Union Budget 2024 Live: Reactions Pour in After Nirmala Sitharaman Presents Budget

In a video message, Prime Minister Narendra Modi said that this Budget will strengthen the middle class. He said, "This budget will give power to the new middle class...This budget will help women, small businessmen, and MSMEs."

After the Union Budget was presented, Prime Minister Narendra Modi said that this budget is for the upliftment of all sections of society. He added that this Budget will develop small businesses, MSMEs, and farmers. He said, "The youth will get unlimited opportunities from the Budget. The middle class will get power from this Budget....Through this Budget, women, small businessmen, and MSMEs will get a new direction."

After the Union Budget was presented, opposition leader Rahul Gandhi said that the Budget is full of hollow promises, at the cost of other states. He added that it was a copy and paste of the Congress manifesto and other budgets. Gandhi has also said that the Budget provides no benefit to the common man.

Several leaders from the INDIA Bloc has also said that the Budget has copied the ideas of Rahul Gandhi. “I am glad to know that the Hon'ble FM has read the Congress Manifesto LS 2024 after the election results. I am happy she has virtually adopted the Employment-linked incentive (ELI) outlined on page 30 of the Congress Manifesto,” said senior Congress leader and former Finance Minister P Chidambaram.

An outlay of Rs 26,000 crore has been proposed by the Budget for improvement of road infrastructure in Bihar. Finance Minister Nirmala Sitharaman also said that the government will focus on building airports, hospitals and colleges in the country.

Reacting to the Budget, Bihar Congress chief and MP Akhilesh Prasad Singh told ANI, "...We didn't get the special package. It is an injustice to Bihar... We didn't get any special status or special package. The budget made announcements for the upcoming 10 years so that Nitish Kumar keeps supporting the government..."

Reacting to the Budget, Shripal Shah, MD & CEO, Kotak Securities said, "The increase in the tax rate on long-term capital gains and short-term capital gains on equity, along with the increase in 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.”

Shah further added, “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.”

“The increase in exemption limit for Long Term Capital Gains tax from ₹1 lakh to ₹1.25 lakhs is a welcome change. While the changes in rates for LTCG and STCG were not anticipated, the markets will take them in their stride,” said Venkat Chalasani, Chief Executive, AMFI.

He added, “We are happy to note that AMFI’s demand of change in definition of ‘Specified Mutual Funds’ under Section 50AA has been acceded to and will lead to rationalization in taxation for the funds affected hitherto.”

After Bihar received a significant boost from the upcoming Budget, Bihar Chief Minister Nitish Kumar told ANI, “On allocation for Bihar in #UnionBudget2024, Bihar CM Nitish Kumar says, "...I have continuously spoken for this (special status), I told them as well (NDA). I told them to give us either a special status or a special package...As a follow-up, they have announced aid for a lot of things...We were speaking of special status and a lot of people said that the provision for special status has been done away with much earlier. So, instead of that, aid should be given for helping Bihar. They have now started it...”

Finance Secretary TV Somanathan said that rural consumption will receive a boost due to schemes announced in Budget 2024. "It's difficult to quantify the boost in consumption but the rural schemes will have a multiplier effects," Somanathan said during the post-budget press conference.

After shedding over 1,100 and 400 points respectively, Sensex and Nifty ended the day flat. Sensex fell 73 points to end at 80,429 and Nifty fell by 30 points to end at 24,479.

Adani Wilmar MD and CEO Angshu Mallick lauded the Union Budget 2024. "I see great potential in the Rs 1.52 lakh crore allocation in the 2024 Union Budget for revolutionizing India's agriculture sector. This strategic investment will significantly enhance productivity, resilience, and sustainability."

He added, "These measures promise to optimize the agricultural value chain, boosting efficiency and competitiveness. The Digital Public Infrastructure (DPI) initiative, starting with a digital crop survey for Kharif in 400 districts, will stabilize rural economies and ensure 6 crore farmers and their lands are registered, facilitating the issuance of Jan Samarth-based Kisan Credit Cards. This budget sets a promising trajectory for the agriculture sector and rural economy, aligning with our mission to foster sustainable growth and prosperity in rural communities."

In her Budget speech earlier today, Finance Minister Nirmala Sitharaman announced comprehensive development of Vishnupad Temple Corridor and Mahabodhi Temple Corridor, modelled on the success of the Kashi Vishwanath Temple Corridor.

Aloke Bajpai, chairman, managing director and group CEO at ixigo, said, "The government's policy initiatives to enhance spiritual tourism are a welcome move towards growing domestic tourism as well as making India a global travel destination. We saw a 40-50% increase in demand for spiritual tourism last year, for destinations like Varanasi, Ayodhya and Tirupati. The government’s PRASAD Scheme has led to a remarkable transformation in Varanasi's tourism sector, attracting an unprecedented 100 million visitors to Kashi Vishwanath Dham after the corridor project completion. We expect a similar boost in tourism to Bihar and Odisha with spiritual tourism corridors coming up for Vishnupad Temple and Mahabodhi Temple at Bodh Gaya, along with comprehensive initiatives for Rajgir, Nalanda, and Odisha. We expect this to benefit our large next billion user (NBU) base which predominantly relies on buses and trains to access these spiritual towns, and where our market share continues to improve across modes of transport."

