Government Breaks new ground with corpus of Rs one lakh crore corpus for frontier research and sunshine industries besides giving a boost to middle class with affordable loans for buying homes of their own and promoting green technologies
From TN Ashok
New Delhi, Feb 02 : The BJP led NDA government led by Prime Minister Narendra Modi broke new ground by tuning itself with global trends announcing investments in three different sectors – creation of Rs one lakh crore corpus for frontier research in technology and sunshine industries, allocations for the middle class living in rented homes to buy their own, and solar panels for over one crore households with a ryder of 300 units of free electricity.
All three reflect the global trends : As most countries of the world led by the US are investing heavily in billions in making super-duper semiconductors the size of a human hair that can work 25,000 times faster and store as much information in a chip to power Artificial Intelligence that can revolutionise health care, legal aid, government functioning, and several other frontiers benefitting people. Companies such as Alphabet, Tesla, Apple, Nvidia, Microsoft, …. Often called the FAANG or Magnificent 7 are pouring billions and their stocks are booming in the global markets.
India, like these companies, hopes to devote research to develop super chips in Artificial Intelligence on its own instead of depending on China which the companies in the US are making concerted efforts to break.
While detractors may call it a “ election budget “, the Finance Minister Nirmala Sitharaman budget does a lot for enterprising entrepreneurs for investments in sunshine industries making available funds for 50 years without interest. “For our tech savvy youth, this will be a golden era.”, she said while obviously referring to research and development of new technologies of semiconductors and AI generated tools.
The government has announced Rs 1 lakh crore corpus to bolster research and innovation. The corpus worth Rs 1 lakh crore will be established with a fifty-year interest free loan.
The Modi government’s focus towards technology is clearly evidenced by government efforts since 2014 . From initiatives such as Digital India to Digital Public Infrastructure, India is evolving as a digital economy. And during today’s Budget Speech, Finance Minister Nirmala Sitharaman said, “For our tech savvy youth, this will be a golden era.”
Industry leaders from the FICCI and CII virtually gave a 10 out of 10 for Modi’s budget as they said the Finance Minister was on the right track focusing on the crucial role played by Digital Public Infrastructure in fostering inclusive development centered around the people. There has been a substantial increase in budget allocation for Research and Development (R&D) in IT/Electronics, Cybersecurity, and e-Governance, marking a positive stride towards realizing the vision of Digital India.
Over Rs 1500 Crore have been earmarked in the budget for the third phase of e-court development, a move expected to revolutionize the delivery of justice, making it more efficient and accessible to the common man,” says Devroop Dhar, Co-Founder & MD, Primus Partners.
With this announcement, the government has announced a corpus of Rs 1 lakh crore that will be established with a fifty-year interest free loan. This corpus will provide long-term financing or refinancing with long tenors and low or nil interest rates. “This will encourage the private sector to scale up research and innovation significantly in sunrise domains. We need to have programmes that combine the powers of our youth and technology,” added Nirmala Sitharaman.
In addition, a new scheme will be launched for strengthening deep-tech technologies for defence purposes and expediting ‘atmanirbharta’. The corpus is being looked upon as a measure that will empower private sectors to lead innovation. Eswara Rao Nandam, Founding President of Polymatech Electronics says, “the Finance Minister’s visionary approach in allocating a substantial ₹1 lakh crore for long-term interest-free loans aimed at fostering innovation. As a semiconductor chip manufacturer, we acknowledge the pivotal role of innovation in our industry.”
Other highlights of the budget: Ms Sitharaman said a white paper would be placed on the table of parliament shortly describing steps taken by the Modi government towards fiscal consolidation, public expenditure, and stepped up investments on infrastructure.
The government hopes to achieve a GDP growth rate of 7.3% in fiscal 2025-26, and rein in the Fiscal Deficit (the difference between government borrowing and government expenditure) at 4.8% of the GDP by FY 25/26 from the current 5.8% or so.
