Hon’ble Finance Minister Nirmala Sitharaman presented the first budget of the current government. The budget places a strong emphasis on employment, skilling, MSMEs, and the middle class, aiming for overall prosperity. It outlines nine key priorities to create ample opportunities for everyone and suggests specific actions and reforms necessary to achieve the goal of Viksit Bharat.
Employment, skilling, MSMEs, and the middle class.
5 schemes and initiatives.
Targeting 4.1 crore youth over 5 years.
Central outlay of INR 2 lakh crore.
Education, Employment, and Skilling Provision INR 1.48 lakh crore.
In alignment with the Viksit Bharat strategy set out in the interim budget, the budget focuses on sustained efforts across nine key priorities to generate ample opportunities for all. Subsequent budgets will build on these priorities, adding further actions and focus areas.
Comprehensive review to enhance productivity and develop climate-resilient varieties.
Funding provided in challenge mode, including private sector participation.
Oversight by domain experts from the government and outside.
109 high-yielding and climate-resilient varieties of 32 field and horticulture crops to be released for farmers.
1 crore farmers to be initiated into natural farming within 2 years.
Supported by certification and branding.
Implementation through scientific institutions and willing gram panchayats.
Establishment of 10,000 need-based bio-input resource centers.
Strengthening production, storage, and marketing to achieve self-sufficiency.
Developing a strategy for 'atmanirbharta' in oilseeds like mustard, groundnut, sesame, soybean, and sunflower.
Developing large-scale clusters for vegetable production near major consumption centres.
Promoting Farmer-Producer Organizations, cooperatives, and start-ups for vegetable supply chains, including collection, storage, and marketing.
Implementation in partnership with states to cover farmers and their lands within 3 years.
Digital crop survey for Kharif to be conducted in 400 districts this year.
Registration of 6 crore farmers and their lands.
Issuance of Jan Samarth-based Kisan Credit Cards in 5 states.
Financial support for establishing Nucleus Breeding Centres for Shrimp Broodstocks.
Financing for shrimp farming, processing, and export through NABARD.
Drafting a policy for systematic and orderly development of the cooperative sector to fast-track rural economy growth and employment generation.
INR 1.52 lakh crore for agriculture and allied sectors.
One-month wage (up to INR 15,000) for new entrants in the workforce, with an eligibility limit of INR 1 lakh per month salary.
Incentives for additional employment in the manufacturing sector, linked to hiring first-time employees.
Government reimbursement of up to INR 3,000 per month for 2 years towards EPFO contribution for each additional employee.
Establishment of working women hostels in collaboration with the industry.
Women-specific skilling programmes.
Promotion of market access for women SHG enterprises.
New centrally sponsored scheme in collaboration with state governments and industry.
Skilling of 20 lakh youth over 5 years.
Upgrade 1,000 Industrial Training Institutes in hub and spoke arrangements.
Align course content with industry demand and introduce new courses for emerging needs.
Revised Model Skill Loan Scheme for loans up to INR 7.5 lakh with a government-promoted fund guarantee, benefitting 25,000 students annually.
Financial support for loans up to INR 10 lakh for higher education in domestic institutions for youth not covered under other government schemes.
Comprehensive coverage of all eligible people through various programmes for education and health.
Strengthening schemes supporting craftsmen, artisans, self-help groups, scheduled caste, scheduled tribe and women entrepreneurs, and street vendors.
All-round development plan for the eastern region, including Bihar, Jharkhand, West Bengal, Odisha, and Andhra Pradesh.
Development of human resources, infrastructure, and economic opportunities.
Development of an industrial node at Gaya as part of the Amritsar Kolkata Industrial Corridor.
Support for road connectivity, power projects, new airports, medical colleges, and sports infrastructure in Bihar.
Allocation of over INR 3 lakh crore for schemes benefiting women and girls.
The government has introduced a comprehensive package to support MSMEs (Micro, Small, and Medium Enterprises), emphasizing financing, regulatory changes, and technology support. The key measures announced include:
Facilitate term loans for MSMEs to purchase machinery and equipment without requiring collateral or third-party guarantees.
A credit guarantee scheme based on pooling the credit risks of MSMEs will be introduced.
A self-financing guarantee fund will be established to provide guarantees up to INR 100 Cr per applicant, even if the loan amount is higher.
Public sector banks will build in-house capabilities to assess MSME creditworthiness, moving away from reliance on external assessments.
A new credit assessment model will be developed, leveraging the digital footprints of MSMEs. This will provide a more comprehensive evaluation beyond traditional asset or turnover criteria, accommodating MSMEs without formal accounting systems.
A new system will ensure continued bank credit to MSMEs during stress periods to prevent them from becoming NPAs (Non-Performing Assets).
Credit availability will be backed by a government-promoted fund guarantee while MSMEs are in the Special Mention Account (SMA) stage.
The limit for Mudra loans under the Tarun category will be increased to INR 20 Lakh for entrepreneurs who have successfully repaid previous loans.
The turnover threshold for mandatory onboarding on the TReDS (Trade Receivables Discounting System) platform will be lowered to INR 250 Cr.
