Consolidating Finance Budget: India’s Path Ahead

Navigating fiscal realms, India's budget unfolds a transformative saga. From agri-tech strides to green energy leaps, witness a blueprint shaping self-reliance, prosperity, and sustainability, painting India's holistic tomorrow.

Finance Budget envisages strengthening the agricultural sector, enhancing value addition, and boosting farmer incomes. Initiatives such as Nano DAP, Atmanirbhar Oil Seeds Abhiyan, and comprehensive dairy and fisheries programs are central to uplifting rural economies. The commitment to transformative growth is reinforced by recognizing and expanding successful self-help groups, embracing technological advancements, and fostering research and innovation.

Before delving into the financial budget of 2024-25, let’s further discuss…

Agriculture and food processing

  1. The government will take steps to boost value addition in the agricultural sector and increase farmer incomes. The Pradhan Mantri Kisan Sampada Yojana scheme has benefited 38 lakh farmers and generated 10 lakh jobs so far. The Pradhan Mantri Formalisation of Micro Food Processing Enterprises scheme has provided credit linkages to 2.4 lakh self-help groups and 60,000 individuals. Other initiatives are also helping reduce post-harvest losses and improve productivity and incomes.
  2. To ensure faster growth in the agriculture sector, the government will promote further public and private investment across the value chain – including aggregation, modern storage facilities, efficient supply chains, primary and secondary processing, marketing and branding.

Nano DAP

Following the successful rollout of Nano Urea, the government will expand the use of Nano DAP (diammonium phosphate) fertilizer across various crops in all agro-climatic zones of the country.

Atmanirbhar Oil Seeds Abhiyan

To achieve self-reliance in oilseeds like mustard, groundnut, sesame, soybean and sunflower, the government will formulate a comprehensive strategy covering aspects like research for high-yielding varieties, promotion of modern cultivation methods, market linkages, procurement, value addition and crop insurance. This will build on the initiative announced in 2022.

Dairy Development

A comprehensive program will be formulated to support dairy farmers in India. Efforts are already underway to control foot and mouth disease in livestock. Even though India is the world’s largest milk producer, the productivity of milch animals is low. The new program will build on the success of existing schemes like Rashtriya Gokul Mission, National Livestock Mission and infrastructure development funds for dairy processing and animal husbandry. It aims to increase productivity and support dairy farmers.

Matsya Sampada

Recognizing the importance of supporting fishermen, our government established a separate Department of Fisheries. This has led to doubling of both inland and aquaculture production since 2013-14. Seafood exports have also doubled during the same period. To further boost the fisheries sector, implementation of the Pradhan Mantri Matsya Sampada Yojana (PMMSY) will be accelerated to:

  1. Increase aquaculture productivity from 3 to 5 metric tons per hectare.
  2. Double seafood exports to Rs 1 lakh crore.
  3. Generate 55 lakh new employment opportunities in the near future.

Additionally, five integrated aqua parks will be set up under the scheme.

Lakhpati Didi

The Finance Budget acknowledges the transformative impact of the 83 lakh self-help groups, empowering 9 crore women and creating ‘Lakhpati Didis’. Recognizing their success, the budget increases the target from 2 crores to 3 crores, highlighting the role of economic empowerment in uplifting entire communities.

Technological Changes

New age technologies and data are transforming lives and businesses, creating economic opportunities and enabling provision of high-quality yet affordable services for all sections of society. As India demonstrates innovative solutions through the entrepreneurial spirit of its people, opportunities for the country are expanding globally. Data and technology are empowering citizens, revitalizing industries and boosting growth.

Research and Innovation for catalyzing growth, employment and development

  • Prime Minister Shastri introduced the motto “Jai Jawan Jai Kisan” to honor the soldier and farmer. Prime Minister Vajpayee later expanded it to “Jai Jawan Jai Kisan Jai Vigyan” to also recognize science and technology. Prime Minister Modi has furthered it to “Jai Jawan Jai Kisan Jai Vigyan aur Jai Anusandhan”, recognizing that innovation is the foundation of development.
  • Our technology-oriented youth will have tremendous opportunities and prospects in this upcoming golden period. A corpus of Rs 1 lakh crore will be established to provide long-term financing or refinancing at low or nil interest rates for 50 years. This will incentivize the private sector to substantially expand research and innovation in emerging technology areas. We need programs that combine the talents of our youth and technology.
  • A new initiative will be introduced to enhance deep-tech technologies for defense purposes and accelerate ‘atmanirbharta’ (self-reliance).

