Budget 2024 addresses India's immediate and long-term needs: Tata Capital CEO

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Growth@work: The big message from Union budget 2024-25 Micro, medium and small enterprises are the life force of our economy and the flow of credit to them will have a multiplier effect on the economy. The FM announced several measures to simplify credit flow to MSMEs through a credit guarantee scheme and new assessment model for these businesses. The limit for Mudra Loans has also been increased from ₹10 lakh to ₹20 lakh under the Tarun category, which will have a cascading effect on the sector and its ability to create jobs.

By supporting manufacturing and MSMEs, the government is addressing the primary need of the hour – job creation. Creating more jobs will lead to higher consumption and fire up various consumer industries, increasing the multiplier effect. A similar multiplier effect is sought to be perpetuated by the continued attention to infrastructure development and a more directed effort towards urban redevelopment.

The FM has maintained capital expenditure for FY25 at ₹11.11 trillion, up 11.1% from last year. Also read | Mint Primer: Eight points to note from the Union budget Higher tax collections – gross tax collections rose 19.5% year-on-year – have give the FM room to allocate funds to numerous schemes that will benefit the poor. Providing free electricity to one crore households under PM Surya Ghar Muft Bikli Yojana and housing to one crore rural and middle-class families under the PM Awas Yojana - Urban 2.0 at an investment of ₹10 trillion will address two of the primary needs of Indians.