This will bring 22 more CPSEs (Central Public Sector Enterprises) and 7000 additional companies onto the platform, helping MSMEs unlock working capital by converting trade receivables into cash.
SIDBI (Small Industries Development Bank of India) will open new branches to cover all major MSME clusters within three years.
24 new branches will be opened this year, expanding service coverage to 168 out of 242 major clusters.
Financial aid will be provided to set up 50 multi-product food irradiation units and 100 NABL-accredited food quality and safety testing labs in the MSME sector.
Enable MSMEs and traditional artisans to sell products internationally through E-Commerce Export Hubs set up in PPP mode.
These hubs will offer a seamless regulatory and logistic framework, facilitating trade and export services under one roof.
Investment-ready industrial parks with complete infrastructure will be developed in or near 100 cities through partnerships with states and the private sector.
Twelve industrial parks will be sanctioned under the National Industrial Corridor Development Programme.
Dormitory-type rental housing will be facilitated in PPP mode with VGF support and commitments from anchor industries.
Ownership, leasing, and flagging reforms will be implemented to enhance the share of the Indian shipping industry and generate employment.
Boost domestic production and recycling of critical minerals, and acquire overseas critical mineral assets.
The mission will cover technology development, skilled workforce training, extended producer responsibility, and suitable financing mechanisms.
The first tranche of offshore blocks for mining will be auctioned, building on previous exploration efforts.
DPI applications will be developed at a population scale to enhance productivity, business opportunities, and innovation in areas such as credit, e-commerce, education, health, law and justice, logistics, MSMEs, services delivery, and urban governance.
An Integrated Technology Platform will be established to improve outcomes under the Insolvency and Bankruptcy Code (IBC), ensuring consistency, transparency, timely processing, and better oversight.
The Centre for Processing Accelerated Corporate Exit (C-PACE) services will be extended to include the voluntary closure of LLPs, reducing closure time.
Changes to the IBC, strengthening of tribunals and appellate tribunals, and the establishment of additional tribunals will be initiated to speed up insolvency resolution.
Some tribunals will exclusively handle cases under the Companies Act.
Debt recovery tribunals will be reformed and strengthened, with additional tribunals established to expedite recovery processes.
Transform cities into hubs of growth through strategic planning.
Collaboration with states to develop economic and transit plans, and orderly development of peri-urban areas utilizing town planning schemes.
Formulate a framework for the creative brownfield redevelopment of existing cities.
Implement enabling policies, market-based mechanisms, and regulations to achieve transformative impacts.
Develop Transit Oriented Development (TOD) plans for 14 large cities with populations above 30 lakh.
Formulate and implement financing strategies to support TOD plans.
PM Awas Yojana Urban 2.0.
Address housing needs for 1 crore urban poor and middle-class families with an investment of INR 10 lakh crore, including INR 2.2 lakh crore in central assistance over the next five years.
Establish efficient and transparent rental housing markets with enhanced availability.
Partner with State Governments and Multilateral Development Banks.
Promote water supply, sewage treatment, and solid waste management projects in 100 large cities through bankable projects.
Use treated water for irrigation and filling tanks in nearby areas.
Draft a document on energy transition pathways balancing employment, growth, and environmental sustainability.
Over 1.28 crore registrations and 14 lakh applications.
Continued encouragement and support from the government.
Draft a policy to promote pumped storage projects for electricity storage.
Facilitate the integration of renewable energy with the grid.
Small and Modular Nuclear Reactors
Collaborate with the private sector to set up Bharat Small Reactors.
Focus on the development of Bharat Small Modular Reactors and new nuclear energy technologies.
Complete the development of indigenous AUSC technology for higher efficiency thermal power plants.
A joint venture between NTPC and BHEL to set up an 800 MW commercial plant with government fiscal support.
Develop capacity for producing high-grade steel and advanced metallurgy materials, generating economic benefits.
Formulate a roadmap for transitioning from energy efficiency to emission targets.
Implement regulations for the transition to the 'Indian Carbon Market' mode.
Conduct investment-grade energy audits in 60 traditional micro and small industry clusters.
Provide financial aid for transitioning to cleaner energy and implementing energy efficiency measures.
Replicate the scheme in an additional 100 clusters in the next phase.
Continue strong fiscal support for infrastructure over the next five years.
Allocate INR 11,11,111 crore for capital expenditure, constituting 3.4% of GDP.
Encourage states to support infrastructure investment on a similar scale, considering their development priorities.
Allocate INR 1.5 lakh crore for long-term interest-free loans to assist states in resource allocation.
Encourage private sector investment through viability gap funding and enabling policies and regulations.
Develop a market-based financing framework.
Provide all-weather connectivity to 25,000 rural habitations.
Position India as a global tourist destination to create jobs, stimulate investments, and unlock economic opportunities.
Develop Vishnupad Temple Corridor and Mahabodhi Temple Corridor into world-class destinations.
Comprehensive development of Rajgir.
Revive Nalanda University and develop Nalanda as a tourist center.
Promote Odisha’s scenic beauty, temples, monuments, craftsmanship, wildlife sanctuaries, natural landscapes, and pristine beaches.
