One of the priorities on which future budgets would be based includes well-rounded, all-inclusive development in the field of infrastructure. The Union Budget 2024 aims to provide strong fiscal support to infrastructure with an allocation of 3.4% of GDP in line with the Interim Budget. As a part of this endeavor, road connectivity projects and power projects have been proposed. Bihar is set to witness airports, medical colleges, and sports infrastructure, assisted by financing from multilateral development banks. Promotion of industrial development in Andhra Pradesh and financing for essential infrastructure such as water, power, railways, and roads are likely to take shape soon. Long term interest-free loans will be extended to the states in order to enable resource allocation for infrastructure investment.

The budget also supports funding for infrastructure by the private sector through PPP mode via Viability Gap Funding (VGF). The formulation of enabling policies and regulations to promote private sector funding in infrastructure has also been suggested. Foreign Direct Investment (FDIs) and overseas investment are proposed to be simplified, especially to promote the utilization of Indian currency for overseas investment.

The MSMEs have been emboldened with various measures, such as collateral free loans for availing of term loan facilities, self-financing guarantee funds, guarantees backed by government-promoted funds, provisions for further conversion of trade receivables to cash, enhancement of loan limits, and financing expansion through the Small Industries Development Bank of India. Facilitation of international trade has been envisaged through the setting up of e-commerce export hubs in public-private partnership (PPP) mode.

Furthering the development of the infrastructure, the sanction of 12 industrial parks under the National Industrial Corridor and plug-and-play industrial parks in 100 cities has been given impetus. PPP has also been identified as the mode for providing accommodation to industrial workers along with VGF support. Reforms pertaining to ownership and leasing have been proposed in the shipping industry.

The Union Budget 2024 visualizes cities as the petri dish for growth hubs achieved through urban development in the form of brownfield redevelopment of existing cities and transit-oriented development. The Union Budget 2024 also propagates bankable projects pertaining to water supply, sewage treatment and solid waste management.

The Union Budget 2024 comprises the proposal to launch of PM Surya Ghar Muft Bijli for installation of roof-top solar in 1 crore households. A framework for promoting pumped storage projects, the transition of industries from the current ‘Perform, Achieve, and Trade’ mode to the ‘Indian Carbon Market’ mode, and climate finance have also been proposed.

The Union Budget 2024 sets the tone for a model economy in the future through industrial development in the eastern region, and the northeastern region is expected to see an expansion of banking services. The Union Budget 2024 also emphasizes irrigation and flood mitigation, along with pilgrim tourism.

Strengthening of debt recovery and speedy resolution of cases through changes in the Insolvency and Bankruptcy Code and setting up further tribunals have been presented.

In the agricultural sector, digital inclusion in the form of digital public infrastructure has been proposed, and financing in this sector is placed with the National Bank for Agriculture and Rural Development. Employment and skilling remain important priorities. The Union Budget 2024 envisages additional employment in the manufacturing sector, benefiting 30 lakh professionals entering the workforce and promoting the female workforce. Additionally, revisions to schemes for skill loans backed by guarantees from government-sponsored funds have been suggested.

Key Takeaways

The Union Budget 2024 focuses on promoting women in the workforce and women-led development to improve the economy. Stamp duty rates have also been proposed to be lowered for properties purchased by women. A roadmap for growth in all the sectors has been laid out through the suggested proposals. With the proper implementation of the 9 priorities, the growth story of India is expected to continue.