Interim Budget 2024-25: Strong foundation towards 'Viksit Bharat'

India stands at the cusp of a transformative journey as Finance Minister Nirmala Sitharaman presented an Interim Budget that maps an ambitious trajectory for the nation's growth, underpinned by a keen focus on social development. This fiscal roadmap, revealed against the backdrop of the Atmanirbhar Bharat initiative, unfolds a comprehensive strategy for inclusive growth, sustainable development, and harnessing the potential of disruptive technologies.

The cornerstone of this Budget is a commitment to foster global competitiveness among Indian enterprises, attract foreign investments, and bolster startups and innovation-driven ecosystems. With a vision aligned with Atmanirbhar Bharat, the government aims to propel the Indian economy to a growth rate exceeding 7 per cent in the coming years, positioning it as the world's third-largest economy within the next three years, armed with a robust GDP of $5 trillion.

The Budget strategically allocates resources to key sectors such as tourism, agri-based industries, infrastructure, research and innovation, and skill development. PM Gati Shakti, a flagship initiative, identifies three major economic railway corridors to enhance logistics efficiency and support the 'Make in India' campaign. These corridors are poised to invigorate economic growth and streamline transportation networks. This will connect India to international markets seamlessly with multi-modal transport system and make Indian companies globally competitive.

A notable announcement is the establishment of a Rs 1 trillion corpus, complemented by 50-year interest-free loans for research and innovation in sunrise domains. This move aims to expedite India's digitalisation journey, positioning it as a frontrunner among global digital economies and offering a fertile ground for emerging entrepreneurs. The Budget's Rs 11.1 trillion capex target for FY25, representing an 11.1 per cent increase, underscores the government's unwavering commitment to modern infrastructure.

The focus on the electric vehicle ecosystem, encompassing support for manufacturing and charging infrastructure, is poised to catalyse business opportunities and significantly contribute to employment generation. Similarly, the announcement on 10 million rooftop solar installations for free power will revolutionise power generation and distribution. 

Recognising the pivotal role of micro, small, and medium enterprises in the country's GDP, the budget emphasises training for MSMEs to enhance global competitiveness. The increase in the presumptive taxation threshold from Rs 2 crore to Rs 3 crore is a welcome move for small retail firms, enabling them to concentrate on growth and expansion.

In the banking sector, the Budget introduces a noteworthy improvement by streamlining the KYC process through a 'risk-based' approach, tailored to the requirements of a digital India. This shift signifies a progressive leap in financial sector regulations.

Housing also takes centre stage, with the government launching schemes for the middleclass, slum dwellers, and renters, aiming to provide 20 million more houses under the Pradhan Mantri Awas Yojana. This initiative is poised to stimulate residential development, particularly benefiting first-time homebuyers and fostering market growth. This also indicates long-term demand for cement, steel and employment for semi-skilled and unskilled labourers.

The government's commitment extends beyond economic realms, aspiring for comprehensive, inclusive, and pervasive development that transcends caste and individuals at every level. The vision of 'Viksit Bharat' (Developed Country) by 2047, with the mantra of 'Sabka Sath, Sabka Vikas,' underscores the government's dedication to sustainable and inclusive growth. As the full Budget in July promises a detailed roadmap for 'Viksit Bharat,' anticipation builds for a plan encompassing both social and geographical dimensions, propelling India towards a brighter future.

The author is the executive vice chairman of Shriram Finance Ltd