The Union Budget must address infrastructure growth, job creation and clean energy initiatives

The 2024 Union Budget will be presented in the Lok Sabha on July 23rd. This will be the first budget by NDA-3, likely to continue its earlier policies. However, setbacks in the recent elections might lead to course corrections, and some populist measures may be included in the budget by Union Finance Minister Nirmala Sitharaman. As the Union Budget 2024-25 approaches, the Indian economy stands at a pivotal juncture, characterized by robust growth prospects and lingering challenges. The GDP growth forecast remains optimistic, buoyed by a strong recovery in various sectors, particularly manufacturing, services, and technology. However, inflationary pressures, high fiscal deficits, and global economic uncertainties pose significant challenges. The government has made concerted efforts in the past to enhance infrastructure, digitalisation, and clean energy initiatives, reflecting its commitment to sustainable development. Despite these strides, issues like unemployment, income inequality, and rural distress persist, necessitating targeted fiscal measures. The forthcoming budget is expected to address these concerns, aiming to foster economic resilience, stimulate investment, and ensure inclusive growth for the nation. It is an opportunity to streamline the economy and heal ailing sectors. People’s prime concerns remain inflation, which can be dexterously handled with tight fiscal planning. The Union Budget under NDA 3.0 must prioritise infrastructure growth and job creation, aiming to boost manufacturing through public-private partnerships. Changes in personal taxation and pension schemes are also expected, focusing on long-term fiscal sustainability and middle-class relief.

There is significant industry expectation for reforms and incentives to bring them back on track. The real estate sector, a major catalyst for economic growth and a vital provider of employment, urgently needs industry status to access lower-cost financing and tax benefits. High taxes on essential materials like cement and steel, particularly the 28% GST on cement must be addressed to sustain growth. India's electric vehicle (EV) sector stands at a crucial juncture, with high expectations for the upcoming budget. The government should prioritise incentivising firms to use EVs for last-mile delivery operations. Reducing GST rates for renewable energy components from the current 18% to 5% could lower the cost structure for green energy projects, promoting faster adoption across the country. The upcoming budget is expected to focus on employee welfare, formal job creation, reducing compliance complexity, and addressing the skill gap. Job creation and equipping people with desired skills, especially in technology, must be focal points. The budget should allocate more funds to tech infrastructure and resources, preparing students for a tech-driven job market and supporting entrepreneurial growth. Overall, the Budget  must provide a definitive direction for India's economic agenda, with a strong emphasis on infrastructure, job creation, clean energy, and comprehensive sectoral reforms.