Post-Budget LIVE: FM dismissed inflation ‘in 10 words’: Chidambaram in RS

Edible oil industry body SEA on Wednesday said the government should provide adequate funds for achieving its target to boost domestic production of oilseeds but expressed disappointment that import duties on cooking oils were not increased in the Budget.

In her budget speech on Tuesday, Finance Minister Nirmala Sitharaman said, “For achieving self-sufficiency in pulses and oilseeds, we will strengthen their production, storage and marketing.”

Reacting to the Budget proposal, Solvent Extractors' Association of India (SEA) President Ajay Jhunjhunwala said, “We congratulate the government for announcing the National Mission for Edible Oils focussing on key oilseeds like mustard, groundnut, sesame, soybean, and sunflower.” This initiative encompasses crucial aspects such as research for high-yielding varieties, the widespread adoption of modern farming techniques, establishment of market linkages, procurement, value addition and crop insurance, he said in a letter to the members of the association.

However, the SEA President rued that import duties on cooking oils were not hiked.

“We are a bit disappointed by the fact that no announcement has been made on increasing import duties on edible oils as well as raising the duty difference between crude oils and refined oils to a minimum of 15 per cent,” Jhunjhunwala said.

He said the association has been requesting the government to increase import duties on edible oils to help incentivise oilseed farmers, “but it seems it has missed the attention of the Finance Minister”.

“The domestic refining industry has been suffering due to heavy imports of refined edible oils which is contrary to our Prime Minister’s ‘Make in India’ dream. The capacity utilisation of our refining industry is suffering very badly and also resulting in loss of employment opportunities,” Jhunjhunwala said.

Revenue Secretary Sanjay Malhotra on Wednesday said the changes in Long-Term Capital Gain Tax (LTCG) announced in the Budget by Finance Minister Nirmala Sitharaman will benefit most of the people investing in the real estate sector.

The Budget has lowered the LTCG from 20 per cent to 12.5 per cent but removed the indexation benefits. The indexation benefit allowed taxpayers to compute gains arising out of the sale of capital assets after adjusting inflation. The proposal has raised apprehensions that a person selling his property will have to pay a higher capital gains tax.

“This is mostly a simplification exercise. Some people have expressed apprehension on the removal of indexation. I want to allay their concerns that while indexation has been removed at the same time the tax rates have been substantially reduced from 20 pc to 12.5 pc. This will benefit most of the people investing in real estate in the long term as the rate of return is more than 10-11 per cent,” Malhotra told news agency PTI.

There will also be a rollover benefit, he said adding that, “If you are reinvesting the sale proceeds in buying a house, then there is no tax on capital gains up to Rs 1 crore gains.”

As per the changes brought in the 2024-25 Budget, the government has retained the indexation benefit for taxpayers on properties bought or inherited before 2001. The changes in the tax rate have been made effective from July 23, 2024.

As the government continues its thrust on comprehensive development of villages located remote areas along the border with China, the Union Budget has allocated Rs 1,050 crore for the Vibrant Villages Programme (VVP) that will benefit select villages in 19 districts in Arunachal Pradesh, Sikkim, Uttarakhand, Himachal Pradesh and Ladakh.

The government approved the VVP as a centrally-sponsored scheme on February 15, 2023, with an outlay of Rs 4,800 crore for 2022-23 to 2025-26 for development of these villages in 46 blocks abutting the northern border.

The budget, presented by Union Finance Minister Nirmala Sitharaman on Tuesday, has earmarked Rs 1,050 crore for the VVP for 2024-25. The objective of the programme, implemented by the Union home ministry, is comprehensive development of these villages to improve the quality of life of people and thereby reversing out-migration, officials said.

One of the sectors identified for development is promotion of tourism and culture by augmenting various tourism-related infrastructure, promoting community managed home stays, organising local fairs and festivals, promoting eco-tourism, agro-tourism, wellness, wildlife, spiritual and adventure tourism and local cuisines.

Industry experts on Wednesday said the Union Budget’s emphasis on skilling, employment, and enhanced women workforce participation will facilitate job creation and overall growth.

Paid internships and the allocation of budget for schemes to boost women’s participation in the workforce is yet another announcement that is being lauded by the stakeholders. The strategic shift towards employment and skilling is a significant milestone that will facilitate growth in the employment sector in the upcoming five years, they said.

By facilitating higher participation of women in the workforce through various initiatives the government has also opened new doors for the drone industry to bridge the gender gap, said Sharad Khanna, Founder Director, Aebocode Technologies Pvt Ltd.

