India’s Budget 2024-25: Growth for Sustainable Macroeconomic

Recently, India, the main contender for leader of the Global South presented a budget of approximately 4-5% of the GDP. This massive amount is to be distributed among the various sectors. Most of the allocation is for infrastructure, agriculture, industry, and manufacturing capacity.

The Indian Govt also published a in-depth analysis of the country performance through economic survey. This survey shed light on each development activity and the growth indicators. Let’s decode how the India’s budget attracts foreign investors and manufacturers and look at the opportunity for foreign exporters.

What New in Budget for Industries?

As per the economic survey, India’s expenditure on railways increased by 77% over the last five years. And the construction of national highways rose to 34 km per day from 11.7 km per day. Along with this, Pharmaceutical, agricultural, defense, MSME sectors, manufacturing, aviation, etc. Here’s a quick view of some major sectors that have exponential growth opportunities –

Pharmaceutical and Iron-Steel

Govt exempts customs duties from three life-saving drugs for cancer, along with some changes in basic customs duties. This aims to boost domestic manufacturing and promote export competitiveness. Further, the expenditure on railways increased by 77% in the last five years, and the allocation of 11.11 lakh crores for infrastructure and development projects, boosted the demand for Ion and steel, cement, and other associated industries. Here’s a statistical view of export performance-

Pharmaceutical, Iron, and Steel exports to the world increased by 24.8% and 10.5%, respectively, in March 2024, from Jan 2024.

Value USD Million

Reduced Customs Duties for Telecommunication

Almost 77% of the Indian population has direct access to mobile phones, this doesn’t equate with smartphones. This market is estimated to grow 7-8% by 2029 with a market value of 60-70 billion.  The govt reduced customs duties on some mobile phone parts from 20% to 15% to boost domestic manufacturing and export growth. This reduced duties will make foreign and domestic trade cheaper than ever. Let’s see the exchange of phones and battery chargers in India.

Mobile exports from India increased 100-fold in the last 6 years. Going with the data, it rose to 33.8% in March 2024 from Jan 2024. However, imports decreased by 10.3% in the same period. For a detailed analytical view, check the table.

Value USD Million

Jewellery: The Pandora Box for Success

India is among the top importers of gold in the world. The demand for jewellery is skyrocketing with double digits. And, in the budget, the govt reduced the custom duties on gold and silver to 6% from 15%, and for platinum decreased to 6.5%. Let’s see how foreign markets can enter the Indian market with jewellery exports – 

From Jan- March 2024, India imports USD 9.5 billion worth of gold. Silver and Platinum exports stood at USD 3 billion and USD 64 million in the same period. It shows India’s dependency on gold is more on silver and platinum trade. And, with reduced duties, the foreign manufacturers are served with immense opportunity with a huge market. 

Value USD Million

How Much Does Agriculture Get from The Budget?

Indian agriculture performed well and achieved a 4-5% annual growth rate for five consecutive years. To make the agricultural sector more prosperous, the govt allocated around 1.52 lakh crore for the current financial year. Let’s see what are the top agriculture commodities for exports –

India’s total agricultural exports to the world crossed the $12.8 billion mark in Q1 of 2024. Milled rice, Frozen-Boneless meat, and Coffee value stood at $1052, $291, and $136 billion respectively, in March 2024. For more details, check the table –

Value USD Million

With the massive budget allocation of 1.52 lakh crore in agriculture and allied sectors, the associated industry is also experiencing growth. Let’s understand this with the example of Chemical and Fertiliser exports-

India’s organic and inorganic chemicals supply increased by 32.7% and 27.8% respectively, in March 2024 from Jab 2024. On the other hand, fertiliser exports doubled to $14 Million in March 2024 from Jab 2024.

Value USD Million

This budget means a lot for India’s prosperity and growth. With this, the Indian govt presents a strong economic base, manufacturing power, and sustainability. This also opens the door to foreign manufacturers and investors as govt is improving logistics and ease of doing business ranking.