The 2024-25 Union Budget is a forward-looking Budget that responds to the present day needs of the country even as it gives a boost to Prime Minister Narendra Modi’s long-term vision of Viksit Bharat by 2024. 

It is particularly noteworthy that the Budget has prioritised employment generation — including the doubling of ceiling for Mudra loans for entrepreneurs -- by providing the right kind of incentives to industry and the private sector. This will impart a much needed boost to the Indian economy. The Budget is imaginative in its scope and emphasis and is the best blend of policy-making and judicious use of resources.

It builds on the foundation of the last 10 years, and seeks to pivot growth from investment-led to consumption-led. Tax concessions, especially for the middle class, and incentives for job creation are salutary steps in this direction. In this context, the abolition of angel tax will help generate momentum in the start-up economy.

At the same time this Budget has batted for fiscal prudence. In turn, this reinforces macroeconomic stability and strengthens the hand of the Reserve Bank of India (RBI) in managing monetary policy — especially in effecting interest rate cuts and thereby lowering the cost of capital in the country.

The nine priority areas listed by Finance Minister Nirmala Sitharaman represent an accurate assessment and policy emphasis of what the Indian economy needs as the country pushes forward towards its goal of becoming a $5-trillion economy and beyond. These areas are a judicious mix of steps that are needed to ensure that our human resources are utilised to the fullest even as we as a country continue to build what is needed to become a fast-growing economy.

Viksit Bharat goal

Boosting infrastructure is a key pillar of ensuring Viksit Bharat by 2047. The renewal of emphasis on economic reforms is also most welcome. It is high time that India laid the foundations for reforms in factor markets. The FM has outlined reform priorities. The government has also promised to bring out an Economic Policy Framework that will outline its approach to economic development and also usher the next generation of economic reforms. This is most welcome.

The proposals related to urban development are also remarkable. It is well-known that cities are the engines that power economic growth. India needs a holistic approach to urbanisation whereby cities are liveable even as they continue to expand to meet the needs of the economy. The Transit Oriented Development plans for 14 large cities with population above 30 lakh people plans to enhance the ease of living in urban areas. The plan to re-do cities as growth hubs promises to give a much-needed synergy to growth and urbanisation, something that is essential for developing 21st century India.

The Budget is filled with a number of proposals that hold great potential to boost India’s long-term growth. These proposals have been crafted with great imagination. To give one example: The Anusandhan National Research Fund was a long-term demand and necessity to give a boost to domestic R&D efforts. A large number of technologies that have become essential for economic growth can only be developed in-house in India. These technologies are either not available for “off the shelf” purchase or have been purposely denied to India. This Fund promises will go a long way in making India atmanirbhar in vital sectors. It is heartening to note that the private sector is being roped in as a stakeholder.

To sum up, the first budget of this government builds on its commitment to growth, inclusion and next generation reforms. It also sets the tone and blueprint to realise the objective of Viksit Bharat in 2047.

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