Union Interim Budget 2024: How Will it Impact Businesses?

TheCodeWork
7 min readFeb 7, 2024
Union Interim Budget 2024

Our Hon’ble Finance Minister Nirmala Sitharaman presented India’s Interim Budget of 2024, outlining this year’s fiscal plans. This budget holds a crucial vision for technological development and business growth in India. And as a software development company, this is exactly what we are focusing on.

Many commended the budget, stating it outlines a clear path for a fully developed & economically strong India by 2047. As per the IMF, India is likely to become the third-largest economy in 2027 (in USD at market exchange rate). As per reports, India’s contribution to global growth will rise by 200 basis points in 5 years. Exciting, isn’t it?

Moreover, international agencies such as the World Bank & ADB, project India’s GDP to grow by 6.4% — 6.7%. (Respectively in 2024–25, as well). According to the Finance Minister, the Indian economy has witnessed a profound positive transformation in the last few years. She adds, “ Conditions were created for entrepreneurial opportunities “ & with that, the country might get new exposure to business opportunities.

Having said so, it’s a very optimistic year for businesses to reap the fruitful benefits of the Indian economy. Even startups must leverage their goals as the government has announced policies to support a robust startup environment. Therefore, if you are looking for guidance for your startup journey, then consider India’s first zero-equity startup-ecosystem launched by TheCodeWork. And if you are a thriving business already, that needs a push on the tech side, we are here for you as well.

Book a free consultation call with us, today!

Now, let’s delve into the key highlights and the implications of India’s interim budget for technological development and business growth.

Overview Of The Interim Budget of 2024

The Union Interim Budget 2024–25, reflects the government’s continued focus on inclusive growth, economic stability, global positioning, & sector-specific developments. As mentioned earlier, this budget is part of the government’s overarching vision toward a developed India by 2047.

Before, we delve into into the prime aspect of technological development & business growth, let’s have a look at these highlights:

  • Economic Growth: The budget projects India’s Real GDP to grow at 7.3% in FY 2023–242. This is in line with the upward revision in growth projections for FY 2023–24 by the RBI.
  • Fiscal Policies: Capital expenditure outlay for the next year is increased by 11.1% to Rs 11,11,111 crore. This will act as a huge multiplier impact on economic growth and employment creation.

This year, the budget specifically focuses on various sectors including technology, sustainable tech, bio-manufacturing, and more. Each of these sectors got undivided attention to drive growth and innovation.

Key Technological and Business Highlights from the Budget

With the Interim Union Budget 2024–25 paving the way for a tech-driven future, there’s no better time to innovate & grow. Whether you’re a startup founder or someone looking for tech support for your business, we’re here to empower you.

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Now, let’s explore the technological development and business advantages from this year’s budget.

1. Technological Development

Nirmala Sitharaman announced that for our tech-savvy youth, this will be a golden era! The budget includes corpus and interest-free loans for, fostering research and innovation. This strategic allocation of funds reflects a forward-looking approach, positioning the nation for a dynamic and self-sufficient future.

The government’s focus on research and innovation will drive the growth of new-age technologies.

Now, let’s see check how this budget delivers what it promises:

  • Fostering of Research and Innovation: This budget allocation aims at fostering research and innovation, which are key drivers of technological advancement and economic growth.
  • Promoting New-Age Technologies: Emphasis on research and innovation will propel the advancement of AI, ML, and Blockchain in India.
  • Forward-Looking Approach: The budget reflects a forward-looking approach, positioning the nation for a dynamic and self-sufficient future. The plan promises to generate employment opportunities for the youth.
  • Financial Support for Youth: The budget includes a Rs 1 lakh crore corpus and interest-free loans for youths & startup founders. It will provide them with the financial support needed to contribute to the technological ecosystem.

With the new budget for technological development, there’s never been a better time to contribute to the technological ecosystem. TheCodeWork is here to empower you! Our team of experts is ready to provide the tech support you need to make your mark.

