The Union Budget for 2024-25, presented by the Finance Minister, provides a strategic vision aimed at propelling India towards sustainable growth and prosperity. Emphasising nine priority sectors, this budget aims to increase output, boost employment, and guarantee inclusive growth through policies. The main highlights and projects described in this year’s budget are thoroughly discussed here.
Productivity and Resilience in Agriculture
India’s economy is based on agriculture, which provides many people with a way of life. The budget allocates a massive ₹2.66 lakh crore to rural development, with the main goal of making farming more productive and sustainable.
Transformational Research in Agriculture
The government is dedicated to investing in agricultural research to enhance production and produce climate-resilient crop varieties. Given climate change, which seriously compromises food security, this project is absolutely vital. By providing research as the first priority, the government hopes to equip farmers with creative ideas to be able to maintain their livelihoods. This includes:
- Funding for research facilities to create new technologies that are able to increase agricultural yields and lower losses resulting from pests and diseases in agricultural technology.
- Encouraging methods that increase soil health and biodiversity, such as crop rotation and intercropping.
Natural Farming Project
Over the next two years, the government wants to bring one crore farmers into natural agricultural methods. This movement highlights:
- Encouraging farmers to cut the usage of pesticides and chemical fertilisers will help to reduce chemical inputs.
- Helping farmers switch to organic farming techniques that might result in better market pricing and healthier produce.
Employment and Skilling
Understanding the vital need for job creation, the budget presents various programs aimed at young people, which is necessary to use India’s demographic dividend fully.
Comprehensive Skilling Programs
With a central outlay of ₹2 lakh crore, the budget outlines five new programs meant to assist 4.1 crore youth over five years. These initiatives will concentrate on:
- Vocational Training: Offering skill development in manufacturing, services, and agriculture, among other industries.
- Entrepreneurship Development: Encouraging young people to launch their own businesses by means of money and training.
Internship Opportunities
A comprehensive internship program would connect one crore young people with leading companies to offer practical experience. This effort seeks to:
- Providing real-world experience will enable young people to acquire skills sought in the employment market.
- Encouragement of alliances between educational institutions and businesses will help to align courses to industry demands.
Incentives Linked to Employment
The budget includes a wage support program for first-time workers to boost job creation, giving companies financial incentives. Furthermore, focused skilling initiatives for women seek to raise their employment rate, advancing gender equality and empowerment.
Social Justice and Inclusive Human Resource Development
With particular allocations and projects meant to uplift underprivileged communities and regions, the budget emphasises inclusivity and social justice.
Financial Support for Andhra Pradesh
A special capital package of ₹15,000 crore is reserved for Andhra Pradesh to assist development projects and improve infrastructure. This financial support is crucial for dealing with regional inequalities and ensuring that every state gains from national progress.
Infrastructure Development in Bihar
The budget outlines plans for new medical facilities, airports, and sports infrastructure in Bihar. This expenditure would:
- Improve Connectivity: New airports will increase travel and trade prospects, thus improving connectivity.
- Enhance Healthcare Access: Medical facilities will guarantee improved health results for the residents.
- Promote Sports and Recreation: Investing in sports infrastructure will encourage community involvement and physical exercise.
Manufacturing and Services
The budget introduces various supportive policies meant to increase competitiveness and innovation, thus strengthening the MSME and manufacturing sectors.
Support of MSMEs
Job creation and economic growth depend critically on Micro, Small, and Medium Enterprises (MSMEs). The budget emphasises help for these businesses through:
- The Credit Guarantee Scheme will help MSMEs obtain loans, therefore lowering the risk for lenders and enabling simpler credit access.
- Term loans for machinery purchases will provide MSMEs with reasonably priced means of finance to upgrade their equipment and raise output.
Technology Support Package
The government is launching a technology support package to improve MSME’s technological capacities. This initiative will:
- Give MSMEs the tools and resources required to implement innovative technologies capable of improving competitiveness and efficiency.
- Support MSMEs in creating innovative goods and services.
Expansion of SIDBI
The Small Industries Development Bank of India will open 24 additional branches to better service MSME clusters throughout India. This development seeks to increase small businesses’ access to finance and financial services, thereby promoting their development and sustainability.
