ICC organises ‘Live Viewing of Union Budget 2024-25’

Kolkata, 23rd July 2024: Indian Chamber of Commerce (ICC) organised Live Viewing of Union Budget 2024-25 to discuss the standpoints of the chamber. The session witnessed valuable insights from Ameya Prabhu, President, ICC (virtually); Brij Bhushan Agarwal, Vice President, ICC & Vice Chairman and MD, Shyam Metalics; Pallav Gupta, Ex-Head, Taxation, ITC Ltd; M K Saharia, Chairman, Saharia Group; Rahul Kyal, MD, Vinayak Group; and Ashish Chhawchharia, Practice Head-Eastern Region, Grant Thornton India LLP.

Commenting on the overall Budget session, President, ICC and Founder & Managing Director of NAFA Capital Advisors Pvt Ltd, Mr. Ameya Prabhu, stated, “This is a government that listens. We have given recommendations on the rationalisation of custom duties, and while she announced rationalisation in a few sectors, I think once we go through the fine print, we will understand how many customs duties have been rationalised. Our idea about rationalisation was twofold: Firstly, we need to protect sectors with strong domestic manufacturing to prevent dumping from other countries. Secondly, we should have lower customs duty on raw materials so that our downstream sectors can benefit. I am glad that this government has taken that into account. Our role is to speak to the government and give recommendations for our industry as a whole. It is a government that listens and I am happy about that. India is a federal country and the government has to think about all the states. I believe the budget is made for the entire country. Certain states will get an impetus. For example, Andhra Pradesh needs a new capital and if Amravati is getting support from the central government, it is the right thing to do. West Bengal has a lovely capital in Kolkata but Andhra Pradesh needs a new capital post-bifurcation. Overall, the budget benefits the whole country. Being a national chamber, we have seen that the budget has done a lot for the seafood industry, benefiting states like Kerala and Tamil Nadu. Seafood exporters in West Bengal, including members of the Indian Chamber of Commerce, will also benefit. The budget encourages renewable energy and the removal of NGL taxes, benefiting startups in Telangana, Maharashtra and Karnataka. Of course, there will be times when more emphasis is placed on a few states, as they may need more support. Similarly, in state budgets, some districts may need more funds due to floods, droughts, or other natural disasters. The state has to support them. So, I believe this is the right decision.”

After reviewing the budget, Mr Brij Bhushan Agarwal, Vice President, Indian Chamber of Commerce & Vice Chairman & MD Shyam Metalics and Energy Ltd., commented, “This is a very balanced budget. The government’s focus is on the agricultural sector, digitalisation, transparency and improving farmer income. They are also prioritising employment by creating platforms for MSEs through loans and infrastructure support. Additionally, the focus on liberalisation and nurturing new entrepreneurs is promising. Mudra Loans have been increased to enhance women’s roles and upgrade their status. Energy remains a key focus with plans to increase power generation capacity using super ultra-critical power plants and exploring nuclear options to meet growing demands. Efforts to control inflation and maximise available resources and infrastructure are evident. The budget also addresses the development of underdeveloped states like the Northeast and Bihar. On the tax side, there have been changes, including an increase in the buyback tax and adjustments to the capital gains structure. The reduction of foreign tax from 40 percent to 35 percent is a positive step, showcasing the country’s welcoming approach.”