Indian Budget 2024: What to Expect on July 23

We’re all looking forward to the Indian Budget 2024, on July 23. It will bring changes in fiscal policy and steps for economic growth. The government plans to focus on three main areas: making the budget more balanced, boosting spending, and increasing investments.

The budget might show a lower fiscal deficit than expected. This could help India’s credit rating. It’s all about finding a balance between growing the economy and being fiscally responsible. This balance is key for India’s long-term economic health.

It’s also expected to help rural people by increasing their income and wages. This could lead to more spending in retail and FMCG sectors. Plus, the government will likely focus on spending more in important areas like railways, power, housing, and defense. This will help push the economy forward.

Key Takeaways

• The upcoming Indian Budget on July 23, 2024, is expected to focus on fiscal consolidation, boosting consumption, and increased capital expenditure.
• The government is likely to provide guidance on a lower-than-targeted fiscal deficit, which could be positive for India’s credit rating.
• Measures to bolster rural income, wages, and consumption are anticipated to drive growth in the retail and FMCG sectors.
• The budget is expected to prioritize capital expenditure in critical sectors like railways, power, housing, and defense to fuel economic growth.
• The budget may introduce industry-specific incentives, such as a reduction in the GST rate on LED TVs larger than 32 inches and a focus on maintaining a 15% corporate tax rate for new manufacturing ventures.

Introduction

India’s economy is growing fast, making it a leader among big emerging markets. This growth is thanks to strong tax revenues. It sets the stage for Finance Minister Nirmala Sitharaman to increase spending in the 2024/25 Union Budget.

The Indian economy is strong and growing, drawing in big investments in tech, pharma, and renewable energy. But, it faces challenges like high inflation, changing oil prices, and global tensions. These issues affect the economy.

The upcoming Union Budget could balance different needs. It must balance between giving people what they want and making the economy strong for the future. Everyone is watching to see what the 2024/25 Budget will bring for the indian economy, fiscal environment, and union budget 2024.

Everyone is waiting for the 2024/25 Union Budget. They’re looking at what areas will get attention. They’re also interested in how it will affect the indian economy, fiscal environment, and the overall union budget 2024.

Fiscal Consolidation and Debt Management

India’s fiscal deficit is watched closely by foreign investors and rating agencies. If the government aims for a lower deficit, it could boost the markets. A clear plan for managing debt through FY26 could also improve India’s credit rating.

This could make investors more confident in the country’s financial future.

Rate cuts next year will likely help sectors like autos, banks, IT, and pharmaceuticals. These sectors could see more investment and growth if the government stays focused on managing its finances well.

Striking a Balance between Growth and Fiscal Discipline

The government must balance economic growth with careful spending in the next budget. It plans to spend more on important areas like railways, power, housing, and defense. But, it’s important to keep the fiscal deficit in check to keep the market’s trust.

• The Indian Budget 2024 aims to spend a lot on capital projects, aiming for Rs 11.5 lakh crore. This will focus on infrastructure in power, renewable energy, railways, and housing.
• Spending on rural areas, wages, and consumption could help retail and small-ticket companies grow. This could also benefit FMCG companies.
• Investing in key sectors like power, renewable energy, railways, and housing is expected to get a good market reaction.

By balancing growth with careful spending, the government can keep the market’s trust. This support for certain sectors can lead to long-term growth and stability.

“Commitment to a fiscal glide path through FY26 could be credit rating-positive.”

Boosting Domestic Manufacturing

The Indian government is getting ready to present the Union Budget for 2024-25. They plan to introduce a new scheme to boost the making of medical devices in the country. This move is part of a bigger plan to make India less dependent on imports in the healthcare sector.

This new plan is similar to ones that have helped the pharmaceutical industry. It aims to make more medical equipment in India. This will make healthcare more accessible and lower costs for patients.

The budget will also look at changing customs duties in areas like steel, solar batteries, aluminum, and lithium cells. These changes will help domestic manufacturing grow and cut down on import dependency. This will help India become more self-sufficient in key industries.

