The Union Budget 2024-25 presented by Finance Minister Nirmala Sitharaman includes several key highlights and initiatives aimed at boosting various sectors of the Indian economy:
- Fiscal Deficit: The fiscal deficit target for FY25 has been lowered to 4.9% of GDP, with a goal to reduce it further to 4.5% by FY26.
- Agriculture: Focus on boosting productivity and resilience through technology and infrastructure improvements.
- Employment and Skilling: New skilling loan scheme providing up to ₹7.5 lakh and upgrading 1,000 Industrial Training Institutes (ITIs). A one-time wage support of up to ₹15,000 for first-time employees earning up to ₹1 lakh and a formal sector wage support program.
- Manufacturing and Services: Measures to foster a robust manufacturing sector and promote growth in services.
- Urban Development: Significant investments in sustainable urban infrastructure and housing, including ₹10 lakh crore for urban housing under PMAY – Urban 2.0.
- Infrastructure: Major investments in expanding and modernizing transportation, energy, and communication networks, with special focus on states like Bihar and Andhra Pradesh.
- Innovation and Research: Encouraging scientific advancements and fostering a culture of innovation.
- Next-Gen Reforms: Implementing progressive policies for a future-ready economy.
- Tax Reforms: Introduction of a new tax regime with the lowest slab reduced to ₹3 lakhs, a revised tax structure for salaried employees, and the abolition of the “angel tax” for startups. Corporate tax for foreign companies reduced to 35%.
- Support for MSMEs: A comprehensive financial and technology support package for MSMEs, including a new credit guarantee scheme and enhanced Mudra loans.
- Affordable Housing: Expansion of the Pradhan Mantri Awas Yojana to include 3 crore additional houses with an allocation of ₹2.2 lakh crore over five years.
- Customs Duty Changes: Reductions in customs duty on various items including mobile phones, gold, silver, and cancer drugs.
- Digital India: Establishment of E-Commerce Export Hubs through Public-Private Partnerships and enhanced digital footprint scoring for MSMEs linked to credit.
Overall, the budget aims to lay a strong foundation for a “Viksit Bharat” through targeted investments, tax reforms, and pro-growth initiatives.
Sources:
- Mint (livemint.com)
- IndiaGlitz (indiaglitz.com)
- Next IAS (nextias.com)
