New Delhi:

Finance Minister Nirmala Sitharaman will table the Economic Survey in Parliament on July 22, a day ahead of the Union Budget, which will be a report card on the economy and also the growth outlook ahead.

The survey gives a detailed account of the state of the economy, prospects and policy challenges. It is prepared by a team led by chief economic adviser V Anantha Nageswaran.

The Economic Survey provides statistical information and analysis on various sectors of the economy as well as data on employment, GDP growth, inflation, and the budget deficit.

India has retained its tag as the fastest-growing economy, and the economic survey will be presented at a time when the IMF has just raised its economic growth forecast for the country for FY25 to 7 per cent from 6.8 per cent projected in April.

“The forecast for growth in India has also been revised upward, to 7 per cent, this year, with the change reflecting carryover from upward revisions to growth in 2023 and improved prospects for private consumption, particularly in rural areas,” the IMF said.

In June, the Reserve Bank of India revised the growth forecast to 7.2 from 7 per cent.

The RBI sees India moving ahead towards an 8 per cent GDP growth trajectory on a sustained basis, driven by structural economic reforms such as GST.

“If you look at the average growth India recorded over the three years, the average comes to 8.3 per cent and the current year we have given a projection of 7.2 per cent growth,” RBI Governor Shaktikanta Das said.

He also said the Indian economy in the last financial year 2023-24 contributed to 18.5 per cent of the global growth which is a major achievement as it was much lower 7 or 8 years ago. The IMF has projected that this growth will go up, he added.
 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

A view of the industrial and logistics park at Chakan, Pune.
| Photo Credit: Special Arrangement

Logistics industry is expecting steps that will further improve ease of doing business in the country, incentives and benefits for green initiatives in the sector, among others, in the Union Budget for 2024-25, which is set to be presented by the Finance Minister Nirmala Sitharaman in the Parliament next week.

“There is significant scope to improve the ease of doing business by streamlining regulations and adopting digital processes. Simplifying and ensuring consistency in GST administration, greater clarity and standardisation in interpretation of customs procedures, and TDS regulations are crucial steps in this direction,” said R S Subramanian, Senior Vice President & Managing Director, DHL Express India.

Also read: The ideal track to run India’s logistics system

“I am optimistic that the Budget will prioritise infrastructure and logistics as critical levers of growth, consistent with the interim Budget,” said Rizwan Soomar, Chief Executive Officer and Managing Director, DP World North Africa and India Subcontinent.

“The Budget could include incentives and benefits for green initiatives in logistics which aligns with the overall decarbonisation goals of the government and the private sector,” Mr. Soomar said.

Streamlining the existing regulatory frameworks further will encourage greater private sector participation and innovation in logistics, he added.

“We anticipate seeing significant investments throughout the industry in multi-modal connectivity, including advanced air cargo terminals and infrastructure enhancements to create seamless trade corridors.

“We also anticipate a continued focus on trade facilitation, streamlining and digitising clearance processes, minimising delays and enhancing cargo movement efficiency,” said Kami Viswanathan, President, FedEx for MEISA region.

“As we approach the Union Budget 2024-25 announcement, TCI is optimistic about the government’s commitment to bolstering the logistics sector. Emphasis on infrastructure development, streamlined regulations, workforce upskilling, and enhanced investment in technology will drive efficiency and sustainability,” TCI Managing Director Vineet Agarwal said.

Policy to support innovation

TCI is looking forward to policies that support innovation and ease of doing business, ultimately contributing to the nation’s economic resurgence, he said.

Stating that Interem Relocations is optimistic about the continued emphasis on infrastructure development, technological integration, and policy reforms, company’s Group CEO Vishal Agarwal said, “We are particularly hopeful about the inclusion of diesel under the GST ambit, which would greatly aid in cost regulation.”

