Nirmala Sitharaman’s Budget Speech: Will She Reveal the Roadmap for Vision 2047?

Finance Minister Nirmala Sitharaman is set to present the Union Budget for 2024 in Parliament today. This will be her seventh consecutive budget speech, breaking the record previously held by late Morarji Desai, who presented the budget six times in a row.

What to Expect from the Budget

This budget will be the first for Modi’s third term as Prime Minister. All eyes are on Nirmala Sitharaman as she might announce changes to income tax, improvements for businesses, and new developments for railway infrastructure. She will also detail the Central government’s planned income and expenses for the fiscal year 2024-2025 in the Rajya Sabha.

Recent Economic Developments

On February 1, the Central government presented an interim budget to meet the country’s financial needs before the Lok Sabha elections. Additionally, on Monday, Nirmala Sitharaman shared the Economic Survey, which reviews the economy’s current state and future projections.

According to the Economic Survey, India’s economy is expected to grow at a rate of 6.5-7% in the current financial year, which is lower than last year’s 8.2% growth and below the RBI’s 7.2% growth estimate for this year. The survey praised the government’s efforts to manage retail inflation, which is currently at 5.4%, the lowest since the pandemic began. It also recommended increasing exports.

Boosting Exports

The Economic Survey suggested two main strategies for improving exports:

1. Integrate into China’s Supply Chain: Join China’s global supply network.
2. Promote Foreign Direct Investment (FDI) from China: Encourage Chinese companies to invest in India, which could help boost exports to the US, similar to successful strategies used by East Asian countries in the past.

Key Points

1. Seventh Budget Speech: Nirmala Sitharaman will give her seventh consecutive Union Budget speech today.
2. First Budget of Modi’s Third Term: This budget will be the first one under Modi’s third term as Prime Minister.
3. Expected Announcements: Look for possible updates on income tax, business regulations, and railway projects.
4. Economic Survey Highlights: The survey predicts 6.5-7% economic growth and praises efforts to control inflation.
5. Export Strategy: The survey recommends focusing on FDI from China to boost exports, particularly to the US.