Budget 2024-25: Viksit Bharat

Saturation Approach

Committing to comprehensive development, the government aims to empower farmers, youth, women, and the poor through education and health programs covering all eligible individuals.

Support for Economic Activities

Schemes like PM Vishwakarma, PM SVANidhi, National Livelihood Missions, and Stand-Up India will be enhanced to assist craftsmen, artisans, SHGs, SC/ST, women entrepreneurs, and street vendors.

Purvodaya Initiative

The Purvodaya plan targets all-round development of the eastern states, focusing on human resource development, infrastructure, and economic opportunities to transform the region into a growth engine.

Industrial Development

The Amritsar Kolkata Industrial Corridor's industrial node at Gaya will promote industrial growth and blend cultural heritage with modern economic development, embodying "Vikas bhi Virasat bhi".

Infrastructure Projects

Major road connectivity projects and power projects, including a new 2400 MW power plant, will be developed in Bihar at a combined cost of ` 47,400 crore to boost regional growth.

Capital Investments for Bihar

Additional allocations and expedited external assistance from multilateral development banks will support Bihar's capital investments and infrastructural advancements.

Andhra Pradesh Reorganization Act

The government will provide ` 15,000 crore this year, with future allocations, for the state's capital and ensure early completion of the Polavaram Irrigation Project, vital for food security.

Industrial Nodes in Andhra Pradesh

Essential infrastructure funding will be directed to the Kopparthy and Orvakal nodes on the industrial corridors, promoting regional industrial development and economic growth.

PM Awas Yojana

The budget announces 3 crore additional houses under PM Awas Yojana for rural and urban areas, with necessary allocations for housing development.

Women-Led Development

An allocation of over ` 3 lakh crore for women and girls' schemes underscores the government's commitment to enhancing women's role in economic development.

Pradhan Mantri Janjatiya Unnat Gram Abhiyan

A new initiative targeting tribal-majority villages will benefit 5 crore tribal people through saturation coverage, improving socio-economic conditions in 63,000 villages.

Bank Branches in North-East

Over 100 branches of India Post Payment Bank will be established in the North-East region to expand banking services and enhance financial inclusion.

Rural Development Allocation

The budget provisions ` 2.66 lakh crore for rural development, including rural infrastructure, emphasizing the importance of rural growth and connectivity.

Special Focus on MSMEs

The budget highlights special measures to support MSMEs, particularly in labor-intensive manufacturing. The package includes financing, regulatory changes, and technology support.

Credit Guarantee Scheme for MSMEs

A credit guarantee scheme will be launched to facilitate term loans for MSMEs for machinery and equipment purchases without collateral, offering guarantees up to ₹100 crore.

New MSME Credit Assessment Model

Public sector banks will develop an in-house capability to assess MSME credit based on digital footprints, improving over traditional asset or turnover-based criteria.

Enhanced Mudra Loans

The limit for Mudra loans will be increased to ₹20 lakh from ₹10 lakh for entrepreneurs who have successfully repaid previous loans under the 'Tarun' category.

Mandatory On boarding in TReDS

To facilitate MSMEs in converting trade receivables into cash, the turnover threshold for mandatory onboarding on the TReDS platform will be reduced from ₹500 crore to ₹250 crore.

Support for Food Irradiation and Quality Testing

Financial support will be provided for setting up 50 multi-product food irradiation units and 100 food quality and safety testing labs with NABL accreditation in the MSME sector.

E-Commerce Export Hubs

E-Commerce Export Hubs will be established in PPP mode to enable MSMEs and traditional artisans to sell their products in international markets under a seamless regulatory and logistic framework.

Internships in Top Companies

A comprehensive scheme will be launched to provide internship opportunities in 500 top companies to 1 crore youth over five years, offering real-life business exposure and a monthly stipend.

Development of Industrial Parks

Investment-ready "plug and play" industrial parks with complete infrastructure will be developed in or near 100 cities in partnership with states and the private sector.

Reforms in the Shipping Industry

Ownership, leasing, and flagging reforms will be implemented to enhance the share of the Indian shipping industry and generate more employment opportunities.

Critical Mineral Mission

A Critical Mineral Mission will be established for domestic production, recycling, and overseas acquisition of critical minerals, including technology development and workforce training.

Offshore Mining of Minerals

The government will launch the auction of the first tranche of offshore blocks for mining, building on previous exploration efforts.