“This year’s Budget strikes a fine balance between women’s keen fiscal discipline and drivers of economic and social growth. Enhanced initiatives on women's empowerment and education underscore the focus on welfare schemes,” said Rakesh K Singh, Professor and Associate Dean, Academics, IMT Ghaziabad said.

The customs duty exemption proposed for three cancer medicines in the Union Budget will improve the affordability of the drugs, the Union Health Ministry said on Wednesday.

The request for customs duty exemption for Trastuzumab deruxtecan (for breast cancer or gastroesophageal adenocarcinoma), Osimertinib (drug for lung cancers with specific mutation), and Durvalumab (for lung and biliary tract cancers) was forwarded by the Health Ministry to the Ministry of Finance keeping in view 27 lakh cancer patients in the country.

The government proposes to cut customs duties on the three drugs from 10 per cent to nil.

Union Finance Minister Nirmala Sitharaman also revised the custom duty rates on X-ray tubes and flat panel detectors, a move which is expected to positively impact the X-ray machine industry by enhancing component availability at lower costs.

“This change is anticipated to boost the domestic medical device sector, contribute to component availability at lower costs and reduced healthcare costs, making advanced medical imaging more accessible and affordable,” the ministry said.

The budget expenditure for FY 2024-25 under the National Health Mission (NHM) has also been increased from Rs 31,550 crore to Rs 36,000 crore.

Trastuzumab injection 440mg/50ml is a scheduled drug. Its current applicable ceiling price is Rs 54,725.21 per vial. However, its other strength variants are not under the schedules list. Trastuzumab comes in different strengths and dosages with a combined annual turnover of more than Rs 276 cr, the ministry said.

The other two medicines — Osimertinib and Durvalumab — are non-scheduled medicines. Hence, NPPA monitors the maximum retail price (MRP) of the non-scheduled formulation to ensure the same does not increase by more than 10 per cent of MRP during the preceding 12 months. The annual turnover of Durvalumab for 2023-24 was Rs 28.8 crore, the ministry said.

The Budget announcements related to critical minerals and green transition will not only make India self-reliant in resources but also help in meeting net-zero goals, energy industry players said.

Amit Rautela, CFO of state-owned Meja Urja Nigam said the Budget has strategically addressed present requirement of thermal power with a focus on Advanced Ultra Super Critical (AUSC) technology through joint venture route. Further, duty related measures for critical minerals will make the country self-reliant in these important resources.

According to Rahul Walawalkar, President of India Energy Storage Alliance (IESA), the announcement for pumped hydro storage in the Budget is a key step for supporting long duration energy storage technologies. Abolishment of angel tax is a great and long overdue step boosting investors’ confidence and the promising EV and clean tech startup ecosystem.

Chetan Shah, CMD Solex Energy said the extension of Production-Linked Incentive (PLI) scheme with a Rs 5,000 crore allocation for solar PV manufacturing will significantly reduce import dependence and boost domestic production.

Additionally, the Rs 10,000 crore fund for solar infrastructure development, including solar parks and grid integration, is a pivotal step towards achieving renewable energy targets.

According to Hanish Gupta, Founder-CEO Sunkind Energy, the budget marks a seminal shift for India's renewable energy sector. By equipping one crore households with rooftop solar panels through PM Suryaghar Muft Bijli Yojana, the government is taking a big step toward reducing the country’s reliance on fossil fuels and reshaping the energy future.

Amit Paithankar, CEO, Waaree Energies said the expansion of the list of exempted capital goods for solar manufacturing may further strengthen the country’s ability to enhance domestic production capabilities, reducing reliance on imports and fostering self-reliance. Additionally, guidelines for energy efficiency and emission targets for 'hard to abate' industries may reduce India’s carbon footprint.

Anil Rawal, MD & CEO, IntelliSmart Infrastructure said, “The Budget aligns well with our commitment to development and climate action, targeting the goal of 500 GW of renewable energy capacity by 2030. Through smart meter rollouts, smart energy management, and reducing AT&C losses for discoms, we are dedicated to supporting this growth-oriented and pro-development agenda.”

According to Srivatsan Iyer, Global CEO, Hero Future Energies, the focus on transitioning “hard to abate” industries to greener alternatives will catalyze the commercial and industrial (C&I) sector’s journey towards net-zero. Introduction of a taxonomy for climate finance will help attract much needed capital for boosting climate resilience.

Raman Bhatia, Founder & MD, Servotech Power Systems said, “The increase of duty on non-biodegradable PVC flex banners from 10 per cent to 25 per cent is a commendable step towards environmental conservation, and projects including setting up of a 2400 MW power unit will add Bihar in the category of solar powered states.”