The interim budget 2024 seems to be a pragmatic one, as it clearly focuses on transformational shifts in the agriculture sector which include areas on productivity improvement and value addition, sustainable agriculture, reduction of import dependence, fast-tracking development in allied sectors such as dairy and fisheries and rural employment through creation of micro enterprises. Encouraging Public Private Partnerships (PPP) is expected not only to infuse investments in the sector but also bring in the much-needed expertise in enabling a large majority of farmers who are small and marginal in moving up the value chain. Increased allocation towards PM-Formalization of Micro Food Processing Enterprises Scheme and focus on Aspirational Districts Programme is expected to give a boost to rural job creation opportunities which in turn can boost rural demand. The Atma Nirbhar Oilseeds Abhiyan is expected to bring down the dependence on imports of edible oil by focusing on improving yields in states which have high acreage but lower productivity, increasing acreage in non-traditional areas, developing new varieties , resource efficiency, providing timely inputs and training to farmers. Given the changing dietary patterns and income generation potential, increased outlay for dairy and fisheries sector (Blue Revolution and PM- Matsaya Sampada Yojana) is expected to not only meet the increased demand for nutrition in domestic markets, but also give a boost to the exports from the country. Setting up of the integrated aquaparks will help in infrastructure upgradation and enhancing aquaculture productivity which will positively impact the livelihoods of millions of fishers/ fish farmers.

In recent years, the start-up ecosystem in India has expanded rapidly to emerge as a major driver of economic growth. The finance minister's proposal to extend the tax holiday by another year is bound to accelerate the progress and give impetus to new entrepreneurial pool. Start-ups and investments made by sovereign wealth funds/pension funds, certain IFSC units will get a tax break for one more year thereby leading to increasing in foreign capital inflows in India.

Customs has seen a significant transformation with more efficient clearances and digitalisation. This has drastically reduced import release time by 47% at Inland Container Depots (ICD), by 28% at air cargo complexes and by 27% at seaports, over the last four years since 2019, when the National Time Release Studies were first started. This facilitates international trade and is a step closer to ease of doing business (EODB).

Investment under the Foreign Direct Investment (FDI) route is growing year on year. With a view of providing further impetus to the foreign investment, the Indian government is negotiating bilateral treaties with various nations in the spirit of ‘first develop India’ to increase the investment inflows. This will not only create investment opportunities for the foreign investors, but also boost the Indian economy.

The government has continued its support to farmers under the crop insurance facility and intends to further strengthen the same. Crop insurance was given to almost 4 crores farmers and it continues to be a pillar of support for the ‘annadata’ i.e. the farmers as quoted by the Hon’ble Finance Minister in her Budget Speech. The crop insurance will also play a crucial role in the Atmanirbhar Oil Seeds Abhiyan announced by the Finance Minister. These initiatives will ensure penetration and awareness about insurance in rural India thereby providing a boost to the insurance industry.

Focus on rate rationalisation and simplifying the compliances coupled with steady growth have helped in the growth of taxpayers and tax collection. There was a pressing need to extend the timeline of 31 March 2024 providing beneficial rate of 15% corporate tax rate for new manufacturing companies, which has not been announced.

“In a move towards promoting a shift to Electric Vehicles (EV), the focus on expanding the EV charging network continues. This will also increase opportunities for a large number of small vendors for manufacturing, installation and maintenance of EV charging networks.”

Expansion of existing airports and development of new airports along with extension of UDAAN scheme for regional connectivity would remain an area of key focus aiding tourism and development

IFSCA positioned as a hub for global capital participation. Recent permission for direct listing by Indian companies is a step in this direction.

Considering this is an Interim Budget, no changes are proposed in the personal tax rates. Individual taxpayers need to continue analysing the effective tax regime selection i.e. old vs. new tax regime. Since rationalisation and reduction of personal tax rates have happened in the recent Finance Budgets, no changes are proposed in the Interim Finance Budget 2024. The FinMin has hailed several measures taken by the Government over the recent years to improve taxpayer services. This included simplification and pre-filled ITR forms, updated tax returns, access to Form 26AS and other information, faster processing of tax returns to average 10 days enabling quicker tax refund credits, faceless assessments, etc. These have improved the overall approach and experience of taxpayers. The Finance Minister’s proposal to improve taxpayer services included waiving-off outdated outstanding direct tax demands. This is a welcome move as several individual taxpayers received notices for petty outstanding demands or their refunds were stuck for demand adjustments. The proposal would benefit several taxpayers with demand upto INR 25,000 (for period upto FY 2009-10) and upto INR 10,000 (for period covering FY 2010-11 to FY 2014-15). The CBDT should come out with the mechanism for making such adjustments