INDIA UNION BUDGET 2024 – FY25 FISCAL DEFICIT TARGETTED @ 5.1% | FY25 NET BORROWING @ INR 11.75T | REFORMS | SPENDING | NO CHANGES TO TAXATION
PART 1 – REFORMS & SPENDING
• INDIA ECON WITNESSED PROFOUND TRANSFORMATION LAST 10 YEARS
• INCLUSIVITY HAS BEEN HALLMARK OF MODI’S 2ND TERM
• INDIA GOVT EXPECTS TO BE REELECTED, FINANCE MINISTER SAYS
• WORRIES ABOUT FOOD ELIMINATED VIA FREE RATION
• INDIA GOVT WORKING ON ALL-ROUND, ALL-INCLUSIVE DEVELOPMENT
• INDIA NEEDS TO FOCUS ON POOR, WOMEN, YOUTH AND FARMERS
• INDIA, MIDDLE EAST, EUROPE CORRIDOR A GAME CHANGER
• INDIA TO PAY ATTENTION TO MAKE EASTERN REGION DRIVER OF GROWTH
• INDIA TO BUILD 20M MORE HOUSES FOR POOR NEXT 5 YRS
• INDIA TO PREPARE FINANCIAL SECTOR TO MEET INVESTMENT NEEDS
• INDIA TO TAKE UP NEXT GEN REFORMS, BUILD CONSENSUS WITH STATES
• INDIA TO HAVE POLICIES TO FOSTER GROWTH
• INDIA PLANS HOUSING SCHEME FOR MIDDLE INCOME PEOPLE
HEALTHCARE
• INDIA TO INCREASE NUMBER OF MEDICAL COLLEGES ON EXISTING INFRA
• INDIA PLANS TO SET UP MORE MEDICAL COLLEGES
• INDIA TO ENCOURAGE CERVICAL CANCER VACINATION
• INDIA PLANS SCHEMES FOR MATERNAL, CHILD CARE
AGRI
• INDIA TO FURTHER PROMOTE INVESTMENTS IN POST-HARVEST ACTIVITIES
• INDIA TO EXPAND NANO DAP USE ON CROPS
• INDIA PLANS STRATEGY FOR SELF RELIANCE ON OIL SEEDS
• INDIA TO FORMULATE SCHEME FOR DAIRY DEVELOPMENT – Action in milk / Dairy Stocks…
• INDIA TO STEP UP FISHERIES PROGRAM TO INCREASE PRODUCTIVITY
• INDIA AIMS TO DOUBLE SEAFOOD EXPORTS TO INR1T — Shrimp exporters like Avanti Feeds and Waterbase impacted positively
• INDIA APPROVES SCHEME OF SUGAR SUBSIDY UNDER PDS FOR AAY FAMILIES
INNOVATION / TECH
• INDIA TO SET UP INR1T CORPUS FOR INNOVATION – one trillion rupees ($12 billion) for scaling research in sunrise sectors
• INDIA PLANS SCHEME FOR DEEP TECH FOR DEFENSE
Sitharaman lays out a detailed plan to achieve the Indian government’s 2070 Net Zero goal. That includes viability gap funding for harnessing wind energy, coal gasification plan, biofuel expansion and creating an ecosystem for EVs like payment security for procuring electric buses for public transport.
INFRA
• INDIA TO SPEND 11.1% MORE ON INFRA IN FY25 AT 11.1T RUPEES
• INDIA CABINET APPROVES EXTENSION OF ANIMAL HUSBANDRY INFRA FUND
• INDIA AIRLINES PLACED ORDERS FOR MORE THAN 1,000 NEW AIRCRAFT
• INDIA TO ADD AIRPORT CAPACITY
• INDIA TO PROVIDE VIABILITY GAP FUND FOR 1GW OFFSHORE WIND ENERGY
EV
• INDIA TO EXPAND EV ECOSYSTEM
• INDIA TO FORM PAYMENT SECURITY MECHANISM FOR EV BUSES
It’s worth noting that EV sales made up only 1.3% of total passenger vehicles sold last year.
BIOGAS
• INDIA TO GIVE FINANCIAL ASSITANCE FOR BIOGAS SECTOR
• INDIA TO HAVE BIO-MANUFACTURING, BIO FOUNDRY PLAN
TOURISM
• INDIA TO ENCOURAGE STATES TO DEVELOP TOURIST CENTERS
• INDIA PLANS LONG-TERM INTEREST-FREE LOAN TO STATES FOR TOURISM
• INDIA CABINET APPROVES TO CONTINUE GARMENT TAX REBATE SCHEME
• INDIA APPROVES BILATERAL INVESTMENT TREATY BETWEEN INDIA, UAE
• INDIA TO HAVE VIABILITY GAP FUNDING FOR OFFSHORE WIN
• INDIA TO HAVE VIABILITY GAP FUNDING FOR OFFSHORE WIND OF 1GW
• INDIA TO FORM PANEL FOR ADDRESSING DEMOGRAPHIC CHANGES ISSUES
• INDIA NEGOTIATING BILATERAL INVESTMENT TREATIES TO BOOOST FDI
• INDIA INR750B PROVISION FOR MILESTONE-LINKED REFORMS IN STATES
The government will continue on path of fiscal consolidation
• INDIA FY24 TOTAL EXPENDITURE REVISED EST 44.90T RUPEES
• INDIA REVISED EST OF RECIEPTS 27.56T RUPEES FOR FY24
• INDIA REVISES FY24 BUDGET DEFICIT TARGET TO 5.8% OF GDP
• INDIA FY24 BUDGET GAP AT 5.8% OF GDP VS 5.9% GOAL
• INDIA AIMS TO REACH FISCAL GAP OF 4.5% BY FYFY26
• INDIA SETS FY25 BUDGET-GAP TARGET AT 5.1% OF GDP
• INDIA FY25 GROSS MARKET BORROWING SEEN 14.1T RUPEES
• INDIA BUDGETS FY25 NET MARKET BORROWING AT 11.75T RUPEES
PART 2 – TAXATION — “in keeping with the tradition.”
• INDIA DO NOT PROPOSE ANY CHANGES IN TAXATION
• SAME TAX RATES FOR DIRECT, INDIRECT RETAINED
• INDIA TO EXTEND TAX BENEFITS FOR START-UPS TO MARCH 31, 2025
• INDIA TO IMPROVE TAXPAYER SERVICES
• INDIA TO WITHDRAW SOME OUTSTANDING DIRECT TAX DEMANDS
The finance minister is also prompting the Indian states to support the federal government’s fiscal consolidation goal. She is offering 750 billion rupees of 50-year interest-free loan to support states that meet milestones
