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Business News/ Money / Personal Finance/  4 market experts identify themes most likely to gain from the Interim Budget’s disclosures
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4 market experts identify themes most likely to gain from the Interim Budget’s disclosures

Specific sectors might experience positive outcomes from the proposals in the recent interim budget. Nonetheless, adopting a well-rounded approach is crucial before determining when, where, and how to allocate funds for optimal returns.

Which themes are most likely to gain from the Interim Budget 2024 proposals? (ANI)Premium
Which themes are most likely to gain from the Interim Budget 2024 proposals? (ANI)

On February 01, 2024, Finance Minister Nirmala Sitharaman presented the Interim Budget for 2024. This budget, known as a vote-on-account, serves as a provisional measure to address crucial government expenses until the establishment of a new government following the Lok Sabha elections. Anticipated to take place in April-May 2024, the new government resulting from these elections will present the comprehensive budget for the fiscal year 2024-2025 in July 2024.

Themes to watch out for

A notable observation regarding the Interim Budget 2024 was the notable absence of alterations in personal income tax. This came as a surprise to many individuals who were anticipating some form of relief. Nevertheless, the government did introduce certain measures aimed at benefiting specific key sectors of the economy, with the potential to enhance GDP growth.

Gaurav Goel, Founder - Director, Fynocrat Technologies shared, “Although the interim budget provides insight into spending across various themes/sectors, we believe it’s crucial to focus on India’s broader growth story, which is still unfolding. India’s trajectory toward becoming a 10 trillion-dollar economy presents numerous themes and sectors that could play a significant role in this ambitious economic journey."

A brief examination of the announcements made during the Budget speech unveils the sectors poised to reap the most benefits in the foreseeable future. The recent unveiling of the Interim Budget for the fiscal year 2024-25 has garnered widespread admiration from industry leaders, who think of it as a visionary roadmap for India’s advancement. Vikas Singhania, CEO, TradeSmart, lauds the government’s strategic vision as transformative, poised to drive the nation toward sustained growth and progress.

Singhania emphasizes, “The Interim Budget encapsulates a transformative vision for India’s progress, anchored on the principles of innovation, empowerment, and sustainability. “It’s a call for all stakeholders to work together in shaping a promising future for generations to come."

Which sectors are most likely to gain?

As the government expresses a strong commitment to enhance and broaden the scope of these sectors, investors who are inclined to engage in the current market momentum fuelled by optimism and growth potential stand to gain significantly by investing in them.

Viral Bhatt, Founder, Money Mantra said, “Based on the key announcements and disclosures in the interim budget, here are some potential themes that might perform well. The budget emphasizes a significant increase in capital expenditure (capex), with an 11.1% hike to 11.11 lakh crore. This suggests continued government focus on infrastructure development, which could benefit sectors like construction, engineering and capital goods, logistics and transportation, digitization, IT & software, etc."

Atul Garg, Founder, FinEzzy added, “The key outcomes of the Indian Budget 2024 focus on capital expenditure, infrastructure, and support for various sectors including youth, women, and farmers. The budget aims for comprehensive development with initiatives like the Pradhan Mantri Mudra Yojana, PM Awas Yojana, and schemes for solarization and food processing enterprises. Significant investments in railways and aviation are planned, alongside the establishment of a corpus for tech innovation. It also addresses tax relief for small taxpayers and improvements in GST compliance. This approach is aimed at driving economic growth, fostering innovation, and ensuring inclusive development by 2047."

“Some of the themes we are optimistic about include technology and innovation, manufacturing, infrastructural development, renewable energy and sustainability, financial inclusion and fintech apart from defense," Goel added.

Singhania highlights six pivotal themes within the budget, each contributing significantly to India's overarching goal of prosperity and inclusivity:

  • Advancements in healthcare: Significant initiatives include incentivizing cervical cancer vaccinations for girls aged 9-14, strengthening schemes like Saksham Anganwadi and Poshan 2.0 to improve nutrition delivery, and expanding health coverage under the Ayushman Bharat scheme to include ASHA and Anganwadi workers.
  • Housing for all: The Pradhan Mantri Awas Yojana (Grameen) is on track to achieve its target of 3 crore houses, with plans to add 2 crore houses in the next five years. A new scheme for middle-class housing aims to stimulate home ownership and construction.
  • Women Empowerment: The ‘Lakhpati Didi’ scheme has empowered millions of women in rural India, fostering self-reliance and economic independence. The government aims to extend this initiative to uplift 3 crore women, emphasising the transformative impact of women's empowerment.
  • MSME empowerment and agriculture support: The budget underscores the importance of MSME training and initiatives to increase farmers' income through value addition and investment in post-harvest activities, aligning with the government's commitment to economic resilience.
  • Railways enhancement: Transformative measures include upgrading standard bogies to safer Vande Bharat coaches and introducing three new railway corridors, aimed at improving connectivity, efficiency, and economic growth.
  • Green energy initiatives: In line with environmental sustainability goals, the government announces funding support for offshore wind energy, plans for coal gasification and liquefaction, and initiatives to promote biogas usage, signalling a commitment to a greener future."

The present government has underscored several reforms, categorizing them distinctly as next-generation initiatives. “The Interim Budget charts a clear path toward inclusive and sustainable growth. By prioritizing critical sectors and fostering inclusive development, the budget sets the stage for a prosperous India," affirms Singhania.

In recent years, both public spending and private involvement have witnessed an increase. With the stock market surging rapidly, investors who choose to diversify their investments across different categories or themes have an opportunity to benefit from the heightened government focus on these sectors.

 

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Published: 07 Feb 2024, 01:46 PM IST
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