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Finance Minister Nirmala Sitharaman presented her seventh Union Budget for 2024-25 on July 23. She became the first finance minister to present seven consecutive budgets, surpassing former Prime Minister Morarji Desai's record of six from 1959-64.
Basic customs duty on gold and silver is now 6% and 6.4%, respectively. This reduction is expected to make these metals more affordable and boost the gems and jewelry industry.
Standard deductions and revised tax rates for salaried individuals under the new tax regime:
₹0-3 lakh: No tax
₹3-7 lakh: 5%
₹7-10 lakh: 10%
₹10-12 lakh: 15%
₹12-15 lakh: 20%
Above ₹15 lakh: 30%
The government's capital expenditure for FY25 is ₹11.1 lakh crore, which remains the same as in the Interim Budget, with infrastructure spending at 3.4% of GDP.
The Union Budget 2024-25 introduced significant changes to the taxation of long-term capital gains (LTCG) to promote investment and equity culture. Under the new provisions, the government has increased the holding period for assets to qualify for LTCG benefits.
For equities and equity-oriented mutual funds, the holding period has been extended from one year to two years. This move is intended to encourage longer-term investments in the stock market, thereby reducing volatility and promoting stability.
Additionally, the budget has revised the LTCG tax rates. Gains exceeding ₹1 lakh from the sale of listed securities, units of equity-oriented mutual funds, and business trusts will now be taxed at 15%, up from the previous 10%.
This rate adjustment aims to enhance revenue collection while maintaining a favorable investment climate.
Five schemes focusing on 4.1 crore youth over five years with a budget of ₹2 lakh crore.
extensive five-year internship program for one crore young people in leading corporations.
Incentives based on employment, such as a wage support of one month for new hires.
Women-specific skilling programs to increase workforce participation.
Give MSMEs and the manufacturing sector particular consideration.
Program for credit guarantee and term loans for the purchase of machinery.
Technology support package for MSMEs.
24 new branches of SIDBI will open to support MSME clusters.
For past borrowers, the Mudra loan cap was raised from ₹10 lakh to ₹20 lakh.
Financial support for higher education loans up to ₹10 lakh in domestic institutions.
Technology system integrated for the Insolvency and Bankruptcy Code (IBC).
₹2.66 lakh crore provision for rural development.
Shifting the focus of agricultural research to crops that are resilient to climate change and productiveness.
A two-year plan to teach one crore farmers how to cultivate naturally.
Industrial workers renting in a public-private partnership.
Andhra Pradesh has been granted ₹15,00,000 in special financial help.
Bihar needs new sports facilities, hospitals, and airports.
Inflation moving towards the 4% target.
India’s economic growth is described as a "shining exception."
Focus on job creation and boosting consumption, benefiting consumer goods, real estate, and auto sectors.
Agriculture: The budget focuses on enhancing agricultural productivity and sustainability. It includes initiatives to promote climate-resilient crops and introduce natural farming practices to a large number of farmers, ensuring food security and environmental sustainability.
Employment: There is a strong emphasis on job creation and skilling. The budget allocates significant funds for schemes that provide training and employment opportunities to the youth, including comprehensive internship programs and wage support for first-time employees.
Inclusive Development: The budget aims to ensure that growth benefits all sections of society. This includes specific programs for women, the youth, and marginalized communities, promoting equal opportunities and participation in the workforce.
Manufacturing and Services: Support for the manufacturing sector, especially MSMEs (Micro, Small, and Medium Enterprises), is a key priority. The budget includes measures like credit guarantee schemes, technology support, and incentives for machinery purchases to boost industrial growth.
Urban Development: The budget addresses the challenges of urbanization by promoting sustainable urban development. to raise the standard of living in cities, this entails building public transportation, housing developments, and infrastructure.
Energy: A significant focus is placed on energy security and sustainability. The budget outlines investments in renewable energy sources and initiatives to improve energy efficiency, aiming to reduce the carbon footprint and ensure a reliable energy supply.
Infrastructure: Infrastructure development is a cornerstone of the budget, with substantial allocations for the construction of roads, bridges, airports, and other essential facilities. This aims to enhance connectivity and support economic growth across the country.
Research and development (R&D) and innovation: To propel technical breakthroughs, the budget supports R&D and innovation. Investments in R&D are expected to foster a culture of innovation, leading to new products, services, and solutions that can enhance competitiveness.
Next Generation Reforms: The budget includes reforms aimed at modernizing the economy and governance. These reforms focus on improving the ease of doing business, enhancing digital infrastructure, and implementing policies that support sustainable and inclusive growth.
More than ₹3 lakh crore has been set aside for programs that assist women and girls.
Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) has been extended for a period of five years, providing benefits to nearly 80 crore individuals.
Creation of Digital Public Infrastructure (DPI) applications in the areas of corporate governance, e-commerce, credit, and law and justice.
The Union Budget 2024-25 aims to boost economic growth, create jobs, and ensure inclusive development across various sectors. By focusing on infrastructure, employment, and technology, the government aims to lead India towards a more prosperous future.