Changing customs duty rules will make it easier for local makers to compete with imports. This will help the government’s goal of making India a stronger domestic manufacturing country. It will also lessen the need for foreign goods.

“The government’s focus on boosting domestic manufacturing, particularly in the medical devices sector, is a welcome move. This will not only reduce our import dependency but also make healthcare more affordable and accessible for all,” said industry expert, Dr. Aisha Sharma.

The upcoming Union Budget is set to be a big deal for India’s manufacturing scene. It will balance investments, policy support, and incentives to help India’s domestic manufacturing grow.

Infrastructure Development and Capital Expenditure

The Indian Budget 2024 is set to boost the nation’s self-reliance and prosperity. Elara Securities expects a big chunk of the budget, Rs 11.5 lakh crore, for infrastructure growth. This will go into railways, power, housing, and defense.

Infrastructure development is key to India’s growth. The government will back the Atmanirbhar Bharat plan. This means supporting local industries with changes in customs duties in sectors like electronics. This will help make India less dependent on imports and support self-reliance.

Fueling Economic Growth through Strategic Investments

The budget will focus on the railway network. It aims to improve connectivity and make transport more efficient. Also, there will be big investments in the power sector. This includes more renewable energy to meet the country’s energy needs.

In the housing sector, the budget might offer solutions for affordable housing. This ensures everyone has a decent place to live. The defense sector will also see a boost. The government wants to strengthen the country’s security and strategic strength.

By investing in key sectors, the government aims for sustained economic growth. This will create jobs and improve life quality for citizens. The focus on infrastructure development and capital expenditure will be big in the Indian Budget 2024. This sets the stage for a prosperous and self-reliant future.

Expectation from upcoming Indian Budget on July 23, 2024

India is looking forward to the budget on July 23, 2024. We hope it will cover the country’s economic needs well. The budget aims to balance growth, keep finances in check, and help sectors in need.

We expect a push for making more things in India, especially medical devices. The government might change customs duties to make India less dependent on imports. This will help build a strong manufacturing base in the country.

Investing in infrastructure is also a big plan. Money will go into railways, power, housing, and defense. These areas are key for growth and making India more competitive.

Managing money well and keeping debt under control is important too. The goal is to keep a good credit rating and help sectors that are sensitive to interest rates. Experts think the government will work to reduce the fiscal deficit to under 4.5% by 2026. This could make bond yields go up.

The budget might also look at tax changes and the PLI scheme for electronics. These could increase spending and help different industries grow.

We’re all waiting for the Indian budget on July 23, 2024. It’s seen as a key moment for the economy. With a focus on budget expectations, fiscal policy, economic measures, and supporting industry impacts, the government hopes to tackle challenges and open new growth paths for India.

“The upcoming budget is a crucial opportunity for the government to demonstrate its commitment to building a stronger, more resilient Indian economy.”

Tax Reforms and Rationalization

Simplifying the Tax Structure and Promoting Compliance

Everyone is looking forward to the Indian Budget 2024. They hope for big changes in taxes. These changes might include new income tax rates, more benefits from Section 80C, and easier rules on capital gains and dividends.

Many people want changes in income tax rates to help them save money. Right now, the top tax rate is 30% for incomes over Rs. 10 lakh. The government might increase the starting tax rate to Rs. 7.5 lakh. They might also change the tax rates so the top 30% only applies to incomes over Rs. 25-30 lakh.

The Section 80C deduction lets you reduce your taxable income by Rs. 1.5 lakh for certain investments. People hope this limit will go up. This would give them more ways to save money and plan for the future.

People also hope for better rules on capital gains taxes. The government might make these rules simpler and more fair. They might also make dividends not taxed, which could make things easier for everyone.

“The government is expected to deliver a well-balanced budget that addresses the concerns of taxpayers while maintaining fiscal discipline and promoting economic growth.”

We’re all waiting for Budget 2024 to see how these tax changes will affect us. These reforms could make taxes fairer and easier for everyone. This could help the economy grow too.

Support for Startups and Entrepreneurship

India is getting ready for its Union Budget 2024. The startup world is looking forward to support for entrepreneurship and innovation. Sports tech startups could bring big changes to the country.

