A Comprehensive Guide to Finance Minister Nirmala Sitharaman's Interim Budget

Finance Minister Nirmala Sitharaman recently unveiled the Interim Budget for 2024, shedding light on a multi-faceted economic strategy encompassing infrastructure development, digital public infrastructure, and tax reforms.

Economic Transformation and Vision: India's positive transformation over the last decade, under PM Narendra Modi's leadership, is noteworthy. The focus on inclusive growth, encapsulated in the mantra "Sabka Saath, Sabka Vikas, Sabka Vishwas," has led to new employment and entrepreneurship opportunities.

Inclusive Development and Growth: The budget emphasizes targeted development, with programs like 'housing for all' and 'har ghar jal.' Additionally, efforts to eliminate food worries for 80 crore people and support for farmers through increased minimum support prices are highlighted.

Social Justice and Empowerment: The government aims for all-around, pervasive, and inclusive development, emphasizing the empowerment of the poor, women, youth, and farmers.

Economic and Fiscal Management: The budget outlines a multi-pronged economic management strategy, encompassing infrastructure development, digital public infrastructure, and tax reforms. The revised fiscal deficit target is 5.8% of GDP for 2023-24, with a goal to reduce it below 4.5% by 2025-26.

Global Context and Strategic Initiatives: India's G20 presidency and the introduction of the India-Middle East-Europe Economic Corridor are highlighted as strategic initiatives. Acknowledging global challenges like wars, supply chain disruptions, and climate change is a key aspect.

Sector-Specific Initiatives: A significant focus on agriculture includes initiatives like Nano DAP and Atmanirbhar Oil Seeds Abhiyan. Development programs for fisheries, dairy, and the empowerment of women in rural areas are also emphasized.

Healthcare and Education Initiatives: Various initiatives focus on youth through education and skill development, support for startups, and sports achievements. Healthcare initiatives include the expansion of Ayushman Bharat and cervical cancer vaccination.

Infrastructure and Environmental Initiatives: Massive capital expenditure outlay, development of major railway corridors, and expansion of the aviation sector are outlined. Focus on green energy, electric vehicles, and tourism is evident.

Tourism and Investment Promotion: Comprehensive development of tourist centers and infrastructure projects is aimed at boosting domestic tourism. Foreign Direct Investment (FDI) inflows have seen a significant increase.

Tax Reforms and Ease of Doing Business: Rationalization of direct and indirect tax rates, including GST, is highlighted to ease the tax burden and improve compliance. Proposals to withdraw outstanding direct tax demands for small amounts are welcomed.

Future Outlook and 'Viksit Bharat' Vision: The budget lays the foundation for the vision of a 'Viksit Bharat' (Developed India) by 2047, focusing on demographic, democratic, and diversity strengths. The commitment to national development with new inspirations and resolutions, termed as 'Kartavya Kaal' (Era of Duty), is emphasized.

Industry Insights:

Bodhisattwa Sanghapriya, IG Drones: Welcomes the budget's focus on tech-savvy growth and innovation.

"As a research and innovation-driven entity at the forefront of India's drone technology landscape, IG Drones warmly welcomes the budget announcement of establishing a Rs 1 lakh crore corpus with a 50-year interest-free loan, specifically tailored for tech-savvy growth. In alignment with our Finance Minister's assertion that innovation is the bedrock of development, this signifies a golden era for our tech-savvy youth. The commitment to lead in drone tech innovation by the end of the decade echoes our aspirations and dedication to pushing technological boundaries. The Finance Minister's focus on addressing the needs and aspirations of the poor, farmers, youth, and women resonates deeply with our ethos. Empowering youth through our COE and aspiring to train 10 million individuals aligns seamlessly with the government's emphasis on uplifting the youth. Our vision for farmers is crystal clear, with the development of advanced Kisaan drones and our active participation in the 'Namo Drone Didi' program, showcasing our commitment to revolutionizing agriculture through technology. We wholeheartedly support the government's aim for inclusive support and growth, aiming to create increased opportunities for entrepreneurship and employment. This budget aligns with our mission, and we are excited to contribute actively to India's progress by driving innovation and empowering various sectors through cutting-edge drone technology."

Dilip Gangaramani, Target Publications: Applauds the commitment to education, skills, and inclusive future.

"It is impressive how committed our government is to investing in medical colleges, increasing female involvement in STEM fields (43%), and skilling 1.4 crore youth. At Target Publications, we are passionate to align with this vision. Our learning material provides young people the necessary tools to attain professional success. Through our endeavours, we strive to empower medical students, and foster young STEM minds. The achievement of the skill India mission (1.4 crore skilled, 54 lakh reskilled) is praiseworthy, and we are prepared to make more contributions. In addition, the PM Shri program is revolutionary as it updates 14,500 schools to align with the National Education Policy 2020. This is in complete harmony with our goal of offering everyone access to excellent, NEP-aligned education. The budget for 2024 lays the foundation for an informed, capable, and empowered India. We stand ready to play our part in this exciting journey!"

