Top industry chambers laud fiscal consolidation, tax reforms, job creation

New Delhi, July 23: Leading industry chambers on Tuesday lauded the Union Budget 2024-2025, saying it is a people-centric budget which balances equitable growth with fiscal sustainability.

Sanjay Nayar, President of Assocham, said with no easy giveaways, the budget focuses on a longer, more sustainable path of job creation through manufacturing in the country and a strengthened role of the MSMEs.

"Skilling the youth, formalising job creation, continued infrastructure spending, and urban development, along with the climate of enhanced local capex spending will encourage the private sector to join in, given under levered balance sheets. This is a longer, more sure way to enhance employment and sustainable consumption," he contended.

Finance Minister Nirmala Sitharaman has fixed the fiscal deficit at 4.9 per cent of GDP despite higher allocations for social welfare schemes due to robust tax collections in a fast-growing economy.

According to Sanjiv Puri, CII President, the maiden budget of the new government has unravelled a comprehensive roadmap for sustainable and equitable growth while retaining the focus on the creation of jobs.

"The nine key priorities unveiled in the Budget for ‘Viksit Bharat’ provides an all-encompassing blueprint for an inclusive, resilient, prosperous, environmentally sustainable and technologically advanced India, which would be a crucial milestone in our journey for a developed India by 2047," Puri noted.

The pivot of the budget on employment, skilling, MSMEs and the middle class -- along with focused measures on agriculture, urban development, and incentivising states to carry out ‘NextGen’ reforms would contribute significantly towards empowering people, and making growth inclusive while providing an impetus to consumption and growth.

"In doing so, the Finance Minister deserves credit for displaying astute financial management by bettering the fiscal deficit target at better than expected 4.9 per cent of GDP for the current fiscal while retaining the focus on capital expenditure which is no mean achievement considering the daunting external milieu and its impact on India," Puri said.

Joyshree Das Verma, National President, FICCI FLO, said that the budget marks a significant stride towards enhancing women’s role in India’s economic development.

"The allocation of more than Rs 3 lakh crore for women-specific schemes and skilling programmes underscore the government's commitment to women-led development and enhancing economic inclusivity," she said.