Union Budget 2024

Our team of senior tax and policy professionals decodes and analyzes various aspects of Budget 2024.

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EY Leaders on Budget 2024

The government efforts reflect a comprehensive strategy to transform agriculture, focusing on climate-resilient practices, boosting productivity, enhancing efficiency. The initiatives aim to equip farmers with the tools needed for sustainable growth in changing climates. The budget also sets its intention on enhancing productivity and marketing in the sector, evident in initiatives focusing on development of clusters across major FPO and consumer centres, push for shrimp breeding and exports.

Amit Vatsyayan

Amit Vatsyayan
Leader GPS-Agriculture, Livelihood, Social and Skills, EY India

The budget's focus on energy security and climate resilience is commendable. The PM Surya Ghar Muft Bijli Yojana, which aims to install rooftop solar panels on 1 crore homes and provide up to 300 units of free electricity per month, stands out as a significant initiative. 

Saunak Saha

Saunak Saha
Partner, Climate Change and Sustainability Services, EY India – Climate change

Three macro themes are playing out in Consumer and Retail sector:

  1. Increased consumption push through agriculture reforms, Employment generation push, Urbanisation, controlled inflation and Growth Push
  2. Abolition of Angel Tax for Startups could benefit digitally first brands, etc.
  3. Push domestic sourcing through promoting domestic manufacturing through industrial parks, custom duty changes etc.
Alexy Thomas

Paresh Parekh
EY India Partner and Tax Leader - Consumer Product and Retail Sector

The Government of India (GoI) has accelerated the process of fiscal consolidation by targeting a reduced fiscal deficit to GDP ratio of 4.9% in 2024-25 as compared to 5.1% provided in the interim budget. Relative to 2023-24, when it was 5.6%, this implies a correction of 0.7% points. An important implication is that GoI’s gross and net market borrowings would be reduced in terms of magnitude which would now amount to INR14.01 lakh crore and INR11.63 lakh crore respectively in 2024-25. This turnaround would facilitate a reduction in policy interest rates and encourage private investment. The emphasis on fiscal consolidation implies reaching the FRBM target of 3% of GDP by 2027-28 with an annual correction of 0.7% points in the next two years followed by 0.5% points in 2027-28. In the medium-term therefore, the private sector would be progressively facilitated to increase its investment demand.

D. K. Srivastava

Dr DK Srivastava
Chief Policy Advisor, EY India

The budget announcement on making data and statistics available, will help facilitate access to data, which would also come in handy for AI development. Operationalisation of Rs 100,000 Crore innovation fund would help entrepreneurs and businesses with R&D related investments that may also lead to AI. The Digital Public Infrastructure is proposed for covering sectors like credit, education, healthcare, law and order, etc.

Rajnish Gupta

Rajnish Gupta
Partner, Tax and Economic Policy Group, EY India

The Union Budget presents a transformative vision for India's energy sector, emphasizing a robust push towards new energy. While the Finance Minister highlighted the impressive response garnered by rooftop solar plants policy announced as part of interim budget, commitment to research and development of small and modular nuclear reactors underscores the government's foresight in diversifying the energy portfolio and reducing carbon emissions. Effective implementation could position India as a leader in next-generation nuclear technologies, fostering private sector collaborations and boosting high-tech manufacturing.

Raju Kumar

Raju Kumar
Partner and Energy Tax Leader, EY India

The first budget of the new government has been announced with a focus on employment generation, MSME sector and the Indian middle class.  Some of the changes from a direct tax perspective like the removal of angel tax, peak rate of taxation for foreign bank etc. are welcome from a financial services perspective.

Keyur Shah

Keyur Shah
Partner and Leader — Financial Services Tax, EY India

The budget has set a new course for GIFT City IFSC, aligning the tax treatment of Retail Schemes and Exchange Traded Fund (ETFs with Category III IFSC Alternate Investment Funds in India (AIFs), thus will attract global fund managers and boosting the fund management ecosystem. Additionally, IFSC Finance companies now enjoy an exemption from thin capitalisation rules, encouraging the establishment of Finance Companies and treasury units.

 Jaiman Patel
Tax Partner – Financial Services, EY India

The Union Budget 2024 lays a robust foundation for achieving Viksit Bharat 2047, prioritizing urban development. It emphasizes city-led growth and PM Awas Yojana-Urban 2.0, with a significant focus on affordable housing, allocating Rs 2.2 lakh crore for affordable housing and Rs 10 lakh crore for urban housing. 

Adil Zaidi
EY Partner & Leader - Economic Development Advisory – Infrastructure 

India aims to boost domestic manufacturing by changing import duties in sectors like medical devices, energy, and defense. To create more jobs and support MSMEs manufacturers, the government plans to offer employment incentives and expand credit guarantees.

Alexy Thomas

Saurabh Agarwal
EY India Tax Partner

The budget has maintained a neutral stance towards the Pharmaceutical and Healthcare sector. Noteworthy advancements include a commitment to enhance R&D, with an emphasis on basic research and the development of prototypes - re-emphasis of commitment made in interim budget.

Alexy Thomas

Hitesh Sharma
Partner and Life Sciences Leader – Tax, EY India 

The Finance Minister has in the budget proposals focussed on bolstering macroeconomics and catering to the needs of ‘Garib’ (Poor), ‘Mahilayen’ (Women), ‘Yuva’ (Youth) and ‘Annadata’ (Farmer). Budget presented today proposes simplification of taxes through immediate measures such as overhaul of capital gains tax regime and making new tax regime more attractive as also on long-term tax reforms which involve comprehensive review of the existing Income-tax law, de-criminalization of penalty provisions and reducing tax disputes.

Sonu Iyer

Sonu Iyer
Tax Partner and People Advisory Services Leader, EY India

Embracing the Digital India mission's expansive reach and leveraging Digital Public Infrastructure for agricultural reforms, the Government is setting a new benchmark for technological integration in governance. The Union Budget 2024's pledge to digitalize the residual services of Customs and Income Tax epitomizes the 'Viksit Bharat' ethos, paving the way for a frictionless, paperless tax administration in the transformative epoch of 'Amrit Kaal'.

Rahul Patni

Rahul Patni
Digital Tax Leader, EY India

Budget webcasts

Event name Schedule Lead Partner(s) Register Venue/ Virtual
India Budget Analysis - Japan Desk 26 July, 10:00 a.m. Tetsuo Yamaguchi/ Miki S Watanabe Join here Virtual
CII New Delhi – EY event 26 July, 2:30 p.m. Ganesh Raj and Uday Pimprikar Contact Venue: TBD
EY and Projects Today webcast: Infrastructure sector 26 July, 11:00 a.m. Neetu Vinayek and Uma Iyer Click here to register Virtual
Impact on Oil and Gas sector 26 July, 2.30 p.m. Neetu Vinayek and Uma Iyer Click here to register EY Ruby office, Mumbai
CII Baroda – EY event 26 July, 3:00 p.m. Prashant Maheshwari Contact Physical session
Webcast with Organisation of Pharmaceutical Producers of India (OPPI)  26 July, 3:00 p.m. Hitesh Sharma and Ashish Jain Contact Virtual
Webcast with EY US Desk 31 July, 1:00 p.m. EST Sameer Gupta, Pranav Sayta and Uday Pimprikar Contact Virtual

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