The Union Budget, presented by Finance Minister Nirmala Sitharaman, is a testament to the government’s commitment to realizing India’s dream of developed economy status by 2047. This Budget, an extension of the Interim Budget presented in February 2024, is a pragmatic and balanced financial blueprint that sets the right priorities for the nation’s growth.
The Budget announcements have been meticulously categorized into nine broader categories, demonstrating the government’s focused approach. This strategic categorization is indicative of the government’s intent to ensure comprehensive development across all sectors.
The Budget does not deviate significantly from the Interim Budget, maintaining a steady course towards the nation’s development. This consistency is a clear indication that the government is building momentum, moving in the right direction, and staying true to its vision.
One of the most commendable aspects of the Budget is the abolition of the angel tax for all classes of investors. This move is set to invigorate India’s start-up ecosystem, attracting more individuals to embark on their entrepreneurial journeys. By encouraging innovation and fuelling the risk-taking abilities of our young entrepreneurs, the government is paving the way for a vibrant and dynamic start-up culture.
Further bolstering the entrepreneurial spirit, the government has doubled the limit of the collateral-free Mudra loans from to Rs 20 lakh from Rs 10 lakh for entrepreneurs who have successfully repaid their loans.
As a representative of the biotechnology and pharmaceutical sector, it is heartening to see that Research and Innovation are among the key priority areas for this government. The proposal to devise a mechanism to spur private sector-driven research and innovation at a commercial scale, backed by a financing pool of Rs 1 lakh crore, aligns perfectly with the announcements made during the Interim Budget.
Moreover, the setting up of the ‘Anusandhan National Research Fund’ will support basic research and prototype development in universities, colleges, research institutions, and R&D laboratories.
This focus on research and innovation is a promising step towards fostering a culture of scientific discovery and technological advancement in the country. It is a clear signal that the government recognizes the critical role of Science and Technology in the nation’s development.
The Budget also focused on employment generation, skilling, entrepreneurship, and the startup economy.
In a country with the world’s largest and youngest workforce, India needs to create more skilled jobs and shift a greater proportion of its workforce into higher productivity sectors to sustain its economic momentum and achieve consistently high GDP growth. To address this crucial need, the FM has allocated Rs 2 trillion over the next five years with the aim of benefiting 41 million youth.
The scheme to provide internship opportunities in the Top 500 companies for 10 million youth over the next five years is a very smart move. Moreover, 21 million youth are expected to benefit from the employment-linked incentive scheme for first-time employees wherein the government will provide a month’s wage to all new entrants in formal sectors.
Incentives for businesses, notably those in the manufacturing sector, upgradation of 1,000 Industrial Training Institutes (ITIs), as well as subsidised loans for higher education will also go a long way in laying a solid foundation for a future-ready workforce.
A reduced tax burden for the middle class is expected to increase disposable income and encourage consumption.
Additionally, the Budget’s emphasis on affordable housing, as well as powering 10 million households with rooftop solar panels and creating 17 lakh direct jobs across the solar value chain will boost the rural economy.
In conclusion, the Union Budget 2024-25 is a testament to the government’s focus on bolstering the start-up ecosystem, promoting research and innovation, skilling the youth, and realizing our collective aspiration of ensuring a brighter and more prosperous future for India.
(A version of this was published in the July 24, 2024, edition of The New Indian Express)
