India’s Union Budget 2024-25, delivered by the Union Finance Minister, holds the potential to usher in a leading period of economic development in India. As the budget places emphasis on the development of next generation reforms and strategic policy measures, the emphasis is firmly placed on the development of innovation, inclusivity, and sustainability in the push for economic growth in India.
By focusing on the improvement of productivity, operational disruption, and the refinement of retail markets, the fiscal plan that has been put forward aims to position India as an economic leader in the world and is designed for many domestic challenges. Let’s then have a look at the key pillars of the growth scheme and look into how the budget intends to rethink the growth trajectory of India.
Union Budget 2024-25: The Vision of Next-Generation Reforms
The term “next-generation reforms” plays a central role in India’s policy studies and reflects a shift in focus from traditional economic adjustments toward futuristic systemic reforms. Whilst traditional economic adjustments will alter very gradually a relatively inchoate economy whilst next generation reforms will target systemically the important bottlenecks by turning to technological innovations, governance modernization, and sectoral modernisation. This is an essential aspect of Union Budget 2024-25.
The Union Finance Minister stressed that a number of the reforms that will be implemented are designed to “future-proof” India’s economy in order that it will be more efficient and include markets in a more robust manner than at present. From digitization in agriculture to the restructuring of manufacturing, the government has chosen to implement top strategies that will enable various new opportunities to be found for economic development where equity will be maintained at a level that is acceptable to everyone. These reforms are thus designed in order to ensure not only that a growth story is pursued but that all members of the broader sector in the Hindu Kush Himalayas are able to see reflected changes. This will enable markets in the Hindu Kush Himalayan region to serve a greater number of consumers to achieve flourishing economies and the pricing of monetary assets will be more efficient than it currently stands in the region.
Digital Infrastructure: Building a Foundation for a New India
In recognition of the need for robust digital infrastructure to support the next generation of reforms, it is proposed that a total sum of ₹1.2 lakh crore $14.5 billion) be spent on expanding broadband connectivity and quantum computing initiatives. Some key points in Union Budget 2024-25 that will form part of the list include:
National AI Mission
A ₹10 000 crore $1. 2 billion initiative for building a fund to establish AI innovation hubs aimed at improving healthcare, agriculture, and governance.
Data Empowerment Imperative
Stripping down data governance policies with the hope of improving the performance and capability of markets and at the same time, securely sharing data across a range of sectors.
Digital Public Goods
Aadhaar, UPI, and Co-WIN platforms need to be scaled up so that they can deliver services to end-user citizens.
The Union Finance Minister made the comment, “Our digital leap will make opportunities available to communities both urban and rural in addition to bridging the urban-rural divide. this will allow productivity to be supported across the value chains”.
Manufacturing and Industry 4.0 – Union Budget 2024-25
The Make in India 2.0 should perhaps be referred to as the modern Make in India 2.0. To enhance India’s manufacturing, the budget introduces a number of strategic policies under the Make in India 2.0 initiative, which is in accordance with the multinational trends of the Industry 4. 0 utopia. Key policies that are planned include:
Expanded PLI Schemes
Adding semiconductors, drones, and renewable energy equipment to the Production Linked Incentives (PLI) scheme, the government aims to see an investment of ₹13 billion $1. 33 billion) in the coming year.
Ease of Doing Business 2.0
A single window clearance system for businesses and the simplification of foreign direct investment (FDI) labor codes.
Skill Development
Partnering with some of the world’s most notable global universities in order to establish Future Skills Academies that are focussed on robotics, the Internet of Things, and advanced manufacturing.
All these above-described reforms in the Union Budget 2024-25 are there to increase India’s global exports to around 5% by 2030. It will create more than 10 million jobs in the process.
Agricultural Modernization: From Farms to Markets
Agriculture, which employs 45% of India’s workforce, still remains at the forefront of next-generation reforms. The Union Budget 2024-25 introduces a four-pronged strategy detailing their pertaining roles.
Precision Farming
Funding of AI-driven tools and drone-enabled crop monitoring systems for the benefit of 50 million farmers.
FPO-led Growth
1,000 Farmer producer organizations or FPOs will be strengthened in an effort to reduce economies of scale and market access barriers.
Cold Chain Revolution
Investing ₹30,000 crore $3.6 billion) in integrated cold storage networks in order to reduce post-harvest crop losses.
