Cosmo and Henkel: Budget will propel industry to new heights

Pankaj Poddar, the group CEO of Cosmo First said, “We welcome the focus in the budget on creating job opportunities in the manufacturing sector and this coupled with support to the employers will propel the industry to new heights. Further, the introduction of a credit guarantee scheme for MSMEs and facilitating term loans to MSMEs for purchase of equipment without collateral or guarantee will go a long way to enhance access to capital in the sector.”

This year, 11.11-lakh crore has been allocated toward capital expenditure, which accounts for almost 4% of India’s GDP. Corporate tax will be reduced to 35% from 40% for foreign companies. In her speech, Sitharaman said that the government will strive to rationalise the tax structure, to elevate the benefits of GST.

S Sunil Kumar, country president of Henkel India said, “With a significant allocation of Rs 11.11-lakh crore towards capital expenditure for FY 2024-25, the government is paving the way for robust infrastructure development and sustainable economic growth in India. Over the next five years, the focus on large-scale projects has the potential to transform the economic landscape, reduce logistical costs, and improve the efficiency of transportation networks. It is also promising to see the government taking measures to boost job creation in the manufacturing sector, a key contributor to the country’s GDP.”

The budget mapped out nine priorities for the coming years — employment and skilling, productivity and resilience in agriculture, inclusive human resource development and social justice, manufacturing and services, urban development, energy security, infrastructure, innovation, R&D, and next-generation reforms.

Special attention will be given to MSMEs and the manufacturing industries, with a credit guarantee scheme and term loans for the purchase of machinery and technological support packages for MSMEs. Additionally, the Small Industries Development Bank of India (SIDBI) will open 24 new branches to serve MSMEs.

In terms of employment and skilling, this budget laid out some schemes set to focus on the youth over the next five years. This includes a comprehensive internship programme for one crore youth in top companies, employment-linked incentives (including a month’s wage support for first-time employees), women-centric skilling programmes, and increased female workforce participation.

For this budget, increasing female employment will be a priority, something that will be achieved by women-centric skilling programmes. Poddar said, “The government has earmarked over Rs 3 lakh crore for schemes benefiting women and girls and boosting their participation in the workforce. It is a welcome development that will unlock productivity, promote social equity, and enhance India's journey towards a more diverse and inclusive workplace.”