Fostering a business-friendly environment, promoting domestic innovation, and boosting private investments may emerge as prominent focal points in the Interim Budget 2024-25. According to insider information, the government is unwavering in its commitment to enhance domestic manufacturing and is actively exploring additional measures in this direction. Although the budget scheduled for presentation on February 1 will outline its intentions regarding these themes, the specific measures are expected to be unveiled in the subsequent full Budget, to be presented after the General Elections by the newly formed government.
Insiders suggest that the government is actively working on enhancing the ease of doing business to position India as one of the premier investment destinations among large developing economies. The NITI Aayog is reportedly engaged in formulating additional strategies in this context, with ongoing consultations with various ministries.
Additionally, efforts will persist to enhance export growth and reduce dependence on imports. Further initiatives are being explored to stimulate domestic innovations, boost local manufacturing, and encourage private sector investments. Despite the announcement of numerous measures in these domains in recent years, the aim is to continue implementing these strategies, as they are deemed essential for sustaining economic growth and creating employment opportunities in the coming years.
Nevertheless, due to the customary nature of the interim Budget as a Vote on Account, specific fiscal and policy measures in these areas may only be disclosed at a later juncture. D.K. Srivastava, Chief Policy Advisor at EY India, pointed out that in a similar scenario in 2019, the main Budget was presented in the first week of July. He clarified, “The Interim Budget, also known as a Vote on Account, facilitates the allocation of expenditures at the start of the next fiscal year until the main Budget is presented and is not intended for the initiation of major policy changes.
