Budget 2024-25 prioritises R&D, education and business for MSMEs

Kiran Mazumdar Shaw, Chairperson, Biocon & Biocon Biologics

“The Union Budget for FY25 builds further on the government’s pre-election, Interim Budget and has positive indicators on how the government is looking at India’s economic growth and development. 

The FM’s emphasis on job creation through skilling is a key underlying theme. Internships at large companies with Government and CSR-backed stipends are the right approach to employability and jobs for the future. The budget has also focused on the start-up ecosystem and provided a fillip through the abolition of the ‘angel tax’ which is aimed at spurring investments in start-ups, and the emphasis on ‘ease of doing business’ will benefit MSMEs. 

The government’s focus on research and innovation, especially agritech and industrial research, is a welcome move. The allocation of Rs 1 lakh crore financial pool will spur private sector-driven research and innovation at commercial scale. We will need to read the details to see how this will be allocated to each sector. The removal of customs duty on three cancer drugs will provide relief to cancer patients. However, the government needs to consider GST exemption for all cancer drugs to make cancer care more affordable for patients.”

Dr Saloni Wagh, Director, Supriya Lifescience

“This budget represents a pivotal move towards a Vikasit Bharat, emphasising progress through targeted support for Garib (poor), Mahilayen (women), Yuva (the youth) and Annadata (farmers). Key focus areas include employment, skill development, MSME growth—vital for GDP and exports—and middle-class upliftment.

 The full exemption of basic customs duties on three cancer treatment medicines is a notable advance, promising substantial benefits for both the pharmaceutical sector and cancer patients. With a Rs 2,143 crore allocation under the Production Linked Incentive (PLI) scheme, India is set to lead globally in pharmaceuticals, with the domestic market projected to reach $ 130 billion by 2030. These steps are vital for achieving our $5 trillion GDP goal in three years and $7 trillion by 2030.

 Moreover, the Prime Minister’s package, Significant funds – Rs 2 lakh crore for employment and skill development, and Rs 1.48 lakh crore for education are allocated to drive job creation. Enhanced focus on women’s workforce participation through dedicated hostels and targeted skilling programs is also commendable. These initiatives are expected to deliver a skilled workforce crucial for innovation and precision industries.

 The budget also prioritises innovation, R&D, and education, fostering advancements across public and private sectors. The government’s commitment to these areas aims to boost research, enhance education quality, and develop a competent workforce. This emphasis will propel India’s technology and manufacturing sectors, positioning the country as a major global manufacturing hub.”