India Unveils Ambitious Budget for 2024-2025: A Roadmap to ‘Viksit Bharat’
New Delhi, July 2024 – The Indian government has presented its highly anticipated Budget for the fiscal year 2024-2025, setting forth an ambitious agenda aimed at fostering economic growth, social justice, and infrastructure development under the overarching theme of ‘Viksit Bharat’ (Developed India). The budget, introduced by the Finance Minister, outlines comprehensive measures across various sectors, emphasizing inclusivity and sustainability to drive the nation towards development.
Agricultural Transformation and Food Security
The budget places a strong emphasis on enhancing agricultural productivity and resilience. A significant initiative is the release of 109 new high-yielding and climate-resilient varieties of crops, aimed at boosting cultivation amidst changing climatic conditions. Furthermore, the promotion of Farmer Producer Organizations (FPOs), cooperatives, and startups will streamline the vegetable production and supply chain, enhancing storage and marketing capabilities. The introduction of the National Cooperation Policy aims to systematize and develop the cooperative sector comprehensively.
Employment and Skilling Initiatives
The government has introduced several schemes to boost employment and skill development. These include:
- Facilitating Women’s Workforce Participation: Establishing working women hostels and creches in collaboration with industry.
- Wage Incentives for New Entrants: Offering one-month wages to new employees in formal sectors, expected to benefit 210 lakh youth.
- Job Creation Schemes: Incentives for employers and employees under EPFO contributions, aiming to benefit 30 lakh youth.
- Skilling Programmes: Upgrading 1,000 Industrial Training Institutes (ITIs) and skilling 20 lakh youth over five years to align with industry needs.
Social Justice and Regional Development
A substantial allocation of over ₹3 lakh crore is dedicated to schemes benefiting women and girls. The budget also focuses on the socio-economic upliftment of tribal communities through the Pradhan Mantri Janjatiya Unnat Gram Abhiyan, covering 63,000 villages and benefiting 5 crore tribal people. Additionally, the Andhra Pradesh Reorganization Act receives financial support of ₹15,000 crores, emphasizing critical infrastructure projects like the Polavaram Irrigation Project.
Manufacturing and MSME Support
The budget introduces measures to bolster manufacturing and support MSMEs, including:
- Industrial Parks: Development of twelve industrial parks under the National Industrial Corridor Development Programme.
- Internship Opportunities: Providing internships to 1 crore youth in 500 top companies over five years.
- Credit Support: Enhancing the scope for mandatory onboarding in TReDS, revising the MSME credit assessment model, and increasing the Mudra Loans limit to ₹20 lakh.
Urban Development and Housing
Urban development takes center stage with a focus on housing and infrastructure:
- Affordable Housing: Addressing the needs of 1 crore urban poor and middle-class families with an investment of ₹10 lakh crore under the PM Awas Yojana Urban 2.0.
- Transit-Oriented Development: Plans for 14 large cities and promoting water management projects in 100 large cities.
- Street Markets: Development of 100 weekly ‘haats’ or street food hubs in select cities.
Energy and Infrastructure
Key initiatives in the energy sector include:
- Nuclear Energy Development: Setting up Bharat Small Modular Reactors and facilitating investment in nuclear energy projects.
- Renewable Energy Integration: Financial support for micro and small industries to adopt cleaner energy and an energy audit initiative for 60 clusters.
- Infrastructure Investments: Provision of ₹11,11,111 crores for infrastructure development, including all-weather connectivity to 25,000 rural habitations under PMGSY Phase IV.
Innovation and Research
To drive innovation, the budget operationalizes the Anusandhan National Research Fund, focusing on private sector-driven research and the development of a ₹1 lakh crore financing pool. Additionally, a venture capital fund of ₹1,000 crores is set up for the space economy.
Tax Reforms
The budget introduces significant tax reforms aimed at simplification and rationalization:
- Direct Tax Proposals: Revising tax rates for short-term and long-term gains, increasing exemption limits, and simplifying the tax regime for various sectors.
- Customs Duty Adjustments: Reducing customs duties on critical minerals, shrimp feed, and key inputs for the mobile and solar industries to enhance competitiveness.
Economic Outlook
The budget reflects robust economic foundations with an 8.2% growth in FY 2024. Key indicators show a declining fiscal deficit, reduced current account deficit, and a significant drop in the gross NPAs of Scheduled Commercial Banks, signifying a stable economic environment.
Conclusion
The 2024-2025 budget of India is a forward-looking blueprint designed to propel the nation towards inclusive and sustainable growth. With comprehensive measures spanning agriculture, employment, social justice, manufacturing, urban development, energy, and innovation, the government aims to build a ‘Viksit Bharat‘ that is resilient, equitable, and prosperous.
Also Read: Union Budget 2024: Key Changes in Capital Gain Tax Rates Impacting Mutual Fund Investors