Budget 2024-25 Highlights: A day ahead of the presentation of Budget, Union Finance Minister and BJP leader Nirmala Sitharaman will table the Economic Survey 2023-24 along with a statistical appendix in Parliament today. Sitharaman along with Jayant Chaudhary, Pankaj Chaudhary, Kirtivardhan Singh and Sukanta Majumdar will present the document. The Union Budget 2024-25 of the third Modi government will be presented tomorrow at 11 AM. The spotlight is on Budget 2024 to deliver income tax relief for salaried individuals, stimulate job creation, and accelerate India’s journey towards achieving a USD 5 trillion economy.
Nirmala Sitharaman will table the Economic Survey 2023-24 along with a statistical appendix in Parliament on Monday, a day ahead of the Union Budget. The Budget Session of Parliament starts today and is likely to conclude on August 12.
Union Ministers Nirmala Sitharaman, Jayant Chaudhary, Pankaj Chaudhary, Kirtivardhan Singh and Sukanta Majumdar will present the document on the table in Lok Sabha today.
The full speech of Prime Minister Narendra Modi's speech ahead of Budget Session. Watch here.
Sharing my thoughts at the start of the Budget Session of Parliament.https://t.co/doTLz9NDeD
— Narendra Modi (@narendramodi) July 22, 2024
Ahead of the Budget Session, Prime Minister Narendra Modi said that this is an important Budget for Amrit Kaal, and to fulfill the BJP-led NDA government, which is running its third term, dream for a 'Viksit Bharat', a developed India. Read more.
The ensuing Union Budget needs to pay more attention to the MSME sector, which is the backbone of India's economy, Lakshmi Venkataraman Venkatesan, Founding and Managing Trustee, Bharatiya Yuva Shakti Trust (BYST), told FinancialExpress.com.
“Micro segment of MSMEs which constitute 97% of MSME units require easy availability of capital through bank finance under the Credit Guarantee Schemes with zero guarantee fee. The average loan size under MUDRA scheme should be Rs 4.00 lakh from the existing Rs 37,000. GST should be made user-friendly with an exemption for initial three years, to conserve resources and time of micro-enterprises that are usually run by Proprietors,” she said.
Further, Lakshmi Venkataraman Venkatesan added that with micro units being vendors to large industries, infrastructure should be adequately developed by the government with metalled roads and railway connectivity for timely cargo movement at competitive prices.
She also advocated for digital literacy for micro units with infrastructure for marketing of products through e-commerce portals like ONDC for competing with other units locally or at national level.
The Union Budget 2024-25 will be presented in the Parliament on Tuesday by the Finance Minister. During the joint session of the Parliament, President Droupadi Murmu had said that this Budget will have several "historic" decisions. Nirmala Sitharaman held consultations with several stakeholders from India Inc and politicians, who had come up with their wishlist, ahead of the Budget.
As we are closing in on the date of the Union Budget presentation, the banking sector is betting on policy continuity on infrastructure spend. The industry leaders and experts said that the Budget should announce policy changes and incentives that help move towards growth, bring financial stability, and support digitalisation.
"Over the past few years, we have noticed an upward trend in the budget allotment towards renewable energy due to the increased focus on sustainability. The government has already taken up initiatives like Development of Solar Parks and Ultra Mega Solar Power Projects, Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan, and PM Surya Ghar Yojna to promote sustainable practices in the energy sector.
However, to meet the ever-growing power demand of the nation, the industry anticipates greater financial support this year including enhanced subsidies, grants, and low-interest loans for renewable energy projects, which will lower the financial barriers to implementation. Currently, 12% GST is levied on all renewable energy devices. Reducing GST will help to make components more affordable for the industry. Lowering these taxes will reduce project costs, allowing for greater investment in the sector, supporting the country's ambitious goals for renewable energy capacity, and ensuring sustainable progress towards a cleaner energy future. We are optimistic about the budget and looking forward to the final decision of the government," says Naresh Mansukhani, CEO, Juniper Green Energy.