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2. Boosting the Semiconductor Industry

India aims to foster a favorable environment for the semiconductor industry and position itself as a global hub. The government’s focus on the semiconductor industry is a strategic move considering the global semiconductor shortage.

Also, by strengthening the domestic semiconductor industry, India aims to diminish import dependency and meet global demand more effectively.

Now, let’s have a look at some of the additional advantages from the emphasis:

  • Attracting Investments: This emphasis will attract more investments in the semiconductor sector, contributing to its growth and expansion.
  • Boosting Manufacturing: The move will boost the manufacturing of electronic devices within the country, promoting self-reliance and reducing import dependency.
  • Catering to Global Demand: With a boosted domestic semiconductor industry, India aims to cater to the global demand, positioning itself in the global market.
  • Increased Industrial Automation: Increased industrial automation and the rise of the “smart city” will strengthen the market in the near future.

To sum up, India’s strategic emphasis on the semiconductor industry is crucially a forward-looking initiative. The government is trying to leave no stone unturned to diminish import reliance by fortifying the domestic industry.

3. Sustainable Tech and Bio Manufacturing

The budget focuses on sustainable tech with support for Electric Vehicles (EVs) and biomanufacturing. This is a significant step towards promoting green technology and reducing the country’s carbon footprint. On the other hand, the focus on bio-manufacturing will boost the production of biofuels and other bio-based products.

Here’s how this will be contributing to a sustainable and circular economy:

  • Support for Electric Vehicles (EVs): The government’s push for EVs will accelerate the adoption of electric vehicles in India.
  • Emphasis on Green Energy: Focus will be on green energy with initiatives such as viability gap funding for shore-wind energy, coal gasification, and liquefaction.
  • Regenerative Principles through Technology: This will help in understanding & transforming today’s consumptive patterns & predict future manufacturing paradigms.

Insights: Blockchain smart contracts can unlock new ways to tackle climate change. According to several ecological surveys, it shows that regenerative practices are highly sustainable.

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These initiatives are part of the government’s vision of a ‘ Viksit Bharat’ (Developed India): Governance, Development, and Performance. They aim for inclusive growth across sectors, including agriculture, finance, health, and diverse communities, promoting ‘ Atma Nirbhar India ‘.

4. Support for Start-ups and Women Entrepreneurs

The budget supports the Start-up community and women entrepreneurs. This will undoubtedly foster a culture of entrepreneurship and innovation in the country. The government’s support for start-ups and women entrepreneurs is expected to create a vibrant start-up ecosystem in India.

Let’s see how:

  • Virtual Incubation Program: The government is conducting a Virtual Incubation Program for Women Entrepreneurs with pro-bono acceleration support for 3 months.
  • Dedicated Webpage: A dedicated webpage for women entrepreneurs has been designed on the Startup India portal. The page includes various policy measures for women entrepreneurs by both Central and State Governments.
  • Funding Schemes: There will be the launching of several funding schemes for women entrepreneurs. For instance, Saha Fund is a women-focused venture capital fund approved by the Securities & Exchange Board of India.

These initiatives aim to foster a culture of entrepreneurship and innovation in the country, creating a vibrant start-up ecosystem. Hence, that’s one of the prime reasons to join TheCodeWork’s Startup Ecosystem, which is India’s first Zero-equity startup ecosystem.

Bottom Line

Summing up, India’s interim budget of 2024 is set to drive technological development and businesses. It is hoping to pave the way for a future where innovation thrives, and businesses prosper.

The budget’s focus on fostering research & promoting new-age technologies is a testament to the government’s optimism. This forward-looking approach is not just beneficial for large corporations but also opens up a plethora of opportunities for startups.

So, if you’re a startup or a business looking to navigate this promising landscape, TheCodeWork is here to support you. Don’t miss out on this golden opportunity!

Book a free consultation call with us today and let’s embark on this journey together towards a technologically advanced and economically strong India.

Originally published at https://thecodework.com on February 7, 2024.

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TheCodeWork

TheCodeWork is a team of innovative problem solvers, who look into various aspects of business and build solutions to simplify them with tech.