Union Finance Minister Nirmala Sitharaman is likely to present her seventh consecutive Union Budget, aiming to chart a course for a ‘Viksit Bharat’ by 2047.
This landmark budget is likely to lay the groundwork for India’s ambitious economic and developmental goals over the next two decades.
Following the budget presentation, Finance Minister Sitharaman will host a press conference alongside Minister of State for Finance Pankaj Chaudhary, Finance Secretary T V Somanathan, key Finance Ministry officials, and Chief Economic Adviser V Anantha Nageswaran.
This conference will offer insights into the budget’s key provisions and the government’s fiscal strategy.
Key Focus Areas
The Union Budget is likely to address several critical areas, including:
Rural Economy & Consumption:
The government is likely to allocate a significant portion of the budget to bolster the rural economy and stimulate consumption. This includes targeted investments in rural infrastructure and social welfare programs.
Taxation Reforms:
Reforms in the income tax structure are likely, with the aim of providing relief to taxpayers across various segments. Simplifying tax procedures to enhance the ease of doing business is also on the agenda.
Infrastructure & Manufacturing:
An emphasis on infrastructure development and local manufacturing is poised, along with an increase in the Production-Linked Incentive (PLI) scheme to support labor-intensive sectors.
Job Creation & Skills Development:
Initiatives to create jobs and enhance skill development will be a priority, aiming to tap into the country’s vast youth demographic.
Sustainability & Circular Economy:
Experts highlight the need for investments in rural and district areas to boost traditional and new economy activities, with a particular focus on sustainability and circular economic practices.
Economic Outlook
The Economic Survey 2023-24 projects India’s GDP growth rate to be between 6.5% and 7% for the fiscal year 2024-25.
Despite global economic challenges, Chief Economic Adviser Nageswaran believes achieving a 7% growth rate is attainable.
Prime Minister Narendra Modi further has underscored the Economic Survey’s positive assessment, noting the strength of India’s economy and the impact of government reforms.
Taking to X, PM Modi posted, “The Economic Survey highlights the prevailing strengths of our economy and also showcases the outcomes of the various reforms our Government has brought. It also identifies areas for further growth and progress as we move towards building a Viksit Bharat.”
The Economic Survey highlights the prevailing strengths of our economy and also showcases the outcomes of the various reforms our Government has brought.
It also identifies areas for further growth and progress as we move towards building a Viksit Bharat.…
— Narendra Modi (@narendramodi) July 22, 2024
The budget is likely to see a significant increase in capital expenditure to drive economic growth.
Meanwhile, the government’s continued focus on capital formation has yielded positive results, with Gross Fixed Capital Formation growing by 9% in real terms in 2023-24.
The Economic Survey however emphasizes the importance of the non-farm sector in India’s growth trajectory, recognizing its crucial role in the country’s overall economic development.
As the nation eagerly anticipates the Union Budget, all eyes will be on how it addresses these critical areas to foster sustainable growth and development, setting the stage for India’s journey towards becoming a developed nation by 2047.
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