Locus.sh Founder & CEO Nishith Rastogi said, “Beyond infrastructure enhancements and tax reforms, there is an urgent need for strategic resource allocation to adapt to market dynamics, including fuel price fluctuations and supply chain disruptions… Additionally, incentives for green logistics and digital infrastructure development will be key to achieving our long-term goals.” “Continued government support is essential to foster innovation and assist startups in navigating this evolving landscape, ensuring that the sector remains competitive and resilient,” he said.

“Important areas of concentration include making large infrastructure expenditures to improve efficiency, such as building multimodal logistics parks and designated freight corridors. For enhanced operations and transparency, embracing technology like AI and IoT needs incentives,” iThink Logistics Co-founder Zaiba Sarang said.

Streamlining the GST system and encouraging sustainability by using electric cars and other eco-friendly activities is also essential.

Innovation and growth will also be fuelled by assistance for SMEs, startups, and skill development as well as by encouraging public-private collaborations and streamlining regulatory procedures, she said.

“By addressing these issues, the industry will contribute more to India’s economic development,” Ms. Sarang added.

Congress leader Jairam Ramesh. File
| Photo Credit: ANI

Continuing its attack on the economic policies of the Narendra Modi government ahead of the first budget of the NDA government on July 23, the Congress on Wednesday said that “India has been locked into a cycle of low investment since 2014” due to a combination of “erratic policy, rampant cronyism, and the ED/IT/CBI raid raj”. The party said the country needs a new liberalised approach to political economy.

Congress general secretary (communications) Jairam Ramesh said the single most important statistic that explains India’s inability to grow faster since 2014 is the “sluggish investment rate”.

“India has been locked into a cycle of low investment since 2014, due to a combination of erratic policy, rampant cronyism, and the ED/IT/CBI raid raj,” Mr. Ramesh said in a statement.

Low investment drags down the medium and long-term GDP growth rates, which in turn brings down wages and consumption growth, he said.

The biggest component of investment, Mr. Ramesh said, the private domestic investment, has been in doldrums since 2014. In comparison to the UPA years, when the investment was in the 25-30% range of the GDP, it has been reduced to 20-25% of the GDP range, he said.

“This is, however, only part of the story. Since at least 2016, multinational companies across the world have been looking to divest from China and invest in other developing countries. India, with a large and growing labour pool, was at the right place at the right time – but this generational opportunity to garner FDI and become a manufacturing and export-oriented economy has been squandered,” Mr. Ramesh said.

Instead of India, Bangladesh and Vietnam have capitalised and have walked away with the benefits, he said. “Sops like corporate tax cuts and PLIs can’t compensate for a freer society, polity, and economy – one that is free from demonetization-like masterstrokes, cronyism, and Raid Raj,” Mr. Ramesh said. Marginal policy tinkering will not work, he said.

Union Finance Minister Nirmala Sitharaman will present the budget next week.
| Photo Credit: PTI

Import holidays, GST exemption for components of launch vehicles, productivity-linked incentives (PLI) and government stepping in as a customer are some of the expectations of the private space sector from Finance Minister Nirmala Sitharaman as she presents the Union Budget next week.

“More money for space-related acquisitions, tax holidays, import holidays, and PLI scheme for space,” Pixxel Space co-founder and CEO Awais Ahmed told PTI when asked about his wishlist for the budget.

Industry bodies Indian Space Association (ISpA) and Satcom Industry Association (SIA-India) have sought greater government expenditure on the space sector in the form of an anchor customer for the nascent private sector.

“ISpA calls for a commitment from the government to procure and adopt space technology solutions across various governance areas such as agriculture, disaster management, infrastructure planning and development monitoring, urban development, and remote area connectivity,” ISpA director general Lt Gen Anil . Bhatt (retd) said.

Mr. Bhatt also sought extension of GST waiver on satellite launch services to other critical components of satellites, ground systems, and launch vehicles.

He also wanted the finance minister to consider tax exemptions/tax holiday and custom-duty exemptions for space sector firms and reduction of tax rate on interest on foreign borrowings.

“The prompt implementation of the Space Activities Act is crucial for addressing legal and standards related issues, providing a clear regulatory framework for the industry,” Mr. Bhatt said.

