Budget 2024: A Positive Step Forward to Sustainability and Innovation

The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, highlights the significant steps that India is ready to take in key sectors to support growth and innovation while keeping in mind the basic needs of the people. It is not just a fiscal plan but a bold blueprint for India’s future. The Budget is not just a comprehensive roadmap that dictates the country’s growth in the coming years but also acts as a beacon of hope for various sectors, from nuclear power to youth empowerment. Let’s take a look at the details.

To start with, a significant portion of the budget is earmarked for holistic national development, with a special focus on advancing nuclear power through public-private partnerships. This includes setting up Bharat Small Reactors and developing Bharat Small Modular Reactors. These technologies, with a capacity of 300 MW or less, offer competitive advantages by reducing construction time and increasing operational efficiency. This premise is based on a forward-looking framework where plants are not big but smart, fast and easy to operate, helping us power a greener future.

Moreover, it will allow the nation to adopt newer technologies while achieving the target of net zero emissions by 2070. Such strategic policy implications, coupled with other aspects of energy development such as the PM Surya Ghar Muft Bijli Yojana, which aims to provide 300 units of free electricity per month to one crore households through rooftop solar panels, will help promote renewable energy. This, in turn, will allow India to gain a tangible leadership position in the nuclear power landscape, supporting innovation and progress.

The Union Budget also prioritises supporting the SME sector, promoting startup culture and supporting youth development. To strengthen the supply chain of SMEs, the government has proposed a loan guarantee scheme that helps these small businesses access long-term capital for purchasing equipment. This will enable businesses to grow at an unprecedented pace with a faster loan approval process, further facilitating the entire sector. The introduction of a new credit assessment model for SMEs is a step towards improving credit eligibility beyond traditional asset criteria, demonstrating a more resilient and flexible credit system.

The abolition of the angel tax regime, as proposed by the government, is aimed at further strengthening the startup ecosystem and fostering innovation in the country. A new scheme will be introduced to guarantee Rs 100 crore for startups to support entrepreneurship and innovation. This guarantee of Rs 100 crore is not just a number; it is a promise to fuel the dreams of future innovators. The fund aims to reduce financial barriers and encourage the growth of new businesses, instill economic dynamism and create jobs.

In terms of manpower assistance and student empowerment, the government has laid a strong emphasis on youth employment. This includes creating opportunities for one crore youth to study in top 500 companies and providing them with a monthly allowance of Rs 5,000. This investment in the youth of the new nation is promising. Moreover, it will not only provide financial support to the youth but also provide valuable work experience, helping them bridge the employment-education gap, thereby preparing a more skilled and productive workforce.

Recognizing the role of the agriculture sector and its importance to the economy, the budget allocates Rs 1.52 lakh crore to support farmers with an aim to increase their productivity and efficiency. This will act as a catalyst to empower the farming community and provide better facilities to farmers, strengthening their livelihoods and contributing to national food security. The significant investment in agriculture is not just about numbers; it is a strategic move to increase productivity and food security.

Moreover, Atmanirbhar Oil Seeds Abhiyan has been launched to reduce the dependence on imports and increase domestic production. This initiative will bring independence in the sector through innovation. Providing indirect support in the development of rural infrastructure will improve the livelihood of the rural people through support schemes in the areas of irrigation and rural employment. Overall, the sector is poised to see better growth potential due to these benefits, thereby helping to achieve balance in the economic mechanisms.

One of the important aspects discussed in the budget is the modernisation of the defence sector. It is proposed to allocate Rs 4.78 lakh crore (approximately $64 billion) for defence expenditure on an interim basis, with a focus on modernisation of the armed forces, acquisition of advanced armaments and strengthening of border infrastructure. This will not only enhance national security but also provide an indirect boost to various related sectors like aerospace, electronics and heavy machinery. These investments are strategic in driving research in the country and generating employment, as well as improving remote areas through connectivity and infrastructure development.

Road construction and railway modernisation is not just about construction; it aims to create a futuristic, well-connected and prosperous India. The focus on infrastructure and connectivity is also evident in the allocation of Rs 1.18 lakh crore (around $16 billion) for road network development and Rs 1.10 lakh crore (around $15 billion) for railway modernisation. This shows an increased focus on development and connectivity in the budget, with a greater focus on smart cities, affordable housing and sanitation.

Last but not least, the pledged support for the health sector with an allocation of Rs 2.23 lakh crore (around $30 billion) for infrastructure, research and immunisation programmes indicates that the government is taking proactive steps to help lay a solid foundation for the next generation. These investments in cutting-edge technologies such as AI and biotechnology further reflect the culture of driving innovation and research in the country.

Overall, these steps are in line with the current ruling government’s vision of ‘Viksit Bharat 2047’, which aims to develop India in the diaspora of agriculture, employment, human resources, urban development and research. Viksit Bharat 2047 is not just a vision; it is a blueprint for a vibrant, inclusive and forward-thinking India. This long-term vision sets the stage for sustainable growth and prosperity, benefiting the entire country. Indeed, it represents the clear commitment of the current government to make the Indian economy more inclusive and accessible to all sections of society. With these bold investments and strategic initiatives, the Budget sets a positive trajectory for the future of the nation, paving the way for an advanced, sustainable economy.

Megha Jain is Assistant Professor, Shyam Lal College, University of Delhi/ Visiting Fellow, Pahle India Foundation; Naman Mishra is Postgraduate Researcher, FS University, Shikohabad, India. The views expressed in the above article are personal and solely those of the author. They do not necessarily reflect the views of News18.