Union Budget 2024: Anticipations for India's Economic Blueprint

The upcoming Union Budget in July 2024 is a highly anticipated event in India, generating a buzz of expectations and predictions from various sectors. As Finance Minister prepares to unveil the government’s first full budget for its third term, key stakeholders are eager to understand the government’s plans to address pressing economic issues and propel India’s growth trajectory.

Let's focus on the sectors or points where India is anticipating some relief from the government.

Balance Between Growth and Fiscal Stability

The budget aims to boost the economy while keeping spending under control. To help with rising prices, which are worrying many families, there will be steps to control inflation. Creating jobs will also be a main focus, with the government planning new initiatives to increase employment in various industries.

Tax Relief for Salaried Individuals?

People who earn salaries are eagerly waiting for possible reductions in income tax rates or an increase in the amount of income that is exempt from taxes. These changes are expected to be part of the new tax rules that started in 2020.

Reforming Capital Gains Tax

Investors are expecting changes to how capital gains taxes work. Right now, it's seen as too complicated because different types of assets have different tax rates and rules about how long you have to hold them. This complexity makes it hard for people to understand and follow the rules. The upcoming budget might propose a simpler system to make things clearer and easier for investors. They could make tax rates more consistent across all types of assets and change the rules about how inflation affects long term gains.

Infrastructure Boost

The government plans to continue investing heavily in building and improving roads through the Ministry of Road Transport and Highways in the upcoming fiscal year, 2024-25. They're likely to increase the Union budget for this by around 5% to 10% compared to last year. Alongside government funding, private companies are also expected to invest in road projects, especially through models where they build, operate and eventually transfer the toll roads to the government. Last year, private investments in roads totaled about ₹34,805 crore and this year, they're expected to nearly double to ₹68,000 crore. This combined effort aims to boost road infrastructure across the country.

Promoting Electronics Manufacturing: A Push for Made in India

Electronics and mobile phone manufacturing sector has requested financial incentives totaling approximately ₹40,000-45,000 crore. This support may be in the form of direct financial aid or an expansion of the production linked incentive (PLI) scheme. The industry association representing leading handset makers and electronics manufacturers has also urged for rationalization of import duty structures. They suggest gradually reducing duties on mobile phone components and sub assemblies to enhance India's attractiveness for global value chains. This initiative supports the government's overarching goal of positioning India as a key global manufacturing hub while reducing reliance on countries such as China.

Advancing India's Manufacturing Ambitions?

India wants to become a major player in global manufacturing. It might include incentives for local production, better infrastructure for supply chains, and improvements in trade deals. Success here will decide if India can compete with big manufacturing countries and find its place in global supply chains.

Addressing Logistics Challenges

The budget will likely focus heavily on improving infrastructure. This means investing more in roads, railways, and other transport systems to make them better and cheaper to use. This is important because it will help goods move around India more efficiently, which is something India needs to improve compared to other countries.

Final Words

Union Budget 2024 is a crucial event that will shape India's economic path for the next year. It aims to boost growth, create jobs and manage finances better. People are eager to see how the government plans to tackle inflation, encourage investments and simplify taxes. The budget 2024 will also focus on helping India's manufacturing sector grow and become a key part of global supply chains. To succeed, it needs to invest in skills training, improve infrastructure and tackle regulatory issues effectively.