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Below the Budget 2024 : Comprehensive Approach to Economic Development By Dr. Vikas V. Gupta, CEO & Chief Investment Strategist, OmniScience Capital

Finance Minister Nirmala Sitharaman's Budget speech presents a well-rounded strategy for economic development, with a strong emphasis on women, youth, and marginalized communities. The government's initiatives are designed to drive growth, create jobs, and build robust infrastructure, ensuring a brighter future for all Indians.

Fiscal Discipline and Economic Stability

A key highlight of the Budget is the stricter fiscal deficit target compared to the interim budget. This move underscores the government's commitment to fiscal responsibility, which is expected to enhance sovereign ratings and strengthen the currency in the long term.

Infrastructure Development

Infrastructure continues to be a primary focus, with significant allocations directed towards states like Andhra Pradesh and Bihar. The development plans include major road connectivity projects and an industrial node at Gaya on the Amritsar Kolkata Industrial Corridor. These projects are pivotal for regional growth and connectivity.

Affordable Housing

The Budget proposes a substantial initiative for affordable housing, targeting 30 million houses in urban and rural areas. This move aims to address the housing needs of a broad segment of the population, enhancing living standards and boosting the construction sector.

Rural Development

Rural development is another critical area, with initiatives like the Pradhan Mantri Janjatiya Unnat Gram Abhiyan aimed at achieving saturation coverage for tribal families. The focus on infrastructure development in rural areas signals the government's intent to bridge the urban-rural divide.

Manufacturing and MSME Support

The manufacturing sector receives a significant boost with enhanced support for MSMEs. Public sector banks are encouraged to lend to MSMEs, and the Small Industries Development Bank of India (SIDBI) is expanding its branches to better serve this sector. The MUDRA loan scheme further highlights the focus on empowering MSMEs.

Skilling and Employment

To support the manufacturing sector, the Budget includes several skilling and employment initiatives. These include internship schemes, wage support for freshers, and skill development programs. Such measures are designed to create a skilled workforce that meets the demands of the evolving manufacturing landscape.

Entrepreneurship and Startups

In a move to foster entrepreneurship and strengthen the startup ecosystem, the government has abolished the angel tax. This is expected to attract more investment into startups, providing a conducive environment for innovation and business growth.

Conclusion

Finance Minister Nirmala Sitharaman's Budget speech outlines a comprehensive plan for India's economic development. With a balanced focus on infrastructure, affordable housing, rural development, manufacturing, and skilling, the government aims to create a sustainable and inclusive growth trajectory. These initiatives promise to drive economic growth, generate employment, and build a strong foundation for India's future.

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