India's Prime Minister, Narendra Modi, recently expressed his confidence in the country's potential to emerge as a global player in sunrise sectors.
This statement was made during his address at the inaugural session of the 'Journey Towards Viksit Bharat: A Post Union Budget 2024-25 Conference'. As India is on the path to becoming the third-largest economy, the Prime Minister emphasized the need for India Inc to capitalize on new opportunities in these sectors.
The Prime Minister's remarks come at a time when the world is looking at India as a basis for global progress. Despite global headwinds, India stands out as the only 'high growth, low inflation' country in the world, contrasting with the 'low growth, high inflation' scenario in other countries. India's fiscal prudence, according to PM, serves as a role model for the world.
The Prime Minister also highlighted the positive sentiment towards India among world leaders and investors. He urged Indian industry leaders not to miss this golden opportunity, stating, The world today wants to invest in India, and world leaders are positive about India. This is a golden chance for Indian industry and we must not lose this opportunity.
The Union Budget 2024-25, presented on July 24, 2024, reflects this optimism. The budget has significantly increased capital expenditure to Rs 11,11,111 crore, which is expected to have a multiplier effect on the economy. It includes the creation of plug-and-play industrial parks in 100 major cities to enhance investment readiness and boost manufacturing.
The budget also focuses on a green energy roadmap that encompasses green hydrogen projects, electric vehicles, and nuclear energy. The government's commitment to clean energy and energy security is evident through measures that support the transition to sustainable practices, including incentives for green initiatives and the development of critical minerals, essential for clean energy technologies.
The budget has positively impacted the MSME sector by increasing the limit for Mudra loans, reducing taxes for small units, and making it easier for them to get working capital and credit loans. The government has also introduced an internship scheme to boost employment and skill development for the youth, which indirectly benefits the MSME sector.
The budget proposal includes adjustments to personal income tax, such as increased standard deductions and relief for salaried employees and pensioners. These changes are designed to enhance disposable incomes. For the average taxpayer, this means more money in their hands after tax, which can potentially lead to increased personal spending and savings.
However, the budget has also raised concerns, particularly about the healthcare sector not receiving adequate attention and the potential impact of certain tax changes on the securities market. Some experts highlight the need for more comprehensive reforms in healthcare and education, and express disappointment over the lack of specific measures for these sectors.
The Union Budget 2024-25, while being a balanced effort to maintain fiscal prudence while pushing for growth, has room for more measures to support vulnerable sections and critical sectors. The budget is seen as a step towards making India a global player in sunrise sectors, but there is a call for more targeted measures to address the challenges faced by specific industries and to ensure inclusive growth.
The future of India's economy seems promising, with the potential to become a global player in the sunrise sectors. However, the success of these initiatives will depend on the effective implementation of the proposed measures and the ability to address the challenges that lie ahead.
