Budget 2024: Fueling India's Economy
Created on 03 Feb 2024
Wraps up in 4 Min
Read by 527 people
Updated on 05 Feb 2024
The 5th largest economy in the world has got its trade game on fire🔥: Exporting ₹46,795 crore worth of goods while bringing in ₹52,722 crore in imports.
The Indian economy is crushing it right now, and it's got us feeling pretty stoked as India is all set to become the third-largest economy by 2030!
The government's "sabka saath, sabka vikas" approach is seriously paying off, with some significant changes going down over the past decade.
We have all the latest news for you, including the government's budget allocations and some fantastic initiatives. Think game-changing infrastructure projects, revolutionary green energy and bio-manufacturing advancements, and more.
Before starting and jumping into the sector, look at the budget profile in the image below👇. And for those who don't know what a budget profile is, in simple terms, it is like a snapshot or summary of how much money a government or organisation plans to spend and earn over a certain period, usually a year.
It shows where the money is expected to come from (like taxes or fees) and where it's planned to go (like on schools, roads, or healthcare). The budget profile helps everyone understand how the money will be managed and the financial goals for that time frame.
Let's start with the infrastructure development.
Infrastructure Upgrade for a better Future
For the next year, the government has decided to increase the outlay by 11.1%, bringing it to an impressive ₹11,11,111 crore, equivalent to 3.4% of the GDP.
In the last four years, we've seen a remarkable rise in capital expenditure outlay, leading to a substantial multiplier effect on economic growth and job opportunities. Take a moment to review the graph below to gain a clear understanding of the trend.
Three major economic railway corridor programmes will be implemented. These are:
- Energy, mineral and cement corridors
- Port connectivity corridors
- High-traffic density corridors
Several projects have been identified as part of the PM Gati Shakti initiative to improve the country's transportation system. These projects include multi-modal connectivity, which can help reduce logistics costs and improve efficiency.
They will also reduce traffic on busy roads, making it safer for passenger trains to operate, resulting in faster travel speeds and greater safety for passengers.
The three economic corridor programs will also help to increase GDP growth and reduce logistic costs.
Additionally, 40,000 normal rail bogies will be upgraded to Vande Bharat standards, enhancing passenger comfort, convenience and safety.
Metro and NaMo Bharat
The country is experiencing a rapid increase in middle class and urbanisation. Metro Rail and NaMo Bharat can help bring about the necessary urban transformation.
The goal is to improve transit-oriented development in larger cities.
Aviation Sector: Taking Flight to Success
Over the past decade, the aviation industry in India has seen significant growth.
The number of airports has doubled to 149, and air connectivity to tier-two and tier-three cities has expanded under the UDAN scheme.
There are currently 517 new routes carrying 1.3 crore passengers.
Indian carriers have ordered over 1,000 new aircraft, and both existing airports and new airport development will continue to grow quickly.
Green Energy: Powering a Sustainable Future
To achieve India’s goal of net-zero emissions by 2070, the government will carry out the following actions:
- Funding the development of offshore wind energy, which will produce one gigawatt of energy.
- Establish a coal gasification and liquefaction capacity of 100 MT by 2030. This will reduce the need for natural gas, methanol, and ammonia imports.
- They will require that Compressed Biogas (CBG) be blended with Compressed Natural Gas (CNG) for transportation and Piped Natural Gas (PNG) for domestic use.
- Financial assistance for the purchase of biomass aggregation machinery will be provided to support collection.
The government believes that by following these steps, they will be able to meet their commitment.
Electric Vehicle Ecosystem: Driving Towards Cleaner Roads
Our government plans to improve the e-vehicle ecosystem by supporting the manufacturing and charging infrastructure.
The government will implement a payment security mechanism to encourage the use of e-buses in public transport networks.
Comprehensive Development of Tourist Centres
India has successfully organised G20 meetings in 60 different locations, showcasing the country's diversity to a global audience.
Our strong economy has made India an attractive destination for business and conference tourism.
Additionally, our growing middle class has shown an interest in travel and exploration. Local entrepreneurship opportunities are abundant in tourism, including spiritual tourism.
States will be encouraged to comprehensively develop iconic tourist centres and brands and market them on a global scale.
A framework for rating the centres based on the quality of facilities and services will also be established. To finance such development, long-term interest-free loans will be provided to states.
The government is taking steps to boost domestic tourism in India by developing port connectivity, tourism infrastructure, and amenities on our beautiful islands, including Lakshadweep islands (this deserves a special mention, you know what I mean? 🤫)
This initiative will generate employment opportunities.
The Bottom Line
India is making significant investments and strategic moves that boost its economy and create opportunities for investors. The Interim Budget for 2024 shows that the country is taking bold steps towards a sustainable future of growth and prosperity.
Everyone needs to understand how these plans will affect them. We should be hopeful and work together towards a brighter future for our country. Let's keep an eye on these developments and stay informed.
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