The Union Budget 2024 is a mature, forward-looking, and inclusive blueprint for India’s sustainable growth. With a focus on employment and skilling, manufacturing, infrastructure, innovation, women empowerment, and R&D, the Budget ticks several boxes.
Manufacturing and infrastructure as key pillars for growth
The Budget’s support for the manufacturing sector through financing, regulatory changes, and technology and financial support for MSMEs, is essential for holistic growth. This Budget’s emphasis on labour-intensive manufacturing will generate employment opportunities and boost productivity. The Budget’s commitment to infrastructure development, with an annual outlay of ₹11.11 lakh crore is a decisive step towards creating growth enablers for a developed India (Viksit Bharat). This substantial investment will accelerate the development of critical infrastructure, facilitating smoother logistics and reducing costs. The decision to sanction 12 industrial parks under the National Industrial Corridor Development will further strengthen upstream and downstream linkages for the manufacturing ecosystem in the country. Other infra-focused announcements such as three crore new houses and road-development projects will help sustain growth in the metals sector.
Employment and Skilling
A significant highlight of this Budget is the allocation of ₹2 lakh crore under the Prime Minister’s Package for Employment and Skilling, set to benefit over 4 crore youth. This initiative is promising for enhancing the employability of the Indian workforce. The upgradation of 1,000 Industrial Training Institutes (ITIs) will further help with the supply of trained and skilled labour, essential for sustaining industrial growth. At Jindal Stainless, we prioritise industry-academia collaboration and are committed to developing and upskilling our workforce. This is to ensure they are equipped with necessary skills to drive awareness and appropriate adoption of stainless steel, especially in downstream industries.
The government’s plans to set up working women hostels aimed at boosting women’s participation in the workforce is a step in the right direction, particularly for heavy industries located in peripheral regions. Also, introducing a scheme for providing internship opportunities for 1 crore young people addresses a key concern in our education system, by bridging the gap between academics and practice.
India Inc
The government has proposed abolishing the so-called angel tax for all classes of investors – an important step in ensuring that the start-up momentum in India doesn’t slow down. Also, substantial allocations have been earmarked for infrastructure development and technology upgrades. Key highlights include a significant increase in funds for the Production-Linked Incentive (PLI) scheme, aimed at attracting more investments and enhancing production capacity. The Finance Minister’s announcement of incentivising job creation in the manufacturing sector by linking it to the employment of first-time employees is a much-needed step in boosting employment.
Much-needed exemption
The exemption of duties on ferro nickel will reduce the raw material cost burden, for greater competitiveness in the international market. Additionally, the continuation of zero duty on key raw materials like ferrous scrap and pure nickel is crucial for maintaining the sector’s cost competitiveness. The focus on critical minerals will also benefit the metals industry, which relies heavily on a stable supply of high-quality raw materials. By refining and processing these minerals domestically, we can ensure a steady supply chain, reduce import dependency, and enhance the industry’s resilience to global market fluctuations. The exemption of customs duties on 25 critical minerals is another significant step towards self-reliance. The steel industry, however, would have liked to see decisive measures to stop the dumping of low-quality imports from China, a much-needed intervention to give domestic manufacturing a chance at fair-play.
Innovation and R&D
The government’s push for R&D, particularly in nuclear technology, is a strategic move that will have far-reaching benefits. As energy-dependent sectors look for sustainable solutions, advancements in nuclear technology will provide clean energy alternatives, enhancing India’s competitiveness in emissions-sensitive markets such as the European Union. This focus on innovation will not only address current challenges but also position India as a leader in sustainable and advanced technologies.
I am particularly happy that this Budget provides for financial support of ₹10 lakh for the youth of India for their higher education, and too by way of direct disbursement to students. For India to become the manufacturing powerhouse it has the potential to become, we need more and better education for the young.
We believe that this Budget lays the groundwork for a robust and self-reliant, and innovative India.
(The author is MD, Jindal Stainless Ltd )