The Indian Union budget 2024-25 presented by Finance Minister Mrs. Nirmala Sitharaman, stands as a crucial document outlining the government's financial and policy priorities for the upcoming fiscal year. overall economic impact expected from this budget. With a strong focus on inclusive growth, job creation, and infrastructure development, the budget has outlined a clear roadmap for India's journey towards becoming a developed nation. At a glance, the budget appears to be severe on investors, good for jobs, and highly prioritized by politics.
Priorities for Viksit Bharat
- Transforming Agriculture Research
Comprehensive review of the agriculture research setup to bring focus on raising productivity and developing climate resilient varieties.
- National Cooperation Policy
For systematic, orderly and all-round development of the cooperative sector
- Atmanirbhar
For oil seeds such as mustard, groundnut, sesame, soyabean and sunflower
- Vegetable production & supply chain
Promotion of FPOs, cooperatives & start-ups for vegetable supply chains for collection, storage, and marketing.
- Release of new varieties
109 new high-yielding and climate resilient varieties of 32 field and horticulture crops will be released for cultivation by farmers
Natural Farming
• 1 crore farmers across the country will be initiated into natural farming, supported by certification and branding in next 2 years.
• 10,000 need-based bio-input resource centres to be established. Shrimp Production & Export
• Financing for Shrimp farming, processing and export will be facilitated through NABARD.
Digital Public Infrastructure (DPI)
• DPI for coverage of farmers and their lands in 3 years.
• Issuance of Jan Samarth based Kisan Credit Cards
Employment & Skilling
- One-month wage to new entrants in all formal sectors in 3 instalments up to ₹15,000 .
- Government will reimburse EPFO contributions of employers up to ₹3000 per month for
2 years for all new hires.
- Linked to first time employees - Incentive to both employee & employer for EPFO contributions in the specified scales for the first 4 years
- Facilitate higher participation of women in the workforce through setting up of working women hostels in collaboration with industry, and establishing creches.
- Loans up to ₹7.5 lakh with a guarantee from a government promoted Fund. - Expected to help 25,000 students every year.
Inclusive Human Resource Development and Social Justice
- Allocation of more than ₹3 lakh crore for schemes benefitting women and girls.
- Improving the socio-economic condition of tribal communities covering 63,000 villages benefitting 5 crore tribal people.
- More than 100 branches of India Post Payment Bank will be set up in the North East region
Manufacturing & Services
- Credit Guarantee Scheme for MSMEs in the Manufacturing Sector
- New assessment model for MSME credit
- Enhanced scope for mandatory onboarding in TReDS
- Mudra Loans: The limit enhanced to ₹ 20 lakh from the current ₹ 10 lakh under the ‘Tarun’ category.
- MSME Units for Food Irradiation, Quality & Safety Testing
- Credit Support to MSMEs during Stress Period
- Twelve industrial parks under the National Industrial Corridor Development Programme.
Energy Security
- Setting up Bharat Small Reactors
- R&D of Bharat Small Modular Reactor and newer technologies for nuclear energy.
- For electricity storage and facilitation of smooth integration of the growing share of renewable energy.
- A joint venture between NTPC and BHEL will set up a full scale 800 MW commercial plant.
- 1 crore Households obtain free electricity
- Up to 300 Units every month
- 1.28 crore Registrations and 14 lakh applications so far.
Infrastructure
- ₹1.5 lakh crore to states as longterm interest free loans to support resource allocation.
- PMGSY will be launched to provide allweather connectivity to 25,000 rural habitations.
- Comprehensive development initiative for Rajgir will be undertaken which holds religious significance for Hindus, Buddhists and Jains.
Innovation, Research & Development
- Operationalization of the Anusandhan National Research Fund for basic research and prototype development.
- Private sector-driven research and innovation at commercial scale with a financing pool of ₹1 lakh crore.
- Space Economy: A venture capital fund of ₹1,000 crore is to be set up.
Next Generation Reforms
- Taxonomy for climate finance: Enhancing the availability of capital for climate adaptation and mitigation related investments.
- FDI and Overseas Investments: Simplified to facilitate FDIs and promote opportunities for using Indian Rupee as a currency for overseas investments.
- NPS Vatsalya A plan for contribution by parents and guardians for minors.
- Improvement of data governance, collection, processing and management of data and statistics.
- New Pension Scheme (NPS) A solution that address the relevant issues, protects the common citizen and maintains fiscal prudence will be formed.
Comprehensive review of the rate structure for ease of trade, removal
of duty inversion and reduction of disputes
- Fully exempt 3 more cancer medicines from custom duties
- Reduce BCD to 15% on Mobile phone, Mobile PCBA and charger
- Reduce custom duty on gold and silver to 6% and platinum to 6.4%
- Reduce BCD on shrimp and fish feed to 5%
- Exempted more capital goods for manufacturing of solar cells & panels
- Fully exempt custom duties on 25 critical minerals
The 2024-25 Indian Budget underscores the government's balanced approach towards growth and sustainability. By prioritizing infrastructure, healthcare, and digital transformation, it aims to build a resilient economy. While challenges remain, the budget lays down a robust foundation for India's journey towards becoming a $5 trillion economy.
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