We will also launch a new scheme to strengthen deep-tech for defence purposes and accelerate self-reliance.

Infrastructure Development

Over the past 4 years, capital expenditure has tripled, fostering economic growth. In the upcoming Finance Budget, we aim to boost it by 11.1% to Rs 11,11,111 crore, constituting 3.4% of GDP. This substantial increase in investment will continue to strategically align with the finance budget, driving growth and generating employment.

Railways

  1. Under the PM Gati Shakti initiative, we will implement three major economic railway corridor programs to enable multi-modal connectivity. These are – energy, mineral and cement corridors; port connectivity corridors; and high traffic density corridors. Identifying these corridors will improve logistics efficiency and reduce costs.
  2. Decongesting the high-traffic corridors through these programs will also enhance passenger train operations, improving safety and increasing travel speeds. Along with the dedicated freight corridors, these three economic corridor projects will boost GDP growth and lower logistics expenses.
  3. To enhance passenger safety, convenience, and comfort, we will upgrade 40,000 regular rail coaches to the Vande Bharat standards.

Aviation Sector

The aviation sector witnessed remarkable growth in the last decade, doubling the country’s airport count to 149. UDAN played a pivotal role in expanding air connectivity to tier-2 and tier-3 cities, introducing 517 new routes, and serving 1.3 crore passengers. In response to this growth, Indian airlines have proactively ordered over 1000 new aircraft to enhance their fleets and operations. The ongoing commitment to expedite the expansion of existing airports and the development of new ones underscores the sector’s dynamic evolution, aligning with strategic financial allocations in the upcoming finance budget.

Metro and NaMo Bharat

India’s burgeoning middle class and rapid urbanization underscore the need for transformative solutions. The synergy between Metro rail, NaMo Bharat, and strategic financial allocations in the upcoming finance budget holds the key to revolutionizing urban landscapes and fostering sustainable growth.

Green Energy

To meet our commitment towards net-zero by 2070, the following measures will be undertaken:

  1. Viability gap funding will be provided to harness 1 gigawatt of offshore wind energy potential initially.
  2. We will set up coal gasification and liquefaction capacity of 100 million tonnes by 2030.This will reduce imports of natural gas, methanol and ammonia.
  3. Mandatory phased blending of compressed biogas (CBG) in compressed natural gas (CNG) for vehicles and piped natural gas (PNG) for domestic use.
  4. Mandatory phased blending of compressed biogas (CBG) in compressed natural gas (CNG) for vehicles and piped natural gas (PNG) for domestic use.

Electric Vehicle Ecosystem

The government will further expand and reinforce the electric vehicle ecosystem by promoting manufacturing and charging infrastructure. To accelerate the adoption of electric buses in public transportation systems, we will introduce a payment security mechanism. Initiatives like this will drive greater EV penetration and reduce fuel imports and emissions.

Bio-manufacturing and Bio-foundry

Launching a scheme for green growth, we’ll promote eco-friendly alternatives in bio-manufacturing and bio-foundries, including biodegradable polymers, bio-plastics, bio-pharmaceuticals, and bio-agri inputs. The scheme will also help transform the current consumptive manufacturing model to one based on regenerative principles. By supporting bio-based manufacturing, we can develop sustainable substitutes for materials and chemicals that are otherwise resource-intensive or polluting.

Blue Economy 2.0

Launching a scheme for Blue Economy 2.0, we’ll focus on restoration, adaptation, and coastal aquaculture, promoting sustainable marine development and livelihoods.

Conclusion:

The government’s proposed measures span diverse sectors, encompassing agriculture, technology, infrastructure, and green energy.With a strong emphasis on innovation, sustainability, and infrastructure, the goal is to drive India toward self-reliance, economic prosperity, and a greener future. These initiatives reflect a comprehensive vision for holistic development, leveraging technology and sustainability for a brighter tomorrow.

Stay on this page, and we will discuss more details of the FY 2024-2025 budget later.

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