India Budget 2024-2025: Key Expectations and Anticipations

With the Union Budget 2024-2025 on the horizon, there is widespread anticipation about the potential measures and reforms that Finance Minister Nirmala Sitharaman might introduce. This budget holds particular significance as it will be the first major policy announcement by the BJP-led NDA government after securing a historic third term. Here are the key expectations from the upcoming budget, reflecting the hopes and demands of various sectors and stakeholders.

Tax Reforms and Reliefs

One of the primary expectations from Budget 2024-2025 is significant tax reforms aimed at boosting disposable incomes and consumer spending. Industry bodies such as the Confederation of Indian Industry (CII) and the Federation of Indian Chambers of Commerce and Industry (FICCI) have recommended various measures including:

1. Tax Cuts for Lower Income Brackets: To increase disposable income and spur consumption, which has been growing at a slower rate compared to the overall economic growth.
2. Simplification of Capital Gains Tax: Streamlining into fewer categories to make the tax system more efficient.
3. Reforms in Goods and Services Tax (GST): Proposals for fewer tax slabs and inclusion of currently excluded sectors to simplify and enhance the GST regime.

Support for Agriculture

Given that a significant portion of India’s population relies on agriculture, there are strong calls for lifting farm export restrictions to boost rural incomes. Key agricultural reforms expected include:

1. Lifting Restrictions on Farm Exports: Removing curbs on exporting rice, wheat, sugar, and onions to enhance farmer earnings.
2. Increased Spending on Rural Employment: Higher wages under rural job guarantee schemes and increased cash handouts to support rural spending.

Infrastructure and Job Creation

Infrastructure development and job creation are critical areas of focus. The government is expected to announce measures to stimulate these sectors:

1. Enhanced Budget for Infrastructure: A significant increase in capital expenditure to bolster infrastructure projects across the country.
2. Job Creation Incentives: Schemes to incentivize private firms in labor-intensive sectors such as textiles and tourism to generate employment.
3. Support for Skill Development: Dedicated provisions for skill development and training programs to bridge the talent gap in various sectors.

Real Estate and Housing

The real estate sector is anticipating reforms to boost housing, office spaces, and commercial areas. Key expectations include:

1. Interest Subsidy Programs for Home Loans: To make home loans more affordable and revive the Credit-Linked Subsidy Scheme (CLSS).
2. Tax Incentives and Reduced Stamp Duty: To counter rising raw material and land prices and enhance affordability.
3. Industry Status for Housing Sector: Granting industry status and incorporating real estate under GST with a simplified structure to spur growth and investment.

Healthcare and Education

The healthcare and education sectors are looking for increased budget allocations and reforms to improve accessibility and quality:

1. Increased Healthcare Spending: To enhance infrastructure, especially in rural areas, and promote preventive healthcare measures.
2. Support for Online Learning: Reducing GST rates on online education platforms to make learning more affordable.

Sustainability and Green Initiatives

Environmental sustainability is expected to be a key focus area in the budget. Anticipated measures include:

1. Incentives for Electric Vehicles (EVs): Extension of subsidies under the FAME scheme to promote the adoption of electric vehicles.
2. Investment in Renewable Energy: Significant budget allocations for renewable energy projects and sustainable supply chains to propel India towards its USD 5 trillion economy goal.

Industry-Specific Measures

Various industries have specific expectations from the budget:

1. Automobile Sector: Incentives for green technologies and support for the adoption of electric vehicles.
2. Logistics Sector: Measures to enhance sustainability and smart logistics hubs to improve trade competitiveness.
3. Manufacturing and Construction: Continued focus on infrastructure spending and incentives for sustainable and resilient development.

Conclusion

The Union Budget 2024-2025 is poised to address a myriad of expectations from different sectors, aiming to boost economic growth, improve livelihoods, and enhance India’s global competitiveness. By implementing targeted tax reforms, supporting key industries, and promoting sustainable development, the government aims to set a robust foundation for the nation’s progress in the coming years.