Budget 2024 Live Updates: FM Nirmala Sitharaman and her team have reached north block ahead of Interim Budget

Budget 2024 Live: Investors are eagerly awaiting updates on capital gains taxes ahead of the impending Interim Union Budget. The previous budget saw adjustments in this critical area, prompting anticipation of potential modifications by Finance Minister Nirmala Sitharaman. Capital gains taxes significantly influence investment decisions in India, covering profits from asset sales like real estate and stocks, with different rates for short-term and long-term gains. Despite expectations of no major changes in the Interim Budget, experts remain divided on aspects of capital gains taxes.

Budget 2024 Live: Anticipated Key Areas in Interim Budget 2024 for Economic Growth include the following according to Sampat — 1. Infrastructure Development: Expectations include provisions for improved roads, airports, and railroads to enhance the mobility of people, materials, manpower, and equipment.

2. Cleaner Air Conditions: Hopes for policies targeting enhanced air quality in India, emphasizing pollution reduction in major cities. Enforcing bans on polluting fuels and promoting a gas economy aligns with the commitment to cleaner air as a basic human right.

3. Business Ecosystem Enhancement: Expectations encompass measures for a more efficient business environment, including prompt dispute resolution, policies facilitating easy business startup and operation, and enhanced processes for business compliance.

These expectations are in line with a commitment to sustainable practices, economic growth, and a cleaner, more efficient energy landscape in India.

Budget 2024 Live: Agriculture is vital to the Indian Economy, contributing 16% to the GDP and employing around 52% of the population. India aims to achieve a $100 billion Agricultural Exports target by 2030, doubling the current $50 billion. To meet this goal, significant capital is needed for agricultural modernization.

Success factors include real-time access to information on domestic and global demands, weather patterns, crop insurance, and improved export connectivity. There’s a need to promote plant-based proteins, aligning the GST sector with Animal protein, feels Sinha. The global Meat Industry, valued at $1.3 trillion, offers an opportunity for India to capture a market share with affordable and healthy plant-based alternatives. With 72% of Indians protein deficient, focusing on plant-based proteins can address this gap. Investments in extracting proteins from traditional crops are crucial. Export promotion and incentives can boost the plant-based protein industry with a high sustainability footprint.

Introducing a separate PLI scheme for plant-based proteins could incentivize the agricultural processing sector, facilitating the global adoption of plant-based proteins. India, with abundant resources, a skilled workforce, and manufacturing capabilities, has the potential to lead in the global food and agri-processing space, added Sinha.

Budget 2024 Live: The 2024-’25 Union Budget is set to focus on smart agriculture, research and development, blockchain for transparency, IoT devices in precision farming, and ERP solutions for sustainable farming. Expectations for the upcoming budget include significant investments in smart agriculture, modernizing storage and transportation, and creating integrated supply chains for efficiency and sustainability. Increased funding for Research and Development (R&D) is anticipated to foster innovation in crop varieties, pest control, and farming techniques. The budget is also expected to boost transparency and traceability in agriculture through blockchain technology, reducing fraud and empowering consumers to make informed choices. Emphasis on integrating Internet of Things (IoT) devices for precision farming is foreseen, allowing real-time data collection on soil health, weather conditions, and crop growth. 

Budget 2024 Live: Amid ongoing positive changes in the nation, there is a clear challenge in effectively sharing government plans, project specifics, budgets, and grants at the local level, said Purohit. Despite notable attempts, getting essential details about funding opportunities, especially startup grants mentioned in the yearly financial budget, remains a challenge for those aiming to benefit from these initiatives for their development, he added.

Budget 2024 Live: Expectations are high for the upcoming budget, especially following recent media coverage on travel and tourism, feels Banka. It is anticipated that the forthcoming budget will focus on introducing new destinations, establishing additional tourist hubs, and increasing their global prominence. There is widespread anticipation for a strategic redistribution of tourism across various regions, promoting inclusivity and exploration beyond traditional hotspots, he added. Alongside creating a conducive environment for new entrepreneurs and SMEs in the tourism sector, there is also hope for a concerted effort to enhance indirect support mechanisms. This involves investments in transportation, connectivity, basic infrastructure, and improving remote accessibility, all aimed at catalyzing tourism growth in upcoming, offbeat locations, he said.

