 10%. This adjustment is expected to impact investor behavior, potentially leading to a more cautious approach in short-term trading.

Additionally, the budget has seen a hike in the Securities Transaction Tax (STT) on futures and options (F&O) securities by 0.02% and 0.1%, respectively. This move, aimed at curbing rampant F&O trading, resulted in a sharp market reaction, with a 400-point drop immediately following the announcement. The increased STT rates mean that equity and index traders will now face double the tax for their trades, which could lead to a more stabilized market in the long run.

In a significant boost for the startup ecosystem, the budget has abolished the angel tax, a move that is expected to encourage more venture capital (VC) funds and investors to support early-stage startups. This bold move addresses a long-standing concern in the startup community and aligns perfectly with our mission to democratize startup investments. By removing this significant barrier to capital raising, the government has paved the way for increased domestic and foreign investments in Indian startups. This decision, coupled with the existing valuation methods for non-resident investors, creates a more favorable environment for innovation and growth.

Rajesh Singla emphasizes that these changes, while initially challenging, are crucial for long-term economic stability and growth. “The abolition of the angel tax is a welcome move that will undoubtedly spur innovation and investment in the startup sector. As a platform connecting investors with promising startups, we anticipate this change will catalyze a new wave of entrepreneurial activity and investment opportunities in India,” he states.

By aligning with the government’s roadmap, Planify aims to contribute significantly to the growth of the startup ecosystem and, consequently, the broader economy.

Mr Neeraj Raja Kochhar Chairman & Managing Director of Viraj Profiles Pvt. Limited:

The government’s Rs 1.48 lakh crore provision for employment and employability, particularly in recognizing first-time employees and incentivizing job creation, is a significant boost for the steel industry. As a leader in stainless steel manufacturing, we at Viraj welcome these initiatives that will strengthen our workforce and enhance productivity. The focus on sustainability and heavy engineering also resonates with our commitment to eco-friendly practices and cutting-edge technology. This budget sets a positive trajectory for the steel sector, supporting our mission of ‘Make in India for the World’ while contributing to sustainable industrial growth.

Deepak Chaudhary, Founder of Urban Tots:

“With the upcoming budget presentation by Finance Minister Nirmala Sitharaman, the Modi 3.0 government’s focus on revamping the PLI scheme to include more labor-intensive sectors is promising for industries like toys. The significant increase in allocation, projected to reach Rs 14,167.1 crore in FY25, signals a robust support framework for MSMEs and job creation. At Urban Tots, we are optimistic about the potential benefits this policy shift will bring, enabling us to scale operations, boost employment, and contribute to India’s economic growth”

Sudhindra Holla, Director, Axis Communications, India & SAARC:

“The ‘Viksit Bharat’ Budget 2024 charts an ambitious course for India’s future. The government’s strong focus on the 9 pillars of growth, especially, Manufacturing, Urban Development, Energy Security and Infrastructure will accelerate the creation of new opportunities for the nation’s growth.

The substantial investment planned for the tourism sector could significantly boost our international tourism and, in turn, our economy. Also, the budget allocation for transport infrastructure showcases the groundwork for accelerated economic development and better connectivity across India. For the safety and surveillance industry this indicates an increased responsibility of making the tourism and transportation industry robust and safe.”

Dr K Hari Prasad,Group Chairman & Non-Executive Director,Quality Care India Ltd:

“Thank the Finance Minister for her continued efforts in making healthcare more accessible by exempting additional cancer medications from customs duties, building on the exemptions introduced in the last budget. This, along with the customs duty exemptions for foods and drugs used for rare diseases, significantly alleviates the financial burden on patients who are already grappling with the trauma of their conditions.

We eagerly anticipate further exemptions for drugs and medical consumables related to other lifestyle diseases, which will help make healthcare accessible to even more people. However, it is worth noting that the increase in the healthcare budget allocation compared to the previous year is marginal. There is still a pressing need to substantially bridge the gap in achieving the vision of quality healthcare for all.”

Mr. Kalyan Chakrabarti, CEO, Emaar India:

“We at Emaar India welcome the Union Budget 2024-2025, as it reflects the government’s strong commitment to improving urban housing. This budget lays a robust foundation for a dynamic, inclusive, and sustainable urban housing environment, ensuring long-term benefits for all stakeholders We are excited about these positive changes and are committed to playing our part in building high-quality projects that support this vision.”

