Economic Overview
- Despite global economic uncertainty, India's economy remains strong.
- Inflation remains low and stable.
- Continued focus on the poor, women, youth, and farmers.
New Schemes and Initiatives
- Allocation of Rs. 2 lakh crore for five new schemes focused on job creation and skilling 4.1 crore youth.
Budgetary Priorities
- Focus on productivity in the agriculture sector.
- Employment and skill development.
- Social justice and inclusive growth.
- Manufacturing and services.
- Urban development.
- Energy security.
- Infrastructure investment.
- Innovation and research.
- Next-generation reforms.
Agriculture and Allied Sectors
- Provision of Rs. 1.52 lakh crore for agriculture and allied sectors.
- Establishment of 10,000 bio-research centres.
- Initiatives for 1 crore farmers to adopt natural farming.
- Development of vegetable production and supply chain clusters near consumption centres.
- Financial support for shrimp breeding centres and export facilitation through NABARD.
- Launch of Kisan Credit Cards in five states.
- Release of 109 varieties of 32 crops.
- Natural farming verification and branding support.
- Expansion of farmer and land registry to include 6 crore farmers.
Employment Linked Incentive Schemes
- Three schemes based on EPFO enrolment:
- Scheme A: Direct benefit transfer of one month's salary, up to Rs. 15,000, for first-time employees.
- Scheme B: Incentives for job creation in the manufacturing sector.
- Scheme C: Reimbursement to employers for EPFO contributions for additional employees, benefiting 2.1 lakh youths.
Model Skill Loan Scheme
- Revision of the Model Skill Loan Scheme to aid 25,000 students annually.
- Establishment of working women's hostels and creches in collaboration with industry.
- E-vouchers for loans up to Rs. 10 lakh for higher education in domestic institutions, with a 3% annual interest subvention.
MSME Support
- New mechanism for facilitating continuation of bank credit during stress periods.
- Mudra loan limit increased from Rs. 10 lakh to Rs. 20 lakh.
- Turnover threshold for mandatory onboarding on TReDS platform reduced from Rs. 500 crore to Rs. 250 crore.
- Financial support for 50 multi-product food irradiation units in the MSME sector.
- E-commerce export hubs to be set up in PPP mode to enable MSMEs and artisans to sell internationally.
Capital Expenditure
- Capex for FY25 maintained at Rs. 11.11 lakh crore or 3.4% of GDP, same as in the Interim Budget.
Skilling and Employment
- Upgradation of 1,000 Industrial Training Institutes (ITIs) in five years.
- Collaboration with states and industry to focus on outcomes and quality.
- 1 crore youth to be skilled by top companies with a 12-month internship offering a monthly allowance of Rs. 5,000.
Industrial Development Initiatives
- Development of industrial parks in or near 100 cities.
- 12 industrial parks sanctioned under the National Industrial Corridor Development Programme.
- Critical Mineral Mission for domestic production, recycling, and overseas acquisition of critical mineral assets.
Fiscal Projections for FY25
- Fiscal deficit projected at 4.9% of GDP, down from 5.1%.
- Expenditure estimated at Rs. 48.21 lakh crore.
- Receipts projected at Rs. 32.07 lakh crore.
- Commitment to reduce fiscal deficit below 4.5% next year.
Customs Duties Adjustments
- Customs duties on gold and silver reduced to 6%, platinum to 6.4%.
- Lithium, copper, cobalt exempted from customs duty.
- Expanded list of exempted capital goods for solar cell and panel manufacturing.
- Reduced BCD on MDI for spandex yarn manufacturing from 7.5% to 5%.
- Customs duty exemptions on manufacturing connectors and oxygen-fused copper.
Capital Gains Tax Changes
- Short-term capital gain tax on certain financial assets revised to 20%.
- Long-term capital gain tax revised to 12.5%.
- TDS rate on e-commerce operators reduced to 0.1% from 1%.
Revised Tax Structure
- New income tax regime introduces a revised tax rate structure.
- Tax savings of Rs. 17,500 for taxpayers.
- Revised tax slabs:
- Rs. 0-3 lakh: Nil
- Rs. 3-7 lakh: 5%
- Rs. 7-10 lakh: 10%
- Rs. 10-12 lakh: 15%
- Rs. 15 lakh and above: 30%
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Disclaimer: We are not SEBI registered. All the views are personal and only for educational purposes. Do your due diligence before making any trading or investing decisions. The data provided in this blog post is for illustrative purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making investment decisions.
