According to the Economic Survey tabled, the Indian economy is expected to grow by 7.5% during the fiscal year 2024-25. This signifies that the economy is predicted to grow and improve by this percentage over the year.

The budget showcases the govt highest expenditure on Defence amounting to ₹  4,54,773 crore.

Key Highlights of the Budget

The Finance Minister has introduced 5 schemes totaling ₹2 lakh crore to benefit 4.1 crore youths by providing them with education and skill development opportunities. The budget for 2024-25 will mainly focus on jobs, skill development, small and medium businesses, and the middle class. More than 4 crore jobs will be created in 5 years through the following five schemes for young people. The center plans to outlay ₹1.48 lakh crore for employment, education, and skills for FY25.

Changes in Customs Duties

In the Budget 2024-25, several changes to customs duties have been proposed. The basic customs duty on mobile phones and mobile chargers will be reduced to 15%. Additionally, three more cancer treatment drugs will be exempt from customs duty.

The duty on certain brood stocks, shrimps, and fish feed is set to decrease to 5%. Customs duties on gold and silver will be lowered to 6%, and on platinum to 6.4%. The government plans not to extend customs duties on solar energy-related parts and aims to expand the list of exempted capital goods for manufacturing solar cells and panels in the country.

There will also be a reduction in customs duties for manufacturing leather and footwear. Furthermore, 25 critical minerals will be exempted from customs duties, and the basic customs duty on two of these minerals will be reduced. 

Changes in TDS, Tax Slab, and CGT

The TDS on e-commerce transactions has been reduced to 0.1%, facilitating online businesses. Additionally, the 20% TDS on repurchases by mutual funds or UTI has been withdrawn, further easing the tax implications for these financial activities. 

The Budget 2024-25 has introduced changes to long-term capital gains tax. The exemption limit has been increased to ₹1.25 lakh. However, the tax rate on long-term capital gains on all financial and non-financial assets has been raised to 12.5%. Short-term gain of financial assets to attract a 20% tax rate.

Under the new tax regime, the tax rate for income exceeding ₹15 lakh has been set at 30%. Additionally, the lowest tax slab has been raised to ₹3 lakh.  For income between ₹3 lakh and ₹7 lakh, the tax rate will be 5% (exemption limit is applicable). For income between ₹7 lakh and ₹10 lakh, the tax rate will be 10%. For income between ₹10 lakh and ₹12 lakh, the tax rate will be 15%. For income between ₹12 lakh and ₹15 lakh, the tax rate will be 20%. The new tax structure would save you up to Rs. 17,500.

Several significant tax and financial adjustments have been announced. Income from the buyback of shares will now be taxed in the hands of the recipients. 

The Security Transaction Tax (STT) on Futures and Options (F&O) has been increased to 0.02% and 0.1% respectively. The government proposes to reduce corporate tax for foreign companies to 35%. Additionally, the standard deduction for salaried employees has been raised to ₹75,000. 

Budget Updates

The government plans to finance shrimp farming and marketing, and will also enhance the production, storage, and marketing of pulses. In collaboration with states, the government will promote digital public infrastructure for agriculture.

One crore youth will be given internship opportunities at the top 500 companies, with each intern receiving a monthly allowance of ₹5,000.

The Suryaghar Yojana has been introduced to facilitate the installation of solar roofs, which will provide free electricity of up to 300 units per month.

The government will provide Rs 15,000 crore this fiscal year and in future years for the development of Amravati, aiming to facilitate and boost the city's growth and infrastructure development. 

The fiscal deficit is set at 4.5%, reflecting a balanced approach to fiscal management. The abolition of angel tax on all asset classes aims to encourage investment and innovation by removing financial barriers for startups and investors. This move could boost economic growth and attract more venture capital.

Where’s the Focus?

The budget focuses on ‘Productivity & resilience in agriculture’ that ensures food security and stabilizes rural incomes by protecting farmers against climate risks and thus ensuring sustainable growth. Secondly, the center emphasizes ‘Employment and Skilling’ which will create opportunities among youths that will foster economic development by equipping the workforce for future industries, fostering innovation and competitiveness. Budget also talked about promoting social justice by ensuring equitable access to resources and opportunities for all citizens.

The budget highlighted every sector including ‘Manufacturing & services’ that drives industrial growth catering to both domestic and global markets. FM also announced ensuring energy security that aims at providing a cheap and stable power supply for all. Investing in infrastructure projects will enhance connectivity, reduce logistics costs, and boost economic efficiency through improved services.

The center in its budget speech marked the role of innovation and research that drives economic diversification by implementing reforms. A financing pool of ₹1 lakh crore will be established to support private sector-driven research and innovation at a commercial scale. Additionally, a venture capital fund of ₹1,000 crore will be set up to advance the space economy.

Conclusion

As we have already seen, the interim budget laid a strong groundwork for a better future by focusing on renewable energy and green projects by allocating major investments to strengthen India's commitment to a sustainable economy. This budget is set up to keep the economy growing fast, assist various groups of people, and upgrade the country’s technology.

It plans to invest in projects that will improve the quality of life, support new businesses and ideas, etc. The goal is to make sure that the country stays strong and competitive, while also meeting the needs of citizens. Also, it aims to promote long-term progress by emphasizing technologies, and innovations for fair growth by focusing on all the areas and communities that gain from these advancements.