The report presents a comprehensive impact analysis of the Union Budget 2024-25, which covers the overall macro-economy and around 21 major sectors with ratings assigned to them based on the likely impact of the announcements on each individual sector. This can be a useful guide for businesses and decision makers to plan their activities for the upcoming fiscal year. We sincerely hope you enjoy reading this report and find it informative and enriching. Download your copy now!
Expectations for Interim Union Budget 2024-25
Budget at a glance
Budget profile
Macroeconomic Perspective
Sectoral Impact
Expenditure of Ministries and Departments
Outlay of major schemes
Receipts & Expenditure
Key economic indicators
Dr. Arun Singh
Global Chief Economist
Dun & Bradstreet
From uplifting the underprivileged to energizing the nation's infrastructure development, the Government has outlined its vision to propel India's advancement and achieve a 'Viksit Bharat' by 2047 in this interim budget. Noteworthy positives in the budget include achieving a lower-than-targeted fiscal deficit for FY24 and setting a lower-than expected fiscal deficit target for FY25, proposing dedicated commodity corridors and port connectivity corridors, providing long-term financing at low or nil interest rates to the private sector to step up R&D in the sunrise sectors.
Achieving a reduced fiscal deficit of 5.8% in FY24 and projecting a lower than- anticipated fiscal deficit of 5.1% are positive credit outcomes for India. This showcases the country's capability to pursue a high-growth trajectory while adhering to the fiscal glide path. Despite committing to a lower fiscal deficit, the government has allocated a substantial capital expenditure of `11.1 trillion, marking a 50% increase from FY23. The enhancement of port connectivity, coupled with the establishment of dedicated commodity corridors (energy, mineral and cement), is poised to enhance manufacturing competitiveness. This strategic move aims to fulfil India's export targets and substantially reduce logistics costs.
According to a Government of India report, India successfully lowered its logistics cost to 7.8-8.9% during FY22, compared with 8.7-9.9% in 2011- 12. This aligns with the national logistics policy, aiming to bring down costs from 14% to the global best practices benchmark of 8%. Offering long-term, zero-interest financing to the private sector in sunrise sectors is expected to catalyze significant research advancements. This initiative is particularly noteworthy considering that, in FY21, India allocated 0.64% of its GDP to research and development, with the private sector contributing 36.4%.
Budget Manthan 2023: Impact Analysis | Webinar
Download Your E-Copy