Unlocking India's potential: Dr. Anish Shah evaluates Interim Budget 2024

In a recent opinion piece published in The Economic Times, Dr. Anish Shah, MD and CEO of Mahindra Group and FICCI President, shares key takeaways from the Interim Budget 2024

Dr. Anish Shah underscores the Interim Budget 2024’s dedication to upholding policy continuity, underscoring its pivotal role in nurturing confidence and stability within the corporate sphere.

Here are the key highlights:

Fiscal discipline and market confidence
The FY25 fiscal deficit target of 5.1% of GDP, lower than market expectations, coupled with a commitment to reduce it further to below 4.5% by FY26, is poised to boost market confidence and potentially lead to lower interest rates.

Climate-friendly approach and sustainable development
The budget prioritises a climate-friendly approach, with a focus on expanding and strengthening the electric vehicle ecosystem, promoting domestic tourism, and enhancing multi-modal logistics, all aimed at propelling India towards its vision of becoming a developed nation by 2047.

Empowering states for business climate enhancement
The budget strengthens the foundations of Viksit Bharat by enabling the States to adopt reforms, which will capture the momentum created from the Centre towards Amrit Kaal to further enhance the business climate on the ground.

Targeted support for high-growth sectors
Several key aspects of the budget target high-potential growth sectors in India, aligning with Mahindra Group’s diversified business interests across seven out of 10 such sectors positioning the group well to mirror India’s growth trajectory.

Rural prosperity and renewable energy
The emphasis on rural prosperity led by a rising number of lakhpati didis, increased access to rural housing and the government’s commitment to net-zero and renewable energy initiatives directly benefit Mahindra’s tractor and rural financing businesses, as well as its energy sector businesses.

Promoting green mobility
Initiatives to promote electric vehicle manufacturing, charging infrastructure and advancements in deep-tech technologies align well with Mahindra Group’s focus on green mobility and sustainable manufacturing.

Boosting innovation in defence and logistics
The budget’s incentives for research and development in the defence sector, coupled with efforts to enhance logistics efficiency through rail corridor projects, are poised to boost innovation and competitiveness across these sectors.

Government’s inclusive growth agenda
Overall, the budget reflects the government’s commitment to fostering inclusive and well-rounded growth, balancing fiscal discipline with measures aimed at propelling India towards a brighter and more prosperous future.

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