Andhra Pradesh got a significant boost in the Union Budget.Finance Minister Nirmala Sitharaman earmarked Rs 15,000 crore for the development of Andhra Pradesh's capital city this fiscal year.

Thanking the government for the Budget, Andhra Pradesh Chief Minister N Chandrababu Naidu said, “On behalf of the people of Andhra Pradesh, I thank the Hon'ble Prime Minister and Hon'ble Union Finance Minister for recognising the needs of our State and focusing on a Capital, Polavaram, industrial nodes and development of backward areas in AP in the union budget of FY 24-25.”

Finance Minister Nirmala Sitharaman presented the Union Budget today. Post this, West Bengal Chief Minister Mamata Bangerjee called the Budget directionless. She claimed that this is a Budget to support one party.

Banerjee told ANI, “They make tall claims and make promises during elections. But after they get votes, they forget Darjeeling, Kalimpong...People in the hills of Darjeeling should remember this. Let Sikkim get things, we have no objection but keeping Darjeeling deprived is not right...This Budget is anti-people, anti-poor and not for the common people.”

“Budget 2024-25 allocations towards skilling and employment and Startup growth marks a watershed moment in India's journey towards becoming the world's largest talent economy.

With a very strong emphasis on skilling and employment and bridging the talent-academia gap, GOI's allocations—to fuel aspirations of 4.1 crore youths, empower women to join the workforce, and provide tax benefits and loans like Skilling loan (upto INR 7.5 lakh) and Education loan (upto INR 10 lakh)—is a masterstroke, set to unlock India's demographic dividend and drive growth. This budget is not just a financial plan but a blueprint for a brighter future where India's youth will thrive and continue to lead global job requirements.

Innovative initiatives announced, such as the scheme to boost job creation in the manufacturing sector, incentives for EPFO contributions, and reimbursement for additional employee EPFO contributions, demonstrate the government's commitment to creating a conducive employment ecosystem. India's economic growth, described as a shining exception,’ will propel its focus on innovation and growth with a focus on job creation and skilling. The skilling loan and education loan initiatives will further empower India's youth to drive growth and innovation,” said Mayank Kumar, Co-founder & MD, upGrad.

After the Union Budget was presented today, Ashok Hinduja, Chairman, Hinduja Group of Companies (India) said that the Budget shows Modi 3.0 is all about continuing the path to Fiscal Consolidation with the Fiscal Deficit target of 4.9 per cent this year and 4.5 per cent the next. Meanwhile, Finance Minister Sitharamn has kept the capex figure at 3.4 per cent of GDP.

“The focus on the agri sector and housing infrastructure - affordable and urban - is substantive and augurs well. Quite a few changes in taxation have been announced which needs a detailed study. Higher FDI is expected with a reduction in tax on Foreign Companies from 40 to 35%. Overall, a good budget for the macro Indian Investment Climate but could have been better for Indian Investors,” said Hinduja.

Finance Minister Nirmala Sitharaman announced a Rs 10 lakh crore investment in the Pradhan Mantri Awas Yojana (PMAY). This includes a Rs 2.2 lakh crore assistance by the centre over a period of five years.

“Expanding the Pradhan Mantri Awas Yojana (PMAY), by making provision for 3 crore more houses in urban and rural areas under the scheme, is a significant step towards realising the government’s vision of ‘Housing for All’,” said Girish Kousgi, MD & CEO, PNB Housing Finance.

The investment of Rs 10 lakh crore under PMAY to meet the housing needs of one crore urban poor and middle-class families will streamline access to affordable housing, making home ownership more accessible to millions of Indians. The allocation of Rs 2.66 lakh crore for rural development underscores the government's commitment to improving living conditions, added Kousgi.

The union budget has largely been positive for Indian debt market, said Pankaj Pandey, Head of Research, ICICI Direct.

“The fiscal deficit of 4.9% is better than market expectations of 5.1%, while the borrowing estimate was maintained. The continued fiscal glide path over next two years (4.5% fiscal deficit by FY26) remains a key positive,” said Pandey.

The hike in long-term, short-term tax and STT, albeit negative to market expectations, is a move to improve the tax collection aimed at overall expenditure needs, added Pandey.

“The Budget has managed to pave the way towards inclusive economic growth, through measures that will encourage greater private sector participation while maintaining the fiscal glide path to 4.5% fiscal deficit in FY26,” said Anil G Verma, Executive Director and CEO, Godrej & Boyce.

Verma added, “The increase in standard deduction from Rs.50,000 to Rs.75,000 and favourable change in the tax slabs under the new regime will increase disposable income in the hands of consumers which is likely to boost consumption. This will provide the necessary impetus towards larger private investments in capacity building.”

