The main agenda of the budget are internship, employment and skilling schemes which could marginally rectify the issue of jobs for the largest youth population in the world.
The Finance Minister of India, Nirmala Sitharaman presented a new economic roadmap of Prime Minister Modi’s 3.0 in her record breaking seventh budget. While unveiling the Union Budget 2024 Sitharaman said that the Modi government will evidently focus on the middle class and youth of India.
They aim at diminishing angel tax in a massive boost for the startup ecosystem and revise the new tax regime structure. The first budget of ‘Modi 3.0’ is predicted to have a significant impact on India’s economic landscape including various sectors from infrastructure development to social programs.
The main agenda of the budget are internship, employment and skilling schemes which could marginally rectify the issue of jobs for the largest youth population in the world. Budget initiates to enhance credit delivery for medium and small businesses that take up the country’s half output. This may potentially boost job creation. Due to demonetization and the pandemic, the informal economy of the country has suffered multiple cuts.
The total outlay for this budget has not altered significantly from that of the interim budget. The funding has been directed towards agriculture and rural development, housing, and MSMEs, which are at the heart of the job creation goal.
There have been several impacts on the infrastructure development proposals for two regional parties Bihar and Andhra Pradesh that have supported the Prime Minister’s return to power. Sitharaman promised to finance these proposals through the budget, grants and loans from multilateral agencies.
The things that will get cheaper after the 2024 budget are mobile phones with a reduction of 15% custom duty. The Finance Minister Nirmala Sitharaman also announced that custom duties on mobile phones and three cancer treatment medicines are exempt from basic customs duty. Leading to lower the retail prices for any such items.
In addition to this the cost of seafood, leather goods, silver and gold is also expected to decrease. The custom duty on platinum is reduced to 6.5% while gold and silver is down by 6%. “To enhance domestic value addition in gold and precious metal jewellry, I propose to reduce customs duties of gold and silver to 6%,” said Finance Minister Nirmala Sitharaman.
The government has decided to exempt custom duty on 25 critical minerals, said the Finance Minister Nirmala Sitharaman. The custom duties on ferro nickel and blister copper have been abolished by the government. The Finance Minister has also proposed expansion of a number of capital goods for solar panel manufacturing that are exempted. The duties on shrimp and fish feed has also come down to 5%.
In effect, the finance minister has announced that there will be a gain of Rs.25,000 as a normal deduction and Rs.17,500 per year in tax savings. This is beneficial since it increases revenue and gives people the option of spending or saving the money.
Individuals in the 5% tax bracket now have a revised income range of seven lakh, up from six lakh. The scale for 10% income taxpayers has been raised from nine lakh to ten lakh, while the remaining 15%, 20%, and 30% tax slabs remain intact.
Following the 2024 budget many items are said to have become more affordable for the middle class families and businesses.
On the other hand, the government of India aims at increasing custom duties which in turn will affect the rate of ammonium nitrate and non-biodegradable plastics by 10% and 25% respectively. The price of plastic products will also increase due to the hike in custom duties. In addition to this the telecom products will see a rise in basic custom duty from 10% to 15% on certain telecom equipment making them more expensive.
In the previous budget, the Finance Minister had reduced tax on imports of several components like camera lenses in order to promote manufacturing of these The main agenda of the budget are internship, employment and skilling schemes which could marginally rectify the issue of jobs for the largest youth population in the world. products in India. The tax rate on lithium-ion batteries that are crucial for phones and electric vehicles were also cut down to reduce production costs.
India’s GDP is expected to grow from 6.55 to 7% this year as per the Economic survey 2024. Retail inflation is down to 5.45 in the previous year 2023-24 from 6.7% from the year before that. The budget presented by the Finance Minister Nirmala Sitharaman highlighted the importance of service and growth for the economy of India.