This ₹10 lakh crore investment is a strong step towards creating an inclusive and sustainable urban ecosystem. Making affordable loans more accessible will effectively help people in achieving the dream of homeownership. At Emaar, transparency is our core value and therefore we firmly support the emphasis on transparency and believe that a fair rental housing system will create a more trustworthy and balanced housing market.

Key infrastructure developments, such as better water supply and sanitation, effective sewage treatment, and solid waste management, will significantly enhance the quality of life across the country. Additionally, lowering of stamp duty for properties purchased by women is a commendable move towards gender equality in property ownership and empowering women. Furthermore, the comprehensive internship program for one crore youth in leading companies, along with women-specific skilling programs, are strategic initiatives designed to boost workforce participation and drive economic growth.

Dr Krishna Prasad Vunnam, Founder & Managing Director,Ankura Hospital:

According to Dr Krishna Prasad Vunnam, Founder & Managing Director. “I commend Finance Minister Nirmala Sitharaman for presenting a thoughtful and inclusive budget today. The increased focus on healthcare, with substantial allocations towards infrastructure development and public health initiatives, is both timely and necessary.

At Ankura Hospital, we are particularly encouraged by the exemption of customs duty for Rare Diseases like Cystic Fibrosis as also significant emphasis on maternal and child health. The dedicated funds for improving neonatal care and paediatric services align perfectly with our mission to deliver the highest quality of care to mothers and children. These initiatives will undoubtedly enhance our ability to provide comprehensive and specialized services to this vulnerable population.

Overall, this budget demonstrates a strong commitment to building a resilient healthcare system. We look forward to supporting and implementing these initiatives to contribute to the nation’s health and well-being.

Given the rapidly rising cancer cases in India, the initiative to promote cervical cancer vaccination among girls aged 9-14 marks a momentous turning point that has been declared in the budget. The government is stressing the need for timely prevention and health awareness among young girls and their families. This move will empower future generations with the knowledge they require to prevent cervical cancer. By increasing accessibility to the HPV vaccine, it is possible to address misconceptions and stigma related to cervical cancer. Preventive measures are encouraged for girls to lead healthy lives. Likewise, the launch of the Unorganised Worker Identification Number (U-WIN) platform is a significant leap with a focus on immunization management and the ambitious Mission Indradhanush. By streamlining vaccine distribution through real-time data tracking, U-WIN will ensure that the vulnerable populations can get timely vaccinations which will reduce the burden on the healthcare system.”

National, 23rd July, 2024: The Gem & Jewellery Export Promotion Council (GJEPC), India’s apex trade body for Gems & Jewellery ) hailed the first Union Budget of Prime Minister Shri Narendra Modi 3.0 government presented by Finance Minister Smt. Nirmala Sitharaman for the seventh historic time as a game changer for the indigenous gem & jewellery industry.

Hon. Finance Minister acknowledged that India is a world leader in the diamond cutting and polishing manufacturing, which employs more than a million skilled workers. GJEPC said that the abolition of equalisation levy and announcement of safe harbour tax on rough diamond trading will see the growth of India as the largest rough diamond trading centre as all foreign mining companies will now trade rough diamonds directly to the diamond cutting and manufacturing entities in India. Thus the small manufacturers will get the access of raw materials in India directly from diamond miners without need to travel abroad to take part in diamond auctions.

GJEPC welcomes FM’s decision to exclude the diamond sector from the 2% Equalization Levy (EL) on sales of rough diamonds. This will help to maintain India’s leadership in the diamond industry and ensure operational sustainability. Equalisation Levy at the rate of 2 per cent of consideration received for e-commerce supply of goods or services, shall no longer be applicable on or after 1st August, 2024.

Hon. FM’s acceptance of GJEPC’s long-standing recommendation for simplifying taxation rules on sale of diamonds in Special Notified Zones (SNZs) by foreign miners alongwith abolition of equalization levy for bidding of rough diamonds online by our diamond manufacturers is a game changer. GJEPC welcomes the Government’s proposal to provide for safe harbour rate for foreign mining companies selling rough diamonds in the country and abolition of equalization levy. This will put India on equal footing with global trading centres such as Belgium and Dubai. This will further promote the development of the gem & jewellery sector. As apex trade body, GJEPC has been seeking the same and has made several pre-Budget recommendations on this matter.

