Introduction
On July 23, 2024, Finance Minister Smt. Nirmala Sitharaman presented the Union Budget for the fiscal year 2024-2025, marking a significant milestone in India’s economic policy. This article delves into the comprehensive details of the budget, offering an in-depth analysis of its key components, the impact on various sectors, and expert opinions on its implications. With a focus on employment, skilling, and economic development, the budget outlines an ambitious agenda for India’s future.
Economic Overview
Inflation and Economic Growth
India’s inflation has remained notably low and stable, with the Consumer Price Index (CPI) approaching the 4% target. As of June 2024, the core inflation, excluding food and fuel, stands at 3.1%. The government has implemented measures to ensure that perishable goods are sufficiently supplied to stabilize prices.
Government’s Economic Strategy
The Finance Minister emphasized that despite global economic uncertainties, India’s economic growth trajectory is positive. The Union Budget outlines a vision for India as a “Viksit Bharat” (Developed India), focusing on employment generation, skill development, and support for various economic sectors.
Key Highlights of the Union Budget 2024-25
1. Prime Minister’s Employment and Skill Development Package
Date: July 23, 2024
The Union Budget includes a significant initiative—the Prime Minister’s package—with an allocation of ₹2 lakh crore. This package aims to create job opportunities, enhance skills, and provide various opportunities for 4.1 crore youth over five years. The focus is on:
- Employment-linked incentives
- Skill development programs
- Support for small and medium enterprises (SMEs)
Expert Opinion:
Dr. Aditi Kumar, an economist at the National Institute of Public Finance and Policy (NIPFP), praised the initiative: “The Prime Minister’s package is a bold step towards addressing the employment crisis and enhancing the skill set of the younger generation. It reflects the government’s commitment to sustainable economic growth.”
2. Agriculture and Allied Sectors
Date: July 23, 2024
The budget allocates ₹1.52 lakh crore for agriculture and allied sectors. Key measures include:
- Introduction of 109 high-yielding and climate-resilient crop varieties.
- Support for 1 crore farmers to adopt natural farming techniques.
- Establishment of 10,000 bio-input resource centers.
Expert Opinion:
Prof. Ravi Sharma from the Indian Agricultural Research Institute (IARI) commented, “The focus on high-yielding and climate-resilient crops is crucial for enhancing agricultural productivity and ensuring food security in the face of climate change.”
3. Employment and Skilling Initiatives
Date: July 23, 2024
The budget introduces several schemes to boost employment and skill development:
- Upgradation of 1,000 Industrial Training Institutes (ITIs).
- A comprehensive internship scheme for 1 crore youth in top 500 companies.
- Revision of the Model Skill Loan Scheme, offering up to ₹7.5 lakh loans for education.
Expert Opinion:
Dr. Manish Gupta, Director of the Skill Development Council, noted, “The emphasis on upgrading ITIs and providing internships will bridge the gap between education and employment, equipping youth with necessary industry skills.”
4. Rural and Urban Development
Date: July 23, 2024
The budget addresses both rural and urban development with the following allocations:
- ₹2.66 lakh crore for rural development and infrastructure.
- ₹10 lakh crore investment under PM Awas Yojana Urban 2.0 for urban housing.
Expert Opinion:
Ms. Priya Patel, an urban development specialist, remarked, “The substantial investment in urban housing and rural infrastructure will significantly improve living conditions and stimulate local economies.”
5. Tax Reforms and Corporate Incentives
Date: July 23, 2024
Several tax reforms are introduced to simplify the tax structure and incentivize investments:
- Increased standard deduction to ₹75,000 under the new tax regime.
- Reduction of corporate tax for foreign companies from 40% to 35%.
- Abolition of angel tax to support start-ups.
Expert Opinion:
Mr. Rajiv Kumar, a tax consultant at Deloitte India, stated, “The tax reforms are designed to enhance compliance and attract foreign investment, which is critical for sustaining economic growth.”
6. Infrastructure and Innovation
Date: July 23, 2024
The budget focuses on infrastructure development with an allocation of ₹11.11 lakh crore for capital expenditure. Key projects include:
- Phase IV of PMGSY to connect 25,000 rural habitations.
- Establishment of a ₹1,000 crore venture capital fund for space economy expansion.
Expert Opinion:
Dr. Anil Verma, a senior research fellow at the Centre for Policy Research (CPR), commented, “Investment in infrastructure and innovation is vital for driving long-term economic growth and enhancing India’s global competitiveness.”
7. Direct and Indirect Tax Reforms
Date: July 23, 2024
The budget proposes comprehensive tax reforms aimed at simplification and broadening the tax base:
- Rationalization of GST and custom duties.
- Increased exemption limits for capital gains.
Expert Opinion:
Ms. Neha Sharma, a tax advisor at PwC India, noted, “The proposed tax reforms are likely to streamline compliance and provide a more transparent tax structure, which will benefit both businesses and individuals.”
Conclusion
The Union Budget 2024-2025 represents a significant step towards achieving India’s economic goals, with a focus on employment, skill development, infrastructure, and tax reforms. By addressing key areas such as agriculture, urban housing, and investment incentives, the budget aims to foster sustainable growth and development.
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For more detailed information, you can refer to the official Press Information Bureau release and the Ministry of Finance’s budget documents.
FAQs
- What are the major highlights of the Union Budget 2024-25?
- The Union Budget 2024-25 focuses on employment and skill development, agriculture, rural and urban infrastructure, tax reforms, and innovation. It includes significant allocations such as ₹2 lakh crore for employment initiatives and ₹1.52 lakh crore for agriculture.
- How does the Union Budget address employment issues?
- The budget introduces the Prime Minister’s Employment and Skill Development Package, which aims to create job opportunities for 4.1 crore youth, upgrade ITIs, and offer internships in top companies.
- What are the key tax reforms included in the budget?
- Key tax reforms include an increased standard deduction, reduced corporate tax for foreign companies, and the abolition of angel tax to support start-ups.
- How will the budget impact agriculture in India?
- The budget allocates ₹1.52 lakh crore for agriculture, including the introduction of high-yielding crop varieties and support for natural farming techniques. It aims to enhance productivity and sustainability.
- What are the expert opinions on the Union Budget 2024-25?
- Experts commend the budget for its focus on employment and skill development, infrastructure investment, and tax reforms. Dr. Aditi Kumar and Prof. Ravi Sharma, among others, have highlighted its potential to drive economic growth and address key challenges.
