Session 2023-24

PGDM205: PROJECT
MANAGEMENT

A Report on Union Budget of India 2024-25

Date of Assignment: 01.02.2024 Date of Submission: 08.02.2024

Submitted To: Submitted By:

Dr. Navita Gurbani Aman Bhatt

(ABS/PGDM/23/187)
The Union Budget of India 2024-25
The Interim Budget for the fiscal year 2024-25, presented by India's Finance Minister, Nirmala

Sitharaman, on February 1, has provided a comprehensive overview of the nation's economic

priorities and strategic initiatives. Emphasizing the achievements of the Narendra Modi government

over the past decade, Sitharaman highlighted key sectors and outlined measures to sustain and

accelerate economic growth.

1. Focus on Human Capital Development:

The Interim Budget underscored the importance of prioritizing human capital development through

sustained investments in healthcare, education, and research and development (R&D). This strategic

approach aims to fortify India's foundation for long-term economic prosperity.

2. Sectoral Emphasis on Urban Transformation:

Notable sectors such as green energy, aviation, railways, metro rail, and NaMo Bharat have been

earmarked for special attention. The budget positions these sectors as catalysts for urban

transformation, aligning with the government's vision for modernization and sustainable

development.

3. Legislative Framework - Digital Personal Data Protection Act:

The introduction of the Digital Personal Data Protection Act is a significant legislative move. This act

is expected to play a crucial role in safeguarding personal data and facilitating the growth of startups

specializing in data security and data monetization tools.

4. Agricultural Reforms:
Agricultural reforms featured prominently in the budget, with specific measures aimed at addressing

the overuse and misuse of Urea. The adoption of Nano-DAP and increased usage of Nano-Urea in

agro-climatic zones, coupled with initiatives like PM Pranam, signify a commitment to modernizing

agriculture and promoting sustainable practices.

5. AI Ecosystem for National Development:
The budget articulates a vision for building a robust AI ecosystem for the country. This includes
investments in the Cloud, AI research, and skilling programs. The aim is to encourage innovative AI
projects, particularly those customized to Indian conditions, fostering technological advancements and
research initiatives.

6. Aquaculture and Employment Generation:

The budget places significant emphasis on public and private investment in agriculture, particularly in

the aquaculture sector. Targets include increasing yield and quadrupling exports, accompanied by the

establishment of integrated aqua parks. These initiatives are anticipated to generate over 55 lakh

employment opportunities.

7. Fertilizer Subsidy Management:

Recognizing fertilizer subsidy as a major budgetary expense, the budget emphasizes the need for

reasonable subsidization. Balancing the sustainability of agricultural operations and mitigating the

environmental impact are key considerations in shaping policies related to fertilizer subsidization.

8. Taxation Policies and GST Impact:

The Interim Budget maintains existing tax rates for both direct and indirect taxes, providing

continuity in taxation policies. Tax benefits for Start-Ups, investments by sovereign wealth or pension

funds, and specific income exemptions for certain IFC units have been extended. The Finance

Minister highlighted the positive impact of the Goods and Services Tax (GST), citing streamlined

processes, reduced compliance burdens, and increased tax revenues.

9. Economic Policies and Transparency:

Sitharaman announced the government's intention to publish a white paper on the status of the

Indian economy. This initiative reflects a commitment to transparent governance and continuous

improvement in economic policies. The white paper will compare the economic situation before and

after 2014, offering insights into past challenges and successes.

The Finance Minister's interim budget for the fiscal year 2024-25 serves as a transitional measure

bridging the period between April and June/July, pending the outcome of the Lok Sabha elections

scheduled for April-May. It is anticipated that the incoming government, with confidence in an

electoral victory, will present a comprehensive budget outlining a roadmap for Vikasit Bharat or

Developed India.

CURRENT SCENARIO
The prevailing economic landscape reflects India's ambitious long-term vision of achieving a $30

trillion economy by 2047, encapsulated in the concept of Viksit Bharat. This vision adopts a holistic

approach that goes beyond mere financial allocations, emphasizing a comprehensive and inclusive

strategy. Despite challenges posed by the pandemic, the government has pursued progressive

policies to steer India's economic recovery, including robust social protection measures, aggressive

industrial policies through schemes like PLIs, and incentives to boost employment and overall

economic growth. The trajectory towards becoming the world's third-largest economy within the

next three years is supported by a growing recognition of the pivotal role of the rural economy in

driving growth. Initiatives such as ensuring Minimum Support Price (MSP) for farmers, support

programs for participation in food processing, and initiatives like Lakhpati Didis facilitating the

distribution of rural products in urban areas exemplify this commitment.

In the presentation of the Interim Union Budget for 2024-2025 in Parliament, Finance and Corporate

Affairs Minister Smt Nirmala Sitharaman announced an 11.1 per cent increase in the capital

expenditure outlay for the next year, amounting to Rs 11,11,111 crore, equivalent to 3.4 per cent of

the GDP. Sitharaman emphasized this boost as a continuation of the substantial tripling of capital

expenditure over the past four years, leading to a significant multiplier effect on economic growth

and job creation.

Regarding GDP, the First Advance Estimates of National Income for FY 2023-24 forecast India's Real

GDP to expand by 7.3 per cent. This aligns with the upward adjustment in growth forecasts by the

RBI in its December 2023 Monetary Policy Committee meeting, indicating robust growth in Q2 of FY

2023-24.
Despite global economic challenges, the Indian economy has demonstrated resilience, maintaining

robust macroeconomic fundamentals. The International Monetary Fund (IMF) raised its growth

projection for India for FY 2023-24 to 6.3 per cent in its October 2023 World Economic Outlook

(WEO), reflecting growing global confidence in India's economic strength.

The IMF predicts that India will become the third-largest economy by 2027, with its contribution to

global growth expected to increase by 200 basis points over five years. Various international agencies,

including the World Bank, IMF, OECD, and ADB, forecast India's growth to range between 6.1 per cent

and 6.7 per cent in 2024-25.

The Interim Union Budget of India for 2024-25 holds implications for project management students,

offering insights into the socio-economic landscape, government priorities, and their direct impact on

project planning and execution. It serves as a valuable gauge for understanding funding allocations,

policy directions, and sectoral focus, guiding project managers in aligning their strategies with broader

national objectives.

As project management students delve into the intricacies of economic theories and their practical

implications, the pre-budget fervor fosters a deeper understanding of the interplay between

government policies and various sectors. This heightened awareness underscores the importance of

adaptability and foresight in project management.

Analyzing the interim budget provides project management students with a unique opportunity to

explore the intricacies of economic decision-making and its far reaching consequences. It emphasizes

the pivotal role of budgetary planning in shaping project trajectories and underscores the importance of

informed decision-making in navigating dynamic socio-economic landscapes.

The interim Union Budget of India for 2024-25 carries several implications for project

management students that can significantly influence their understanding of project

planning, execution, and management.

Key implications include the continuation of ongoing projects, stability in funding for existing projects, a

focus on priority sectors, preparation for the full budget, emphasis on efficiency and accountability,

and opportunities for consultation and input from stakeholders.

In conclusion, the Union Budget of India 2024-25 presents a multifaceted landscape with significant

implications for both project management students and professionals. A comprehensive examination

of budgetary allocations, policy announcements, and economic projections reveals opportunities for

large-scale projects, the importance of sustainability in project management, and the need for

continuous upskilling in response to evolving industry trends. This insight positions project

management students to adapt and excel in the dynamic global landscape.