Capital expenditure is projected at over Rs 1,11,111, 111 crore which would be a substantial part of the GDP and 11.12 step up from previous outlays.
Budget 2024: Industry leaders ‘happy’ with Modi govt’s ‘prudent’ budget. Not only an Interim Budget, but an inclusive, innovative Budget said , PM Modi: Prime Minister Narendra Modi said the Interim Budget 2024 targets boosting capital expenditure in a big way while keeping fiscal deficit under control. He said this Budget is a guarantee for strengthening the foundation for making a developed India by 2047. “It has confidence of continuity, it will empower youth, poor, women and farmers, the four pillars of ‘developed India’. It is not only an Interim Budget; it is also inclusive and innovative Budget.” Budget 2024:
Finance Minister Nirmala Sitharaman’s interim budget presentation on Thursday has swayed the sentiments of industry leaders, who said they are happy with the government’s position on the financial roadmap of India ahead.
Reacting to the pre-election Budget, Confederation of Indian Industry (CII) Director General Chandrajit Banerjee called it a “very prudent budget,” which lays the path for the country’s strong foundation. Follow the full coverage of Budget 2024. Sanjiv Puri, the Managing Director of ITC, also hailed Sitharaman’s short speech as a “great budget.”
Meanwhile, CII president R Dinesh called the government’s fiscal deficit target of 5.1 per cent a “significant step.” “Our recommendation initially was 5.4 per cent but, 5.1 per cent is obviously a very significant step forward,” he said.
Meanwhile, Sanjay Kumar, partner at Deloitte Consulting, noted that future budgets should have more emphasis on subjects like technology adoption and digital agriculture. “We should see more emphasis on technology adoption, MSMEs, women and youth participation, and digital agriculture. All these things will make us ‘Viksit Bharat’,” he noted.
Mr. Sundararaman Ramamurthy, MD & CEO BSE, said, “…Finance Minister has once again delivered a responsible, innovative and inclusive budget. This budget lays emphasis on Fiscal products and gives room for private capital investment…the FM once again lays on the foundation for a very strong path for India with due focus on areas of national importance.”
Among key announcements, she proposed tax benefits to startups and pension funds, 50-year interest-free loans of Rs 75,000 cr to be extended for states, tourism development measures, the launch of Blue Economy 2.0, further support for the Electric Vehicle ecosystem and green energy, and railway corridors, among other measures. She also proposed to raise the capex target by 11.1 per cent to Rs 11.11 trillion.
Arunachal Pradesh Chief Minister Pema Khandu hailed the interim budget, saying it reiterates the collective resolve to maintain the pace of all-round inclusive growth in a seamless manner.
Accountability and vision are missing from this interim Budget: Kharge. Congress president Mallikarjun Kharge said the finance minister has said that they will present a white paper on the previous government. “In this context, we ask the Modi Government, how many of the promises made by the government in the last 10 years have been fulfilled,” he said, adding only big dreams have been shown to people, schemes relaunched by changing names, but what happened to old promises has not been told.
We welcome the White Paper: Chidambaram: Former Finance Minister P. Chidambaram said, “We welcome the White Paper and will respond to it when it comes”.
Budget the biggest lie of 2024: Jitu Patwari: Madhya Pradesh Congress president Jitu Patwari said the “biggest lie of 2024 by the BJP” in the Interim Budget was that 25 crore people are out of poverty and 80 crore citizens are getting free ration.
JD(S) leader H. D. Kumaraswamy praised the Interim Budget presented by Union Finance Minister Nirmala Sitharaman as pro-people, pro-development and progressive. He said it is indicative of the programmes that could figure in the full-scale Budget, which will be presented after the Lok Sabha polls, and highlighted the allocations made in the Interim Budget particularly with regard to agriculture.
Budget reveals grim situation, poor becoming poorer: CPI(M): The Interim Budget reveals the “grim” economic situation confronting India’s working people and the government’s idea of development is making the rich richer and the poor poorer, the CPI(M) alleged.