“The Budget should prioritize measures to propel the commercial space sector, with a focus on nurturing deeptech space startups,” SIA-India president Subba Rao Pavuluri told PTI.

Arpan Sahoo, co-founder and chief operating officer of space startup KaleidEO, said while current tax and customs exemptions benefit systems and sub-systems, there is a need to extend these to component levels.

“This is crucial for startups operating with limited resources, allowing them time to scale over the next decade,” Mr. Sahoo said.

“As a sunrise industry, more demand generation from the government is essential to drive non-linear growth,” he said.

SIA-India director general Anil Prakash made a strong pitch for a substantial increase in the space budget to align with space-faring nations, alongside dedicated funds for local manufacturing and capability building.

Mr. Prakash urged the government to recognize the potential of market segments such as rural broadband, enterprise connectivity, maritime, aviation, and disaster management.

“A portion of the unutilized Universal Service Obligation Fund could be allocated for satellite services to improve connectivity and bridge the digital divide in rural/remote areas of the country,” he said.

ISpA also said a Digital Public Infrastructure and Digital Public Goods approach for Earth observation based geospatial analytics and insights can unlock value and innovation to several stakeholders well beyond the space sector.

Chandigarh:

Union Finance Minister Nirmala Sitharaman accused the Congress on Sunday of “spreading lies and creating a false narrative” against the BJP-led Centre, and asked the party workers to counter this “falsehood” with facts and data.

Nirmala Sitharaman said this while addressing a meeting of the Chandigarh BJP state executive. Later, she also held a meeting with traders to understand their issues and know their demands.

Referring to the recently-concluded Lok Sabha polls, the Bharatiya Janata Party (BJP) leader said the Congress has now failed to touch the 250-seat mark in the last 10 general elections.

“Even then, they have an artificial confidence,” she said while pointing towards the Congress’s performance in the last 10 Lok Sabha polls.

“The INDI alliance, comprising 13 political parties, could manage to win just 232 seats, while the BJP on its own won 240 seats,” Nirmala Sitharaman said.

She also pointed out that the Congress could not win a single seat in 14 states in this year’s Lok Sabha election.

The finance minister accused the Congress of “spreading lies” and trying to twist certain statements of Prime Minister Narendra Modi, Home Minister Amit Shah and Union minister Nitin Gadkari in order to create a “false narrative”.

Slamming the Congress for its “lies”, she alleged that the opposition party tried to “spread falsehood” on many issues, including the compensation given to people in Ayodhya for their land acquired for building the Ram temple, the Agnipath scheme for short-term military recruitment and electronic voting machines (EVMs).

Nirmala Sitharaman said Uttar Pradesh Chief Minister Yogi Adityanath himself had stated that his government had given a total compensation amount of Rs 1,733 crore for the land acquired for the Ram temple.

She also accused the Congress of giving false statements against the Agnipath scheme.

“We should seriously understand the strategy of the Congress. Attempts are being made to attack the BJP by making wrong statements, spreading lies and creating a false narrative,” the finance minister said.

She said every “false statement” the opposition party spreads, even on social media, should be countered instantly with facts and data.

Further taking on the Congress, Nirmala Sitharaman said the opposition party and its sympathisers went to courts against several decisions taken by the Centre in the last 10 years, including those related to the Ram temple, abrogating the provisions of Article 370 of the Constitution in Jammu and Kashmir, demonetisation, the Central Vista project, the appointment of the chief election commissioner, the National Education Policy and the Mumbai metro project.

On the conduct of Congress leaders in Parliament, she said they raise questions in the House but when ministers give replies to those questions, they stage a walkout.

“That is not the role of a constructive opposition,” she said.

The Union minister said Modi got the mandate to form the government for a third straight time in the Lok Sabha polls.

Similarly, the Congress got less than 100 seats for playing the role of a responsible opposition, she added.

“The Congress must understand that like people give votes to form the government, they gave them votes to remain in the opposition,” she said.

