Budget 2024 Highlights: Custom duty on gold, mobile phones reduced; income tax structure revised - Check Details
Budget 2024 Highlights, India Union Budget 2024-25: Union Finance Minister Nirmala Sitharaman on Tuesday presented the Budget for 2024-25, her 7th straight presentation surpassing the record of former prime minister Morarji Desai.
This is the first Budget during Prime Minister Narendra Modi-led government's third term in office.
This year's Budget will be keenly watched as several major economies in the world have been struggling. India, on the other hand, has retained its tag as the fastest-growing economy.
Also, all eyes will be on announcements related to Tax Reforms as there are expectations that the government may announce changes in income tax slabs and rates to give relief to the middle class. This is expected mainly because of the Assembly elections in three states. However, the first Budget of a government is usually the one with the toughest decisions. It will be therefore interesting to see every announcement made during the Budget 2024.
Follow Zee Business Blog for all the updates on the Union Budget 2024
Budget 2024 Highlights, India Union Budget 2024-25: Union Finance Minister Nirmala Sitharaman on Tuesday presented the Budget for 2024-25, her 7th straight presentation surpassing the record of former prime minister Morarji Desai.
This is the first Budget during Prime Minister Narendra Modi-led government's third term in office.
This year's Budget will be keenly watched as several major economies in the world have been struggling. India, on the other hand, has retained its tag as the fastest-growing economy.
Also, all eyes will be on announcements related to Tax Reforms as there are expectations that the government may announce changes in income tax slabs and rates to give relief to the middle class. This is expected mainly because of the Assembly elections in three states. However, the first Budget of a government is usually the one with the toughest decisions. It will be therefore interesting to see every announcement made during the Budget 2024.
Follow Zee Business Blog for all the updates on the Union Budget 2024
Latest Updates
Union Budget 2024: "Transformative moment for India's renewable energy sector"
"The Union Budget 2024-25 is expected to mark as a transformative moment for India's renewable energy sector, reaffirming the government's commitment to sustainability, energy security, and economic growth. The PM Surya Ghar Muft Bijli Yojana is an initiative which is not only revolutionizing energy accessibility and affordability but also expected to generate substantial employment opportunities in solar panel manufacturing and maintenance while demonstrating the possible tangible benefits of renewable energy adoption. On the other hand, we eagerly wait to witness the announcement of the policy document on energy transition pathways which is expected to be a significant catalyst in the energy sector. Moreover, the exemption of customs duties on 25 critical minerals and the reduction of duties on two others is a decision that may boost resource efficiency and high-tech manufacturing in the solar sector. The expansion of the list of exempted capital goods for solar manufacturing may further strengthen the country's ability to enhance domestic production capabilities, reducing reliance on imports and fostering self-reliance. Additionally, guidelines for energy efficiency and emission targets for 'hard to abate' industries may reduce India’s carbon footprint. Also, the support announced for pump storage projects is critical for maintaining grid stability and ensuring round-the-clock energy availability. The government's development of a taxonomy for clients to enhance the availability of capital for climate adaptation and mitigation is another noteworthy initiative. This may facilitate the achievement of the country's climate commitments and green transition, providing the financial backbone necessary for sustainable progress," said Dr. Amit Paithankar, Chief Executive Officer, Waaree Energies Limited.
Budget 2024: "Impetus on PM Surya Ghar Muft Bijli Yojana will help fast track nationwide adoption of roof top solar"
“I would like to congratulate the Government for presenting a visionary Budget that focuses on sustainable and inclusive economic growth. I particularly welcome several announcements that reflect the Government’s continued support for the renewable energy sector. The impetus on PM Surya Ghar Muft Bijli Yojana will help fast track nationwide adoption of roof top solar, helping expand our overall RE capacity. The proposed investment in Pumped Storage programmes is a much-needed step that will ensure smoother integration of growing RE, leading to more reliable supply of green power and grid stability. The focus on transitioning hard to abate industries to greener alternatives will catalyze the C&I sector’s journey towards net zero. Introduction of a taxonomy for climate finance will help attract much needed capital for boosting climate resilience. Finally, the expanded duty exemptions will also help propel the RE sector ahead. This is a positive budget for the sector that should help continue the momentum of India’s energy transition and Hero Future Energies remains committed to partnering with the Government in enabling this mission, said Srivatsan Iyer, Global CEO, Hero Future Energies.
