The Union Budget 2024, presented by Finance Minister Nirmala Sitharaman, has made significant allocations and introduced policies to boost various sectors of the economy. Here’s an overview of the top industries that stand to benefit from these initiatives.
Market sectors that may grow post Union Budget 2024 announcement
1. Infrastructure Development
The 2024 union budget underscores a strong commitment to infrastructure, with substantial investments to enhance connectivity and urban planning. This provides a huge opportunity for infrastructure companies to participate in and profit from the project, generating a good opportunity for investors to grow along.
- Roads, Railways, and Urban Planning: The government has earmarked substantial funds to bolster infrastructure development. This includes expanding and upgrading roads and railways, essential for improving connectivity and fostering economic growth.
- Polavaram Irrigation Project: Completing this major irrigation project will significantly boost the region’s agricultural productivity and water supply.
- Industrial Corridors: Development is set to accelerate in the Vishakhapatnam-Chennai and Hyderabad-Bengaluru industrial corridors, with vital infrastructure such as water, power, railways, and roads being prioritized in the Kopparthy and Orvakal nodes.
- Urban Housing: To address the housing needs of 1 crore urban poor and middle-class families, the budget has allocated ₹10 lakh crore for investment in affordable housing and an additional ₹2.2 lakh crore to make urban housing more accessible.
2. Agriculture
Agriculture remains a cornerstone of the Indian economy, and the union budget reflects this with enhanced support for sustainable practices and improved productivity and the companies directly involved in agriculture can be beneficiaries of this union budget.
- Natural Farming and Crop Production: The government has allocated ₹1.52 lakh crore for agriculture and allied sectors. Key initiatives include promoting natural farming, increasing pulses and oil seeds production, and developing climate-resilient crops.
- Bio Research Centres: 10,000 bioresearch centers will be established to innovate and support agricultural practices.
- Farmer Support: Over the next two years, 1 crore farmers will be integrated into natural farming, with support for branding and certification. Financial support for vegetable production, supply chain clusters near consumption centers, and shrimp breeding centers will also be provided.
- Kisan Credit Cards: These will be launched in five states to facilitate farmers’ credit access.
- Pulses and Oil Seeds Self-Sufficiency: Efforts to boost self-sufficiency in these crucial crops involve registering 60 million farmers and their land, authenticating organic farming produce, and introducing new crop varieties.
3. Manufacturing
New schemes and financial support for job creation and industry expansion boost the manufacturing sector.
- Scheme B: This new initiative focuses on job creation by incentivizing the employment of first-time employees, with benefits for both employees and employers linked to EPFO contributions for the first four years of employment.
- Support for MSMEs: Measures to aid MSMEs include increasing the limits for Mudra loans from ₹10 lakh to ₹20 lakh, reducing the turnover thresholds for mandatory onboarding on the TReDS platform, and providing financial backing for 50 multi-product food irradiation units.
- Industrial Parks: Investment-ready “plug and play” industrial parks will be developed in or near 100 cities, with 12 industrial parks sanctioned under the National Industrial Corridor Development Programme.
- Critical Minerals: Establishing a Critical Mineral Mission will facilitate domestic production, recycling, and overseas acquisition of essential minerals.
4. Renewable Energy
The budget continues to prioritize renewable energy, with significant incentives and policy measures to expand the sector, aligning with the government’s green agenda.
- Customs Duty Reductions: To reduce manufacturing costs for renewable energy components, duties on gold, silver, and platinum have been cut, while lithium, copper, and cobalt have been exempted.
- Solar Energy: The “PM Suryaghar Muft Bijli Yojana” aims to install rooftop solar panels for 1 crore households, providing free electricity up to 300 units per month and encouraging wider adoption of solar energy.
- Exemptions for Manufacturing Inputs: Exemptions on customs duties for manufacturing connectors, oxygen-fused copper, and spandex yarn components will lower production costs for solar cells and panels, promoting domestic manufacturing.
Conclusion
The Union Budget 2024 has laid down a comprehensive framework for growth and development across key sectors. With substantial investments and strategic initiatives, these sectors are poised to drive economic progress, create jobs, and enhance the overall quality of life for millions of Indians.
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FAQs
How will the infrastructure sector benefit from the Union Budget 2024?
The budget allocates significant funds for road, railway, and urban planning development. Key projects include completing the Polavaram Irrigation Project and the development of the Vishakhapatnam-Chennai and Hyderabad-Bengaluru industrial corridors.
What are the key initiatives for the agriculture sector in the 2024 budget?
The budget emphasizes natural farming, increased pulse and oil seed production, and climate-resilient crops. It includes the establishment of 10,000 bioresearch centers, financial support for vegetable production and shrimp breeding, and the introduction of Kisan Credit Cards in five states.
What measures are being taken to boost the manufacturing sector?
Scheme B focuses on job creation by incentivizing the employment of first-time employees. Support for MSMEs includes increased Mudra loan limits and financial backing for food irradiation units. Investment-ready industrial parks will be developed, and a Critical Mineral Mission will be established.
How does the budget support renewable energy?
The budget introduces customs duty reductions on essential components like lithium, copper, and cobalt. The “PM Suryaghar Muft Bijli Yojana” aims to provide free solar electricity to 1 crore households. Exemptions for manufacturing inputs like connectors and oxygen-fused copper will promote domestic solar panel production.
Which stocks will likely benefit from the budget’s urban housing initiatives?
The budget allocates ₹10 lakh crore for affordable housing and an additional ₹2.2 lakh crore to make urban housing more accessible. Stocks like DLF Limited, Godrej Properties, and Oberoi Realty are expected to benefit from these initiatives.
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I’m Archana R. Chettiar, an experienced content creator with
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