Following the presentation of the Interim Budget 2024, we share the reactions of experts from the beauty and personal care industry who believe the budget will have a positive impact on the beauty sector
Image for representational purposes only. Photo Courtesy: iStock
India’s Finance Minister Nirmala Sitharaman presented the Interim Budget 2024 earlier this morning. The budget was presented for the forthcoming financial year 2024-25.
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Sitharaman spoke at large about comprehensive GDP, housing, tax benefits for startups, and tourism, among other factors. Other sectors of the economy like hospitality and beauty were looking forward to the budget in the hope of some benefits. While there was less mention of the beauty sector specifically, the minister’s speech did have key takeaways. We share the reactions of experts from the beauty sector who share relevant insights.
“The budget serves as a strategic guideline for both the retail and startup industries, presenting a dual narrative of obstacles and opportunities. Retailers welcome the GST amendments as a possibility for higher consumer spending, while they navigate customs tariff modifications that may affect their global supply chains. Simultaneously, entrepreneurs are encouraged by longer tax breaks and expanded funding allocations, which align with a larger aim of supporting innovation and growth. The e-commerce business is at a crossroads, with new laws prompting online platforms to rethink their tactics, while traditional shops welcome the possibility of a more fair playing field. As these industries navigate the fiscal,” says Rishabh Sethia, director, MARS Cosmetics.
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Harish Singla, country sales manager, Forever Living Products India comments, “The unveiling of Budget 2024 is undoubtedly a visionary move. From my standpoint, this budget holds the potential to provide significant impetus for expansion, aligning with India's existing growth trajectory. As our nation progresses, we are poised to become a global leader, and this budget plays a pivotal role in shaping that future. One of the noteworthy aspects of this budget is its attention to addressing supply chain challenges, promoting domestic manufacturing, and emphasising sustainability. These factors are critical in positioning India not only as a Viswa Guru but also as a beacon of innovation and sustainability on the global stage. The proactive stance towards these issues is a testament to a forward-looking approach. Reducing corporate tax to 22 per cent is a commendable measure that can greatly ease the entry and growth processes for brands, retailers, and direct-to-consumer (D2C) players. This move is poised to create a more conducive environment for the retail sector, fostering seamless operations and facilitating overall growth.”
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“The recent budget announcement has ignited a wave of excitement and optimism within the startup community. Enhanced tax benefits, increased funding, and a deep focus on research and development are fueling entrepreneurial spirits. These measures are seen by startups as pivotal drivers for innovation and expansion, providing the essential financial backing and nurturing environment they need to flourish. The commitment to skill enhancement aligns perfectly with the demands of the startup landscape, heralding a future with a more capable and proficient workforce. As this budget unfolds, businesses are gearing up to seize these new prospects, paving the way for a vibrant and robust entrepreneurial ecosystem,” says Hemang Jain, founder and director, The Love Co.
Adding to this, Dheeraj Bansal, co-founder Recode Studios opines, “We find great optimism in the recent interim budget 2024. It not only underscores India's ambitious growth vision but also places a strong emphasis on inclusive growth and sustainable development, acknowledging our country's position as a global economy. The decision to maintain existing tax rates for both direct and indirect taxes in the retail sector is a welcome move, providing stability and predictability to businesses. This not only creates a favourable atmosphere for new businesses but also stimulates the expansion of essential elements of our economy. With revised estimates at 5.8 per cent of GDP, this budget sets the stage for a collaborative and thriving ecosystem. As we navigate these dynamic times, I believe that this budget will fuel the entrepreneurial spirit, driving our industries towards unprecedented growth and success. While the interim budget provided a broad overview, we eagerly anticipate the detailed budget's insights into specific measures for the retail sectors.”
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Riya Pant, founder of Blur India says,"The tax exemptions for startups are a big win, helping us cut down on logistics costs and reducing overall prices. Another positive change is the faster tax return process, now taking just 10 days. This quick turnaround is especially beneficial for bootstrapped Direct-to-Consumer startups like ours, ensuring swift refunds and promoting financial efficiency,"
“It's heartening to witness a forward-looking approach that echoes the government's commitment to fostering growth. The extension of tax benefits for startups, focus on MSME training for global competitiveness, and empowering women entrepreneurs through initiatives like Mudra Yojana are steps in the right direction. The emphasis on inclusivity, especially for the Garib, Mahilayen, Yuva, and Annadata segments, aligns with our vision for a thriving beauty and grooming industry. We remain optimistic about the positive impact on our sector and eagerly await further developments as we collectively strive towards making India a Vikashit Bharat by 2047," says Neeja Shah Goswami, CEO, Whiskers India.
"Over the past decade, efforts to boost entrepreneurship have fueled significant growth for homegrown brands. Finance Minister Sitharaman also revealed a reduction in the corporate tax rate, lowering it from 30 per cent to 22 per cent for existing domestic companies and to 15 per cent for certain new manufacturing companies, thereby reinforcing the government's commitment to promoting Make in India. Anticipating proactive steps from the new government for Union Budget 2024-25, we are optimistic about a budget encompassing tax reforms, sustainability incentives, digital facilitation, and skill development initiatives," adds Inara Dhrolia, cofounder, Rivona Naturals.
Further, Vineeta Singh, Cofounder, CEO, SUGAR Cosmetics opines, "The budget for 2024 demonstrates fiscal responsibility and establishes a robust foundation for an inclusive economic landscape, emphasising the commitment to an accelerated transformative journey. The significant 11.11 per cent increase in capital expenditure, reflects a proactive approach to infrastructure development, which is poised to drive economic growth and job creation. Additionally, the government's decision to extend tax benefits for startups and investments made by sovereign wealth or pension funds is a strategic move to promote economic development. We had hoped that the budget would address the needs of the beauty and personal care startup sector, such as capital funding and tax benefits (ESOPS), to encourage consumption generation and include it in the PLI scheme for accelerating the industry. Nonetheless, we are looking at the positive side and wholeheartedly applaud the strategic initiatives outlined in the budget, confident that they will propel the country towards unprecedented heights of growth and prosperity.
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