Key Highlights of India’s Interim Budget 2024

We bring you the key highlights of India’s Interim Budget 2024, presented by Hon’ble Finance Minister Smt. Nirmala Sitharaman. This budget outlines the government’s spending plans for the first half of the upcoming fiscal year, showcasing a range of initiatives across various sectors.

In the past decade, the government’s ‘Sabka Saath‘ initiative has successfully lifted 25 crore people out of multidimensional poverty. Notably, the ‘Direct Benefit Transfer’ of 34 lakh crore through PM-Jan Dhan accounts has saved the government 2.7 lakh crore. The PM-SVANidhi scheme supported 78 lakh street vendors, with 2.3 lakh receiving credit three times.

National Education Policy 2020 brings transformative reforms, with PM SHRI providing quality education. Skill India Mission trained 1.4 crore youth, and new institutions include 7 IITs, 16 IIITs, 7 IIMs, 15 AIIMS, and 390 universities. PM Mudra Yojana sanctioned 43 crore loans (22.5 lakh crore) for entrepreneurial ventures, supported by the Fund of Funds, Start-Up India, and Start-Up Credit Guarantee schemes for youth. Mudra Yojana has granted loans to 30 crore women entrepreneurs.

India-Middle East-Europe Economic Corridor is a strategic game changer. Economic policies in FY25 aim for sustained growth, inclusive development, and improved productivity. The fiscal deficit is projected at 5.1%, with tax benefits for startups extended. Nominal GDP growth is expected at 10.5%.

The government plans to provide free monthly electricity to one crore households through rooftop solarization, saving residents 15-18 thousand rupees annually. This initiative supports electric vehicle charging, fosters entrepreneurship in supply and installation, and generates employment for youth with technical skills. Union Minister R.K. Singh announced an increase in rooftop solar installation subsidy from 40% to 60% under the Pradhan Mantri Suryoday Yojana, aiming to ease the financial burden on citizens who face challenges in taking loans for such projects.

The government aims to establish additional medical colleges by utilizing existing hospital infrastructure, with a committee tasked to address related issues. Special emphasis will be placed on vaccinating girls aged 9-14 to prevent cervical cancer. Maternal and child care schemes will be consolidated for more efficient implementation. Efforts will be intensified to upgrade anganwadi centers, specifically focusing on Saksham Anganwadi and Poshan 2.0 for improved nutrition and early childhood development. The U-WIN serves as a comprehensive platform for India’s Universal Immunization Programme, facilitating registration, follow-ups, and vaccination certificates. Indradhanush will be expanded nationwide. Ayushman Bharat, a National Health Protection Scheme, aims to cover 10 crore poor families (around 50 crore beneficiaries) with up to 5 lakh rupees per family annually for secondary and tertiary care hospitalization. Its coverage will be extended to include ASHA workers, Anganwadi workers, and helpers.

Government intensifies agribusiness efforts, boosting farmer income through the PM Kisan Sampada Yojana for 38 lakh farmers and 10 lakh jobs. PM Formalisation of Micro Food Processing Enterprises Yojana aids 2.4L SHGs and 60K individuals, targeting post-harvest losses, productivity, and income. Emphasis on public-private investment in post-harvest and nano-DAP applications. 

‘Atmanirbharta’ strategy for oil seeds covers research, techniques, market linkages, value addition, and crop insurance. Comprehensive dairy support addresses foot and mouth disease, focusing on productivity and existing schemes. PM Matsya Sampada Yojana accelerates aquaculture, doubling exports, creating jobs, and establishing five aquaparks.

83 lakh SHGs, comprising 9 crore women, drive rural transformation. One crore women achieve ‘Lakhpati Didi’ status, with the target raised to 3 crore. A 1 lakh crore corpus, supported by a 50-year interest-free loan, aims to finance private sector research and innovation in sunrise domains. A scheme will also be introduced to enhance deep-tech defense technologies and expedite ‘Atma Nirbharta’.

The infrastructure outlay for the next year is being increased by 11.1% to eleven lakh, eleven thousand, one hundred and eleven crore rupees (INR 11,11,111 Cr). This would be 3.4% of the GDP. Railways focus on PM Gati Shakti for multi-modal connectivity. Aviation expands with 149 airports, with UDAN-19 connecting tier-two and tier-three cities via 517 new routes, serving 1.3 million passengers.

To achieve ‘net zero’ by 2070, initiatives include funding for one gigawatt of offshore wind energy, establishing 100 MT of coal gasification and liquefaction capacity by 2030, and mandating phased blending of compressed biogas in CNG and PNG. Financial aid for biomass machinery will support collection efforts, reducing reliance on natural gas imports.

2014–23 saw a $596 billion FDI inflow, doubling the 2005–14 figures, reflecting a golden era. To promote continuous foreign investment, bilateral investment treaties are being negotiated under the ‘First Develop India‘ approach. Blue Economy 2.0 emphasizes climate-resilient activities.

This comprehensive plan reflects a commitment to inclusive development, economic growth, and sustainability across various sectors in India. The detailed roadmap for the ‘Viksit Bharat’ vision is expected to be presented in the upcoming full budget in July.

Reference- investindia.gov.in|reuters.com|thehindubusinessline.com|livemint.com

Startup Funding Summary

U GRO Capital, Mumbai-based fintech platform, has raised $30 Mn in a funding from Asian Development Bank – Read More

BluSmart, Gurugram-based EV mobility startup, has raised $25 Mn in a funding from ResponsAbility – Read More

WIZ Freight, Chennai-based logistics platform, has raised $15 Mn in Series B funding from SBI Investment, Tiger Global Management, Nippon Express Holdings, Axilor Technologies Fund, Foundamental, Arali Investments, Unikon Shipping Ventures and other HNIs – Read More

MoveInSync, Bengaluru-based employee commute platform, has raised $15 Mn in Series C funding from Bessemer Venture Partners – Read More

Grow Indigo, Mumbai-based agritech startup, has raised $8 Mn in a funding from Indigo Ag, Mahyco and other HNIs – Read More

M&A Snippets

Bengaluru-based apparel exporter Gokaldas Exports will acquire Gurgaon-based apparel manufacturer Matrix clothing for $59 Mn – Read More

Pune-based heath-tech company Bajaj Finserv Health will acquire Bengaluru-based healthcare service provider Vidal Healthcare for $39 Mn – Read More