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India struck a balance between greater spending on jobs and rural development while narrowing the fiscal deficit in its 2024-25 budget unveiled on Tuesday.

The government will spend $24 billion on job-spurring efforts over the next five years and $32 billion on rural development this year alone, Finance Minister Nirmala Sitharaman said while presenting the budget to parliament.

Following are reactions from industry executives, experts, fund managers and economists:

KARTHIK SRINIVASAN, CHIEF BUSINESS OFFICER, AT HDB FINANCIAL SERVICES, MUMBAI

"By facilitating the working capital needs, setting up food irradiation units and quality testing labs, and establishing e-commerce export hubs, the government is laying a robust foundation for MSMEs to thrive. These measures will empower small and medium enterprises to grow, compete globally, and drive economic growth."

"The introduction of a comprehensive credit guarantee scheme, coupled with significant provisions for long-term interest-free loans to states, underscores a commitment to fostering an aspirational India."

PANKAJ MOHINDROO, CHAIRMAN, INDIA CELLULAR AND ELECTRONICS ASSOCIATION, NEW DELHI

"The mobile and electronics industry is elated with the announcements, which will go a long way to enhance manufacturing, exports and our competitiveness."

YASHISH DAHIYA, CHAIRMAN & CEO, PB FINTECH, LONDON

"The reduction in the fiscal deficit target is a commendable step, which paves the way for fiscal discipline and sustainable economic growth. The abolition of the angel tax is a landmark decision for the start-up ecosystem."

"Start-ups are the backbone of innovation in India and this step removes a significant barrier for them and encourages investment."

ANUJ PURI, CHAIRMAN, ANAROCK GROUP, MUMBAI

"The focus on rural and urban job creation, if effective, may provide some boost to affordable housing, which has given a tepid performance since the pandemic. The move can help stir up housing demand in not just the top 7 cities but also the tier 2 and 3 cities."

AMARENDU PRAKASH, CHAIRMAN, STEEL AUTHORITY OF INDIA, NEW DELHI

"The government's retaining the capex for infrastructure on the lines of interim budget reinforces the strong fiscal support for the infrastructure sector. The focus on urban housing, enhancement of rural infrastructure, further improvement in road connectivity and development of various corridors is expected to boost domestic steel consumption."

"This commitment to enhance connectivity and build resilient infrastructure will not only drive steel consumption but also create a multiplier effect, benefit various sectors thereby contributing to the nation's overall economic prosperity.”

MANISH RAJ SINGHANIA, PRESIDENT, FEDERATION OF AUTOMOBILE DEALERS ASSOCIATION, NEW DELHI

"While the budget provides a robust framework for growth, the effective implementation of these policies will be crucial. We hope for continued support from the government in addressing specific issues faced by the auto retail sector, such as the transition to green mobility and the need for policies that support sustainable practices."

"The budget lays a strong foundation for future growth, and we are optimistic about the positive impact it will have on the auto retail industry."

JAYADEV GALLA, CHAIRMAN, AMARA RAJA GROUP, HYDERABAD

"Union Budget allocations for Andhra Pradesh is a step in the right direction."

"We eagerly await to see the actual allocations for other projects and the fulfillment of commitments made in the AP (Andhra Pradesh) Reorganisation Act. We look forward to continued support from the Centre as we work to rebuild the state."

SHRIPAL SHAH, MD & CEO, KOTAK SECURITIES, MUMBAI

"The increase in the tax rate on long-term capital gains and short-term capital gains on equity, along with the increase in securities transaction tax (STT) on futures and options, are aimed at moderating currently heightened activity levels and fostering a more sustainable pace of growth in the stock market."

"We anticipate a small period of adjustment as the market adapts to these new tax measures, but this will ultimately contribute to a sustainable investment landscape with balanced and orderly growth of the capital market."

HARSHA UPADHYAYA, CIO-EQUITY, KOTAK MAHINDRA AMC, MUMBAI

"The biggest focus of the budget has been on continuing fiscal consolidation and macro-stability. Impetus on skill development and employment generation are likely to be transformative in the long run."

TEJAS GUTKA, FUND MANAGER, TATA ASSET MANAGEMENT, MUMBAI

"While we await details from the fine print, prima facie, these announcements appear to be positive for construction companies. Housing finance companies, particularly those focused on low-ticket housing, would also be beneficiaries of the PM Awas Yojana."

"Having said that, the disbursements under such schemes in the past have made up a very small proportion of the loan books of these companies. On balance, we believe that these announcements are marginally positive for the sectors."

GAURAV DUA, HEAD OF CAPITAL MARKET STRATEGY, SHAREKHAN, MUMBAI

"The tinkering with the capital gains tax and the hike in the securities transaction tax has dented the sentiment in the market, though the Budget was positive from boosting consumption and focusing on capex."

"Markets are concerned that there could be a reduction in volumes due to tax hikes. However going by past experience, when STT was introduced, it did not actually lead to a significant drop in volumes."

SHISHIR BAIJAL, CHAIRMAN & MD, KNIGHT FRANK INDIA, MUMBAI

"The specific measures to introduce technological reforms within the regulatory framework for land, such as the digitization of land records and cadastral maps via GIS mapping, will vastly improve transparency in the sector."

RADHIKA RAO, SENIOR ECONOMIST, DBS BANK, SINGAPORE

"The budget balanced various objectives, with an incremental boost to key factors of production particularly labour and employment, along with tweaks to direct and indirect taxes."

"In essence, the budget aims to consolidate finances without imparting a negative impulse to growth and demand." 

SRINATH RAVICHANDRAN, CO-FOUNDER AND CEO, AGNIKUL COSMOS, CHENNAI

"Wonderful news for all of us in the (space) sector. This will help larger players emerge out of India's space start-up ecosystem. This also shows that the government is continuing to strongly back its vision of making India have a larger chunk of the global space economy."