Climate Resilience
Promotion of millet and Climate Resistant Crops as part of some scheme that guarantees farmers money for their purchases. By improving the efficiency of the currently existing markets and integrating farmers into a digital structure it is hoped that the farmers will see their incomes roughly doubled by 2027.
Green Energy and Sustainability – Union Budget 2024-25
Powering a Green Transition Powering a Green Transition is something that could be undertaken by any range of companies whether they had hydraulic power or not and all types of companies could then transition to cleaner in-house power engines. All kinds of potential players in the market could engage in powering a transition of sorts, which is clearly set out by the business of humans interested in the brighter future of the planet. In a couple of words, a green transition is something that could be attempted by anybody with the right creative and innovative mindsets together with other capabilities and unique goods and services. In line with India’s commitments regarding net-zero emissions, the budget has unveiled a Green Growth Initiative, which would cost ₹35000 crores $4. 2 billion).
National Green Hydrogen Mission
Promoting the faster production of electrolyzers and signing off on export partnerships.
Renewable Energy Expansion: An increase in new capacity of solar and wind build-out to reach a total of 350 GW is being considered by 2027.
EV Ecosystem
Incentives for manufacturing of batteries and charging infrastructure.
The Union Finance Minister stated that ‘Green Energy’ is not just an environmental imperative but an option to build productive manufacturing industries.
Healthcare and Education – Union Budget 2024-25
Investing in Human Capital. Keeping growth sustained is a key aspect of human capital development. The key to the strategic policies in the budget includes various human-related capital investments.
Ayushman Bharat 2.0
Expanding coverage to 100 million more families whilst integrating AI-based diagnostics.
National Digital Health Mission
Creating interoperable health records for 500 million citizens is a massive undertaking.
Education 5.0
Equipping curricula with AI, cybersecurity, and green technologies in line with the National Education Policy (NEP).
These measures aim to improve the ranking of India’s Human Development Index (HDI) as well as to create a future ready workforce for the future.
Financial Inclusion and Tax Reforms
Democratizing prosperity
In order to ensure that there is growth that is inclusive in nature, the budget will make a major effort to deepen financial access.
Digital Banking Expansion
Licensing in excess of 75 new digital banks amongst those rural areas within the concentration. This was an essential announcement in the Union Budget 2024-25.
Fintech Innovation Fund
A sum of ₹5 000 crore or ₹60 billion $600 million) which will go to support startups involved in blockchain and CBDCs.
Tax Rationalization
Simplification of GST slabs and tax relief for R&D activities.
Infrastructure Development
A bill of ₹10 lakh crore $120 billion) is being plowed into infrastructural development with projects including:
Gati Shakti 2.0
Integrating real-time data analytics with all the road, rail, and port projects that exist.
Urban Transformation
Constructing 50 smart cities that will be contained with well-integrated public transportation and waste management systems. As a push is to be made to reduce the cost of logistics by 14% to 8% of GDP, this will, in turn, improve the productivity of the economy and, in turn, have a positive impact on competitiveness.
Also Read : Decoding Income Tax Slabs in Union Budget 2025
Conclusion – Union Budget 2024-25
It should be able to further the scope of knowledge and open up new areas of research in order to deal with some of the problems that currently exist in the global economy. In order to achieve this, there has to be the establishment of key elements within a framework that is to be considered in the plan.
Although this will not be static in that action items must be defined within an itinerary, which will then lead to an assembly of the plan itself, this will work to plan testing parts of the framework in order to ensure that sufficient scrutiny has been performed. Union Budget 2024-25 will pave the way for it.
FAQs – Union Budget 2024-25
What are Next Generation Reforms?
Ans: In the Union Budget 2024-25, the next-generation reforms mean advanced policy changes targeted at promoting economic growth, sustainable development, and technological innovation.
Do Strategic Policies Impact Economic Growth?
Ans: Yes, strategic policies immensely impact the economic growth of a nation. It enhances market efficiency, boosts economic growth, and optimizes resource allocation.
Who Declares the Union Budget of India?
Ans: The Union Finance Minister of India declares the budget. Current Union Finance Minister Nirmala Sitharaman has declared the budget this year.
Does the efficiency of markets Impact Economic Stability?
Ans: Yes, it heavily impacts the economic stability.
What are Some Key Economic Reforms Introduced by the Government?
Ans: Attracting foreign investments and crafting proper policies to enhance innovation are some economic reforms.