Budget 2024 Live: Anticipating advancements in regulatory frameworks, Vir is awaiting measures that will not only boost investor attraction in real estate but also guarantee investor safety, standard disclosure practices, and an effective redressal system. The integration of technology into consumer and enterprise practices, guided by regulations, is expected to unlock local capital for real estate development, contributing to India’s real estate growth potential, he said.

Union Finance Minister Nirmala Sitharaman is poised to equal the record of former Prime Minister Morarji Desai by unveiling her sixth consecutive budget on February 1. Since July 2019, Sitharaman, the country’s first full-time woman finance minister, has introduced five complete budgets. The upcoming interim budget presentation will elevate her beyond the five-budget streak of her predecessors, including Manmohan Singh, Arun Jaitley, P Chidambaram, and Yashwant Sinha. Morarji Desai, during his tenure as finance minister, presented five annual budgets and one interim budget from 1959 to 1964. His total of 10 budgets remains the highest by any finance minister.

Yadav expects an ongoing positive path, concentrating on policies promoting sector growth and enhancing investor appeal. Imagining rules that support investor involvement and broaden real estate investments to more people will add to a lively and inclusive landscape. He said he firmly supports speeding up the Digital India Land Records Modernization Program (DILRMP), aiming for 100% digitization of land and property records to drive the sector’s long-term growth.

Kotnis believes that there exists a need for regulatory policies to safeguard consumers, simplify sales and distribution, and centralize property records. For this, each residential unit must possess a distinct RERA ID linked to the project, and all transactions concerning the unit should be centrally registered on the blockchain, he feels. This includes processes from booking to registrations and collection against property units. The adoption of digitization can enhance consumer protection, cut costs, and lower overall marketing expenses for developers by facilitating seamless sharing, discovery, and transactions of inventory, he added.

As per Agarwal, the short-term movement of the stock market is uncertain, akin to a coin flip. It is recommended to identify opportunities in strong businesses with reasonable valuations. The individual holds the view that the government’s focus is likely to grow in railways, roadways, and housing, she notes. According to her, investing in India continues to be attractive. Capitalizing on the positive sentiment in financial services and pharma & healthcare, WhiteOak AMC has introduced a scheme in each of these sectors. She emphasizes that large caps, as a category, have gained increased attractiveness.

Shetye feels that guardrails are needed to ensure growth in the real estate sector, focusing on two vital aspects. Firstly, safeguarding consumers and improving their experience in discovering, purchasing, and using real estate. Secondly, enhancing the efficiency of real estate businesses, including developers and distributors, to scale up acquisition, construction, and monetization, he said. The adoption of technology through policies in rental real estate, property transactions, and real estate investment and financing can propel India PropTech from 1.0 to 3.0. This move will expedite the use of LLM, Generative AI, Blockchain, and AR/VR, ultimately benefiting both consumers and enterprises, he added.

Deora believes that the integration of technology among all involved parties, such as investors, developers, service providers, and consumers, is unavoidable. Policymakers have started making changes in four main areas: digitizing land records and real estate transactions, regulating and licensing service providers, reforming the Rent Control Act, and overseeing real estate development to safeguard consumers and instil confidence in lenders and investors. We believe that leaders and policymakers will hasten the progress and execution of these reforms across various sectors, he said.

The country is witnessing increased demand for rental housing and co-living due to rapid urbanization and shifting consumption patterns among millennials and Gen-Z, according to Jagdeva. To boost convenience and trust for landlords, tenants, and NRI/NRO owners, there is a need for policy measures such as implementing digital rental agreements, simplifying rent payments, digital KYC for police verification, and enabling digital registrations, he notes. The sector is projected to reach a size of $14 billion by 2030, requiring substantial efforts from all stakeholders for its institutionalization.

Madhu Pandit Dasa, Chairman of the Akshaya Patra Foundation, has proposed improvements to the Mid-Day Meal Programme in the forthcoming budget. Dasa suggests expanding the meal scheme to incorporate breakfast alongside the current lunch offerings. This extension could significantly aid children by providing essential energy and nutrition to kickstart their day. Furthermore, Dasa recommends broadening the programme’s reach to include students in higher grades, specifically 9th and 10th. The suggestion also involves the government facilitating the provision of millet through the Food Corporation of India at subsidised rates.