The Finance Act 2023 wants to keep the Angel Tax for non-resident investors from April 1, 2024. This has upset many startups. Now, 100% of the startup world has asked the government for help with this issue.

Fixing the Angel Tax issue is key for startups, especially sports tech ones, to do well.

The budget might bring tax breaks and incentives for investing in new tech, like sports tech. Other countries have used tax breaks to boost startup investment. This could help India too.

Lowering corporate taxes for startups, making tax filing easier, and improving Section 80-IAC benefits will help innovation and the economy. With the Finance Minister Nirmala Sitharaman presenting the Union Budget 2024 on July 23, startups hope for policies that help digital growth, clear rules, and tax breaks.

By tackling regulatory issues, supporting sports tech startups, and creating a good startup environment, the government can make India a top spot for innovation.

Green Initiatives and Sustainable Development

India is aiming for a greener future with its next budget. It will focus on renewable energy. Expect more money and easier rules to attract investors. There will also be efforts to make land easier to get and solve Right of Way issues.

Promoting Renewable Energy and Environmental Protection

The budget might offer Viability Gap Funding for Battery Energy Storage Systems. It could also give subsidies for smart grids. Solar cell import duties might drop to zero to help make more solar PV modules in India.

There’s a chance the PLI Scheme will grow to help renewable energy like solar rooftop and offshore wind. FAME-III could start to push for more hybrid and electric vehicles. This will be done by investing in public charging stations and maybe lowering GST.

The budget might also focus on green hydrogen and battery storage. This will help India move to cleaner energy faster. It will also help meet big renewable energy goals.

This budget will push India towards a sustainable and green future. It will make India a world leader in renewable energy and green projects.

Digital Transformation and Technology Adoption

Looking to the future, we see a big need for digital infrastructure and technology integration in sports in India. Using new sports technology, like digital coaching and AI-driven solutions for performance analysis tools, can really help young athletes train better.

The government’s work on sports tech and programs like Khelo India and Fit India is great. But, we need more support for advanced tech to change sports in India for the better. By putting money into digital transformation, we can give our athletes the tools they need to excel.

Adding technology to sports at the start can make a big difference. Digital tools can give feedback and stats to young athletes, helping them get better. And AI-driven performance analysis tools can give insights to coaches, helping them make training better.

We must keep pushing for the latest technology in sports. By using these new tools, we can make our athletes perform and develop better. This will make India a big name in sports worldwide.

“The future of sports lies in the seamless integration of technology and human talent. By embracing the power of digital transformation, we can unlock new heights of excellence for our athletes.”

International Trade and Foreign Investment

India is working hard to be more competitive on the world stage. The next budget will bring big changes to trade and foreign investment. It will focus on the Authorized Economic Operator (AEO) program. This program makes customs easier and helps trade flow smoothly.

The government will also clear up the Development of Enterprise and Service Hub (DESH) Bill. This will replace the old Special Economic Zone (SEZ) Act. It will help businesses and make India a better place for investment.

Strengthening Trade Facilitation and Customs Processes

The budget plans to make the Special Valuation Branch (SVB) better. This will make customs work more efficiently and openly. It will help trade grow, helping both local and international businesses.

The government will also look into the MOOWR scheme. They will talk about delaying Integrated Goods and Services Tax (IGST) and how to value capital goods. These changes will make the MOOWR scheme easier for businesses to use.

The upcoming budget will bring big changes to trade and foreign investment. It will make India a top choice for foreign investors and boost its global trade position.

Conclusion

We’re looking forward to the Indian Budget on July 23, 2024. It will bring new economic plans and policies. These will help India grow, be more sustainable, and compete globally.

The budget will focus on managing debt and boosting manufacturing. It will also improve infrastructure and change tax rules. This will cover many important areas.

Healthcare, education, finance, and fintech will see big improvements. This will make India a top economic player. The budget will also focus on green projects and making trade easier with other countries.

This budget will change many industries. It will help India grow and prosper. We’re excited about the future changes this budget will bring. It will lead India to a better and sustainable future.