Budget 2024: Key Highlights with Industry experts reaction

01 Feb, 2024

Finance Minister Nirmala Sitharaman took pride in presenting the Interim Budget 2024 in the parliament on 1st February 2024 and with this, she stands equal to the former Prime Minister Morarji Desai as they both were honoured to present the budget six times in a row. The budget showcased the glorious growth India has undergone during the past 10 years. 

That apart, it highlighted the upcoming schemes that the Indian government is about to launch in the future. There is more to it and we present you the Interim Budget 2024 highlights for better understanding. 

Finance Minister Communicated The Achievement of the Government 

Before presenting the budget, Nirmala Sitharaman made sure that the past achievements of the governments were celebrated in the parliament. She mentioned that this government worked relentlessly towards its motto ‘Sabaka Saath Sabaka Vikaas'. 

Through schemes like Har Ghar Jal, bank accounts, and ration cards, the government empowered 80 crore people in the nation. The vision of the government is to earn the status of a Developed Nation by 2047. She let the nation know how the government is committed to curbing corruption and nepotism, major hurdles in the growth of a nation. 

During the past 10 years, the nation has undergone outstanding progress in the infrastructure sector, and four major pillars of society, women, youth, and farmers- are looked after by all means possible. In addition, street vendors across the nation are now well-integrated and part of the development stream of the nation. 

Adequate Regard is given To Farmers and the Agricultural Sector 

No budget is even a budget if it doesn’t announce new schemes and benefits for the farmers of this nation as India is a farming-dominated country. A large part of its population and economy depends on agriculture. 
This budget articulated the government’s achievement in this sector and upcoming strategies. If we talk about the achievements: 

• 11.8 crore farmers received extensive financial assistance under PM KISAN Yojana while 4 crore farmers benefited and 25 crore farmers emerged from poverty with the help of PM Fasal Yojana. 

• PM Kisan Samman Yojana provides continual direct financial aid to both the marginal and small-scale farmers of India every year. 

• The PM Fasal Bima Yojana successfully provided substantial crop insurance coverage to 4 crore farmers.

• The Electronic National Agricultural Market successfully integrated 1,361 mandis across the nation and is now accessible to 1.8 crore farmers. This strategic move promoted the trade transactions of Rs. 3 lakh crores. 

• Pradhan Mantri Kisan Sampada Yojana managed to uplift 38 lakh farmers and generate 10 lakh new job opportunities for farmers. 

• With the formalization of the Micro Food Processing Enterprises Yojana, 2.4 lakh SHGs and 60,000 individuals with credit linkages are assisted directly. 

Besides the achievements, this budget explained the future line of action of the government. 

• The government is planning to launch different types of schemes so that post-harvest losses are reduced,  farmers' basic productivity is improved, and they have more income opportunities. 

• The government aims to encourage private and public investment in post-harvest activities like aggregation, modern storage, primary and secondary processing, supply chains, marketing, and branding.

• Nano Urea adoption was a successful venture. Now, the government is focusing on the adoption of Nano DAP applications on various crops. 

• Aquaculture will double under Matsya Sampada. Under the Fisheries Scheme, fish cultivation is promoted, doubling the export of seafood.

• As India is the largest milk-producing country in the world, adequate measures to increase milk production will be in place.

• The government aims to strengthen the "Atamnirbhar Tel Beej Abhiyaan". The program will promote new technologies and farm insurance for Indian farmers.

Substantial Moves For Taxation and Related Sectors 

• As a nation built by its taxpayers, India never overlooked the taxation section in its budget. For this Interim Budget 2024, the Finance Minister has some promising progress and projections to share with the nation. 

• The overall tax scale of India is increased while the income tax rate remains the same. People with 7 Lakh annual income are not eligible for tax payments. 

• The government has plans to reduce the fiscal deficit for FY24. The set target is 5.8%. Indian states will get up to Rs 75,000 crore in interest-free tax. 

• The current focus is on GDP administration, DVPT, and performance. One nation One market is possible through GST. The global capital inflow improved greatly through GIFT IFSC. 

Govt. Schemes For A Better And Progressive Nation 

• This budget highlighted the role of many government-run schemes towards nation-building. From tribals to artisans of the nation, there is some assured assistance from the government. 

• Under PM Jan Dhan Yojana, direct benefit transfer of Rs. 34 lakh crore has led to huge savings. PM SVANIDHI Yojana offered credit assistance to 78 lakh street vendors, with 2.3 lakh beneficiaries availing of this scheme’s benefit for the third time.

• PM Janman Yojana promoted the upliftment of tribal groups while PM Vishwakarma Yojana supported artisans and craftsmen. The government has schemes for the Divyang and transgenders.

• In the future, maternal, and childcare health clearances will come under one scheme.