But the Congress is yet to understand this, she asserted.

Nirmala Sitharaman said the government has announced that June 25, the day when the Emergency was declared in 1975, would be observed as “Samvidhan Hatya Diwas”.

“It will remind people of what happened on June 25, 1975 and why did it happen,” she said, adding that every opposition leader was put in jail during that period.

The Union minister asserted that the country is moving forward. “We have very good growth in every sector,” she said.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

US-India Strategic Partnership Forum has urged Union Finance Minister Nirmala Sitharaman to ensure a stable and predictable tax environment as she prepares for her annual budget later this month.
| Photo Credit: PTI

The US-India Strategic Partnership Forum has urged Union Finance Minister Nirmala Sitharaman to ensure a stable and predictable tax environment as she prepares for her annual budget later this month.

The US-India Tax Forum, a dedicated Tax Policy Forum of the US-India Strategic Partnership Forum (USISPF), said this in a set of recommendations to Ms. Sitharaman.

In a press release by USISPF, the tax forum said that a stable and predictable tax environment is imperative to boost investment sentiment across sectors.

“The industry eagerly anticipates the Union Budget 2024-25, the first budget of the re-elected Government, which is expected to introduce measures that will stimulate growth across sectors,” it said.

Asserting that an investment-led growth strategy is essential to support India’s economy, it said measures are needed to enhance the ease of doing business, rationalise the cost of doing business, and simplify tax rates and tariffs.

The business community looks forward to tax efficiency measures and clarifications that will address transactional issues around the tax legislation, unlocking growth and investment opportunities, USISPF said.

Observing that rationalisation of corporate tax rates has long been an ask for companies across sectors, the US-India Tax Forum suggested bringing parity in tax payable by domestic and foreign players in multiple sectors.

“This would ensure a level playing field in sectors such as banking where foreign banks’ branches pay high taxes in India. Acknowledging the global developments around the minimum tax deal, the Tax Forum has highlighted the need to rationalise corporate tax rates,” the press release said.

The forum also suggested significant reforms in the capital gains tax structure, which it said is “currently complex”.

It underscored the need to bring parity among tax rates and holding periods for investments across equity, debt, and immovable property, calling its present form “fragmented”.

“This would lead to a simpler capital gains tax structure and reduce the compliance burden,” it said.

“The ensuing budget of the government is expected to build on the reforms previously implemented,” said Tarun Bajaj, chairperson of the US-India Tax Forum and former Revenue Secretary.

Bajaj said it is expected to introduce targeted reforms in direct taxes and customs policies to enhance India’s economic partnerships globally.

“The industry should anticipate measures to streamline corporate tax structures and transactions, incentivise investments, and simplify customs procedures to facilitate smoother trade flows,” he said.

“These initiatives are crucial for fostering a conducive business environment and strengthening bilateral economic ties, ensuring mutual prosperity and competitiveness in the global market. Additionally, they will further build on the ease of doing business for industries in India,” Bajaj said.

USISPF president and CEO Mukesh Aghi said multinational corporations anticipate Budget 2024-25 to prioritise stable tax policies, robust infrastructure investments, innovative incentives, and sustainable development initiatives, fostering a conducive business environment for growth and global competitiveness.

“Our recommendations are largely aligned towards these areas, seeking clarity and consistency in regulations,” he said.

Naveen Aggarwal, Partner-Tax, KPMG India, said India Inc’s expectations are bigger and bolder in the run-up to this budget as it awaits substantive proposals around long-standing requests — faster resolution of tax disputes, extension of lower tax regime to incentivise new manufacturing, rationalisation of capital gain and withholding tax regimes, amongst the prominent ones.  “With more than 40 countries across the globe already working towards implementation of Pillar 2 GloBE rules, the need of the hour is for India to develop a comprehensive roadmap for implementing these global tax reforms. This would help ensure that India is on course to get its fair share of taxes. Clarity is also awaited on the future of India’s equalisation levy, the fate of which is intertwined with Pillar 1 Amount A MLC ratification,” Aggarwal said.

