New Delhi, July 23, 2024.

Finance Minister Nirmala Sitharaman presented her seventh consecutive Budget on July 23 for the fiscal year 2024-25, breaking the record previously held by former Prime Minister Morarji Desai. This is the first Budget of the BJP-led NDA government since its re-election in June. The government has announced a new skilling program designed to train 20 lakh youth over the next five years through industry-designed courses.

“A long-standing demand for climate taxonomy has been committed in the budget speech. I am hoping that it is released soon, making climate-related financing easier to channel. In addition to that, a number of announcements keeping in mind climate change and the need to improve resilience to climate change is refreshing. Strong and well-executed initiatives to address the issues and opportunities would lead us to a more climate-resilient country," said Avishek Gupta, MD and CEO, Caspian Debt.

Staying the course with Viksit Bharat

The finance minister prioritized nine key areas, aiming to benefit the poor, women, youth, and farmers. These areas include agriculture, employment, skilling, and manufacturing. The infrastructure outlay remained at 11 lakh crores, with a focus on housing. The fiscal deficit target of 4.9% is commendable, and the emphasis on the fiscal consolidation path is positive. However, the surprise twist was the Capital Gains tax: short-term capital gains at 20% and long-term gains at 12.5%. While this may impact sentiment in the short term, the overall focus on employment, development, and infrastructure promises long-term benefits. In summary, it’s a sensible budget that addresses key segments, sectors, and states while maintaining fiscal discipline.” Said Ms. Shanti Ekambaram, Deputy MD, Kotak Mahindra Bank.

“We commend the Indian government's recent budget, which places a significant emphasis on youth skill development and employment opportunities. The proposed initiative to equip 20 lakh young people with relevant skills over the next five years is commendable and timely, representing a strategic vision for the future, said Warren Harris, CEO & MD, Tata Technologies.