Budget Reaction 2024-25: Subahoo Chordia, Head - Real Assets Strategy, Edelweiss Alternatives

23 Jul 2024 , 04:35 PM

The government has maintained its allocation towards the infrastructure sector at INR 11+ lakh crores (i.e. 3.4% of GDP) and an additional interest-free loan of INR 1.5 lakh crores to States will be a booster for the infrastructure segment. The budget has lent further emphasis to multiple infrastructure segments towards the development of roads, airports etc. Further, industrial parks, to service 100+ cities and the development of 12 specific industrial parks under national schemes is envisaged.

The Government has lent further weight to its fight against climate change. The fiscal incentives for rooftop solar and pumped storage will enhance energy security and availability. Further indirect tax incentives towards renewable energy items and critical minerals such as lithium, and copper bode well for the segment.

Overall the budget maintains its focus on long-term growth and sustainability and is positive towards infrastructure segments.