The Union Budget 2024 stands as a landmark in India’s fiscal history, epitomising an ambitious yet calculated blueprint designed to catapult the nation into a new era of economic prosperity. Industries have responded with widespread approval, lauding the government’s foresight and meticulous sectoral planning.
This budget heralds not merely growth, but a transformation poised to foster sustainable development, infrastructural expansion, and human capital enhancement. Encompassing multifaceted strategic initiatives ranging from urban development and real estate growth to employment-oriented reforms and fiscal incentives, the budget’s transformative approach addresses critical societal needs.
A major objective is to increase employability and strengthen the workforce, thereby ensuring long-term economic sustainability.
Cornerstone of growth
The Budget manifests a strategic emphasis on employment generation through fiscal incentives and structural reforms. Key programmes reflect the government’s dedication to boosting youth employability, including private sector internships, salary support, and CSR-funded training initiatives.
These measures are designed to directly influence the job market by creating employment opportunities and indirectly stimulating economic growth. The skilling programmes aim to align workforce capabilities with industry demands, fostering a symbiotic relationship between employability and economic expansion. By utilising human capital as a catalyst for economic development, the government demonstrates a robust commitment to long-term economic sustainability.
This focus on youth employability transcends necessity, emerging as a pivotal component for a sustainable future.
Transformative Urban Development
The Union Budget 2024 sets a transformative agenda for urban development with an extraordinary allocation of ₹10 lakh crore under the PMAY Urban Scheme to construct 3 crore houses, aiming to address urban housing deficits comprehensively. Strategic initiatives include the integration of rental housing through dormitories in industrial parks via the PPP model and the inauguration of 12 new industrial parks.
These measures aim to accommodate urban migrants while boosting industrial productivity. Industry experts foresee these initiatives leading to broader reforms in the rental housing market, making it more accessible and affordable for economically weaker sections.
Forward-thinking measures, such as the digitisation of land records and GIS mapping, modernize real estate administration, enhancing transparency and efficiency. These initiatives, coupled with workforce skilling, are expected to drive substantial growth in the sector, already experiencing double-digit growth. Improved transparency and efficiency in land transactions can stimulate investment and streamline project execution.
Emphasis on Sustainable Development
In alignment with global climate resilience and sustainable urban living objectives, the budget emphasises sustainable development through investments in solar and renewable energy, water conservation, and solid waste management. The reduction in long-term capital gain tax to 12.5 per cent, along with a decreased holding period for long-term gains to 24 months for tax parity with equity shares, is designed to rejuvenate investment flows into the property market. Encouraging state governments to lower stamp duty and other development premiums aims to reduce overall development costs, making housing more affordable and potentially spurring market demand. The implementation of redevelopment and transit-oriented development schemes reflects the government’s ambition to not only expand urban areas but also make them more liveable and economically vibrant.
Comprehensive Roadmap
India is on a transformative journey driven by strategic investments and innovative policy frameworks that aim to uplift every segment of society. The budget’s focus on skilling and MSMEs is expected to nurture a highly capable workforce and foster entrepreneurial ventures, fuelling economic activity and job creation. Similarly, investments in education and urban development are paving the way for a more educated and better-housed population, setting the stage for sustainable long-term growth.
Author is Chairman – Hiranandani Group and NAREDCO