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Union Budget 2024 Highlights: Impact on Stock Market
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Budget 2024 Highlights: A Roadmap for India's Growth
The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, outlines a comprehensive plan to steer India towards sustained growth and development. This year's budget emphasizes employment, education, agriculture, and infrastructure, targeting key areas to bolster the nation's economy and improve the quality of life for its citizens. Here are the major highlights:
Empowering Youth and Employment
The Budget 2024 places a significant focus on youth employment and skill development. Five new schemes with a central outlay of Rs 2 lakh crore are set to benefit 4.1 crore youth over the next five years. Key initiatives include:
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Employment-Linked Incentives: Three schemes via EPFO, including one month's wage for freshers, job creation in manufacturing, and support to employers.
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Internship Scheme: Internship opportunities in top 500 companies for 1 crore youth with an allowance of Rs 5,000 per month and a one-time benefit of Rs 6,000.
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Model Skill Loan Scheme: Revised to facilitate loans up to Rs 7.5 lakh with government guarantees.
Boosting Education and Skilling
An allocation of Rs 1.48 lakh crore has been made for education, employment, and skilling. This includes financial support for students with loans up to Rs 10 lakh for higher education in Indian institutes, coupled with e-vouchers providing a 3% interest subsidy.
Agricultural and Allied Sectors
The budget allocates Rs 1.52 lakh crore for agriculture and allied sectors, with significant measures to support farmers and enhance productivity:
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Easy Financing for Shrimp Farming: Financial aid to boost shrimp farming and feeds.
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High-Quality Seeds and Agriculture Push: Incentives for high-quality seeds impacting stocks like Kaveri Seeds, Godrej Agrovet, and Sharda Cropchem.
Infrastructure Development
Substantial investments are planned for infrastructure to ensure long-term economic growth:
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Road and Rural Infrastructure: PM Gram Sadak Yojana Phase IV to connect 25,000 rural habitations.
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Urban Housing: Central subsidy for 1 crore houses under PM Awas Yojana 2.0 with an investment of Rs 10 lakh crore for urban poor and middle-class families.
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Energy Transition: Policies for pumped storage, solar rooftop schemes, and nuclear energy projects, including an 800 MW commercial plant by NTPC and BHEL.
Detailed Video
MSMEs and Industrial Growth
The budget introduces various schemes to support Micro, Small, and Medium Enterprises (MSMEs):
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Credit Guarantee Scheme: Enhanced credit guarantees for MSMEs in the manufacturing sector.
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Technology Support: Financing packages to support MSME technology upgrades.
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Rental Housing: PPP mode to facilitate dorm-like accommodation for industrial workers.
Financial Sector Reforms
To streamline financial processes and support economic activities, the budget proposes:
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Comprehensive Income Tax Review: Completion of a review of the Income Tax Act of 1961 within six months.
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Simplification of Capital Gains Tax: Changes in tax rates for short-term and long-term gains, with an increased exemption limit for long-term capital gains.
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Corporate Tax Reductions: Reduced tax rates for foreign companies and increased standard deduction under the new tax regime.
Additional Highlights
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Fiscal Deficit: Lowered to 4.9% of GDP, with market borrowing unchanged at Rs 14.13 lakh crore.
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Mudra Loans: Enhanced from Rs 10 lakh to Rs 20 lakh.
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Tourism and Space Economy: A Rs 1,000 crore boost for the space economy and efforts to position India as a global tourist destination.
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Bhoo-Aadhar: Digitization of rural lands and urban land records.
Conclusion
The Union Budget 2024 is a forward-looking document aimed at driving India's economic growth, with a particular focus on empowering the youth, enhancing agricultural productivity, and building robust infrastructure. By addressing key sectors and providing targeted financial support, the budget aims to pave the way for a prosperous and self-reliant India.
Frequently Asked Questions
The Union Budget 2024 primarily focuses on employment, education, agriculture, infrastructure, and MSME support. It aims to drive economic growth through targeted schemes and investments in these sectors.
The budget introduces five new schemes with a central outlay of Rs 2 lakh crore to benefit 4.1 crore youth over the next five years. These include employment-linked incentives, internship opportunities in top companies, and a revised Model Skill Loan Scheme to facilitate higher education and skilling.
The budget allocates Rs 1.52 lakh crore for agriculture and allied sectors. It includes easy financing for shrimp farming, incentives for high-quality seeds, and other initiatives to boost agricultural productivity and support farmers.
The budget introduces several schemes to support MSMEs, including an enhanced credit guarantee scheme, financing packages for technology upgrades, and rental housing for industrial workers in PPP mode.
The budget proposes a comprehensive review of the Income Tax Act of 1961, simplification of capital gains tax rates, increased exemption limits for long-term gains, reduced corporate tax rates for foreign companies, and increased standard deduction under the new tax regime.
