Union Budget 2024: Big bang reforms, all the way

In the Union Budget 2024, Hon. Finance Minister Nirmala Sitharaman outlined nine key focus areas:
⦁    Productivity and Resilience in Agriculture
⦁    Employment and Skilling
⦁    Improved Human Resources and Social Justice
⦁    Manufacturing and Services
⦁    Urban Development
⦁    Energy Security
⦁    Infrastructure
⦁    Innovation, Research, and Development
⦁    Next Generation Reforms
Of particular interest are the announcements affecting education, skilling, employment opportunities for youth, bridging the industry-academia gap, increasing female workforce participation, strengthening the startup ecosystem, and enhancing energy security measures.
Salient Features Impacting Universities and the Higher Education Ecosystem:
⦁    Education
⦁    Budget Provision: Education loans up to Rs 10 lakh for students in domestic institutions, an allocation of Rs 120,627.87 crores to the Ministry of Education, establishment of 390 new colleges, increased focus on women’s participation in STEM, and expansion of the Skill India Mission with 3,000 new ITIs.

⦁    Impact: These measures will make higher education more accessible and affordable, supporting students in achieving their goals and aligning with the GER targets of the National Education Policy (NEP). The emphasis on women in STEM courses and overall educational infrastructure will promote gender inclusivity and a more skilled society.
⦁    Startups
⦁    Budget Provision: Abolition of Angel Tax.

⦁    Impact: The removal of Angel Tax will ease the tax burden on startups and facilitate capital raising. This is expected to significantly boost the startup ecosystem. Sri Sri University’s focus has been on encouraging the spirit of enterprise with our own Incubator having incubated and supported 140 startups, supported over 18,000 farmers, created 3,000 jobs, and served 2.5 million customers with a cumulative turnover of Rs 70 crores, we welcome this change.

⦁    Youth Empowerment
⦁    Budget Provision: The government plans to launch a scheme offering internships in top companies to one crore youth over the next five years. With an internship allowance of Rs 5,000 and a one-time assistance of  Rs 6,000, this initiative aims to bridge the gap between education and employment.

⦁    Impact: This initiative will bridge the gap between education and employment, offering valuable work experience and financial support. It will foster innovation, increase employability, and significantly enhance career prospects for many students. Today the biggest challenge of students is getting access to Fortune 100/500 companies for internships & apprenticeships. This announcement if executed well can be a game changer for students

⦁    Skilling
⦁    Budget Provision: A new centrally sponsored scheme will train 20 lakh youth over the next five years. Additionally, the model skilling loan scheme will be revised to allow loans of up to Rs 7.5 lakh, fostering skill development and employability.

⦁    Impact: This provision will enhance skill development and employability, positioning youth as a key growth engine for the economy. The world is moving towards employment for skills more than jobs for degrees. Youth trained in single or multiple skills have great opportunities for employment and starting micro/ mini enterprises. India has the challenge of ensuring our youth become a demographic dividend for the country & growth engines to make our economy the top 3 of the world. This scheme if implemented well has the potential to achieve this

⦁    Employment
⦁    Budget Provision: Three employment-linked incentive schemes will be introduced, focusing on recognizing first-time employees through EPFO enrolment. 
⦁    Scheme A: Direct Benefit Transfer of up to Rs 15,000 in three installments for first-time EPFO employees.
⦁    Scheme B: Job creation incentives in manufacturing based on EPFO contributions.
⦁    Scheme C: Reimbursement of up to Rs 3,000 per month for two years towards EPFO contributions for additional employees.
⦁    Impact: These schemes will stimulate job creation and support both employees and employers, promoting long-term employment growth and easing the transition into the workforce. Manufacturing is a critical growth driver for any economy. These schemes will definitely drive job creation in manufacturing. If linked well to skilling in different job profiles across sectors, this can open the gateway for higher employment.

⦁    Women Empowerment
⦁    Budget Provision: Increasing the participation of women in the workforce is a priority. This will be achieved by setting up hostels and organizing women-specific skilling programs, empowering women to contribute more significantly to the economy.

⦁    Impact: Every initiative that creates a facilitative ecosystem for women to pursue jobs and careers is a welcome one. The Covid period saw a large number of women drop out of the workforce. Increasing women participation in economic activities is considered necessary for many reasons because it improves their social and economic position leading to an increase in overall economic efficiency of the nations.

⦁    Energy Conservation
⦁    Budget Provision: Free electricity up to 300 units per month for over one crore households through a rooftop solarisation initiative, supporting 20-25 GW of solar capacity.

⦁    Impact: This scheme will promote sustainable energy practices, reduce household energy costs, and contribute to environmental sustainability.

⦁    Agriculture
⦁    Budget Provision: Focus on agricultural research to increase productivity and develop climate-resilient crops varieties. A comprehensive review of the farm research setup will drive innovation in agriculture.

⦁    Impact: Advanced research will enhance agricultural efficiency and resilience, addressing climate change challenges and boosting productivity.

⦁    MSME
⦁    Budget Provision: The budget includes funding for technology support, term loans for equipment purchase without collateral, and credit support for MSMEs during stress periods. The ‘Anusandhan’ scheme promises to spur innovation and research, with a Rs 1 lakh crore corpus to fund research and interest-free loans for 50 years.

⦁    Impact: These measures will support MSME innovation and resilience, driving growth and job creation within the sector.

⦁    Support for Odisha's Tourism
⦁    Budget Provision: Dedicated assistance for developing tourism infrastructure in Odisha.

⦁    Impact: This will boost Odisha’s tourism landscape, attract more visitors, and enhance the local economy by highlighting the state’s cultural and historical significance. As a university located in Odisha, we are delighted to see the heightened focus on the state by the Finance Minister in the Union Budget 2024-25. The special mention of developing the infrastructure and tourism landscape of Odisha is particularly encouraging. Odisha is indeed India's best-kept secret in terms of culture, heritage, handloom, and natural beauty, and this recognition will significantly contribute to its growth and development.

Recommendations for Future Budgets:
⦁    Tax benefits and grants for startups working on sustainable and green technologies.
⦁    Enhanced funding for healthcare and biotech startups, particularly those focusing on affordable healthcare solutions.
⦁    Increased allocation for incubation centers and co-working spaces, especially in Tier 2 and Tier 3 cities.
⦁    Policies for easier access to funding for women startup founders.
⦁    Enhancing support for faculty development through continuous training and research opportunities.
⦁    Investment in global outreach and international collaborations to attract international students and fostering cross-cultural academic exchange.
The Union Budget 2024 represents a visionary step towards growth, innovation, and inclusivity across various sectors. It aligns with the Prime Minister’s vision of Viksit Bharat by 2047 and sets the stage for India’s ascent to becoming one of the top three economies in the world.

(Source: Republicbiz)