Budget 2024 – A drive towards a Viksit Bharat

The article sheds light on the key focus areas of the Budget from a legal standpoint, such as macroeconomic measures; infrastructure, FDI investments, Green economy, affordable housing, MSMEs and technology.
Prem Rajani
Prem Rajani

The Budget announced recently signals a budget of continuity. The Hon'ble Finance Minister's Interim Budget 2024, presented in light of the upcoming General Elections 2024, provides valuable insights into the government's economic direction and vision for specific sectors.

Highlighting the government’s vision for Viksit Bharat, the government has identified four major pillars to drive growth i.e. — poor, women, youth, and annadatas; the announcements made share a precursor into the sectors that will support this growth.

To further the government’s vision, the Budget 2024 prioritizes efforts to strengthen areas such as:

  1. Capital expenditure and control in fiscal deficit;

  2. Farming and Agriculture with a focus on allied business;

  3. Green Economy with a specific focus on Solar energy, Wind energy, and EVs;

  4. Infrastructure with a focus on tourism, logistics, railway, supply chain, and port connectivity;

  5. Healthcare especially for women and children;

  6. Affordable housing and

  7. Technological innovation driven by youth and MSMEs.

From a corporate India perspective, below are some key observations made:

1. Fiscal Deficit: The Hon’ble FM has adopted an aggressive fiscal consolidation target by announcing an FY25 fiscal deficit target of 5.1% as against the expectation of 5.3% levels. This could lead to potentially offering corporates lower interest rates and boost investor confidence.

2. Capex: While Budget 2024 raises infra spending by 11.1% to ₹11.11 lakh crore, it is below past growth rates. This could pave the way for private partnerships, where crucial funds from the private sector can help maintain India's economic momentum.

3. Infrastructure: Based on the announcements towards Capex, it would be good to monitor developments within sectors such as engineering, construction, and related industries. However, the announcements could incentivize private sector participation in infrastructure projects through public-private partnerships. Owing to the lucrative business opportunities, we could see significant activities, transactions, and deals within sectors that support tourism, logistics, railways, supply chain, and port connectivity.

4. FDI investments: With the government negotiating bilateral investment treaties with foreign partners in the spirit of ‘first develop India’, it will be interesting to see the nature of investments coming through in the coming months encouraging sustained foreign investment.

5. Green Economy: While the Government has announced a slew of measures to support the green revolution, distinct sectors that stand out are solar energy, wind energy, and the adoption of EVs.

  • Through rooftop solarization, 1 crore households will have the opportunity to receive up to 300 units of free electricity each month. Such incentives will not only spur the demand for solar energy equipment but also best-in-class Indian start-ups and businesses that can offer solar energy.

  • Owing to the government’s aim to enhance and fortify the EV ecosystem by backing manufacturing and charging infrastructure, one can foresee emerging entrepreneurs, start-ups, and businesses focusing on EV manufacturing, supply and installation, and maintenance.

  • Wind energy: Businesses, start-ups, and innovators will now have easier access to funding owing to the viability gap funding that will be provided for harnessing offshore wind energy potential for the initial capacity of one giga-watt.

6. Affordable housing: With the government’s focus on aiding housing for the middle-class living free from rented houses, slums or unauthorized colonies, we can expect real estate projects in aspirational districts, and tier 2 and 3 cities focusing on affordable housing.

7. MSMEs: The government recognises the need for MSMEs to access timely and adequate finances, relevant technologies, and appropriate training. With training, Indian MSMEs hold the potential to compete and thrive globally. However, it will be important to know how the government can collectively work with the financial sector to help MSMEs meet their investment requirements.

8. Technological innovation driven by youth: With a corpus of ₹1 lakh crore with 50-year interest-free loans that will provide long-term financing at low or nil interest rates for the private sector to scale up research in sunrise sectors, the government acknowledges that innovation is the cornerstone of development. There is much interest in understanding how the anticipated proposed scheme as well as technology-focused laws aimed at strengthening deep-tech technologies and expediting ‘atmanirbharta’ will be implemented. With access to capital, regulatory policies, adequate training, and market access, India holds incredible potential to be a global technology leader pioneering in technology-backed research and innovation.


The Budget underscores economic stability, growth in sunrise sectors, and a secure technological landscape for the youth. One must acknowledge that the interim Budget aims to support macroeconomic policies and set the stage for a transformative financial year ahead. However, it is crucial to scrutinize the fine print for a comprehensive understanding and to assess potential implications. With the interim Budget announced, we now await the full budget that is expected post-General Elections 2024.

About the author: Prem Rajani is the Managing Partner of Rajani Associates.

Bar and Bench - Indian Legal news