Union Budget 2024-25: A progressive, futuristic and inclusive plan

It is particularly noteworthy that the Budget has prioritised employment generation—including the doubling of the 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 policymaking and judicious use of resources.

Tax concessions, especially for the middle class, and incentives for job creation are salutary steps. 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.

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. They are: productivity and resilience in agriculture; employment & skilling; inclusive human resource development and social justice; manufacturing & services; urban development; energy security; infrastructure; innovation, research & development; and next-generation reforms. These are a judicious mix of steps needed to ensure that our human resources are utilised to the fullest even as we continue to build what is needed to become a fast-growing economy.

The government has also promised to bring out an Economic Policy Framework that will outline its approach to economic development and also usher in 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 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 plan for 14 large cities with populations above 3 million looks to enhance the ease of living in urban areas. The plan to remake 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.

Overall, the Budget is a reassuring and imaginative plan that sets the stage for India’s exponential development. It sets the key pillars for India to become a Viksit Bharat, addressing every aspect of the economy, employment, and growth. This detailed and forward-looking Budget blends policymaking with judicious resource allocation, ensuring a balanced and inclusive approach to India’s transformation. By building on the last 10 years and shifting growth from investment-led to consumption-led, this Budget truly represents a progressive step towards a visionary and growth-oriented future for India.The writer is Vice Chairman, RPSG Group. Views are personal