On Tuesday, Finance Minister Nirmala Sitharaman presented the Union Budget 2024-25 before the parliament, outlining the government’s financial policy for this fiscal year.
While the budget missed out on several anticipated demands and left many feeling disappointed and worried, it contained several announcements and potential silver linings aimed at strengthening the commerce and marketing world.
Here are some key highlights:
A boon for start-ups:
The government’s decision to abolish the Angel tax for investors was one of the few announcements viewed as a positive sign for the financial future. Many industry experts believe that it could lead to growth in the startup ecosystem, leading to more investors being willing to invest in innovative and upcoming ventures.
MSMSE’s to benefit:
In her speech, Nirmala Sitharaman placed particular emphasis on the growth and support of Micro, Small, and Medium Enterprises (MSMEs). She also announced several measures aimed at bolstering this vital sector of the economy, including a new credit guarantee scheme for MSMEs in the manufacturing sector. This scheme will enable term loans for the purchase of machinery and equipment. Thus, it eliminates the need for collateral or third-party guarantees.
E-commerce experiences relief:
E-commerce has also received significant relief, with TDS being reduced from 1% to 0.1%. This is expected to provide much-needed support to sellers on platforms like Flipkart, Amazon, Swiggy, and Zomato by improving their working capital requirements.
Boost for education, women, and job generation:
The new budget is big on employment and job generation as well as agriculture, with a specific focus on urban development. A total of INR 1.48 lakh crore was allocated for education, employment, and upskilling, along with the provision of loans up to INR 10 lakh for higher education.
The government has additionally introduced up to give schemes aimed at boosting employment, with a package worth INR 2 lakh crore that targets the employment and upskilling of over 4.1 crore youth in the next five years. Additionally, the Indian manufacturing sector received a boost through job creation incentives.
The budget also featured over INR 3 lakh crore being allocated for multiple schemes benefiting women.
Artificial intelligence: A Key Investment?
The Centre has allotted Rs 21,936.90 crore in its budget to the Ministry of Electronics and Information Technology (MeitY) for 2024-25. This reflects the increased revenue and capital expenditure required to boost digital transformation and strengthen the country’s digital infrastructure.
Notably, the government has budgeted Rs 551.75 crore specifically for the IndiaAI program to enhance the country’s artificial intelligence infrastructure. Thus, the mission seeks to position India as a leading AI research and deployment nation.