Congress general secretary Jairam Ramesh. File
| Photo Credit: PTI

The Congress on July 12 said the forthcoming Budget must address fundamental questions such as why private investment is “very sluggish” and private consumption is not picking up as the party dismissed claims that economic growth is accelerating sharply and large numbers of jobs being created.

Union Finance Minister Nirmala Sitharaman is scheduled to present the Budget for 2024-25 in the Lok Sabha on July 23.

Congress general secretary, in-charge communications, Jairam Ramesh said, “The non-biological PM’s cheerleaders and drumbeaters claim that economic growth is accelerating sharply and that jobs are being created in large numbers. But if this was the case — and it is not — Why is private investment, a key engine of economic growth, still so very sluggish recording a 20-year low during April-June 2024? Why is private consumption, another key engine of economic growth, not picking up except at the high end,” Mr. Ramesh asked.

“Why have household savings plummeted to record lows and household debt shot up to record highs? Why have rural wages continued to fall and why is the wage share of national income declining?” he said, adding, why is manufacturing as a share of GDP at a record low and still decreasing? Why has the informal sector lost 17 lakh jobs in the last seven years? Why did unemployment reach a 45-year peak, with unemployment for young graduates at 42%?” the Congress general secretary said.

“These are fundamental questions that the forthcoming Budget will have to address while the Finance Minister sings praises of the non-biological PM,” Mr. Ramesh said.

On Thursday, the BJP claimed that around 12.5 crore jobs were created in the last 10 years of the Modi government and cited the latest Reserve Bank of India report to assert the creation of “five crore jobs in 2023-24 alone”.

Several experts have urged the government to provide tax relief to the common man to boost consumption and take steps to check inflation and accelerate economic growth.

The economy has recorded a growth rate of 8.2% in 2023-24. Earlier in February, Ms. Sitharaman presented an Interim Budget for 2024-25 in view of the Lok Sabha elections.

Ravneet Singh Bittu
| Photo Credit: PTI

Punjab’s Minister of State for Railways and Food Processing Ravneet Singh Bittu met Union Finance Minister Nirmala Sitharaman and sought special incentives for industry and farmers of Punjab’s border districts following the pattern of Jammu and Kashmir.

“Taking up the issues of Punjab at a marathon meeting held late Wednesday night, the Hon’ble Minister urged the Hon’ble Finance Minister to consider the demands of Punjab on priority being a border state,” a press statement issued from Mr. Bittu’s office said.

The minister demanded special incentives for the border districts of Punjab namely Amritsar, Ferozepur, Gurdaspur and Tarn Taran to boost investment as well as employment opportunities in line with Jammu and Kashmir and the north-eastern states, the statement added.

“The Hon’ble Minister informed the FM that the flagship Credit Linked Capital Subsidy Scheme (CLCSS) should be reintroduced with a threshold limit of 1,00,00.000, as there is a lack of effective schemes supporting MSMEs in achieving technological advancements,” the release said.

“In light of the recent increase in capital costs, it is desired that the limit under the Prime Minister’s Employment Generation Programme (PMEGP) be increased to 1,00,00,000,” it added.

According to Mr. Bittu’s office, the minister also suggested to Mr. Sitharaman an amendment in freight subsidy criteria to cover the MSMEs in Punjab.

“The FM was apprised of the fact that transportation costs to deliver goods to the nearest port in India is much higher for land-locked states such as Punjab as compared to the coastal states. The cost also depends on the distance of the nearest port from the respective state.” the release said.

“Many other states like J&K, Himachal Pradesh, parts of Uttarakhand and West Bengal are enjoying transport subsidies ranging from 50 to 90 per cent,” it added.

According to the minister’s office, the issue of reduction of GST on bicycles to 5% as on e-bicycles was also discussed in the meeting.

