Budget 2024: Shaping the future of India’s Economy

A significant focus has been placed on the agricultural sector, with an increase in the agricultural credit target to ₹24 lakh crore, up from the previous year’s ₹20 lakh crore. Additionally, initiatives like the digital public infrastructure for agriculture aim to support the development of agri-tech startups and enhance farmer access to information and resources.

The budget introduce a revised credit guarantee scheme for MSMEs, with an infusion of ₹9,000 crores. This initiative aims to reduce the cost of credit by about 1% and provides better access to finance for small business.

For individual tax payers the budget proposes changes in the income tax slabs under the new tax regime, offering more relief to the middle class. The highest surcharges rate on income above ₹5 Crore has been reduced to 37% to 25% resulting in a maximum marginal rate of 39%.

The budget proposes a reduction in the corporate tax rate for foreign companies from 40% to 35%. Additionally, the controversial Angel tax provision is set to be abolished, providing relief to startups and investors.

Several amendments have been made to GST laws, including the streamlining the process for availing Input Tax Credit and reducing the pre-deposit required for filling appeals. The custom duty on certain mobile phones, solar manufacturing goods and critical minerals has been reduced to boost domestic manufacturing.

The budget continues to emphasize infrastructure development, with a particular focus on green energy initiatives. This includes reducing custom duties on critical minerals used in green technologies and expanding exemptions for solar manufacturing.

These updates highlight the government’s focus on promoting economic growth, supporting MSMEs and startups and provide relief to taxpayers while pushing for green energy and infrastructure development.