Operationalize a fund for basic research and prototype development.
Establish a mechanism to spur private sector-driven research and innovation at a commercial scale with a financing pool of INR 1 lakh crore.
Aim to expand the space economy fivefold in the next ten years.
Set up a venture capital fund of INR 1,000 crore to support this expansion.
Formulate an overarching Economic Policy Framework to delineate the approach to economic development.
Facilitate employment opportunities and sustain high growth through next-generation reforms.
Improve productivity of land, labor, capital, entrepreneurship, and technology to enhance efficiency and bridge inequality.
Earmark a significant portion of the 50-year interest-free loan to incentivize states for faster reform implementation.
Work with states to initiate and incentivize reforms.
Assign Unique Land Parcel Identification Number (ULPIN) or Bhu-Aadhaar for all lands.
Digitize cadastral maps and survey map sub-divisions as per current ownership.
Establish a land registry and link it to the farmers' registry to facilitate credit flow and agricultural services.
Digitize land records with GIS mapping.
Establish an IT-based system for property record administration, updating, and tax administration to improve the financial position of local urban bodies.
Provide a wide array of services to labor, including employment and skilling.
Integrate the e-shram portal with other portals for a one-stop solution.
Develop open architecture databases for the labor market, skill requirements, job roles, and connect job aspirants with employers and skill providers.
Revamp Shram Suvidha and Samadhan portals to enhance ease of compliance for industry and trade.
Develop a financial sector vision and strategy document to prepare the sector in terms of size, capacity, and skills.
Set the agenda for the next five years and guide the work of the government, regulators, financial institutions, and market participants.
Enhance the availability of capital for climate adaptation and mitigation.
Aid in achieving the country’s climate commitments and green transition.
Seek legislative approval for a Variable Capital Company structure to efficiently finance aircraft and ship leasing, and pooled private equity funds.
Simplify rules and regulations for Foreign Direct Investment and Overseas Investments.
Facilitate FDI, prioritize opportunities, and promote the use of Indian Rupee for overseas investments.
Enhance the adoption of technology towards the digitalization of the economy.
Work on the Jan Vishwas Bill 2.0 to enhance Ease of Doing Business.
Provide incentives for states to implement Business Reforms Action Plans and digitalization.
Improve data governance, collection, processing, and management.
Utilize sectoral databases established under the Digital India mission with advanced technology tools.
Conduct a comprehensive review of the customs duty rate structure over the next six months.
Rationalize and simplify customs duty rates to facilitate trade, remove duty inversion, and reduce disputes.
Exempt three more cancer medicines from customs duties and adjust BCD on x-ray tubes & flat panel detectors.
Reduce BCD on mobile phones, mobile PCBA, and mobile chargers to 15%.
Exempt customs duties on 25 critical minerals and reduce BCD on two of the.
Expand the list of exempted capital goods for manufacturing solar cells and panels.
Reduce BCD on certain broodstock, polychaete worms, shrimp, and fish feed to 5%.
Reduce BCD on real down filling material and expand the list of exempted goods for manufacturing leather and textile products.
Reduce customs duties on gold and silver to 6% and on platinum to 6.4%.
Remove BCD on ferro nickel and blister copper, and maintain nil BCD on ferrous scrap and nickel cathode.
Remove BCD on oxygen-free copper and exempt certain parts for manufacturing connectors.
Increase BCD on ammonium nitrate from 7.5% to 10%.
Increase BCD on PVC flex banners from 10% to 25%.
Increase BCD on PCBA of specified telecom equipment from 10% to 15%.
Extend the period for exporting goods imported for repairs to one year and increase the re-import time limit for warranty repairs from three to five years.
Abolish angel tax for all classes of investors to support startups and innovation.
Implement a simpler tax regime for foreign shipping companies operating domestic cruises.
Apply safe harbor rates for foreign mining companies selling raw diamonds.
Reduce the corporate tax rate on foreign companies from 40% to 35% to attract foreign capital.
This structured and unique approach outlines the next generation of reforms across various sectors to drive economic growth, improve productivity, and ensure sustainability.
In the 2024 Budget, the government announced a reduction in TDS rates on certain payments to enhance business operations and streamline taxpayer compliance. These revised TDS rates will come into effect on either October 1, 2024, or April 1, 2025, depending on the specified payments, as detailed in the table below.
What is the conclusion of budget 2024?
The budget has earmarked Rs 11.11 lakh crore for Infra capital expenditure, accounting for 3.4 per cent of GDP. This significant allocation underscores the government's commitment to building infrastructure and boosting the manufacturing sector.
What is the budget of India in 2024 2025?
Effective capital expenditure is estimated at INR 15.01 trillion (US$179 billion), an 18.2 increase over the previous year. India's total expenditure for 2024-25 is estimated at INR 48.2 trillion (US$575 billion).
What is the Economic Survey 2024 in India?
The Economic Survey 2024 highlighted the resilience of the Indian economy despite global headwinds. "India's real GDP grew by 8.2 per cent in FY24, posting growth of over 7 per cent for a third consecutive year, driven by stable consumption demand and steadily improving investment demand," it stated.
