PM Modi Praises India’s 8% Growth Ahead of Union Budget 2024

22 Jul 2024 , 12:41 PM

On July 22, Prime Minister Narendra Modi took pride in India’s status as the fastest-growing major economy. Addressing the Parliament as the monsoon session began, Modi emphasized the country’s robust growth trajectory, noting, “In the last three years, we are moving ahead with a continuous growth of 8%.” This statement comes ahead of the Union Budget 2024 presentation scheduled for July 23.

Finance Minister Nirmala Sitharaman will present her seventh consecutive budget, which will shape economic policies and fiscal strategies for the coming year. Modi also stressed the importance of Parliament’s role, stating, “We must remember that Parliament is not for ‘Dal’, but for ‘Desh’!”

Economic Survey and Growth Projections

The Economic Survey, a key precursor to the Union Budget, will be tabled by Sitharaman on July 22. This document provides a detailed review of the previous fiscal year, offering insights into India’s economic performance and future outlook.

According to the World Bank’s Global Economic Prospects report released on June 11, India’s GDP is expected to grow at 6.6% in FY25, with further growth anticipated in subsequent years. The report highlights that private consumption will benefit from a recovery in agricultural production and declining inflation. Government consumption is expected to grow slowly in line with efforts to reduce current expenditure relative to GDP.

Key Budget Expectations

Ahead of the budget presentation, there are strong expectations for tax relief and other economic measures. The US India Business Council (USIBC) has proposed several recommendations for the Union Budget, including:

• Production-Linked Incentives (PLI): USIBC has recommended introducing PLI for the media and entertainment sector to enhance India’s position as a global content production hub. This would support sectors like visual effects, animation, and advanced production technologies.
• Liberalization of Satellite Communications: The council suggests easing regulations in the satellite communications industry to boost growth and technological advancement.
• Financial Services: USIBC advocates for tax parity between foreign bank branches and Indian banks, easing foreign direct investment (FDI) safeguards, and facilitating direct listings of Indian companies on international exchanges.
• Customs and Tax Policies: Recommendations include waivers on interstate transmission charges for offshore wind projects, streamlined approval processes for fuel retail outlets, and exemptions on customs duties for lifesaving medicines.