“We commend the Indian government's recent budget, which places a significant emphasis on youth skill development and employment opportunities. The proposed initiative to equip 20 lakh young people with relevant skills over the next five years is commendable and timely, representing a strategic vision for the future. The commitment to upgrading over 1,000 ITIs is a welcome step forward in recognizing the importance of vocational training and upskilling to address the skill gap. This budget underscores the critical role of youth upskilling as an economic driver, providing a much-needed boost to India's growing workforce and empowering the government's Make in India initiatives,” said Warren Harris, CEO & MD, Tata Technologies.

“At Tata Technologies, we are committed to engineering a better world for our youth by supporting and enhancing these upskilling efforts, ensuring a future-ready workforce with the skills necessary to thrive in an evolving industrial landscape. With our established record in transforming government ITIs to technology hubs for upskilling youth on in-demand skills including Industry 4.0, we are keen to collaborate with the government to design and implement effective STEM-focused skill development programs. Our expertise in industry-specific training courses will be invaluable in this initiative,” he added.

Dr Anish Shah, President at FICCI, said that the budget had a strong thrust on quality job creation and skilling. He said, “FICCI congratulates the Hon’ble Finance Minister for delivering a growth-oriented budget that has delivered both short term demand stimulus and actions focused on medium to long term growth imperatives, while maintaining fiscal discipline. The budget is inclusive, with a strong thrust on quality job creation and skilling. It also strikes a balance between agriculture and manufacturing, with elements of services.

A common criticism by the opposition has been that the Budget is a copy of the Congress manifesto. Speaking about the same, former Finance Minister and Rajya Sabha MP P. Chidambaram said, “I am glad to know that the Hon'ble FM has read the Congress Manifesto LS 2024 after the election results.”

He added, “I am also happy that she has introduced the Apprenticeship scheme along with an allowance to every apprentice spelt out on page 11 of the Congress Manifesto. I wish the FM had copied some other ideas in the Congress Manifesto. I shall shortly list the missed opportunities.”

The Union Budget 2024 has increased the long term capital gains, LTCG tax from 10 to 12.5 per cent. Post this, the term LTCG has been trending on X, formerly Twitter.

Unhappy with the increase, netizens took to X to say that the increase in LTCG will impact the common citizens. A user asked, " How will middle class have savings when you tax all the investments?”

Additionally, another user said, “Dear ,Finance Minister please revise both STCG and LTCG. This is too much.. Don't hurt us anymore.”

Another user added, “The government had said before the election that they will never levy inheritance tax, isn’t the effect of LTCG of 12.5 percent on property the same? The only thing is that the beneficiary will be taxed only when they will sell the property and not when they receive it from their parents… but now they will have to pay the tax!!!!! Think again and share your viewpoint.”

The Union Budget that was released today, said that there will be an increase in securities transaction tax (STT) on F&O from 0.01 per cent to 0.02 per cent. Securities Transaction Tax is levied on the buying and selling process of equities.

Additionally, the Budget has increased the long-term capital gains tax (LTCG) to 12.5 per cent from 10 per cent. A capital gains tax is the tax levied on the prof sale of non-inventory assets.

The hike in STT and LTCG is definitely a negative for the investors, said Arpit Jain, Joint MD, Arihant Capital Markets Ltd.

“The street expected a level playing field for domestic and foreign investors by taxing the gains from equities for foreign institutions. Instead, LTCG was hiked which disappointed the market players.,” said Jain.

“While there will be some disappointment, we don’t believe it will deter people from investing in the Indian equities and the markets will normalize,” added Jain.

Under the new regime, the tax slabs are as follows:

Rs 0-3 Lakh: Nil

Rs 3-7 Lakh: 5%

Rs 7-10 Lakh: 10%

Rs 10-12 Lakh: 15%

Rs 12-15 Lakh: 20%

Above Rs 15 Lakh: 30%

The government’s focus on energy transition is admirable, as it is a critical component in the fight against climate change, said Atul Chaturvedi, Executive Chairman, Shree Renuka Sugars Ltd. In her budget speech, Finance Minister Nirmala Sitharaman said that the country needs to focus on climate finance taxonomy.

She added, “Appropriate regulations for [the] transition of these industries from the current Perform-Achieve-Trade mode to the Indian Carbon Market Mode will be put in place.”

The Union Budget has highlighted that there will not be any indexation benefit for property sales.

The Budget document reads, “With the rationalisation of rate to 12.5 per cent, indexation available under second proviso to Section 48 is proposed to be removed for calculation of any long-term capital gains, which is presently available for property, gold and other unlisted assets.”

The document says that this removal will ease the computation of capital gains for the taxpayer and the tax administration. Indexation, in simple words, means adjusting an asset’s value to consider the growing inflation. This in turn helps reduce tax rate for taxpayers.

Reacting to the removal, netizens expressed dissatisfaction about the same. Some even said that this is the worst decision of the government. One user said, “There is deep dissatisfaction among tax paying middle classes & the investor class due to increase in Long term capital gains & removal of indexation on assets like real estate.”