Urban Development
India’s major trend is urbanisation, and the budget allocates funds to enhance urban infrastructure, thereby guaranteeing sustainable and livable cities.
Transit-Oriented Development
Setting aside an astounding ₹11 lakh crore for the infrastructure development of 14 cities, with an eye towards:
- Enhancing Public Support: Improving public transport will help to lower traffic congestion and pollution by means of metro systems, bus rapid transit, and other public transport options.
- Urban Amenities: Development of Parks, recreational areas, and public spaces to raise urban dwellers’ quality of living.
Management of Waste and Water
The budget stresses enhancing sewage treatment, solid waste management, and water supplies in 100 cities. These projects are crucial to handling urban issues, including:
- Pollution control: Good waste management techniques will assist in lowering pollution levels and enhance public health.
- Water Security: Investments in water supply infrastructure will guarantee urban people access to safe and clean drinking water.
Energy Securities
Although particular details on energy securities are not highlighted, the budget shows a continuous dedication to infrastructure development and sustainable energy practices. The administration is likely to focus on the following:
- Renewable Energy Initiatives: Expanding solar, wind, and other renewable energy sources investments will help to lower dependence on fossil fuels.
- Strategies for Energy Efficiency: Encouraging energy-efficient technologies in homes and businesses will help cut costs and energy consumption.
Infrastructure
Infrastructure development comes first, with significant allocations meant to improve living conditions and economic activities.
Rental Housing Initiatives
The budget proposes building industrial workers’ rental accommodation in a Public-Private Partnership (PPP) mode. This program guarantees workers have access to reasonably priced, high-quality homes, addressing urban housing shortages and supporting their well-being and productivity.
Increased Capital Expenditure
Setting at ₹11.1 trillion, the capital expenditure marks a 16.9% rise over the updated estimates for 2023-24. This significant allocation shows the government’s dedication to infrastructure development—which is essential for job creation and economic progress. Significant areas of focus include:
- Development of Roads and highways: Funds for rural roads and national highways help increase trade by improving connectivity.
- Railway Modernisation: Modernising railway infrastructure helps to improve safety and efficiency in passenger and goods transport.
Research & Development and Innovation
Sustainable development depends on innovation; hence the budget presents numerous steps to support it.
Innovation Fund
To inspire technological developments, a sizable fund set aside to support research and innovation in several sectors is established. This fund’s goal is:
- Support Startups and Research Institutions: Provide creative ideas that might propel employment creation and economic development financial support.
- Foster Collaboration: Promote research and development by encouraging cooperation among academics, industry, and government.
Simplified Tax Compliance for Startups
Simplified tax compliance rules and the elimination of the angel tax for startups seek to foster a climate more conducive to entrepreneurial development. Reducing legal obligations helps the government promote creativity and attract investment in the startup ecosystem.
Next-Generation Reforms
The budget also proposes changes targeted at boosting the financial ecosystem and improving the ease of doing business.
Integrated Technology System for IBC
Developing an integrated technological system for the Insolvency and Bankruptcy Code (IBC) will simplify procedures and raise effectiveness. This overhaul seeks to:
- Improve Resolution Processes: This will help distressed assets be resolved faster and more effectively, strengthening the structure available to companies with financial difficulties.
- Increase Transparency: Using digital solutions will help make the insolvency process more transparent, fostering trust among the stakeholders.
Enhanced Mudra Loan Limits
The Mudra loan limit for previous borrowers has been raised from ₹10 lakh to ₹20 lakh, enabling small enterprises to access financing. This rise will enable businesses to expand their activities and invest in opportunities for development.
Supported Higher Education Loans
Higher education loans of up to ₹10 lakhs at domestic universities would enable students to seek quality education financially. This program seeks to reduce student financial load and provide access to higher education, thereby fostering a trained workforce.
Conclusion
Focussing on agriculture, employment, infrastructure, and innovation, the Union Budget 2024-25 offers India a whole road map for development. By giving these sectors top priority, the government hopes to build a strong economy promoting diversity and sustainable growth. Realising the vision of a prosperous and equitable India would depend critically on the effective execution of these programmes.
The future of the country will be greatly shaped by the collective efforts of the government, business sector, and civil society. The budget shows a dedication to tackling modern issues and building the foundation for a better future so that every citizen of India may participate in and benefit from its development story.
Related Services
