Finance Minister Nirmala Sitharaman
The 2024 Interim budget is based on the robust framework of “Viksit Bharat by 2047.” Driving this growth are the four key pillars - youth, power, women, and farmers. With a vision of creating opportunities for all, the government has implemented several initiatives that enable a smooth roadmap for ‘Amrit Kaal.’
The government remains committed to its resolve of bringing the fiscal deficit below 4.5% of GDP by FY26. By that, the fiscal deficit target for FY25 has been set at 5.1%, while that for FY24 has been revised down from 5.9% to 5.8%. A lower fiscal deficit is a precursor to ensuring financial stability and facilitating adequate liquidity for the private sector. At a time when private capex is expected to revive, the government’s commitment to cut its expenses will bode well for the cost of borrowing from the private sector.
A lower revenue gap will also help strengthen India’s sovereign rating, which is currently at the lowest investment grade of BBB. A positive outlook and perhaps a rating upgrade at this juncture will give a significant boost to India’s growth potential, as it will unleash a stronger inflow of foreign capital.
The government’s initiatives to boost the development of MSMEs and enhance their global competitiveness are commendable. By facilitating increased access to finance, relevant technology as well as training along with the establishment of a supportive regulatory framework, the government’s policies reflect positive strides.
NBFCs can play an integral role in extending loans to MSMEs owing to their prowess in the efficient delivery of credit to the smallest and remotest businesses. Technological interventions like India Stack, coupled with the expertise of NBFCs across segments not considered viable by banks, will enable not only higher but better-quality financial inclusion. This approach will enable a more robust and inclusive landscape for MSMEs, enabling them to create more jobs and help India’s assimilation with global supply chains.
At the core of this interim budget lies a commitment to inclusive development and the improvement of people’s well-being. The government is supporting states in expediting the development of aspirational districts and blocks, fostering abundant opportunities.
Piramal Foundation’s vision aligns with government objectives, and our Aspirational Bharat Collaborative initiative signifies a renewed dedication. This initiative focuses on partnering with District Administrations to enable Last Mile Convergence and promote Hyper-Local Collaboration. With 1,100 team members deployed across 227 Aspirational Blocks in 150 districts, we play an active role in the nation’s advancement. We also applaud the government’s commitment to encouraging the youth of the country, demonstrated by initiatives like the Skill India Mission and the provision of 50–year interest-free loans for technological advancements among the tech-savvy.
Our collective efforts align with this vision, recognizing the government’s emphasis on skilling the youth as a pivotal step towards nurturing talent and building a dynamic workforce. In tandem with these national initiatives, our focus on youth development is reflected in programs such as the Gandhi Fellowship and Karuna Fellowship, which channel the power of young change agents.
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This budget lays the groundwork for increased momentum by introducing forward-looking measures across key development sectors like infrastructure, MSMEs, finance, agriculture, and energy. These steps affirm the commitment to shaping an inclusive future for everyone.
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