FM’s announcement will expand the ambit of entities entitled to operate through SNZs. SNZs were established with the prime objective that there would be easy availability of rough diamonds by creating efficiencies in procurement of rough diamonds by allowing overseas diamond mining companies to sell their produce directly to Indian manufacturers through such SNZs. Sale is allowed in countries like Belgium and Dubai, while there is no direct tax on sale of displayed rough diamonds in Dubai and there is 0.187% turnover tax on sale in Belgium. GJPEC has proposed the establishment of an SNZ for rough gemstones in Jaipur. With these SNZs in Mumbai and Surat, the critical issue of raw material availability would be greatly relieved.

GJEPC applauds Hon. FM’s proposal to reduce custom duties on gold and silver to 6% and that of platinum to 6.4% to enhance domestic value addition in gold and precious metal jewellery in the country. India’s gem and jewellery industry heavily relies on imports for its raw materials, including gold, diamonds, silver, and colored gemstones. These materials are brought into the country and undergo either cutting and polishing or are transformed into finished jewellery before being exported worldwide. As apex body, GJEPC has been seeking this reduction in its pre-Budget recommendations to enhance exports. The reduction in duties of gold, silver and platinum will ensure that duty blockage of around Rs. 982.16 crore can be released resulting in more working capital in hand of the exporters. This will help in growth of manufacturing due to enhanced demand for jewellery at domestic level and realise the untapped export potential for gold jewellery with more working capital (at least US$2 billion of US$ 11 billion in medium period of 2 years).

FM highlighted the Government’s efforts to rationalize the tax structures to promote domestic manufacturing increase exports, enhance global competitiveness. Version 2.0 of the Jan Vishwas Bill will enhance ease of doing business.

MSMEs and artisans/craftsmen in the gem & jewellery industry will benefit from the e-commerce exports hubs, which will be set up in public private participation to facilitate trade and export related services under one roof. To sell their products in international markets, these hubs, under a seamless regulatory and logistic framework, will facilitate trade and export related services under one roof. Craftsmen and Artisans will benefit from the stepping up of schemes such as PM Vishwakarma, PM SVANidhi, National Livelihood Missions, and Stand-Up India.

The setting up of Industrial Parks in association with the State Government will encourage development of Gem & Jewellery Parks across the country in addition to the one being developed in Navi Mumbai by the Council. FM’s proposal with respect to Rental housing with dorm like accommodation for industrial workers will be facilitated in PPP mode is welcome.

FM stated that rules and recognition for Foreign Direct Investments (FDIs) will be simplified to facilitate their inflow. This move aims to prioritize and promote the use of the Rupee for overseas investments. FM’s Union Budget showed that the Government is aiming to make Indian rupee to become the world’s alternate reserve currency.

The Budget’s emphasis on labour intensive manufacturing by MSMEs – who comprise 80% of the gem & jewellery industry – will help them grow and compete globally. Credit guarantee scheme in the manufacturing sector will give a stimulus to MSMEs for modernising machinery and equipment.

The Government has given a big push on employment-linked skilling and this will benefit the 5-million plus workforce of the indigenous gem & jewellery industry. job creation in the manufacturing sector will be incentivized through a scheme linked to the employment of first-time employees. We hope that the Government’s move for more women in workforce and initiatives announced for women workers will inspire more women to join the gem & jewellery industry.

The Government’s focus on existing and new industrial corridors especially in Eastern India will help GJEPC to promote new gem & jewellery clusters for exports.

The allocation of Rs. 2 lakh crore for facilitating employment and skilling for 4.1 crore youth for a 5-year period will benefit new workers in the 5 million plus labour force of the Indian gem & jewellery industry. The Direct Benefit Scheme for new entrants will encourage more youngsters to join the gem & jewellery industry.

Finance Minister’s Budget primarily focussed on economic reforms for Land, Labour, Capital and Entrepreneurship to increase the employment, especially for the labour intensive sectors in India like gems & jewellery. This coupled with incentives and investment for skill development of the workers and artisans will really give immense boost to our sector.

The 9 priorities including focus on Manufacturing & Services will aid Make in India and Atmanirbhar Bharat.