“The Hon’ble Minister demanded to commence the operations of the Refrigeration Unit near Sri Guru Ram Dass Jee International Airport, Amritsar to boost export of food items from Punjab. The unit, installed years ago, is not yet functional. It would benefit Punjab and neighboring states as well,” the release said.

The minister also pushed for “Farmer Entrepreneur Initiative” and special incentives on Agro- based MSME industry along with food processing industry to generate employment in the border districts, it added.

“The Hon’ble Minister suggested a lower rate of interest, collateral free loans and relaxation in CGST. He also sought waiver for farmers with land holdings up to 5 acres, soil testing labs for Majha, Doaba and Malwa regions of Punjab and special package for R&D at Punjab Agriculture University Ludhiana,” the release said.

“The Hon’ble Finance Minister heard him with patience and assured that Punjab will get a very good representation in the coming budget,” it added.

More tax benefits for health insurance under the new tax regime, relaxation in payment norms for MSMEs and incentives for the agri-tech sector are among the expectations of stakeholders from the first budget of the Modi 3.0 government.

Finance Minister Nirmala Sitharaman is scheduled to present the full Budget for fiscal 2024-25 on July 23, which will be the first major policy document of the new government.

Click here for more 2024-25 Budget related updates

Anup Rau, Managing Director and Chief Executive Officer of Future Generali India Insurance Company, said the deduction limit on health insurance premiums under Section 80D of the Income Tax Act has remained unchanged for the past nine years despite the fact that there has been a significant rise in healthcare costs across the country.

“It would be best if the limit for medical insurance is linked to inflation and gets revised automatically every year or once in a couple of years. Also, the benefits need to be extended to the New Tax regime since increasing health insurance penetration is critical. So, we hope the upcoming Budget to announce some hike in the deduction limit on health insurance premiums,” Rau said.

Tapan Singhel, MD & CEO of Bajaj Allianz General Insurance, said reforms like offering health insurance to employees at negotiated rates, reducing GST on health insurance premiums, and offering tax benefits like increased Section 80D exemption limits would make health insurance more affordable and accessible, especially for the ‘missing middle’ segment of our population.

“Additionally, for senior citizens, removing the limit on deductions for health insurance premiums would significantly ease their financial burden,” Mr. Singhel said.

The Finance Minister is likely to lay out the government’s economic agenda in the budget.

On expectations from the Ms. Sitharaman’s budget, D S Negi, CEO of Rajiv Gandhi Cancer Institute & Research Centre (RGCIRC), said the focus on reforming cancer care in India is crucial and it is important to prioritise funding for advanced treatments like immunotherapy and personalised medicine, ensuring more patients can access these cutting-edge therapies.

“Extending Ayushman Bharat to those aged above 70 years will be highly beneficial for senior citizens. However, the current coverage limit of ₹5 lakh may not be sufficient for critical illnesses such as cancer, where treatment costs can range from ₹15-20 lakh.

“Therefore, it is essential to consider increasing the coverage limit for critical illnesses like cancer to ensure adequate financial support for cancer patients,” Mr. Negi added.

The budget is likely to include steps to fast-rack reforms to make India a USD 5-trillion economy in the near future and turn the country into a ‘Viksit Bharat’ by 2047.

Ahead of the budget, Chairman of the Medical Technology Association of India (MTaI) Pavan Choudary said that customs duties and taxes levied on medical devices in India are one of the highest in the world which directly impacts patient affordability.

“On the other hand, countries like Singapore, Hong Kong, Italy, and Norway impose no such duties. Australia and Japan levy only a minimal 0.5 per cent duty, while in the United States, it stands at 2 per cent, and in China at 3 per cent.

“This stark contrast creates risk for illegal imports of medical devices in India that are not backed by legal and service guarantees. Furthermore, such trade would undercut the Indian government’s tariff revenue,” he said.

Vivek Jalan, Partner at Tax Connect Advisory Services LLP, said as per recommendations of Micro, Small & Medium Enterprises (MSMEs), Section 43B(h) in the Income Tax Act was introduced from AY 24-25. However, the alignment of the disallowance for payables under sections 43B(h) of the Act has been made with the MSME Act, which requires that payment has to be made to an SME within a maximum of 45 days.