• PM Aavaas Yojana made the construction of 3 crore houses in rural areas possible. 2 crores more houses will be allotted

‘Nation will grow only when poor, women, farmers, and youth are uplifted’, said the FM 

Interim Budget 2024 has a lot to offer to the youth and women of this nation as they form a large part of India’s total population. 

• According to the Budget 2024, women will loan incentives to increase their contribution to higher education. 9 crore Indian women will be given help in different ways. Female enrollment in higher education has swelled by 28 percent.

• Skill India Mission did a commendable job in uplifting the youth of the nation as 1.4 crore youth are trained and 54 lakh people were re-skilled under this mission. 

• Under the Lakhpati Didi Mission, 1 crore women became lakhpati in the country, and 2-3 crore women will join the league in the upcoming years. 

• 7 IITs, 16 IITs, 7 IIMs, 15 AIIMSs, and 390 universities have been set up to promote skilled-based learning.  

• PM Mudra Yojana granted a Rs. 22.5 lakh crore loan to support startups and 70% of houses allotted to women under the PM Housing Scheme. 

Other Key Highlights of Interim Budget 2024 

While the prime focus of this Interim Budget 2024 remained to elevate the socio-economic status of poor, women, youth, and farmers, it seems to give equal importance to the overall development of the nation and have more schemes for various sectors. For instance: 

• More importance is given to the development of digital infrastructure, eastern states of India, electric vehicles, Indian tourism, and Blue Economy. 55 lakh new employment opportunities will be generated.

• Efforts are made toward the adoption of an economic approach that will encourage and promote growth. The average income of the general public is 50% higher. The next 5 years will be the years of extraordinary growth

• Substantial development is made to make the most of solar energy. More than 1 crore houses will get power supply through solar energy and they will get free electricity.

• India’s infrastructure development will pick up pace with the launch of new housing loans for the middle class, the Namo Bharat Scheme for the middle class in urban housing, and the construction of 517 new airways. 

• 40,000 railways will be converted into Vande Bharat and expansion of the metro rail system in India. Policies like the National Education Policy 2020, the India Europe-Corridor, and the launch of the Middle East Galler will propel growth. 

• The coal sector will be uplifted by 2030 and the use of compressed biogas over CNG will be promoted. 

• Under the scheme of Developed India, more states will be developed. Strong focus on the branding of Indian states. 

• Measures are taken to control the fiscal losses by 2025-26. The government is due to bring the roadmap of ‘Developed India’ on July 24.

Industry Experts’ Viewpoints on Interim Budget 2024

Now that the budget is finally with us, key stakeholders of different sectors have their viewpoints to share with the nation. If we especially talk about the agricultural sector.

Mr. Amrit Sagar Mittal, President TMA

“The focus of the Union Budget is on socio-economic progress through farmer-centric policies and promotion of technologies and innovation. The allocation to all the effective flagship schemes have been continued. There is strategic thrust on high-impact areas such as seafood & aquaculture, Oilseeds, Nano DAP, and value addition through food processing.

The Finance Minister may consider extension of section 115BAB for providing benefits of tax rate of 15% for minimum three years henceforth to compensate the covid period and keep focus on Make in India initiative.”

Mr. Narinder Mittal, Country Manager & Managing Director – Agriculture Business, CNH India & SAARC, has great insights into Interim Budget 2024 to share with us.

In his words, “The Interim Budget has reinforced the upliftment of farmers with the continuation of PM Kisan Samman Yojana, which annually extends direct financial assistance to a substantial 11.8 crore farmers. The focus on oilseed production and processing marks a significant stride in reducing import dependency while creating new avenues for the growth of the agricultural community. Additionally, the expansion of the crop insurance scheme to benefit 40 million farmers will enhance resilience against unforeseen risks.

Moreover, the allocation of financial assistance to support the procurement of biomass aggregation is a commendable move. Encouraging farmers to participate in the bioenergy supply chain not only promotes sustainable agricultural waste management but also opens up new opportunities for income generation. This will catalyze the demand for cutting-edge farm machinery and crop management solutions, facilitating the adoption of modern farming practices powered by cutting-edge technologies. The decision to further promote private and public investment in post-harvest activities will help the agricultural ecosystem in India to flourish, encompassing every stage of the value chain, from production to market. Overall, we believe these initiatives will play a pivotal role in driving the agricultural sector towards prosperity and resilience.”

Mr. Anish Shah, Group CEO of the Mahindra Group and the Managing Director of Mahindra & Mahindra Ltd.

"The Interim Budget is a clear and outcome-based continuum towards Viksit Bharat, integrating economic growth, climate action, and social empowerment. It maintains a careful balance between investment and fiscal discipline, laying a foundation for a developed nation by 2047. States are empowered to drive reforms, with a focus on a climate-friendly approach, EV ecosystem, tourism, and logistics."