Vipul Shah, Chairman, GJEPC, reacts to the Union Budget presented by Union Finance Minister Smt. Nirmala Sitharaman on 23rd July 2024

“The Union Budget 2024 is a game-changer for the gems and jewellery sector. The reduction in import duties on gold and silver to 6% and platinum to 6.4% is a major boost for our industry, enhancing affordability for consumers and competitiveness for the manufacturing sector by releasing working capital. The abolition of the 2% Equalization Levy and introduction of the Safe Harbour Rule on sale of rough diamonds at SNZs will firmly establish India as a global rough diamond trading hub. These combined measures will propel the sector’s growth, generate lakhs of employment opportunities by benefitting the small-scale jewellery manufacturers & exporters and diamond cutters and polishers, thus contribute significantly to India’s vision of becoming a Viksit Bharat by 2047.”

New Delhi February 3, 2024: Finance Minister Nirmala Sitharaman‘s sixth consecutive budget presentation, the last one before the General Elections, has concluded. Breaking down the complexities and deciphering the budget’s profound impact, the Times of India proudly introduces its annual flagship property, the Right to Excellence Budget Masterclass. The event will feature Amitabh Kant, former CEO of Niti Aayog, known for his insightful perspectives on economic matters.

Taking place on February 5, 2024, in Delhi, this masterclass is set to unite policymakers, experts, and finance gurus to decode the pivotal announcements made by the Finance Minister.

Prasad Sanyal, Business Head, Times of India Digital, said, “We hope this Budget masterclass helps people understand the impact of the announcements made by the Finance Minister. It’s essential for individuals and businesses to stay informed about the budget’s implications. Our Budget Masterclass will provide valuable insights and analysis to help people navigate the potential impact of the Union Budget on their personal and professional finances.”

• Here’s an overview of the sessions that will be part of the Masterclass:
•  Navigating Tax Changes: Understanding the implications of introduced tax changes and their impact on personal finances.
•  Fueling Growth: Exploring strategies outlined in the Budget to foster economic growth.
•  Sector Spotlight – Revolutionizing the Automobile Sector: Gaining Expert Insights on How the Budget Will Impact the Auto Industry.
•  Fireside Chat: Budget Planning for Businesses: Delving into how businesses can strategically plan decisions in alignment with fiscal policies.
•  Fireside Chat: Revolutionizing the Automobile Sector – Innovations, Sustainability, and Future Trends: An in-depth expert perspective on how the budget will shape the future of the automobile sector.

Shashank Srivastava, Sr. Executive Officer, Marketing and Sales at Maruti Suzuki India Ltd, one of the key panellists on the Masterclass, said, “I am very excited to be a part of TOI’s Right To Excellence Budget Masterclass. Today, I will be talking about the blueprint that the interim budget has provided the industry at large to sustain India’s economic growth. Furthermore, I will also discuss the budget’s impact on the auto sector, what measures need to be taken to continue the growth momentum in the sector, and future trends.”

Mr. Gaurav Jalan, Founder & CEO, mPokket

“In India’s dynamic fintech landscape, 2024 promises a revival of business growth and steadfast support for advanced technologies. As the interim Budget for the fiscal year 2024-25 approaches, scheduled to be presented by Union Finance Minister Nirmala Sitharaman on February 1, 2024, we anticipate that the Interim Budget will align with the industry’s expectation for continued momentum in financial inclusion and innovative lending solutions for MSMEs and the Indian youth.

Whether it was improving business fundamentals, adapting to revised regulatory norms, or braving the funding winter, fintechs have displayed tremendous agility and fortitude in managing these challenges. We are optimistic about the measures that will propel the growth of India’s fintech segment. Our primary hope revolves around a strategic focus on fostering financial inclusion, particularly in Tier 2, 3, and 4 cities, underpinned by the establishment of a robust trust-based lending ecosystem. We also await initiatives that will standardize lending practices and encourage collaboration between banks, notably Public Sector Banks and fintech firms.

The Budget is expected to highlight the importance of expanding digital public infrastructure, such as Account Aggregator and OCEN, to facilitate broader financial inclusion and unlock more data for intelligent lending practices.

Given the pivotal role of fintechs in driving the start-up ecosystem’s growth in the country, we look forward to a supportive fiscal policy approach that enhances the attractiveness of investments in this segment. Moreover, the Budget could create an enabling environment for sustained innovation and the digital delivery of services by the fintech industry, positioning it for the predicted dominance over traditional bank lending by 2030. Finally, we also anticipate a nuanced, supportive approach towards ESOP taxation and fostering talent retention.”