“As we look towards the upcoming budget, our expectations from the government are aligned with the crucial needs of the clean-tech and battery recycling sector. The importance of recycling spent lithium-ion batteries cannot be overstated. The global lithium-ion battery market is projected to reach $100 billion by 2025, driven by the surge in electric vehicles and renewable energy storage. In India, this presents a massive opportunity to not only lead in clean-tech innovation but also to create jobs and economic growth. However, to truly harness this potential, government support is essential. We urge the government to provide incentives for developing and deploying battery recycling technologies, reduce import duties on essential recycling equipment, and offer subsidies or grants for setting up recycling plants. Moreover, establishing stringent battery disposal and recycling regulations can ensure environmental safety and drive industry compliance. Ensuring these, we can transform India's clean-tech landscape and pave the way for a greener, more sustainable world.
By prioritizing Li-ion battery recycling, we can address critical material scarcity, create jobs, and position India as a leader in the circular economy. This budget can be a turning point in transforming our clean-tech landscape and advancing our nation's commitment to sustainability. MiniMines stands ready to contribute our expertise and innovative technologies to this crucial endeavor, ensuring India's greener, more resourceful future,” says Anupam Kumar, CEO, MiniMines.
According to Balasubramanian A, Vice President, TeamLease Services:
- Reduction in import duties on components: Lowering import duties on components like semiconductors and compressors for washing machines and ACs could make production cheaper and drive down prices for consumers. This could lead to a 15-20% increase in sales, impacting the sector by Rs. 10,000-15,000 crores and potentially creating 2-3 lakh jobs in manufacturing and retail. For example, reducing import duties for washing machine components by 10% could bring down production costs by 5%, creating around 50,000 jobs in the washing machine manufacturing and retail sectors
- Extension of PLI schemes: Expanding PLI schemes to cover additional consumer durables besides air conditioners (already covered under the White Goods PLI scheme) can attract Rs. 20,000-30,000 crores in investments and create 2-3 million jobs across the supply chain. This could include jobs in setting up new manufacturing units, raw material production, and logistics.
- Focus on renewable energy: Incentives for energy-efficient appliances like LED TVs and refrigerators can promote sustainability and reduce electricity consumption. This could increase penetration by 10-15%, impacting the sector by Rs. 5,000-7,000 crores and potentially creating up to 1 lakh jobs in manufacturing and installation. For example, promoting LED TVs through subsidies could increase their penetration by 15%, creating around 50,000 jobs in LED TV manufacturing and installation, but the actual number may vary depending on the specific incentive programs and their effectiveness.
- Infrastructure development for rural markets: Improved rural electrification and connectivity can increase penetration of consumer durables in rural areas, potentially doubling the market size within 5 years and leading to significant job creation in rural retail and service sectors like installation and repair.
On Monday, July 22, at 2:30 pm, Finance Minister Nirmala Sitharaman, who will present the Union Budget for the eighth time on record, is expected to table the Economic Survey.
The Union Budget for 2024-25 will present a road map for Viksit Bharat@2047, finance minister Nirmala Sitharaman had committed during the presentation of the interim budget for the year in February. Thus, she is expected to announce measures to accelerate the pace of development and leverage India’s vast demography and diversity to transform India into a developed nation at the centenary of its independence. The task is arduous, evident from the distance India needs to travel.
Startups are hoping that the Union Budget 2024, to be tabled in Parliament on Tuesday, will rationalise the provisions of angel tax. Rohinton Sidhwa explains what the concerns regarding this tax and the reliefs are that startups are seeking.
Jagmohan Singh, Founder, Riohills Hospitality, said, "Sustainable tourism is a vital element of responsible travel, demanding an integrated approach that addresses economic, social and environmental factors. By embracing sustainable tourism practices, we can reduce adverse impacts, enhance positive outcomes and ensure tourism benefits the well-being of destinations and their communities. In the upcoming Union Budget 2024-25, Agro and Sustainable tourism are anticipated to receive support through GST concessions for village homestays in Uttarakhand's hilly regions, initial subsidies to strengthen finances and initiatives to facilitate direct interactions between buyers and sellers of organic farm produce, thereby supporting local vendors."
