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BUSINESS EYE JUNE 21, 2024 | The Indian Eye 36

All eyes on Budget 2024 preparation as

industries wait for economic blueprint

A report highlights the need for the government to increase its focus on farmers,

the rural population, urban poor, and middle class

OUR BUREAU Strategy” by Prabhudas Lilladher, a
stock broking company, highlights
New Delhi
that India’s economy is on a positive
he Modi 3.0 government is get- trajectory with a focus on infrastruc-
ting all ready to reveal its eco- ture development driving growth.
Tnomic blueprint to the nation The report noted that after the suc-
–and the world at large. This will be cessful contest in the election and
the Modi government’s first budget the formation of NDA government
after it assumed office for the third at the center, the government will
successive term. The budget is antic- continue its capital expenditure.
ipated to be tabled in Parliament in The report highlighted that the
the third week of July. government will maintain a focus on
Earlier, on February 1, Finance capex-led growth around PLI, roads,
Minister Nirmala Sitharaman pre- ports, aviation, defense, railways,
sented the interim budget for 2024- and green energy, given a 20bps low-
2025 in Parliament due to the elec- er fiscal deficit in FY24, normal mon-
tion year. soons, and a Rs 2.1 trillion dividend
The Interim Budget is present- from RBI.
ed by a government that is either in The fiscal deficit for FY24 stands
a transition period or in its last year at 5.6 per cent, providing room for
in office ahead of general elections. the government to push for growth
The purpose of the interim budget is and populism. The RBI’s dividend of
to ensure the continuity of govern- Rs 2.1 trillion has further increased
ment expenditure and essential ser- the fiscal space, enabling investments
vices until the new government can in key sectors like green energy, EV,
present a full-fledged budget after and rural development.
taking office. However, the report also high-
Now, as part of pre-budget con- lighted the need for the government
sultations, Finance Minister Nirma- to increase its focus on farmers, the
la Sitharaman is scheduled to meet rural population, urban poor, and
representatives from industry as- Nirmala Sitharaman assumed charge as the Union Finance Minister for the second time in the middle class to mitigate the impact
sociations on June 20. The meeting of new social engineering cum free-
will see industry associations such as Modi government (ANI) bies-led reversals in certain states in
the Federation of Indian Chambers recent elections.
of Commerce & Industry (FICCI), support small and medium enterpris- challenges. The collaborative efforts In the stock market, the report
Confederation of Indian Indus- es (SMEs). of the ministry’s team are expected shared a positive outlook on sec-
try (CII), Associated Chambers of Nirmala Sitharaman, who has to contribute to a robust and strate- tors including Auto, Banks, Capital
Commerce and Industry of India been a Union Minister in both the gic financial plan for the upcoming Goods, Defense, Hospitals, Pharma,
(Assocham), and PHD Chamber of 2014 and 2019 Modi cabinets, took fiscal year. cement, Aviation, and Discretion-
Commerce and Industry presenting oath as Union Cabinet Minister in In the February interim budget, ary consumption and also increased
their budget suggestions and recom- Prime Minister Narendra Modi’s the government focused on econom- weights behind Capital Goods, Tele-
mendations. new Union Council of Ministers on ic policies that foster growth, facili- com and Cement.
This meeting is part of the gov- Sunday evening in the forecourt of tate inclusive development, improve The latest quarterly results
ernment’s annual pre-budget consul- Rashtrapati Bhavan, along with an- productivity, and create opportuni- showed strong performance in sec-
tations aimed at garnering feedback other 70 Council of Ministers. ties for various sections, while not- tors like auto, oil and gas, metals,
and suggestions from key stakehold- Nirmala Sitharaman has already ing that it will pay utmost attention capital goods, and pharma. While
ers to shape the upcoming Union directed officials to initiate the bud- to the eastern region, including the some sectors like consumer, IT, and
Budget. get preparation process, emphasizing states of Bihar, Jharkhand, Chhat- oil and gas reported tepid numbers,
The discussions are expected the need for meticulous planning and tisgarh, Odisha, and West Bengal, to there is optimism around the growth
to cover a broad range of topics, in- comprehensive analysis. This early make them growth engines as part of potential in auto, capital goods, and
cluding tax reforms, incentives for start aims to ensure a well-structured the goal to make India a developed pharmaceuticals. Mid and small-cap
various industries, measures to boost budget that effectively addresses the country by 2047. stocks have outperformed, reflecting
economic growth, and policies to country’s economic priorities and Meanwhile, a report “India market confidence in the economy.

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