Union Budget 2024: "Aligned with the India AI Mission and Viksit Bharat 2047"
“The Union Budget and Economic Survey’s emphasis on technological innovation and digitization sets India on the fast track to becoming an ‘AI-first nation,’ opening new opportunities for collective and inclusive progress from commerce to communities. Leveraging a digitized economy and an AI-ready workforce aligns well with the budget’s priorities towards employment & skilling, innovation, research & development, and productivity & resilience in agriculture. With a diffusion rate surpassing that of any previous technology, India leads the world in AI skill penetration and talent concentration rates. This progress is remarkable, with human capital, businesses, and public sector organizations rapidly adopting new technologies. Aligned with the ‘India AI Mission’ and ‘Viksit Bharat 2047,’ our commitment includes partnerships with the Government of India, various industries, and diverse communities for skilling, training, and development initiatives. This involves equipping 2 million people with AI skills by 2025. We are also transforming agriculture in India working with our partners to implement modernized, AI-driven Agri-Tech solutions to help farmers manage their farms and production and overcome challenges. At Microsoft, we are committed to ensuring AI serves 1 billion citizens in India by 2030. Together, we are building a future-ready unstoppable India, where AI drives innovation, inclusivity, and progress for all,” said Puneet Chandok, President, Microsoft India & South Asia.
Budget 2024: Cement Manufacturers Association (CMA) Applauds Focus on Infrastructure Development and Decarbonisation in Union Budget FY25
"The Cement Manufacturers’ Association (CMA) today welcomed the Union Budget 2024-25 presented by the Honourable Finance Minister Nirmala Sitharaman. The Budget presents a commendable vision for India’s economic growth, with a strong emphasis on infrastructure development, employment generation and energy security. Against the backdrop of global uncertainties and inflation, the Union Budget 2024-25 is transformative and forward looking with an eye on fiscal consolidation. The announcement of INR 11 lakh crore capital expenditure signifies the Government's commitment to modernising India’s infrastructure through various significant projects and allocations, which will undoubtedly drive demand for Cement and other building materials. These initiatives collectively illustrate the Budget's comprehensive and strategic approach to bolstering India's infrastructure across various sectors," Neeraj Akhoury, President, Cement Manufacturers’ Association (CMA) and Managing Director, Shree Cement Limited.
Budget 2024 Live Updates: "Crucial step towards enhancing India's climate action by proposing the development of a taxonomy for climate finance"
"The Union Budget 2024-25 presented by Finance Minister Nirmala Sitharaman has taken a crucial step towards enhancing India's climate action by proposing the development of a taxonomy for climate finance. I was very glad to hear the terms Climate Adaptation funding as it is a non-trivial way to look at financing renewable energy programs. I am hoping to see more clarity on this action and subsequently policies supporting climate adaptation projects as this will redefine the future of energy security for rural communities that bear the brunt of the climate change. Furthermore, the budget highlights the government's commitment to bringing out a policy document on appropriate energy transition pathways. This will provide a roadmap for India's energy transition, outlining strategies and measures to accelerate the adoption of clean energy technologies, promote energy efficiency, and reduce the country's reliance on fossil fuels. By considering the socio-economic implications of the energy transition, the government aims to ensure a just and inclusive transition that benefits all segments of society," said Manoj Sinha, CEO and Co-founder, Husk Power Systems.