Saurabh Gahoi, Senior Vice president at Ramee Group of hotels, said, "As we look towards the Union Budget 2024, the hospitality industry is set for transformative changes. Reclassifying hotels as infrastructure and offering tax incentives for sustainable practices will significantly boost investment appeal. Reduced GST for the tourism sector and streamlined single-window clearances will make travel more affordable and business operations smoother. By supporting spiritual and business tourism, especially in tier 2 and tier 3 cities, we can unlock immense potential for economic growth and job creation. The right government policies can drive the hospitality sector to new heights, making India a global leader in tourism."
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The Macro-economic Framework Statement is presented to Parliament under Section 3 of the Fiscal Responsibility and Budget Management Act, 2003 and the rules made thereunder. It contains an assessment of the growth prospects of the economy along with the statement of specific underlying assumptions. It also contains an assessment regarding the GDP growth rate, the domestic economy and the stability of the external sector of the economy, fiscal balance of the Central Government and the external sector balance of the economy.
In the run-up to the Union Budget, the FMCG industry is anticipating announcements and incentives that would boost the rural economy and drive consumption in these areas. India’s FMCG and consumer industry’s growth, for several quarters, remained elusive on rising input costs impacting margins, and inflation that has resulted in low consumer spending from the rural and middle class consumers.
The upcoming Union Budget is anticipated to place a strong emphasis on manufacturing, affordable housing, green mobility and comprehensive infrastructure development in addition to increasing demand for consumption, according to a study published by Assocham and Primus.
As India gears up for a full budget following the elections, the travel, tourism and hospitality industry is poised for significant growth and development. The interim budget of February 2024 had already set a positive roadmap, with substantial increases in budgetary allocations for the tourism ministry, highlighting a clear focus on enhancing tourism infrastructure.
The Budget allocation for the National Mission on Natural Farming is anticipated to range between Rs 10,000 crore and Rs 15,000 crore. For the Krishi Infrastructure Mission, the predicted allocation is expected to be between Rs 25,000 crore and Rs 30,000 crore. Meanwhile, the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) is projected to receive a budgetary allocation ranging from Rs 1 lakh crore to Rs 1.25 lakh crore. These allocations, as per estimates by Jarvis, highlight the government's focus on promoting natural farming practices, enhancing agricultural infrastructure, and ensuring efficient water management to boost agricultural productivity and sustainability across India. Read more.
Prior to the Union Budget, child rights activists and organisations have called on the government to prioritise children in the development agenda by enhancing funding for their education, healthcare, and protection services. They are optimistic that the government will adopt a child-centric approach, emphasizing the necessity of adequate resources and protection to support the well-being and development of the nation's youngest citizens.
The inaugural Union Budget of independent India was delivered on November 26, 1947, by the country's first Finance Minister, RK Shanmukham Chetty.
Ahead of the Budget on July 23, Chief Minister M K Stalin of Tamil Nadu has urged the Centre to ensure that Tamil Nadu-specific projects are clearly addressed in the upcoming Budget.
He emphasised the need for the Centre to fulfil long-pending demands, such as funds for the Chennai Metro Rail (Phase 2) project and approval for the Tambaram-Chengalpattu elevated expressway corridor.
Stalin also highlighted expectations from the budget, including tax relief for middle-class families, approval for Metro Rail projects in Coimbatore and Madurai, adequate funding for existing railway projects, and increased expenditure limits for rural and urban housing schemes, he said in a post on X (in Tamil).
The government is expected to allocate between Rs 2 lakh crore to Rs 2.25 lakh crore for the development of Indian Railways, according to a report by Jarvis. This significant budgetary provision aims to strengthen infrastructure, improve connectivity, and modernize services across the railway network. Read more.
Ajay Kakar, CEO, Salve Pharmaceuticals says, "Policies that improve digital infrastructure, reduce logistical costs, and provide tax incentives for online enterprises will all help the e-commerce industry grow. As a result, Indian firms can expand their customer base and enhance the overall customer experience.
The input credit process for exporters should be streamlined to enhance efficiency and reduce administrative burdens. Simplifying this process will ensure that exporters can easily claim and receive their input credits, thereby improving cash flow and reducing delays.
Additionally, the bill settlement process should be expedited to facilitate quicker financial transactions and settlements. By accelerating this process, exporters can maintain better liquidity and financial stability, which is crucial for sustaining and growing their businesses."