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The Union Budget 2024-25 has garnered an overwhelmingly positive response from players in the food and beverage (F&B) and hospitality sectors, who praised its comprehensive approach towards fostering infrastructure development, employment generation, and overall economic growth. Industry experts believe that the budget's strategic focus on enhancing the country's infrastructure and creating new job opportunities will play a crucial role in boosting consumer confidence and driving demand across various sectors. The budget's commitment to promoting sustainable practices and supporting small and medium-sized enterprises (SMEs) has been particularly well-received, highlighting the government's dedication to nurturing a resilient and inclusive economy.
Rajat Agrawal, CEO of Barista Coffee, described the budget as forward-looking with direct benefits for corporates and employment opportunities. "The new payroll compensation for hiring new employees will help expand our retail client base. Additionally, new tax rates providing tax savings will result in more disposable income for consumers. The focus on infrastructure will improve serviceability and market penetration, even though there are no direct incentives for retail and F&B sectors," Agrawal stated.
Navneet Nagpal, Principal Consultant and Director of Spectra Hospitality Services, highlighted the budget’s focus on developing new religious circuits as a major boost for the hospitality sector. "Replicating the Kashi Vishwanath corridor model in other spiritually significant sites like Gaya and Bodhgaya will transform them into world-class tourist destinations. This initiative will enhance India's cultural heritage and drive economic growth by creating jobs and boosting the hospitality, infrastructure, technology, and local craft sectors," Nagpal said.
Anubhav Dubey, Co-founder of Chai Sutta Bar, appreciated the budget's commitment to rural development and support for MSMEs. "The increased allocation for rural development will improve connectivity and expand new markets, which is promising for overall economic progress. The focus on entrepreneurship and the abolition of the angel tax are highly encouraging for startups like ours," Dubey remarked.
Pranav Rungta, Co-Founder and Director at Nksha and VP of NRAI Mumbai, acknowledged the budget’s efforts to boost employment and upskilling in the travel and tourism industry. "Skill-based programs for the hospitality and restaurant industries are positive steps. However, we had hoped for more targeted support for restaurants to foster further growth and resilience," Rungta commented.
Saurabh Gahoi, Senior VP of Ramee Group of Hotels, pointed out the budget's potential to enhance international and inbound travel through the promotion of India’s spiritual heritage. "The focus on spiritual tourism and job creation through skill development will drive growth in the hospitality sector and support tourism and related industries," Gahoi said.
Vikrantt Singh, Founder and Managing Director at Bansooriwala's, expressed excitement about the reforms aimed at entrepreneurs and businesses. "Simplifying compliance, rationalizing the tax structure, and enhancing the Insolvency and Bankruptcy Code (IBC) are significant steps that will ease operational burdens. These measures will foster a robust entrepreneurial ecosystem, allowing us to focus on growth and innovation," Singh stated.
The Union Budget 2024-25 has been hailed as a promising plan that prioritizes infrastructure, employment, and economic growth, creating a conducive environment for the F&B and hospitality sectors to thrive.