NIIT Group Chairman and co-founder Rajendra S Pawar looks ahead to the upcoming budget, expecting alignment with the National Education Policy 2020. Pawar stressed the need for a substantial increase in the budget for education, emphasizing the importance of raising the allocation from 2.9% to 6% of the GDP. This increase is crucial for the policy to fulfil its potential and achieve national objectives towards global leadership.

Ujjwal Singh, CEO of Infinity Learn, highlighted the responsibility of India’s youth in achieving Viksit Bharat 2047. He emphasized the imperative to bridge the digital divide and proposed fortifying the digital infrastructure of educational institutions nationwide. Singh’s plea included substantial support for making education accessible and inclusive, seeking tax exemptions, lowered GST rates, and reduced, subsidized interest rates on educational loans to narrow the educational gap and foster optimal growth and development within the education sector.

UNIVO Education CEO Siddharth Banerjee highlighted the significance of online education, expressing optimism that the government will consider tax exemptions and lower GST rates to address the skill gap. He also anticipates support for reduced interest rates on educational loans. According to Banerjee, online higher education in India reaches various socio-economic groups and cities, including metro and tier 2-3-4 cities.

Dr Dhruv Galgotia, CEO of Galgotias University, expressed anticipation for a budget that not only prioritizes education but aligns seamlessly with the ambitious Viksit Bharat vision. He emphasized the crucial need for a budget that integrates AI and technology into education.

In the view of experts, the education budget should give priority to integrating AI and technology, bridging the digital divide, providing tax exemptions, lowering GST rates, and offering reduced interest rates on educational loans. In the financial year 2023-24, the education sector received its highest-ever allocation of ₹1.12 lakh crore, compared to the ₹1.04 lakh crore budget allocation in FY 2022-23. The FY 2023-24 budget included ₹68,804 crore for school education, ₹44,094.62 crore for higher education and ₹37,453 crore for the Samagra Shiksha Abhiyan.

President Droupadi Murmu, in her address on Wednesday, set the stage for the upcoming budget presentation, highlighting the government’s priorities resting on four key pillars: youth power, women power, farmers, and the poor. The President emphasized ongoing efforts to strengthen women’s roles in various sectors – water, land, sky, and space, while also enhancing women’s economic participation. She also highlighted the government’s focus on making farming more profitable, aiming to reduce farming costs while increasing profits. Additionally, she hinted at a grand vision in progress, with the government formulating strategies to transform India into a developed nation by 2047.

Investors are advised to prepare for the upcoming budget by investing in sectors such as capital goods, industrials, and infrastructure, said Roy, adding that these areas are anticipated to gain from the Union Budget, with the government likely to focus on increasing capital expenditure to foster the growth of the industrial and infrastructure sectors. The expansion and extension of PLI programs to include more sectors are expected, aiming to bolster the manufacturing industry, thereby benefiting the manufacturing sector, Roy said.

In January, Indian indices faced a negative trend, experiencing a loss of about half a percent. This decline was influenced by mixed global cues and market volatility in anticipation of the budget. Experts anticipate no immediate market reaction to the budget announcement. The market response in the coming weeks is expected to be a blend of the budget announcement and the Federal Reserve policy meeting on January 31.

The upcoming budget is expected to concentrate on capital expenditure, promoting manufacturing, and maintaining macro stability. The government’s main focus remains on fostering economic growth through higher capital investment and infrastructure development. Sectors like manufacturing and renewable energy are set to receive additional stimulus.

According to Angel One, the budget day is crucial for predicting the economic outlook and influencing the equity markets. Anticipated for future projections and national planning, the Indian equity markets have surged by over 20 percent since last year’s budget, reflecting positive developments, it noted. Favorable domestic and global factors sustained the upward trend, resulting in new market highs.

Technically, the benchmark index has shown a notable move this financial year, aligning with the ongoing trend. The daily time frame illustrates a pattern of higher highs and higher lows, indicating a bullish market with occasional corrections. Immediate support lies in the 21,200-21,000 zone, and a drop below may lead to a 500-600 point correction. In such cases, it advises investors/traders to consider quality propositions.

On the upside, the 22,000 mark poses an intermediate hurdle before the Nifty index reaches its high of 22,125, continuing its upward trajectory. The prevailing market sentiment favours the Bulls of D-Street, and dips are seen as opportunities. However, a cautious approach is recommended after recent achievements, with traders focusing on themes set for outperformance, it added.

