~ Shrishti Sharma
Finance Minister Nirmala Sitharaman presented the Union Budget 2024, provisional in view of the Lok Sabha elections, highlighting the developments of the government in recent past.
Some of the key achievements and forecast highlighted by the minister were the success of PM-SVANidhi, helping 78 lakh street vendors, with 2.3 lakh benefiting three times, PM Mudra Yojana sanctioned 43 crore loans, totaling 22.5 lakh, encouraging youth entrepreneurship. Fund of Funds, Start Up India, and Start Up Credit Guarantee schemes contribute to youth employment. In agriculture, Pradhan Mantri Formalization of Micro Food Processing Enterprises Yojana is helping 2.4 lakh SHGs and 60,000 individuals through credit links, demonstrating a holistic approach to economic development.
The Budget Speech highlighted the government’s initiatives, including credit assistance to street vendors and major support for the entrepreneurial aspirations of the youth. The theme of the budget focused on “Viksit Bharat” and “Developed India by 2047”, with a new definition to GDP – Government, Development, Efficiency.
In the aftermath of the Budget presentation, Non-Banking Financial Companies (NBFCs) are poised for growth, envisioning new avenues. Meanwhile, Micro, Small, and Medium Enterprises (MSMEs) echo the need for tailored support, emphasizing their pivotal role in underpinning India’s economic renaissance.
While you’re still wrapping your head around the populist vs. pragmatic budget debate, Hear what NBFCs experts told ETBFSI.
Anand Bang, COO – Sales and Marketing, Tata Motors Finance:
“Much emphasis has been placed on strengthening the logistics sector through multi-modal development and connectivity interventions, particularly exemplified by the Gati Shakti initiative. We foresee huge opportunities for NBFCs to emerge as growth catalysts, facilitating last-mile credit access and tailored financial solutions for transporters and logistics players to meet their CV fleet expansion and upgrade requirements driven by India’s robust infra thrust.
Mr. Vishal Kampani- Non-Executive Vice President, JM Financial Limited:
“Capital expenditure is considerable, with specific mention of development in eastern India. The government’s commitment to achieving Net Zero by 2070 is evident, supported by announcements on solar rooftop schemes and viability gap funding for green initiatives. The lower than expected fiscal deficit target for FY25 shows commitment to fiscal consolidation, albeit at the expense of lower capital expenditure.”
Mr. Kishore Lodha, Chief Financial Officer, U GRO Capital:
“Extending Ayushman Bharat coverage to Anganwadi and Asha workers, along with strengthening maternal and child health care schemes, aims to address rural health challenges and foster opportunities for Healthcare MSMEs. Accelerating digitization is paramount to achieving the vision of a $7 trillion economy in today’s evolving digital global. fabric.”
Ketan Mehta, CFO, CredAble:
“There is a missed opportunity to enable the growth of MSMEs as part of the Indian ecosystem. Acknowledging MSMEs as a cornerstone of our economy is crucial for sustainable global competitiveness. The potential impact lies in the announcement of long-term interest-free loans for R&D in sunrise sectors, recognizing that strategic debt can act as a catalyst for innovation and research.”
Mr. Sudipta Roy, Managing Director and CEO, L&T Finance Holdings Ltd.:
“By presenting a fiscally prudent Budget, the government has created favorable conditions for the private capex cycle revival. A strong thrust given to rural housing and agri-allied activities augurs very well for the business model of retail-oriented NBFCs. Today’s Budget will improve. international investors’ perception of India’s macro-financial stability and strengthen India’s position as one of the best investment destinations worldwide.”