Finance Minister Nirmala Sitharaman presented first budget under Modi 3.0 government on Tuesday, July 23.
Sitharaman introduced increased standard deduction and revised tax rates for salaried individuals under the new tax regime. Besides this, cut on customs duty on gold, silver, mobile phones and other goods were announced.
The Centre’s FY25 Capex spend seen at ₹11.1 lakh crore — unchanged from Interim Budget, and infrastructure spend at 3.4% of GDP.
Budget 2024
Revised tax rate under New Tax Regime as follows:
₹0-3 lakh – nil tax
₹3-7 lakh – 5%
₹7-10 lakh – 10%
₹10-12 lakh – 15%
₹12-15 lakh – 20%
Above ₹15 lakh – 30%
Union Budget 2024
Highlights from Budget so far
- Employment and Skilling:
Five schemes to focus on 4.1 crore youth over 5 years with a central outlay of ₹2 lakh crore
Comprehensive internship scheme for one crore youth in top companies over five years
Employment-linked incentives, including one month’s wage support for first-time employees
Women-specific skilling programs and increased workforce participation
- MSME and Manufacturing Support:
Special attention to MSMEs and manufacturing sector
Credit guarantee scheme and term loans for machinery purchase
Technology support package for MSMEs
SIDBI to open 24 new branches to serve MSME clusters
- Financial Initiatives:
Mudra loan limit increased from ₹10 lakh to ₹20 lakh for previous borrowers
Financial support for higher education loans up to ₹10 lakhs in domestic institutions
Integrated technology system for Insolvency and Bankruptcy Code (IBC)
- Agriculture and Rural Development:
₹2.66 lakh crore provision for rural development
Transformation of agricultural research to focus on productivity and climate-resilient crop varieties
Initiative to introduce 1 crore farmers to natural farming over 2 years
- Infrastructure and Regional Development:
Rental housing in PPP mode for industrial workers
Special financial support of ₹15,000 crore for Andhra Pradesh
New airports, medical facilities, and sports infrastructure for Bihar
- Economic Outlook:
Inflation moving towards 4% target
India’s economic growth described as a “shining exception”
Focus on job creation and boosting consumption, potentially benefiting consumer goods, real estate, and auto sectors
- Nine Priority Areas: Agriculture, Employment, Inclusive Development, Manufacturing and Services, Urban Development, Energy, Infrastructure, Innovation and R&D, and Next Generation Reforms.
- Women-Led Development: Over ₹3 lakh crore allocated for schemes benefiting women and girls.
- Social Welfare: Extension of PMGKAY (Pradhan Mantri Garib Kalyan Anna Yojana) for five years, benefiting over 80 crore people
- Digital and Technological Advancements: Development of Digital Public Infrastructure (DPI) applications for credit, e-commerce, law and justice, and corporate governance
Read the latest news on Budget 2024 with our live coverage on the Income Tax Slab, Impact on Share Market, Budget Key Highlights, Corporate Reactions.
The budget aims to revitalize the startup ecosystem and manufacturing sector altogether. The decision to remove angel tax is a major relaxation, which will boost the confidence of the startups. Also, the initiatives to boost manufacturing jobs, employments, skilling the youth and women will create a pool of skilled workers with disposable income & potentially drive growth in the industry. This two-pronged approach could propel India’s startup ecosystem and manufacturing base forward,” said Mr. Kunal Sethi, CEO of The Detailing Mafia.
To promote women-led development, Finance Minister Nirmala Sitharaman announced on Tuesday that the budget includes an allocation of over ₹3 lakh crore for programs benefiting women and girls. While presenting the Union Budget for 2024-25 in the Lok Sabha, Sitharaman emphasized that this allocation reflects the government’s commitment to enhancing the role of women in economic development.
The Budget’s announcement to cut import duty on gold will enhance domestic manufacturing and promote jewelry exports, Commerce and Industry Minister Piyush Goyal said on Tuesday. He also mentioned that removing the angel tax will further bolster the startup ecosystem in the country. Additionally, he noted that with high gold prices and the upcoming marriage season, this measure will benefit the people.
he government’s attempt in positioning India as the global tourist destination is evident in the Union Budget 2024-25. Demonstrating efforts to promote religious tourism and domestic tourism infrastructure. With special focus on Bihar, Nalanda, and Odisha, the government plans to develop the iconic religious sites to support its infrastructure and transform them into world class pilgrim and tourist destinations. We are optimistic that this will enhance the overall experience of the tourists visiting these religious sites and will uplift the state tourism.”
The Union Budget 2024 brings significant developments for GIFT IFSC. The announcement of a tax-efficient regime for retail funds and ETFs will create new business opportunities for asset management companies in GIFT City. This move is expected to attract investments from NRIs and foreign retail investors into India. We thank the Union government for its continued support in helping GIFT City become a truly vibrant global financial centre.
Finance Minister Nirmala Sitharaman has presented the Budget today. The FM has hiked STCG tax to 20% and LTCG raised from 10% to 12.5%. STT on Future and Option hiked to 0.02% and 0.1% as well as income from buyback to be taxes. The budget has also emphasized on Infrastructure. FM has announced new airports, medical facilities and sports infra for Bihar and Rs. 26,000Cr to be allocated to highways in Bihar. Budget also announce scheme to promote water supply, sewage treatment and solid waste management projects and services for 100 large cities. Rs. 2.66 Lakh Crore has been allocated towards Rural development and rural infrastructure whereas allocated of Rs. 10Lakh Crore for 1 crore houses for urban poor.
FM also announced 3 schemes for Employment Linked Incentive to boost employment and skill development, which includes 1 month wage to new entrants in all formal sectors in 3 instalments up to Rs.15,000, incentive to both employee and employer for EPFO contributions in the specified scales for the first 4 years.
FM also emphasized on non-renewable and renewable energy development.
FM announced a 2400MW power plant setup in Bihar at cost of Rs. 21400Cr. She also announced a joint venture between NTPC and BHEL will set up a full scale 800 MW commercial plant.
The government has proposed an allocation of ₹1.28 lakh crore for telecom projects and public sector companies under the telecom ministry, with the majority of the funds designated for state-owned BSNL. Over ₹1 lakh crore of the total proposed allocation is intended for BSNL and MTNL-related expenses, including ₹82,916 crore for technology upgrades and restructuring at BSNL.
We wanted to simplify the approach to taxation – also for the capital gains. Second, if anything, the average taxation has actually come down when we say it is 12.5%. We have worked out for each of the different asset classes…The point that we brought it down from below the average to 12.5% encourages investment in the markets
Sitharaman addressed the issue of investments from China, noting that the Economic Survey offered its perspective on the matter. She explained that, similar to investments from other neighboring countries, these investments are subject to a review process. Although the survey indicated it might be time to open up, she emphasized that this suggestion is still being considered cautiously and clarified that she is not dismissing it.
PM Modi on new opportunities for startups and space economy
Prime Minister Narendra Modi says “For MSMEs, a new scheme to increase ease of credit has been announced in the budget. Announcements have been made to take export and manufacturing ecosystem to every district in this budget…This budget will bring new opportunities for startups and the space economy.