The Indian Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, brings forward a host of measures aimed at bolstering economic growth, with a particular emphasis on supporting Small and Medium Enterprises (SMEs) and various industry sectors. The budget reflects the government's commitment to fostering a balanced and inclusive economic environment. Here are the key features of the budget:

Focus on SMEs

The Indian Union Budget 2024 places significant emphasis on the growth and development of Small and Medium Enterprises (SMEs). Key initiatives include:

1. Credit Support: The government has announced an enhancement in credit guarantee schemes, aimed at facilitating easier access to credit for SMEs. This includes the infusion of additional funds into the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) to reduce the cost of credit.
   
   

2. Ease of Doing Business: To streamline regulatory processes, a new single-window system for business approvals will be implemented. This system aims to reduce the complexity and time required for SMEs to get various licenses and permits.
   
   

3. Skill Development: Recognizing the need for skilled labor in SMEs, the budget has allocated funds for vocational training programs. These programs will focus on upgrading the skills of the workforce to meet the demands of modern industries.
   
   

4. Technology Adoption: To encourage technological adoption among SMEs, the government has proposed incentives for digital transformation. This includes subsidies for purchasing new technologies and integrating digital solutions into business operations.
   
   

Sectoral Highlights

1. Agriculture
   

• The budget has increased the allocation for the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme, ensuring more direct income support to farmers.

• Introduction of new agricultural technology parks to promote research and development in farming techniques.
  
  

2. Healthcare
   

• Significant increase in funding for the Ayushman Bharat scheme to expand healthcare coverage.

• Investment in healthcare infrastructure, particularly in rural areas, with a focus on building new hospitals and upgrading existing facilities.
  
  

3. Infrastructure
   

• Allocation for the National Infrastructure Pipeline (NIP) has been increased, emphasizing the development of highways, railways, and urban infrastructure.

• Special focus on the development of smart cities and urban mobility solutions.
  
  

4. Renewable Energy
   

• Additional funds allocated for solar energy projects and other renewable energy initiatives.

• Incentives for private investments in renewable energy sectors, including tax benefits and subsidies.
  
  

5. Education
   

• Introduction of new schemes to promote digital education and e-learning platforms.

• Increased funding for higher education institutions to improve research and development capabilities.
  
  

Taxation

The Union Budget 2024 also introduces several changes in the taxation landscape:

1. Personal Income Tax:

• A revision in the tax slabs has been proposed to provide relief to middle-income earners. The new tax regime offers more exemptions and deductions to increase disposable income.
  
  

2. Corporate Tax:

• Reduction in corporate tax rates for new manufacturing companies to boost the Make in India initiative.

• Introduction of tax holidays for startups in specific sectors, encouraging innovation and entrepreneurship.
  
  

3. GST Reforms:

• Simplification of GST filing processes, with an aim to reduce compliance burdens for small businesses.

• Rationalization of GST rates for various goods and services to address industry demands and reduce litigation.
  
  

4. Customs Duty:

• Changes in customs duty rates on certain goods to promote domestic manufacturing and reduce import dependency.

• Special exemptions for critical sectors like healthcare and renewable energy to make essential goods more affordable.
  
  

5. Digital Taxation:

• Introduction of new guidelines for taxing digital transactions and online businesses, ensuring a fair tax system for the digital economy.
  
  

The Union Budget 2024 reflects the government's commitment to fostering a conducive environment for SMEs and key sectors while implementing reforms in taxation to drive economic growth. These measures are expected to enhance India's global competitiveness, create jobs, and ensure sustainable development across various industries.

For more detailed information, please visit the official Union Budget website.

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