Budget 2024 Is in Line with Expectations and Will Create Jobs: CII

Welcoming budget 2024, CII Chairman Sanjiv Puri said that the initiatives like internships will provide skilled workers to industries while several other measures will bolster sustainable growth. With the new initiatives in the budget, the SME and MSME sectors can create more employment opportunities. Reports ETV Bharat's Saurabh Shukla.

New Delhi : The industry has reacted positively to the budget 2024, saying that it aligns with their expectations. The Confederation of Indian Industry (CII) asserts that the budget will not only create more jobs but will also boost the economy.

Speaking exclusively to ETV Bharat, CII Chairman Sanjiv Puri said that this budget was job-oriented. According to him, the government's focus on reforms will generate significant employment and stimulate the economy. Sanjiv highlighted that initiatives like internships will provide skilled workers to industries, while new measures in agriculture and those for women will foster sustainable growth.

CII Director General Chandrajit Banerjee informed ETV Bharat that the budget met expectations, and going forward, the SME and MSME sectors can create more new jobs. He added that the extension of EPFO contributions will also bolster job creation.

Housing Sector

Anuj Puri, Chairman of ANAROCK Group, remarked, "Covering a wide spectrum of Indian sectors, the first Union Budget of Modi 3.0 focuses on MSMEs, employment, skilling, youth, and the middle class. It will generate a mixed bag of reactions from different sectors. From a real estate perspective, the government's continued focus on infrastructure with an allocation of over Rs 11.11 lakh crore - nearly 3.4% of India’s GDP - stands out. Improved infrastructure drives real estate growth."

He further added that the emphasis on rural and urban job creation, if effective, could stimulate demand for affordable housing, which has been lackluster since the pandemic. This move may boost housing demand not only in major cities but also in tier 2 and 3 cities.

Economist's View

Aditi Nayar, Chief Economist and Head of Research and Outreach at rating agency ICRA, commented, “The Union Budget maintained capital expenditure unchanged and reduced the fiscal deficit to 4.9% of GDP, in line with ICRA's estimates, although the reduction in borrowings is smaller than anticipated. The reaffirmation of lowering the fiscal deficit to below 4.5% of GDP in FY2026 is positive. Interestingly, the new medium-term fiscal consolidation path links to a reduction in the debt-to-GDP ratio rather than continued compression of the fiscal deficit-to-GDP ratio. This approach allows the government flexibility to plan higher capital spending and support climate goals in an uncertain global environment."

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