Fintech Leaders Insights on Union Budget

Union Finance Minister Nirmala Sitharaman presented the Budget for 2024–25 on Tuesday. By doing so, she surpassed the record of former Prime Minister Morarji Desai. The 2024 Budget is the first during Prime Minister Narendra Modi’s government’s third term in office. PM Modi praises the budget, as the Union Budget 2024 will benefit all sections of society and lay the foundation for a developed India.

Various fintech leaders are also continuing to discuss and share their reactions to the budget. Leaders are giving their insights on various social media platforms; however, some are in favour of the budget while others slam the budget.

Nilesh Shah, MD, Kotak AMC

While expressing their reaction to the budget, Nilesh Shah says Budget 2024 is like Suryakumar Yadav’s catch in the last cricket T-20 World Cup. It has achieved the trinity of the impossible: the path of fiscal prudence, support for investment in infrastructure, and generating employment to boost consumption. I hope and pray that eventually this catch helps us become Viksit Bharat.

Harshvardhan Lunia, founder and CEO, Lending Kart Group

Harshvardhan Lunia said, “The Union Budget 2024 is a testament to the government’s vision of ‘Viksit Bharat 2047’. It reflects the dedicated focus on overall infrastructure development and, more importantly, the betterment of the MSME sector. We particularly welcome the introduction of the credit guarantee scheme for MSMEs in manufacturing. The Finance Minister’s announcement to facilitate term loans for MSMEs for the purchase of machinery and equipment without collateral or guarantee is a significant move. We eagerly anticipate collaborating with our partner banks to streamline this process, thereby ensuring a consistent flow of credit to MSMEs. Overall, it is indeed encouraging to witness every stratum of our nation becoming an active participant in its economic growth. We look forward to seeing the positive impact of these measures on the fintech and MSME sectors and, by extension, the broader economy.”

Ashneer Grover, former managing director of BharatPe

“Instead of delivering this budget, they could’ve just said, ‘Iss baar man sa nahi kar raha, agli baar dekh lenge agar kuchh karna hai toh.’ Actually, watching yet another Ambani wedding function over this would’ve been more valuable and a better use of time.” Grover slams the budget.

Swaminathan Subramanian, Chief Operating Officer, SMFG India Credit

Swaminathan Subramanian, “We commend the government’s initiatives to enhance skills and boost women’s workforce participation. The revised skilling loan scheme, facilitating loans up to ₹7.5 lakh and upgrading 1,000 Industrial Training Institutes (ITIS), will significantly enhance workforce competencies. Financial support for higher education loans, working women hostels, and women-focused skilling programmes will promote diversity and inclusivity, driving holistic economic growth for the nation. The introduction of direct benefit transfers of one-time wages for first-time employees under the new Prime Minister’s Package is an admirable step. These comprehensive measures, including the Prime Minister’s package encompassing five schemes focusing on enhancing employment, education, and skills for youth with a central outlay of ₹2 lakh crore, will create substantial employment opportunities, create industry-ready candidates, and support MSMEs. This all-encompassing approach will strengthen our labour market and pave the way for a more skilled, talented workforce to enter the economy.”

Nithin Kamath, CEO, Zerodha

Nikhil Kamath’s elder brother, Nithin Kamath, also shared his views on the Union Budget. He specifically addressed the increase in STT and capital gains taxes. He highlighted that the STT on options will rise from 0.062% to 0.1% and on futures from 0.0125% to 0.02% starting October 1st. Additionally, the long-term capital gains tax will rise from 10% to 12.5% and the short-term capital gains tax from 15% to 20%, effective immediately. Nithin Kamath suggested that these changes might effectively cool down market activity.

It is obvious that the policies and schemes are framed for the welfare of stakeholders.

While addressing the session of the House, PM Modi said the budget will be a catalyst for making India the world’s third-largest economy. “This visionary budget will uplift and empower every stratum of our society, paving the way for a brighter future for all.”