Union Budget: JK Paper’s Harsh Pati Singhania lauds focus on jobs and startups

Union Budget 2024: Immediately following the Union Budget announcement, Harsh Pati Singhania, Managing Director of JK Paper Ltd, provided hid insights to Republic Business. Singhania praised the budget's blend of infrastructure investments and tax reliefs aimed at stimulating economic growth and middle-class spending. 

He stressed the government's focus on job creation and skill development as crucial for sustaining a 7.5 per cent to 8 per cent growth trajectory. 

Additionally, Singhania highlighted the continuation of support for agriculture, a focus on simplifying the tax regime, and the removal of angel tax, which he believes will invigorate India's burgeoning startup ecosystem.

Q: What are the key highlights of this budget for you?

A: I believe it's a growth-oriented budget. It aims to balance growth through infrastructure and capital expenditure, particularly in areas like infrastructure and housing. Additionally, it provides a degree of demand stimulus through tax breaks, especially for the middle class.

Another key aspect is the explicit focus on job creation and skill development. While capital expenditure is crucial, creating jobs is essential to achieving our growth target of 7.5 per cent to 8 per cent. The government plans to allocate funds for first-time employees and provide incentives to employers to encourage job creation. There is also an apprenticeship scheme that can utilize CSR funds, which is a welcome development.

The budget continues to support the agriculture sector and rural areas, which are vital for the economy. It also places significant emphasis on the manufacturing sector, particularly medium and small enterprises (MSMEs). Since MSMEs play a crucial role in job creation, this focus is very important.

Additionally, the budget seeks to simplify the tax regime and includes a comprehensive review of the tax system. A notable feature is the reduction of litigation, which has often been a non-productive issue for both taxpayers and the government. While there are other features to explore, these are some of the key highlights.

Q: Could you elaborate on the aspects of the tax regime? Additionally, while I understand you haven't yet reviewed the fine print, what is your opinion on the removal of angel tax and its potential impact on the startup ecosystem?

I think it's positive. It's definitely positive. We have a very vibrant and emerging startup ecosystem, and I think India leads in many ways globally in that. So, this would be a great encouragement to them.


Q: Lastly, the focus was clearly on agriculture and reforms, especially for farmers. Do you think this provides the much-needed push that was required?

I think it's an important push. But let me just say one more thing. A lot of this, particularly rural and agriculture, is also very state-dependent. There are state regulations, there are state taxes. It also depends on how the states perform. 

So, while the Union Budget lays out a direction, a blueprint, and some specific measures, a lot will depend on how different states actually enact them. The Finance Minister also talked about looking at each factor of production, which includes things like labour, land, and, of course, technology. 

But, land and labour, again, to a great extent, are state-dependent due to state regulations. So, states will also have to come into the picture for this to come to fruition.