The Union Budget 2024-25 transcends the realm of financial planning; it is a testament to India's ambition, its commitment to a greener and more equitable future, and its unwavering belief in the power of innovation to drive economic transformation.
Finance Minister Nirmala Sitharaman unveiled the Union Budget for 2024-25 against India's robust 8.2 percent GDP growth, causing excitement across the country. However, this budget tempers its optimism with a conservative growth projection of 6.5-7 percent, acknowledging the challenges ahead. More than a financial statement, it is a bold manifesto for a future where economic prosperity and social equity go hand in hand. This budget celebrates the country’s achievements and lays a strong foundation for India's journey towards Viksit Bharat by 2047.
The Union Budget's comprehensive approach is evident in its focus on nine key areas, ranging from agriculture to green energy to next-gen reforms, signaling a strategy aimed at achieving sustainable and inclusive growth. The budget's focus on empowering individuals, especially women and the middle class, through targeted initiatives such as upskilling programs and tax simplification, reveals a commitment to fostering widespread economic participation. Its embrace of the "5 S's" – skilling, simplification of taxes, scalability of schemes, structure via a saturation approach, and sustainability – demonstrates a holistic approach to economic development.
From a renewable energy perspective, there are three key takeaways from this year’s budget that are particularly noteworthy. First and foremost, the budget's focus on energy security and transition is not merely a policy initiative; it is a potential game-changer. The expansion of the PM Surya Ghar Muft Bijli Yojana, with the ambitious goal of providing free electricity to 1 crore households through rooftop solar installations, has the power to transform India's energy landscape, creating a thriving market for rooftop solar while simultaneously addressing energy poverty and environmental concerns.
Moreover, the PM Surya Ghar Muft Bijli Yojana is expected to stimulate local economies by creating numerous job opportunities in the installation, maintenance, and manufacturing of solar panels and related infrastructure, potentially generating around 17 lakh jobs across the solar value chain.
The budget further supports the solar energy sector by expanding the list of exempted capital goods for use in the manufacture of solar cells, thereby encouraging domestic production and reducing dependence on imports.
Equally significant is the government's dedication to developing pumped hydro storage, a critical technology for integrating renewable energy sources into the grid. Pumped hydro storage is a proven and reliable technology for large-scale energy storage, essential for integrating the increasing share of renewable energy into the grid. Coupled with the allocation for research into small and modular nuclear reactors, these initiatives showcase a multifaceted approach to energy security, ensuring a diversified and resilient energy mix. The exemption of customs duty on 25 critical minerals further supports the energy sector by facilitating access to essential resources and the development of sustainable supply chains.
Beyond energy, the budget's resolute commitment to gender equality and women-led development is evident in the allocation of over Rs 3 lakh crore for women-centric schemes, underscoring a recognition that empowering women is fundamental to India's socio-economic progress. The significant investment in empowering women and ensuring their participation can define India's growth story.
Third, the budget’s focus on sustainability, encompassing everything from climate finance to natural farming, further solidifies the budget's forward-thinking approach. The development of a taxonomy for climate finance is poised to attract substantial investments in green projects, accelerating India's transition to a low-carbon economy. The emphasis on critical minerals, a cornerstone of the renewable energy sector, is both strategic and visionary. Initiatives like the Critical Mineral Mission and the auctioning of offshore blocks for mining not only bolster India's self-reliance but also position it as a key player in the global supply chain, which is crucial for the growth of the renewable energy sector.
Additionally, the budget's emphasis on employment and job creation is highlighted by the financial muscle thrown via employment-linked incentives, which aim to boost job opportunities across various sectors. This focus on employment underscores the government's commitment to creating a robust job market, essential for economic stability and growth.
Finally, the budget's commitment to fiscal prudence, with a target to lower India's fiscal deficit to below 4.5 percent of GDP by 2025-26, demonstrates a balanced approach to economic management. This focus on reducing the fiscal deficit ensures that India's economic growth is sustainable and fiscally responsible.
To conclude, the Union Budget 2024-25 transcends the realm of financial planning; it is a testament to India's ambition, its commitment to a greener and more equitable future, and its unwavering belief in the power of innovation to drive economic transformation. The budget's emphasis on skilling, infrastructure development, and ease of doing business will further strengthen the ecosystem for businesses like ours. As we move forward, we are committed to working with the government and other stakeholders to realise the vision of Viksit Bharat, a developed India that is not only economically prosperous but also socially inclusive and environmentally sustainable.
(Vaishali Nigam Sinha is the Co-Founder and Chairperson Sustainability at ReNew)