‘Legal Era’ Take on Budget 2024-25 Setting Sights on Becoming ‘Viksit Bharat’ by 2047
The Interim Budget 2024-25 was received with applause and delight as our Hon’ble Finance Minister Nirmala Sitharaman eloquently delivered the Budget Speech 2024-25.
The Government of India is indeed working with an approach to development that is all-round, all-pervasive, and all-inclusive. It is working to make India a ‘Viksit Bharat’ by 2047 by achieving not just a 7% GDP growth rate but also equally focusing on a more comprehensive ‘GDP’, i.e., “Governance, Development, and Performance.”
To achieve this goal of becoming a 7 trillion dollars economy by 2030, and a Developed India @2047, the government aims to improve people’s capability and empower them.
Legal Era wholeheartedly joins the government in strengthening this vision. The legal community has always been a nation builder, and we at Legal Era are committed to creating, year after year, opportunities for our 85,000-plus community of experts and stalwarts from across industry working tirelessly to solve legal problems, bolster economic growth, and position India as the most favoured nation for investments, innovation, and equitable growth.
That becomes even more critical in the current post-pandemic times where, geopolitically, global affairs are becoming more complex and challenging with wars and conflicts. Reshoring and friend-shoring, disruption and fragmentation of supply chains, and competition for critical minerals and technologies are redefining globalisation. In this new emergent world order, we at Legal Era reinforce our mission to build consensus on solutions for global problems, contribute to law and policy development, and always find the way forward.
We are confident that the Finance Minister’s faith in the trinity of demography, democracy, and diversity backed by ‘Sabka Prayas’ indeed has the potential to fulfil the aspirations of every Indian. Today, we are the 5th largest nation in economic size. Our fiscal deficit is 5.8% of GDP. We are primed for progress in the coming years.
Cyril Shroff
Managing Partner, Cyril Amarchand Mangaldas
Here are few cross-industry perspectives by leading members of the Legal Era Community, shared exclusively with Legal Era.
Speaking on the Budget, Mr. Cyril Shroff , Managing Partner, Cyril Amarchand Mangaldas said.
“The recently released World Economic Outlook report of the IMF, calls India a bright spot and has increased our growth estimates. The Budget speech reaffirms and consolidates this growth trajectory. In keeping with constitutional and legal convention, the Budget did not make significant changes to tax or the policy regime. However, it had an important signalling impact. The references to next generation of reforms, continued focus on trade and investment and attention to sunrise sectors such as technology and the energy transition set the path for higher as well as better quality growth for the coming year. The decision to continue tax incentives for investments by sovereign wealth funds and pension funds and those available to startups provides certainty and predictability. The procedural changes to the tax regime also facilitate streamlining and will have a multiplier impact. The withdrawal of older disputed tax demands similarly affords clarity to tax payer and will give a more real picture of public accounts. Within the constraints of the present budget, the finance minister has hit all the notes of growth, policy and tax certainty and being poised for continued reform.”
“In the Interim budget, there is no change in the existing rates of customs duties. The Government, in line with its ‘make in India’ initiative and with a special focus on MSME’s has proposed to extend the customs duties exemptions which were expiring in March, 2024 till 2025.”
Rajesh Narain Gupta
Managing Partner, SNG & Partners, Advocates & Solicitors
Speaking on the Budget, Mr. Rajesh Narain Gupta, Managing Partner of SNG & Partners, Advocates & Solicitors, said
Huge incentives to the private sector for innovations by creating a new fund exceeding one lakh crore and further a deep focus on infrastructure development by increasing the overall provisions as well as steps being taken towards rural, women and farmers development are astounding steps which will accelerate India becoming a developed nation
Nupur Maheshwari
Partner, Lakshmikumaran and Sridharan
Speaking on the Budget, Nupur Maheshwari , Partner, Lakshmikumaran and Sridharan said
As highlighted by the Hon’ble Finance Minister in her speech, there are no major policy changes from direct tax perspective. In few cases, the cut-off date has been extended from 31st March, 2024 to 31st March, 2025 for availing certain exemptions/ tax concessions. This includes the last date for incorporation of companies/ LLPs to qualify as eligible startup for tax exemption under section 80-IAC, window in which specified investments made by certain offshore sovereign wealth funds/ pension funds qualified for tax benefits and cut-off date for setting up of offshore banking units or other units in IFSC to qualify for tax exemptions on certain specified income. Interestingly, there is no extension of time limit for commencement of manufacturing operations by new companies intending to claim concessional tax rate of 15% under section 115BAB.
Further, there is no statutory amendment proposed in the Income Tax Act to implement to withdrawal of small-disputed tax demands announced by the Finance Minister during her speech. We need to wait for further announcements in the form of instructions or circular to understand the exact scope and coverage of such scheme.
Ashwin Sapra
Partner, Cyril Amarchand Mangaldas
Speaking on the Budget, Mr. Ashwin Sapra, Partner, Cyril Amarchand Mangaldas said
“The governments focus to extend health cover under the Ayushman Bharat scheme to all ASHA, Angawadi workers and helpers is a welcome step. These are people who are delivering Healthcare at the grass roots level and deserve to benefit from the scheme for the Healthcare services that they render where it is needed the most. Marginal increase in allocation for Ayushman Bharat. Should have been more as Healthcare services need a definite boost. Increase in the allocation under the PLI scheme will surely boost domestic production provided quality issues are addressed.”
Bose Varghese
Senior Director- ESG Practice, Cyril Amarchand Mangaldas
Speaking on the Budget, Mr. Bose Varghese , Senior Director- ESG Practice Cyril Amarchand Mangaldas said
“Household rooftop solar program will help drive both renewable energy and electric mobility transitions. 1 crore households can potentially avoid nearly 25 million tons of CO2 every year.”
“The most significant announcement in the green energy space is the viability gap funding for 1 GW of offshore wind power capacity. This is a much needed push to exploit the extensive offshore wind potential India has.”
Arushi Jain
Partner & (Head of Media, Education & Gaming), Cyril Amarchand Mangaldas
Speaking on the Budget, Ms. Arushi Jain, Partner & (Head of Media, Education & Gaming), Cyril Amarchand Mangaldas said
“The interim budget continues to keep focus on education, which is imperative to realising the dreams of ‘vikshit Bharat ‘. Announcements were made of the government’s plan to set up more medical colleges. The speech also had a clear focus on encouraging research, innovation and technological advancements to propel India’s growth. These will be possible with a strong foundation in education – which is supported by the government via NEP and many other light touch regulatory reforms.”
Legal Era joins in spirit and action as our Hon’ble Prime Minister’s clarion call in his recent Independence Day address to the nation: We “commit ourselves to national development, with new inspirations, new consciousness, new resolutions, as the country opens up immense possibilities and opportunities.” It is our ‘Kartavya Kaal.’