Budget 2024 Expectations

India is home to diverse cultures, architectural marvels and vast landscapes, making it a perfect destination for business, tourism and leisure. In recent years, India has positioned itself to grow as a major economy rapidly and is strategically aiming to become the third-largest economy, globally, by 2030.?

India has achieved growth and progress in various domains including local manufacturing and export expansion. Budget is another crucial factor fueling its economic progress.?

The United Nations predicted that India’s economy will grow by 6.2 percent in 2024. This optimistic outlook is supported by robust local demand and significant growth in both the manufacturing and services sectors.

Overview of Budget 2023-2024

As per Reuters India is anticipated to announce economic growth projections that exceed earlier expectations, potentially reaching around 7% for the fiscal year ending in March 2024.

1. First Budget in the “Amrit Kaal”: Establishing the trajectory for India’s growth over the next 25 years.
2. Economy Steers in the Right Direction: Projected 7% growth for FY23, surpassing major global economies.
3. Strategic Emphasis on Key Sectors: Prioritising inclusive development, infrastructure, green growth, harnessing youth power, and strengthening the financial sector.

Key Announcements (2023-2024):

?Income Tax:

• Default status shifts to the New Tax Regime, with the option to choose the old regime.
• No income tax applicable on earnings up to Rs 7.5 lakh in the New Regime, inclusive of Rebate and Standard Deduction.
• Reduction of the highest surcharge rate from 37% to 25% in the New Regime.
• Introduction of new income tax slabs: 0-3 lakh (nil), 3-6 lakh (5%), 6-9 lakh (10%), 9-12 lakh (15%), 12-15 lakh (20%), 15 lakh+ (30%).

?Railways:

• Record allocation with Rs 2.4 lakh crore designated.
• Introduction of 75 Vande Bharat trains scheduled for rollout by August 2023.

?Capital Expenditure:

• Reported a 33% increase, reaching Rs 10 lakh crore.
• Aimed at enhancing growth, fostering job creation, and attracting private investment.

?Defence:

• Budget surged by 13% to reach Rs 5.94 lakh crore.
• Emphasis placed on acquiring modern weaponry, aircraft, and warships.

?Other Significant Points:

• Fiscal deficit target set to be under 4.5% by 2025-26.
• Enhanced funding for MSMEs, agriculture, education, healthcare, housing, and urban development.
• Initiatives implemented to encourage ease of doing business and digital services.
• Extension of the free food grain scheme until 2024.

Click here to read more about Interim Budget 2024 Expected Announcements.