The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, is a comprehensive roadmap aimed at steering the Indian economy towards sustained growth and development. Amid global economic uncertainties and domestic challenges, this budget lays a strong foundation for economic revival, inclusive growth, and sustainable development.
With a projected GDP growth of 6.5% for 2024-25, the budget underscores the government’s commitment to macroeconomic stability while prioritizing key sectors such as agriculture, manufacturing, infrastructure, technology, and social welfare. Significant measures to enhance fiscal prudence, boost employment, and promote innovation and sustainability are at the core of this budget. Through a series of reforms and strategic investments, the Union Budget 2024 aims to position India as a resilient and dynamic economy on the global stage.
Union Budget 2024
Economic Growth:
- GDP growth for 2024-25 is projected at 6.5%.
- Focus on sustainable development and climate action.
- Emphasis on boosting manufacturing and exports.
Fiscal Deficit:
- Fiscal deficit target set at 5.9% of GDP.
- Plans to reduce the deficit to 4.5% by 2025-26.
- Revenue generation through disinvestment and improved tax compliance.
Inflation and Monetary Policy:
- Inflation is expected to moderate to 4-4.5%.
- Continued emphasis on maintaining price stability while supporting growth.
Sector-Specific Highlights
Agriculture:
- Introduction of a ₹750 crore Agri-SURE fund for agri-startups.
- Accelerated implementation of the Agriculture Infrastructure Fund (AIF).
- Promotion of precision farming, data analytics, and smart irrigation systems.
- Doubling farmers’ income by promoting crop diversification and organic farming.
Manufacturing and Industry:
- PLI (Production-Linked Incentive) scheme expanded to new sectors.
- Focus is on Make in India and Atmanirbhar Bharat projects.
- Incentives for green manufacturing and sustainable practices.
- Special focus on MSMEs with easier access to credit and reduced compliance burdens.
Infrastructure and Transport:
- Major investments in highways, railways, and urban infrastructure.
- Creation of new airports and expansion of existing ones.
- Boost to the National Infrastructure Pipeline (NIP) with a target of 7,400 projects.
- Enhanced allocation for the Bharatmala and Sagarmala projects to improve road and port connectivity.
Technology and Innovation:
- Significant allocation for R&D in AI, robotics, and biotechnology.
- Promotion of digital payments and financial inclusion.
- Incentives for startups and innovation hubs with a focus on simplifying regulatory processes.
- Expansion of Digital India program to cover more sectors.
Social Sector and Welfare
Healthcare:
- Increased funding for the National Health Mission.
- Expansion of Ayushman Bharat scheme.
- Investment in healthcare infrastructure and medical education.
- Launch of new healthcare initiatives focusing on maternal and child health.
Education:
- Enhanced allocation for the National Education Policy (NEP) implementation.
- Prioritize digital education and skill development.
- Scholarships and financial aid for higher education.
- Strengthening of vocational training programs to meet industry needs.
Employment:
- Programs to boost employment in rural and urban areas.
- Employment opportunities for young people and women are prioritized.
- Incentives for MSMEs to create more job opportunities.
- Introduction of new labor laws aimed at improving working conditions and benefits.
Taxation and Financial Sector
Income Tax:
- Relief measures for the middle class.
- Simplification of tax filing processes.
- Status quo on Long Term Capital Gains (LTCG) taxation.
- Increase in the standard deduction for salaried individuals.
Corporate Tax:
- Continued focus on lowering corporate tax rates.
- Incentives for startups and small businesses.
- Measures to boost compliance and reduce evasion.
- Introduction of tax incentives for companies investing in green technologies.
Banking and Finance:
- Strengthening of public sector banks through recapitalization.
- Promotion of digital banking and fintech.
- Measures to enhance financial inclusion and literacy.
- Introduction of regulatory frameworks for cryptocurrencies and digital assets.
Environmental and Sustainable Development
Climate Action:
- Significant investments in renewable energy projects.
- Incentives for green technologies and electric vehicles.
- Policies aimed at reducing carbon footprint and promoting sustainability.
- Launch of a Green Energy Corridor to enhance renewable energy capacity.
Water and Sanitation:
- Expansion of the Jal Jeevan Mission for universal water access.
- Increased funding for Swachh Bharat Mission.
- Initiatives for water conservation and management.
- Introduction of new programs for wastewater treatment and reuse.
Global Economic Context
Trade and Exports:
- Policies to increase exports and decrease trade imbalances.
- Strengthening trade relations with key partners.
- Incentives for export-oriented industries.
- Promotion of Indian products through international trade fairs and exhibitions.
Foreign Investments:
- Encouraging FDI through ease of doing business reforms.
- Developing India into a global industrial hub.
- Incentives for foreign companies to invest in India.
- Introduction of new investment zones with tax breaks and infrastructure support.
Additional Highlights
Defense and Security:
- Increased allocation for defense expenditure to modernize armed forces.
- Emphasis on self-reliance in defense production.
- Strengthening of border infrastructure and security measures.
Tourism and Culture:
- Promotion of heritage and cultural tourism.
- Development of new tourist circuits and infrastructure.
- Incentives for private investments in the tourism sector.
Digital Transformation:
- Expansion of high-speed internet access to rural areas.
- Promotion of digital literacy programs.
- Enhanced cybersecurity measures to protect digital infrastructure.
Urban Development:
- Prioritize smart cities and urban regeneration.
- Making investments in public transportation and affordable housing.
- Initiatives to improve urban sanitation and waste management.
Rural Development:
- Enhanced allocation for rural infrastructure development.
- Promotion of rural entrepreneurship and self-help groups.
- Initiatives to improve rural healthcare and education.
Women and Child Development:
- Programs to improve women’s safety and empowerment.
- Enhanced funding for child nutrition and education.
- Initiatives to support working mothers and childcare facilities.
Sports and Youth Affairs:
- Sports infrastructure and training budgets have been increased.
- Sports are promoted at the grassroots level.
- Incentives for athletes and sports associations.
Science and Technology:
- Investments in space exploration and satellite technology.
- Promotion of scientific research and innovation.
- Strengthening of institutions like ISRO and DRDO.
The Union Budget 2024 reflects a balanced approach towards economic growth and fiscal discipline, addressing immediate needs while laying the groundwork for long-term prosperity. By focusing on critical areas such as infrastructure, technology, healthcare, education, and environmental sustainability, the budget aims to drive holistic development across the nation.
The introduction of targeted schemes and incentives for various sectors highlights the government’s proactive stance in fostering a conducive business environment and ensuring the welfare of its citizens. As India navigates through global economic challenges, the strategic initiatives outlined in this budget are expected to bolster resilience and drive the nation towards a path of inclusive and sustainable growth.
With continued emphasis on innovation, skill development, and green initiatives, the Union Budget 2024 sets a visionary course for India’s economic future, promising robust growth and development for all sections of society.