Tarun Gulati, Himalayan Hotels: Celebrates strategic projects for tourism, foreseeing a promising future.

"showcasing India's allure for global business and conference tourism. Recognizing the burgeoning aspirations of our middle class to explore, the budget joyfully announces strategic projects for port connectivity, tourism infrastructure, and amenities in our islands, including Lakshadweep. This initiative not only boosts tourism but also creates employment opportunities. States are encouraged to develop iconic tourist centers, with a focus on global branding and marketing. The introduction of a quality rating framework, along with long-term interest-free loans for state development, promises a vibrant and promising future for India's tourism sector."

Beas Dev Ralhan, Next Education: Emphasizes the focus on elevating higher education standards and upskilling.

"In the latest budget, the government places a significant emphasis on elevating higher education standards through upskilling and reskilling initiatives. This underscores a continued commitment to the transformative reforms outlined in The National Education Policy 2020. The substantial allocation, with the Education Ministry receiving its highest-ever budget of Rs 1,12,898.97 crore, reflects a prioritization of educational excellence. While PM Schools for Rising India (PM SHRI) play a pivotal role in delivering quality education and fostering holistic development, it is crucial to address the persistent challenge of unemployable youth. Urgent attention is needed to realign our education system with market demands, ensuring that our youth not only receive theoretical knowledge but also acquire practical skills. This strategic focus is essential to empower the younger generation to contribute meaningfully to the progress of our nation."

Sampad Swain, Instamojo: Praises post-budget initiatives, especially tax benefits for startups.

"We are pleased with the government's post-budget initiatives, particularly the extension of tax benefits for startups and the continued investments by sovereign wealth funds and pension funds. The extension of tax exemptions for IFSC units until 31st March 2025 is a positive step that will provide stability and support to businesses operating in these units. The reduction in corporate tax rates to 22% for existing domestic companies and 15% for certain new manufacturing companies is a welcome move that will enhance India's competitiveness in the global market. Additionally, the provision of no tax liability for individuals with income up to ₹7 lakh under the new tax regime is a significant relief for many taxpayers. We also appreciate the government's efforts to promote entrepreneurship through schemes like the Mudra Yojana, with ₹30 crore disbursed to women entrepreneurs and ₹43 crore sanctioned under PM Mudra Yojana to foster youth entrepreneurship. These initiatives are aligned with our mission at Instamojo to support and empower small businesses and entrepreneurs across India. Instamojo provides a platform for startups and entrepreneurs to leverage certain tax benefits, including tax exemptions for IFSC units and investments by sovereign wealth funds/pension funds. With Instamojo, entrepreneurs can also access funding opportunities to women entrepreneurs under the Mudra Yojana, empowering them to fuel their business growth post-budget. We look forward to the positive impact of these measures on the entrepreneurial ecosystem and are committed to leveraging them to further our goal of democratizing digital commerce in the country."

Atul Gupta, e-Sprinto: Expects ambitious policies for EVs in the future.

"Certainly, particulars in regard to the E-Mobility mission and encouragement of EV infrastructure were missing in the speech, however, the budget did point towards creating ambitious policies towards adoption of EVs in the public transportation sector. Furthermore, since the budget has circumscribed the requirement to strengthen manufacturing of EVs and infrastructure, we can be sure that it stands high on the government's agenda, and we do expect supporting policies to follow soon,"

Sandeep Shah, Optimized Electrotech: Highlights the transformative shift in the defence industry.

"A strategic roadmap that not only balances fiscal prudence but also seeds the ground for sustainable growth, innovation, and resilience. Investing in a future that champions progress, inclusivity, and economic vitality. Beyond numbers, it signifies a transformative shift in the defence industry, where innovation now takes center stage alongside capital. This strategic move reshapes the landscape, redefining the playbook for the next decade. The winners will be those who innovate, adapt, and champion progress. This budget is not merely a financial plan; it's a small step towards a comprehensive modification of the defence sector, heralding an era where the game-changers are the innovators. Crucially, the increased capital expenditure is a beacon for Aatmanirbharta—self-reliance in its truest sense. It empowers the nation to forge ahead with indigenous capabilities, fostering innovation, and creating a robust ecosystem that not only meets immediate defence needs but also positions India as a global player in the defence arena."

Sarvesh Agrawal, Internshala: Commends the focus on technological research, innovation, and skill development.

"The interim budget for 2024 highlighted the government's pursuit towards a "Viksit Bharat" (Developed India) through technological research and innovation in emerging fields. Emphasising on inclusive and sustainable development, the government aims to boost green power and support the electric vehicle manufacturing and charging infrastructure. This vision offers a promising trajectory for entrepreneurship and job creation in this rapidly evolving sector. This will in addition, also lead to a boost in the skilling and job creation in the EV sector."

This budget not only addresses current challenges but paves the way for a transformative and inclusive India, resonating positively with leaders across various sectors. Stay tuned for further insights and developments.