The Budget for 2024-2025, unveiled in July 2024, outlines a comprehensive plan to steer India towards its vision of ‘Viksit Bharat.’ Here are the key features and priorities of this trans-formative budget:
Employment and Skilling
1. Women in Workforce: Initiatives like working women hostels and creches in collaboration with the industry aim to increase women’s participation in the workforce.
2. Youth Employment: A one-month wage to new entrants in formal sectors up to ₹15,000, benefiting 210 lakh youth.
3. Job Creation Schemes:
- First Timers Scheme: Incentives for both employees and employers for EPFO contributions.
- Manufacturing Job Creation: Reimbursement of EPFO contributions up to ₹3,000 per month for two years for new hires.
- Internships: One crore youth to receive internship opportunities with allowances.
Agriculture and Farmer Welfare
1. Natural Farming: One crore farmer to be initiated into natural farming with support for certification and branding.
2. Vegetable Production: Promotion of FPOs, cooperatives, and startups for vegetable supply chains.
3. New Crop Varieties: Release of 109 high-yielding and climate-resilient crop varieties.
4. Shrimp Farming: Financing for shrimp farming, processing, and export through NABARD.
Inclusive Human Resource Development
1. Women and Girls: Over ₹3 lakh crore allocated for schemes benefiting women and girls.
2. Tribal Welfare: Pradhan Mantri Janjatiya Unnat Gram Abhiyan targeting 63,000 villages and five crore tribal people.
3.Regional Development: Initiatives under the Andhra Pradesh Reorganization Act and development projects in Eastern states like Bihar, Jharkhand, and West Bengal.
Manufacturing and MSMEs
1. Industrial Parks: Establishment of twelve industrial parks under the National Industrial Corridor Development Programme.
2. MSME Support:
– Credit Support: Enhanced scope for mandatory onboarding in TReDS and a new assessment model for MSME credit.
– Mudra Loans: Loan limit increased to ₹20 lakh under the ‘Tarun’ category.
3. Critical Minerals Mission: Focus on domestic production, recycling, and overseas acquisition of critical minerals.
Urban Development and Housing
1. Affordable Housing: Investment of ₹10 lakh crore in PM Awas Yojana Urban 2.0, addressing housing needs of one crore urban poor and middle-class families.
2. Street Markets and Transit-Oriented Development: Development of 100 weekly street food hubs and transit-oriented development plans for 14 large cities.
3. Water Management: Promotion of water supply, sewage treatment, and solid waste management projects in 100 large cities.
Energy and Infrastructure
1. Energy Initiatives:
– Bharat Small Reactors: R&D for Bharat Small Modular Reactors.
– Energy Audit: Investment-grade energy audits in 60 clusters, expanding to 100 clusters.
– Pumped Storage Policy: NTPC and BHEL to set up a full-scale 800 MW commercial plant.
2. Infrastructure Development:
– PMGSY Phase IV: All-weather connectivity to 25,000 rural habitations.
– Irrigation and Flood Mitigation: Projects like the Kosi-Mechi intra-state link with an estimated cost of ₹11,500 crore.
Innovation, Research & Development
1. National Research Fund: Operationalization of the Anusandhan National Research Fund for basic research and prototype development.
2. Space Economy: A venture capital fund of ₹1,000 crore for the space economy.
Tax Proposals
1. Simplification in Taxes:
– Capital Gains Tax: Short-term gains to attract 20% tax; long-term gains on all assets to attract 12.5%.
– Standard Deduction: Increased from ₹50,000 to ₹75,000 for salaried employees.
– Angel Tax Abolishment: For all classes of investors.
– Corporate Tax: Reduced rate for foreign companies from 40% to 35%.
Fiscal Health
1. Economic Growth: India grew at 8.2% in FY 2024.
2. Current Account Deficit: Improvement observed in the current account deficit.
3. Inflation and Fiscal Deficit: Efforts to tame inflation and decrease the fiscal deficit as a percentage of GDP.
Sector-Specific Proposals
1. Mobile Industry: Reduction in BCD to 15% on mobile phones, PCBA, and chargers.
2. Gold and Silver: Custom duty reduced to 6%.
3. Marine Exports: Enhancing competitiveness in marine exports by exempting critical minerals from custom duties.
Conclusion
The Budget 2024-2025 is a comprehensive roadmap designed to drive India towards ‘Viksit Bharat.’ By prioritizing employment, skilling, agriculture, inclusive human resource development, manufacturing, urban development, energy, infrastructure, innovation, and tax reforms, the government aims to create a sustainable and inclusive growth. This transformative budget not only addresses immediate economic needs but also lays a solid foundation for India’s long-term development, which ensures that benefits reach all sections of society.