Budget 2024 Live Updates: "Taxpayers under the new regime will face lower tax burdens"
"This Union Budget is aimed at enhancing employment, skill development, MSMEs, and the welfare of the middle class. By raising the standard deduction and adjusting tax slabs, taxpayers under the new regime will face lower tax burdens, thus improving their disposable income, which bodes well for consumer spending. The introduction of a clause pertaining to non-deductible expenses in Section 37 for life insurance companies may lead to tax litigation. The proposed hike in Capital Gain Tax is expected to impact the tax liabilities for ULIP policyholders. However, the ULIP holders purchasing policies with premium of less than 2.5 lakh p.a. can continue to avail benefits under Section 10 (10D) and are not liable to pay any tax on maturity. The decrease in TDS rate from 5% to 2% on policy payouts is anticipated to boost customers' liquidity, which is a welcome move," said Rushabh Gandhi, MD & CEO at IndiaFirst Life Insurance
Budget 2024 Live Updates: "Some relief to the salaried taxpayers"
"Budget 2024 has tried to provide some relief to the salaried taxpayers, especially those in the lower tax slabs, in the form of increased standard deduction and some favourable tweaks in the tax slabs under the new tax regime. The proposal to increase deduction for family pension under the new tax regime should also provide some relief to those in the golden years. We welcome the Government’s move to include MSMEs in the 9 priorities of the Budget. The proposed credit guarantee scheme for the purchasing of equipments and machineries by MSMEs, without the need of furnishing collaterals or third-party guarantee, should help in improving the credit flow to the manufacturing MSMEs. We also welcome the announcement of a new credit assessment model for MSMEs based on their digital footprints. Alternative credit scoring models like these would not only help increase access to credit for MSMEs, but would also incentivise adoption of digital payment. However, the most positive announcement is the proposal to set up a new mechanism for ensuring credit access for MSME during financial stress caused by factors beyond their control. The current SMA guidelines restrict the MSMEs from using their existing credit lines when they require it the most. It is good that the government has recognised this problem and we hope that the regulator takes a more nuanced approach towards the unique payment cycle related problems faced by the MSMEs," Naveen Kukreja, Co-Founder and CEO, Paisabazaar.
Budget 2024 Live Updates: "It is a growth-oriented budget"
"The Union Budget would have called for celebrations by the equity market if only the government had not tinkered with the capital gain tax and avoided hiking of the security transaction tax (STT) in the derivative segment. The key highlight of this Budget is the fiscal prudence. The government has pegged the fiscal deficit target at 4.9% despite healthy capital outlay of Rs. 11.11 lakh crore and additional expenditure in the key areas of agriculture & allied sectors, skilling & employment creation, tax relief to middle class and finally providing much higher allocation for development of Bihar and Andhra Pradesh. So overall it is a growth oriented budget and the equity markets would quickly adjusted to changes in the taxation post the knee jerk reaction today," said Gaurav Dua, Head – Capital Market strategy, Sharekhan by BNP Paribas for the Union Budget FY25.
Budget 2024 Live Updates: "Proposed increase in employer contributions to NPS from 10 to 14 percent reinforces the role of employers in fostering long-term financial and social security for their workforce"
“The Union Budget's introduction of the National Pension Scheme (NPS) Vatsalya is a commendable step forward in promoting retirement savings and fostering long-term financial security. By allowing parents and guardians to initiate their minor child’s NPS account, the initiative sets the foundation for responsible financial management from an early age. As these accounts transition into regular NPS plans upon adulthood, they provide a smooth continuation of savings habits into adulthood. Additionally, the proposed increase in employer contributions to NPS from 10 to 14 percent reinforces the role of employers in fostering long-term financial and social security for their workforce. Such measures, supported by entities like Max Life Pension Fund Management, are pivotal in enhancing financial stability for families across India, ensuring every citizen looks forward to a stable retirement,” said Ranbheer Singh Dhariwal, Chief Executive Officer, Max Life Pension Fund Management.
Budget 2024 Live Updates: "Fiscal Prudence Meets Growth Ambition"
"The Finance Minister's 2024-2025 budget strikes a careful balance between fostering economic growth and ensuring fiscal prudence. The budget emphasizes support for MSMEs, youth employment & skilling, and relief for the middle class, while maintaining a strong commitment to infrastructure development. Tax reforms and financial sector improvements are also central, aiming to streamline the economic framework and boost overall economic performance. Although the initial market response to changes in securities transaction tax (STT) on futures and options, along with adjustments in short-term and long-term capital gains taxes, was mixed, the market has since shown resilience. Investors are demonstrating confidence in the long-term outlook, using the budget as an opportunity to accumulate quality stocks. This optimism reflects a broader belief in the budget’s potential to drive sustainable market growth and economic stability," said Gurpreet Sidana, CEO, Religare Broking Ltd.
