Business News: Union Budget 2024-25: Key Highlights and Economic Updates

The Union Budget, 2024-25, will be introduced in the Lok Sabha today. This will be Finance Minister Nirmala Sitharaman's seventh budget in a row. Sources told that the budget will be the first by Modi 3.0 Government and, therefore shall not only have a clear agenda pertaining to the Viksit Bharat 2047 vision but fiscal discipline as well. Now, big-ticket items include taxation reforms and standard deductions for real estate, with increased deductions and a reduced holding period for capital gains. Economic Survey 2023-24: pegs the growth at 6.5%-7% for the current year. The Survey also contains challenges for job creation and skill development.

The 2023-24 Economic Survey tabled by Union Finance Minister Nirmala Sitharaman in Parliament has pegged GDP growth at 6.5-7 percent in FY25, and the fall in retail inflation at 4.5 percent. It is highly optimistic about India's capacity to absorb economic shocks and has projected improvements in fiscal balances and reductions in current account deficits. Other thematic areas of major focus would be jump-starting private investment, revival of MSMEs, and vigorously pursuing green transition. The government is also fully prepared to take cognizance of issues related to creating more jobs, skill development, and health-related issues through the Ayushman Bharat program and NEP 2020. Tomorrow is when the Union Budget for 2024-25 is to be presented.

Minister of State for Finance Pankaj Chaudhary said, "The Union Budget 2024-25 would be in furtherance to the dream of the Prime Minister Narendra Modi for 'Sabka Sath Sabka Vikas'." The budget is likely to be presented by Finance Minister Nirmala Sitharaman; it will be her seventh consecutive budget. There will be a 20-hour discussion in the Lower House, while in the Upper House, there will be an eight-hour debate on appropriation and finance bills. Additional discussions will be held with respect to various ministries, whose agenda has been finalized by business advisory committees.

On Tuesday, ahead of the Union Budget presentation, the markets kept up the positive momentum with the Sensex ending at 80,766.41—up 264 points—and the Nifty up by 73.3 points at 24,582.55. Investors took a positive response, backed by foreign fund inflows and a rally in global markets, including in the US where the markets surged following an endorsement by President Biden for Kamala Harris in the 2024 election. Indian indices began on a strong note but could not sustain such a pace as market players remained cautious ahead of the Union Budget, coupled with global economic cues. The rupee and bond yields also remained steady.

The Economic Survey 2023-24 would not like sensitive food commodities such as rice and wheat to be traded in futures till markets mature and, hence, recommends focusing on less sensitive items like oilseeds and spices. It tells of the rising role of capital markets in India's economy and how the markets have been performing well despite global risks. Besides, it places emphasis on imparting education to investors against derivative trading risks and stable policies that support market growth. It also said that activity by retail investors jumped while IPO and corporate bond markets remained busy.

A case has been lodged against two Enforcement Directorate officials for putting pressure on a state officer to make false statements against Chief Minister Siddaramaiah and the Finance Department in the Rs 187 crore Karnataka scam. Additional Director Kallesh B, in his complaint, charged ED officials Murali Kannan and Mittal with criminal intimidation and coercion. He has termed it as a political vendetta and slammed the BJP for misusing the central investigating agencies against the Congress leaders. The case of embezzlement is being probed by the CBI and a special investigation team constituted by the Karnataka government.

The Government of India has announced that as many as 100 new branches of India Post Payments Bank (IPPB) would be opened in Northeastern states, according to Finance Minister Nirmala Sitharaman in her Union Budget 2024-25. Currently, IPPB operates through several branches and manages crores of accounts. Stay tuned to our full coverage for all the latest updates on the Union Budget 2024—changes in income tax slab rates and their impact on the stock market.

The DMK leader and Tamil Nadu Law Minister, S. Regupathy, has termed Lord Ram as the forerunner of the Dravidian model and a champion of social justice and secularism. He said that Ram's principles had influenced the principles of the Dravidian movement, and he would like to visit the Ram Mandir in Ayodhya. BJP came out strongly against this comparison that Regupathy made and said that DMK's governance is more similar to Ravana's kingdom than that of Ram. They also pointed out a prior controversial statement against Sanatana Dharma by DMK leader Udhayanidhi Stalin.