“This is difficult in the present-day trade where a 60-90 days credit period is the norm.

“In this budget, it is expected that this provision will be relaxed/amended aligning the same with the CGST Act w.r.t. disallowance when payment to SMEs is not made within 180 days. Hence, in case a taxpayer does not pay an SME within 180 days, then the expense may be added back to his income,” he said.

In anticipation of the budget, Saurabh Rai, CEO of Arahas, has expressed high expectations for substantial investments in sustainability and geospatial technology.

“We anticipate significant allocations towards renewable energy projects and incentives for companies embracing green technologies,” he said.

Additionally, Rai said that boosting agri-tech innovations, providing tax incentives for tech companies and investing in human capital development is imperative for driving sustainable growth.

Sanjay Kumar, Founder and CEO of Geospatial World, said that to fully leverage the power of digital twin technology, it is crucial to allocate dedicated funds to it in the Union Budget.

“This allocation will facilitate the widespread adoption of digital twins, driving efficiency gains, cost savings, and improved decision-making in infrastructure projects. By investing in this technology, India can achieve significant long-term benefits, such as enhanced asset management, reduced downtime, and increased resilience to environmental challenges,” Mr. Kumar said.

Ms. Sitharaman was given charge of the finance portfolio in the second stint of the Modi government after the 2019 general elections, becoming the first full-time woman Finance Minister in independent India.

New Delhi:

Prime Minister Narendra Modi today held a meeting with senior NITI Aayog officials and leading economists as part of the wider consultations in the run-up to the Union Budget 2024-25.

The Modi 3.0 government will present its first full budget on July 23.

Finance Minister Nirmala Sitharaman along with Planning Minister Rao Inderjit Singh, Chief Economic Advisor V Anantha Nageswaran, Economist Surjit Bhalla, Agricultural Economist Ashok Gulati and veteran banker KV Kamath were also present at the meeting.

This will be the first major economic document of the Modi 3.0 government, which is expected to outline a road map for making India a developed nation by 2047.

#WATCH | Delhi: Prime Minister Narendra Modi holds a meeting with economists ahead of the Union budget which will be presented on July 23; Union Finance Minister Nirmala Sitharaman also present

(Source: DD News) pic.twitter.com/OkTX2Zb9s6

— ANI (@ANI) July 11, 2024

Finance Minister Sitharaman has already held widespread discussions including captains of Indian industry, state finance ministers and economists to elicit their views for the forthcoming Budget.

After having presented an interim budget ahead of the Lok Sabha polls, the Finance Minister will now present the full budget for 2024-25 that ensures the economy continues on the high growth trajectory and creates more jobs during the third term of the Modi government.

Finance Minister Sitharaman is expected to increase the exemption limit for income tax to give some relief to the middle class. This would place more disposable income in the hands of consumers and lead to an increase in demand to fuel economic growth.

Given the low fiscal deficit, the hefty Rs 2.11 lakh crore dividend from the RBI and the buoyancy in taxes, the Finance Minister has a lot of headroom for pushing ahead with policies aimed at accelerating growth and implementing social welfare schemes aimed at uplifting the poor.

Prime Minister Modi has already declared that “the next 5 years will be a decisive fight against poverty.”

Finance Minister Sitharaman will be presenting the budget at a time when the Indian economy has clocked a robust 8.2 per cent growth in 2023-24, which is the fastest among the world’s major economies, and inflation is coming down to below 5 per cent. The RBI has stated that the economy is headed to an over 8 per cent growth trajectory.

The fiscal deficit has also been reduced from more than 9 per cent of GDP in 2020-21 to the targeted level of 5.1 per cent for 2024-25. This has strengthened the macroeconomic fundamentals of the economy. S&P Global Rating raised India’s sovereign rating outlook to ‘positive’ from ‘stable’, citing the country’s improving finances and strong economic growth.
 

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)