Union Finance Minister Nirmala Sitharaman on Tuesday presented the Union Budget 2024, outlining nine key priorities to drive growth and opportunities across India, encompassing agriculture, employment, education, social justice, manufacturing, services, urban development, energy security, infrastructure, and innovation.
The government has declared a historic capital investment allocation of Rs 11.11 lakh crore or 3.4 per cent of India's gross domestic product (GDP), for the infra sector’s development, and a projected fiscal deficit of 4.9 per cent of GDP. This ambitious budget intends to stimulate both urban and rural development through numerous major projects.
During the Union Budget speech, she stated, “Under PM Awas Yojana (Urban) housing needs of 1 crore urban poor, middle-class families will be addressed with an investment of Rs 10 lakh crore.”
The Pradhan Mantri Awas Yojana (Urban) 2.0, worth Rs 10 lakh crore, aims to expand affordable homes for 1 crore urban poor and middle-class families. This plan will receive federal funding of Rs 2.2 lakh crore over the next five years. The Pradhan Mantri Awas Yojana (PMAY) would be expanded to encompass an additional 3 crore units, demonstrating a strong commitment to affordable housing and urban development.
An amount of Rs 2.66 lakh crore is set aside for rural development, with an emphasis on key infrastructure projects. Notable road links include Patna-Purnia, Buxar-Bhagalpur and Bodh Gaya-Darbhanga, which will get Rs 26,000 crore. These initiatives are anticipated to improve connections and increase economic activity in remote areas.
To stimulate industrial growth, the government intends to build investment-ready industrial parks and encourage creative brownfield restoration in cities, therefore promoting long-term urban expansion. To increase urban mobility and alleviate traffic congestion, transit-oriented development would be undertaken in 14 large cities with populations greater than 30 lakhs.
A new programme would allow MSMEs to obtain term loans to purchase machinery and equipment without the requirement for collateral or guarantees, with a guarantee fund of up to Rs 100 crore. Along with this, a Rs 1,000 crore Venture Capital fund would be established to promote the expanding space sector by encouraging innovation and technical improvement.
Andhra Pradesh would get targeted assistance to support industrial growth and vital infrastructure, such as water, power, trains and highways. This investment is intended to strengthen the state's industrial capabilities and promote economic development. The budget also provides a total exemption from import duties on 25 essential minerals, which is intended to boost the manufacturing sector, reduce reliance on imports and strengthen economic resilience.