Budget 2024 Live Updates: "Budget is expected to impact 30 lakh youth by creating new employment opportunities"
"The Budget 2024-25 introduces the Anusandhan National Research Fund and provides incentives for R&D, which will support advancements in the electronics manufacturing sector. With a focus on incentivizing job creation, the budget is expected to impact 30 lakh youth by creating new employment opportunities. The emphasis on R&D and infrastructure development will help build a supportive environment for the growth of electronics manufacturing in India, strengthening the country’s position in the global market," said Sharan Maini, Director of Veira Group.
Budget 2024 Live Updates: "Substantial boost for sectors like high-tech electronics and renewable energy"
"The Union Budget 2024 reflects a forward-thinking approach that will significantly benefit the consumer durables industry and bolster our efforts towards sustainable development. The full exemption of customs duties on 25 critical minerals, including lithium, copper, cobalt, and rare earth elements, is a substantial boost for sectors reliant on these materials, such as high-tech electronics and renewable energy. This policy will not only enhance the availability of these essential resources but also stimulate domestic processing and refining capacities, driving innovation and reducing costs," Pradeep Bakshi, MD & CEO, Voltas Limited.
Budget 2024 Live Updates: "Strategic push for transit-oriented development showcases a forward-thinking approach"
"Budget 2024 stands out for its people-centric vision and powerfully advancing affordable housing in urban areas with a landmark allocation of Rs. 10 lakh crore under the PM Awas Yojana-Urban 2.0. As it targets to meet the housing needs of 1 crore poor and middle-class families, it is expected to boost affordable housing segment and create millions of jobs in the process. The allocation of Rs. 11.11 lakh crore for infrastructural development, along with the innovative PPP model for rental housing in urban centers and the strategic push for transit-oriented development showcases a forward-thinking approach. These initiatives will undeniably propel real estate development in the right direction. Moreover, the reduction in stamp duty for women buyers will help build an inclusive real estate market. In essence, the budget represents a strategic economic boost, ensuring India’s macro growth remains resilient amid global uncertainties. By prioritizing key sectors such as skilling, urban development, and infrastructure, this budget injects crucial energy and momentum into the economy," Mohit Goel, Managing Director of Omaxe.
Budget 2024 Live Updates: "Slight more tax relief should be considered for the middle class salaried people considering their low savings investments"
“The Government has done a commendable job by relaxing individuals income tax slab. It is a great decision for middle-income groups. This group has been struggling to save and barely managed to save with existing tax saving schemes. This refreshing change will allow them to have increased income and contribute to their economic stability. Also, a slight more tax relief should be considered for the middle class salaried people considering their low savings investments,” said CA Inderjeet Singh, Partner, AHSG & Co LLP.
Budget 2024 Live Updates: "Mapping of agricultural land using unique identifier (ULPIN) will help increase credit penetration among farmers"
“The Govt went all out to continue its reforms in agri and allied sectors. The Finance Minister proposed to provide coverage to farmers and their land under digital public infrastructure under which 6 crore farmers and their land will be brought into the farmer and land registry. Furthermore, the push to boost digital agriculture infrastructure is a step in right direction. This mapping of agricultural land using unique identifier (ULPIN) will help increase credit penetration among farmers. This will also help lenders to better gauge the credit profile of farmers. I believe, the proposal will not just bring efficiency in onboarding farmers as borrowers but also reduce instances of defaults. Besides, the abolishing of angel tax on startups will leave entrepreneurs with more capital to develop their businesses and will encourage the startup ecosystem. We can see more investments in businesses with this step,” said Vishal Sharma, Cofounder & CEO, AdvaRisk, an ICICI and NABARD-backed Fintech startup.