Development of Digital Public Infrastructure Applications

Development of DPI applications at population scale is proposed to boost productivity, business opportunities, and innovation in areas such as credit, e-commerce, education, health, law and justice, logistics, MSME, services delivery, and urban governance.

Integrated Technology Platform for IBC Ecosystem

An Integrated Technology Platform will be set up to improve outcomes under the Insolvency and Bankruptcy Code (IBC) for consistency, transparency, timely processing, and better oversight.

Voluntary Closure of LLPs

The Centre for Processing Accelerated Corporate Exit (C-PACE) services will be extended to facilitate the voluntary closure of LLPs, reducing closure time.

Cities as Growth Hubs

The government aims to develop cities as dynamic growth hubs through comprehensive economic and transit planning, alongside orderly peri-urban expansion using effective town planning schemes.

Creative Redevelopment of Cities

A transformative approach for brownfield redevelopment will be introduced. This includes creating frameworks for policy, market mechanisms, and regulations to revitalize existing urban areas.

Transit-Oriented Development

Plans for transit-oriented development will be drafted for 14 major cities with populations exceeding 3 million. These plans will include detailed implementation and financing strategies.

Urban Housing

The PM Awas Yojana Urban 2.0 will address the housing needs of 10 million urban poor and middle-class families with a ₹10 lakh crore investment, including ₹2.2 lakh crore in central assistance over five years.

Street Markets

Building on the success of the PM SVANidhi Scheme, a new initiative will support the development of 100 weekly street markets, or ‘haats’, in selected cities annually over the next five years.

Stamp Duty Reforms

The government encourages states to reduce high stamp duties and considers further reductions for properties purchased by women. This reform is integral to broader urban development efforts.

Holistic Energy Strategy

The interim budget emphasized a comprehensive energy strategy balancing high economic growth with sustainability. A policy document will outline pathways that integrate employment, growth, and environmental goals.

PM Surya Ghar Muft Bijli Yojana

This initiative aims to install rooftop solar systems for 1 crore households, providing up to 300 units of free electricity monthly. The scheme has seen over 1.28 crore registrations.

Pumped Storage Policy

A new policy will support pumped storage projects, enhancing electricity storage and integrating renewable energy sources more effectively, addressing their variable and intermittent nature.

Advancing Nuclear Energy

The government plans significant investment in nuclear energy, including collaborations for Bharat Small Reactors and research into Small Modular Reactors, backed by announced R&D funding.

Development of AUSC Technology

The completion of Advanced Ultra Super Critical (AUSC) thermal power plant technology will lead to an 800 MW commercial plant by NTPC and BHEL, supported by fiscal incentives.

Indigenous Technology Enhancement

The AUSC project will foster the development of high-grade steel and advanced metallurgy materials, creating substantial economic benefits and supporting the growth of indigenous manufacturing.

Renewable Integration

The pumped storage policy aims to address the challenges posed by renewable energy's variable nature, ensuring smooth integration and enhancing the overall energy mix's reliability.

Expanding Solar Energy Access

The PM Surya Ghar Muft Bijli Yojana reflects a commitment to expanding solar energy access, promoting sustainability, and reducing energy costs for a significant portion of the population.

Public-Private Collaboration

Investment in small modular reactors and nuclear technology involves public-private partnerships, leveraging both sectors' strengths to advance energy security and technological innovation.

Environmental and Economic Balance

The budget's energy initiatives strive to achieve a balance between environmental sustainability and economic growth, ensuring energy security while promoting advanced and clean energy technologies.

Central Government Investment

The Central Government will continue robust investment in infrastructure, with a capital expenditure of ₹11,11,111 crore, amounting to 3.4% of GDP, to boost economic growth.

State Governments' Role

States are encouraged to match the Central Government’s investment with their own contributions. A provision of ₹1.5 lakh crore for long-term, interest-free loans supports their infrastructure development.

Private Sector Engagement

Private sector investment in infrastructure will be enhanced through viability gap funding and supportive policies. A market-based financing framework will be introduced to facilitate this.

Pradhan Mantri Gram Sadak Yojana (PMGSY)

Phase IV PMGSY Phase IV aims to provide all-weather connectivity to 25,000 rural habitations, responding to increased population demands in these areas.

Irrigation and Flood Mitigation in Bihar

The government will invest ₹11,500 crore in flood control and irrigation projects, including the Kosi-Mechi intra-state link and other critical schemes to mitigate flood impacts.