In a statement, the Left party said while the actual Budget for 2024-25 will be the responsibility of the new government and Parliament to be formed after the 2024 general elections, the revised figures for 2023-24 reveal that expenditure in social sectors has “gone down”. “This will impact future growth,” the Communist Party of India (Marxist) said.
Budget “exposed anti-people face” of Modi government: Kamal Nath
Former Madhya Pradesh CM Kamal Nath criticised the Interim Budget 2024 and said it has “exposed the anti-people face” of the Modi government. “We were hopeful that the Finance Minister would inform us about the target of the Prime Minister to provide two crore jobs every year and accordingly whether the aim of giving 20 crore employment (in ten years) during the period has been achieved or not,” Mr. Nath asked. The middle class was expecting relief concerning the tax slabs but nothing happened.
People rejected this Budget: DMK MP Dayanidhi Maran: On the Interim Budget 2024, DMK MP Dayanidhi Maran said Finance Minister Nirmala Sitharaman took a long time to hail praises but delivery was zero.”They are going to present a white paper on the previous government. Nothing much has happened in the last 10 years. The people of the country are already disappointed. Moreover, you realise that performance incentives are given to the bridge companies, and not going to the deserving ones. People rejected this Budget,” he said.
Budget is hollow: Harsimrat Kaur Badal: Shiromani Akali Dal MP Harsimrat Kaur Badal slammed the BJP and said that the Interim Budget 2024 was hollow. “There was nothing for the youth, women, farmers. I saw arrogance when they said that they would present the Budget in July. You cannot take any election for granted,” she said.
Nothing but to woo people in Lok Sabha election: Adhir Ranjan Chowdhury: After the announcement of the Interim Budget 2024-25 today, Congress MP Adhir Ranjan Chowdhury said that it is nothing but to woo people in this year’s Lok Sabha elections.
“Is this a Budget to provide employment to the unemployed? This Budget is nothing but to woo people in this year’s Lok Sabha elections. Our country has fallen far down in the list of starvation; will this Budget help us get out of it?” he said.
Budget focussed on poor, women, youth and farmers: Madhya Pradesh CM Mohan Yadav
Madhya Pradesh Chief Minister Mohan Yadav has said that the Interim Budget presented by Union Finance Minister Nirmala Sitharaman is focussed on the poor, women, youth and farmers. “Under the leadership of PM Modi, all Departments are making efforts to take the country forward. The Interim Budget was presented today and it is focussed on the poor, women, youth and farmers. This Budget has highlighted PM Modi’s pledge for the welfare of these categories,” CM Yadav said. – ANI
Sounded like election speech: Sachin Pilot: Terming Finance Minister Nirmala Sitharaman’s Interim Budget speech an “election speech”, Congress leader Sachin Pilot said there was nothing new in the Budget speech and no measures were announced to provide relief to the common masses “who are facing the brunt of rising inflation”.
Budget is a “Vision of Viksit Bharat”: Yogi Adityanath: Uttar Pradesh Chief Minister Yogi Adityanath described the Interim Budget as a “vision of Viksit Bharat”, which would serve as a roadmap for making India the “growth engine of the world”.
BJP government’s farewell Budget: Akhilesh Yadav: Samajwadi Party president Akhilesh Yadav called the Interim Budget presented by the BJP government a “farewell Budget”.
“The BJP government has created a shameful record by completing a decade of anti-people Budgets, which will never break because now the time has come for a positive government to be formed. “This is BJP’s farewell budget,” he wrote on X. “Goa Aam Aadmi Party (AAP) chief Amit Palekar said the Union Budget was nothing more than an “election speech.” Finance Minister Nirmala Sitharaman spoke about rising foreign investment but did not utter a word about the falling Rupee vis-a-vis the U.S. dollar,” he said, reacting to the Interim Budget.
“It was more like a popular speech. It is like an election speech. There is nothing concrete. The Budget did not offer anything to the middle- and lower-income groups and gave no hope to the industries either, Mr. Palekar claimed.
