The Union Budget 2023-24 presented early this month is a move towards progressive India. The budget contains several inclusive and growth-focused announcements aimed at boosting the economy and improving citizens’ living standards. The budget has been widely seen as a positive step forward, with many observers praising its focus on critical areas such as infrastructure, agriculture, and education.
The key announcement which is significant this time is the change in taxes to the new tax regime. The income tax rebate slab increase from 5 lakhs to 7 lakhs during the budget session has received widespread praise. This change aims to ease the financial burden of taxes for several individuals.
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At the same time, all three income groups have benefited from this new tax regime. This measure is expected to boost individuals’ purchasing power and drive economic activity, especially in the consumer goods sector. The move has been well-received by the public and is seen as a step towards a more equitable tax system.
Other vital announcements that could play a pivotal role in driving India’s economy include investment in energy infrastructure and a clear focus on increasing green energy. The government’s clear focus on improving green energy through initiatives such as setting up solar and wind power projects, promoting electric vehicles and promoting energy efficiency is expected to boost the economy and make India a more environmentally sustainable country. Additionally, efforts to improve the ease of doing business and attract foreign investment are expected to contribute to the growth of India’s economy.
The budget contains several inclusive and growth-focused announcements aimed at boosting the economy and improving citizens’ living standards
Secondly, the government’s intent to improve financial literacy and inclusion by providing access to banking services to the underbanked population is a great move. Through programs such as Jan Dhan Yojana, as well as promoting digital transactions, is expected to increase economic activity and boost economic growth. India has seen a surge in digital payments through UPI with over 7600 crores of volume. E-commerce and digital startups have also grown, and COVID-19 hastened digital integration in education, healthcare, and work.
Despite progress, obstacles remain, particularly in the areas of digital literacy and internet access in specific regions. The current budget prioritizes tackling these challenges, a progressive step forward. The government’s efforts to improve financial literacy will also empower citizens to make informed financial decisions and increase their participation in the formal financial sector. The move will lead to increased savings, investment, and spending, which will, in turn, drive economic growth.
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Thirdly, the FM has proposed several measures to support the growth of startups in the country. That includes tax benefits, funds, incubation and acceleration programs, ease of doing business, and research and development support. India is the third largest startup ecosystem in the world. The progressive measures are expected to boost the startup ecosystem and encourage more young entrepreneurs to start and grow their businesses. It will contribute to the overall growth of the Indian economy, promote innovation, and create new job opportunities. The measures are also expected to attract foreign investment, further boosting the economy.
Overall, the government’s commitment to driving growth and improving people’s lives is evident in the budget, which is expected to significantly impact the Indian economy in the coming months and years.
Guest contributor Edul Patel is the CEO and Co-founder of Mudrex, a global crypto-investing platform. Any opinions expressed in this article are strictly that of the author.