Assistance for Assam Flood Management

Assam will receive support for flood management and related projects to address annual flooding issues caused by the Brahmaputra River and its tributaries.

Reconstruction Aid for Himachal Pradesh

Himachal Pradesh will get financial assistance for reconstruction and rehabilitation following extensive flood damage, supported through multilateral development aid.

Support for Uttarakhand and Sikkim

Uttarakhand and Sikkim will both receive aid for recovery and rebuilding efforts following cloud bursts, landslides, and flash floods that recently devastated these states.

Tourism Development Initiatives

The government aims to enhance India’s global tourist appeal, creating jobs and investment opportunities, by supporting the development of significant pilgrimage and tourist sites.

Special Projects for Key

Destinations Comprehensive development of the Vishnupad Temple Corridor, Mahabodhi Temple Corridor, Rajgir, Nalanda, and Odisha’s tourism attractions will be undertaken to promote these areas as major destinations.

Operationalizing the Anusandhan National Research Fund

The government plans to launch the Anusandhan National Research Fund to support basic research and prototype development, fostering scientific advancement.

Boosting Private Sector Research

A mechanism will be created to encourage private sector-driven research and innovation on a commercial scale, with a financing pool of ₹1 lakh crore.

Expanding the Space Economy

Aiming to quintuple the space economy in the next decade, a venture capital fund of ₹1,000 crore will be established to support this sector.

Philosophy Behind the Proposals

These initiatives are designed to enhance India's global competitiveness in research, innovation, and space exploration, ensuring sustainable economic growth through technological advancements.

Encouraging Innovation

The government's focus on innovation underscores its commitment to creating a conducive environment for new ideas and technologies, crucial for long-term development.

Promoting Research Collaboration

The proposals highlight the importance of collaboration between the public and private sectors in driving research and innovation at a commercial scale.

Leveraging Private Sector Expertise

By involving the private sector, the government aims to leverage their expertise and resources, fostering a more dynamic and innovative economy.

Long-term Vision for Space Economy

The venture capital fund for the space economy reflects a long-term vision to make India a leading player in the global space industry.

Strengthening Economic Foundations

These measures are part of a broader strategy to strengthen the economic foundations of the country, ensuring robust and sustainable growth.

Ensuring Global Competitiveness

Through these initiatives, India aims to enhance its global competitiveness in key areas of research, innovation, and space technology, securing a prominent position in the international arena.

Economic Policy Framework

The government aims to establish a comprehensive Economic Policy Framework to direct economic development and foster high growth by facilitating employment opportunities and implementing next-generation reforms.

Productivity and Market Efficiency

To improve productivity and market efficiency, the government will introduce reforms targeting all factors of production—land, labor, capital, and entrepreneurship—with technology as a key enabler.

Collaborative Implementation

Effective reform implementation requires collaboration between the Centre and states, emphasizing competitive federalism and incentivizing states through significant fiscal support for swift reforms.

Land Reforms

Land reforms will focus on better administration, planning, and management in both rural and urban areas, supported by fiscal incentives for timely completion.

Rural Land Actions

Actions include assigning Unique Land Parcel Identification Numbers (ULPIN), digitizing cadastral maps, surveying land ownership, establishing land registries, and linking them to farmers' registries.

Urban Land Actions

In urban areas, land records will be digitized using GIS mapping, and IT-based systems will be established for property record administration, updating, and tax management.

Labour Reforms

The government will integrate the e-shram portal with other portals to provide a one-stop solution for employment, skilling, and connecting job aspirants with potential employers and skill providers.

Financial Sector Vision

A financial sector vision document will outline strategies for meeting the economy's financing needs, setting the agenda for the next five years, and guiding the work of various financial entities.

Climate Finance Taxonomy

A taxonomy for climate finance will be developed to increase capital availability for climate adaptation and mitigation, supporting the country's climate commitments and green transition.

Ease of Doing Business

The government is working on the Jan Vishwas Bill 2.0 and incentivizing states to implement Business Reforms Action Plans and digitalization to enhance ease of doing business.

Data and Statistics

Efforts will be made to improve data governance, collection, processing, and management, utilizing various sectoral databases established under the Digital India mission with advanced technology tools.

Fiscal Responsibility

For 2024-25, total receipts are estimated at ₹32.07 lakh crore, with total expenditure at ₹48.21 lakh crore. The fiscal deficit is estimated at 4.9% of GDP, aiming for further reduction below 4.5% by next year.