Interim Budget 2024-2025 is scheduled to be tabled on February 1 by FM Nirmala Sitharaman and is expected to commence at 11 am.

You can watch FM Sitharaman’s Budget speech live on the official channel of Parliament Sansad TV and Doordarshan. The live Budget 2023 telecast will also be available on their respective YouTube channels. Besides these, PIB India will also broadcast the Budget speech on their YouTube channel and on Twitter, 

You can access the Budget 2024 documents in a “paperless form” through the Union Budget Mobile App. All essential Budget documents, including the Annual Financial Statement, Demand for Grants, and the Finance Bill as mandated by the Constitution, will be accessible on the app.

“During the budget, a critical analysis of pre-rally trends becomes imperative, serving as a reliable indicator for potential market movements. While there are inherent uncertainties, there is also a 70 percent likelihood of positive outcomes, underscoring the need for vigilance and strategic decision-making on budget day.”

“We anticipate that the Interim Budget 2024 might not bring significant shifts in the stock market or investor portfolios, but it’s crucial to closely analyze any key announcements for their market impact. This year, market dynamics are expected to be shaped by political and economic factors, with a clear focus on capital expenditure rather than short-term populist measures. This continuation of last year’s strategy, emphasizing long-term infrastructural investment, reflects a commitment to sustainable economic growth. Understanding this government approach is vital for investors as they navigate the financial markets in the upcoming year.”

“The Budget will emphasise an inclusive and prosperous policy push in the context of incremental progressive steps in the roadmap over the next 20-plus years toward India@100 (a century since independence). In an election year, the government usually tables the vote-on-account or the Interim Budget. A vote-on-account seeks approvals for essential expenditure outlays until the polls, while the interim Budget broadly includes an assessment of the current state of the economy, current/capex expenditures, and receipts, as well as revised estimates of the current financial year and estimates for the year ahead. Taking a leaf off the pre-election 2019 Budget, we expect this interim edition to propose modest pro-demand steps to address near-term risks.”

A research note from the Bank of Baroda said that with the 2024-25 Budget being an interim one, the government will focus on maintaining continuity of policies while committing itself to the path of fiscal consolidation. “In the wake of weak monsoon, and subdued Rabi sowing, the Budget will focus on steering rural growth. For this, enhanced spending on MGNREGA, PM KISAN, and PMAY can be expected. Driving investment growth will be another focus area for the government. We thus expect ₹1.5-2 lakh crore incremental increase in capex for the next year.”

“Given the priority that is likely to be given for fiscal consolidation in the upcoming Budget, we don’t expect any significant fiscal stimulus in it. However, the government may continue to earmark a significant quantum for capital expenditure with a growth of 15 percent in its budgetary allocation; the latter will continue to be a primary driver of the domestic economy over the medium term. The government may also enhance the subsidy allocation for some segments like farmers, women, informal sector workers and unemployed youth to strengthen domestic private consumption, which is estimated to show a weak growth of 4.4 percent in FY24. Given the need to sustain public investments and also support certain social segments through subsidies or budgetary relief, the targeted reduction of fiscal deficit from 5.9 percent to 5.3 percent will pose a material challenge for the finance ministry, necessitating a significant step-up in non-tax revenues like PSU disinvestments.”

Finance Minister Nirmala Sitharaman is set to unveil the last Budget of the Modi 2.0 government before the upcoming general elections on Thursday. The budget is anticipated to include a combination of economic measures, particularly targeting key voter segments such as farmers and women. In her sixth consecutive budget, Sitharaman is expected to highlight the achievements of the Modi government over the past decade and outline future plans for the country without veering from fiscal responsibility.

With recent electoral victories in three states reducing the pressure for populist measures, the focus is likely to be on prudent fiscal policies. Special attention is expected to be given to sectors like agriculture and the overall economy, aiming to generate employment and stimulate consumption. 

While an interim budget traditionally avoids major policy announcements due to the impending Model Code of Conduct, past instances, like the 2019 interim budget’s announcement of cash assistance for farmers, suggest that governments may still make significant announcements during this period.

On the first day of the budget session, President Draupadi Murmu outlined that the priorities of the government would rest on four key pillers-youth, power, women power, farmers and poor. These pillars will be the key focus of the government in the interim Budget to be presented today by Finance Minister Nirmala Sitharaman.